Document:

Exhibit 4.25

 

 

GUARANTEE NOVATION AGREEMENT

 

This
GUARANTEE NOVATION AGREEMENT, dated as of August 3, 2012 (this "Agreement"), is by and among Loral Space &
Communications Inc. ("Loral”), a Delaware corporation, MacDonald, Dettwiler and Associates Ltd., a Canadian corporation
("New Guarantor'"), and Telesat Canada, a Canadian corporation (the "'Customer").

 

WHEREAS,
Loral and the Customer are parties to those certain Guarantees, dated as of February 23, 2007 (Nimiq 5), July 15, 2009 (Telstar
14R), December 31, 2009 (Nimiq 6) and June 8, 2010 (Anik Gl), (the "Guarantees") pursuant to which Loral has guaranteed
certain obligations of Space Systems/Loral, Inc., a Delaware corporation ("SS/L") to Customer;

 

WHEREAS,
Loral and New Guarantor are parties to a purchase agreement, dated as of June 26, 2012, as maybe amended from time to time (the
"Purchase Agreement), by and among Loral, SS/L, New Guarantor and MDA Communications Holdings, Inc., a Delaware limited
liability company and wholly-owned subsidiary of New Guarantor {"Purchaser"), pursuant to which Loral has agreed
to sell all of the issued and outstanding common stock of SS/L to Purchaser (the "Transaction"); and

 

WHEREAS,
following consummation of the Transaction, Loral will no longer own any interest in SS/L and New Guarantor will indirectly own
all of the equity in SS/Loral and thus the parties hereto desire to substitute New Guarantor as the Guarantor under the Guarantees
on the terms and subject to the conditions contained herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

 

1.    Effective
Date. This Agreement shall become effective simultaneously with the consummation of the Transaction pursuant to the Purchase
Agreement (the "Effective Time").

 

2.    Novation.
With effect from and after the Effective Time, Loral shall be substituted for, and replaced by, New Guarantor under the Guarantees
and New Guarantor shall assume all rights and obligations of Loral under, arising out of or in connection with the Guarantees
and be shall bound in all respects in place of Loral under the Guarantees and the Guarantees shall thereafter be construed and
treated in all respects as if New Guarantor had originally been named instead of Loral as a party to the Guarantees. The Customer
hereby acknowledges and agrees that this Agreement shall constitute a novation of Loral's obligations, burdens and liabilities
under, and any rights, title and interest with respect to, the Guarantees.

 

3.    Release
and Discharge. The Customer hereby releases and discharges Loral and each of its affiliates from and after the Effective Time
from all further obligations under the Guarantees and all liabilities, claims and demands howsoever arising under the Guarantees,
whether in contract, tort or otherwise, and accepts the obligations and liability of New Guarantor under the Guarantees in place
of the obligations and liability of Loral thereunder.

 

    	 

    	 

    

 

4.    Notices.
From and after the Effective Time, the following notice information for New Guarantor shall be used for purposes of the Guarantees:

 

MacDonald, Dettwiler and
Associates Ltd.

13800 Commerce Parkway

Richmond, British Columbia V6V 2J3

Attn: Vice President,Commercial Services

Facsimile No.: (604) 231-2759

Email: twp@mdacorporation.com

 

With a concurrent copy to:

Farris, Vaughan, Wills &
Murphy LLP

Suite 2500 - 700 West Georgia
Street

Vancouver, B.C. V7Y 1B3

Attn: Elizabeth J. Harrison,
Q.C.

Facsimile No.: (604) 661-9349

 

5.    Entire
Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter
hereof, and all agreements and undertakings between them with respect to this subject matter are merged into and incorporated herein.
This Agreement is binding upon and shall inure to the benefit of the parties hereto and successors in interest. Nothing in this
Agreement, express or implied, is intended to confer upon any person or entity other than the parties hereto or their respective
successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement.

 

6.    Further
Assurances. Each of the parties to this Agreement hereby covenants and agrees that it shall execute such documents and take such
further action as any other party hereto may reasonably request in order to effectuate the novation set forth herein.

 

7.    Counterparts.
This Agreement may be executed in any number of counterparts and by the parties on separate counterparts but shall not be effective
until each party has executed at least one counterpart. Each counterpart shall constitute an original of this Agreement but all
counterparts shall together constitute one and the same instrument.

 

8.    Miscellaneous.
Except as otherwise modified hereby, the Guarantees shall remain in full force and effect.

 

9.    Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws
of Canada applicable therein.

 

 

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IN WITNESS WHEREOF, the parties have
caused this Agreement to be signed by their respective duly authorized officers as of the date first above written.

 

	 	LORAL SPACE & COMMUNICATIONS, INC.
	 	 
	 	By: 	/s/ Avi Katz	 
	 	  	Name: Avi Katz	 
	 	  	Title: Senior Vice President, General Counsel
    and Secretary	 
	 	 	 	 
	 	MACDONALD, DETTWILER AND ASSOCIATES 
	 	 
	 	By: 	/s/ Terry Piche	 
	 	  	Name: Terry Piche	 
	 	  	Title: Vice President & Chief Financial Officer	 
	 	 	 	 
	 	TELESAT CANADA 
	 	 
	 	By: 	/s/ Christopher DiFrancesco	 
	 	  	Name: Christopher DiFrancesco	 
	 	  	Title: VP, General Counsel & SecretaryCINCINNATI FINANCIAL CORPORATION

P.O. BOX 145496

CINCINNATI, OH 45250-5496

513-870-2696

 

INCENTIVE STOCK OPTION AGREEMENT

 

PART I – AWARD INFORMATION

 

	Participant Name:	 	Plan:
	 	 	 
	Grant Date:	 	Expiration Date:
	 	 	 
	Grant Amount:	 	Vesting Schedule:

 

Grant Type:

 

Exercise Price Per Share:

 

CINCINNATI
FINANCIAL CORPORATION (the "Company") hereby grants to the associate identified above (the "Participant") an
Incentive Stock Option (the "Award") under the Company's 2012 Stock Compensation Plan (the "Plan") with respect
to the number of shares of the Company's Common Stock (the "Shares") specified under Part I-Award Information ("Award
Information") above, all in accordance with and subject to the provisions set forth in Part II-Terms and Conditions.

 

THIS AWARD IS SUBJECT TO FORFEITURE
AS PROVIDED IN THIS INCENTIVE STOCK OPTION AGREEMENT AND THE PLAN.

 

By accepting this Award, the Participant
acknowledges the receipt of a copy of this Incentive Stock Option Agreement (including Part II-Terms and Conditions) and a copy
of the Prospectus and agrees to be bound by all the terms and provisions contained in them and in the Plan.

 

IN WITNESS WHEREOF, this Incentive Stock
Option Agreement has been duly executed as of the Grant Date specified above.

 

	 	CINCINNATI FINANCIAL CORPORATION
	 	 	 
	 	By:	/S/ Steven J. Johnston, FCAS, MAAA, CFA, CERA
	 	 	President and Chief Executive Officer

 

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PART II – TERMS AND CONDITIONS

 

1.          Incentive Stock Option. The Company
hereby grants to the Participant the right and option to purchase the Shares when and as the Award vests (becomes exercisable)
for an exercise price per Share payable by the Participant as specified in Part I-Award Information of this Incentive Stock Option
Agreement. This Award is intended to be qualified under and is subject to Section 422 of the Internal Revenue Code.

 

2.          Exercise of Award. The participant
may exercise this Award, to the extent it has vested, by giving written notice to the Company that specifies the number of whole
Shares to be purchased (which may not be less than 25, or the remaining option shares outstanding if less than 25), accompanied
by payment in full of the applicable exercise price. The payment shall be in cash. The exercise of this Award shall only be effective
if the notice to exercise and payment of the exercise price is actually received by the Company while the Award is exercisable
as specified in this Agreement. Upon receipt of such written notice and payment, Shares in the amount exercised by the Participant
will be issued to the Participant and will be evidenced by a stock certificate or by a book entry account maintained by the Company’s
Shareholder Services department for the common stock. If for any reason (such as termination of employment before the Company receives
notice and payment in full of the exercise price for reasons other than death, disability or normal retirement) the Award exercise
does not become effective, the Company shall refund the amount remitted with the exercise notice in payment for the Shares. This
Award shall expire (cease to be exercisable) as of the close of business on the Expiration Date specified in the Award Information
which may not be later than the tenth anniversary of the Grant Date specified in the Award Information (the “Expiration Time”).

 

3.          Vesting. Subject to Sections 4
and 5 below, the Award shall vest (become exercisable) in installments on the vesting dates set forth in the Award Information
(each, a “Vesting Date”), provided that the Participant remains employed by the Company (or a subsidiary of the Company)
during the entire period ending on and including the relevant Vesting Date (each a “Restriction Period”) commencing
on the Grant Date set forth in the Award Information and ending on the applicable Vesting Date.

 

4.          Participant Death, Disability or Retirement
During Restriction Period. In the event of the termination of the Participant’s employment with the Company (and with
all subsidiaries of the Company) prior to a Vesting Date due to death, or disability, or upon the Participant reaching eligibility
for normal retirement, the Award shall become fully vested on the date of death, disability, or normal retirement. In the case
of vesting due to normal retirement or disability, the Award shall remain exercisable until the earlier of (i) the Expiration Time
or (ii) 90 days after the date of normal retirement or termination of employment due to disability. In the case of the Participant’s
death, the Award shall remain exercisable until the earlier of (x) six months after the date of death or (y) the Expiration Time.

 

5.          Other Termination of Employment During
Restriction Period. If the Participant’s employment with the Company (and with all subsidiaries of the Company) is terminated
for any reason other than death, disability or normal retirement, the remaining options granted in the Award, whether vested or
unvested, shall be forfeited.

 

6.          Shareholder Rights. The Participant
shall not have the right to vote any Shares or to receive any cash dividends payable with respect to any Shares, or otherwise have
any rights as a shareholder with respect to any Shares, unless and until the Shares have actually been issued to the Participant
hereunder upon the exercise of the Award as provided in this Agreement.

 

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7.          Transfer Restrictions. This Award
is not transferable and may not be assigned, hypothecated or otherwise pledged, except by designating a beneficiary, or by will
or the laws of descent and distribution, and shall not be subject to execution, attachment or similar process. Upon any attempt
to effect any such disposition or upon the levy of any such process, the Award shall immediately become null and void and shall
be forfeited.

 

8.          Death of Participant.  If the
Award shall vest upon the death of the Participant, the Award shall be registered in the name of (and shall be exercisable by)
the estate of the Participant, except that, if the Participant has designated a beneficiary, the Shares shall be registered in
the name of the designated beneficiary.

 

9.          Other Terms and Provisions.  The
terms and provisions of the Plan (a copy of which will be furnished to the Participant upon written request) are incorporated herein
by reference. To the extent any provision of this Award is inconsistent or in conflict with any term or provision of the Plan,
the Plan shall govern. For purposes of this Agreement, (a) the term “Disability” means permanent and total disability
as determined under procedures established by the Company from time to time, and (b) the term “Normal Retirement” means
(i) retirement from active employment with at least 35 years of continuous service with the Company or its subsidiaries, or (ii)
otherwise under a retirement plan of or employment contract with the Company or any subsidiary on or after the date specified as
the normal retirement age in the pension plan or employment contract, if any, under which the Participant is at that time accruing
retirement benefits for his or her current service (or, in the absence of a specified normal retirement age in the plan or contract,
the age at which retirement benefits under such plan or contract become payable without reduction for early commencement and without
any requirement of a particular period of prior service). In any case in which either the meaning of “Normal Retirement”
is uncertain under the definition contained in the prior sentence or a termination of employment at or after age 65 would not otherwise
constitute “Normal Retirement,” a termination of the Participant’s employment shall be treated as a ”Normal
Retirement” under such circumstances as the Committee, in its sole discretion, deems equivalent to retirement. In any case
in which the existence of a “Disability” is uncertain under the applicable definition and procedures hereunder, a final
and binding determination shall be made by the Committee in its sole discretion.

 

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