<PAGE>
                                                                   EXHIBIT 10.17

                                 LOAN AGREEMENT

      THIS AGREEMENT made this 3rd day of July, 2001,

B E T W E E N

                                            PIERRE ST-ARNAUD

                                            Hereinafter called the Executive

                                                          OF THE FIRST PART;

                    - and -

                                            SR TELECOM INC.

                                            Hereinafter called the Corporation

                                                          OF THE SECOND PART;

               WHEREAS, pursuant to a Circular filed with regulatory authorities
as of the 31st day of May, 2001, the Corporation made an offering of Rights to
subscribe for common shares in the capital stock of the Corporation at a
purchase price of $1.60 per share (the "SUBSCRIPTION PRICE");

               AND WHEREAS, the offering expires on the 3rd day of July, 2001;

               AND WHEREAS, the Executive, having acquired subscription rights,
has agreed to exercise such Rights as of the date hereof;

               AND WHEREAS, at a meeting held on the 21st day of June, 2001, the
Directors of the Corporation approved an offer of financial assistance to the
Executive in relation to such exercise, subject to the receipt by the
Corporation of appropriate security;

               NOW THEREFORE the parties agree

                    1.    The Executive will purchase a total of 65,000 shares,
                          but will require financial assistance with respect to
                          the purchase of 43,750 shares only.

                    2.    The Corporation will lend to the Executive the sum of
                          $70,000 at an interest rate of 5% per annum.
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                                                                               2

                    3.    The Executive will repay the principal amount of the
                          loan in full on the 3rd day of July, 2006, and will
                          also pay interest calculated yearly, not in advance,
                          at the rate of 5% per annum as well after as before
                          maturity and both before and after default on such
                          portion of the principal as remains from time to time
                          unpaid on the 3rd day of July in each year; the first
                          payment of interest to be computed from the 3rd day of
                          July, 2001, upon the whole amount of principal
                          secured, to become due and payable on the 3rd day of
                          July, 2002.

                    4.    The Executive will have the privilege of prepaying the
                          whole or any part of the principal sum at any time
                          without notice or bonus provided, however, that such
                          prepayment shall be made in the principal amount of
                          $1,600 or any multiple thereof and provided also that
                          interest, calculated on the amount prepaid and
                          computed to the date of actual prepayment, shall be
                          paid at the time of any prepayment.

                    5.    In evidence of the loan herein provided for, the
                          Executive will execute a promissory note in the form
                          set out in Annex A hereto and, as security for
                          repayment, will enter into a Pledge Agreement as set
                          out in Annex B hereto.


               IT IS EXPRESSLY UNDERSTOOD AND AGREED however that,
notwithstanding anything hereinbefore contained, should the Executive leave the
employment of the Corporation prior to the 3rd day of July 2006, the amount of
principal then outstanding and interest thereon shall, at the option of the
Corporation be paid forthwith upon demand.

               IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the date first above written.

SIGNED, SEALED AND DELIVERED    )
in the presence of              )
                                )              /s/ PIERRE ST. ARNAUD
                                )       ___________________________________
                                )                PIERRE ST. ARNAUD
                                )
                                )
                                )       SR TELECOM INC.
                                )
                                )             /s/ DAVID ADAMS
                                )       Per:  _____________________________
                                )
                                )             _____________________________


<PAGE>

                                    ANNEX "A"

                           P R O M I S S O R Y   N O T E


               On 3 July, 2006, the undersigned PIERRE ST-ARNAUD promises to pay
to the order of SR Telecom Inc., at 8150 Trans-Canada Highway, St. Laurent,
Quebec, the sum of SEVENTY THOUSAND DOLLARS ($70,000), with interest computed
from July 3, 2001 and calculated and payable annually at the rate of five per
cent (5%) per annum. Interest payable both before and after default.
Notwithstanding anything hereinbefore contained, should, prior to the 3rd day of
July 2006, default occur in payment of any amount due hereunder and continue for
a period of thirty days, or, should, prior to such date, the undersigned cease
to be employed by SR Telecom Inc., then, upon the occurrence of any such event,
the amount of principal outstanding and interest thereon shall, at the option of
SR Telecom Inc., be paid forthwith upon demand, provided however that, in the
event of the undersigned ceasing to be employed by SR Telecom Inc., no demand
shall be made prior to the 90th day following the date of cessation.

VALUE RECEIVED

               DATED this 3rd day of July, 2001.

                                         /s/ PIERRE ST. ARNAUD
                                     _________________________________
                                             PIERRE ST. ARNAUD
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                                    ANNEX "B"

                                PLEDGE AGREEMENT

      THIS AGREEMENT made this 3rd day of July, 2001.

B E T W E E N:

                                            PIERRE ST-ARNAUD

                                            Hereinafter called the PLEDGOR

                                                        OF THE FIRST PART;

                             - and -

                                            SR TELECOM INC.

                                            Hereinafter called the PLEDGEE and

                                            sometimes the CORPORATION

                                                            OF THE SECOND PART

                             - and -

                                            KING YONGE DEPOSITARIES INC.

                                            Hereinafter called the ESCROW AGENT

                                                              OF THE THIRD PART

               WHEREAS, with the assistance of the Corporation, the Pledgor has
this day purchased Forty Three Thousand Seven Hundred & Fifty (43,750) common
shares (the FINANCED SHARES) in the capital stock of the Corporation for an
aggregate price of Seventy Thousand ($70,000) (the PURCHASE PRICE) pursuant to
the exercise of Rights to subscribe for common shares acquired by the Pledgor
subsequent to the filing with regulatory authorities of a Circular dated the
31st day of May, 2001,

               AND WHEREAS the aggregate Purchase Price of Seventy Thousand
Dollars was advanced to the Pledgor by the Pledgee under a Loan Agreement of
even date herewith pursuant to which the Pledgor delivered a Promissory Note
executed in the form set out in Annex A thereto,

               AND WHEREAS the Loan Agreement provides that the Note shall be
secured by a pledge of the Financed Shares (such shares so pledged being
hereinafter referred to as the PLEDGED SHARES), on the terms and conditions
hereinafter appearing;

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                                                                               2

               AND WHEREAS the Pledgor has agreed to deliver to the Escrow Agent
certificates representing such Pledged Shares duly endorsed in blank for
transfer;

               NOW THEREFORE this Agreement WITNESSETH that in consideration of
the premises and of the respective covenants and conditions hereinafter
contained and other good and valuable consideration (the receipt and sufficiency
whereof is hereby acknowledged by the parties hereto), the parties hereto
covenant and agree each with the other as follows:

                    1.    The Pledgor and the Pledgee hereby appoint the Escrow
                          Agent, and the Escrow Agent hereby agrees to act as
                          escrow agent in accordance with the terms and
                          conditions of this Agreement.

                    2.    Subject as hereinafter provided, certificates
                          representing the Pledged Shares shall be retained by
                          the Escrow Agent as security for the payment of the
                          principal due and payable under the Note. During the
                          term of this Agreement, and while the Pledged Shares
                          represented by such certificates have not been
                          released to the Pledgor, the Pledged Shares shall not
                          be transferred, hypothecated, or otherwise alienated,
                          by the Pledgor without the prior written consent of
                          the Pledgee.

                    3.    The Pledged Shares shall remain the property of the
                          Pledgor, and the Pledgor shall be entitled to exercise
                          all voting rights in respect of the Pledged Shares
                          unless and until default as hereinafter defined shall
                          occur.

                    4.    When the Note is paid, the Escrow Agent shall
                          forthwith deliver to the Pledgor a certificate
                          representing the Pledged Shares or the residual number
                          held in escrow at the time of full payment, it being
                          understood and agreed that the Pledgor may at any time
                          obtain a release from escrow of shares in lots of one
                          thousand (1,000) or any multiple thereof on payment of
                          the sum of One Thousand Six Hundred Dollars ($1,600)
                          for each one thousand (1,000) share lot for which a
                          release is requested.

                    5.    If default is made by the Pledgor in the payment of
                          principal or interest due and payable under the Note,
                          and such default continues for a period of thirty (30)
                          days after written notice thereof by the Pledgee to
                          the Pledgor, and the Pledgee gives notice of the
                          default of the Pledgor to the Escrow Agent, the Escrow
                          Agent shall forthwith give notice to the Pledgor of
                          such default, and if payment of the amount owing under
                          the Notes is not made within fifteen (15) days of the
                          giving of such notice by the Escrow Agent to the
                          Pledgor, the Escrow Agent is hereby authorized and
                          directed, upon the written request of the Pledgee,
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                                                                               3

                          to sell, and he shall sell the Pledged Shares, or any
                          part thereof, as hereinafter provided. Such sale of
                          the Pledged Shares may be public or private, for cash,
                          or upon credit, or partly for cash and partly for
                          credit, for the best price, and upon such terms and
                          conditions as the Escrow Agent may be able to obtain.
                          The Pledgee may become a purchaser on any such sale.
                          Such sale may be made by the Escrow Agent without any
                          covenant or warranty on his part, and without recourse
                          to him, and any such sale shall vest in the purchaser
                          good and indefeasible title to the Pledged Shares, or
                          any part thereof, free of any right or equity of
                          redemption, which right or equity is hereby expressly
                          waived and released by the Pledgor. After deducting
                          all expenses of sale, and all sums due to the Escrow
                          Agent hereunder, the proceeds of sale of the Pledged
                          Shares shall be applied to the payment of principal
                          and interest due under the Notes, or any of them, and
                          the surplus, if any, shall be paid to the Pledgor.

                          Should the proceeds of sale of the Pledged Shares be
                          less than the aggregate of the Note due and payable
                          immediately prior to the time default occurred, then
                          the Pledgor shall be liable to pay the Pledgee the
                          amount of such deficiency.

                    6.    If the Pledged Shares, or any of them, are changed,
                          classified, subdivided, consolidated or converted into
                          a different number or class of shares or otherwise,
                          the shares or other securities resulting from such
                          change, classification, reclassification, subdivision
                          or conversion, shall be delivered to and held by the
                          Escrow Agent in place of the Pledged Shares, and the
                          provisions hereof shall apply thereto.

                    7.    Until such time as the Escrow Agent is required to
                          deliver the certificates representing the Pledged
                          Shares to the Pledgor, the Pledgor shall be entitled
                          to receive all cash dividends paid in respect of any
                          of the Pledged Shares; provided, however, that any
                          shares or securities which are issued by the
                          Corporation to the Pledgor on account of the Pledged
                          Shares by way of stock dividend or otherwise, shall be
                          deposited by the Pledgor with the Escrow Agent, and
                          shall be deemed to be Pledged Shares, and the
                          provisions hereof shall apply thereto.

                    8.    This Agreement shall be binding upon and shall enure
                          to the benefit of the parties hereto and their
                          respective heirs, legal personal representatives,
                          successors and assigns.
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                                                                               4

               IN WITNESS WHEREOF the parties hereto have duly executed this
Agreement on the day and year first above written.

SIGNED, SEALED AND DELIVERED )
in the presence of           )                   /s/ Pierre St. Arnaud
                             )             __________________________________
                             )                     PIERRE ST. ARNAUD
                             )
                             )             SR TELECOM INC.
                             )
             Per:__________________________

                             )                 ______________________________
                             )
                             )             KING YONGE DEPOSITARIES INC.
                             )
                             }                    /s/ T. F. Byrne
                             )             Per:   ___________________________
                             )
                             )                    ___________________________
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                          P R O M I S S O R Y  N O T E


               On 3 July, 2006, the undersigned PIERRE ST-ARNAUD promises to pay
to the order of SR Telecom Inc., at 8150 Trans-Canada Highway, St. Laurent,
Quebec, the sum of SEVENTY THOUSAND DOLLARS ($70,000), with interest computed
from July 3, 2001 and calculated and payable annually at the rate of five per
cent (5%) per annum. Interest payable both before and after default.
Notwithstanding anything hereinbefore contained, should, prior to the 3rd day of
July 2006, default occur in payment of any amount due hereunder and continue for
a period of thirty days, or, should, prior to such date, the undersigned cease
to be employed by SR Telecom Inc., then, upon the occurrence of any such event,
the amount of principal outstanding and interest thereon shall, at the option of
SR Telecom Inc., be paid forthwith upon demand, provided however that, in the
event of the undersigned ceasing to be employed by SR Telecom Inc., no demand
shall be made prior to the 90th day following the date of cessation.

VALUE RECEIVED

               DATED this 3rd day of July, 2001.

                                                      /s/ Pierre St. Arnaud
                                              _________________________________
                                                        PIERRE ST. ARNAUD