Document:

Exhibit 10.1

Exhibit 10.1

[EXECUTION COPY]

NON-QUALIFIED

STOCK OPTION AGREEMENT

UNDER

LORAL SPACE & COMMUNICATIONS INC.

2005 STOCK INCENTIVE PLAN

THIS AGREEMENT, made as of this 27th day of October, 2009, by and between Loral Space &
Communications Inc., a Delaware corporation (the “Company”), and Michael B. Targoff (the
“Optionee”).

WHEREAS, the Optionee is employed by or is providing services to the Company or an Affiliate
in a key capacity, and the Company desires to have Optionee remain in such employment or service
and to afford Optionee the opportunity to acquire, or enlarge, Optionee’s stock ownership of the
Company’s Voting Common Stock, par value $.01 per share (the “Stock”), so that Optionee may
have a direct proprietary interest in the Company’s success; and

WHEREAS, all capitalized terms not otherwise defined herein shall have the same meaning as set
forth in Company’s 2005 Stock Incentive Plan (the “Plan”);

NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereto hereby agree as follows:

1. Grant of Option. Subject to the terms and conditions set forth herein and in the
Plan, the Company hereby grants to the Optionee, during the period commencing on June 16, 2009 (the
“Grant Date”) and ending on June 30, 2014 (the “Option Period”), the right and
option (the right to purchase any one share of Stock hereunder being an “Option”) to
purchase from the Company, at an exercise price of $35.00 per share (the “Option Price”),
an aggregate of 125,000 shares of Stock. The Options are not intended to be “incentive stock
options,” as defined in Section 422 of the Internal Revenue Code of 1986, as amended.

2. Exercise of Options.

(a) Subject to the terms and conditions set forth herein and provided the Optionee’s
employment continues, the Options shall vest and become exercisable in accordance with the
following schedule:

(i) 31,250 Options shall vest and become exercisable on the Grant Date;

(ii) an additional 31,250 Options shall vest and become exercisable on the
first anniversary of the Grant Date (the “Initial Vesting Date”);

 

 

 

(iii) an additional 31,250 Options shall vest and become exercisable on the
second anniversary of the Grant Date (the “Second Vesting Date”); and

(iv) the remaining 31,250 Options shall vest and become exercisable on the
third anniversary of the Grant Date (the “Third Vesting Date” and, together
with the Initial Vesting Date and the Second Vesting Date, each a “Vesting
Date”).

(b) Except as otherwise stated in this Agreement, the Options shall expire after the
expiration of the Option Period. Each period between the Grant Date and the Initial Vesting
Date and between each Vesting Date is hereinafter referred to as a “Vesting Period.”

3. Termination of Employment.

(a) If the Optionee’s employment or service with the Company and all Affiliates is
terminated for Cause, all Options (whether vested or not) shall immediately expire.

(b) If the Optionee resigns from employment or service with the Company and all
Affiliates other than for Good Reason, all unvested Options shall expire and all vested
Options shall remain outstanding and exercisable until the earlier of (i) the date that is
three months following the date of termination or (ii) the end of the Option Period.

(c) If the Optionee’s employment or service with the Company and all Affiliates is
terminated by the Company or an Affiliate other than for Cause or the Optionee resigns for
Good Reason, all unvested Options shall vest and become exercisable immediately, and all
vested Options (including those that vest upon such termination) shall remain outstanding and
exercisable until the earlier of (i) the date that is three months following the date of
termination or (ii) the end of the Option Period.

(d) If the Optionee’s employment or service with the Company and all Affiliates
terminates on account of the Optionee’s death or Disability, a pro-rata portion of the
vesting tranche of the Options next scheduled to vest and become exercisable shall vest and
become exercisable, all remaining unvested Options shall immediately expire and all vested
Options shall remain outstanding and exercisable until the earlier of (i) the date that is
twelve (12) months following the date of termination or (ii) the end of the Option Period.
The number of Options subject to pro rata vesting shall be determined by multiplying the
total number of Options subject to the next vesting tranche by a fraction, the denominator of
which shall be 365 and the numerator of which shall be the number of days during the Vesting
Period in which the Optionee’s death or Disability occurs for which the Optionee is employed
on active status.

 

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4. Method of Exercising Option.

(a) Options which have become exercisable may be exercised by delivery of written notice
of exercise to the Committee accompanied by payment of the Option Price. Payment for shares
of Stock acquired pursuant to Options shall be made in full, upon exercise of the Options in
immediately available funds in United States dollars, by certified or bank cashier’s check
or, in the discretion of the Committee, (i) by surrender to the Company of Mature Shares held
by the Optionee; (ii) by delivering to the Committee a copy of irrevocable instructions to a
stockbroker to deliver promptly to the Company an amount of sale or loan proceeds sufficient
to pay the aggregate Option Price; (iii) through a net exercise of the Options whereby the
Optionee instructs the Company to withhold that number of shares of Stock having a fair
market value equal to the aggregate Option Price of the Options being exercised and deliver
to the Optionee the remainder of the shares subject to exercise or (iv) by any other means
approved by the Committee.

(b) At the time of exercise, (i) the Company shall have the right to withhold from the
number of shares of Stock to be issued upon exercise, the minimum number of shares necessary
or (ii) at the discretion of the Committee, the Optionee shall be obligated to pay to the
Company such amount as the Company deems necessary, in either event, to satisfy its
obligation to withhold Federal, state or local income or other taxes incurred by reason of
the exercise or the transfer of shares thereupon.

5. Issuance of Shares. As promptly as practical after receipt by the Company of a
written notice of exercise and full payment to the Company of the aggregate Option Price and any
required income tax withholding amount, the Company shall issue or transfer to the Optionee the
number of shares of Stock with respect to which Options have been so exercised, or the net number
of shares of Stock in the event of an exercise pursuant to Section 4(a)(iii), or to the extent
applicable in Section 4(a)(iv), or after application of Section 4(b), or both, and shall deliver to
the Optionee (or the Optionee’s estate or beneficiary, if applicable) a certificate or certificates
therefore, registered in the name of the Optionee (or such estate or beneficiary).

6. Non-Transferability. The Options are not transferable by the Optionee otherwise
than by will or the laws of descent and distribution and are exercisable during the Optionee’s
lifetime only by Optionee. No assignment or transfer of the Options, or of the rights represented
thereby, whether voluntary or involuntary, by operation of law or otherwise (except by will or the
laws of descent and distribution), shall vest in the assignee or transferee any interest or right
herein whatsoever, but immediately upon such assignment or transfer the Options shall terminate and
become of no further effect.

7. Rights as Stockholder. Neither the Optionee nor a permitted transferee of the
Options shall have any rights as a stockholder with respect to any share of Stock covered by the
Options until the Optionee or any transferee shall have become the holder of record of such share,
and no adjustment shall be made for dividends or distributions or other rights in respect of such
share for which the record date is prior to the date upon which the Optionee or any transferee
shall become the holder of record thereof.

 

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8. Compliance with Law. Notwithstanding any of the provisions hereof, the Optionee
hereby agrees that Optionee will not exercise the Options, and that the Company will not be
obligated to issue or transfer any shares of Stock to the Optionee hereunder, if the exercise
hereof or the issuance or transfer of such shares shall constitute a violation by the Optionee or
the Company of any provisions of any law or regulation of any governmental authority. Any
determination in this connection by the Committee shall be final, binding and conclusive. The
Company shall in no event be obliged to register any securities pursuant to the Securities Act of
1933 (as now in effect or as hereafter amended) or to take any other affirmative action in order to
cause the exercise of the Options or the issuance or transfer of shares of Stock pursuant thereto
to comply with any law or regulation of any governmental authority.

9. Notice. Every notice or other communication relating to this Agreement shall be in
writing, and shall be mailed to or delivered to the party for whom it is intended at such address
as may from time to time be designated by it in a notice mailed or delivered to the other party as
herein provided, provided that, unless and until some other address be so designated, all notices
or communications by the Optionee to the Company shall be mailed or delivered to the Company at its
principal executive office, and all notices or communications by the Company to the Optionee may be
given to the Optionee personally or may be mailed to Optionee at the Optionee’s last known address,
as reflected in the Company’s records.

10. Binding Effect. Subject to Section 6 hereof, this Agreement shall be binding upon
the heirs, executors, administrators and successors of the parties hereto.

11. Governing Law. This Agreement shall be construed and interpreted in accordance
with the laws of the state of Delaware, without regard to the principles of conflicts of law
thereof.

12. Plan. The terms and provisions of the Plan are incorporated herein by reference.
In the event of a conflict or inconsistency between discretionary terms and provisions of the Plan
and the express provisions of this Agreement, this Agreement shall govern and control. Except as
specifically provided herein, in all other instances of conflicts or inconsistencies or omissions,
the terms and provisions of the Plan shall govern and control.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	LORAL SPACE & COMMUNICATIONS INC.

 	 
	 	By:  	/s/ Avi Katz
 	 
	 	 	Name:  	Avi Katz 	 
	 	 	Title:  	Senior Vice President, General Counsel
and Secretary 	 

Accepted:

	 	 	 
	/s/ Michael B. Targoff
	 	 
	Optionee—Michael B. Targoff
	 	 
	 
	 	 
	 

Address

	 	 
	 
	 	 
	 

Social Security Number

	 	 

 

-5-Exhibit 10.2

Exhibit 10.2

[EXECUTION COPY]

RESTRICTED STOCK UNIT AGREEMENT

UNDER THE

LORAL SPACE & COMMUNICATIONS INC.

2005 STOCK INCENTIVE PLAN

This AGREEMENT (the “Agreement”) is made as of the 27th day of October 2009, by and between
LORAL SPACE & COMMUNICATIONS INC. (the “Company”) and                      (the “Grantee”).

W I T N E S S E T H :

WHEREAS, the Grantee is now employed by the Company or a subsidiary of the Company (a
“Subsidiary”) in a key capacity, and the Company wishes to grant the Grantee a notional interest in
shares of the Company’s voting common stock, par value $0.01 per share (the “Stock”), in the form
of restricted stock units, subject to certain restrictions and on the terms and conditions set
forth herein; and

WHEREAS, through the grant of these restricted stock units, the Company hopes to incentivise
and retain the services of Grantee and encourage stock ownership by Grantee in order to give
Grantee a proprietary interest in the Company’s success and align Grantee’s interest with those of
the stockholders of the Company;

NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereto hereby agree as follows:

1. Grant of Restricted Stock Units. Subject to the restrictions, terms and conditions set
forth herein and in the Company’s 2005 Stock Incentive Plan, as amended from time to time (the
“Plan”), effective as of June 16, 2009 (the “Grant Date”), the Company hereby grants to the Grantee
pursuant to the Plan                      restricted stock units (the “Award”) (the restricted stock units
granted hereunder are hereafter referred to as the “Restricted Stock Units”). Each Restricted
Stock Unit shall represent the right to receive upon settlement (i) one share of Stock or (ii) cash
equal to the fair market value of one share of Stock on the settlement date, subject to the terms
and conditions set forth herein. Capitalized terms not defined herein shall have the meaning
ascribed to them in the Plan.

2. Satisfaction of Vesting Conditions.

(a) General. Except as provided in this Agreement, the Restricted Stock Units are
subject to a substantial risk of forfeiture until vested as set forth in this Section 2 and are not
transferable, other than by will or the laws of descent and distribution. Vesting of all or a
portion of the Restricted Stock Units requires the satisfaction of two vesting conditions: a
time-based vesting condition and a stock-price vesting condition. No vesting will occur unless
both vesting conditions are satisfied.

 

 

 

Because both the time-based vesting condition and the stock-price vesting condition must be
satisfied for all or a portion of the Restricted Stock Units to vest, to the extent that one
vesting condition is satisfied prior to the satisfaction of the other vesting condition, vesting
will be delayed (unless the Restricted Stock Units expire or become forfeited) until the date both
vesting conditions are satisfied. The date that both vesting conditions become satisfied with
respect to any Restricted Stock Unit is hereinafter referred to as the “RSU Vesting Date.”

(i) Time-Based Vesting Condition. The time-based vesting condition will be satisfied
in separate tranches (each, a “Tranche”) in accordance with the schedule set forth in the table
below (rounded down to the nearest whole Restricted Stock Unit and subject to earlier vesting or
forfeiture as provided below), on the specified vesting dates (each, a “Time-Based Vesting Date,”
and the period between each Vesting Date, a “Time-Based Vesting Period”), provided the Grantee has
remained an employee of the Company or a Subsidiary from the date hereof through each Vesting Date.

	 	 	 
	% of Restricted Stock Units	 	Vesting Date
	25%

	 	On Grant Date
	61/4%

	 	September 14, 2009
	61/4%

	 	December 14, 2009
	61/4%

	 	March 8, 2010
	61/4%

	 	June 14, 2010
	61/4%

	 	September 13, 2010
	61/4%

	 	December 13, 2010
	61/4%

	 	March 14, 2011
	61/4%

	 	June 13, 2011
	61/4%

	 	September 12, 2011
	61/4%

	 	December 12, 2011
	61/4%

	 	March 12, 2012
	Remainder of Restricted Stock Units

	 	June 11, 2012

(ii) Stock-Price Vesting Condition. The stock price vesting condition will be
satisfied on the last day of the first 20-consecutive-trading-day-period after the Grant Date
during which the average closing price of the Stock over such period is equal to or greater than
$45, which occurs (1) while the Grantee remains employed with the Company or a Subsidiary (the
“Stock-Price Employment Condition”) and (2) on or prior to June 30, 2016 (the “Stock-Price Vesting
Condition”).

(b) Death or Disability.

(i) Time-Based Vesting Condition. Notwithstanding the general vesting provisions
contained in Section 2(a)(i) above, upon the Grantee’s death or Disability (as defined below) while
employed with the Company or a Subsidiary, the time-based vesting condition will be satisfied with
respect to a portion of the Tranche of Restricted Stock Units for which the time-based vesting
condition is next scheduled to be satisfied on the Time-Based Vesting Date immediately following
such death or Disability

 

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equal to the number of Restricted Stock Units subject to such Tranche multiplied by a
fraction, the denominator of which is the total number of days in the Time-Based Vesting Period
ending on such next Time-Based Vesting Date during which such death or Disability occurs and the
numerator of which is the number of days during such Time-Based Vesting Period that the Grantee is
employed with the Company or a Subsidiary prior to such death or Disability. For purposes of this
Agreement, the term “Disability” shall have the meaning ascribed thereto in the Plan. Except as
provided in this Section 2(b)(i), upon the Grantee’s death or Disability, the portion of the
Restricted Stock Units with respect to which the time-based vesting condition has not yet been
satisfied shall expire and be forfeited.

(ii) Stock-Price Vesting Condition. Notwithstanding the general vesting provisions
contained in Section 2(a)(ii) above, upon the Grantee’s death or Disability while employed with the
Company or a Subsidiary, the Stock-Price Employment Condition will be waived for the one-year
period immediately following such event (or until June 30, 2016, if earlier) and if following such
death or Disability but prior to the earlier of (1) the end of such one-year period or (2) June 30,
2016, the average closing price of the Stock during any 20-consecutive-trading-day-period is equal
to or greater than $45, the Stock-Price Vesting Condition shall be satisfied.

(c) Termination Without Cause.

(i) Time-Based Vesting Condition. Notwithstanding the general vesting provisions
contained in Section 2(a)(i) above, upon the termination of the Grantee’s employment with the
Company and all Subsidiaries by the Company or a Subsidiary without Cause (as that term is defined
in the Plan), the time-based vesting condition shall be satisfied as to the number of Restricted
Stock Units subject to the Tranches for which the time-based vesting would have been satisfied had
the Grantee remained employed with the Company or a Subsidiary through the Time-Based Vesting Date
that is scheduled to occur during the month of June that immediately follows such termination.
Except as provided in this Section 2(c)(i), upon the Grantee’s termination of employment with the
Company and all Subsidiaries by the Company or a Subsidiary without Cause, the portion of the
Restricted Stock Units with respect to which the time-based vesting condition has not yet been
satisfied shall expire and be forfeited.

(ii) Stock-Price Vesting Condition. Notwithstanding the general vesting provisions
contained in Section 2(a)(ii) above, upon the termination of the Grantee’s employment with the
Company and all Subsidiaries by the Company or a Subsidiary without Cause, the Stock-Price
Employment Condition will be waived for the one-year period immediately following such termination
(or until June 30, 2016, if earlier) and if following such termination date but prior to the
earlier of (1) the end of such one-year post-termination period or (2) June 30, 2016, the average
closing price of the Stock during any 20-consecutive-trading-day-period is equal to or greater than
$45, the Stock-Price Vesting Condition shall be satisfied.

(d) Other Terminations. Upon the Grantee’s termination of employment with the Company
and all Subsidiaries for any reason other than on account

 

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of the Grantee’s death or Disability or by the Company or a Subsidiary without Cause, all
outstanding unvested Restricted Stock Units shall immediately expire and be forfeited.

(e) Change in Control.

(i) Time-Based Vesting Condition. Notwithstanding the general vesting provisions
contained in Section 2(a)(i) above, upon the consummation of a Change in Control, the time-based
vesting condition shall immediately be satisfied as to all of the Restricted Stock Units for which
the time-based vesting condition had not previously been satisfied.

(ii) Stock-Price Vesting Condition. In the event of a Change in Control, (1) if the
Company’s stockholders receive a per-share value for their shares of Stock in the Change-in-Control
transaction equal to or greater than $45, the Stock-Price Vesting Condition shall be fully
satisfied, as of the date of the consummation of such Change in Control transaction or (2) if the
Company’s stockholders receive a per-share value for their shares of Stock in the Change-in-Control
transaction equal to or greater than the closing price of the Stock on the Grant Date but less than
$45, the Stock-Price Vesting Condition shall be satisfied, as of the date of the consummation of
such Change in Control transaction, with respect to a portion of the Restricted Stock Units equal
to the total number of Restricted Stock Units multiplied by a fraction, the numerator of which
shall be the per-share value received by the Company’s stockholders for their shares of Stock in
the Change-in-Control transaction and the denominator of which shall be $45, or (3) if the
Company’s stockholders receive a per-share value for their shares of Stock in the Change-in-Control
transaction equal to less than the closing price of the Stock on the Grant Date, the Stock-Price
Vesting Condition shall not be satisfied and to the extent that the Stock-Price Vesting Condition
has not previously been satisfied as of the date of the consummation of such Change in Control
transaction, all unvested Restricted Stock Units shall be forfeited.

3. Settlement of Restricted Stock Units.

Each Restricted Stock Unit shall be settled on its respective RSU Vesting Date. On each RSU
Vesting Date, the Company shall deliver to the Grantee (or the Grantee’s estate in the event of
Grantee’s death) (x) a certificate or certificates representing the number of shares of Stock equal
to the number of vested Restricted Stock Units or (y) a lump sum payment of cash having a value
equal to the fair market value of one share of Stock as of the RSU Vesting Date multiplied by the
number of vested Restricted Stock Units. The determination as to whether the Restricted Stock
Units will be settled in Stock or cash shall be within the sole discretion of the Company.

4. Dividends and Dividend Equivalents. No dividends or dividend equivalents shall accrue or
be paid with respect to any outstanding Restricted Stock Units.

 

4

 

5. Rights of Stockholder. The Grantee will not have any rights as a Stockholder with respect
to any Restricted Stock Units until the Grantee becomes the holder of record of such shares.

6. No Right to Continued Employment. This Agreement does not confer upon the Grantee any
right to continuance of employment with the Company, nor shall it interfere in any way with the
right of the Company to terminate his or her employment at any time.

7. Transferability. The Restricted Stock Units may not, at any time prior to settlement, be
assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee
and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance
shall be void and unenforceable.

8. Tax Withholding. The Grantee agrees as a condition of this Agreement, to pay to the
Company, or make arrangements satisfactory to the Company regarding payment to the Company of, the
aggregate amount of federal, state and local income and payroll taxes that the Company is required
to withhold in connection with the vesting and settlement of the Restricted Stock Units.
Alternatively, the Company may, in its sole discretion, withhold cash and/or shares of Stock having
a value equal to all or a portion of the aggregate amount of federal, state and local income and
payroll taxes that the Company is required to withhold, and, if only a portion of the required
amount is withheld, the Grantee agrees to pay to the Company, or make arrangements satisfactory to
the Company regarding payment to the Company of, the amount of tax withholding not covered by the
withholding of cash and/or shares of Stock.

9. Notice. Every notice or other communication relating to this Agreement shall be in
writing, and shall be mailed to or delivered to the party for whom it is intended at such address
as may from time to time be designated by it in a notice mailed or delivered to the other party as
herein provided; provided that, unless and until some other address be so designated, all notices
or communications by the Grantee to the Company shall be mailed or delivered to the Company at its
New York office and all notices or communications by the Company to the Grantee may be given to the
Grantee personally or may be mailed to the Grantee’s home address as reflected on the books of the
Company.

10. Arbitration. All disputes between the parties arising out of, or in connection with the
validity, interpretation, construction, meaning or execution of the Plan or of this Agreement or
any settlement thereof, shall be finally settled by arbitration to be held in New York City and
conducted in accordance with the Rules of the American Arbitration Association. Judgment upon the
award rendered may be entered in any court having jurisdiction or application may be made to such
court for judicial acceptance of the award and an order of enforcement, as the case may be.

11. Governing Law. The validity, interpretation and performance of this Agreement shall be
controlled by and construed under the laws of Delaware, without giving effect to the principles of
conflicts of law.

12. Signature in Counterparts. This Agreement may be signed in counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

* * *

 

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

	 	 	 	 	 
	 	LORAL SPACE & COMMUNICATIONS INC.

 	 
	 	By:  	/s/ Michael B. Targoff
 	 
	 	 	Name:  	Michael B. Targoff 	 
	 	 	Title:  	Vice Chairman, Chief Executive Officer

and President 	 

	 	 	 	 	 
	 

	 	 

Grantee
	 	 

Mailing Address of Grantee for Delivery of Stock Certificates:

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 	 	 
	Phone Number of Grantee:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Email Address of Grantee:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Social Security No.:                               —                              —  
                       
     
	 	 	 	 

 

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