Document:

EX-4.1

 Exhibit 4.1 

SHAREHOLDER RIGHTS PLAN AGREEMENT 

DATED AS OF JANUARY 8, 2008 

BETWEEN 
 MACDONALD, DETTWILER
AND ASSOCIATES LTD. 
 AND 

COMPUTERSHARE INVESTOR SERVICES INC. 

AS RIGHTS AGENT 
 Farris, Vaughan,
Wills & Murphy LLP 
 700 West Georgia Street, 25th Floor 

Vancouver, British Columbia 
 Canada
V7Y 1B3 

 SHAREHOLDER RIGHTS PLAN AGREEMENT 

TABLE OF CONTENTS 
  

							
	 ARTICLE 1 - INTERPRETATION
	  	 	1	 
	 1.1
	 	 Certain Definitions
	  	 	1	 
	 1.2
	 	 Currency
	  	 	12	 
	 1.3
	 	 Headings and Interpretation
	  	 	12	 
	 1.4
	 	 Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting
Shares
	  	 	12	 
	 1.5
	 	 Acting Jointly or in Concert
	  	 	13	 
	 1.6
	 	 Generally Accepted Accounting Principles
	  	 	13	 
		
	 ARTICLE 2 - THE RIGHTS
	  	 	13	 
	 2.1
	 	 Issue of Rights: Legend on Common Share Certificates
	  	 	13	 
	 2.2
	 	 Initial Exercise Price; Exercise of Rights; Detachment of Rights
	  	 	14	 
	 2.3
	 	 Adjustments to Exercise Price; Number of Rights
	  	 	16	 
	 2.4
	 	 Date on Which Exercise Is Effective
	  	 	20	 
	 2.5
	 	 Execution, Authentication, Delivery and Dating of Rights Certificates
	  	 	20	 
	 2.6
	 	 Registration, Transfer and Exchange
	  	 	21	 
	 2.7
	 	 Mutilated, Destroyed, Lost and Stolen Rights Certificates
	  	 	21	 
	 2.8
	 	 Persons Deemed Owners of Rights
	  	 	22	 
	 2.9
	 	 Delivery and Cancellation of Certificates
	  	 	22	 
	 2.10
	 	 Agreement of Rights Holders
	  	 	22	 
	 2.11
	 	 Holder of Rights Not Deemed a Shareholder
	  	 	23	 
		
	 ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF A FLIP-IN EVENT
	  	 	23	 
	 3.1
	 	 Flip-in Event
	  	 	23	 
		
	 ARTICLE 4 - THE RIGHTS AGENT
	  	 	24	 
	 4.1
	 	 General
	  	 	24	 
	 4.2
	 	 Merger, Amalgamation or Consolidation or Change of Name of Rights Agent
	  	 	25	 
	 4.3
	 	 Duties of Rights Agent
	  	 	26	 
	 4.4
	 	 Change of Rights Agent
	  	 	27	 
		
	 ARTICLE 5 - MISCELLANEOUS
	  	 	28	 
	 5.1
	 	 Redemption and Waiver
	  	 	28	 
	 5.2
	 	 Expiration
	  	 	29	 
	 5.3
	 	 Issuance of New Rights Certificates
	  	 	29	 
	 5.4
	 	 Supplements and Amendments
	  	 	29	 
	 5.5
	 	 Fractional Rights and Fractional Shares
	  	 	31	 
	 5.6
	 	 Rights of Action
	  	 	31	 
	 5.7
	 	 Regulatory Approvals
	  	 	31	 
	 5.8
	 	 Non-Canadian Holders
	  	 	31	 
	 5.9
	 	 Notices
	  	 	32	 
	 5.10
	 	 Costs of Enforcement
	  	 	33	 
	 5.11
	 	 Successors
	  	 	33	 
	 5.12
	 	 Benefits of this Agreement
	  	 	33	 
	 5.13
	 	 Governing Law
	  	 	33	 
	 5.14
	 	 Severability
	  	 	33	 
	 5.15
	 	 Effective Date and Confirmation
	  	 	33	 
	 5.16
	 	 Reconfirmation
	  	 	33	 
	 5.17
	 	 Determinations and Actions by the Board of Directors
	  	 	34	 
	 5.18
	 	 Time of the Essence
	  	 	34	 
	 5.19
	 	 Execution in Counterparts
	  	 	34	 

  
 i 

 SHAREHOLDER RIGHTS PLAN AGREEMENT 

SHAREHOLDER RIGHTS PLAN AGREEMENT dated as of January 8, 2008 between MacDonald, Dettwiler and Associates Ltd., a corporation
incorporated under the Canada Business Corporations Act (the “Company”) and Computershare Investor Services Inc., a company existing under the laws of Canada (the “Rights Agent”). 

WHEREAS: 
  

	A.	The Board of Directors of the Company has determined that it is in the best interests of the Company to adopt a shareholder rights plan to ensure, to the extent possible, that all shareholders of the Company are treated
fairly in connection with any take-over bid for the Company; 

  

	B.	In order to implement the adoption of the shareholder rights plan, the Board of Directors has authorized and declared a distribution of one Right effective the close of business on January 8, 2008 in respect of
each Common Share outstanding at the Record Time and has further authorized the issuance of one Right in respect of each Common Share issued after the Record Time and prior to the earlier of the Separation Time and the Expiration Time;

  

	C.	Each Right entitles the holder thereof, after the Separation Time, to purchase securities of the Company pursuant to the terms and subject to the conditions set forth herein; 

 

	D.	The Company desires to appoint the Rights Agent to act on behalf of the Company and the holders of Rights, and the Rights Agent is willing to so act, in connection with the issuance, transfer, exchange and replacement
of Rights Certificates (as hereinafter defined), the exercise of Rights and other matters referred to herein; 

 NOW
THEREFORE, in consideration of the premises and the respective covenants and agreements set forth herein, and subject to such covenants and agreements, the parties hereby agree as follows: 

ARTICLE 1 - INTERPRETATION 
  

	1.1	Certain Definitions 

 For purposes of this Agreement, the following terms have the
meanings indicated: 
  

	 	(a)	“Acquiring Person” means any Person who is the Beneficial Owner of 20% or more of the outstanding Voting Shares; provided, however, that the term “Acquiring Person” shall not include:

  

	 	(i)	the Company or any Subsidiary of the Company; 

  

	 	(ii)	any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result of one or any combination of: 

 

	 	(A)	a Voting Share Reduction; 

  

	 	(B)	a Permitted Bid Acquisition; 

  

	 	(C)	an Exempt Acquisition; 

  

	 	(D)	a Pro Rata Acquisition; or 

  

	 	(E)	a Convertible Security Acquisition; 

 provided, however, that if a Person becomes the Beneficial Owner of 20% or more of the
outstanding Voting Shares by reason of one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition and such Person’s Beneficial Ownership
of Voting Shares thereafter increases by more than 1% of the number of Voting Shares outstanding (other than pursuant to one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition
or a Convertible Security Acquisition), then as of the date such Person becomes the Beneficial Owner of such additional Voting Shares, such Person shall become an “Acquiring Person”; 

 

	 	(iii)	for a period of ten days after the Disqualification Date (as defined below), any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result of such Person becoming disqualified
from relying on Subsection 1.1(f)(v) solely because such Person or the Beneficial Owner of such Voting Shares is making or has announced an intention to make a Take-over Bid, either alone or by acting jointly or in concert with any other Person;
(For the purposes of this definition, “Disqualification Date” means the first date of public announcement that such Person is making or has announced an intention to make a Take-over Bid alone or jointly or in concert with any other
Person); 

  

	 	(iv)	an underwriter or member of a banking or selling group that becomes the Beneficial Owner of 20% or more of the Voting Shares in connection with a distribution of securities of the Company pursuant to a prospectus or by
way of a private placement; or 

  

	 	(v)	a Person (a “Grandfathered Person”) who is the Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company determined as at the Record Time, provided, however, that this exception
shall not be, and shall cease to be, applicable to a Grandfathered Person in the event that such Grandfathered Person shall, after the Record Time, become the Beneficial Owner of additional Voting Shares of the Company that increases its Beneficial
Ownership of Voting Shares by more than 1 % of the number of Voting Shares outstanding as at the Record Time (other than pursuant to one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition or a Pro
Rata Acquisition); 

  

	 	(b)	“Affiliate”, when used to indicate a relationship with a Person means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control
with, such specified Person; 

  

	 	(c)	“Agreement” means this shareholder rights plan agreement between the Company and the Rights Agent, as the same may be amended or supplemented or restated from time to time; “hereof”,
“herein”, “hereto” and similar expressions mean and refer to this Agreement as a whole and not to any particular part of this Agreement; 

  

	 	(d)	“annual cash dividend” means cash dividends paid in any fiscal year of the Company to the extent that such cash dividends do not exceed, in the aggregate, the greatest of: 

 

	 	(i)	200% of the aggregate amount of cash dividends declared payable by the Company on its Common Shares in its immediately preceding fiscal year; 

 

	 	(ii)	300% of the arithmetic mean of the aggregate amounts of the annual cash dividends declared payable by the Company on its Common Shares in its three immediately preceding fiscal years; and 

 

	 	(iii)	100% of the aggregate consolidated net income of the Company, before extraordinary items, for its immediately preceding fiscal year; 

  
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	 	(e)	“Associate”, when used to indicate a relationship with a specified Person, means (i) a spouse of such specified Person, (ii) any Person of either the same or the opposite gender with whom that
specified Person is living in a conjugal relationship outside marriage, (iii) a child of that Person, or (iv) a relative of such specified Person or of a Person mentioned in clauses (i) or (ii) of this definition if that relative has
the same residence as the specified Person; 

  

	 	(f)	A Person shall be deemed the “Beneficial Owner” of, and to have “Beneficial Ownership” of, and to “Beneficially Own”, 

 

	 	(i)	any securities as to which such Person or any of such Person’s Affiliates or Associates is the owner at law or in equity; 

  

	 	(ii)	any securities as to which such Person or any of such Person’s Affiliates or Associates has the right to become the owner at law or in equity (where such right is exercisable immediately or within a period of 60
days thereafter and whether or not on condition or the happening of any contingency or the making of any payment or payment of instalments), upon the conversion, exchange or exercise of any right attaching to Convertible Securities or pursuant to
any agreement, arrangement, pledge or understanding, whether or not in writing (other than (x) customary agreements with and between underwriters and banking group members and/or selling group members (or any of the foregoing) with respect to a
public offering or private placement of securities and (y) pledges of securities in the ordinary course of business) or upon the exercise of any conversion right, exchange right, share purchase right (other than the Rights), warrant or option;
or 

  

	 	(iii)	any securities which are Beneficially Owned within the meaning of Subsections (i) or (ii) of this definition by any other Person with whom such Person or such Person’s Affiliates is acting jointly or in
concert; 

 provided, however, that a Person shall not be deemed to be the “Beneficial Owner” of, or to have
“Beneficial Ownership” of, or to “Beneficially Own”, any security: 
  

	 	(iv)	where such security has been or has been agreed to be deposited or tendered pursuant to a Permitted Lock-up Agreement or is otherwise deposited or tendered to any Take-over Bid
made by such Person, made by any of such Person’s Affiliates or Associates or made by any other Person acting jointly or in concert with such Person until such deposited or tendered security has been taken up or paid for, whichever shall first
occur; 

  

	 	(v)	where such Person, any of such Person’s Affiliates or Associates or any other Person acting jointly or in concert with such Person holds such security provided that: 

 

	 	(A)	the ordinary business of any such Person (the “Investment Manager”) includes the management of investment funds for others (which others, for greater certainty, may include or be limited to one or more
employee benefit plans or pension plans) or mutual funds and such security is held by the Investment Manager in the ordinary course of such business in the performance of such Investment Manager’s duties for the account of any other Person (a
“Client”) including a non-discretionary account held on behalf of a Client by a broker or dealer appropriately registered under applicable law; 

 

	 	(B)	such Person (the “Trust Company”) is licensed to carry on the business of a trust company under applicable laws and, as such, acts as trustee or administrator or in a similar capacity in relation to the
estates of deceased or incompetent Persons (each an “Estate Account”) or in relation to other accounts (each an “Other Account”) and holds such security in the ordinary course of such duties for such Estate Account
or for such Other Accounts; 

  
 - 3 - 

	 	(C)	such Person is established by statute for purposes that include, and the ordinary business or activity of such Person (the “Statutory Body”) includes, the management of investment funds for employee
benefit plans, pension plans, insurance plans or various public bodies and the Statutory Body holds such securities for the purpose of its activities as such; 

  

	 	(D)	such Person (the “Administrator”) is the administrator or trustee of one or more pension funds or plans (a “Plan”), or is a Plan, registered under the laws of Canada or any Province
thereof or the laws of the United States of America or any State thereof; or 

  

	 	(E)	such Person (the “Crown Agent”) is a Crown agent or agency; 

 provided, in any
of the above cases, that the Investment Manager, the Trust Company, the Statutory Body, the Administrator, the Plan or the Crown Agent, as the case may be, is not then making a Take-over Bid or has not then announced an intention to make a Take-over
Bid alone or acting jointly or in concert with any other Person, other than an Offer to Acquire Voting Shares or other securities (x) pursuant to a distribution by the Company, (y) by means of a Permitted Bid, or (z) by means of
ordinary market transactions (including prearranged trades entered into in the ordinary course of business of such Person) executed through the facilities of a stock exchange or organized over-the-counter market; 
  

	 	(vi)	where such Person is (A) a Client of the same Investment Manager as another Person on whose account the Investment Manager holds such security, (B) an Estate Account or an Other Account of the same Trust
Company as another Person on whose account the Trust Company holds such security or (C) a Plan with the same Administrator as another Plan on whose account the Administrator holds such security; 

 

	 	(vii)	where such Person is (A) a Client of an Investment Manager and such security is owned at law or in equity by the Investment Manager, (B) an Estate Account or an Other Account of a Trust Company and such
security is owned at law or in equity by the Trust Company or (C) a Plan and such security is owned at law or in equity by the Administrator of the Plan; or 

  

	 	(viii)	where such Person is a registered holder of such security solely as a result of carrying on the business of, or acting as a nominee of, a securities depositary; 

 

	 	(g)	“Board of Directors” means the board of directors of the Company or any duly constituted and empowered committee thereof, 

 

	 	(h)	“Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions in Vancouver, British Columbia are authorized or obligated by law to close; 

 

	 	(i)	“Canada Business Corporations Act” means the Canada Business Corporations Act, R.S.C. 1985, c. C-44, as amended, and the regulations made thereunder and
any comparable or successor laws or regulations thereto; 

  

	 	(j)	“Canadian-U.S. Exchange Rate” means, on any date, the inverse of the U.S. - Canadian Exchange Rate in effect on such date; 

  
 - 4 - 

	 	(k)	“Canadian Dollar Equivalent” of any amount which is expressed in U.S. dollars means, on any date, the Canadian dollar equivalent of the amount determined by multiplying the amount by the U.S.-Canadian Exchange Rate in effect on such date; 

  

	 	(l)	“close of business” on any given date means the time on such date (or, if such date is not a Business Day, the time on the next succeeding Business Day) at which the principal transfer office in
Vancouver, British Columbia of the transfer agent for the Common Shares (or, after the Separation Time, the principal transfer office in Vancouver, British Columbia of the Rights Agent) is closed to the public; 

 

	 	(m)	“Common Shares” means the common shares in the capital of the Company; 

  

	 	(n)	“Competing Permitted Bid” means a Take-over Bid that: 

  

	 	(i)	is made after a Permitted Bid or another Competing Permitted Bid has been made and prior to the expiry of such Permitted Bid or Competing Permitted Bid; 

 

	 	(ii)	satisfies all provisions of the definition of a Permitted Bid other than the requirement set out in Subsection (ii)(A) of the definition of Permitted Bid; and 

 

	 	(iii)	contains, and the take-up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified condition that no Voting Shares will be taken up or paid
for pursuant to the Take-over Bid prior to the close of business on a date that is no earlier than the later of: (A) the earliest date on which Voting Shares may be taken up and paid for under any Permitted Bid or other Competing Permitted Bid
outstanding on the date of commencement of such Competing Permitted Bid; and (B) 35 days after the date of the Take-over Bid constituting such Competing Permitted Bid; 

provided always, for greater certainty, that a Competing Permitted Bid will cease to be a Competing Permitted Bid at any time when such bid
ceases to meet any of the provisions of this definition and provided that, at such time, any acquisition of Voting Shares made pursuant to such Competing Permitted Bid, including any acquisitions of Voting Shares theretofore made, will cease to be a
Permitted Bid Acquisition; 
  

	 	(o)	“controlled”: a Person is “controlled” by another Person or two or more other Persons acting jointly or in concert if: 

 

	 	(i)	in the case of a body corporate, securities entitled to vote in the election of directors of such body corporate carrying more than 50% of the votes for the election of directors are held, directly or indirectly, by or
for the benefit of the other Person or Persons and the votes carried by such securities are entitled, if exercised, to elect a majority of the board of directors of such body corporate; or 

 

	 	(ii)	in the case of a Person which is not a body corporate, more than 50% of the voting or equity interests of such entity are held, directly or indirectly, by or for the benefit of the other Person or Persons;

 and “controls”, “controlling” and “under common control with” shall be interpreted
accordingly; 
  

	 	(p)	“Convertible Securities” shall mean, at any time: 

  

	 	(i)	any right (contractual or otherwise, regardless of whether it would be considered a security); or 

  
 - 5 - 

	 	(ii)	any securities issued by the Company (including rights, warrants and options but not including the Rights) carrying any purchase, exercise, conversion or exchange right, 

pursuant to which the holder thereof may acquire Voting Shares or other securities convertible into or exercisable or exchangeable for Voting
Shares (in each case, whether such right is exercisable immediately or after a specified period and whether or not on condition or the happening of any contingency); 
  

	 	(q)	“Convertible Security Acquisition” means the acquisition of Voting Shares from the Company upon the exercise or pursuant to the terms and conditions of any Convertible Securities acquired by a Person
pursuant to a Permitted Bid Acquisition, an Exempt Acquisition or a Pro Rata Acquisition; 

  

	 	(r)	“Co-Rights Agents” has the meaning ascribed thereto in Subsection 4.1(a); 

  

	 	(s)	“Disposition Date” has the meaning ascribed thereto in Subsection 5.1(h); 

  

	 	(t)	“Dividend Reinvestment Acquisition” means an acquisition of Voting Shares pursuant to a Dividend Reinvestment Plan; 

 

	 	(u)	“Dividend Reinvestment Plan” means a regular dividend reinvestment or other plan of the Company made available by the Company to holders of its securities or to holders of securities of a Subsidiary
where such plan permits the holder to direct that some or all of: 

  

	 	(i)	dividends paid in respect of shares of any class of the Company or a Subsidiary; 

  

	 	(ii)	proceeds of redemption of shares of the Company or a Subsidiary; 

  

	 	(iii)	interest paid on evidences of indebtedness of the Company or a Subsidiary; or 

  

	 	(iv)	optional cash payments; 

 be applied to the purchase from the Company of Voting Shares; 

 

	 	(v)	“Effective Date” means the date of this Agreement; 

  

	 	(w)	“Election to Exercise” has the meaning ascribed thereto in Subsection 2.2(d)(ii); 

  

	 	(x)	“Exempt Acquisition” means an acquisition of Voting Shares or Convertible Securities (i) in respect of which the Board of Directors has waived the application of Section 3.1 pursuant to the
provisions of Subsection 5.1 (a) or (h); or (ii) pursuant to an amalgamation, merger or other statutory procedure, or private placement or other issuance of Voting Shares or Convertible Securities requiring approval of the shareholders of the
Company; provided that such acquisition by a Person does not amount to a greater percentage of ownership in Voting Shares, or Convertible Securities than the Person’s percentage of Voting Shares Beneficially Owned immediately prior to such
acquisition; 

  

	 	(y)	“Exercise Price” means, as of any date, the price at which a holder may purchase the securities issuable upon exercise of one whole Right which, until adjustment thereof in accordance with the terms
hereof, shall be an amount equal to three times the Market Price per Common Share determined as at the Separation Time; 

  

	 	(z)	“Expansion Factor” has the meaning ascribed thereto in Subsection 2.3(a)(x); 

  
 - 6 - 

	 	(aa)	“Expiration Time” means the earlier of (i) the Termination Time, and (ii) the termination of any meeting of holders of Voting Shares at which this Agreement was not confirmed or reconfirmed as
provided for in Sections 5.15 and 5.16; 

  

	 	(bb)	“Flip-in Event” means a transaction in or pursuant to which any Person becomes an Acquiring Person; 

 

	 	(cc)	“holder” has the meaning ascribed thereto in Section 2.8; 

  

	 	(dd)	“Independent Shareholders” means holders of Voting Shares, other than: 

  

	 	(i)	any Acquiring Person; 

  

	 	(ii)	any Offeror (other than any Person who, by virtue of Subsection 1.1(f)(v), is not deemed to Beneficially Own the Voting Shares held by such Person); 

 

	 	(iii)	any Affiliate or Associate of any Acquiring Person or Offeror; 

  

	 	(iv)	any Person acting jointly or in concert with any Acquiring Person or Offeror; and 

  

	 	(v)	any employee benefit plan, deferred profit sharing plan, stock participation plan and any other similar plan or trust for the benefit of employees of the Company or a Subsidiary unless the beneficiaries of the plan or
trust direct the manner in which the Voting Shares are to be voted or withheld from voting or direct whether the Voting Shares are to be tendered to a Take-over Bid; 

 

	 	(ee)	“Market Price” per share of any securities on any date of determination means the average of the daily closing prices per share of such securities (determined as described below) on each of the 20
consecutive Trading Days through and including the Trading Day immediately preceding such date; provided, however, that if an event of a type analogous to any of the events described in Section 2.3 hereof shall have caused the closing prices
used to determine the Market Price on any Trading Days not to be fully comparable with the closing price on such date of determination (or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day), each closing
price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to make it fully comparable with the closing price on such date of determination or if the date of
determination is not a Trading Day, on the immediately preceding Trading Day. The closing price per share of any securities on any date shall be: 

  

	 	(i)	the closing board lot sale price or, in case no such sale takes place on such date, the average of the closing bid and asked prices for each of such securities as reported by the principal Canadian stock exchange on
which such securities listed and admitted to trading; 

  

	 	(ii)	if for any reason none of such prices is available on such day or the securities are not listed or posted for trading on a Canadian stock exchange, the last sale price or, in case no such sale takes place on such date,
the average of the closing bid and asked prices for each of such securities as reported by the principal national United States securities exchange on which such securities are listed or admitted to trading; 

 

	 	(iii)	if for any reason none of such prices is available on such day or the securities are not listed or admitted to trading on a Canadian stock exchange, national United States stock exchange or any other stock exchange, the
last sale price or, in case no sale takes place on such date, the average of the high bid and low asked prices for each of the securities in the over-the-counter market,
as quoted by any recognized reporting system then in use (as determined by the Board of Directors); or 

  
 - 7 - 

	 	(iv)	if for any reason none of such prices is available on such day or the securities are not listed or admitted to trading on a Canadian stock exchange, a national United States securities exchange or any other stock
exchange or quoted by any reporting system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the securities selected in good faith by the Board of Directors; 

provided, however, that if for any reason none of such prices is available on such day, the closing price per share of the securities on such
date means the fair value per share of the securities on such date as determined by an nationally recognized investment dealer or investment banker selected by the Board of Directors. The Market Price shall be expressed in Canadian dollars. Provided
further that if an event of a type analogous to any of the events described in Section 2.3 hereof shall have caused any price used to determine the Market Price on any Trading Day not to be fully comparable with the price as so determined on
the Trading Day immediately preceding such date of determination, each such price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to make it fully comparable
with the price on the Trading Day immediately preceding such date of determination. If any relevant amount used in calculating the Market Price happens to be in United States dollars, such amount shall be translated into Canadian dollars on that
date at the Canadian Dollar Equivalent thereof, 
  

	 	(ff)	“Nominee” has the meaning ascribed thereto in Subsection 2.2(c); 

  

	 	(gg)	“Offer to Acquire” includes: 

  

	 	(i)	an offer to purchase or a solicitation of an offer to sell Voting Shares; and 

  

	 	(ii)	an acceptance of an offer to sell Voting Shares, whether or not such offer to sell has been solicited; 

or any combination thereof, and the Person accepting an offer to sell shall be deemed to be making an Offer to Acquire to the Person that made
the offer to sell; 
  

	 	(hh)	“Offeror” means a Person who has announced, and has not withdrawn, an intention to make or who has made, and has not withdrawn, a Take-over Bid, other than a Person who has completed a Permitted Bid, a
Competing Permitted Bid or an Exempt Acquisition; 

  

	 	(ii)	“Offeror’s Securities” means Voting Shares Beneficially Owned by an Offeror on the date of the Offer to Acquire; 

 

	 	(jj)	“Permitted Bid” means a Take-over Bid made by a Person by way of take-over bid circular which also complies with the following additional provisions: 

 

	 	(i)	the Take-over Bid is made to all holders of Voting Shares as registered on the books of the Company, other than the Person making the Take-over Bid (the “Permitted Bid Offeror”); 

 

	 	(ii)	the Take-over Bid contains, and the take-up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified provision that no Voting Shares will be
taken up or paid for pursuant to the Take-over Bid: 

  

	 	(A)	prior to the close of business on the date which is not less than 60 days following the date the take-over bid circular is sent to holders of Voting Shares; and 

  
 - 8 - 

	 	(B)	unless at such date more than 50% of the then outstanding Voting Shares held by Independent Shareholders shall have been deposited or tendered pursuant to the Take-over Bid and not withdrawn; 

 

	 	(iii)	unless the Take-over Bid is withdrawn, the Take-over Bid contains an irrevocable and unqualified provision that Voting Shares may be deposited pursuant to such Take-over Bid at any time during the period of time
described in Subsection (ii)(A) and that any Voting Shares deposited pursuant to the Take-over Bid may be withdrawn until taken up and paid for; and 

  

	 	(iv)	unless the Take-over Bid is withdrawn, the Take-over Bid contains an irrevocable and unqualified provision that in the event that the deposit condition set forth in Subsection (ii)(B) is satisfied the Permitted Bid
Offeror will make a public announcement of that fact and the Take-over Bid will remain open for deposits and tenders of Voting Shares for not less than ten Business Days from the date of such public announcement; 

provided always that a Permitted Bid will cease to be a Permitted Bid at any time when such bid ceases to meet any of the provisions of this
definition and provided that, at such time, any acquisition of Voting Shares made pursuant to such Permitted Bid, including any acquisitions of Voting Shares theretofore made, will cease to be a Permitted Bid Acquisition; 

 

	 	(kk)	“Permitted Bid Acquisition” means an acquisition of Voting Shares made pursuant to a Permitted Bid or a Competing Permitted Bid; 

 

	 	(ll)	“Permitted Lock-up Agreement” means an agreement between an Offeror, any of its Affiliates or Associates or any other Person acting jointly or in concert with the
Offeror and a Person (the “Locked-up Person”) who is not an Affiliate or Associate of the Offeror or a Person acting jointly or in concert with the Offeror (the terms of which agreement are publicly
disclosed and a copy of which is made available to the public (including the Company) not later than the date the Lock-up Bid (as defined below) is publicly announced or if the
Lock-up Bid has been made prior to the date on which such agreement is entered into, forthwith, and in any event not later than the date following the date of such agreement) whereby the Locked-up Person agrees to deposit or tender the Voting Shares held by the Locked-up Person to the Offeror’s Take-over Bid or to any Take-over Bid made by any of the
Offeror’s Affiliates or Associates or made by any other Person acting jointly or in concert with the Offeror (the “Lock-up Bid”) provided such agreement: 

 

	 	(i)	permits the Locked-up Person to withdraw the Voting Shares from the agreement in order to tender or deposit the Voting Shares to another Take-over Bid or to support another
transaction (whether by way of merger, amalgamation, arrangement, reorganization or other transaction) (the “Superior Offer Consideration”) that in either case will provide a greater cash equivalent value per Voting Share to the
holders of Voting Shares than the Locked-up Person otherwise would have received to pay under the Lock-up Bid (the
“Lock-up Bid Consideration”). Notwithstanding the above, the Lock-Up Agreement may require that the Superior Offer Consideration must exceed the Lock-up Bid Consideration by a specified percentage before such withdrawal right takes effect, provided such specified percentage is not greater than 7%; 

(and, for greater clarity, such agreement may contain a right of first refusal or require a period of delay to give an Offeror an opportunity
to match a higher price in another Take-over Bid or transaction and may provide for any other similar limitation on a Locked-up Person’s right to withdraw Voting Shares from the agreement, as long as the
limitation does not preclude the exercise by the Locked-up Person of the right to withdraw Voting Shares during the period of the other Take-over Bid or other transaction); and 

  
 - 9 - 

	 	(ii)	does not provide for any “break-up” fees, “top-up” fees, penalties, expenses or other amounts that exceed in the
aggregate the greater of: 

  

	 	(A)	the cash equivalent of 2.5% of the price or value payable under the Lock-up Bid to a Locked-Up Person; and 

 

	 	(B)	50% of the amount by which the price or value payable under another Take-over Bid or transaction exceeds the price or value of the consideration that such Locked-up Person would
have received under the Lock-up Bid; 

 being payable or forfeited by a Locked-up Person pursuant to the agreement in the event a Locked-up Person fails to deposit or tender Voting Shares to the Lock-up Bid,
withdraws Voting Shares previously tendered thereto to another Take-over Bid or supports another transaction; 
  

	 	(mm)	“Person” includes any individual, firm, partnership, association, trust, trustee, executor, administrator, legal personal representative, body corporate, joint venture, corporation, unincorporated
organization, syndicate, governmental entity or other entity; 

  

	 	(nn)	“Pro Rata Acquisition” means an acquisition by a Person of Voting Shares or Convertible Securities pursuant to: 

  

	 	(i)	a Dividend Reinvestment Acquisition; 

  

	 	(ii)	a stock dividend, stock split or other event in respect of securities of the Company of one or more particular classes or series pursuant to which such Person becomes the Beneficial Owner of Voting Shares on the same
pro rata basis as all other holders of securities of the particular class, classes or series; 

  

	 	(iii)	the acquisition or the exercise by the Person of only those rights to purchase Voting Shares distributed by the Company to that Person in the course of a distribution to all holders of securities of the Company of one
or more particular classes or series pursuant to a rights offering or pursuant to a prospectus, provided that the Person does not thereby acquire a greater percentage of such Voting Shares, or securities convertible into or exchangeable for Voting
Shares, so offered than the Person’s percentage of Voting Shares Beneficially Owned immediately prior to such acquisition and that such rights are acquired directly from the Company and not from any other Person; or 

 

	 	(iv)	a distribution of Voting Shares, or securities convertible into or exchangeable for Voting Shares (and the conversion or exchange of such convertible or exchangeable securities), by the Company, provided that the Person
does not thereby acquire a greater percentage of such Voting Shares, or securities convertible into or exchangeable for Voting Shares, so offered in the distribution than the Person’s percentage of Voting Shares Beneficially Owned immediately
prior to such acquisition; 

  

	 	(oo)	“Record Time” means close of business on the date of this Agreement; 

  

	 	(pp)	“Redemption Price” has the meaning ascribed thereto under Subsection 5.1 (b) of this Agreement; 

  

	 	(qq)	“Right” means a right to purchase a Common Share upon the terms and subject to the conditions set forth in this Agreement; 

  
 - 10 - 

	 	(rr)	“Rights Certificate” means the certificates representing the Rights after the Separation Time, which shall be substantially in the form attached hereto as Attachment 1 or such other form as the Company
and the Rights Agent may agree; 

  

	 	(ss)	“Rights Holders’ Special Meeting” means a meeting of the holder of Rights called by the Board of Directors for the purpose of approving a supplement or amendment to this Agreement pursuant to
Subsection 5.4(c); 

  

	 	(tt)	“Rights Register” has the meaning ascribed thereto in Subsection 2.6(a); 

  

	 	(uu)	“Rights Registrar” has the meaning ascribed thereto in Subsection 2.6(a); 

  

	 	(vv)	“Securities Act (British Columbia)” means the Securities Act, R.S.B.C. 1996 Chapter 418, as amended, and the regulations and rules thereunder, and any comparable or successor
laws or regulations and rules thereto; 

  

	 	(ww)	“Separation Time” means the close of business on the tenth Trading Day after the earlier of: 

  

	 	(i)	the Stock Acquisition Date; 

  

	 	(ii)	the date of the commencement of or first public announcement of the intent of any Person (other than the Company or any Subsidiary of the Company) to commence a Take-over Bid (other than a Permitted Bid or a Competing
Permitted Bid); and 

  

	 	(iii)	the date on which a Permitted Bid or Competing Permitted Bid ceases to be such; 

 or such later
time as may be determined by the Board of Directors, and provided that, if any Take-over Bid referred to in Subsection (ii) or Permitted Bid or Competing Permitted Bid referred to in Subsection (iii) is not made, expires, is cancelled,
terminated or otherwise withdrawn prior to the Separation Time, such Take-over Bid, Permitted Bid or Competing Permitted Bid, as applicable, shall be deemed, for the purposes of this definition, never to have been made; 

 

	 	(xx)	“Special Meeting” means a special meeting of the holder of Voting Shares, called by the Board of Directors for the purpose of approving a supplement or amendment to this Agreement pursuant to Subsection
5.4(b); 

  

	 	(yy)	“Stock Acquisition Date” means the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a report filed pursuant to section 111 of the Securities
Act (British Columbia)) by the Company or an Acquiring Person indicating that an Acquiring Person has become such; 

  

	 	(zz)	“Subsidiary”: a corporation is a Subsidiary of another corporation if: 

  

	 	(i)	it is controlled by: 

  

	 	(A)	that other; or 

  

	 	(B)	that other and one or more corporations, each of which is controlled by that other; or 

  

	 	(C)	two or more corporations, each of which is controlled by that other; or 

  

	 	(ii)	it is a Subsidiary of a corporation that is that other’s Subsidiary; 

  
 - 11 - 

	 	(aaa)	“Take-over Bid” means an Offer to Acquire Voting Shares, or Convertible Securities if, assuming that the Voting Shares or Convertible Securities subject to the Offer to Acquire are acquired and are
Beneficially Owned at the date of such Offer to Acquire by the Person making such Offer to Acquire, such Voting Shares (including Voting Shares that may be acquired upon the conversion, exchange or exercise of the rights under such Convertible
Securities into Voting Shares) together with the Offeror’s Securities, constitute in the aggregate 20% or more of the outstanding Voting Shares at the date of the Offer to Acquire; 

 

	 	(bbb)	“Termination Time” means the time at which the right to exercise Rights shall terminate pursuant to Subsection 5.1(e); 

 

	 	(ccc)	“Trading Day”, when used with respect to any securities, means a day on which the principal stock exchange in Canada on which such securities are listed or admitted to trading is open for the
transaction of business or, if the securities are not listed or admitted to trading on any Canadian stock exchange, a Business Day; 

  

	 	(ddd)	“U.S.-Canadian Exchange Rate” means, on any date: 

  

	 	(i)	if on such date the Bank of Canada sets an average noon spot rate of exchange for the conversion of one United States dollar into Canadian dollars, such rate; and 

 

	 	(ii)	in any other case, the rate for such date for the conversion of one United States dollar into Canadian dollars calculated in such manner as may be determined by the Board of Directors from time to time acting in good
faith; 

  

	 	(eee)	“Voting Share Reduction” means an acquisition or redemption by the Company of Voting Shares which, by reducing the number of Voting Shares outstanding, increases the proportionate number of Voting
Shares Beneficially Owned by any Person to 20% or more of the Voting Shares then outstanding; and 

  

	 	(fff)	“Voting Shares” means the Common Shares and any other shares in the capital of the Company entitled to vote generally in the election of all directors. 

 

	1.2	Currency 

 All sums of money which are referred to in this Agreement are expressed
in lawful money of the United States of America, unless otherwise specified. 
  

	1.3	Headings and Interpretation 

 The division of this Agreement into Articles,
Sections, Subsections, Clauses, Paragraphs, Subparagraphs or other portions hereof and the insertion of headings, subheadings and a table of contents are for convenience of reference only and shall not affect the construction or interpretation of
this Agreement. In this Agreement, where the context so admits, words importing the singular include the plural and vice versa and words importing gender includes the masculine, feminine and neuter genders. 

 

	1.4	Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares 

For purposes of this Agreement, the percentage of Voting Shares Beneficially Owned by any Person, shall be and be deemed to be the product
(expressed as a percentage) determined by the formula: 
  

							
	 100
	  	x	 	 A
	  	
	  	 	B	  	

  
 - 12 - 

 where: 
  

					
	 A
	  	=	  	the number of votes for the election of all directors generally attaching to the Voting Shares Beneficially Owned by such Person; and
			
	 B
	  	=	  	the number of votes for the election of all directors generally attaching to all outstanding Voting Shares.

 Where any Person is deemed to Beneficially Own unissued Voting Shares, such Voting Shares shall be deemed to be outstanding
for the purpose of calculating the percentage of Voting Shares Beneficially Owned by such Person, but no other unissued Voting Shares shall, for the purposes of such calculation, be deemed to be outstanding. 

 

	1.5	Acting Jointly or in Concert 

 For the purposes of this Agreement, a Person is
acting jointly or in concert with every Person who is a party to any agreement, commitment or understanding (whether formal or informal and whether or not in writing) with the first Person (the “First Person”) or any Associate or
Affiliate thereof or any other Person acting jointly or in concert with the First Person, to acquire or offer to acquire Voting Shares (other than customary agreements (i) with and between underwriters or banking group members or selling group
members with respect to a public offering or private placement of securities or pledges of securities in the ordinary course of business, and (ii) among shareholders of the Company for legitimate corporate governance activities). 

 

	1.6	Generally Accepted Accounting Principles 

 Wherever in this Agreement reference is
made to generally accepted accounting principles, such reference shall be deemed to be the recommendations at the relevant time of the Canadian Institute of Chartered Accountants, or any successor institute, applicable on a consolidated basis
(unless otherwise specifically provided herein to be applicable on an unconsolidated basis) as at the date on which a calculation is made or required to be made in accordance with Canadian generally accepted accounting principles. Where the
character or amount of any asset or liability or item of revenue or expense is required to be determined, or any consolidation or other accounting computation is required to be made for the purpose of this Agreement or any document, such
determination or calculation shall, to the extent applicable and except as otherwise specified herein or as otherwise agreed in writing by the parties, be made in accordance with generally accepted accounting principles applied on a consistent
basis. 
 ARTICLE 2 - THE RIGHTS 
  

	2.1	Issue of Rights: Legend on Common Share Certificates 

  

	 	(a)	One Right shall be issued on the Effective Date in respect of each Common Share outstanding at the Record Time and one Right shall be issued in respect of each Common Share issued after the Record Time and prior to the
earlier of the Separation Time and the Expiration Time. 

  

	 	(b)	Certificates representing Common Shares which are issued prior to the earlier of the Separation Time and the Expiration Time shall evidence one Right for each Common Share represented thereby. Certificates representing
Common Shares that are issued after the Record Time but prior to the earlier of the Separation Time and the Expiration Time shall have impressed on, printed on, written on or otherwise affixed to them a legend substantially in the following form:

 “Until the Separation Time (defined in the Agreement below), this certificate also evidences the holder’s rights
described in a Shareholder Rights Plan Agreement dated as of January 8, 2008 (the “Agreement”) between MacDonald, Dettwiler and Associates Ltd. and Computershare Investor Services Inc., as the same may from time to time be amended,
the terms of which are incorporated herein by reference and a copy of which is on file at the principal office of the Company. Under certain circumstances set out in the Agreement, the Rights may be amended or redeemed, may expire, may become void
(if, in certain circumstances, they are “Beneficially Owned” by an “Acquiring Person”, as 

  
 - 13 - 

 
such terms are defined in the Agreement, or a transferee thereof) or may be evidenced by separate certificates and no longer evidenced by this certificate. The Company will mail or arrange for
the mailing of a copy of the Shareholder Plan Agreement to the holder of this certificate without charge as soon as practicable after the receipt of a written request therefor.” 

Certificates representing Common Shares that are issued and outstanding at the Record Time shall evidence one Right for each Common Share
evidenced thereby, notwithstanding the absence of a legend in accordance with this Subsection 2.1(b), until the earlier of the Separation Time and the Expiration Time. 

Registered holders of Common Shares who have not received a share certificate and are entitled to do so on the earlier of the Separation Time
and Expiration Time shall be entitled to Rights as if such certificates had been issued and such Rights shall for all purposes hereof be evidenced by the corresponding entries on the Company’s securities register for Common Shares. 

 

	2.2	Initial Exercise Price; Exercise of Rights; Detachment of Rights 

  

	 	(a)	Subject to Subsection 3.1 (a) and adjustment as herein set forth, each Right will entitle the holder thereof, from and after the Separation Time and prior to the Expiration Time, to purchase one Common Share for the
Exercise Price (and the Exercise Price and number of Common Shares are subject to adjustment as set forth below). Notwithstanding any other provision of this Agreement, any Rights held by the Company or any of its Subsidiaries shall be void.

  

	 	(b)	Until the Separation Time: 

  

	 	(i)	the Rights shall not be exercisable and no Right may be exercised; and 

  

	 	(ii)	for administration purposes, each Right will be evidenced by the certificate for the associated Common Share registered in the name of the holder thereof (which certificate shall also be deemed to represent a Rights
Certificate) and will be transferable only together with, and will be transferred by a transfer of, such associated Common Share. 

  

	 	(c)	From and after the Separation Time and prior to the Expiration Time: 

  

	 	(i)	the Rights shall be exercisable; and 

  

	 	(ii)	the registration and transfer of Rights shall be separate from and independent of Common Shares. 

Promptly following the Separation Time, the Company will prepare and the Rights Agent will mail to each holder of record of Common Shares as
of the Separation Time (other than an Acquiring Person and, in respect of any Rights Beneficially Owned by such Acquiring Person which are not held of record by such Acquiring Person, the holder of record of such Rights (a
“Nominee”)), at such holder’s address as shown by the records of the Company (the Company hereby agreeing to furnish copies of such records to the Rights Agent for this purpose): (x) a Rights Certificate appropriately
completed, representing the number of Rights held by such holder at the Separation Time and having such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Agreement, or as may be required to comply with any law, rule or regulation or with any rule or regulation of any self-regulatory organization, stock exchange or quotation system on which the Rights may
from time to time be listed or traded, or to conform to standard usage; and (y) a disclosure statement prepared by the Company describing the Rights, provided that a Nominee shall be sent the materials provided for in clauses (x) and (y)
in respect of all Common Shares held of record by it which are not Beneficially Owned by an Acquiring Person. 

  
 - 14 - 

	 	(d)	Rights may be exercised, in whole or in part, on any Business Day after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent: 

 

	 	(i)	the Rights Certificate evidencing such Rights; 

  

	 	(ii)	an election to exercise such Rights (an “Election to Exercise”) substantially in the form attached to the Rights Certificate appropriately completed and duly executed by the holder or his executors or
administrators or other personal representatives or his or their legal attorney duly appointed by an instrument in writing in form and executed in a manner satisfactory to the Rights Agent; and 

 

	 	(iii)	payment by certified cheque, banker’s draft or money order payable to the order of the Company, of a sum equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover
any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Common Shares in a name other than that of the holder of the
Rights being exercised. 

  

	 	(e)	Upon receipt of a Rights Certificate, together with a completed Election to Exercise executed in accordance with Subsection 2.2(d)(ii), which does not indicate that such Right is null and void as provided by Subsection
3.1(b), and payment as set forth in Subsection 2.2(d)(iii), the Rights Agent (unless otherwise instructed by the Company in the event that the Company is of the opinion that the Rights cannot be exercised in accordance with this Agreement) will
thereupon promptly: 

  

	 	(i)	requisition from the Company’s transfer agent certificates representing the number of such Common Shares to be purchased (the Company hereby irrevocably authorizing its transfer agent to comply with all such
requisitions); 

  

	 	(ii)	when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuing fractional Common Shares in accordance with Subsection 5.5(b); 

 

	 	(iii)	after receipt of the certificates referred to in Clause 2.2(e)(i), deliver the same to or upon the order of the registered holder of such Rights Certificates, registered in such name or names as may be designated by
such holder; 

  

	 	(iv)	when appropriate, after receipt, deliver the cash referred to in Subsection 2.2(e)(ii) to or to the order of the registered holder of such Rights Certificate; and 

 

	 	(v)	tender to the Company all payments received on exercise of Rights. 

  

	 	(f)	In case the holder of any Rights shall exercise less than all the Rights evidenced by such holder’s Rights Certificate, a new Rights Certificate evidencing the Rights remaining unexercised (subject to the
provisions of Subsection 5.5(a)) will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns. 

  

	 	(g)	The Company covenants and agrees that it will: 

  

	 	(i)	take all such action as may be necessary and within its power to ensure that all Common Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates for such Common Shares (subject to
payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered as fully paid and non-assessable; 

  
 - 15 - 

	 	(ii)	take all such action as may be necessary and within its power to comply with the requirements of the Canada Business Corporations Act, the Securities Act (British Columbia), the securities laws or comparable legislation
of each of the provinces of Canada and any other applicable law, rule or regulation, in connection with the issuance and delivery of the Rights Certificates and the issuance of any Common Shares upon exercise of Rights; 

 

	 	(iii)	use reasonable efforts to cause all Common Shares issued upon exercise of Rights to be listed on the principal stock exchanges on which such Common Shares were traded immediately prior to the Stock Acquisition Date;

  

	 	(iv)	cause to be reserved and kept available out of the authorized and unissued Common Shares, the number of Common Shares that, as provided in this Agreement, will from time to time be sufficient to permit the exercise in
full of all outstanding Rights; 

  

	 	(v)	pay when due and payable, if applicable, any and all federal, provincial and municipal transfer taxes and charges (not including any income or capital taxes of the holder or exercising holder or any liability of the
Company to withhold tax) which may be payable in respect of the original issuance or delivery of the Rights Certificates, or certificates for Common Shares to be issued upon exercise of any Rights, provided that the Company shall not be required to
pay any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Common Shares in a name other than that of the holder of the
Rights being transferred or exercised; and 

  

	 	(vi)	after the Separation Time, except as permitted by Section 5.1, not take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish
substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 

  

	2.3	Adjustments to Exercise Price; Number of Rights 

 The Exercise Price, the number
and kind of securities subject to purchase upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 2.3. 

 

	 	(a)	In the event the Company shall at any time after the date of this Agreement: 

  

	 	(i)	declare or pay a dividend on Common Shares payable in Common Shares (or other securities exchangeable for or convertible into or giving a right to acquire Common Shares or other securities of the Company) other than
pursuant to any optional stock dividend program; 

  

	 	(ii)	subdivide or change the then outstanding Common Shares into a greater number of Common Shares; 

  

	 	(iii)	consolidate or change the then outstanding Common Shares into a smaller number of Common Shares; or 

  

	 	(iv)	 issue any Common Shares (or other securities exchangeable for or convertible into or giving a right to acquire
Common Shares or other securities of the Company) in respect of, in lieu of or in exchange for existing Common Shares except as otherwise provided in this Section 2.3, 

  
 - 16 - 

 the Exercise Price and the number of Rights outstanding, or, if the payment or effective date
therefor shall occur after the Separation Time, the securities purchasable upon exercise of Rights shall be adjusted as of the payment or effective date in the manner set forth below. 

If the Exercise Price and number of Rights outstanding are to be adjusted: 

 

	 	(x)	the Exercise Price in effect after such adjustment will be equal to the Exercise Price in effect immediately prior to such adjustment divided by the number of Common Shares (or other capital stock) that a holder of one
Common Share immediately prior to such dividend, subdivision, change, consolidation or issuance would hold immediately thereafter as a result thereof (for the purpose of this Agreement, “Expansion Factor” shall mean the number of
Common Shares (or other capital stock) that a holder of one Common Share immediately prior to such dividend, subdivision, change, consolidation or issuance would hold immediately thereafter as a result thereof divided by 1 Common Share); and

  

	 	(y)	each Right held prior to such adjustment will become that number of Rights equal to the Expansion Factor, 

and the adjusted number of Rights will be deemed to be distributed among the Common Shares with respect to which the original Rights were
associated (if they remain outstanding) and the shares issued in respect of such dividend, subdivision, change, consolidation or issuance, so that each such Common Share (or other capital stock) will have exactly one Right associated with it. 

For greater certainty, if the securities purchasable upon exercise of Rights are to be adjusted, the securities purchasable upon exercise of
each Right immediately after such adjustment will be the securities that a holder of the securities purchasable upon exercise of one Right immediately prior to such dividend, subdivision, change, consolidation or issuance would hold immediately
thereafter, including as a result of such dividend, subdivision, change, consolidation or issuance. 
 If, after the Record Time and prior
to the Expiration Time, the Company shall issue any shares of capital stock other than Common Shares in a transaction of a type described in Subsection 2.3(a)(i) or (iv), shares of such capital stock shall be treated herein as nearly equivalent to
Common Shares as may be practicable and appropriate under the circumstances and the Company and the Rights Agent agree to amend this Agreement in order to effect such treatment. If an event occurs which would require an adjustment under both this
Section 2.3 and Subsection 3.1 (a) hereof, the adjustment provided for in this Section 2.3 shall be in addition to and shall be made prior to any adjustment required pursuant to Subsection 3.1(a) hereof. Adjustments pursuant to this
Subsection 2.3(a) shall be made successively, whenever an event referred to in this Subsection 2.3(a) occurs. 
 In the event the Company
shall at any time after the Record Time and prior to the Separation Time issue any Common Shares otherwise than in a transaction referred to in this Subsection 2.3(a), each such Common Share so issued shall automatically have one new Right
associated with it, which Right shall be evidenced by the certificate representing such associated Common Share. 
  

	 	(b)	In the event the Company shall at any time after the Record Time and prior to the Separation Time fix a record date for the issuance of rights, options or warrants to all holders of Common Shares entitling them (for a
period expiring within 45 calendar days after such record date) to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for or carrying a right to purchase Common Shares) at a price per Common Share (or, if a
security convertible into or exchangeable for or carrying a right to purchase or subscribe for Common Shares, having a conversion, exchange or exercise price, including the price required to be paid to purchase such convertible or exchangeable
security or right per share) less than 90% of the Market Price per Common Share on such record date, the Exercise Price to be in effect after such record date shall 

  
 - 17 - 

	 	
be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction: 

 

	 	(i)	the numerator of which shall be the number of Common Shares outstanding on such record date, plus the number of Common Shares that the aggregate offering price of the total number of Common Shares so to be offered
(and/or the aggregate initial conversion, exchange or exercise price of the convertible or exchangeable securities or rights so to be offered, including the price required to be paid to purchase such convertible or exchangeable securities or rights)
would purchase at such Market Price per Common Share; and 

  

	 	(ii)	the denominator of which shall be the number of Common Shares outstanding on such record date, plus the number of additional Common Shares to be offered for subscription or purchase (or into which the convertible or
exchangeable securities or rights so to be offered are initially convertible, exchangeable or exercisable). 

 In case such
subscription price may be paid by delivery of consideration, part or all of which may be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors, whose determination shall be
described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of Rights. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or
warrants are not so issued, or if issued, are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed, or to the Exercise Price
which would be in effect based upon the number of Common Shares (or securities convertible into, or exchangeable or exercisable for Common Shares) actually issued upon the exercise of such rights, options or warrants, as the case may be. 

For purposes of this Agreement, the granting of the right to purchase Common Shares (whether from treasury or otherwise) pursuant to any
Dividend Reinvestment Plan or any employee benefit, stock option or similar plans shall be deemed not to constitute an issue of rights, options or warrants by the Company; provided, however, that, in all such cases, the right to purchase Common
Shares is at a price per share of not less than 90% of the current Market Price per share (determined as provided in such plans) of the Common Shares. 
  

	 	(c)	In the event the Company shall at any time after the Record Time and prior to the Separation Time fix a record date for the making of a distribution to all holders of Common Shares (including any such distribution made
in connection with a merger or amalgamation or statutory arrangement) of evidences of indebtedness, cash (other than an annual, quarterly monthly or routine cash dividend or a dividend referred to in Subsection 2.3(a)(i),but including any dividend
payable in other securities of the Company other than Common Shares), assets or rights, options or warrants (excluding those referred to in Subsection 2.3(b)), the Exercise Price to be in effect after such record date shall be determined by
multiplying the Exercise Price in effect immediately prior to such record date by a fraction: 

  

	 	(i)	the numerator of which shall be the Market Price per Common Share on such record date, less the fair market value (as determined in good faith by the Board of Directors, whose determination shall be described in a
statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of Rights), on a per share basis, of the portion of the cash, assets, evidences of indebtedness, rights, options or warrants so to be distributed; and

  

	 	(ii)	the denominator of which shall be such Market Price per Common Share. 

  
 - 18 - 

 Such adjustments shall be made successively whenever such a record date is fixed, and in the
event that such a distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price which would have been in effect if such record date had not been fixed. 

 

	 	(d)	Notwithstanding anything herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least one per cent in the Exercise Price;
provided, however, that any adjustments which by reason of this Subsection 2.3(d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under Section 2.3 shall be made to the
nearest cent or to the nearest ten-thousandth of a share. Notwithstanding the first sentence of this Subsection 2.3(d), any adjustment required by Section 2.3 shall be made no later than the earlier of:

  

	 	(i)	three years from the date of the transaction which gives rise to such adjustment; or 

  

	 	(ii)	the Expiration Time. 

  

	 	(e)	In the event the Company shall at any time after the Record Time and prior to the Separation Time issue any shares of capital stock (other than Common Shares), or rights, options or warrants to subscribe for or purchase
any such capital stock, in a transaction referred to in Subsection 2.3(a)(i) or (iv) above, if the Board of Directors acting in good faith determines that the adjustments contemplated by Subsection 2.3(a), (b) and (c) above in connection
with such transaction will not appropriately protect the interests of the holders of Rights, the Board of Directors may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights
would be appropriate and, notwithstanding Subsections 2.3(a), (b) and (c) above, such adjustments rather than the adjustments contemplated by Subsections 2.3(a), (b) and (c) above, shall be made. Subject to the prior consent of the holders
of the Voting Shares or Rights obtained as set forth in Subsection 5.4(b) or (c), the Company and the Rights Agent shall have authority to amend this Agreement as appropriate to provide for such adjustments. 

 

	 	(f)	Each Right originally issued by the Company subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of Common Shares purchasable
from time to time hereunder upon exercise of a Right immediately prior to such issue, all subject to further adjustment as provided herein. 

  

	 	(g)	Irrespective of any adjustment or change in the Exercise Price or the number of Common Shares issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express
the Exercise Price per Common Share and the number of Common Shares which were expressed in the initial Rights Certificates issued hereunder. 

In any case in which this Section 2.3 shall require that an adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Common Shares and other securities of the Company, if any, issuable upon such
exercise over and above the number of Common Shares and other securities of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Company shall deliver to
such holder an appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or other securities upon the occurrence of the event requiring such adjustment. 

 

	 	(h)	Notwithstanding anything contained in this Section 2.3 to the contrary, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those adjustments expressly required by this
Section 2.3, as and to the extent that in their good faith judgment the Board of Directors shall determine to be advisable, in order that any: 

  

	 	(i)	consolidation or subdivision of Common Shares; 

  
 - 19 - 

	 	(ii)	issuance (wholly or in part for cash) of Common Shares or securities that by their terms are convertible into or exchangeable for Common Shares; 

 

	 	(iii)	stock dividends; or 

  

	 	(iv)	issuance of rights, options or warrants referred to in this Section 2.3, hereafter made by the Company to holders of its Common Shares, shall not be taxable to such shareholders. 

 

	 	(i)	Whenever an adjustment to the Exercise Price or a change in the securities purchaseable upon exercise of the Rights is made pursuant to this Section 2.3, the Company shall promptly and in any event, where such
change or adjustment occurs prior to the Separation Time, not later than the Separation Time: 

  

	 	(i)	file with the Rights Agent and with each transfer agent for the Common Shares a certificate specifying the particulars of such adjustment or change; and 

 

	 	(ii)	cause notice of the particulars of such adjustment or change to be given to the holders of the Rights. 

Failure to file such certificate or to cause such notice to be given as aforesaid, or any defect therein, shall not affect the validity of
such adjustment or change. 
  

	2.4	Date on Which Exercise Is Effective 

 Each Person in whose name any certificate
for Common Shares or other securities, if applicable, is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Common Shares or other securities, if applicable, represented thereby, and such
certificate shall be dated the date upon which the Rights Certificate evidencing such Rights was duly surrendered in accordance with Subsection 2.2(d) (together with a duly completed Election to Exercise) and payment of the Exercise Price for such
Rights (and any applicable transfer taxes and other governmental charges payable by the exercising holder hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the Common Share transfer books of
the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Common Share transfer books of the Company are open. 

 

	2.5	Execution, Authentication, Delivery and Dating of Rights Certificates 

  

	 	(a)	The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, Chief Executive Officer, President, Chief Financial Officer or any Vice-President and by its Corporate Secretary or any
Assistant Secretary under the corporate seal of the Company reproduced thereon. The signature of any of these officers on the Rights Certificates may be manual or facsimile. Rights Certificates bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices either before or after the countersignature and delivery of such Rights
Certificates. 

  

	 	(b)	Promptly after the Company learns of the Separation Time, the Company will notify the Rights Agent of such Separation Time and will deliver Rights Certificates executed by the Company to the Rights Agent for
countersignature, and the Rights Agent shall manually countersign (in a manner satisfactory to the Company) and send such Rights Certificates to the holders of the Rights pursuant to Subsection 2.2(c) hereof. No Rights Certificate shall be valid for
any purpose until countersigned by the Rights Agent as aforesaid. 

  

	 	(c)	Each Rights Certificate shall be dated the date of countersignature thereof. 

  
 - 20 - 

	2.6	Registration, Transfer and Exchange 

  

	 	(a)	The Company will cause to be kept a register (the “Rights Register”) in which, subject to such reasonable regulations as it may prescribe, the Company will provide for the registration and transfer of
Rights. The Rights Agent is hereby appointed registrar for the Rights (the “Rights Registrar”) for the purpose of maintaining the Rights Register for the Company and registering Rights and transfers of Rights as herein provided and
the Rights Agent hereby accepts such appointment. In the event that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable times. 

After the Separation Time and prior to the Expiration Time, upon surrender for registration of transfer or exchange of any Rights Certificate,
and subject to the provisions of Subsection 2.6(c), the Company will execute, and the Rights Agent will manually countersign and deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the
holder’s instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered. 
  

	 	(b)	All Rights issued upon any registration of transfer or exchange of Rights Certificates shall be the valid obligations of the Company, and such Rights shall be entitled to the same benefits under this Agreement as the
Rights surrendered upon such registration of transfer or exchange. 

  

	 	(c)	Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer satisfactory in form to the Company or the Rights Agent, as the
case may be, duly executed by the holder thereof or such holder’s attorney duly authorized in writing. As a condition to the issuance of any new Rights Certificate under this Section 2.6, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the reasonable fees and expenses of the Rights Agent) connected therewith. 

 

	2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates 

  

	 	(a)	If any mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the Company shall execute and the Rights Agent shall countersign and deliver in exchange therefor a new Rights
Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 

  

	 	(b)	If there shall be delivered to the Company and the Rights Agent prior to the Expiration Time: 

  

	 	(i)	evidence to their reasonable satisfaction of the destruction, loss or theft of any Rights Certificate; and 

  

	 	(ii)	such security or indemnity as may be reasonably required by them to save each of them and any of their agents harmless; 

then, in the absence of notice to the Company or the Rights Agent that such Rights Certificate has been acquired by a bona fide
purchaser, the Company shall execute and upon the Company’s request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a new Rights Certificate evidencing the same number of Rights
as did the destroyed, lost or stolen Rights Certificate. 
  

	 	(c)	As a condition to the issuance of any new Rights Certificate under this Section 2.7, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the reasonable fees and expenses of the Rights Agent) connected therewith. 

  
 - 21 - 

	 	(d)	Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or stolen Rights Certificate shall evidence the contractual obligation of the Company, whether or not the destroyed,
lost or stolen Rights Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Rights duly issued hereunder. 

 

	2.8	Persons Deemed Owners of Rights 

 The Company, the Rights Agent and any agent of
the Company or the Rights Agent may deem and treat the Person in whose name a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced
thereby for all purposes whatsoever and the Company and the Rights Agent shall not be affected by any notice or knowledge to the contrary except as required by statute or by order of a court of competent jurisdiction. As used in this Agreement,
unless the context otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights (or, prior to the Separation Time, of the associated Common Shares). 

 

	2.9	Delivery and Cancellation of Certificates 

 All Rights Certificates surrendered
upon exercise or for redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by the Rights Agent. The Company
may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously countersigned and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Rights Certificates so delivered shall be
promptly cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of or in exchange for any Rights Certificates cancelled as provided in this Section 2.9, except as expressly permitted by this Agreement. The Rights
Agent shall, subject to applicable laws, and its ordinary business practices, destroy all cancelled Rights Certificates and deliver a certificate of destruction to the Company. 

 

	2.10	Agreement of Rights Holders 

 Every holder of Rights, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other holder of Rights: 
  

	 	(a)	to be bound by and subject to the provisions of this Agreement, as amended from time to time in accordance with the terms hereof, in respect of all Rights held; 

 

	 	(b)	that prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the associated Common Share certificate representing such Right; 

 

	 	(c)	that after the Separation Time, the Rights Certificates will be transferable only on the Rights Register as provided herein; 

  

	 	(d)	that prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) for registration of transfer, the Company, the Rights Agent and any agent of the Company
or the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on such Rights Certificate or the associated Common Share certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary; 

  

	 	(e)	that such holder of Rights has waived his right to receive any fractional Rights or any fractional shares or other securities upon exercise of a Right (except as provided herein); 

  
 - 22 - 

	 	(f)	notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or any other Person as a result of its inability to perform any of
its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; and 

 

	 	(g)	that, subject to the provisions of Section 5.4, without the approval of any holder of Rights or Voting Shares and upon the sole authority of the Board of Directors, this Agreement may be supplemented or amended
from time to time to cure any ambiguity or to correct or supplement any provision contained herein which may be inconsistent with the intent of this Agreement or is otherwise defective, as provided herein. 

 

	2.11	Holder of Rights Not Deemed a Shareholder 

 No holder, as such, of any Rights or
Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose whatsoever the holder of any Common Share or any other share or security of the Company which may at any time be issuable on the exercise of such Rights,
nor shall anything contained herein or in any Rights Certificate be construed or deemed or confer upon the holder of any Right or Rights Certificate, as such, any right, title, benefit or privilege of a holder of Common Shares or any other shares or
securities of the Company or any right to vote at any meeting of shareholders of the Company whether for the election of directors or otherwise or upon any matter submitted to holders of Common Shares or any other shares of the Company at any
meeting thereof, or to give or withhold consent to any action of the Company, or to receive notice of any meeting or other action affecting any holder of Common Shares or any other shares of the Company except as expressly provided herein, or to
receive dividends, distributions or subscription rights, or otherwise, until the Right or Rights evidenced by Rights Certificates shall have been duly exercised in accordance with the terms and provisions hereof. 

ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS 

IN THE EVENT OF A FLIP-IN EVENT 

 

	3.1	Flip-in Event 

  

	 	(a)	Subject to Subsection 3.1(b) and Section 5.1, if prior to the Expiration Time a Flip-in Event occurs, each Right shall constitute, effective at the close of business on the
tenth Trading Day after the Stock Acquisition Date, the right to purchase from the Company, upon exercise thereof in accordance with the terms hereof, that number of Common Shares having an aggregate Market Price on the date of consummation or
occurrence of such Flip-in Event equal to twice the Exercise Price for an amount in cash equal to the Exercise Price (such right to be appropriately adjusted in a manner analogous to the applicable adjustment
provided for in Section 2.3 in the event that after such consummation or occurrence, an event of a type analogous to any of the events described in Section 2.3 shall have occurred). 

 

	 	(b)	Notwithstanding anything in this Agreement to the contrary, upon the occurrence of any Flip-in Event, any Rights that are or were Beneficially Owned on or after the earlier of the
Separation Time or the Stock Acquisition Date by: 

  

	 	(i)	an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an Acquiring Person); or 

 

	 	(ii)	 a transferee of or other successor in title or ownership to Rights (a “transferee”), directly or
indirectly, from an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an Acquiring Person), where such transferee becomes a

  
 - 23 - 

	 	
transferee concurrently with or subsequent to the Acquiring Person becoming an Acquiring Person in a transfer that the Board of Directors has determined is part of a plan, arrangement or scheme
of an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an Acquiring Person), that has the purpose or effect of avoiding
Subsection 3.1(b)(i), 

 shall become null and void without any further action, and any holder of such Rights (including
transferees) shall thereafter have no right to exercise or transfer such Rights under any provision of this Agreement and further shall thereafter not have any other rights whatsoever with respect to such Rights, whether under any provision of this
Agreement or otherwise. The holder of any Rights represented by a Rights Certificate which is submitted to the Rights Agent upon exercise or for registration of transfer or exchange on which the holder fails to certify upon the transfer or exchange
in the place set forth in the Rights Certificate establishing that such holder is not a Person described in either Subsection 3.1(b)(i) or (ii) above shall be deemed to be Beneficially Owned by an Acquiring Person for the purposes of this
Subsection 3.1 (b) and such rights shall be null and void. 
  

	 	(c)	From and after the Separation Time, the Company shall do all such acts and things as shall be necessary and within its power to ensure compliance with the provisions of this Section 3.1, including without
limitation, all such acts and things as may be required to satisfy the requirements of the Canada Business Corporations Act, the Securities Act (British Columbia) and the securities laws or comparable legislation of each of the provinces of Canada
and of the United States and each of the States thereof and any other applicable law, rule or regulation in respect of the issue of Common Shares upon the exercise of Rights in accordance with this Agreement. 

 

	 	(d)	Any Rights Certificate that represents Rights Beneficially Owned by a Person described in either Subsection 3.1(b)(i) or (ii) or transferred to any nominee of any such Person, and any Rights Certificate issued upon
transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain the following legend: 

“The Rights represented by this Rights Certificate were issued to a Person who was an Acquiring Person or an Affiliate or an Associate of
an Acquiring Person (as such terms are defined in the Rights Agreement) or a Person who was acting jointly or in concert with an Acquiring Person or an Affiliate or Associate of an Acquiring Person. This Rights Certificate and the Rights represented
hereby are void or shall become void in the circumstances specified in Subsection 3.1 (b) of the Rights Agreement.” 
 provided,
however, that the Rights Agent shall not be under any responsibility to ascertain the existence of facts that would require the imposition of such legend but shall impose such legend only if instructed to do so by the Company in writing or if a
holder fails to certify upon transfer or exchange in the space provided on the Rights Certificate that such holder is not a Person described in such legend. Notwithstanding the foregoing, the issuance of a Rights Certificate which does not bear the
legend referred to in this Subsection 3.1 (d) shall not invalidate or have any effect on the provisions of Subsection 3.1(b). 
 ARTICLE 4
- THE RIGHTS AGENT 
  

	4.1	General 

  

	 	(a)	 The Company hereby appoints the Rights Agent to act as agent for the Company and the holders of the Rights in
accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents
(“Co-Rights Agents”) as it may deem necessary or desirable, subject to the approval of the Rights Agent. In the event the Company appoints one or more
Co-Rights Agents, the respective duties of 

  
 - 24 - 

	 	
the Rights Agent and Co-Rights Agents shall be as the Company may determine, with the approval of the Rights Agent and the
Co-Rights Agents. The Company agrees to pay all reasonable fees and expenses of the Rights Agent in respect of the performance of its duties under this Agreement. The Company also agrees to indemnify the
Rights Agent, its officers, directors, and employees for, and to hold them harmless against, any loss, liability, or expense, incurred without gross negligence, bad faith or wilful misconduct on the part of the Rights Agent, for anything done or
omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability, which right to indemnification will survive the termination of this
Agreement or the resignation or removal of the Rights Agent. 

  

	 	(b)	The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this Agreement in reliance upon any certificate
for Common Shares, Rights Certificate, certificate for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, opinion, statement, or other
paper or document believed by it in good faith to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

 

	 	(c)	The Company shall inform the Rights Agent in a reasonably timely manner of events which may materially affect the administration of this Agreement by the Rights Agent and, at any time upon request, shall provide to the
Rights Agent an incumbency certificate certifying the then current officers of the Company; provided that failure to inform the Rights Agent of any such events, or any defect therein shall not affect the validity of any action taken hereunder in
relation to such events. 

  

	4.2	Merger, Amalgamation or Consolidation or Change of Name of Rights Agent 

  

	 	(a)	Any corporation into which the Rights Agent may be merged or amalgamated or with which it may be consolidated, or any corporation resulting from any merger, amalgamation, statutory arrangement or consolidation to which
the Rights Agent is a party, or any corporation succeeding to the shareholder or stockholder services business of the Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 4.4 hereof. If, at the time such successor Rights Agent succeeds
to the agency created by this Agreement, any of the Rights Certificates have been countersigned but not delivered, the successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so
countersigned; and if, at that time, any of the Rights have not been countersigned, any successor Rights Agent may countersign such Rights Certificates in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in
all such cases such Rights Certificates will have the full force provided in the Rights Certificates and in this Agreement. 

  

	 	(b)	If, at any time, the name of the Rights Agent is changed and at such time any of the Rights Certificates have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Rights Certificates so countersigned; and if, at that time, any of the Rights Certificates have not been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all
such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

  
 - 25 - 

	4.3	Duties of Rights Agent 

 The Rights Agent undertakes the duties and obligations
imposed by this Agreement upon the following terms and conditions, all of which the Company and the holders of Rights and Rights Certificates, by their acceptance thereof, shall be bound: 

 

	 	(a)	the Rights Agent, at the expense of the Company, may consult with and retain legal counsel (who may be legal counsel for the Company) and such other experts as it reasonably considers necessary to perform its duties
hereunder, and the opinion of such counsel or other expert will be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion; 

 

	 	(b)	whenever in the performance of its duties under this Agreement, the Rights Agent deems it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof is specifically prescribed herein) is deemed to be conclusively proved and established by a certificate signed by a Person believed by the Rights Agent to be the Chairman of
the Board, President, Chief Executive Officer, Chief Financial Officer, any Vice-President, Treasurer, Corporate Secretary, or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate will be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate; 

  

	 	(c)	notwithstanding anything to the contrary, the Rights Agent will be liable hereunder for its own gross negligence, bad faith or wilful misconduct; 

 

	 	(d)	the Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the certificates for Common Shares or the Rights Certificates (except its
countersignature thereof) or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Company only; 

  

	 	(e)	the Rights Agent will not have any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in
respect of the validity or execution of any certificate for a Common Share or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by the Company of any covenant or condition contained in this Agreement
or in any Rights Certificate; nor will it be responsible for any change in the exerciseability of the Rights (including the Rights becoming void pursuant to Subsection 3.1 (b) hereof) or any adjustment required under the provisions of
Section 2.3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights after receipt of the
certificate contemplated by Section 2.3 describing any such adjustment); nor is it deemed by any act hereunder to make any representation or warranty as to the authorization of any Common Shares to be issued pursuant to this Agreement or any
Rights or as to whether any Common Shares will, when issued, be duly and validly authorized, executed, issued and delivered and fully paid and non-assessable; 

 

	 	(f)	the Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be
required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement; 

  

	 	(g)	the Rights Agent is hereby authorized and directed to accept instructions in writing with respect to the performance of its duties hereunder from any individual believed by the Rights Agent to be the Chairman of the
Board, President, Chief Executive Officer, Chief Financial Officer, any Vice-President, Corporate Secretary or any Assistant Secretary of the Company, and to apply to such individuals for advice or instructions in connection with its duties, and it
shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such individual; 

  

	 	(h)	the Rights Agent and any shareholder or stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in Common Shares, Rights or other securities of the Company or become pecuniarily interested
in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement and nothing herein shall preclude the Rights Agent
from acting in any other capacity for the Company or for any other legal entity; and 

  
 - 26 - 

	 	(i)	the Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent will not be answerable
or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and
continued employment thereof. 

  

	4.4	Change of Rights Agent 

 The Rights Agent may resign and be discharged from its
duties under this Agreement upon 60 days’ notice (or such lesser notice as is acceptable to the Company) in writing mailed to the Company and to each transfer agent of Common Shares by registered or certified mail. The Company may remove the
Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each transfer agent of the Common Shares by registered or certified mail. If the Rights Agent should resign or be removed or otherwise become incapable of acting,
the Company will appoint a successor to the Rights Agent. If the Company fails to make such appointment within a period of 30 days after removal or 60 days after it has been notified in writing of the resignation or incapacity by the resigning or
incapacitated Rights Agent, then by prior written notice to the Company the resigning Rights Agent or the holder of any Rights (which holder shall, with such notice, submit such holder’s Rights Certificate, if any, for inspection by the
Company), may apply to a court of competent jurisdiction for the appointment of a new Rights Agent, at the Company’s expense. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation incorporated
under the laws of Canada or a province thereof authorized to carry on the business of a trust company in the Province of British Columbia. After appointment, the successor Rights Agent will be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent, upon receipt of all outstanding fees and expenses owing to it, shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company will file notice thereof in
writing with the predecessor Rights Agent and each transfer agent of the Common Shares and mail a notice thereof in writing to the holders of the Rights in accordance with Section 5.9. Failure to give any notice provided for in this
Section 4.4, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of any successor Rights Agent, as the case may be. 

 

	4.5	Compliance with Money Laundering Legislation 

 The Rights Agent shall retain the
right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Rights Agent reasonably determines that such an act might cause it to be in
non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline. Further, should the Rights Agent reasonably determine at any time that its acting under this
Agreement has resulted in it being in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right to resign on 10 days’
written notice to the Company, provided: (i) that the Rights Agent’s written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to
the Rights Agent’s satisfaction within such 10-day period, then such resignation shall not be effective. 
  

	4.6	Privacy Provision 

 The parties acknowledge that federal and/or provincial
legislation that addresses the protection of individual’s personal information (collectively, “Privacy Laws”) applies to obligations and activities under this Agreement. Despite any other provision of this Agreement, neither
party will take or direct any action that would contravene, or cause the other to contravene, applicable Privacy Laws. The Company will, prior to transferring or causing to be transferred personal information to the Rights Agent, obtain and retain
required consents of the relevant individuals to the collection, use and disclosure of their personal information, or will have determined that such consents either have previously been given upon which the parties can rely or are not required under
the Privacy Laws. The Rights Agent will use commercially reasonable efforts to ensure that its services hereunder comply with Privacy Laws. 

  
 - 27 - 

 ARTICLE 5 - MISCELLANEOUS 

 

	5.1	Redemption and Waiver 

  

	 	(a)	The Board of Directors acting in good faith may, until the occurrence of a Flip-in Event, upon prior written notice delivered to the Rights Agent, waive the application of
Section 3.1 to that particular Flip-in Event provided that the particular Flip-in Event would result from a Take-over Bid made by way of take-over bid circular sent
to all holders of record of Voting Shares (which for greater certainty shall not include the circumstances described in Subsection 5.1(h)); provided that if the Board of Directors waives the application of Section 3.1 to a particular Flip-in Event pursuant to this Subsection 5.1(a), the Board of Directors shall be deemed to have waived the application of Section 3.1 to any other Flip-in Event
occurring by reason of any Take-over Bid which is made by means of a take-over bid circular to all holders of record of Voting Shares prior to the expiry of any Take-over Bid (as the same may be extended from time to time) in respect of which a
waiver is, or is deemed to have been, granted under this Subsection 5.1(a). 

  

	 	(b)	Subject to the prior consent of the holders of the Voting Shares or the Rights as set forth in Subsection 5.4(b) or (c), as the case may be, the Board of Directors of the Company acting in good faith may, at its option,
at any time prior to the provisions of Section 3.1 becoming applicable as a result of the occurrence of a Flip-in Event, elect to redeem all but not less than all of the outstanding Rights at a redemption
price of $0.00001 per Right appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 if an event of the type analogous to any of the events described in Section 2.3 shall have occurred (such
redemption price being herein referred to as the “Redemption Price”). 

  

	 	(c)	Where, pursuant to a Permitted Bid, a Competing Permitted Bid, an Exempt Acquisition or an acquisition for which a waiver has been granted under Subsection 5.1(a), a Person acquires outstanding Voting Shares, other than
Voting Shares Beneficially Owned by such Person at the date of the Permitted Bid, the Competing Permitted Bid, the Exempt Acquisition or an acquisition for which a waiver has been granted under Subsection 5.1(a), then the Board of Directors of the
Company shall immediately upon the consummation of such acquisition without further formality and without any approval under Subsection 5.4(b) or (c) be deemed to have elected to redeem the Rights at the Redemption Price. 

 

	 	(d)	Where a Take-over Bid that is not a Permitted Bid or a Competing Permitted Bid expires, is withdrawn or otherwise terminates after the Separation Time has occurred and prior to the occurrence of a Flip-in Event, the Board of Directors may elect to redeem all the outstanding Rights at the Redemption Price. 

  

	 	(e)	If the Board of Directors is deemed under Subsection 5.1 (c) to have elected, or elects under either of Subsection 5.1 (b) or (d), to redeem the Rights, the right to exercise the Rights will thereupon, without further
action and without notice, terminate and the only right thereafter of the holders of Rights so redeemed shall be to receive the Redemption Price. 

  

	 	(f)	Within 10 days after the Board of Directors is deemed under Subsection 5.1 (c) to have elected, or elects under Subsection 5.1 (b) or (d), to redeem the Rights, the Company shall give notice of redemption to the holders
of the then outstanding Rights by publication of a notice in any newspaper distributed nationally in Canada or by mailing such notice to each such holder at his last address as it appears upon the registry books of the Rights Agent or, prior to the
Separation Time, on the registry books of the transfer agent for the Voting Shares. Any notice which is mailed in the manner provided herein shall be deemed given, whether or not the holder receives the notice. Each notice of redemption will state
the method by which the payment of the Redemption Price will be made. 

  
 - 28 - 

	 	(g)	Upon the Rights being redeemed pursuant to Subsection 5.1(d), the directors shall be deemed to have distributed new Rights to the holders of Voting Shares as of such date and in respect of each additional Voting Share
issued thereafter, on the same basis as Rights were first distributed hereunder and thereafter all the provisions of this Agreement shall continue to apply to such redistributed Rights as if the Separation Time referred to in Section 5.1 (d)
had not occurred and which for all purposes of this Agreement shall be deemed not to have occurred and the new Rights shall be outstanding and attached to the outstanding Common Shares as of and after such date, subject to and in accordance with the
provisions of this Agreement. 

  

	 	(h)	The Board of Directors may waive the application of Section 3.1 in respect of the occurrence of any Flip-in Event if the Board of Directors has determined within ten Trading
Days following a Stock Acquisition Date that a Person became an Acquiring Person by inadvertence and without any intention to become, or knowledge that it would become, an Acquiring Person under this Agreement and, in the event that such a waiver is
granted by the Board of Directors, such Stock Acquisition Date shall be deemed not to have occurred. Any such waiver pursuant to this Subsection 5.1 (h) must be on the condition that such Person, within 14 days after the foregoing determination by
the Board of Directors or such earlier or later date as the Board of Directors may determine (the “Disposition Date”), has reduced its Beneficial Ownership of Voting Shares so that the Person is no longer an Acquiring Person. If the
Person remains an Acquiring Person at the close of business on the Disposition Date, the Disposition Date shall be deemed to be the date of occurrence of a further Stock Acquisition Date and Section 3.1 shall apply thereto. 

 

	 	(i)	The Company shall give prompt written notice to the Rights Agent of any waiver of the application of Section 3.1 made by the Board of Directors under this Section 5.1. 

 

	5.2	Expiration 

 No Person shall have any rights whatsoever pursuant to this Agreement
or in respect of any Right after the Expiration Time, except the Rights Agent as specified in Subsection 4.1 (a) of this Agreement. 
  

	5.3	Issuance of New Rights Certificates 

 Notwithstanding any of the provisions of
this Agreement or the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect any adjustment or change in the number or kind or
class of securities purchasable upon exercise of Rights made in accordance with the provisions of this Agreement. 
  

	5.4	Supplements and Amendments 

  

	 	(a)	The Company may at any time, by resolution of the Board of Directors, supplement or make amendments to this Agreement to correct any clerical or typographical error or, subject to Subsection 5.4(e), which supplements or
amendments are required to maintain the validity of this Agreement as a result of any change in any applicable legislation, rules or regulations thereunder or policies of securities regulatory authorities or stock exchanges. The Company may, by
resolution of the Board of Directors, prior to the date of its shareholders’ meeting referred to in Section 5.15, supplement or amend this Agreement without the approval of any holders of Rights or Voting Shares (whether or not such action
would adversely affect the interest of the holders of Rights or Voting Shares generally) in order to make any changes which the Board of Directors acting in good faith may deem necessary or desirable. Notwithstanding anything in this
Section 5.4 to the contrary, no such supplement or amendment shall be made to the provisions of Article 4 except with the written concurrence of the Rights Agent to such supplement or amendment. 

 

	 	(b)	 Subject to Subsection 5.4(a), the Company may, with the prior consent of the holders of Voting Shares obtained as
set forth below, at any time before the Separation Time, amend, vary or rescind any of the provisions of this Agreement and the Rights (whether or not such action would 

  
 - 29 - 

	 	
materially adversely affect the interests of the holders of Rights generally). Such consent shall be deemed to have been given if provided by the holders of Voting Shares at a Special Meeting,
which Special Meeting shall be called and held in compliance with applicable laws and regulatory requirements and the requirements in the articles and by-laws of the Company. Subject to compliance with any
requirements imposed by the foregoing, consent shall be given if the proposed amendment, variation or rescission is approved by the affirmative vote of a majority of the votes cast by Independent Shareholders present or represented in person or by
proxy at and entitled to be voted at the Special Meeting. 

  

	 	(c)	The Company may, with the prior consent of the holders of Rights obtained as set forth below, at any time after the Separation Time and before the Expiration Time, amend, vary or rescind any of the provisions of this
Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally), provided that no such amendment, variation or deletion shall be made to the provisions of Article 4 except with
the written concurrence of the Rights Agent thereto. Such consent shall be deemed to have been given if provided by the holders of Rights at a Rights Holders’ Special Meeting, which Rights Holders’ Special Meeting shall be called and held
in compliance with applicable laws and regulatory requirements and, to the extent possible, with the requirements in the articles and by-laws of the Company applicable to meetings of holders of Voting Shares,
applied mutatis mutandis. Subject to compliance with any requirements imposed by the foregoing, consent shall be given if the proposed amendment, variation or rescission is approved by the affirmative vote of a majority of the votes cast by holders
of Rights (other than holders of Rights whose Rights have become null and void pursuant to Subsection 3.1(b)), represented in person or by proxy at and entitled to be voted at the Rights Holders’ Special Meeting. 

 

	 	(d)	Any approval of the holders of Rights shall be deemed to have been given if the action requiring such approval is authorized by the affirmative votes of the holders of Rights present or represented at and entitled to be
voted at a meeting of the holders of Rights and representing a majority of the votes cast in respect thereof. For the purposes hereof, each outstanding Right (other than Rights which are void pursuant to the provisions hereof) shall be entitled to
one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in the Company’s by-laws and the Canada Business
Corporations Act with respect to meetings of shareholders of the Company. 

  

	 	(e)	Any amendments made by the Company to this Agreement pursuant to Subsection 5.4(a) which are required to maintain the validity of this Agreement as a result of any change in any applicable legislation, rule or
regulation thereunder or policies of any securities regulatory authority or stock exchange shall: 

  

	 	(i)	if made before the Separation Time, be submitted to the shareholders of the Company at the next meeting of shareholders and the shareholders may, by the majority referred to in Subsection 5.4(b), confirm or reject such
amendment; 

  

	 	(ii)	if made after the Separation Time, be submitted to the holders of Rights at a meeting to be called for on a date not later than immediately following the next meeting of shareholders of the Company called after the
Separation Time and the holders of Rights may, by resolution passed by the majority referred to in Subsection 5.4(d), confirm or reject such amendment. 

Any such amendment shall be effective from the date of the resolution of the Board of Directors adopting such amendment, until it is confirmed
or rejected or until it ceases to be effective (as described in the next sentence) and, where such amendment is confirmed, it continues in effect in the form so confirmed. If such amendment is rejected by the shareholders or the holders of Rights or
is not submitted to the shareholders or holders of Rights as required, then such amendment shall cease to be effective from and after the termination of the meeting at which it was rejected or to which it should have been but was not submitted or
from and after the date of the meeting of 

  
 - 30 - 

 
holders of Rights that should have been but was not held, and no subsequent resolution of the Board of Directors to amend this Agreement to substantially the same effect shall be effective until
confirmed by the shareholders or holders of Rights referred to in Subsection 5.4(b) or 5.4(c), as the case may be. 
  

	5.5	Fractional Rights and Fractional Shares 

  

	 	(a)	The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. After the Separation Time, in lieu of issuing fractional Rights, the Company shall
pay to the holders of record of the Rights Certificates (provided the Rights represented by such Rights Certificates are not void pursuant to the provisions of Subsection 3.1(b), at the time such fractional Rights would otherwise be issuable), an
amount in cash equal to the fraction of the Market Price of one whole Right that the fraction of a Right that would otherwise be issuable is of one whole Right, provided that the Company shall not be required or obligated to make any payment
provided for above unless the amount payable by the Company to a certain holder exceeds $10. 

  

	 	(b)	The Company shall not be required to issue fractions of Common Shares upon exercise of Rights or to distribute certificates which evidence fractional Common Shares. In lieu of issuing fractional Common Shares, the
Company shall pay to the registered holders of Rights Certificates, at the time such Rights are exercised as herein provided, an amount in cash equal to the fraction of the Market Price of one Common Share that the fraction of a Common Share that
would otherwise be issuable upon the exercise of such Right is of one whole Common Share at the date of such exercise. 

  

	 	(c)	The Rights Agent shall have no obligation to make any payments in lieu of issuing fractions of Rights or Common Shares pursuant to Subsection 5.5(a) or (b), respectively, unless and until the Company shall have provided
to the Rights Agent the amount of cash to be paid in lieu of issuing such fractional Rights or Common Shares, as the case may be. 

  

	5.6	Rights of Action 

 Subject to the terms of this Agreement, all rights of action in
respect of this Agreement, other than rights of action vested solely in the Rights Agent, are vested in the respective holders of the Rights. Any holder of Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on
such holder’s own behalf and for such holder’s own benefit and the benefit of other holders of Rights, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce such holder’s right to
exercise such holder’s Rights, or Rights to which such holder is entitled, in the manner provided in such holder’s Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights,
it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or
threatened violations of the obligations of any Person subject to, this Agreement. 
  

	5.7	Regulatory Approvals 

 Any obligation of the Company or action or event
contemplated by this Agreement shall be subject to the receipt of requisite approval or consent from any governmental or regulatory authority having jurisdiction, and without limiting the generality of the foregoing, while any securities of the
Company are listed and admitted to trading thereon, necessary approvals of the Toronto Stock Exchange and other exchanges shall be obtained, in relation to the issuance of the Common Shares upon the exercise of Rights under Subsection 2.2(d). 

 

	5.8	Non-Canadian Holders 

 If in the opinion
of the Board of Directors (who may rely upon the advice of counsel) any action or event contemplated by this Agreement would require compliance by the Company with the securities laws or comparable 

  
 - 31 - 

 
legislation of a jurisdiction outside Canada, the Board of Directors acting in good faith shall take such actions as it may consider appropriate to ensure such compliance or avoid the application
thereof. In no event shall the Company or the Rights Agent be required to issue or deliver Rights or securities issuable on exercise of Rights to persons who are citizens, residents or nationals of any jurisdiction other than Canada, in which such
issue or delivery would be unlawful without registration of the relevant Persons or securities for such purposes. 
  

	5.9	Notices 

  

	 	(a)	Notices or demands authorized or required by this Agreement to be given or made by the Rights Agent or by the holder of any Rights to or on the Company shall be sufficiently given or made if delivered, sent by
registered or certified mail, postage prepaid (until another address is filed in writing with the Rights Agent), or sent by facsimile or other form of recorded electronic communication, charges prepaid and confirmed in writing, as follows:

 MacDonald, Dettwiler and Associates Ltd. 

13800 Commerce Parkway 

Richmond BC V6V 2J3 

Attention:    Corporate Secretary 

Fax No.       (604) 278-6427 

 

	 	(b)	Notices or demands authorized or required by this Agreement to be given or made by the Company or by the holder of any Rights to or on the Rights Agent shall be sufficiently given or made if delivered, sent by
registered or certified mail, postage prepaid (until another address is filed in writing with the Company), or sent by facsimile or other form of recorded electronic communication, charges prepaid and confirmed in writing, as follows:

 Computershare Investor Services Inc. 

510 Burrard Street, 3rd Floor 

Vancouver BC V6C 3B9 

Attention:    General Manager, Client Services 

Fax No.:      (604) 661-9401 

 

	 	(c)	Except as otherwise provided hereunder, notices or demands authorized or required by this Agreement to be given or made by the Company or the Rights Agent to or on the holder of any Rights shall be sufficiently given or
made if delivered or sent by registered or certified mail, postage prepaid, addressed to such holder at the address of such holder as it appears upon the register of the Rights Agent or, prior to the Separation Time, on the register of the Company
for its Common Shares. Any notice which is mailed or sent in the manner herein provided shall be deemed given, whether or not the holder receives the notice. 

  

	 	(d)	Any notice given or made in accordance with this Section 5.9 shall be deemed to have been given and to have been received on the day of delivery, if so delivered, on the third Business Day (excluding each day
during which there exists any general interruption of postal service due to strike, lockout or other cause) following the mailing thereof, if so mailed, and on the day of telecopying or sending of the same by other means of recorded electronic
communication (provided such sending is during the normal business hours of the addressee on a Business Day and if not, on the first Business Day thereafter). Each of the Company and the Rights Agent may from time to time change its address for
notice by notice to the other given in the manner aforesaid. 

  
 - 32 - 

	5.10	Costs of Enforcement 

 The Company agrees that if the Company fails to fulfil any of its
obligations pursuant to this Agreement, then the Company will reimburse the holder of any Rights for the costs and expenses (including legal fees) reasonably incurred by such holder to enforce his rights pursuant to any Rights or this Agreement.

  

	5.11	Successors 

 All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and enure to the benefit of their respective successors and assigns hereunder. 
  

	5.12	Benefits of this Agreement 

 Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the holders of the Rights any legal or equitable right, remedy or claim under this Agreement; further, this Agreement shall be for the sole and exclusive benefit of the Company, the Rights
Agent and the holders of the Rights. 
  

	5.13	Governing Law 

 This Agreement and each Right issued hereunder shall be deemed to
be a contract made under the laws of the Province of British Columbia and for all purposes shall be governed by and construed in accordance with the laws of such Province applicable to contracts to be made and performed entirely within such
Province. 
  

	5.14	Severability 

 If any term or provision hereof or the application thereof to any
circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective only as to such jurisdiction and to the extent of such invalidity or unenforceability in such jurisdiction without
invalidating or rendering unenforceable or ineffective the remaining terms and provisions hereof in such jurisdiction or the application of such term or provision in any other jurisdiction or to circumstances other than those as to which it is
specifically held invalid or unenforceable. 
  

	5.15	Effective Date and Confirmation 

 This Agreement is effective and in full force
and effect in accordance with its terms from and after the date hereof. At the first annual or special meeting of holders of Voting Shares following the date hereof, the Company shall request confirmation of this Agreement by the holders of its
Voting Shares. If this Agreement is not confirmed by resolution passed by a majority of the votes cast by holders of Voting Shares of the Company who vote in respect of confirmation of this Agreement at a meeting of the Company’s shareholders
to be held on or prior to June 30, 2008, then this Agreement and all outstanding Rights shall terminate and be void and of no further force and effect on and from that date which is the earlier of (a) the date of termination of the meeting
called to consider the confirmation of this Agreement under this Section 5.15 and (b) June 30, 2008. 
  

	5.16	Reconfirmation 

 This Agreement must be reconfirmed by a resolution passed by a
majority of the votes cast by all holders of Voting Shares who vote in respect of such reconfirmation at the annual meeting of the Company held in 2011 and at every third annual meeting of the Company thereafter at which this Agreement has been
reconfirmed pursuant to this Section 5.16. If the Agreement is not so reconfirmed or is not presented for reconfirmation at any such annual meeting, the Agreement and all outstanding Rights shall terminate and be void and of no further force
and effect on and from the date of termination of any such annual meeting; provided, however, that termination shall not occur if a Flip-in Event has occurred (other than a
Flip-in Event which has been waived pursuant to Subsection 5.1 (a) or (h) hereof), prior to the date upon which this Agreement would otherwise terminate pursuant to this Section 5.16. 

  
 - 33 - 

	5.17	Determinations and Actions by the Board of Directors 

 All actions, calculations
and determinations (including all omissions with respect to the foregoing) which are done or made by the Board of Directors, in good faith, for the purposes hereof shall not subject the Board of Directors or any director of the Company to any
liability to the holders of the Rights. 
  

	5.18	Time of the Essence 

 Time shall be of the essence in this Agreement. 

 

	5.19	Execution in Counterparts 

 This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 

 

			
	MACDONALD, DETTWILER AND ASSOCIATES LTD.
		
	 By:
	 	 “Daniel Friedmann”

		
	By:	 	 “Anil Wirasekara”

		
		 	c/s
	
	COMPUTERSHARE INVESTOR SERVICES INC.
		
	 By:
	 	 “Jenny Karim”

		
	 By:
	 	 “June Glover”

		
		 	c/s

  
 - 34 - 

 ATTACHMENT 1 

MACDONALD, DETTWILER AND ASSOCIATES LTD. 

SHAREHOLDER RIGHTS PLAN AGREEMENT 

[Form of Rights Certificate] 
  

	 Certificate No. 
	 Rights 

 THE RIGHTS ARE
SUBJECT TO TERMINATION ON THE TERMS SET FORTH IN THE SHAREHOLDER RIGHTS PLAN AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN SUBSECTION 3.1(b) OF THE SHAREHOLDER RIGHTS PLAN AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR
CERTAIN RELATED PARTIES, OR TRANSFEREES OF AN ACQUIRING PERSON OR CERTAIN RELATED PARTIES AND THEIR TRANSFEREES, MAY BECOME VOID WITHOUT FURTHER ACTION. 

Rights Certificate 
 This
certifies that                                     , or registered
assigns, is the registered holder of the number of Rights set forth above, each of which entitles the registered holder thereof, subject to the terms, provisions and conditions of the Shareholder Rights Plan Agreement, dated as of
January 8, 2008 (the “Shareholder Rights Agreement”), between MacDonald, Dettwiler and Associates Ltd., a corporation duly incorporated under the Canada Business Corporations Act (the “Company”) and
Computershare Investor Services Inc., a trust company incorporated under the laws of Canada (the “Rights Agent”) (which term shall include any successor Rights Agent under the Shareholder Rights Agreement), to purchase from the
Company at any time after the Separation Time (as such term is defined in the Shareholder Rights Agreement) and prior to the Expiration Time (as such term is defined in the Shareholder Rights Agreement), one fully paid common share of the Company (a
“Common Share”) at the Exercise Price referred to below, upon presentation and surrender of this Rights Certificate with the Form of Election to Exercise (in the form provided hereinafter) duly executed and submitted to the Rights
Agent at its principal office in any of the cities of Vancouver and Toronto, Canada. Until adjustment thereof in certain events as provided in the Shareholder Rights Agreement, the Exercise Price shall be an amount equal to three times the Market
Price (as such term is defined in the Rights Plan Agreement) per Common Share determined as at the Separation Time and shall be subject to adjustment in certain events as provided in the Shareholder Rights Agreement. 

In certain circumstances described in the Rights Agreement, the number of Common Shares which each Right entitles the registered holder
thereof to purchase shall be adjusted as provided in the Shareholder Rights Agreement. 
 This Rights Certificate is subject to all of the
terms and provisions of the Shareholder Rights Agreement, which terms and provisions are incorporated herein by reference and made a part hereof and to which Shareholder Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Rights Agent, the Company and the holders of the Rights. Copies of the Shareholder Rights Agreement are on file at the registered office of the Company. 

This Rights Certificate, with or without other Rights Certificates, upon surrender at any of the offices of the Rights Agent designated for
such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights Certificate or Rights Certificates
surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 

 Subject to the provisions of the Shareholder Rights Agreement, the Rights evidenced by this
Certificate may be redeemed by the Company at a redemption price of $0.00001 per Right, subject to adjustment in certain events, under certain circumstances at its option. 

No fractional Common Shares will be issued upon the exercise of any Rights evidenced hereby, but in lieu thereof a cash payment will be made,
as provided in the Shareholder Rights Agreement. 
 No holder of this Rights Certificate, as such, shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of Common Shares or of any other securities which may at any time be issuable upon the exercise hereof, nor shall anything contained in the Shareholder Rights Agreement or herein be construed to
confer upon the holder hereof, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in the Shareholder Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this
Rights Certificate shall have been exercised as provided in the Shareholder Rights Agreement. 
 This Rights Certificate shall not be valid
or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the
Company and its corporate seal. 

			
		
	Date:	 	
                     
                                         
                   

	
	MACDONALD, DETTWILER AND ASSOCIATES LTD.
		
	By:	 	
                     
                                         
                   

		
	By:	 	
                     
                                         
                   

	
	Countersigned:
	
	COMPUTERSHARE INVESTOR SERVICES INC.
		
	By:	 	
                     
                                         
                   

		 	Authorized Signature

  
 - 2 - 

 FORM OF ASSIGNMENT 

(To be executed by the registered holder if such holder desires to transfer the Rights evidenced by this Rights Certificate.) 

FOR VALUE RECEIVED                     
                                         
                                         
                                     hereby sells, 
assigns 

and transfers unto                     
                                         
                                         
                                         
                                         
  
  

                          
                                         
                                         
                                         
                                         
                          

(Please print name and address of transferee.) 

the Rights represented by this Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                    , as attorney, to transfer the within Rights on the books of the Company, with full power of substitution. 

 

									
	 Dated:
	 	
                     
                                         
                   

	
	 Signature Guaranteed:

 

							
	  

	Signature
	
	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.)

 Signature must be guaranteed by a Canadian chartered bank, a Canadian trust company, a member of a recognized stock
exchange or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  

 
 CERTIFICATE 

(To be completed if true.) 
 The undersigned
party transferring Rights hereunder, hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been, Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof or a Person acting jointly or in concert with an Acquiring Person or an Affiliate or Associate thereof. Capitalized terms shall have the meaning ascribed thereto in the Shareholder
Rights Plan Agreement of MacDonald, Dettwiler and Associates Ltd. 
  

	
	  

	Signature

  
  

(To be attached to each Rights Certificate) 

 FORM OF ELECTION TO EXERCISE 

(To be executed by the registered holder if such holder desires to exercise the Rights Certificate.) 

 

			
	 TO:
	 	MACDONALD, DETTWILER AND ASSOCIATES LTD.
	AND TO:	 	COMPUTERSHARE INVESTOR SERVICES INC.

 The undersigned hereby irrevocably elects to exercise
                     whole Rights represented by the attached Rights Certificate to purchase the Common Shares or other securities, if applicable,
issuable upon the exercise of such Rights and requests that certificates for such securities be issued in the name of: 
  

 
 (Name) 

 
  

(Address) 
  

 
 (City, Province and Postal Code) 

 
  

(Social Insurance Number or other taxpayer identification number) 

If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall be
registered in the name of and delivered to: 
  
  

(Name) 
  

 
 (Address) 

 
  

(City, Province and Postal Code) 
  

 
 (Social Insurance Number or other taxpayer
identification number) 
  

			
	Dated:	 	  

	
	Signature Guaranteed:

  

	
	  

	Signature
	
	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.)

 Signature must be guaranteed by a Canadian chartered bank, a Canadian trust company, a member of a recognized stock
exchange or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  

 

 CERTIFICATE 

(To be completed if true.) 
 The undersigned
party exercising Rights hereunder, hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been, Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof or a Person acting jointly or in concert with an Acquiring Person or an Affiliate or Associate thereof. Capitalized terms shall have the meaning ascribed thereto in the Shareholder
Rights Plan Agreement of MacDonald, Dettwiler and Associates Ltd. 
  

	
	  

	Signature

  
  

(To be attached to each Rights Certificate) 

NOTICE 
 In the event the certification
set forth above in the Form of Assignment and Form of Election to Exercise, as applicable, is not completed, the Company will deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or
Associate thereof. No Rights Certificates shall be issued in exchange for a Rights Certificate owned or deemed to have been owned by an Acquiring Person or an Affiliate or Associate thereof, or by a Person acting jointly or in concert with an
Acquiring Person or an Affiliate or Associate thereof.EX-10.1

 Exhibit 10.1 

MACDONALD, DETTWILER AND ASSOCIATES LTD. 

as Borrower 
 - and - 

ROYAL BANK OF CANADA 
 as
Administrative Agent 
 - and - 

THOSE INSTITUTIONS WHOSE NAMES ARE SET FORTH ON THE EXECUTION PAGES HEREOF UNDER THE HEADING “LENDERS” 

as Lenders 
  

 
  

2012 CREDIT AGREEMENT 
  

 
  

ROYAL BANK OF CANADA 
 Co-Lead Arranger and Sole Bookrunner 
 BMO CAPITAL MARKETS and TD SECURITIES 

Co-Lead Arrangers 

BANK OF MONTREAL and THE TORONTO-DOMINION BANK 

Co-Syndication Agents 

BANK OF AMERICA MERRILL LYNCH, CANADIAN IMPERIAL BANK OF COMMERCE, THE BANK OF NOVA SCOTIA and NATIONAL BANK OF
CANADA 
 Co-Documentation Agents 

Dated for reference November 2, 2012 
  

 

	*	(Conformed to include the First Amendment dated as of December 17, 2012, the Second Amendment dated as of May 14, 2014, the Third Amendment dated as of May 1, 2015, the Fourth Amendment dated as of
September 16, 2016, and the Fifth Amendment dated as of September 16, 2016.) 

  
 1 

 TABLE OF CONTENTS 

 

							
	 Article 1 INTERPRETATION
	  	 	8	 
			
	 1.1
	 	Defined Terms	  	 	8	 
			
	 1.2
	 	Computation of Time Periods	  	 	38	 
			
	 1.3
	 	Accounting Terms	  	 	38	 
			
	 1.4
	 	Incorporation of Schedules	  	 	40	 
			
	 1.5
	 	Gender; Singular, Plural, etc.	  	 	40	 
			
	 1.6
	 	Use of Certain Words	  	 	40	 
			
	 1.7
	 	Successors, etc.	  	 	40	 
			
	 1.8
	 	Interpretation not Affected by Headings, etc.	  	 	40	 
			
	 1.9
	 	General Provisions as to Certificates and Opinions, etc.	  	 	41	 
			
	 1.10
	 	Existing Accommodations	  	 	41	 
		
	 Article 2 THE CREDIT FACILITIES
	  	 	41	 
			
	 2.1
	 	Credit Facilities	  	 	41	 
			
	 2.2
	 	Repayment	  	 	46	 
			
	 2.3
	 	Mandatory Reductions and Prepayments	  	 	47	 
			
	 2.4
	 	Voluntary Reductions and Prepayments	  	 	49	 
			
	 2.5
	 	Payments	  	 	49	 
			
	 2.6
	 	Computations	  	 	51	 
			
	 2.7
	 	Fees	  	 	51	 
			
	 2.8
	 	Interest on Overdue Amounts	  	 	52	 
			
	 2.9
	 	Where Borrower Fails to Pay	  	 	52	 
			
	 2.10
	 	Account Debit Authorization	  	 	52	 
			
	 2.11
	 	Administrative Agent’s Discretion on Allocation	  	 	52	 
			
	 2.12
	 	Rollover and Conversion	  	 	53	 
			
	 2.13
	 	Extensions of Final Maturity Date	  	 	54	 
		
	 Article 3 ADVANCES
	  	 	54	 

  
 2 

							
			
	 3.1
	 	Advances	  	 	55	 
			
	 3.2
	 	Making the Advances	  	 	55	 
			
	 3.3
	 	Interest on Advances	  	 	56	 
		
	 Article 4 BANKERS’ ACCEPTANCES
	  	 	57	 
			
	 4.1
	 	Acceptances	  	 	57	 
			
	 4.2
	 	Drawdown Request	  	 	58	 
			
	 4.3
	 	Form of Bankers’ Acceptances	  	 	58	 
			
	 4.4
	 	Completion of Bankers’ Acceptance	  	 	59	 
			
	 4.5
	 	Proceeds	  	 	59	 
			
	 4.6
	 	Stamping Fee	  	 	59	 
			
	 4.7
	 	Payment at Maturity	  	 	59	 
			
	 4.8
	 	Power of Attorney Respecting Bankers’ Acceptances	  	 	59	 
			
	 4.9
	 	Prepayments	  	 	60	 
			
	 4.10
	 	Default	  	 	60	 
			
	 4.11
	 	Non-Acceptance Lenders	  	 	60	 
		
	 Article 5 LETTERS OF CREDIT
	  	 	61	 
			
	 5.1
	 	Letters of Credit Commitment	  	 	61	 
			
	 5.2
	 	Letters of Credit	  	 	61	 
			
	 5.3
	 	[not used]	  	 	61	 
			
	 5.4
	 	Notice of Issuance	  	 	61	 
			
	 5.5
	 	Form of Letter of Credit	  	 	62	 
			
	 5.6
	 	Procedure for Issuance of Letters of Credit	  	 	62	 
			
	 5.7
	 	Payment of Amounts Drawn Under Letters of Credit	  	 	62	 
			
	 5.8
	 	Fees	  	 	63	 
			
	 5.9
	 	Obligations Absolute	  	 	64	 
			
	 5.10
	 	Indemnification; Nature of Lenders’ Duties	  	 	64	 
			
	 5.11
	 	Default, Maturity	  	 	66	 
		
	 Article 6 CLOSING CONDITIONS
	  	 	66	 

  
 3 

							
			
	 6.1
	 	Closing Conditions to Initial Availability	  	 	66	 
			
	 6.2
	 	General Conditions for Accommodations	  	 	69	 
			
	 6.3
	 	Conversions and Rollovers	  	 	70	 
			
	 6.4
	 	Deemed Representation	  	 	70	 
			
	 6.5
	 	Conditions Solely for the Benefit of the Lenders	  	 	70	 
			
	 6.6
	 	No Waiver	  	 	70	 
			
	 6.7
	 	Final Date for Initial Accommodation	  	 	70	 
		
	 Article 7 REPRESENTATIONS AND WARRANTIES
	  	 	70	 
			
	 7.1
	 	Existence	  	 	70	 
			
	 7.2
	 	Corporate Authority	  	 	71	 
			
	 7.3
	 	Authorization, Governmental Approvals, etc.	  	 	71	 
			
	 7.4
	 	Enforceability	  	 	71	 
			
	 7.5
	 	No Breach	  	 	71	 
			
	 7.6
	 	Litigation	  	 	72	 
			
	 7.7
	 	Subsidiaries	  	 	72	 
			
	 7.8
	 	Compliance	  	 	72	 
			
	 7.9
	 	No Default	  	 	72	 
			
	 7.10
	 	Material Contracts	  	 	72	 
			
	 7.11
	 	Permits	  	 	72	 
			
	 7.12
	 	Ownership of Assets	  	 	73	 
			
	 7.13
	 	Tax Returns	  	 	73	 
			
	 7.14
	 	Financial Statements	  	 	73	 
			
	 7.15
	 	Expropriation	  	 	73	 
			
	 7.16
	 	MAE	  	 	73	 
			
	 7.17
	 	Disclosure	  	 	73	 
			
	 7.18
	 	ERISA	  	 	74	 
			
	 7.19
	 	Investment Company Status	  	 	74	 
			
	 7.20
	 	Federal Reserve Regulations	  	 	74	 

  
 4 

							
			
	 7.21
	 	Sanctioned Persons	  	 	74	 
			
	 7.22
	 	PATRIOT Act	  	 	74	 
			
	 7.23
	 	Ranking of Obligations	  	 	75	 
		
	 Article 8 SECURITY
	  	 	75	 
			
	 8.1
	 	Security	  	 	75	 
			
	 8.2
	 	Designation	  	 	76	 
			
	 8.3
	 	Share Pledges	  	 	77	 
			
	 8.4
	 	Material Real Property	  	 	77	 
			
	 8.5
	 	Continued Perfection of Security	  	 	77	 
			
	 8.6
	 	Essential Assets	  	 	77	 
			
	 8.7
	 	Exclusions	  	 	78	 
			
	 8.8
	 	Release of Security	  	 	79	 
			
	 8.9
	 	Excluded Swap Obligations	  	 	81	 
		
	 Article 9 INSURANCE
	  	 	82	 
			
	 9.1
	 	Insurance	  	 	82	 
			
	 9.2
	 	Policies	  	 	82	 
			
	 9.3
	 	Evidence	  	 	82	 
			
	 9.4
	 	Payment of Premiums	  	 	82	 
		
	 Article 10 COVENANTS
	  	 	82	 
			
	 10.1
	 	Affirmative Covenants	  	 	82	 
			
	 10.2
	 	Negative Covenants	  	 	89	 
			
	 10.3
	 	Classified Reorganization	  	 	94	 
			
	 10.4
	 	Administrative Agent May Perform Covenants	  	 	94	 
		
	 Article 11 CHANGES IN CIRCUMSTANCES
	  	 	94	 
			
	 11.1
	 	Illegality	  	 	94	 
			
	 11.2
	 	Circumstances Requiring Different Pricing	  	 	94	 
			
	 11.3
	 	Ibid	  	 	95	 
			
	 11.4
	 	Increased Costs	  	 	96	 

  
 5 

							
			
	 11.5
	 	Indemnification	  	 	96	 
			
	 11.6
	 	Taxes, Costs, etc.	  	 	97	 
			
	 11.7
	 	Affected Lender	  	 	99	 
		
	 Article 12 EVENTS OF DEFAULT
	  	 	100	 
			
	 12.1
	 	Events of Default	  	 	100	 
			
	 12.2
	 	Effect	  	 	103	 
			
	 12.3
	 	Right of Set-Off	  	 	103	 
			
	 12.4
	 	Currency Conversion After Acceleration	  	 	104	 
		
	 Article 13 THE ADMINISTRATIVE AGENT AND THE LENDERS
	  	 	104	 
			
	 13.1
	 	Authorization and Action	  	 	104	 
			
	 13.2
	 	Duties and Obligations	  	 	104	 
			
	 13.3
	 	Administrative Agent and Affiliates	  	 	106	 
			
	 13.4
	 	Lender Credit Decision	  	 	106	 
			
	 13.5
	 	Indemnifications	  	 	106	 
			
	 13.6
	 	Successor Administrative Agent	  	 	107	 
			
	 13.7
	 	Sub-Agent or Co-Agent	  	 	107	 
			
	 13.8
	 	Assignment of Documents	  	 	107	 
			
	 13.9
	 	Collective Action of the Lenders	  	 	107	 
			
	 13.10
	 	No Other Duties, etc.	  	 	108	 
		
	 Article 14 MISCELLANEOUS
	  	 	108	 
			
	 14.1
	 	Sharing of Payments; Records	  	 	108	 
			
	 14.2
	 	Amendments, etc.	  	 	110	 
			
	 14.3
	 	Notices, etc.	  	 	112	 
			
	 14.4
	 	No Waiver; Remedies	  	 	114	 
			
	 14.5
	 	Expenses	  	 	114	 
			
	 14.6
	 	Judgment Currency	  	 	115	 
			
	 14.7
	 	Governing Law	  	 	115	 
			
	 14.8
	 	Successors and Assigns	  	 	116	 

  
 6 

							
	 14.9
	 	Conflict	  	 	117	 
			
	 14.10
	 	Confidentiality	  	 	118	 
			
	 14.11
	 	FOCI	  	 	119	 
			
	 14.12
	 	Severability	  	 	119	 
			
	 14.13
	 	Prior Understandings	  	 	119	 
			
	 14.14
	 	Time of Essence	  	 	119	 
			
	 14.15
	 	Counterparts	  	 	119	 
			
	 14.16
	 	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	  	 	119	 

 SCHEDULES 
  

			
	 1.
	 	Commitments
	 2.
	 	Accommodation Request
	 3.
	 	Certain Permitted Liens
	 4.
	 	Corporate Structure
	 5.
	 	Applicable Margin
	 6.
	 	Notice of Reduction
	 7.
	 	Existing Accommodations
	 8.
	 	Required Approvals, etc.
	 9.
	 	 Designated Subsidiaries

  
 7 

 This credit agreement is dated for reference November 2, 2012 

AMONG: 
 MACDONALD, DETTWILER AND ASSOCIATES
LTD., 
 as Borrower 
 OF THE
FIRST PART 
 AND: 
 ROYAL BANK OF
CANADA, 
 as Administrative Agent 

OF THE SECOND PART 
 AND: 

THOSE INSTITUTIONS WHOSE NAMES ARE SET FORTH ON THE EXECUTION PAGES HEREOF UNDER THE HEADING “LENDERS”, 

as Lenders 
 OF THE THIRD PART 

WHEREAS the Borrower has requested that the Lenders make available to it various credit facilities, and the Lenders have agreed to do so on the terms and
conditions set forth in this credit agreement; 
 NOW THEREFORE in consideration of the mutual covenants and agreements herein set forth and other good and
valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, the parties agree as follows: 
 Article 1

 INTERPRETATION 
  

	1.1	Defined Terms. 

 As used in this agreement, including the recitals and the schedules, unless there is
something in the subject matter or the context inconsistent therewith, the following terms shall have the following meanings: 

“Accommodation” means: 
  

	 	(a)	an Advance by a Lender made on the occasion of a Borrowing pursuant to an Accommodation Request (whether given or deemed to be given) or otherwise made or deemed to have been made pursuant hereto; 

 

	 	(b)	the creation of Bankers’ Acceptances on the occasion of a Drawing (or the making of a BA Equivalent Loan) pursuant to an Accommodation Request; and 

 

	 	(c)	the issue of a Letter of Credit on the occasion of an Issuance pursuant to an Issue Notice; 

  
 8 

 and includes an Advance and a Bankers’ Acceptance resulting from a Rollover or Conversion (whether requested
or deemed to have been requested hereunder) or otherwise effected pursuant hereto. Each type of Borrowing and each type of Issuance is a “type” of Accommodation, as are Bankers’ Acceptances. 

“Accommodation Request” means a notice of request for a Borrowing and/or a Drawing substantially in the form of schedule 2 annexed
hereto, or such other form as the Administrative Agent may from time to time specify. 
 “Acquired Business” means the satellites, space
systems and space system components designing and manufacturing business of SS/L and its subsidiaries. 
 “Acquired Real Property” means
the “Transferred Land” as defined in the Purchase Agreement. 
 “Acquired Securities” means: 

 

	 	(a)	all of the outstanding equity interests in Land LLC; and 

  

	 	(b)	all of the outstanding equity interests in SS/L. 

 “Acquisition” means: 

 

	 	(a)	the acquisition by the Borrower of all of the outstanding equity interests in Land LLC; and 

  

	 	(b)	the acquisition by MDA Holdings of all of the outstanding equity interests in SS/L; 

 in each case pursuant to
the Purchase Agreement, and the subsequent transfer of Land LLC by the Borrower to MDA Holdings, and as a result of which the corporate structure of the Borrower and its relevant subsidiaries shall be as set forth in schedule 4 annexed hereto. 

“Acquisition Closing” shall mean the “Closing” as defined in the Purchase Agreement. 

“Adjusted EBITDA” means, for the Borrower on a consolidated basis and without duplication, EBITDA decreased by the sum of: 

 

	 	(a)	maintenance capital expenditures actually made during such period, excluding any portion thereof financed by Debt (including by Capital Lease) and net of government grants in respect thereof; 

 

	 	(b)	Mandatory Pension Payments during such period; and 

  

	 	(c)	cash Taxes accrued and paid or payable during such period. 

 “Administrative Agent” means
Royal Bank and any successor administrative agent appointed in accordance with Article 13. 
 “Advance” means an advance of monies
(other than and excluding Discount Proceeds) made or deemed to have been made by a Lender under a Credit Facility and includes an Advance resulting from a Conversion or Rollover (whether requested or deemed to have been requested hereunder) or
otherwise effected pursuant hereto. An Advance may be denominated in US Dollars or Canadian Dollars. An Advance in: 
  

	 	(d)	Canadian Dollars shall be designated from time to time, as requested or deemed to have been requested by the Borrower, a “Prime Rate Advance” or a “CDOR Rate Advance”; and

  
 9 

	 	(e)	US Dollars shall be designated from time to time, as requested or deemed to have been requested by the Borrower, a “US LIBOR Advance” or a “Base Rate Advance”. 

Each of a Prime Rate Advance, a CDOR Rate Advance, a Base Rate Advance and a US LIBOR Advance is a “type” of Advance. 

“affiliate” means, with respect to any person (the “first person”), any other person which directly or indirectly controls
(or is a member of a group which directly or indirectly controls), or is under common control with, or is controlled by, the first person. Notwithstanding the foregoing, neither the Administrative Agent nor any Lender shall be deemed to be an
affiliate of the Borrower solely by reason of its agency role or lending relationship. 
 “Applicable Margin” means, in respect of a type
of Borrowing and in respect of Drawings and fees, the corresponding margin or fee (expressed as basis points (0.01 %) per annum) set forth in schedule 5 annexed hereto. 

“Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales, leases, transfers or dispositions) of
property or other assets by or on behalf of an MDA Party or MDA Pledgor (including any such sale, lease, transfer or other disposition by means of a merger, consolidation or similar transaction, but for greater certainty excluding a write-down of
assets), and for greater certainty including an Asset Securitization. 
 “Asset Securitization” means an Asset Disposition by or on behalf
of a person at the election of such person involving receivables and/or other assets in the course of an asset securitization transaction and regardless of the form of asset securitization, and for the purposes of this credit agreement shall include
any disposition of accounts receivable. 
 “Assignee” shall have the meaning ascribed thereto in section 14.8(4). 

“Available Cash Flow” means, for any period, in respect of the Borrower on a consolidated basis and without duplication, EBITDA decreased by
the sum of: 
  

	 	(a)	voluntary and scheduled principal repayments of Debt (but excluding (i) such payments to the extent they are financed with the proceeds of Debt or equity permitted hereunder, and (ii) voluntary repayments in
connection with the Credit Facilities, the Prudential Notes and the 2012 Notes); 

  

	 	(b)	maintenance capital expenditures actually made during such period, excluding any portion thereof financed by Debt (including by Capital Lease) and net of government grants in respect thereof; 

 

	 	(c)	scheduled payments in respect of Capital Leases paid during such period to the extent not included in (a) above; 

  

	 	(d)	Interest Expense accrued and paid or payable during such period; 

  

	 	(e)	cash Taxes accrued and paid or payable during such period; and 

  

	 	(f)	Mandatory Pension Payments during such period. 

 “BA Equivalent Loan” means, in relation to a
Drawing, a loan in Canadian Dollars made to the Borrower by a Non-Acceptance Lender as part of the Drawing in accordance with the provisions of section 4.11. 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA
Resolution Authority in respect of any liability of an EEA Financial Institution. 

  
 10 

 “Bail-In Legislation” means, with respect to any EEA
Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. 
 “Bankers’ Acceptance” means a depository bill as defined by the
Depository Bills and Notes Act (Canada), or a non-interest bearing bill of exchange as defined in the Bills of Exchange Act (Canada), in either case drawn by the Borrower, denominated in Canadian
Dollars and accepted by a Lender as a bankers’ acceptance, as evidenced by such Lender’s endorsement thereof at the request of the Borrower pursuant to an Accommodation Request and includes a Bankers’ Acceptance resulting from a
Conversion or Rollover. 
 “Base Rate” means, on any day, the greatest of: 

 

	 	(a)	the rate of interest per annum established from time to time by Royal Bank as the reference rate of interest for the determination of interest rates that Royal Bank will charge for commercial loans in US Dollars in
Canada; 

  

	 	(b)	the rate of interest per annum for such day or, if such day is not a Business Day, on the immediately preceding Business Day, equal to the sum of (i) the Federal Funds Effective Rate multiplied by 365 (or 366) and
divided by 360, plus (ii) 75 basis points per annum; and 

  

	 	(c)	US LIBOR on such day for a period of one month plus 75 basis points per annum 

 as to which a certificate of
the Administrative Agent, absent manifest error, shall be conclusive evidence from time to time. With each quoted or published change in such rate aforesaid of Royal Bank or the Federal Funds Effective Rate, there shall be a corresponding change in
any rate of interest payable under this agreement based on the Base Rate in accordance with the calculation above, all without the necessity of any notice thereof to the Borrower or any other person. 

“Beneficiary” means, in respect of any Letter of Credit, the beneficiary specified therein. 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America. 

“Borrower” means MacDonald, Dettwiler and Associates Ltd., a corporation incorporated under the Canada Business Corporations Act. 

“Borrowing” means a borrowing consisting of the making of one or more Advances. The making of Prime Rate Advances, CDOR Rate Advances, Base
Rate Advances and US LIBOR Advances are each a “type” of Borrowing. 
 “Business Day” means: 

 

	 	(a)	in respect of Base Rate Advances and payments in connection therewith, a day (other than Saturday or Sunday) on which banks are open for business in New York City, Toronto and Vancouver; 

 

	 	(b)	in respect of US LIBOR Advances and payments in connection therewith, a day (other than Saturday or Sunday) which is a day for trading by and between banks in deposits in the London interbank market and which is also a
day on which banks are open for business in New York City, Vancouver and Toronto; and 

  

	 	(c)	for all other purposes of this agreement, a day (other than Saturday or Sunday) on which banks are open for business in Vancouver and Toronto. 

  
 11 

 “Canadian Dollars” and “C$” each mean lawful money of Canada. 

“Canadian Dollar Exchange Rate” means, on a particular date, the rate at which Canadian Dollars may be converted into US Dollars at the Bank
of Canada’s noon spot rate (or, if such rate is not available, such other rate as the Administrative Agent may reasonably determine) on that date (or, if that date is not a Business Day, on the immediately preceding Business Day). 

“Capital Lease” means a lease of (or other agreement conveying the right to use) real and/or personal property, which lease is required to be
classified and accounted for as a capital lease on a balance sheet of the lessee under IFRS, but excluding any operating leases required to be reclassified as capital leases in accordance with any changes to IFRS after the Closing Date. 

“Capital Lease Obligations” means, as to any person, the obligations of such person to pay rent or other amounts under a Capital Lease and,
for purposes of this agreement, the amount of such obligations shall be the capitalized amount thereof (that is, the amount in effect corresponding to the principal of such obligations), determined in accordance with IFRS. 

“Cash Management Obligations” means all present and future indebtedness and other liabilities and obligations, whether contingent or
absolute, matured or unmatured, at any time or from time to time due or accruing due and owing by or otherwise payable by the Borrower or a subsidiary (whether alone or with another or others and whether as principal or surety) under (i) any
cash management, cash aggregation, mirror or concentrator account, zero-balance or similar facility or arrangement entered into with any Lender, or (ii) any corporate credit card or similar facilities
provided by any Lender. 
 “CDOR Rate” means, on any day, the annual rate of interest determined by the Administrative Agent which is equal
to the average of the yield rates per annum (calculated on the basis for a year of 365 days) applicable to Canadian Dollar bankers’ acceptances having, where applicable, identical issue and comparable maturity dates as the proposed
Bankers’ Acceptances or CDOR Rate Advance displayed and identified as such on the “CDOR Page” (or any display substituted therefor) of Reuters Monitor Money Rates Service at approximately 10:00 a.m. (Toronto time) on that day or, if
that day is not a Business Day, then on the immediately preceding Business Day (as adjusted by the Administrative Agent after 10:00 a.m. (Toronto time) to reflect any error in a posted rate of interest or in the posted average annual rate of
interest); provided, however, if those rates do not appear on that CDOR Page, then the CDOR Rate shall be the discount rate (expressed as a rate per annum on the basis of a year of 365 days) applicable to those Canadian Dollar bankers’
acceptances in a comparable amount to the proposed Bankers’ Acceptances or CDOR Rate Advance quoted by the Administrative Agent as of 10:00 a.m. (Toronto time) on that day or, if that day is not a Business Day, then on the immediately preceding
Business Day; provided further that if such rate determined above is less than zero, then such rate shall be deemed to be zero. With respect to that portion of a proposed CDOR Rate Advance being funded by a Lender that is not a bank under Schedule I
to the Bank Act (Canada), the CDOR Rate will be the lesser of (i) the CDOR Rate (as determined above) plus one-tenth of one (1/10%) percent; and (ii) the annual rate, expressed as a percentage,
determined by the Administrative Agent (on the basis of quotations provided to the Administrative Agent by the Reference Lenders) as the average discount rate for bankers’ acceptances having a comparable face value and a comparable issue and
maturity date to the face value and issue and maturity date of that CDOR Rate Advance calculated on the basis of a year of 365 days, accepted by the Reference Lenders at or about 10:00 a.m. (Toronto time) on the funding date of that CDOR Rate
Advance. Each determination of the CDOR Rate shall be conclusive and binding, absent manifest error. 
 “Change in Control” means the
acquisition by any person or a combination of persons acting jointly or in concert of beneficial ownership of more than 50% of the shares, interests (partnership, joint venture or otherwise), participations or other equivalents (however designated)
in the equity of the Borrower, whether now outstanding or issued after the date hereof, having ordinary voting power for the election of the directors of the Borrower (other than the creation of a holding company or similar transaction that does not
involve a change in the beneficial ownership of the Borrower as a result of such transaction). 

  
 12 

 “Change in Law” means: 
  

	 	(a)	the adoption of any law, rule or regulation or an interpretation or application thereof by any Official Body after the Closing Date; 

 

	 	(b)	any change in law, rule or regulation or in the interpretation or application thereof by any Official Body after the Closing Date; or 

 

	 	(c)	compliance by any Lender with any written request, guideline or directive (whether or not having the force of law but if not having the force of law being of a type with which persons to whom it is directed are
accustomed to comply) of any Official Body made or issued after the Closing Date (other than any such request, guideline or directive to comply with any law, rule or regulation that was in effect on the Closing Date); 

provided that notwithstanding anything herein to the contrary (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all rules,
guidelines or directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all rules, guidelines and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision
(or any successor or similar authority) or Canadian or foreign regulatory authorities and applicable to the Lenders, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented
(other than any such request, guideline or directive to comply with any law, rule or regulation that was in effect on the Closing Date). 

“Classified Reorganization” means the transfer by SS/L to a newly-formed corporate subsidiary of the Borrower of certain assets with a book
value of not more than US$15 million as are required to be transferred to the newly-formed corporation in accordance with foreign ownership, control or influence mitigation or negation arrangements to be entered into between SS/L and the United
States Department of Defense pursuant to the Foreign Ownership, Control or Influence Requirements in exchange for equity and/or intercompany indebtedness. 

“Closing Date” means the date upon which the initial Accommodation shall be available under this agreement following satisfaction of all
conditions herein set forth. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time. 
 “Collateral” means the present and future assets and properties of the MDA Parties and MDA
Pledgors from time to time subject to, or intended by the terms of the Security to be subject to, the Liens of the Security. 
 “Collateral
Agent” means Royal Bank acting as Collateral Agent under and as defined in the Intercreditor Agreement, or any successor Collateral Agent thereunder. 

“Commitment” means, for a Lender in respect of a Credit Facility, the amount in respect of such Credit Facility set forth opposite such
Lender’s name under the heading “Commitment” on schedule 1 annexed hereto or in any applicable assignment pursuant to which such Lender became party hereto or acquired or sold any interests hereunder, in each case to the extent not
permanently reduced, cancelled or terminated pursuant to this agreement. 
 “Commodity Exchange Act” means the Commodity Exchange Act (7
U.S.C. § 1 et seq.), as amended from time to time, and any successor statute. 
 “Consolidated Debt” means, at the end of a Financial
Quarter and as determined in accordance with IFRS on a consolidated basis (but excluding all Debt of Non-Recourse Subsidiaries) for the Borrower, all Debt but specifically excluding: 

  
 13 

	 	(a)	any Debt (up to an aggregate maximum amount of US$100 million or the Equivalent Amount in other currencies) in connection with letters of credit guaranteed or insured by EDC where such Debt is not yet due or owing
and such letters of credit have been issued as assurance of performance or obligations (except other Debt) in the ordinary course of business; 

  

	 	(b)	in the case of a Special Subsidiary, the entire portion of such Debt in excess of the relevant Special Subsidiary Percentage; 

  

	 	(c)	Convertible Debentures; 

  

	 	(d)	Debt owed to a government that is a member of the OECD, or any agency of such government, where the obligations of the Borrower or its relevant subsidiary can be satisfied, at the option of the Borrower or such
subsidiary, by delivering common shares of the Borrower in accordance with the agreement governing such Debt (whether such common shares are received by the holder of such Debt as payment or are sold under such agreement to provide cash for payment
to the holder of such Debt); provided that the aggregate principal amount of such Debt shall not at any time exceed US$50 million or the Equivalent Amount in other currencies; and 

 

	 	(e)	in the event that the Land Note Letter of Guarantee is guaranteed or insured by EDC, that portion of the Land Note Letter of Guarantee in excess of the principal amount of the Land Note; 

provided that, for the purpose of calculating Consolidated Debt, non-recourse Debt shall be the lesser of (i) the
fair market value of all property subject to a Lien securing such non-recourse Debt (as demonstrated to the Lenders’ reasonable satisfaction), and (ii) the amount of the obligations comprising such non-recourse Debt. 
 “control” of a person (including, with correlative meanings, “controlled
by” and “under common control with”) shall mean possession, directly or indirectly, of the power to direct or cause the direction of management or policies of such person (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise); provided that, in any event and without limitation, any person or group of persons acting together which owns directly or indirectly more than 50% of the securities having ordinary
voting power for the election of directors or other governing body of a corporation or more than 50% of the partnership or other ownership interests of any other person will be deemed to control such corporation or other person. The terms
“controlling” and “controlled” have meanings correlative thereto. 
 “Conversion” means, in respect of
any Drawing or type of Borrowing, the conversion of the method for calculating interest, discount rates or fees thereon from one method to another in accordance with section 2.12, and includes a conversion (i) from a Prime Rate Advance to a
CDOR Rate Advance, and vice-versa, (ii) from a Prime Rate Advance or a CDOR Rate Advance to a Drawing, and vice-versa, and (iii) from a US LIBOR Advance to a Base Rate Advance, and vice-versa. In addition, the
repayment in full by the Borrower of the Principal Outstanding under an Accommodation under the Revolving Facility in one currency and the concurrent making of an Accommodation under the Revolving Facility in another currency, whereby the aggregate
US Dollar Equivalent Principal Outstanding remains the same before and after such transactions, shall also be considered to be a Conversion for all purposes of this agreement. 

“Convertible Debentures” means any convertible subordinated debentures or notes created, issued or assumed by the Borrower which have all of
the following characteristics: 

  
 14 

	 	(a)	an initial final maturity or due date in respect of repayment of principal extending beyond the Final Maturity Date in effect at the time such debentures or notes are created, issued or assumed; 

 

	 	(b)	no scheduled or mandatory payment or repurchase of principal thereunder (other than as a result of an acceleration following an event of default in regard thereto or payment which can be satisfied by the delivery of
common shares of the Borrower as contemplated in paragraph (e) of this definition and other than on a change of control of the Borrower where a Change in Control also occurs) prior to the Final Maturity Date in effect at the time such
debentures or notes are created, issued or assumed; 

  

	 	(c)	upon and during the continuance of a Default, an Event of Default or acceleration of any obligations under any Credit Facility Document which has not been rescinded, (i) all amounts payable in respect of principal,
premium (if any) or interest under such debentures or notes are subordinate and junior in right of payment to all such obligations under the Credit Facility Documents and no payments shall be made under such debentures or notes, and (ii) no
enforcement steps or enforcement proceedings may be commenced in respect of such debentures or notes; 

  

	 	(d)	upon distribution of the assets of the Borrower on any dissolution, winding up, liquidation or reorganization of the Borrower (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the
benefit of creditors or any other marshalling of the assets and liabilities of such person, or otherwise), all obligations under the Credit Facility Documents shall first be paid in full, or provision made for such payment, before any payment is
made on account of principal, premium (if any) or interest payable in regard to such debentures or notes; 

  

	 	(e)	so long as no default has occurred in respect of such debentures or notes and provided the Borrower is in compliance with all applicable securities Laws and such common shares are qualified for distribution as required
and listed on the Toronto Stock Exchange or another national securities exchange, then any and all payments of interest and principal due and payable under such debentures or notes can be satisfied, at the option of the Borrower, by delivering
common shares in accordance with the indenture or agreement governing such debentures or notes (whether such common shares are received by the holders of such debentures or notes as payment or are sold by a trustee or representative under such
indenture or agreement to provide cash for payment to holders of such debentures or notes); 

  

	 	(f)	the occurrence of a Default or Event of Default or the acceleration of any obligations under any Credit Facility Document, or the enforcement of the rights and remedies of the Administrative Agent and the Lenders under
any Credit Facility Document, shall not by reason of specific reference to the Credit Agreement (i) cause a default or event of default (with the passage of time or otherwise) under such debentures or notes or any indenture governing same, or
(ii) cause or permit the obligations under such debentures or notes to be due and payable prior to the stated maturity thereof (provided such debentures or notes may provide for a cross-acceleration where such cross-acceleration is by reference
to a minimum principal amount of indebtedness); and 

  

	 	(g)	the Borrower and any trustee under any indenture governing such debentures or notes shall enter into or have entered into an agreement with the Administrative Agent on behalf of the Lenders, inter alia, to
confirm the right of the Administrative Agent and the Lenders to rely upon and enforce such subordination, on terms and conditions satisfactory to the Administrative Agent, acting reasonably. 

“Credit Facility” means, as the context requires, the Revolving Facility or the Term Facility, and “Credit Facilities”
means, as the context requires, both of the said facilities. 

  
 15 

 “Credit Facility Documents” means this agreement, the Security, the Bankers’ Acceptances,
the Letters of Credit issued hereunder, the Intercreditor Agreement and all other documents necessary to implement the financings comprised in the Credit Facilities. 

“DACA Account” means a bank account held by a Designated Subsidiary in the United States, in respect of which account such Designated
Subsidiary has provided to the Collateral Agent a deposit account control agreement perfecting the Lien of the Security over such account in form and substance satisfactory to the Collateral Agent, acting reasonably. 

“Debenture” means a demand debenture made by an MDA Party in favour of the Collateral Agent granting a first-priority (subject only to
Permitted Liens) mortgage and charge over all real property interests of such MDA Party and, where such MDA Party would otherwise also have granted a GSA, the security interests to be granted in a GSA; provided that, with respect to Collateral
located in the United States, the Borrower shall provide in lieu of a demand debenture a mortgage, charge, deed of trust or other similar agreement in such form as shall reasonably be requested by the Collateral Agent. 

“Debt” of any person means (without duplication, all as calculated in accordance with IFRS, and whether with or without recourse): 

 

	 	(a)	all indebtedness of such person for borrowed money, including obligations with respect to bankers’ acceptances and Hedging Instruments (including the Land Note); 

 

	 	(b)	all indebtedness of such person for contingent reimbursement obligations with respect to Hedging Instruments, letters of credit, letters of guarantee and surety bonds; provided that Debt shall not include
(i) unsecured surety bonds in respect of which at the relevant time no claim has been or may be made against the applicant, or (ii) cash-collateralized (but otherwise unsecured) surety bonds; 

 

	 	(c)	all indebtedness of such person for the deferred purchase price of property or services, other than: 

  

	 	(i)	trade indebtedness on commercially reasonable terms accounted for as accounts payable or deferred revenue; 

  

	 	(ii)	commercially reasonable payment terms intended to reflect the commercial interests of contracting parties as opposed to the granting of credit; 

 

	 	(d)	each as incurred in the ordinary course of business, net of prepayments for the foregoing; and 

  

	 	(i)	contingent payments as consideration for the acquisition of or investment in any business (whether involving shares, assets or otherwise), where the condition of payment is tied directly to the performance of the
relevant business and only for such period as such condition has not been met; provided that (A) any obligation for such contingent payment in excess of 20% of the aggregate purchase price for or investment in such business shall be considered
to be Debt whether or not such condition has been met, and (B) to the extent that the aggregate of all such obligations for such contingent payments shall exceed US$50 million, such excess shall be considered to be Debt; 

 

	 	(e)	all indebtedness created or arising under any Purchase Money Mortgages (including indebtedness in respect of which the rights and remedies of the seller or lender thereunder in the event of default are limited to
repossession or sale of the purchased property, in which case the amount attributed to Debt shall be the lesser of such indebtedness and the fair market value of the property to which recourse is limited); 

  
 16 

	 	(f)	all Capital Lease Obligations; 

  

	 	(g)	the amount for which any shares or other equity interests in the capital of any such person that is a corporation or other entity may be redeemed if the holders of such shares are entitled at such time to require such
person to redeem such shares or other equity interests, or if such person is otherwise obligated at such time to redeem such shares or other equity interests, in each case whether on notice or otherwise (excluding any amounts so attributable to
shares or other equity interests held by the Borrower or a subsidiary of the Borrower); and 

  

	 	(h)	the maximum amount which may be outstanding at any time of all Debt of the kinds referred to in (a) through (f) which is directly or indirectly guaranteed by such person or which such person has agreed
(contingently or otherwise) to purchase or otherwise acquire, or in respect of which such person has otherwise assured a creditor against loss by means of an indemnity, security or bond (whether or not such person has assumed or become liable for
the payment of such Debt); 

 provided that an obligation or liability under a Hedging Instrument shall constitute Debt only to the extent
that it comprises an actual payment obligation under such Hedging Instrument, calculated having regard to any applicable netting provisions of such Hedging Instrument; provided further that, for greater certainty, only the greater of (i) the
liability of the Borrower under the Land Note, and (ii) the liability of the Borrower under the Land Note Letter of Guarantee, will be counted in determining Debt. 

“Default” means an event which, with the giving of notice or passage of time, or both, would constitute an Event of Default. 

“Designated Subsidiary” means: 
  

	 	(a)	each of the persons set forth in schedule 9 annexed hereto; 

  

	 	(b)	following the Acquisition, SS/L and Land LLC; and 

  

	 	(c)	each other Wholly-Owned Subsidiary that may from time to time be designated as a Designated Subsidiary in accordance with section 8.2; 

in each case until such person shall be removed as a Designated Subsidiary in accordance with section 8.2(a). 

“Discount Proceeds” means, in respect of Bankers’ Acceptances to be purchased by a Lender, the difference between; 

 

	 	(a)	the result (rounded to the nearest whole cent, with one half of one cent being rounded up) obtained by multiplying the aggregate Face Amount of such Bankers’ Acceptances by a price (rounded up or down to the fifth
decimal place, with .000005 being rounded-up) determined by dividing one by the sum of one plus the product of (i) the applicable Discount Rate multiplied by (ii) a fraction, the numerator of which
is the number of days in the term to maturity of such Bankers’ Acceptances and the denominator of which is 365; and 

  

	 	(b)	the applicable fees to be paid to such Lender under section 4.6. 

 “Discount Rate” means: 

 

	 	(a)	with respect to an issue of Bankers’ Acceptances accepted by a Lender that is a bank under Schedule I to the Bank Act (Canada), the CDOR Rate; and 

  
 17 

	 	(b)	with respect to an issue of Bankers’ Acceptances accepted by a Lender that is not a bank under Schedule I to the Bank Act (Canada), the lesser of: 

 

	 	(i)	the rate set out in paragraph (a) above plus one-tenth of one (1/10%) percent; and 

  

	 	(ii)	the annual rate, expressed as a percentage, determined by the Administrative Agent (on the basis of quotations provided to the Administrative Agent by the Reference Lenders) as the average discount rate for
bankers’ acceptances having a comparable face value and a comparable issue and maturity date to the face value and issue and maturity date of that issue of Bankers’ Acceptances calculated on the basis of a year of 365 days, accepted by the
Reference Lenders at or about 10:00 a.m. (Toronto time) on the date of issue of those Bankers’ Acceptances. 

“Distribution” means each of the following payments and other actions set forth below: 

 

	 	(a)	any dividend or any distribution of any kind or character (whether in cash, securities or other property) on account of any class of the Borrower’s shares or capital stock or any warrants, options or other rights
to acquire any shares or capital stock made or granted to the holders thereof (including any payment to shareholders in connection with a merger or consolidation involving the Borrower); 

 

	 	(b)	any purchase, repurchase, redemption, or other acquisition or retirement for value of the Borrower’s shares or capital stock or any warrants, options or other rights to acquire any such shares or capital stock);

  

	 	(c)	any principal payment on, or purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of any indebtedness of the Borrower to (i) a shareholder of the Borrower, or (ii) an affiliate
of a person described in item (i); 

  

	 	(d)	any consulting, licensing, management or administration fee or charge or any similar fee or charge paid or payable to (i) a shareholder of the Borrower, or (ii) an affiliate of a person described in item (i) (other
than any payment made in the ordinary course of business in respect of goods or services provided on terms and conditions no less favourable to the payor than would apply in a similar transaction entered into with an
arm’s-length party); 

  

	 	(e)	any loan to, or guarantee of the indebtedness of, or other financial assistance provided to, (i) any of the directors, officers or shareholders of the Borrower, or (ii) any affiliate of a person described in
(i); and 

  

	 	(f)	any loan to any affiliate of the Borrower other than a Designated Subsidiary (except that, for the purpose of the calculation of aggregate Distributions under section 10.2(9), such a loan will not be considered to be a
Distribution to the extent that it is no longer outstanding at the time of calculation); 

 provided that, for greater certainty, a
Distribution shall for purposes of this agreement be considered to have taken place at the time of the relevant payment or other action described above and not at the time the same is authorized. 

“Drawing” means the creation or making of one or more Bankers’ Acceptances pursuant to an Accommodation Request. 

  
 18 

 “Drawing Date” means any Business Day fixed in accordance with the provisions of this agreement
for a Drawing. 
 “EBITDA” means, for the Borrower on a consolidated basis (but excluding (i) all
Non-Recourse Subsidiaries, (ii) all unusual or non-recurring non-cash items as disclosed in the Borrower’s Management
Discussion and Analysis for regulatory reporting purposes, and (iii) in the case of a Special Subsidiary, the entire portion of EBITDA attributable to such Special Subsidiary in excess of the relevant Special Subsidiary Percentage), in respect
of any period and as determined in accordance with IFRS, net income for such period plus the following to the extent deducted in determining net income: 
  

	 	(a)	income tax expense; 

  

	 	(b)	Interest Expense; 

  

	 	(c)	depreciation and amortization; 

  

	 	(d)	foreign exchange gains or losses to the extent they relate to timing differences as a result of an effective economic hedging relationship not qualifying for hedge accounting under IFRS; and 

 

	 	(e)	all reserves, provisions or fair value losses established in such period to the extent that such reserves, provisions or fair value losses do not relate to: 

 

	 	(i)	a payment made, or which becomes payable, during such period; or 

  

	 	(ii)	a payment which is payable within 365 days from the end of such period; 

 provided that: 

 

	 	(f)	cash dividends received from Non-Recourse Subsidiaries shall be excluded from EBITDA to the extent that they would exceed 5% of EBITDA; and 

 

	 	(g)	with respect to such calculation for a period of 12 months with respect to an entity (in this definition, the “subject entity”) acquired (or divested) during such
12-month period, such calculation shall include (or deduct) the EBITDA attributable to the subject entity during such 12-month period as if such assets were owned
throughout such 12-month period (or disposed of immediately prior to such 12-month period). 

“ECP Swap Obligation” means, with respect to any MDA Party, any obligation to pay or perform under any agreement, contract or transaction
that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act. 
 “EDC” means Export Development
Canada. 
 “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which
is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution
established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. 

  
 19 

 “EEA Resolution Authority” means any public administrative authority or any person entrusted
with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

“Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is sponsored, maintained
or contributed to by, or required to be contributed to by any MDA Party or any of its respective ERISA Affiliates, other than any plan not subject to United States law. 

“Environmental Laws” means all applicable Laws, Permits and guidelines or requirements of any Official Body (whether or not having the force
of Law, and including consent decrees to which an MDA Party is a party or otherwise subject, and administrative orders which may affect an MDA Party) relating to public health and safety, protection of the environment, the Release of Hazardous
Materials, occupational health and safety and industrial hygiene. 
 “Equity” means the shareholders’ equity of the Borrower
determined on a consolidated basis, less: 
  

	 	(a)	all write-ups (other than write-ups resulting from foreign currency translations and write-ups of
tangible assets of a going concern business made within 12 months after the acquisition of such business) subsequent to the date of this agreement in the book value of any asset owned by the Borrower or a consolidated subsidiary; 

 

	 	(b)	the portion of such consolidated shareholders’ equity attributable to any interest or investment in or Debt owed to it by Non-Recourse Subsidiaries; 

 

	 	(c)	in the case of a Special Subsidiary, the entire portion of equity as shown on a balance sheet of such Special Subsidiary in excess of the relevant Special Subsidiary Percentage; and 

 

	 	(d)	all other comprehensive income in accordance with IFRS including but not limited to foreign exchange gains resulting from the translation of the Borrower’s foreign operations, fair value gains on hedging
instruments designated in qualifying hedging relationships, fair value gains on available-for-sale financial assets, and actuarial gains on defined benefit pension
plans; 

 plus: 
  

	 	(e)	on a cumulative basis, write-downs (to the extent that such write-downs are non-recurring, relate to compliance with accounting standards, and do not involve the outlay of cash);
and 

  

	 	(f)	all other comprehensive losses in accordance with IFRS including but not limited to foreign exchange losses resulting from the translation of the Borrower’s foreign operations, fair value losses on hedging
instruments designated in qualifying hedging relationships, fair value losses on available-for-sale financial assets, and actuarial losses on defined benefit pension
plans. 

 “Equivalent Amount” of US Dollars means, as at any date, the amount of US Dollars into which a specified amount of
another currency can be converted: 
  

	 	(a)	in the case of Canadian Dollars, at the Canadian Dollar Exchange Rate; and 

  

	 	(b)	in the case of any currency other than Canadian Dollars, at such rate as the Administrative Agent may determine acting reasonably. 

  
 20 

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time,
and the rules and regulations promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any trade or business (whether
or not incorporated) that is under common control with any MDA Party and is treated as a single employer within the meaning of Section 414 of the Code or Section 4001 of ERISA. 

“ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued
thereunder with respect to any US Pension Plan (excluding those for which the 30-day notice period has been waived); (ii) the existence with respect to any Employee Benefit Plan of a non-exempt “Prohibited Transaction” (within the meaning of Section 406 of ERISA or Section 4975(c) of the Code); (iii) the failure to meet the minimum funding standard of Section 412 of the Code
or Section 302 of ERISA; (iv) the filing, pursuant to Section 412(c) of the Code or Section 302(c) of ERISA, of an application for a waiver of the minimum funding standard with respect to any US Pension Plan; (v) a determination that
any US Pension Plan is in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA); (vi) the provision by the administrator of any US Pension Plan pursuant to Section 4041(a)(2) of ERISA of a
notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (vii) the withdrawal by any MDA Party or any of its respective ERISA Affiliates from any US Pension Plan with two or more contributing
sponsors or the termination of any such US Pension Plan resulting in liability to any MDA Party or any of their respective Affiliates pursuant to Section 4063 or 4064 of ERISA; (viii) the incurrence by any MDA Party or any of its
respective ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any US Pension Plan; (ix) the institution by the Pension Benefit Guaranty Corporation (or any successor thereto) of proceedings to terminate
any US Pension Plan, or the occurrence of any event or condition which could reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any US Pension Plan; (x) the imposition
of liability on any MDA Party or any of its respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (xi) the withdrawal of any MDA Party or any of its respective
ERISA Affiliates in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefor; (xii) the receipt by any MDA Party or any of its respective
ERISA Affiliates of notice from any Multiemployer Plan (A) concerning the imposition of withdrawal liability, (B) that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, (C) that such Multiemployer
Plan is in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA) or (D) that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; or
(xiii) the imposition of a Lien pursuant to Sections 412(n) or 430(k) of the Code or pursuant to ERISA with respect to any US Pension Plan. 

“EU Bail-In Legislation Schedule” means the EU Bail-In
Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 
 “Event of
Default” means any of the events specified in section 12.1. 
 “Excluded Swap Obligations” means, with respect to any person
providing a Guarantee, any Hedging Obligation if, and to the extent that, all or a portion of the Guarantee of such person of, or the grant by such person of a Lien to secure, such Hedging Obligation (or any Guarantee thereof) is or becomes illegal
under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such person’s failure for any reason to constitute an
“eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of such person or the grant of such security interest becomes effective with respect to such Hedging
Obligation. If a Hedging Obligation arises under a master agreement governing more than one Hedging Instrument, such exclusion shall apply only to the portion of such Hedging Obligation that is attributable to swaps for which such Guarantee or Lien
is or becomes illegal. 

  
 21 

 “Existing Credit Agreement” means the 2011 Credit Agreement, among MacDonald, Dettwiler and
Associates Ltd., Royal Bank of Canada as Administrative Agent, and the lenders signatory thereto and dated for reference January 4, 2011. 

“Face Amount” means, in respect of a Bankers’ Acceptance, the amount payable to the holder thereof on its maturity and, in respect of a
Letter of Credit, the maximum amount that may from time to time be payable to the Beneficiary thereof, and where used in a context referring to more than one Bankers’ Acceptance and/or Letter of Credit means the aggregate of the Face Amounts
thereof. 
 “FATCA” means Sections 1471 through 1474 of the Code as in effect on the date of this agreement (or any amended or successor
provisions, provided that such amended or successor provisions do not place compliance or other burdens on the Lender (as determined in the reasonable judgment of the affected Lender) that are materially more onerous than the provisions in effect on
the date of this agreement) and any regulations or other guidance thereof. 
 “Federal Funds Effective Rate” means, for any day, the rate
per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided that (i) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to the Administrative Agent on such day on such transactions as determined by the
Administrative Agent. 
 “Final Maturity Date” means September 12, 2020 or, if such day is not a Business Day, the immediately
preceding Business Day. 
 “Finance Parties” means, collectively, the Administrative Agent and the Lenders. 

“Financial Quarter” means a period of three consecutive months ending on March 31, June 30, September 30 or December 31,
as the case may be. 
 “Financial Year” means a financial year commencing on January 1 of each calendar year and ending on
December 31 of such year. 
 “Fixed Charges” means, without duplication, in respect of any period and as determined for the Borrower
on a consolidated basis in accordance with IFRS, the sum of (i) Interest Expense accrued and paid or payable during such period, (ii) mandatory amortization payments under the Credit Facilities accrued and paid or payable during such
period, and (iii) mandatory amortization payments under any other Debt (including the Land Note) accrued and paid or payable during such period. 

“Foreign Ownership, Control or Influence Requirements” means the requirements set forth in (i) the National Industrial Security Program
Operating Manual, DoD 5220.22-M, issued by the United States Department of Defense on February 28, 2006, as amended, (ii) any similar or successor Laws or guidance issued by any agency or
instrumentality of the United States Federal Government applicable to the Borrower or any of its subsidiaries in such person’s capacity as a contractor to the United States Federal Government, and (iii) any foreign ownership, control or
influence mitigation or negation arrangements to which the Borrower or any of its subsidiaries is subject (e.g., a Special Security Agreement or Proxy Agreement). 

[not used] 
 “Fronting Lender” means
Royal Bank acting through its Lending Office and any other Lender from time to time designated by the Borrower in writing. 

  
 22 

 “GSA” means a general security agreement (or equivalent under applicable Laws) made by an MDA
Party in favour of the Collateral Agent granting to the Collateral Agent a security interest over all of its existing and after-acquired personal property of every nature and kind whatsoever. 

“Guarantee” means an unconditional and irrevocable guarantee of the Obligations made by a Designated Subsidiary in favour of the
Administrative Agent. 
 “Hazardous Materials” means: 
  

	 	(a)	any oil, flammable substances, explosives, radioactive materials, hazardous wastes or substances, toxic wastes or substances or any other wastes, contaminates, materials or pollutants which: 

 

	 	(i)	pose a hazard to any real property, or to persons on or about any real property; or 

  

	 	(ii)	cause any real property to be in violation of any Law; 

  

	 	(b)	asbestos in any form which is or could become friable, urea formaldehyde foam insulation, transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of limits
prescribed by Law, or radon gas; 

  

	 	(c)	any chemical, material or substance defined as or included in the definition of “dangerous goods”, “deleterious substance”, “hazardous substances”, “hazardous wastes”,
“hazardous materials”, “extremely hazardous wastes”, “restricted hazardous waste”, “special waste” or “toxic substances”, “waste” or words of similar import under any Law; and

  

	 	(d)	any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any Official Body or which may or could pose a hazard to the occupants of any real property or the owners or occupants
of property adjacent to or surrounding any real property, or any other person coming upon any real property or adjacent or surrounding property. 

“Hedging Instrument” means: 
  

	 	(a)	any interest rate or foreign exchange risk management agreement or product, including: 

  

	 	(i)	interest rate or currency exchange or swap agreements; 

  

	 	(ii)	futures contracts; 

  

	 	(iii)	forward exchange, purchase or sale agreements; and 

  

	 	(iv)	any other agreements to fix or hedge interest rates or foreign exchange rates; and 

  

	 	(b)	any commodity price (including the price of securities) risk management agreement or product, including: 

  

	 	(i)	commodity exchange or swap agreements; 

  

	 	(ii)	futures contracts; 

  

	 	(iii)	forward exchange, purchase or sale agreements; and 

  
 23 

	 	(iv)	any other agreements to fix or hedge the price of commodities (including securities), including for greater certainty equity derivatives used for the purpose of hedging obligations under stock compensation plans and
similar obligations. 

 “Hedging Obligations” means all present and future indebtedness and other liabilities and
obligations, whether contingent or absolute, matured or unmatured, at any time or from time to time due or accruing due and owing by or otherwise payable by the Borrower or a subsidiary (whether alone or with another or others and whether as
principal or surety) under any one or more existing or future Hedging Instruments where the counterparty is a Lender. 
 “IFRS” means, in
relation to any person at any time, International Financial Reporting Standards applied on a basis consistent with the most recent audited financial statements of such person and its consolidated subsidiaries (except for changes approved by the
auditors of such person). 
 “Increased Costs” means any amounts payable by the Borrower to the Administrative Agent or a Lender under any
of sections 3.2(3), 5.10 and 10.1(12), Article 11 and section 14.5. 
 “Interest Expense” means, without duplication, in respect
of any period and as determined on a consolidated basis (but excluding all Non-Recourse Subsidiaries) for the Borrower in accordance with IFRS, the sum of: 

 

	 	(a)	interest incurred during such period on Debt; 

  

	 	(b)	the aggregate cost of obtaining short-term and long-term advances of credit, reported as interest expense on the consolidated income statement of the Borrower for such period, including accrued and unpaid interest
charges, standby fees, and discounts and fees payable in respect of bankers acceptances and letters of credit, but for greater certainty excluding arrangement and underwriting fees; 

 

	 	(c)	payments made or required to be made during such period on account of the interest component (or portion thereof reasonably attributable to interest or other compensation for the extension of credit) of any payment
under a Capital Lease; 

  

	 	(d)	interest on uncertain tax positions; 

  

	 	(e)	imputed interest; 

  

	 	(f)	accretion interest on long term obligations; 

  

	 	(g)	forward points on Hedging Instruments; and 

  

	 	(h)	any discount on the securitization of Orbital Receivables, whether or not treated as interest expense under IFRS; 

less: 
  

	 	(i)	any interest on Subordinated Debt that is paid or satisfied by the issue of equity securities or from the proceeds of further Subordinated Debt; 

 

	 	(j)	any interest, costs or payments in connection with letters of credit guaranteed or insured by EDC; and 

  

	 	(k)	in the case of a Special Subsidiary, the entire portion of Interest Expense attributable to such Special Subsidiary in excess of the relevant Special Subsidiary Percentage. 

  
 24 

 “Intercreditor Agreement” means the agreement of even date entered into by and among
(i) the Administrative Agent, (ii) Royal Bank in its capacity as administrative agent for the lenders under the 2012 LC Facility Agreement, (iii) the holders of the Prudential Notes, (iv) the holders of the 2012 Notes, and
(v) Royal Bank in its capacity as Collateral Agent. 
 “Interest Period” means, for each CDOR Rate Advance or US LIBOR Advance, a
period commencing: 
  

	 	(a)	in the case of the initial Interest Period for such Advance, on the date of such Advance; and 

  

	 	(b)	in the case of any subsequent Interest Period for such Advance in accordance with a Rollover, on the last day of the immediately preceding Interest Period; 

and ending in either case on the last day of such period as shall be selected by the Borrower pursuant to the provisions below. 

If another type of Borrowing or a Drawing is subject to a Conversion to a CDOR Rate Advance or US LIBOR Advance, the initial Interest Period for such Advance
shall commence on the date of such Conversion. The duration of each Interest Period for a CDOR Rate Advance or a US LIBOR Advance shall be one, two, three or six months (subject to availability), as the Borrower may select in the applicable
Accommodation Request, or such other period to which the relevant Lenders may agree. No Interest Period may be selected which would end on a day after the Final Maturity Date or, in the opinion of the Administrative Agent, conflict with any
repayment stipulated herein. Whenever the last day of an Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day; provided that, if
such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day. 

“ISP98” means the International Standby Practices ISP98, as published by the International Chamber of Commerce and in effect from time to
time. 
 “Issuance” means the issuance of one or more Letters of Credit made pursuant to an Issue Notice. 

“Issue Date” means any Business Day fixed in accordance with the provisions of this agreement for an Issuance. 

“Issue Notice” means a notice of request for an Issuance in the form of the Fronting Lender’s customary letter of credit application, as
defined in section 5.4(1). 
 “Land LLC” means Space Systems/Loral Land, LLC, being the limited liability company established by SS/L
to receive the Acquired Real Property pursuant to Section 2.1(c) of the Purchase Agreement. 
 “Land Note” means the unsecured instalment
note made by the Borrower in favour of Loral in the principal amount of US$101 million substantially in the form annexed as Exhibit C to the Purchase Agreement. 

“Land Note Letter of Guarantee” means the letter of guarantee (or letter of credit) in the Face Amount of US$101 million issued under
the Revolving Facility in favour of Loral in connection with the Land Note substantially in the form annexed as Exhibit C to the Purchase Agreement. 

“Law” means any law (including common law and the laws of equity), constitution, statute, treaty, regulation, rule, ordinance, order,
injunction, writ, decree or award of any Official Body. 
 [not used] 

  
 25 

 “Lenders” means the Lenders named as “Lenders” on the signature pages hereto and their
successors and permitted assigns. 
 “Lenders’ Counsel” means Norton Rose Fulbright Canada LLP or such other law firm or firms as may
from time to time be chosen by the Lenders to act on their behalf in connection with the Credit Facilities and approved by the Borrower (such approval not to be unreasonably withheld, and which approval will not be required if a Default or an Event
of Default has occurred and is continuing). 
 “Lending Office” means, as to each Lender, the office in Canada specified as the
“Lending Office” of such Lender on schedule 1 annexed hereto or such other office as such Lender may designate from time to time in accordance with section 2.1(8). 

“Letter of Credit” means a standby or commercial letter of credit or (subject to availability) a letter of guarantee issued under the
Revolving Facility for a specified amount in Canadian Dollars, US Dollars or (subject to availability) any other currency agreed by the Fronting Lender, in each case at the request and upon the indemnity of the Borrower pursuant to Article 5.
Letters of Credit for specified amounts in Canadian Dollars, US Dollars or such other currency are each a “type” of Letter of Credit. 

“Lien” means any mortgage, pledge, lien, hypothecation, security interest or other encumbrance or charge (whether fixed, floating or
otherwise) or title retention, any right of set-off (arising with respect to indebtedness for borrowed monies and otherwise than by operation of Law), and any deposit of moneys under any agreement or
arrangement whereby such moneys may be withdrawn only upon fulfilment of any condition as to the discharge of any other indebtedness or other obligation to any creditor, or any right of or arrangement of any kind with any creditor to have its claims
satisfied prior to other creditors with or from the proceeds of any properties, assets or revenues of any kind now owned or later acquired. 

“Loral” means Loral Space & Communications Inc. 

“LTM Fixed Charges” for any period means Fixed Charges for such period, adjusted in accordance with this definition whereby Interest Expense,
as calculated as at the end of: 
  

	 	(a)	the first Financial Quarter ended following the Closing Date, means Interest Expense for such Financial Quarter multiplied by four; 

  

	 	(b)	the second Financial Quarter ended following the Closing Date, means Interest Expense for the most recently completed two consecutive Financial Quarters multiplied by two; 

 

	 	(c)	the third Financial Quarter ended following the Closing Date, means Interest Expense for the most recently completed three consecutive Financial Quarters multiplied by four-thirds (4/3); 

 

	 	(d)	the fourth Financial Quarter ended following the Closing Date, and for each Financial Quarter thereafter, means Interest Expense for the most recently completed four consecutive Financial Quarters; 

and by adjusting the principal component of Fixed Charges in accordance with the following provisions: 

 

	 	(e)	the repayment of the principal amount of the Prudential Notes in 2017 shall be excluded; 

  

	 	(f)	in respect of the first eight full Financial Quarters immediately following the Closing Date, the repayment of the principal of the Term Facility shall be calculated on a pro forma basis whereby principal is
repaid at a rate of 5% per annum; and 

  
 26 

	 	(g)	in respect of the first four full Financial Quarters immediately following the Closing Date, the repayment of the principal of the Land Note shall be calculated on a pro forma basis whereby principal is repaid at
a rate of 1/3 per annum. 

 “LuxCo” means MD Information Service (Luxembourg) S.à r.l., a private limited liability
company (société à responsabilité limitée) organized under the laws of Luxembourg with a share capital of USD 3,022,000, registered at the Registre de Commerce et des Sociétés, Luxembourg under
the number B98.787 and with registered office L1445 Strassen, rue Thomas Edison, 1A. 
 “LuxCo Loan” means the unsecured loan facilities
made available to MDA Holdings by LuxCo in the aggregate principal amount of US$440 million for the purpose of discharging MDA Holdings’ obligations under the Purchase Agreement. 

“MAE” means: 
  

	 	(a)	any material adverse change in the assets, properties, operations or condition, financial or otherwise, of the MDA Parties taken as a whole; or 

 

	 	(b)	any material impairment or reduction in the ability (financial or otherwise) of an MDA Party or MDA Pledgor to fulfil any covenant or obligation of (or applicable to) such MDA Party or MDA Pledgor to the Lenders; or

  

	 	(c)	any material impairment of the remedies of the Collateral Agent or the Secured Parties under the Security. 

“Majority Lenders” means: 
  

	 	(a)	in respect of both Credit Facilities at any time, Lenders whose respective individual Principal Outstanding aggregate at least 66-2/3% of the total Principal Outstanding of all
Lenders under both Credit Facilities at such time (or, if there is no Principal Outstanding under either Credit Facility at that time, Lenders whose respective individual Commitments aggregate at least 66-2/3%
of the total Commitments of all Lenders under both Credit Facilities at such time); and 

  

	 	(b)	in respect of a particular Credit Facility at any time, Lenders whose respective individual Principal Outstanding under such Credit Facility aggregate at least 66-2/3% of the
total Principal Outstanding under such Credit Facility at such time (or, if there is no Principal Outstanding under such Credit Facility at that time, Lenders whose respective individual Commitments aggregate at least
66-2/3% of the total Commitments of all Lenders such Credit Facility at such time); 

 and a reference
herein to “Majority Lenders” without any further qualification or elaboration shall have the meaning contemplated by paragraph (a) above. 

“Mandatory Pension Payments” means cash and cash equivalent contributions, premiums and other cash and cash equivalent payments required to
be made by the Borrower on a consolidated basis under the terms of (or in accordance with any Laws applicable to) any (i) Employee Benefit Plan, (ii) plan which is considered to be a pension plan for the purposes of any applicable pension
benefits standards statute and/or regulation in Canada (excluding the Canada Pension Plan or the Quebec Pension Plan), or (iii) similar plan or arrangement governed by the laws of any other jurisdiction. 

“Margin Stock” has the meaning assigned to such term in Regulation U. 

“MDA Holdings” means MDA Communications Holdings, Inc. 

  
 27 

 “MDA Party” means any of the Borrower and a Designated Subsidiary, and “MDA
Parties” means, collectively, the Borrower and all Designated Subsidiaries. 
 “MDA Pledgor” means an affiliate of the Borrower
that provides a pledge of shares in the capital of a Designated Subsidiary as part of the Security, but is not itself a Designated Subsidiary. 

“Moody’s” means Moody’s Investors Service Inc. and its successors and assigns. 

“Multiemployer Plan” means any Employee Benefit Plan which is a “multiemployer plan” as defined in Section 3(37) or Section
4001(a)(3) of ERISA. 
 “Non-Acceptance Discount Rate” means, for any day, the rate that is
described in paragraph (b) of the definition of Discount Rate; provided that, if at any relevant time there are no Reference Lenders, the Non-Acceptance Discount Rate will be the rate described in
paragraph (b)(i) of that definition. 
 “Non-Acceptance Lender” has the meaning set forth in
section 4.11. 
 “Non-Recourse Debt” means Debt: 

 

	 	(a)	as to which no MDA Party (i) provides credit support or financial assistance of any nature whatsoever (including any undertaking, agreement or instrument which would constitute Debt), or (ii) is liable
(directly or indirectly, contingently or otherwise); and 

  

	 	(b)	default with respect to which (including any rights which the holders thereof may have to take enforcement action) would not permit (upon notice, lapse of time or both) any holder of any other Debt of any MDA Party to
declare a default on such other Debt or cause a payment thereof to be accelerated or payable prior to its stated maturity. 

 “Non-Recourse Subsidiary” means a subsidiary of the Borrower which has been designated a Non-Recourse Subsidiary in accordance with this agreement, and which
subsidiary does not have outstanding any Debt other than Non-Recourse Debt and Debt to an MDA Party as permitted under this agreement. 

“Notice” means an Accommodation Request or an Issue Notice. 

“Obligations” means: 
  

	 	(a)	at any time in respect of a Credit Facility, the amount equal to the sum of: 

  

	 	(i)	the Principal Outstanding under such Credit Facility; 

  

	 	(ii)	all accrued and unpaid interest thereon and all interest on overdue amounts; and 

  

	 	(iii)	all accrued and unpaid fees, expenses, costs, indemnities, Increased Costs and other amounts payable to the relevant Lenders or the Administrative Agent pursuant to the provisions of any Credit Facility Document or
otherwise in respect of such Credit Facility; and 

  

	 	(b)	at any time in respect of both Credit Facilities, the amount equal to the sum of: 

  

	 	(i)	the Principal Outstanding under both Credit Facilities; 

  

	 	(ii)	all accrued and unpaid interest thereon and all interest on overdue amounts under both Credit Facilities; and 

  
 28 

	 	(iii)	all accrued and unpaid fees, expenses, costs, indemnities, Increased Costs and other amounts payable to the Lenders or the Administrative Agent pursuant to the provisions of any Credit Facility Document or otherwise in
respect of both Credit Facilities. 

 “OECD” means the Organisation for Economic
Co-operation and Development. 
 “OFAC” shall have the meaning ascribed thereto in section 7.21.

 “Official Body” means any government (including any federal, provincial, state, territorial, municipal or local government) or political
subdivision or any agency, authority, bureau, regulatory or administrative authority, central bank, monetary authority, commission, department or instrumentality thereof, or any court, tribunal, judicial entity, or arbitrator, whether foreign or
domestic. 
 “Orbital Receivables” means satellite orbital incentive payments payable to an MDA Party under satellite purchase agreements
and any other contingent payments related to satellite construction projects. 
 “Parent Loan” means the unsecured loan facility made
available to LuxCo by the Borrower in the principal amount of US$440 million for the purpose of enabling LuxCo to make the LuxCo Loan. 

“Participant” shall have the meaning ascribed thereto in section 14.8(3). 

“PATRIOT Act” means The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)), as amended or modified from time to time. 

“Payment Account” means 
  

	 	(a)	for US Dollars – JPMorgan Chase Bank, New York, ABA 021000021, Swift code: CHASUS33 For credit to beneficiary: RBCCM Agency Services, A/C#: /00002-408-919-9 Swift Address: ROYCCAT2, Toronto, Ontario, Ref: MDA; and 

  

	 	(b)	for Canadian Dollars – Royal Bank of Canada, Toronto, Swift Address: ROYCCAT2, account number
/00002-266-760-8, RBCCM Agency Services, Toronto, Ontario, Ref: MDA; 

or such other places or accounts as may be agreed by the Administrative Agent and the Borrower from time to time and notified to the Lenders. 

“Permit” means any permit, licence, approval, consent, order, right, certificate, judgment, writ, injunction, award, determination,
direction, decree, authorization, franchise, privilege, grant, waiver, exemption and other similar concession or by-law, rule or regulation (whether or not having the force of Law) of, by or from any Official
Body. 
 “Permitted Disposition” means any of the following Asset Dispositions: 

 

	 	(a)	an Asset Disposition to another MDA Party; 

  

	 	(b)	the Classified Reorganization; 

  

	 	(c)	dealings in the ordinary course of business; 

  

	 	(d)	dealings in cash and securities which are not otherwise contrary to this agreement; 

  
 29 

	 	(e)	a disposition at fair market value of assets (up to an aggregate amount of US$10 million in each Financial Year) that are replaced within 180 days of disposition with assets of equal or greater value;

  

	 	(f)	a disposition at fair market value of an obsolete, unusable or redundant asset not required for the continued operation of its business; 

 

	 	(g)	a disposition made in compliance with section 10.1(21); and 

  

	 	(h)	a disposition by an MDA Pledgor of any property that is not part of the Collateral. 

 “Permitted
Liens” means, in respect of any person at any time, any one or more of the following: 
  

	 	(a)	Liens for taxes, assessments or government charges or levies not at the time due and delinquent or the validity of which is being contested at the time by such person in good faith by proper legal proceedings, and which
contested Liens would not reasonably be expected to have an MAE; 

  

	 	(b)	the Lien of any judgment or award not giving rise to an Event of Default with respect to which such person shall in good faith be prosecuting an appeal or proceeding for review, and which contested Lien would not
reasonably be expected to have an MAE; 

  

	 	(c)	Liens or privileges imposed by Law such as carriers, warehousemen’s, mechanics and materialmen’s Liens and privileges arising in the ordinary course of business not at the time due or delinquent or which are
being contested at the time by such person in good faith by proper legal proceedings, and which contested Liens or privileges would not reasonably be expected to have an MAE; 

 

	 	(d)	undetermined or inchoate Liens incidental to current operations which have not at such time been filed; 

  

	 	(e)	restrictions, easements, rights-of-way, servitudes or other similar rights in land or immoveable property (including easements, rights of
way and servitudes for railways, sewers, drains, pipelines, gas and water mains, electric light and power and telephone or telegraph or cable television conduits, poles, wires and cables) granted to or reserved by other persons which in the
aggregate do not materially impair the usefulness, in the operation of the business of such person, of the property subject to such restrictions, easements,
rights-of-way, servitudes or other similar rights; 

  

	 	(f)	the right reserved to or vested in any Official Body, by the terms of any Permit acquired by such person or by any Law, to terminate any such Permit or to require annual or other payments as a condition to the
continuance thereof; 

  

	 	(g)	the encumbrance resulting from the pledge or deposit of cash, letters of credit or securities: 

  

	 	(i)	in connection with any of the Liens referred to in paragraphs (a), (b) or (c) of this definition pending a final determination as to the existence or amount of any obligation referred to therein; 

 

	 	(ii)	in connection with contracts, bids, tenders, leases or expropriation proceedings; 

  

	 	(iii)	to secure workers compensation, employment insurance or other social security benefits, pension or post-retirement benefits, liabilities to insurance carriers under insurance or self-insurance arrangements, surety or
appeal bonds, performance bonds, costs of litigation when required by Law and public and statutory obligations; 

  
 30 

 and any right or refund, set-off or charge-back available
to any bank or other financial institution (including under any consolidated banking, mirrored account or similar arrangement); 
  

	 	(h)	security given to a public utility or any other Official Body when required by such utility or other Official Body in connection with the operations of such person in the ordinary course of its business and not securing
Debt; 

  

	 	(i)	the reservations, limitations, provisos and conditions, if any, expressed in any grants from the Crown or any similar authority, and statutory exceptions to title; 

 

	 	(j)	title defects, irregularities or restrictions which are of a minor nature and in the aggregate will not materially impair the use of the property for the purposes for which it is held by such person; 

 

	 	(k)	any other Liens of a nature similar to those referred to in the foregoing paragraphs (a) to (j), inclusive, which do not secure Debt and do not have and would not reasonably be expected to have an MAE;

  

	 	(l)	Capital Leases and Purchase Money Mortgages securing or evidencing obligations not in excess of US$50 million (or the Equivalent Amount in any other currency) in the aggregate at any time, excluding the Liens
referred to in paragraphs (u) and (v) below; 

  

	 	(m)	Liens granted in the ordinary course of business on commercially reasonable terms as part of Permits or arrangements under material contracts to secure the return of assets; 

 

	 	(n)	the Liens created pursuant to the Security and/or in favour of the Collateral Agent for the benefit of the Secured Parties so long as such Liens are subject to the terms of the Intercreditor Agreement or an
intercreditor agreement satisfactory to the Majority Lenders; 

  

	 	(o)	Liens on property or shares or equity interests of a person at the time that such person becomes a Designated Subsidiary; provided, however, that the Lien may not extend to any other property or assets owned by such
Designated Subsidiary; provided, further, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, or to provide credit support in connection with, such person becoming a Designated Subsidiary; provided that,
with respect to the property and shares of SS/L and Land LLC, a Lien shall only be considered to be permitted by this paragraph (o) if: 

  

	 	(i)	such Lien is set forth in schedule 3 annexed hereto; or 

  

	 	(ii)	such Lien is in an amount less than US$1 million (or the Equivalent Amount in any other currency), subject to an aggregate limit for all such Liens of US$5 million (or the Equivalent Amount in any other
currency); or 

  

	 	(iii)	the Borrower shall have deposited with the Administrative Agent cash collateral or other security satisfactory to the Lenders in the amount of the Lien within 30 days from the date that the Borrower is first aware of
the existence thereof (which security may be comprised of cash collateral or other security deposited with or delivered to the Collateral Agent); or 

  

	 	(iv)	such Lien shall have been released within such 30 day period; 

  
 31 

	 	(p)	Liens on property or assets at the time an MDA Party acquires the property or assets, including any acquisition by means of an amalgamation, merger or consolidation with or into an MDA Party; provided, however, that the
Lien may not extend to any other property or assets owned by such MDA Party; provided further that such Liens are not created, incurred or assumed in connection with, or in contemplation of, or to provide credit support in connection with, such
acquisition; provided further that, with respect to the property and shares of SS/L and Land LLC, a Lien shall only be considered to be permitted by this paragraph (p) if: 

 

	 	(i)	such Lien is set forth in schedule 3 annexed hereto; or 

  

	 	(ii)	such Lien is in an amount less than US$1 million (or the Equivalent Amount in any other currency), subject to an aggregate limit for all such Liens of US$5 million (or the Equivalent Amount in any other
currency); or 

  

	 	(iii)	the Borrower shall have deposited with the Administrative Agent cash collateral or other security satisfactory to the Lenders in the amount of the Lien within 30 days from the date that the Borrower is first aware of
the existence thereof (which security may be comprised of cash collateral or other security deposited with or delivered to the Collateral Agent); or 

  

	 	(iv)	such Lien shall have been released within such 30 day period; 

  

	 	(q)	Liens to secure any refinancing, extension, renewal or replacement as a whole, or in part, of any Debt secured by any Lien referred to in the foregoing paragraphs (o) and (p); provided that the amount secured
thereby is not increased and the assets subject to such Liens are restricted to those previously made subject thereto; 

  

	 	(r)	Liens encumbering property under construction arising from progress or partial payments made by a customer of such person relating to such property; 

 

	 	(s)	any interest or title of a lessor in the property subject to any lease; and Liens or rights of distress reserved in or exercisable under leases for payment of rent or other compliance with the terms of such lease;

  

	 	(t)	Liens in favour of customs and revenue authorities arising under applicable Law to secure payment of customs or import duties in connection with the importation of goods, which customs or import duties are not overdue;

  

	 	(u)	a Lien over the assets comprised in the St. Anne facility granted to the Province of Quebec as security for a loan made by the Province to the Borrower (or an affiliate) for the purposes of the development of such
facility; provided that the aggregate principal amount secured thereby does not exceed C$9 million and the collateral does not extend beyond such assets; 

  

	 	(v)	a Lien over the assets comprised in the Brampton facility granted to the Province of Ontario as security for a loan made by the Province to the Borrower (or an affiliate) for the purposes of the development of such
facility; provided that the aggregate principal amount secured thereby does not exceed C$12 million and the collateral does not extend beyond such assets; 

  

	 	(w)	Liens on satellite assets and other work-in-progress related to a sale contract with a customer securing the obligations of an MDA Party
under such sale contract; 

  
 32 

	 	(x)	Liens on Orbital Receivables (including any deposit account in which any collections from such Orbital Receivables are deposited) securing any indebtedness in respect of any Asset Securitization permitted hereunder;
provided that the only monies deposited to any such deposit account shall be collections from such Orbital Receivables; and 

  

	 	(y)	the Liens granted to Her Majesty the Queen in Right of Canada, Canadian Space Agency, over property located at St. Hubert, Quebec sold by the Canadian Space Agency to the Borrower on December 14, 2007 relating to
project Radarsat-2. 

 “person” includes an individual, partnership, body corporate,
corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture and other entity and any Official Body. 

“PPSA” means, as the context requires in respect of an asset or jurisdiction, the Personal Property Security Act applicable to any
security interest granted in such asset or otherwise applicable in such jurisdiction. 
 “Prepayment Portion” means, in relation to any
amount at any time, with respect to any Lender, a share of such amount determined by multiplying such amount by a fraction, the numerator of which shall be the Principal Outstanding with respect to such Lender under the Term Facility at such time,
and the denominator of which shall be the sum of (a) the aggregate Principal Outstanding under the Term Facility at such time, (b) the aggregate unpaid principal amount of the 2012 Notes at the time outstanding, plus (c) the aggregate
unpaid principal amount of the Prudential Notes at the time outstanding. 
 “Prime Rate” means, at any time, the greater of: 

 

	 	(a)	the rate of interest per annum established in its sole discretion and reported by Royal Bank from time to time as the reference rate of interest it charges to customers for Canadian Dollar loans made by it in Canada
(which is not necessarily the lowest rate that Royal Bank is charging any corporate customer); and 

  

	 	(b)	the sum of: 

  

	 	(i)	the average 30 day bankers’ acceptance rate as quoted on Reuters Service page CDOR as at 10:00 a.m. (Toronto time) on such day, expressed as a rate per annum; plus 

 

	 	(ii)	100 basis points; 

 as to which a certificate of the Administrative Agent, absent manifest error, shall be
conclusive evidence from time to time. With each quoted or published change in such rate aforesaid of Royal Bank or such bankers’ acceptance rate, there shall be a corresponding change in any rate of interest payable under this agreement based
on the Prime Rate in accordance with the calculation above, all without the necessity of any notice thereof to the Borrower or any other person. 

“Principal Outstanding” means, at any time, the amount equal to: 
  

	 	(a)	when used in a context pertaining to Accommodations made by a single Lender under a Credit Facility, the sum of: 

  

	 	(i)	the aggregate principal amount of all Advances and BA Equivalent Loans then outstanding made by such Lender under such Credit Facility (including, in the case of the Revolving Facility, such Lender’s portion of
Swingline Advances made under section 2.1(6)); and 

  
 33 

	 	(ii)	the Face Amount of all Accommodations then outstanding made by such Lender under such Credit Facility by way of Bankers’ Acceptances (whether or not held by such Lender) and Letters of Credit (including the portion
of the Face Amount of Letters of Credit allocated to such Lender under section 5.2); and 

  

	 	(b)	when used elsewhere in this agreement with reference to a Credit Facility, the sum of: 

  

	 	(i)	the aggregate principal amount of all Advances and BA Equivalent Loans then outstanding made by the relevant Lenders under such Credit Facility; and 

 

	 	(ii)	the Face Amount of all Accommodations then outstanding made by the relevant Lenders under such Credit Facility by way of Bankers’ Acceptances (whether or not held by the respective Lenders) and Letters of Credit.

 “Proxy Agreement” means an agreement between the Department of Defense (DoD) and a Designated Subsidiary and its parents
(including the Borrower), pursuant to the National Industrial Security Program Operating Manual (“NISPOM”) DoD 5220.22M for the purpose of industrial security services, which requires the Designated Subsidiary to have a facility security
clearance and requires the Designated Subsidiary to be effectively insulated from foreign ownership, control or influence. 
 “Proxy
Subsidiary” means a Designated Subsidiary that has entered into a Proxy Agreement with the Department of Defense (DoD). 
 “Prudential
Notes” means the US $100 million aggregate principal amount of 5.30% Series A Senior Notes due 2017 issued by the Borrower pursuant to an amended and restated note agreement of even date. 

“Purchase Agreement” means the agreement entitled “Purchase Agreement” by and among Loral, SS/L, the Borrower and MDA Holdings
dated as of June 26, 2012. 
 “Purchase Money Mortgage” means any Lien given (whether or not to the transferor), assumed or arising by
operation of Law to provide or secure or to provide the obligor with funds to pay the whole or any part of the consideration for the acquisition or costs of construction of property where: 

 

	 	(a)	the principal amount of such Lien is not in excess of the cost to the obligor of the property encumbered thereby; 

  

	 	(b)	such Lien was created prior to, at the time of or within 120 days after the acquisition, completion of construction or commencement of full operation of such property; and 

 

	 	(c)	such Lien is secured only by the property being acquired by the obligor; 

 and includes the renewal, extension
or refinancing of any such Lien and of the indebtedness represented thereby upon the same property provided that the indebtedness secured thereby and the security therefor are not increased thereby. 

“Qualified ECP Guarantor” means, in respect of any ECP Swap Obligation, each MDA Party that has total assets exceeding US$10 million at
the time the relevant Guarantee or grant of the relevant Lien becomes effective with respect to such ECP Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any
regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

“Rateable Portion” means, as to any Lender, the percentage which: 

  
 34 

	 	(a)	such Lender’s Commitment (under either or both of the Credit Facilities, as the case may be); 

 then
constitutes of: 
  

	 	(b)	the aggregate Commitments (under either or both of the Credit Facilities, as the case may be). 

“Rating” means a rating assigned to the senior unsecured debt of the Borrower by Moody’s or S&P. 

“receiver” includes a receiver, receiver/manager and receiver and manager. 

“Reference Lenders” means such Lenders as shall be designated for such purpose by the Borrower and the Administrative Agent. 

“Regulation T” means Regulation T of the Board. “Regulation U” means Regulation U of the Board. “Regulation
X” means Regulation X of the Board. 
 “Release” includes releasing, spilling, depositing, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, disposing dumping or migrating, or permitting any of the foregoing to occur (including the abandonment or disposal of any barrels, tanks, containers or other closed receptacles containing or
previously containing any Hazardous Materials), including the movement of any Hazardous Materials through the air, soil, surface water or groundwater. 

“Revolving Facility” means the revolving credit facility to be made available by the Revolving Lenders for the purposes set forth in section
2.1(2)(a), in an aggregate Principal Outstanding not to exceed US$700 million (subject to increase in accordance with section 2.1(8)). 

“Revolving Lenders” means the Lenders providing a Commitment in respect of the Revolving Facility and their successors and permitted
assigns. 
 “Rollover” means, in respect of a CDOR Rate Advance or a US LIBOR Advance, the continuation thereof or any portion thereof for
a succeeding Interest Period and, in respect of a Bankers’ Acceptance, the issuance of a further Drawing on any day in a Face Amount not exceeding the Face Amount of such Bankers’ Acceptance, the proceeds of which are used to pay (directly
or indirectly) such Bankers’ Acceptance. 
 “Royal Bank” means Royal Bank of Canada, a Canadian chartered bank. 

“S&P” means Standard and Poor’s, a division of The McGraw-Hill Companies Inc. and its successors and assigns. 

“Secured Parties” has the meaning ascribed to that term in the Intercreditor Agreement. 

“Security” means all items of security given to the Collateral Agent or any of the Secured Parties at any time and from time to time to
secure, inter alia, the obligations set forth in the opening paragraph of section 8.1. 
 “Senior Officer” means, in respect of a
corporation, the president or chief executive officer, the chief financial officer, the chief legal officer, an executive vice-president, the director of finance, the controller, the secretary, the treasurer or such other officer as the
Administrative Agent may agree to. 
 “Special Subsidiary” means a subsidiary of the Borrower that is neither a Non-Recourse Subsidiary nor a Wholly-Owned Subsidiary. 

  
 35 

 “Special Subsidiary Percentage” means, with respect to a specified Special Subsidiary, the
percentage of the issued and outstanding shares of such Special Subsidiary held directly or indirectly by the Borrower. 
 “Specified Purchase
Agreement Representations” means the representations and warranties set forth in sections 3.1 to 3.5, 4.1 to 4.7, 4.9, 4.10, 4.21(b), 4.22(a), 4.24 and 4.33 of the Purchase Agreement. 

“Specified Representations” means the representations and warranties set forth in sections 7.1 to 7.4, 7.5(a)(i)) and (ii), and 7.19 to 7.22.

 “SS/L” means Space Systems/Loral, Inc. 

“SS/L Credit Agreement” means the Amended and Restated Credit Agreement, dated as of December 20, 2010, by and among SS/L, as borrower,
the several banks and other financial institutions or entities from time to time party thereto, Credit Suisse Securities (USA) LLC, as documentation agent, ING Bank N.V., as syndication agent, J.P. Morgan Securities LLC and Credit Suisse Securities
(USA) LLC, as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., as administrative agent. 
 “Subordinated Debt”
means unsecured Debt which is provided to an MDA Party and is junior in right of payment of principal to the Obligations, all of which Debt shall be subject to a subordination agreement on terms and conditions satisfactory to the Lenders, acting
reasonably; for greater certainty, (i) such subordination agreement shall contain restrictions on the ability of the subordinated creditor to accelerate the subordinated obligations (except as may be necessary to preserve or prove claims in
bankruptcy or insolvency proceedings) and to initiate bankruptcy or insolvency proceedings, and (ii) Convertible Debentures that meet the preceding criteria may constitute Subordinated Debt. 

“subsidiary” means, at any time in respect of a person, any corporation or other entity controlled at such time directly or indirectly by
such person, and includes for greater certainty successive subsidiaries of such subsidiary. 
 “Swingline Advance” has the meaning set
forth in section 2.1(6). 
 “Swingline Lender” means Royal Bank. 

“Taking” means the expropriation, condemnation or taking by eminent domain or similar authority, or by any proceeding or purchase in lieu or
anticipation thereof, of any of the Collateral or any right, title or interest therein by any Official Body. 
 “Taxes” means all taxes,
levies, imposts, stamp taxes, duties, fees, deductions, withholdings, charges, compulsory loans or restrictions or conditions resulting in a charge which are imposed, levied, collected, withheld or assessed by any country or political subdivision or
taxing authority thereof as of the date hereof or at any time in the future together with interest thereon and penalties with respect thereto, if any, and any payments of principal, interest, charges, fees or other amounts made on or in respect
thereof, including for greater certainty non-resident withholding taxes (but excluding any taxes, franchise taxes, levies, imposts or charge imposed, levied or assessed in respect of or applied on the overall
net income of any Lender, net earnings of any Lender, net profits of any Lender or capital or place of business of any Lender or on goods and services purchased by any Lender and any penalties and payments of principal, interest, charges, fees or
other amounts made on or in respect thereof), and “Tax” and “Taxation” shall be construed accordingly. 
 “Term
Facility” means the Credit Facility to be made available by the Term Lenders for the purposes set forth in section 2.1(2)(b), on a non-revolving basis and in an aggregate Principal Outstanding not to
exceed US$250 million (subject to reduction in accordance with the proviso to section 2.1(1)(b)). 

  
 36 

 “Term Lenders” means the Lenders providing a Commitment in respect of the Term Facility
and their successors and permitted assigns. 
 “Title Company” shall mean Chicago Title Insurance or other nationally recognized title
insurer reasonably satisfactory to the Borrower and the Administrative Agent. 
 “this agreement”, “herein”,
“hereof”, “hereto” and “hereunder” and similar expressions mean and refer to this credit agreement, as further supplemented or amended and not to any particular Article, section, paragraph, schedule
or other portion hereof; and the expressions “Article”, “section”, “paragraph” and “schedule” followed by a number or letter mean and refer to the specified Article, section,
paragraph or schedule of this agreement. 
 “2012 LC Facility” means the letter of credit facility made available to the Borrower, in a
maximum aggregate face amount of up to US$150 million, pursuant to an agreement of even date entitled “Amended and Restated LC Facility Agreement (2012)”. 

“2012 LC Facility Obligations” means all present and future indebtedness and other liabilities and obligations, whether contingent or
absolute, matured or unmatured, at any time or from time to time due or accruing due and owing by or otherwise payable by the Borrower or a subsidiary (whether alone or with another or others and whether as principal or surety) under the 2012 LC
Facility. 
 “2012 Notes” means the maximum US $250 million aggregate principal amount of 4.31% Senior Secured Notes due 2024 to be
issued by the Borrower pursuant to a note purchase agreement of even date. 
 “UCC” means, as the context requires in respect of an asset
or jurisdiction, the Uniform Commercial Code applicable to any security interest granted in such asset or otherwise applicable in such jurisdiction. 

“Uniform Customs” means the Uniform Customs and Practice for Documentary Credits, as published by the International Chamber of Commerce and
in effect from time to time. 
 “US$ Equivalent Principal Outstanding” means, at any time with respect to a Credit Facility, the amount
equal to: 
  

	 	(a)	when used in a context pertaining to Accommodations made by a single Lender under such Credit Facility, the Principal Outstanding in favour of such Lender under such Credit Facility; and 

 

	 	(b)	when used elsewhere in this agreement with reference to a Credit Facility, the Principal Outstanding in favour of all Lenders under such Credit Facility; 

in each case calculated and expressed in US Dollars, with each obligation in Canadian Dollars or any other currency converted for purposes of such calculation
into the Equivalent Amount in US Dollars. 
 “US Dollars”, “United States Dollars” and “US$” each mean
lawful money of the United States of America in same day immediately available funds or, if such funds are not available, the form of money of the United States of America that is customarily used in the settlement of international banking
transactions on the day payment is due hereunder. 
 “US GAAP” means, in relation to any person at any time, those generally accepted
accounting principles and practices which are recognized as such by the American Institute of Certified Public Accountants acting through its Accounting Principles Board or by the Financial Accounting Standards Board or through other appropriate
boards or committees thereof in effect at such time. 

  
 37 

 “US LIBOR” means, with respect to any Interest Period for any US LIBOR Advance: 

 

	 	(a)	the rate (rounded up to the nearest one hundredth of one percent (1/100th of 1%) if necessary) determined by the Administrative Agent to be the offered rate listed on the “LIBOR 01 Page” (or any display
substituted therefor) of Reuter’s Monitor Money Rates Service (or any successor thereto designated by the Administrative Agent) that displays the ICE Benchmark Administration Limited (or its successor) Interest Settlement Rate applicable to
such Interest Period, at which deposits in US Dollars are offered to financial institutions in the London interbank market at 11:00 a.m. (London local time) on the date two Business Days in advance of the commencement of such Interest Period; or

  

	 	(b)	if the rate referenced in the preceding subsection (a) is not available, the rate per annum determined by the Administrative Agent as the rate of interest, expressed on a basis of 360 days, at which deposits in US
Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the US LIBOR Advance being made, continued or converted by the Administrative Agent and with a term and amount comparable to such Interest
Period and principal amount of such US LIBOR Advance as would be offered by the Administrative Agent’s London branch to major banks in the offshore US Dollar market at their request at approximately 11:00 a.m. (London local time) two
(2) Business Days prior to the first day of such Interest Period; 

 provided that if any such rate is below zero, US LIBOR will be
deemed to be zero. 
 “US Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to Title IV of
ERISA, Section 412 of the Code or Section 302 of ERISA and is sponsored or maintained by any MDA Party or any of its respective ERISA Affiliates or to which any MDA Party or any of its respective ERISA Affiliates contributes or has an
obligation to contribute. 
 “US-Owned Assets” means assets owned by the United States Department
of Defense or any other agency of the United States government, and any assets that are qualified as classified assets by any applicable Laws of the United States. 

“Wholly-Owned Subsidiary” means a subsidiary of the Borrower, all of the equity interests (except directors’ qualifying shares) and
voting interests of which are owned by any one or more of the Borrower and the Borrower’s other Wholly-Owned Subsidiaries at such time. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA
Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU
Bail-In Legislation Schedule. 
  

	1.2	Computation of Time Periods. 

  

	 	(1)	Inclusion Rules. In this agreement, in the computation of periods of time from a specified date to a later specified date, unless otherwise expressly stated, the word “from” means “from
and including” and the words “to” and “until” each mean “to but excluding”. 

  

	 	(2)	Ibid. Where in this agreement a notice must be given a number of days prior to a specified action, the day on which such notice is given shall be included and the day of the specified action shall be excluded.

  

	1.3	Accounting Terms. 

  

	 	(1)	All accounting terms not specifically defined herein shall be construed, and resulting calculations and determinations made, in accordance with IFRS; provided that, in respect of the Acquisition, the Borrower will in
respect of its financial statements for the Financial Year in which the Acquisition occurs need to refer to US GAAP, and will provide to the Administrative Agent a reconciliation of such references to IFRS. 

  
 38 

	 	(2)	If: 

  

	 	(a)	the Borrower or any of its subsidiaries adopts a material change in an accounting policy in order to more appropriately present events or transactions in its financial statements, and such change would require
disclosure under IFRS in the consolidated financial statements of the Borrower; or 

  

	 	(b)	the Borrower has made a determination to maintain its accounts in accordance with US GAAP; 

and either such event would cause an amount required to be determined for the purposes of the financial covenants in section 10.2(12) or any
financial term used in this agreement (each a “Financial Covenant/Term”) to be materially different than the amount that would be determined without giving effect to such change, the Borrower shall notify the Administrative Agent of
such change (an “Accounting Change”). Such notice (an “Accounting Change Notice”) shall describe the nature of the Accounting Change, its effect on the current and immediately prior year’s financial statements
in accordance with (in the case of (a) above) IFRS or (in the case of (b) above) US GAAP and state whether the Borrower desires to revise the method of calculating one or more of the Financial Covenants/Terms (including the revision
of any of the defined terms used in the determination of such Financial/Covenant Term) in order that amounts determined after giving effect to such Accounting Change and the revised method of calculating such Financial Covenant/Term will approximate
the amount that would be determined without giving effect to such Accounting Change and without giving effect to the revised method of calculating such Financial Covenant/Term. The Accounting Change Notice shall be delivered to the Administrative
Agent within 60 days after the end of the Financial Quarter in which the Accounting Change is implemented or, if such Accounting Change is implemented in the fourth Financial Quarter or in respect of an entire Financial Year, within 120 days after
the end of such period. In connection with any Accounting Change Notice, the Borrower shall forthwith provide to the Administrative Agent any additional information regarding the Accounting Change as the Administrative Agent shall reasonably
request. 
  

	 	(3)	If, pursuant to the Accounting Change Notice, the Borrower does not indicate it desires to revise the method of calculating one or more of the Financial Covenants/Terms, the Majority Lenders may within 30 days after
receipt of the Accounting Change Notice notify the Borrower that they wish to revise the method of calculating one or more of the Financial Covenants/Terms that has been affected by the Accounting Change in the manner described above.

  

	 	(4)	 If either the Borrower or the Majority Lenders so indicate that they wish to revise the method of calculating one
or more of the Financial Covenants/Terms, the Borrower and the Majority Lenders shall in good faith attempt to agree on a revised method of calculating such Financial Covenants/Terms so as to reflect equitably such Accounting Change with the desired
result that the criteria for evaluating the Borrower’s financial condition shall be substantially the same after such Accounting Change as if such Accounting Change had not been made. Until the Borrower and the Majority Lenders have reached
agreement in writing on such revised method of calculation, all amounts to be determined hereunder shall continue to be determined without giving effect to the Accounting Change. For greater certainty, if no notice of a desire to revise the method
of calculating the Financial Covenants/Terms in respect of an Accounting Change is given by either the Borrower or the Majority Lenders within the applicable time period described 

  
 39 

	 	
above, then the method of calculating the Financial Covenants/Terms shall not be revised in response to such Accounting Change and all amounts to be determined pursuant to the Financial
Covenants/Terms shall be determined after giving effect to such Accounting Change. 

  

	 	(5)	If a compliance certificate is delivered under section 10.1(8)(c) in respect of a Financial Quarter or Financial Year in which an Accounting Change is implemented without giving effect to any revised method of
calculating any of the Financial Covenants/Terms, and subsequently, as provided above, the method of calculating one or more of the Financial Covenants/Terms is revised in response to such Accounting Change, or the amounts to be determined pursuant
to any of the Financial Covenants/Terms are to be determined without giving effect to such Accounting Change, the Borrower shall deliver a revised compliance certificate. Any Event of Default which arises as a result of the Accounting Change and
which is cured by this section 1.3(5) shall be deemed to have never occurred. 

  

	1.4	Incorporation of Schedules. 

 Schedules 1 to 11 annexed hereto shall, for all purposes hereof, form
an integral part of this agreement. 
  

	1.5	Gender; Singular, Plural, etc. 

 As used herein, each gender shall include all genders, and the singular
shall include the plural and the plural the singular, as the context shall require. 
  

	1.6	Use of Certain Words. 

 The words “including” and “includes”, when either follows any
general term or statement, is not to be construed as limiting the general term or statement to the specific terms or matters set forth immediately following such word or to similar items or matters, but rather as referring to all other items or
matters that could reasonably fall within the broadest possible scope of the general term or statement. 
  

	1.7	Successors, etc. 

 In this agreement: 

 

	 	(a)	reference to any body corporate shall include successors thereto, whether by way of amalgamation or otherwise; provided that transfers and assignments by the Borrower and corporate and other reorganizations shall
nonetheless be undertaken only in accordance with any restrictions imposed by the terms hereof; 

  

	 	(b)	references to any statute, enactment or legislation or to any section or provision thereof include a reference to any order, ordinance, regulation, rule or by-law or proclamation
made under or pursuant to that statute, enactment or legislation and all amendments, modifications, consolidations, re-enactments or replacements thereof or substitutions therefor from time to time; and

  

	 	(c)	reference to any agreement, instrument, Permit or other document shall include reference to such agreement, instrument, Permit or other document as the same may from time to time be amended, supplemented, replaced or
restated. 

  

	1.8	Interpretation not Affected by Headings, etc. 

 The division of this agreement into Articles and sections
and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation hereof. 

  
 40 

	1.9	General Provisions as to Certificates and Opinions, etc. 

 Whenever the delivery of a certificate is a
condition precedent to the taking of any action by the Administrative Agent or any Lender hereunder, the truth and accuracy of the facts and the diligent and good faith determination of the opinions stated in such certificate shall in each case be
conditions precedent to the right of the Borrower to have such action taken, and any certificate executed by the Borrower shall be deemed to represent and warrant that the facts stated in such certificate are true and accurate 

 

	1.10	Existing Accommodations. 

 For greater certainty, the parties confirm that, at such time as the
conditions precedent set forth in section 6.1 have been satisfied, fulfilled or otherwise met to the satisfaction of the Lenders, the obligations outstanding under the Credit Facility (as defined in the Existing Credit Agreement) and described in
schedule 7 annexed hereto shall for all purposes constitute Obligations under the Revolving Facility. 
 Article 2 

THE CREDIT FACILITIES 
  

	2.1	Credit Facilities. 

  

	 	(1)	Commitment. The Credit Facilities to be made available, subject to the terms and conditions of this agreement, are as follows: 

 

	 	(a)	the Revolving Facility, to be made available to the Borrower by the Revolving Lenders on a revolving basis, in the principal amount of up to but not exceeding US$700 million (or the Equivalent Amount in Canadian
Dollars), subject to increase in accordance with section 2.1(8); and 

  

	 	(b)	the Term Facility, to be made available to the Borrower by the Term Lenders on a non-revolving basis in the principal amount of up to but not exceeding US$500 million (or the
Equivalent Amount in Canadian Dollars); provided that: 

  

	 	(i)	in the event that the 2012 Notes have been issued by the Borrower prior to the Closing Date or are issued on the Closing Date concurrently with the initial availability of the Term Facility, the maximum principal amount
of the Term Facility shall be reduced by an amount equal to the principal amount of the 2012 Notes so issued; and 

  

	 	(ii)	any issue of the 2012 Notes after the Closing Date shall require a mandatory prepayment and reduction of the Term Facility in accordance with section 2.3(1)(b). 

Subject to the terms and conditions herein set forth, each Lender shall make Accommodations available under a Credit Facility
pro rata on the basis of such Lender’s Commitment under such Credit Facility as set forth in schedule 1 annexed hereto. 

Subject to section 2.11, in no event shall a Lender be obligated to make Accommodations available under a Credit Facility if after making such
Accommodations the US$ Equivalent Principal Outstanding of that Lender’s Accommodations under such Credit Facility would exceed such Lender’s Commitment thereunder. 

Each Lender shall make available to the Borrower through its Lending Office its Rateable Portion of all Accommodations under each Credit
Facility under which it is providing a Commitment. 

  
 41 

	 	(2)	Purposes. The Credit Facilities shall be used only for the following purposes: 

  

	 	(a)	in the case of the Revolving Facility, (i) to fund a portion of the payment to be made on account of the purchase price for the Acquisition (including payment of transaction fees and expenses), and (ii) for
general corporate purposes, including (but subject to section 2.1(7)) for other acquisitions and the issuance of letters of credit; and 

  

	 	(b)	in the case of the Term Facility, to fund a portion of the payment to be made on account of the purchase price for the Acquisition (including payment of transaction fees and expenses). 

 

	 	(3)	Accommodations. Subject to the terms and conditions of this agreement, Accommodations shall be made available under the Credit Facilities as follows: 

Revolving Facility: 

Prime Rate Advances 
 CDOR Rate
Advances 
 Base Rate Advances 

US LIBOR Advances 

Bankers’ Acceptances and BA Equivalent Loans 

Letters of Credit 
 Term
Facility: 
 Prime Rate Advances 

CDOR Rate Advances 
 Base Rate
Advances 
 US LIBOR Advances 

Bankers’ Acceptances and BA Equivalent Loans 

provided that: 
  

	 	(a)	the aggregate Face Amount of Letters of Credit issued under the Revolving Facility shall not at any time exceed US$125 million; 

 

	 	(b)	Advances under the Revolving Facility may be made as Swingline Advances by the Swingline Lender on a temporary basis in accordance with section 2.1(6); and 

 

	 	(c)	Accommodations by way of Bankers’ Acceptances and BA Equivalent Loans under a Credit Facility shall be made on a concurrent basis, whereby the Borrower shall request: 

 

	 	(i)	BA Equivalent Loans from each Non-Acceptance Lender under such Credit Facility; and 

  

	 	(ii)	Bankers’ Acceptances from all other Lenders under such Credit Facility. 

 Subject to the
terms and conditions herein set forth, Accommodations will be made available by way of such numbers of draws and up to such dates as are set forth below, namely: 

  
 42 

	 	(d)	Revolving Facility – in multiple draws from time to time up to but not including the Final Maturity Date; and 

  

	 	(e)	Term Facility – in one draw only, on the Closing Date as set forth in the following paragraph; 

provided that, subject to the following paragraph, Accommodations by way of Conversion and Rollover shall be available under each Credit
Facility up to the Final Maturity Date. 
 The Term Facility will be available in a single draw, to be made on or before November 2,
2012 at an exchange rate (in the case of the portion of such draw in Canadian Dollars, in this paragraph the “C$ Initial Advance”) of 1.0014 Canadian Dollars for each US Dollar. Any unused amount of the Term Facility shall be
permanently canceled as of the close of business on November 2, 2012 and the aggregate Commitments in respect of the Term Facility shall be permanently reduced and canceled in an equal amount (on a pro rata basis among the Term Lenders based
upon their respective Commitments). Notwithstanding anything else in this agreement to the contrary, for the purpose of determining the Principal Outstanding under the Term Facility at all times under this agreement, the conversion of the C$ Initial
Advance will be made at the exchange rate referenced in the first sentence of this paragraph and the C$ Initial Advance may not be converted or maintained thereafter into or as any other Type of Advance other than a Prime Rate Advance or a CDOR Rate
Advance. 
  

	 	(4)	Minimum Amounts. Subject to the Majority Lenders under the relevant Credit Facility in any specific instance waiving such requirement, the following minimum amounts shall apply in respect of certain Borrowings
and Drawings requested under each Accommodation Request: 

  

	 	(a)	each Bankers’ Acceptance shall be in a Face Amount of C$100,000 or a whole multiple thereof; 

  

	 	(b)	the aggregate Face Amount of Bankers’ Acceptances shall be at least C$3 million (including the aggregate principal amount payable on maturity of concurrent BA Equivalent Loans by virtue of section 4.11),
rounded up to a whole multiple of C$100,000 (and in respect of which each of (i) the aggregate of the Face Amount of such Bankers’ Acceptances, and (ii) the aggregate such principal amount of such BA Equivalent Loans will also be a
whole multiple of C$100,000); 

  

	 	(c)	the aggregate principal amount of the Prime Rate Advances or CDOR Rate Advances requested in a Borrowing shall be at least C$5 million (or C$3 million in the case of CDOR Rate Advances) and (other than with
respect to the Term Facility) a whole multiple of C$100,000; 

  

	 	(d)	the aggregate principal amount of the US LIBOR Advances requested in any Borrowing shall be at least US$5 million and a whole multiple of US$100,000; and 

 

	 	(e)	the aggregate principal amount of the Base Rate Advances requested in a Borrowing shall be at least US$5 million and a whole multiple of US$100,000. 

  
 43 

	 	(5)	Revolving Repayments. 

  

	 	(a)	The Revolving Facility is a so-called “revolving” facility and amounts repaid thereunder may be made the subject of a further Accommodation (subject to compliance with
the terms and conditions of this agreement); repayments of the Revolving Facility in accordance with its revolving nature shall be made on one Business Day’s notice for Prime Rate Advances, CDOR Rate Advances, and Base Rate Advances, and three
Business Days’ notice for US LIBOR Advances. 

  

	 	(b)	The Term Facility shall not revolve, and amounts repaid or prepaid thereunder may not be the subject of any further Accommodations (other than by way of Conversions or Rollovers) and shall give rise to a cancellation
and reduction of the relevant Commitments as set forth in section 2.4. 

  

	 	(6)	Swingline Advances. In the event that the Borrower has a requirement for a Prime Rate Advance or a Base Rate Advance in same day funds in an amount up to US$30 million (or the Equivalent Amount in
Canadian Dollars) in the aggregate, the Borrower may (subject to satisfaction of applicable terms and conditions hereof) obtain such Advance (in this section 2.1(6), a “Swingline Advance”) under the Revolving Facility from
the Swingline Lender alone. Each Swingline Advance (i) may be made on the same day’s telephone request made on or before 1:00 pm (Toronto time) on such day in the case of Swingline Advances denominated in Canadian Dollars, and 12:00 noon
(Toronto time) on such day in the case of Swingline Advances denominated in US Dollars, by the Borrower providing to the Swingline Lender (with a copy to the Administrative Agent) the same information as would be contained in a Borrowing Notice
(which shall be deemed to have been so provided), or (ii) shall be made by the Swingline Lender, without notice from or to the Borrower, in respect of any overdraft in any one or more of the Borrower’s accounts with the Swingline Lender by
deposit to such account of an amount at least equal to such overdraft. Each Swingline Advance shall be deemed to constitute a utilization of the Revolving Facility funded wholly by the Swingline Lender (and, prior to the repayment of such Swingline
Advance with the proceeds of an Accommodation under the Revolving Facility provided by all of the Revolving Lenders, the payments on account thereof shall be allocated wholly to the Swingline Lender) and may not be outstanding more than seven
Business Days. The Borrower shall, on or before the seventh Business Day forthwith following the making of a Swingline Advance, repay such Swingline Advance in full, together with all accrued or unpaid interest, either from its own resources or with
the proceeds of an Accommodation under the Revolving Facility, failing which the Borrower shall be deemed to have delivered to the Administrative Agent at the close of business in Vancouver on such seventh Business Day an Accommodation Request
requesting a Prime Rate Advance or a Base Rate Advance (as the case may be) under the Revolving Facility in the amount of such Swingline Advance. The proceeds of the funding by the other Revolving Lenders under such Accommodation Request shall be
applied by the Administrative Agent to repay the Swingline Lender that portion of the Swingline Advance that does not represent the Swingline Lender’s pro rata share (as a Revolving Lender) of the requested Prime Rate Advance or Base
Rate Advance. For certainty, it is acknowledged and agreed that the Revolving Lenders shall be obligated to fund their Rateable Portions of any Prime Rate Advance or Base Rate Advance required by this Section 2.1(6) regardless of whether
(i) a Default or Event of Default has occurred and is continuing, (ii) an Accommodation Request has actually been delivered by the Borrower or (iii) any other condition in Section 6.2 has been satisfied, fulfilled or otherwise
met. 

  

	 	(7)	Acquisitions. In the event that (other than with respect to the Acquisition) the Borrower wishes to utilize proceeds of one or more Accommodations under the Revolving Facility to, or to provide funds to any
subsidiary, affiliate or other person to, finance an offer to acquire (which shall include an offer to purchase securities, solicitation of an offer to sell securities, an acceptance of an offer to sell securities, whether or not the offer to sell
was solicited, or any combination of the foregoing) outstanding securities of any person (the “Target”) which constitutes a “take-over bid” pursuant to applicable corporate or securities legislation (in any case, a
“Takeover”), and if the Takeover is, under applicable Law, such as to require the board of directors of the Target to prepare a directors circular or like document that includes either a recommendation to accept or reject the
Takeover or a statement that they are unable to make or are not making a recommendation, then either: 

  

  
 44 

	 	(a)	prior to or concurrently with delivery to the Administrative Agent of any Accommodation Request, the proceeds of which are intended to be utilized as aforesaid, the Borrower shall provide to the Administrative Agent
evidence satisfactory to the Administrative Agent (acting reasonably) that the board of directors or like body of the Target, or the holders of all of the securities of the Target, has or have approved, accepted, or recommended to security holders
acceptance of, the Takeover; 

 or: 
  

	 	(b)	the following steps shall be followed: 

  

	 	(i)	at least five Business Days prior to the delivery to the Administrative Agent of such Accommodation Request, the Borrower shall advise the Administrative Agent (who shall promptly advise each Revolving Lender) of the
particulars of such Takeover; 

  

	 	(ii)	within three Business Days of being so advised, each Revolving Lender shall notify the Administrative Agent of such Lender’s determination as to whether it is willing to fund under such Accommodation Request;
provided that, in the event such Lender does not so notify the Administrative Agent within such three Business Day period, such Lender shall be deemed to have notified the Administrative Agent that it is not so willing to fund; and

  

	 	(iii)	the Administrative Agent shall promptly notify the Borrower of each such Lender’s determination; 

and in the event that any Revolving Lender (each, a “Declining Lender”) has notified or is deemed to have notified the
Administrative Agent that it is not willing to fund under such Accommodation Request, then such Declining Lender shall have no obligation to fund under such Accommodation Request, notwithstanding any other provision of this agreement to the
contrary; provided, however, that each other Revolving Lender (each, a “Financing Lender”) which has advised the Administrative Agent it is willing to fund under such Accommodation Request shall have an obligation, up to the amount
of its unused Commitment under the Revolving Facility, to fund under such Accommodation Request, and such funding shall be provided by each Financing Lender in accordance with the ratio, determined prior to the provision of such funding, that the
Commitment of such Financing Lender under the Revolving Facility bears to the aggregate the Commitments of all the Financing Lenders under the Revolving Facility. 

If Accommodations are provided in the manner contemplated by section 2.1(7)(b) and there are Declining Lenders, subsequent Accommodations under
the Revolving Facility shall be funded firstly by Declining Lenders having unused Commitments under the Revolving Facility, and subsequent repayments under the Revolving Facility shall be applied firstly to Financing Lenders, in each case until such
time as the proportion that the amount of each Revolving Lender’s Principal Outstanding under the Revolving Facility bears to the aggregate Principal Outstanding under the Revolving Facility is equal to such proportion which would have been in
effect but for the application of this section 2.1(7). 

  
 45 

 For greater certainty, in no event shall a Declining Lender be obligated to purchase any
participation in accordance with section 14.1(2) to the extent that the shortfall in such Declining Lender’s share of outstanding Obligations under the Revolving Facility is attributable to the operation of this section 2.1(7). 

 

	 	(8)	Accordion. Upon written notice to the Administrative Agent, the Borrower may at any time request an increase in the aggregate Commitments under the Revolving Facility of up to US$300 million. The Lenders at
the time of such request shall not be obliged to participate in any requested increase and the Borrower may pursue and include new lenders to assist in funding the increase in the Revolving Facility; provided that the addition of new lenders shall
be subject to: 

  

	 	(a)	the consent of the Administrative Agent and the Fronting Lender; 

  

	 	(b)	the provision by the Administrative Agent of notice of the submission by the Borrower of a request under this section 2.1(8) not less than five Business Days’ prior to the date of any increase in the aggregate
Commitments; and 

  

	 	(c)	the execution and delivery by such new lenders of such accession or similar agreements as may be advised by Lenders’ Counsel in order that such new lenders shall be bound by the terms and conditions of this
agreement. 

  

	 	(9)	Lending Offices. A Lender may from time to time by written notice to the Administrative Agent (with a copy to the Borrower) make an election to change a Lending Office to another office, branch or location;
provided that, unless an Event of Default shall have occurred and be continuing, the consent of the Borrower to a change under this section 2.1(9) shall be required (which consent shall not be unreasonably withheld, it being acknowledged that the
Borrower may reasonably object to a change if the result thereof would be to subject the Borrower to a gross-up obligation under section 11.6 or other Increased Costs). 

 

	2.2	Repayment. 

  

	 	(1)	Credit Facilities Repayment. 

  

	 	(a)	Revolving Facility – The Principal Outstanding under the Revolving Facility will be repaid in full on the Final Maturity Date. 

  

	 	(b)	Term Facility – The Principal Outstanding under the Term Facility will be repaid as set forth in this section 2.2(1)(b). In this section 2.2(1)(b), the term “Closing Date Balance (Term)” means the
Principal Outstanding under the Term Facility at the close of business in Toronto on the Closing Date before giving effect to any payment described in the immediately following items (i) to (v). 

 

	 	(i)	On the first anniversary of the last day of the Financial Quarter in which the Closing Date occurs, 5% of the Closing Date Balance (Term) will be repaid; 

 

	 	(ii)	On the last day of each of the four Financial Quarters immediately following the payment in (i), 1.25% of the Closing Date Balance (Term) will be repaid; 

 

	 	(iii)	On the last day of each of the four Financial Quarters immediately following the last of the payments in (ii), 2.5% of the Closing Date Balance (Term) will be repaid; 

  
 46 

	 	(iv)	On the last day of each of the three Financial Quarters immediately following the last of the payments in (iii), 2.5% of the Closing Date Balance (Term) will be repaid; and 

 

	 	(v)	On the Final Maturity Date, the remaining Principal Outstanding under the Term Facility will be repaid in full. 

  

	 	(2)	Interest. At the same time as any mandatory or voluntary repayment or prepayment of principal is made hereunder, the Borrower shall also pay all accrued and unpaid interest on the principal amount being repaid or
prepaid. 

  

	 	(3)	Foreign Exchange Fluctuations. If at any time the US$ Equivalent Principal Outstanding under a Credit Facility (subject in the case of the Term Facility to the last paragraph of section 2.1(3)), as calculated by
the Administrative Agent as at the first Business Day of a calendar month, shall exceed 105% of the aggregate Commitments of the Lenders thereunder by virtue of a change in the Equivalent Amount in US Dollars of Accommodations made in any other
currencies, the Borrower shall within five Business Days following demand therefor by the Administrative Agent at the Borrower’s election either (i) pay to the Administrative Agent on account of the Principal Outstanding such amount as is
required to reduce such US$ Equivalent Principal Outstanding to, or below, such aggregate Commitments, or (ii) pay such excess amount to the Administrative Agent, to be held by the Administrative Agent as cash collateral security for the
Obligations under the relevant Credit Facility as they come due. 

  

	 	(4)	Exceeding Commitments. Subject to section 2.2(3), if at any time the US$ Equivalent Principal Outstanding under a Credit Facility (subject in the case of the Term Facility to the last paragraph of section
2.1(3)), as calculated by the Administrative Agent, shall exceed the aggregate Commitments of the Lenders under such Credit Facility, the Borrower shall within five Business Days following demand therefor by the Administrative Agent pay to the
Administrative Agent such amount as is required to reduce such US$ Equivalent Principal Outstanding to, or below, such aggregate Commitments. 

  

	2.3	Mandatory Reductions and Prepayments. 

  

	 	(1)	Term Facility. Upon the occurrence of any of events set forth in (a) to (d) below, the Borrower shall be required to apply the net proceeds of such event to the mandatory prepayment of the Term Facility in
accordance with the terms of this section 2.3, which prepayment shall permanently reduce the availability of the Term Facility: 

  

	 	(a)	subject to section 2.3(3), Asset Dispositions by any MDA Party or MDA Pledgor, excluding Permitted Dispositions; provided that it will not be necessary to effect a mandatory prepayment in the event that, both before and
on a pro forma basis after such disposition, the ratio of Consolidated Debt to EBITDA does not exceed 1.75:1 (and, in the event that such ratio does exceed 1.75:1 after such Asset Disposition, it shall be necessary to effect such a prepayment
only to the extent necessary to bring such ratio down to 1.75:1); provided further that, in the case of a disposition of Orbital Receivables, it shall be necessary to effect a mandatory prepayment hereunder in the full amount of the net proceeds
thereof notwithstanding the said ratio; 

  

	 	(b)	the incurrence by any MDA Party of indebtedness for borrowed money, including obligations with respect to bankers’ acceptances, but excluding: 

 

	 	(i)	the Credit Facilities; 

  
 47 

	 	(ii)	the 2012 LC Facility (or its replacement); 

  

	 	(iii)	proceeds of Purchase Money Mortgages; 

  

	 	(iv)	Convertible Debentures; and 

  

	 	(v)	transactions between the Borrower and any subsidiary of the Borrower or between subsidiaries of the Borrower; and 

  

	 	(c)	the issuance of equity securities by the Borrower; provided that, for the purposes of this section 2.3(1)(c), the issuance of Convertible Debentures shall be deemed to be an issuance of equity securities irrespective of
the treatment of same under IFRS; provided further that it will not be necessary to effect a mandatory prepayment: 

  

	 	(i)	in respect of an issuance of equity securities to the extent that the proceeds of such equity issuance are used in an acquisition within six months of such issuance, if the pro forma (post-acquisition) ratio of
Consolidated Debt to EBITDA (the “Post-Acquisition Ratio”) does not exceed the ratio of Consolidated Debt to EBITDA as reported by the Borrower as at the most recently-completed Financial Quarter (the “Pre-Acquisition Ratio”) (and, in the event that such Post-Acquisition Ratio does exceed such Pre-Acquisition Ratio, it shall be necessary to effect such a prepayment
only to the extent necessary to bring such Post-Acquisition Ratio down to such Pre-Acquisition Ratio); 

  

	 	(ii)	in any case, in respect of an issuance of equity securities if, both before and on a pro forma basis after such issuance, the ratio of Consolidated Debt to EBITDA does not exceed 1.75:1 (and, in the event that
such ratio does exceed 1.75:1 after such issuance, it shall be necessary to effect such a prepayment only to the extent necessary to bring such ratio down to 1.75:1); or 

 

	 	(iii)	in respect of the issuance of equity securities pursuant to any equity compensation plan of the Borrower. 

  

	 	(d)	subject to section 2.3(3), receipt by the Borrower of any monies by way of a rebate, refund or reduction of the purchase price payable under the Purchase Agreement (including pursuant to litigation or a settlement
thereof); provided that it will not be necessary to effect a mandatory prepayment in the event that, both before and on a pro forma basis after such receipt, the ratio of Consolidated Debt to EBITDA does not exceed 1.75:1 (and, in the event
that such ratio does exceed 1.75:1 after such receipt, it shall be necessary to effect such a prepayment only to the extent necessary to bring such ratio down to 1.75:1); 

 

	 	(2)	Reduction and Repayment. Any reduction in the Commitments, and resulting prepayment, under the Term Facility by virtue of an event described in section 2.3(1) shall be applied or allocated to each Lender in an
amount equal to the Prepayment Portion applicable to such Lender of the amount of net proceeds in respect of such event, and shall be applied in inverse order against amounts payable in accordance with section 2.2(1)(b) (excluding any amounts
payable on the Final Maturity Date). In the event and to the extent that any one or more holders of Prudential Notes and 2012 Notes shall fail to accept a Prepayment Offer under and as defined in the relevant note purchase agreement, all amounts
that would have been used to redeem such Prudential Notes or 2012 Notes under such note purchase agreement shall be used to effect a further prepayment under this section 2.3, which further prepayment will be allocated to the Lenders pro rata
on the basis of their respective Principal Outstanding under the Term Facility. 

  
 48 

	 	(3)	Reinvestment. In the event that the Borrower shall effect an Asset Disposition, or receive monies by way of a rebate, refund or reduction of the purchase price payable under the Purchase Agreement (including
pursuant to litigation or a settlement thereof), in circumstances where a mandatory prepayment would have been required by section 2.3(1) but for the fact that the Term Facility had been retired in full, the Borrower shall ensure that the proceeds
of such Asset Disposition, rebate, refund or reduction shall be reinvested in the Borrower’s business within 180 days of receipt. 

  

	2.4	Voluntary Reductions and Prepayments. 

  

	 	(1)	Reductions of Revolving Commitments. The Borrower shall have the right at any time and from time to time, without penalty or bonus, upon at least three Business Days’ prior notice to the Administrative Agent
in the form of schedule 6 annexed hereto, to terminate the whole or reduce in part on a permanent basis the unused portion of the Commitments of the Revolving Lenders under the Revolving Facility (pro rata among the Revolving Lenders on the
basis of their respective Commitments under the Revolving Facility); provided that each partial reduction shall be in an aggregate minimum amount of US$5 million and multiples in excess thereof of US$1 million. 

 

	 	(2)	Prepayment of Credit Facilities. In addition to repayments made under the Revolving Facility in accordance with the revolving nature thereof under section 2.1(5)(a), the Borrower shall have the right at any time
and from time to time, without penalty or bonus but subject to section 11.5, upon at least three Business Days’ prior notice to the Administrative Agent, to effect a voluntary prepayment on account of the Principal Outstanding under either or
both Credit Facilities, which prepayment (subject to the Majority Lenders under the relevant Credit Facility in any specific instance waiving such requirement) shall be in an aggregate minimum amount of $5 million and multiples in excess
thereof of $1 million or in the full amount of the Principal Outstanding under such Credit Facility; provided that any prepayment under this section 2.4(2) shall be applied firstly against the Term Facility. 

 

	 	(3)	Order. Any prepayment under section 2.4(2) shall reduce the Commitments of the Lenders in respect of the relevant Credit Facility on a permanent basis (pro rata among such Lenders on the basis of their
respective Commitments under such Credit Facility), and in the case of the Term Facility shall be applied pro rata against amounts payable in accordance with section 2.2(1)(b) (excluding any amounts payable on the relevant Final Maturity
Date). 

  

	 	(4)	Return of Letters of Credit. The Borrower may at any time and from time to time, at its option, return any outstanding Letter of Credit to the Fronting Lender for cancellation. 

 

	2.5	Payments. 

  

	 	(1)	Payment Account. The Borrower shall make each payment to be made hereunder not later than 10:00 a.m. (Vancouver time) in the currency of the Accommodation or other obligation in respect of which such payment is
made (be it Canadian Dollars, US Dollars or another currency) on the day (subject to section 2.5(2)) when due, in immediately available funds, by deposit of such funds to the applicable Payment Account. 

  
 49 

	 	(2)	Business Day. Subject to the next following sentence, whenever any payment hereunder is due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension
of time shall in such case be included in the computation of interest or fees, as the case may be. If any such extension would cause any payment of interest or fees on an Accommodation to be made in the next following calendar month, such payment
shall be made on the last preceding Business Day. 

  

	 	(3)	Application. Unless otherwise provided herein, all amounts received by the Administrative Agent on account of the Obligations shall be applied by the Administrative Agent as follows: 

 

	 	(a)	first, to fulfil the Borrower’s obligation to pay accrued and unpaid interest due and owing (including interest on overdue interest and on other amounts), excluding interest accruing on BA Equivalent Loans;

  

	 	(b)	second, to fulfil the Borrower’s obligation to pay any fees which are due and owing to the Lenders hereunder (including those fees set forth in section 2.7), and any Increased Costs and other unpaid costs, expenses
and other amounts payable to the Lenders in connection with any of the Credit Facility Documents; 

  

	 	(c)	third, to fulfil the Borrower’s obligation to pay interest accruing on BA Equivalent Loans and any amounts due and owing on account of Principal Outstanding under the Credit Facilities (including in respect of the
Face Amount of outstanding Bankers’ Acceptances and Letters of Credit); and 

  

	 	(d)	fourth, to the Borrower or as any court of competent jurisdiction may otherwise direct; 

 and in
respect of which each claim at the same level as set forth in paragraph (a), (b) or (c) above shall rank pari passu in all respects. 
  

	 	(4)	Pro Rata Basis. All payments of principal, interest and fees to the Lenders, unless otherwise expressly stipulated, shall be made for the account of, and distributed by the Administrative Agent to, the Lenders
pro rata on the basis of the amounts respectively owed to them as (as applicable) principal, interest or fees under the relevant Credit Facility. 

 

	 	(5)	Netting. If on any date liquidated amounts (other than interest and fees) would be payable under this agreement in the same currency by the Borrower to certain Lenders and by such Lenders to the Borrower, then on
such date, at the election of and upon notice from the Administrative Agent stating that netting is to apply to such payments, each such party’s obligations to make payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by the Borrower to such Lenders exceeds the aggregate amount that would otherwise have been payable by such Lenders to the Borrower or vice versa, such obligations shall be
replaced by an obligation upon the Borrower or such Lenders by whom the larger aggregate amount would have been payable to pay to the other the excess of the larger aggregate amount over the smaller aggregate amount. 

 

	 	(6)	Payments Free of Set-off. Except as set forth in section 2.5(5), each payment made by the Borrower on account of the Obligations shall be made without set-off or counterclaim. 

  
 50 

	2.6	Computations. 

  

	 	(1)	Basis. All computations of: 

  

	 	(a)	interest based on the Prime Rate or the Base Rate shall be made by the Administrative Agent on the basis of a year of 365 days or, in the case of a leap year, 366 days and the actual number of days (including the first
day but excluding the last day) occurring in the period for which such interest is payable; and 

  

	 	(b)	interest based on US LIBOR shall be made by the Administrative Agent on the basis of a year of 360 days and the actual number of days (including the first day but excluding the last day) occurring in the period for
which such interest is payable. 

 Computation of fees under sections 2.7(a), 4.6 and 5.8(1) and (2) shall be made by the
Administrative Agent on the basis of a year of 365 days or (in the case of a leap year and only with respect to fees under sections 2.7(a) and 5.8(1) and (2)) 366 days and the actual number of days (including the first day but excluding the last
day) occurring in the period for which such fees are payable. Each determination by the Administrative Agent of an amount of interest, Discount Proceeds or fees payable by the Borrower hereunder shall be conclusive and binding for all purposes,
absent demonstrated error. 
  

	 	(2)	Interest Act (Canada). 

  

	 	(a)	For purposes of disclosure pursuant to the Interest Act (Canada), the yearly rate of interest to which any rate of interest based on US LIBOR is equivalent may be determined by multiplying the applicable rate by
a fraction, the numerator of which is the number of days to the same calendar date in the next calendar year (or 365 days if the calculation is made as of February 29) and the denominator of which is 360. 

 

	 	(b)	In no event shall aggregate “interest” as defined in Section 347 of the Criminal Code, R.S.C. 1985, c. C-46 (as the same shall be amended, replaced or re-enacted from time to time) payable by the Borrower to the Administrative Agent or any Lender under this agreement or any other Credit Facility Document exceed the effective annual rate of interest on the
“credit advanced” (as defined in that section) under this agreement or such other Credit Facility Document lawfully permitted under that section and, if any payment, collection or demand pursuant to this agreement or any other Credit
Facility Document in respect of “interest” (as defined in that section) is determined to be contrary to the provisions of that section, such payment, collection or demand shall be deemed to have been made by mutual mistake of the
Administrative Agent, the Lenders and the Borrower. For the purposes of this agreement and each other Credit Facility Document to which the Borrower is a party, the effective annual rate of interest payable by the Borrower shall be determined in
accordance with generally accepted actuarial practices and principles over the term of the loans on the basis of annual compounding for the lawfully permitted rate of interest and, in the event of dispute, a certificate of a Fellow of the Canadian
Institute of Actuaries appointed by the Administrative Agent for the account of the Borrower will be conclusive for the purpose of such determination in the absence of evidence to the contrary. 

 

	2.7	Fees. 

 The Borrower shall pay to the Administrative Agent the following fees, calculated as follows:

  

	 	(a)	 a standby fee (for the account of the Revolving Lenders pro rata on the basis of their respective
Commitments under the Revolving Facility) payable by the Borrower at the rate per annum equal to the applicable percentage set forth in 

  
 51 

	 	
the definition of Applicable Margin, calculated on the difference from time to time between the aggregate Commitments under the Revolving Facility (as reduced in accordance with section 2.4) and
the aggregate Principal Outstanding under the Revolving Facility (excluding Swingline Advances); such fee shall be payable in US Dollars, calculated daily from the Closing Date to the Final Maturity Date, and payable quarterly in arrears on the
first day of each January, April, July, and October and on the Final Maturity Date; and 

  

	 	(b)	the fees agreed with the Administrative Agent in a letter of even date. 

  

	2.8	Interest on Overdue Amounts. 

 Except as otherwise provided in this agreement, each amount owed by the
Borrower to a Lender which is not paid when due (whether at stated maturity, on demand, by acceleration or otherwise) shall bear interest (both before and after judgment), from the date on which such amount is due until such amount is paid in full,
payable on demand, at a rate per annum equal at all times to the Base Rate (in the case of amounts denominated in US Dollars) or the Prime Rate (in the case of amounts denominated in Canadian Dollars), in each case plus two (2%) percent per annum in
excess of the Applicable Margin. 
  

	2.9	Where Borrower Fails to Pay. 

 Unless the Administrative Agent has been notified in writing by the
Borrower at least one Business Day prior to the date on which any payment to be made by the Borrower hereunder is due that the Borrower does not intend to remit such payment, the Administrative Agent may, in its discretion, assume that the Borrower
has remitted such payment when so due and the Administrative Agent may, in its discretion and in reliance upon such assumption, make available to each relevant Lender on such payment date an amount equal to the portion of such payment which is due
to such Lender pursuant to this agreement. If the Borrower does not in fact remit such payment to the Administrative Agent, the Administrative Agent shall promptly notify each such Lender and such Lender shall forthwith on demand repay to the
Administrative Agent an amount equal to the portion of such assumed payment made available to such Lender, together with interest thereon until the date of repayment thereof at a rate determined by the Administrative Agent (such rate to be
conclusive and binding on such Lender) in accordance with the Administrative Agent’s usual banking practice for similar advances to financial institutions of like standing as such Lender but in no event greater than, as the case may be, the
Prime Rate or the Base Rate. 
  

	2.10	Account Debit Authorization. 

 The Borrower authorizes and directs the Administrative Agent, in its
discretion, to automatically debit, by mechanical, electronic or manual means, all bank accounts of the Borrower maintained with the Administrative Agent for all amounts due and payable under this agreement on account of principal, interest and fees
hereunder comprised in the Obligations. 
  

	2.11	Administrative Agent’s Discretion on Allocation. 

 In the event that it is not practicable to: 

 

	 	(a)	allocate to each relevant Lender its Rateable Portion of an Accommodation in accordance with section 3.2 or 4.1(2) by reason of the occurrence of circumstances described in Article 11; or 

 

	 	(b)	allocate a Drawing among the relevant Lenders in accordance with section 4.1(2) such that the aggregate amount of Bankers’ Acceptances required to be accepted hereunder complies with the minimum amounts or
increments set forth in section 2.1(4); 

  
 52 

 the Administrative Agent is authorized by the Borrower and each relevant Lender to make such allocation as the
Administrative Agent determines in its sole and unfettered discretion may be equitable in the circumstances. All fees in respect of and repayments in connection with any such Accommodation, as well as future Accommodations, shall be adjusted as
among the relevant Lenders by the Administrative Agent accordingly. 
  

	2.12	Rollover and Conversion. 

  

	 	(1)	General. Subject to the terms and conditions of this agreement, the Borrower may from time to time request that any Bankers’ Acceptance or type of Advance or any portion thereof be rolled over or converted
in accordance with the provisions hereof. 

  

	 	(2)	Request. Each request by the Borrower for a Rollover or Conversion shall be made by the delivery of a duly completed and executed Accommodation Request to the Administrative Agent and the provisions of Article 3
or Article 4 shall apply to each request for a Rollover or Conversion as if such request were a request thereunder for a Borrowing or a Drawing (as the case may be). 

 

	 	(3)	Effective Date. Each Rollover or Conversion of a CDOR Rate Advance, a US LIBOR Advance or Bankers’ Acceptance shall be made effective as of, in the case of a CDOR Rate Advance or a LIBOR Advance, the last
day of the subsisting Interest Period and, in the case of a Bankers’ Acceptance, the maturity date applicable thereto. 

  

	 	(4)	Failure to Elect. If the Borrower does not deliver an Accommodation Request at or before the time required by section 2.12(2) and: 

 

	 	(a)	in the case of a Bankers’ Acceptance fails to give three Business Days prior notice that it will pay to the Administrative Agent for the account of the applicable Lender the Face Amount thereof on the maturity date
or if the Borrower gives such notice but fails to act in accordance with it, the Borrower shall be deemed to have requested a Conversion of the Face Amount thereof to a Prime Rate Advance and all of the provisions hereof relating to a Prime Rate
Advance shall apply thereto; 

  

	 	(b)	in the case of a CDOR Rate Advance, fails to give two Business Days prior notice that it will pay to the Administrative Agent for the account of the applicable Lender the principal amount thereof at the end of the
relevant Interest Period or if the Borrower gives such notice but fails to act in such accordance with it, the Borrower shall be deemed to have requested a Rollover of such Advance for a further Interest Period of one1 month, and all of the provisions hereof applicable to CDOR Rate Advances shall apply thereto; or 

  

	 	(c)	in the case of a US LIBOR Advance, fails to give three Business Days prior notice that it will pay to the Administrative Agent for the account of the applicable Lender the principal amount thereof at the end of the
relevant Interest Period or if the Borrower gives such notice but fails to act in such accordance with it, the Borrower shall be deemed to have requested a Rollover of such Advance for a further Interest Period of one month, and all of the
provisions hereof applicable to US LIBOR Advances shall apply thereto. 

  

	1 	Please note that the Second Amendment to the 2012 Credit Agreement dated May 14, 2014, called for replacement of the word “one” with the word “two” in this Section 2.12(4)(b). We have assumed
this only referred to the first instance of the word “one”, and have left the second instance unchanged. 

  
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	2.13	Extensions of Final Maturity Date. 

  

	 	(1)	The Borrower may, at its option, by delivering to the Administrative Agent a written extension request, request the Lenders to extend the Final Maturity Date, provided that (a) this request cannot be made
more than once in any calendar year and (b) the requested Final Maturity Date not exceed four years from the effective date of such requested extension. 

  

	 	(2)	Promptly after receipt from the Borrower of an executed extension request, the Administrative Agent shall deliver to each Lender a copy of such request, and each such Lender shall, within 30 days after receipt of such
extension request (the “Election Date”), advise the Administrative Agent in writing whether such Lender will agree to extend its Final Maturity Date; provided that if any Lender fails to so advise the Administrative Agent by
the Election Date, then such Lender shall be deemed to have advised the Administrative Agent that it will not agree to extend its Final Maturity Date. The Administrative Agent shall promptly notify the Borrower if any Lender advises that it will not
agree to extend its Final Maturity Date. Subject to any replacement of Non-Extending Lenders under Section 11.7, the Administrative Agent shall only extend the Final Maturity Date upon the agreement of
the Majority Lenders, and any such extension shall apply only to those Lenders which provided their consent to such extension (the “Extending Lenders”). The determination of each Lender whether or not to extend the Final Maturity
Date applicable to it shall be made by each individual Lender in its sole discretion. 

  

	 	(3)	As soon as all of the Lenders have advised, or are deemed to have advised, the Administrative Agent whether or not they will be extending the Final Maturity Date, the Agent shall either: 

 

	 	(a)	deliver to the Borrower (with a copy to each such Lender) a written extension signed by the Administrative Agent; or 

  

	 	(b)	notify the Borrower that the request for extension has been denied. 

  

	 	(4)	If the extension is approved by less than all of the Lenders, then the Administrative Agent shall also advise the Borrower of any Lender(s) which did not agree to the requested extension (each, a “Non-Extending Lender”), each Non-Extending Lender’s Rateable Portion of the Obligations then outstanding and the amount, if any, by which each Extending Lender
is prepared to increase its Commitment in the event the Borrower proposes to assign the Commitment of a Non-Extending Lender under Section 11.7. 

 

	 	(5)	Upon the delivery to the Borrower of a written extension, the current Final Maturity Date of the Extending Lenders shall be extended for up to four years as specified in such written extension and the current Final
Maturity Date for the Non-Extending Lenders will remain unchanged. 

  

	 	(6)	Each Non-Extending Lender shall be deemed to be an Affected Lender for the purposes of Section 11.7. 

 

	 	(7)	Clauses (1) through (6) of this Section 2.13 shall apply from time to time to permit successive extensions to the Final Maturity Date prior to the then current Final Maturity Date of the Extending Lenders;
provided that, unless agreed otherwise by the Borrower, the Administrative Agent and any Non-Extending Lender, such Non-Extending Lender shall be excluded from
this Section 2.13 with respect to any future extensions. 

  
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 Article 3 

ADVANCES 
  

	3.1	Advances. 

  

	 	(1)	Commitments. 

  

	 	(a)	Each Revolving Lender agrees (on a several basis with the other Revolving Lenders, up to the amount of such Lender’s Commitment under the Revolving Facility), on the terms and conditions herein set forth, to make
Advances under the Revolving Facility. 

  

	 	(b)	Each Term Lender agrees (on a several basis with the other Term Lenders, up to the amount of such Lender’s Commitment under the Term Facility), on the terms and conditions herein set forth, to make an Advance under
the Term Facility on the Closing Date. 

  

	 	(2)	Amounts; Availability. The aggregate principal amount of each Borrowing shall comply with, and the availability thereof shall be subject to, section 2.1(4). 

 

	3.2	Making the Advances. 

  

	 	(1)	Notice. Each Borrowing shall be made on at least three Business Days’ (in the case of US LIBOR Advances) or two Business Days’ (in the case of CDOR Rate Advances) or one Business Day’s (in the case
of other types of Advance) prior notice given not later than 10:00 a.m. (Local Time) by the Borrower to the Administrative Agent, and the Administrative Agent shall give to each relevant Lender prompt notice thereof and of such Lender’s
Rateable Portion of each type of Borrowing to be made under the Borrowing. Each such notice of a Borrowing shall be given by way of an Accommodation Request or by telephone (confirmed promptly in writing), with the same information as would be
contained in an Accommodation Request, including the requested date of such Borrowing and the aggregate amount of each type of Advance comprising such Borrowing. 

  

	 	(2)	Lender Funding. Except in connection with a Rollover or Conversion (other than a Conversion from one currency to another), each Lender shall, before 10:00 a.m. (Local Time) on the date and in the currency of the
requested Borrowing, deposit to the applicable Payment Account in immediately available funds such Lender’s Rateable Portion (subject to section 2.11) of each type of Advance comprising such Borrowing. Promptly upon receipt by the
Administrative Agent of such funds and upon fulfilment of the applicable conditions set forth in Article 6, the Administrative Agent will make such funds available to the Borrower by debiting the Payment Account (or causing such account to be
debited), and by crediting such account as the Borrower shall designate (or causing such account to be credited) with such Advances. 

  

	 	(3)	 Failure by Lender to Fund. Unless the Administrative Agent shall have received notice from a Lender prior
to the date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s Rateable Portion of each type of Advance comprising such Borrowing, the Administrative Agent may assume that such Lender has made
each such Rateable Portion available to the Administrative Agent on the date of such Borrowing in accordance with section 3.2(2) and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date
corresponding amounts. If and to the extent that such Lender shall not have made its Rateable Portion available to the Administrative Agent, such Lender shall pay such corresponding amounts to the Administrative Agent forthwith on demand. If such
Lender 

  
 55 

	 	
shall pay such corresponding amounts to the Administrative Agent, the amounts so paid shall constitute such Lender’s Rateable Portion of such Borrowing for the purposes of this agreement.
The Administrative Agent shall also be entitled to recover from such Lender interest on such corresponding amounts, for each day from the date such amounts were made available by the Administrative Agent to the Borrower until the date such amounts
are repaid to the Administrative Agent, at a rate determined by the Administrative Agent (such rate to be conclusive and binding on such Lender) in accordance with the Administrative Agent’s usual banking practice for similar advances to
financial institutions of like standing as such Lender but in no event greater than, as the case may be, the Prime Rate or the Base Rate, together with the Administrative Agent’s reasonable administrative fee. If such Lender shall not pay such
corresponding amounts to the Administrative Agent forthwith on demand, the Borrower shall pay such corresponding amounts (together with accrued and unpaid interest at the applicable rate herein set forth for each type of Advance) to the
Administrative Agent within two Business Days of demand being made upon it. 

  

	 	(4)	Ibid. The Administrative Agent shall notify the Borrower of the failure of any Lender to make an Advance if: 

  

	 	(a)	such failure has not been remedied within seven days; or 

  

	 	(b)	the Administrative Agent reasonably believes that such failure was caused by any reason other than a technical failure or as a result of a defect in the arrangements hereunder for funding Advances. 

The Administrative Agent shall not be liable to the Borrower or any Lender in respect of notice given or not given pursuant to this section
3.2(4). In the event of the continuing failure by any Lender (in this section 3.2(4), the “defaulting Lender”) to make an Advance, the Borrower and the Administrative Agent shall use their reasonable best efforts to arrange for one
or more other persons (in this section 3.2(4), the “assuming Lender”) reasonably satisfactory to the Borrower and the Administrative Agent to assume all or a portion of the relevant Commitments and acquire the outstanding
Accommodations and other rights and interests of the defaulting Lender hereunder. The assuming Lender and defaulting Lender shall execute all such documents as may be reasonably required by the Administrative Agent and the Borrower to effect such
assumption and acquisition. 
  

	3.3	Interest on Advances. 

 The Borrower shall pay interest on the unpaid principal amount of each Advance at
the following rates per annum: 
  

	 	(a)	Prime Rate Advances. If and so long as such Advance is a Prime Rate Advance, at a rate per annum equal at all times to the sum of the Prime Rate in effect from time to time plus the Applicable Margin, calculated
daily and payable in Canadian Dollars in arrears: 

  

	 	(i)	monthly on the last Business Day of each month; and 

  

	 	(ii)	when such Prime Rate Advance becomes due and payable in full or is the subject of a Conversion. 

  

	 	(b)	CDOR Rate Advances. If and so long as such Advance is a CDOR Rate Advance, at a rate per annum equal at all times during each Interest Period for such CDOR Rate Advance to the sum of the CDOR Rate for such
Interest Period plus the Applicable Margin, calculated daily and payable in Canadian Dollars: 

  
 56 

	 	(i)	at the end of each Interest Period (except where such Interest Period exceeds three months in duration, in which case such interest shall be payable on the dates falling every three months following the commencement of
the Interest Period and, finally, at the end of such Interest Period); and 

  

	 	(ii)	when such CDOR Rate Advance becomes due and payable in full or is the subject of a Conversion. 

  

	 	(c)	Base Rate Advances. If and so long as such Advance is a Base Rate Advance, at a rate per annum equal at all times to the sum of the Base Rate in effect from time to time plus the Applicable Margin, calculated
daily and payable in US Dollars in arrears: 

  

	 	(i)	monthly on the last Business Day of each month; and 

  

	 	(ii)	when such Base Rate Advance becomes due and payable in full or is the subject of a Conversion. 

  

	 	(d)	US LIBOR Advances. If and so long as such Advance is a US LIBOR Advance, at a rate per annum equal at all times during each Interest Period for such US LIBOR Advance to the sum of US LIBOR for such Interest
Period plus the Applicable Margin, calculated daily and payable in US Dollars: 

  

	 	(i)	at the end of each Interest Period (except where such Interest Period exceeds three months in duration, in which case such interest shall be payable on the dates falling every three months following the commencement of
the Interest Period and, finally, at the end of such Interest Period); and 

  

	 	(ii)	when such US LIBOR Advance becomes due and payable in full or is the subject of a Conversion. 

Article 4 

BANKERS’ ACCEPTANCES 
  

	4.1	Acceptances. 

  

	 	(1)	Commitment. Each Lender agrees (on a several basis with the other Lenders, up to the amount of such Lender’s Commitment under the relevant Credit Facility), on the terms and conditions herein set forth, to
create and purchase Bankers’ Acceptances under the Credit Facilities. 

  

	 	(2)	Amounts. Each Drawing shall be in a Face Amount not less than the minimum amount (or requisite multiple in excess thereof) set forth in, and the availability thereof shall be subject to, section 2.1(4), and such
Drawing shall consist of the creation of Bankers’ Acceptances, effected or arranged by the relevant Lenders in accordance with section 4.4, rateably according to their respective relevant Commitments (subject to section 2.11).

  
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	4.2	Drawdown Request. 

  

	 	(1)	Notice. Each Drawing shall be made on at least two Business Days’ prior notice, given not later than 10:00 a.m. (Vancouver time) by the Borrower to the Administrative Agent and the Administrative Agent shall
give to each Lender prompt notice thereof and of such Lender’s Rateable Portion thereof (subject to section 2.11). Each such notice of a Drawing shall be given by way of an Accommodation Request or by telephone (confirmed promptly in writing)
with the same information as would be contained in an Accommodation Request, including the requested Drawing Date and the Face Amounts of the Bankers’ Acceptances. 

 

	 	(2)	Maturity. The Borrower shall not request in an Accommodation Request a term for Bankers’ Acceptances which would end on a date subsequent to the Final Maturity Date or that would conflict with any repayment
stipulated herein. 

  

	4.3	Form of Bankers’ Acceptances. 

  

	 	(1)	Form. Each Bankers’ Acceptance shall: 

  

	 	(a)	be in a Face Amount allowing for conformance with section 4.1(2); 

  

	 	(b)	be dated the Drawing Date; 

  

	 	(c)	mature and be payable by the Borrower (in common with all other Bankers’ Acceptances created in connection with such Drawing) on a Business Day which occurs approximately 30 to 180 days after the date thereof or
such other periods as shall be acceptable to the relevant Lender(s), in each case subject to availability; and 

  

	 	(d)	be in a form satisfactory to the relevant Lender(s). 

  

	 	(2)	Applicability of DBNA. It is the intention of the parties that, unless the Lender is utilizing a non-interest bearing bill of exchange as defined in the Bills of
Exchange Act (Canada), each Bankers’ Acceptance accepted by a Lender under this agreement shall be issued in the form of a “depository bill” (as that term is defined in the Depository Bills and Notes Act (Canada) (the
“DBNA”)), be deposited with CDS Clearing and Depository Services Inc. and be made payable to “CDS & Co.” The Administrative Agent and the Lenders shall effect the following practices and procedures and, subject to
the approval of the Majority Lenders under the applicable Credit Facility, establish and notify the Borrower and the Lenders of any additional procedures, consistent with the terms of this agreement and the requirements of the DBNA, as are
reasonably necessary to accomplish this intention: 

  

	 	(a)	each Bankers’ Acceptance accepted and purchased by a Lender hereunder shall have marked prominently and legibly on its face and within its text, at or before the time of issue, the words “This is a depository
bill subject to the Depository Bills and Notes Act”; 

  

	 	(b)	any reference to authentication of that Bankers’ Acceptance will be removed; and 

  

	 	(c)	that Bankers’ Acceptance shall not be marked with any words prohibiting negotiation, transfer or assignment of it or of an interest in it. 

 

	 	(3)	Grace. The Borrower hereby waives presentment for payment and any other defence to payment of any amounts due in respect of any Bankers’ Acceptance, and hereby renounces, and shall not claim, any days of
grace for the payment of any Bankers’ Acceptance. 

  
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	4.4	Completion of Bankers’ Acceptance. 

 Upon receipt of the notice from the Administrative Agent
pursuant to section 4.2(1), each relevant Lender is thereupon authorized to execute Bankers’ Acceptances as the duly authorized attorney of the Borrower pursuant to section 4.8, in accordance with the particulars provided by the Administrative
Agent. 
  

	4.5	Proceeds. 

 In the case of a Drawing, each relevant Lender shall, for same day value on the Drawing Date
specified by the Borrower in the applicable Drawing Notice, credit the Payment Account with the applicable Discount Proceeds of the Bankers’ Acceptances purchased by such Lender for the account of the Borrower. 

 

	4.6	Stamping Fee. 

 The Borrower shall pay to each relevant Lender a stamping fee in Canadian dollars. Such
stamping fee shall be payable by the Borrower in advance, on the Drawing Date, and shall be calculated on the Face Amount of such Bankers’ Acceptances on the basis of the number of days in the term of such Bankers’ Acceptances (including
the Drawing Date but excluding the maturity date) at a rate per annum equal to the applicable percentage set forth in the definition of Applicable Margin. The parties acknowledge that, inasmuch as the Discount Proceeds are net of the stamping fee,
the Borrower shall be deemed to have paid the stamping fee to a Lender upon that Lender paying the applicable Discount Proceeds pursuant to section 4.5. 
  

	4.7	Payment at Maturity. 

 The Borrower shall pay to the Administrative Agent, and there shall become due and
payable, on the maturity date for each Bankers’ Acceptance an amount in immediately available funds equal to the Face Amount of the Bankers’ Acceptance. The Borrower shall make each payment hereunder in respect of Bankers’ Acceptances
by deposit of the required funds to the applicable Payment Account. Upon receipt of such payment, the Administrative Agent will promptly thereafter cause such payment to be distributed to the relevant Lenders in like funds relating to the payment of
Bankers’ Acceptances rateably (based on the proportion that the Face Amount of Bankers’ Acceptances accepted by a relevant Lender maturing on the relevant date bears to the Face Amount of Bankers’ Acceptances accepted by all relevant
Lenders maturing on such date). Such payment to the Administrative Agent shall satisfy the Borrower’s obligations under a Bankers’ Acceptance to which it relates and the accepting institution shall thereafter be solely responsible for the
payment of such Bankers’ Acceptance. 
 Unless the Borrower notifies the Administrative Agent prior to 10:00 a.m. (Vancouver time) two Business
Days’ immediately prior to the maturity date of a Bankers’ Acceptance that the Borrower intends to pay to the Administrative Agent the Face Amount thereof with funds other than the proceeds of Advances, (i) the Borrower shall be
deemed to have given an Accommodation Request to the Administrative Agent under the relevant Credit Facility requesting the relevant Lenders to make a Prime Rate Advance on such maturity date in an amount equal to such Face Amount, and (ii) the
relevant Lenders shall, on such maturity date, make such Prime Rate Advance and apply the proceeds thereof to payment of such Face Amount. 
  

	4.8	Power of Attorney Respecting Bankers’ Acceptances. 

 In order to facilitate issues of Bankers’
Acceptances pursuant to this agreement, the Borrower authorizes each Lender, and for this purpose appoints each Lender its lawful attorney (with full power of substitution), to complete, sign and endorse drafts issued in accordance with section 4.4
on its behalf in 

  
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handwritten or by facsimile or mechanical signature or otherwise and, once so completed, signed and endorsed, and following acceptance of them as Bankers’ Acceptance under this agreement,
then purchase, discount or negotiate such Bankers’ Acceptances in accordance with the provisions of this Article 4. Drafts so completed, signed, endorsed and negotiated on behalf of the Borrower by any Lender shall bind the Borrower as
fully and effectively as if so performed by an authorized officer of the Borrower. 
 No such Lender shall be liable for any damage, loss or other claim
arising by reason of any loss or improper use of any draft or Bankers’ Acceptances executed in blank except any such damage, loss or claim arising by reason of the gross negligence, wilful misconduct or fraud of such Lender or its officers,
employees, agents or representatives or arising by reason of such Lender or its officers, employees, agents or representatives failing to exercise such care in the custody and safekeeping of such draft or Bankers’ Acceptances as it would
exercise in the custody and safekeeping of similar property owned by it. 
  

	4.9	Prepayments. 

 Except as required by section 2.2(3) or (4), 2.3 or 4.10, no payment of the Face Amount of
a Bankers’ Acceptance shall be made by the Borrower to a Lender prior to the maturity date thereof. Any such required payment made before the applicable maturity date shall be held in an interest bearing account by the Administrative Agent as
cash collateral security to provide for or to secure payment of the Face Amount of such outstanding Bankers’ Acceptance upon maturity, and the Borrower hereby irrevocably authorizes and directs the Administrative Agent to apply such amount on
the maturity date for the relevant Drawing to the repayment of the relevant Bankers’ Acceptance. Interest on amounts held on deposit by the Administrative Agent for such deposits shall be paid to the Borrower on the maturity date for the
relevant Drawing; provided that, if an Event of Default has occurred, such interest shall be retained by the Administrative Agent and applied to the Obligations. Any such required payment made before the applicable maturity date by the Borrower to
the Administrative Agent shall satisfy the Borrower’s obligations under the Bankers’ Acceptance to which it relates. The accepting institution shall thereafter be solely responsible for the payment of the Bankers’ Acceptance and shall
indemnify and hold the Borrower harmless against any liabilities, costs or expenses incurred by the Borrower as a result of any failure by such Lender to pay the Bankers’ Acceptance in accordance with its terms. 

 

	4.10	Default. 

 Upon the occurrence of an Event of Default and the Administrative Agent declaring the
Obligations to be due and payable pursuant to section 12.2, and notwithstanding the date of maturity of any outstanding Bankers’ Acceptances, an amount equal to the Face Amount of all outstanding Bankers’ Acceptances which the Lenders are
required to honour shall thereupon forthwith become due and payable by the Borrower to the Administrative Agent. 
  

	4.11	Non-Acceptance Lenders. 

 The parties acknowledge that a Lender
(a “Non-Acceptance Lender”) may not be permitted by applicable Law to, or may not by virtue of customary market practices, stamp or accept commercial drafts. A
Non-Acceptance Lender shall, in lieu of accepting and purchasing Bankers’ Acceptances on a Drawing, make a BA Equivalent Loan. 

The amount of each BA Equivalent Loan shall be equal to the Discount Proceeds which would be realized from a hypothetical sale of those Bankers’
Acceptances which that Non-Acceptance Lender would otherwise be required to accept and purchase as part of such Drawing. To determine the amount of those Discount Proceeds, the hypothetical sale shall be
deemed to take place at the Non-Acceptance Discount Rate for that BA Equivalent Loan. 
 Any BA Equivalent Loan
shall be made on the relevant Drawing Date, and shall remain outstanding for the term of the relevant Bankers’ Acceptances. 

  
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 For greater certainty, concurrently with the making of a BA Equivalent Loan, a
Non-Acceptance Lender shall be entitled to deduct therefrom an amount equal to the stamping fee which that Lender would otherwise be entitled to receive pursuant to section 4.6 as part of that BA Equivalent
Loan if that BA Equivalent Loan was a Bankers’ Acceptance, based on the amount of principal and interest payable on the maturity date of that BA Equivalent Loan. The parties acknowledge that, inasmuch as Discount Proceeds are net of the
stamping fees, no further deduction from the BA Equivalent Loan will be necessary on account of the amount equal to such stamping fee. 
 On the maturity
date for the Bankers’ Acceptances required by the Borrower, the Borrower shall pay to each Non-Acceptance Lender the amount of such Lender’s BA Equivalent Loan plus interest on the principal amount
of that BA Equivalent Loan calculated at the applicable Non-Acceptance Discount Rate (in effect the date such BA Equivalent Loan was made) from the date of acceptance to but excluding the maturity date of that
BA Equivalent Loan. 
 Article 5 

LETTERS OF CREDIT 
  

	5.1	Letters of Credit Commitment. 

  

	 	(1)	Issuance. Each Revolving Lender agrees (on a several basis with the other Revolving Lenders), up to the amount of such Lender’s Commitment under the Revolving Facility and subject to section 2.1(3)(a), on
the terms and conditions herein set forth, to issue Letters of Credit under the Revolving Facility for the account of the Borrower. 

  

	 	(2)	Types of Issuance. Letters of Credit shall be issued by the Fronting Lender on behalf of the Lenders on a “fronting” basis as contemplated by section 5.2. 

 

	 	(3)	Fronting Fee. The Borrower shall pay a fronting fee in respect of Letters of Credit as provided in section 5.8(2). 

  

	5.2	Letters of Credit. 

 In the event that a Letter of Credit shall be issued on behalf of the Lenders by the
Fronting Lender: 
  

	 	(a)	the Principal Outstanding in respect of such Letter of Credit shall be considered to be allocated among the Revolving Lenders pro rata on the basis of their respective Rateable Portions, and on the basis that
each such Revolving Lender is liable to, and by entering into this agreement agrees to, indemnify and hold harmless the Fronting Lender in relation to the Fronting Lender’s liability as issuer of such Letter of Credit to the extent of the
amount of such pro rata share of such liability; 

  

	 	(b)	for greater certainty and without limiting the generality of section 14.1, the Principal Outstanding among the Revolving Lenders shall be adjusted in the circumstances and in the manner contemplated by section 14.1 in
order to reflect the Issuance by the Fronting Lender on behalf of the Revolving Lenders. 

  

	5.3	[not used] 

  

	5.4	Notice of Issuance. 

  

	 	(1)	 Notice. Each Issuance shall be made on at least five Business Days’ prior notice, given in the form
of the Fronting Lender’s customary letter of credit application (an “Issue Notice”) not later than 10:00 a.m. (Local Time) by the Borrower to the Fronting Lender (with a copy of each such Notice to the Administrative Agent).
Such Issue Notice shall be 

  
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accompanied by any documents and information pertaining to such request as the Fronting Lender may reasonably request, including, without limitation, documentary and other evidence of the
proposed beneficiary’s identity to enable the Fronting Lender to verify the beneficiary’s identity or to comply with Section 326 of the PATRIOT Act and any other applicable Law. In addition, the Borrower shall execute and deliver the
Fronting Lender’s customary form of letter of credit indemnity agreement; provided that, if and to the extent that there is any inconsistency between the terms of this agreement and the terms of such customary form of indemnity agreement, the
terms of this agreement shall prevail. 

  

	 	(2)	Maturity. Each Letter of Credit shall have an expiration date on a Business Day which occurs no more than 365 days after the Issue Date (or a later date to which the Fronting Lender agrees). 

 

	5.5	Form of Letter of Credit. 

 Each Letter of Credit shall: 

 

	 	(a)	be dated the Issue Date; and 

  

	 	(b)	comply with the definition of Letter of Credit and shall otherwise be satisfactory in form and substance to the Fronting Lender. 

Except to the extent otherwise expressly provided herein or in another Credit Facility Document, the Uniform Customs or, as the case may be, ISP98 shall apply
to and govern each Letter of Credit. 
  

	5.6	Procedure for Issuance of Letters of Credit. 

  

	 	(1)	Issue. On the Issue Date, the Fronting Lender will complete and issue a Letter of Credit in favour of the Beneficiary as specified by the Borrower in its Issue Notice. 

 

	 	(2)	Time for Honour. No Letter of Credit shall require payment against a conforming draft to be made thereunder on the same Business Day upon which such draft is presented, if such presentation is made after 11:00
a.m. (local time at the place of presentation) on such Business Day. 

  

	 	(3)	Text. Prior to an Issue Date, the Borrower shall specify a precise description of the documents and the verbatim text of any certificate to be presented by the Beneficiary prior to payment under the Letter of
Credit. The Fronting Lender may require changes in any such documents or certificate. 

  

	 	(4)	Conformity. In determining whether to pay under a Letter of Credit, the Fronting Lender shall be responsible only to determine that the documents and certificates required to be delivered under such Letter of
Credit have been delivered and that they comply on their face with the requirements of such Letter of Credit. 

  

	5.7	Payment of Amounts Drawn Under Letters of Credit. 

  

	 	(1)	Obligation to Reimburse. In the event of any request for a drawing under any Letter of Credit, the Fronting Lender may notify the Borrower (with a copy of the notice to the Administrative Agent) on or before the
date on which it intends to honour such drawing. The Borrower (whether or not such notice is given) shall reimburse the Fronting Lender on demand by the Fronting Lender in Canadian Dollars, US Dollars or such other currency, as the case may be, of
an amount, in immediately available funds, equal to the amount of such drawing together with interest on such amount from and including the date of honouring such drawing until payment is made as if it were an Advance of the nature set forth in
section 5.7(2) below. 

  
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	 	(2)	Deemed Advance. Unless the Borrower reimburses the Fronting Lender for the amount of such drawing prior to 10:00 a.m. (Local Time) on the fifth Business Day after such drawing (with concurrent advice to the
Administrative Agent): 

  

	 	(a)	the Borrower shall be deemed to have given an Accommodation Request to the Administrative Agent requesting the Revolving Lenders to make an Advance under the Revolving Facility, on such fifth Business Day, in the form
and in an amount (subject to the minimum amount for the requested Advance in accordance with section 2.1(4) as follows: 

  

	 	(i)	in respect of a drawing in Canadian Dollars, a Prime Rate Advance in the amount of such drawing; 

  

	 	(ii)	in respect of a drawing in US Dollars, a Base Rate Advance in the amount of such drawing; and 

  

	 	(iii)	in respect of a drawing in a currency other than Canadian Dollars or US Dollars, a Base Rate Advance in the Equivalent Amount in US Dollars of such drawing; and 

 

	 	(b)	subject to the terms and conditions of this agreement (including those set forth in Article 6), the Revolving Lenders shall make such Advance in accordance with Article 3 and the Borrower shall apply the proceeds
thereof (or required portion of such proceeds) to the reimbursement of the Fronting Lender for the amount of such drawing. 

  

	 	(3)	Application of Reimbursement. Any reimbursement payment (including interest) made to the Fronting Lender by the Borrower shall be for the account of the Fronting Lender. 

 

	5.8	Fees. 

  

	 	(1)	Issue Fee. The Borrower shall pay to the Administrative Agent (for the account of the Revolving Lenders, pro rata on the basis of their Rateable Portions), in respect of each Letter of Credit outstanding
during any portion of a Financial Quarter, an issue fee equal to the applicable rate per annum set forth in the definition of Applicable Margin multiplied by an amount equal to the daily undrawn portion of the Face Amount of such Letter of Credit.
Such issue fee shall be payable by the Borrower in the currency of issue in arrears; provided that the Borrower shall pay the Equivalent Amount in US Dollars of any fees payable in respect of Letters of Credit issued in a currency other than
Canadian Dollars or US Dollars. Each such payment shall be made within three Business Days after the date that is the earlier to occur of: 

  

	 	(a)	the last day of such Financial Quarter; and 

  

	 	(b)	the termination of such Letter of Credit; 

 and shall be determined for a period equal to the
number of days that the Letter of Credit was outstanding during such Financial Quarter. 
  

	 	(2)	 Fronting Fee. The Borrower shall pay to the Administrative Agent (for the account of the Fronting Lender),
in respect of each Letter of Credit outstanding during any portion of a Financial Quarter in which there is more than one Lender, a fronting fee calculated at 

  
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such rate as shall from time to time be agreed on an annual basis by the Borrower and the Fronting Lender (in each case in their sole discretion) and set forth in such agreement or other document
as shall be so agreed. Such fronting fee shall be payable by the Borrower in the currency of issue in arrears; provided that the Borrower shall pay the Equivalent Amount in US Dollars of any fees payable in respect of Letters of Credit issued in a
currency other than Canadian Dollars or US Dollars. Each such payment shall be made within three Business Days after the date that is the earlier to occur of: 

  

	 	(a)	the last day of such Financial Quarter; and 

  

	 	(b)	the termination of such Letter of Credit; 

 and shall be determined for a period equal to the
number of days that the Letter of Credit was outstanding during such Financial Quarter. 
  

	 	(3)	Administration Fee. The Borrower shall pay to the Fronting Lender, upon the issuance, amendment or transfer of each Letter of Credit, the Fronting Lender’s standard documentary and administrative charges for
issuing, amending or transferring standby or commercial letters of credit or letters of guarantee of a similar amount, term and risk. 

  

	5.9	Obligations Absolute. 

 The obligation of the Borrower to reimburse the Fronting Lender for drawings made
under any Letter of Credit shall be unconditional and irrevocable and shall be fulfilled strictly in accordance with the terms of this agreement under all circumstances, including: 

 

	 	(a)	any lack of validity or enforceability of any Letter of Credit; 

  

	 	(b)	the existence of any claim, set-off, defence or other right which the Borrower may have at any time against a Beneficiary or any transferee of any Letter of Credit (or any persons
for whom any such transferee may be acting), any Lender or any other person, whether in connection with this agreement, the Credit Facility Documents, the transactions contemplated herein and therein or any unrelated transaction (including any
underlying transaction between the Borrower or an affiliate and the Beneficiary of such Letter of Credit); 

  

	 	(c)	any draft, demand, certificate or any other document presented under any Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect;

  

	 	(d)	payment by the Fronting Lender under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not comply with the terms of such Letter of Credit (provided that such
payment does not breach the standards of reasonable care specified in the Uniform Customs or disentitle the Fronting Lender to reimbursement under ISP98, in each case as stated on its face to be applicable to such Letter of Credit; or

  

	 	(e)	the fact that a Default or an Event of Default shall have occurred and be continuing. 

  

	5.10	Indemnification; Nature of Lenders’ Duties. 

  

	 	(1)	 Indemnity. In addition to amounts payable as elsewhere provided in this Article 5, the Borrower hereby
agrees to protect, indemnify, pay and save (i) the Fronting Lender, (ii) each Revolving Lender, and (iii) their respective directors, officers, employees, agents 

  
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and representatives harmless from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including legal fees and expenses) which the indemnitee may
incur or be subject to as a consequence, direct or indirect, of: 

  

	 	(a)	the issuance of any Letter of Credit at the request of the Borrower, other than as a result of the breach of the standards of reasonable care specified in the Uniform Customs or where the Fronting Lender would not be
entitled to the foregoing indemnification under ISP98, in each case as stated on its face to be applicable to such Letter of Credit; or 

  

	 	(b)	the failure of the Fronting Lender to honour a drawing under any Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or governmental
authority (all such acts or omissions called in this section 5.10, “Government Acts”). 

  

	 	(2)	Risk. As between (i) the Borrower, and (ii) the Fronting Lender and each Revolving Lender, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued
hereunder, by the respective Beneficiaries of such Letters of Credit and, without limitation of the foregoing, none of (iii) the Fronting Lender, or (iv) the Revolving Lenders, shall be responsible for: 

 

	 	(a)	the form, validity, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of such Letters of Credit, even if it should in fact prove to be in
any or all respects invalid, inaccurate, fraudulent or forged; 

  

	 	(b)	the invalidity or insufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason; 

  

	 	(c)	errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they are in cipher; 

 

	 	(d)	errors in interpretation of technical terms; 

  

	 	(e)	any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; 

 

	 	(f)	the misapplication by the Beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; and 

  

	 	(g)	any consequences arising from causes beyond the control of the Fronting Lender, including any Government Acts. 

None of the above shall affect, impair or prevent the vesting of any of the rights or powers of (i) the Fronting Lender, or (ii) the
Revolving Lenders hereunder. No action taken or omitted by the Fronting Lender under or in connection with any Letter of Credit issued by it or the related certificates, if taken or omitted in good faith, shall put (iii) the Fronting Lender, or
(iv) the Revolving Lenders, under any resulting liability to the Borrower (provided that the Fronting Lender acts in accordance with the standards of reasonable care specified in the Uniform Customs and otherwise as may be required under ISP98,
in each case as stated on its face to be applicable to the respective Letter of Credit). 

  
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	5.11	Default, Maturity. 

 Upon the earlier to occur of (i) the Final Maturity Date, and (ii) the
occurrence of an Event of Default and the Administrative Agent declaring the Obligations to be due and payable pursuant to section 12.2, and notwithstanding the expiration date of any outstanding Letters of Credit, an amount equal to the Face Amount
of all outstanding Letters of Credit, and all accrued and unpaid fees owing by the Borrower in respect of the issuance of Letters of Credit pursuant to section 5.8, if any, shall thereupon forthwith become due and payable by the Borrower to the
Administrative Agent and, except for any amount payable in respect of unpaid fees as aforesaid, such amount shall be held in a trust account by the Administrative Agent and applied against amounts payable under such Letters of Credit in respect of
any drawing thereunder. 
 The Borrower shall pay to the Administrative Agent the aforesaid amount in respect of both any Letter of Credit outstanding
hereunder and any Letter of Credit which is the subject matter of any order, judgment, injunction or other such determination (in this section 5.11, a “Judicial Order”) restricting payment by the Fronting Lender under and in
accordance with such Letter of Credit or extending the Fronting Lender’s liability under such Letter of Credit beyond the expiration date stated therein. Payment in respect of each such Letter of Credit shall be due in the currency in which
such Letter of Credit is stated to be payable. 
 The Administrative Agent shall with respect to each Letter of Credit in respect of which a payment has
been made as aforesaid, upon the later of: 
  

	 	(a)	the date on which any final and non-appealable order, judgment or other such determination has been rendered or issued either terminating the applicable Judicial Order or
permanently enjoining the Fronting Lender from paying under such Letter of Credit; and 

  

	 	(b)	the earlier of: 

  

	 	(i)	the date on which either the original counterpart of the Letter of Credit is delivered to the Administrative Agent for cancellation or the Fronting Lender is released by the Beneficiary from any further obligations in
respect thereof; and 

  

	 	(ii)	the expiry (to the extent permitted by any applicable Law) of such Letter of Credit; 

 pay to the Borrower an
amount equal to the difference between the amount paid to the Administrative Agent by the Borrower pursuant to this section 5.11 and the aggregate amount paid by the Fronting Lender under such Letter of Credit. 

Article 6 
 CLOSING
CONDITIONS 
  

	6.1	Closing Conditions to Initial Availability. 

 The Borrower shall not be entitled to an Accommodation
under either Credit Facility in accordance with this agreement unless the conditions precedent set forth in this section 6.1 have been satisfied, fulfilled or otherwise met to the satisfaction of the Lenders on the Closing Date, in each case in a
manner and in form and substance satisfactory to the Lenders. 

  
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	 	(1)	Documents. The Credit Facility Documents (other than (i) each Lender’s form of application, undertaking, indemnity and agreement in respect of Letters of Credit yet to be issued, and
(ii) Bankers’ Acceptances yet to be issued) shall have been executed and delivered to the Administrative Agent (or, in the case of the Security, the Collateral Agent), and all registrations, filings or recordings necessary or desirable to
preserve, protect or perfect the enforceability and priority of the Liens created by the Security (subject only to Permitted Liens) shall have been completed (or arrangements satisfactory to the Lenders for the foregoing shall have been made);
provided that, to the extent any Collateral (including the creation or perfection of any Lien) is not or cannot be provided on the Closing Date (other than (i) the pledge and perfection of Collateral with respect to which a security interest
may be perfected solely by the filing of financing statements under the UCC or PPSA of any jurisdiction, (ii) the pledge and perfection of security interests in the capital of Designated Subsidiaries with respect to which a lien may be
perfected upon closing by the delivery of a share certificate, and (iii) the filing of a short-form intellectual property filing with the United States Patent and Trademark Office, the United States Copyright Office or the Canadian Intellectual
Property Office) after the Borrower’s use of commercially reasonable efforts to do so without undue burden or expense, then the provision and/or perfection, as applicable, of any such Collateral shall not constitute a condition precedent to the
availability of the Credit Facilities, but may instead be provided within 90 days after the Closing Date, subject to such extensions as are reasonably agreed by the Administrative Agent. 

 

	 	(2)	Constating Documents. The Administrative Agent shall have received certified copies of the constating documents of each MDA Party and MDA Pledgor. 

 

	 	(3)	Resolutions. The Administrative Agent shall have received certified copies of resolutions of the boards of directors, managing members and similar controlling entities of each MDA Party and MDA Pledgor
authorizing the execution, delivery and performance of the Credit Facility Documents to which it is a party. The Administrative Agent shall have received certified copies of resolutions of the boards of directors of each entity whose shares or other
ownership interests constitute Collateral, confirming or approving the security interest granted by the relevant MDA Pledgor and the transfer of the said shares or interests to the Collateral Agent or its nominee or an assignee from either thereof.

  

	 	(4)	Incumbency. The Administrative Agent shall have received a certificate of the secretary or an assistant secretary respectively of each MDA Party and MDA Pledgor certifying the names and the true signatures of the
officers authorized to sign the Credit Facility Documents to which it is a party. 

  

	 	(5)	Good Standing. The Administrative Agent shall have received a certificate of good standing or like certificate in respect of each MDA Party and MDA Pledgor issued by appropriate government officials of its
jurisdiction of formation and each other jurisdiction where failure to register or qualify as a foreign or extra-provincial corporation would have or would reasonably be expected to have an MAE. 

 

	 	(6)	Compliance Certificate. The Administrative Agent shall have received a compliance certificate under section 10.1(8)(c) based on the Financial Quarter ended June 30, 2012, on a pro forma basis after
giving effect to the Acquisition. 

  

	 	(7)	Fees. The Administrative Agent, Royal Bank (as Lead Arranger) and the Lenders shall have received payment of all fees and all reimbursable expenses then due. 

 

	 	(8)	Representations. 

  

	 	(a)	The Specified Representations shall be true and correct in all material respects on and as of the Closing Date as though made on and as of such date and the Administrative Agent shall have received a certificate of a
Senior Officer of the Borrower so certifying to the Lenders; and 

  
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	 	(b)	the Specified Purchase Agreement Representations shall be true and correct in all material respects on and as of the Closing Date as though made on and as of such date and the Administrative Agent shall have received
such evidence thereof as shall be satisfactory to the Administrative Agent; 

 provided that: 

 

	 	(i)	to the extent that any of the foregoing representations with respect to SS/L and its subsidiaries are qualified or subject to “material adverse effect”, the definition thereof shall be “Material Adverse
Effect” as defined in the Purchase Agreement; and 

  

	 	(ii)	the accuracy of the Specified Purchase Agreement Representations shall constitute a condition precedent hereunder only to the extent that the accuracy of such representations is a condition to the Borrower’s or any
of its affiliates’ obligation to consummate the Acquisition under the Purchase Agreement. 

  

	 	(9)	Financial Statements. The Administrative Agent shall have received the audited consolidated financial statements of the Borrower for the Financial Year ended December 31, 2011 and the unaudited consolidated
financial statements of the Borrower for the Financial Quarter ended June 30, 2012. 

  

	 	(10)	Opinions. The Administrative Agent shall have received favourable opinions of counsel to the MDA Parties and MDA Pledgors. 

  

	 	(11)	Acquisition.The Acquisition shall have been consummated, or substantially concurrently with the initial Borrowing under the Credit Facilities shall be consummated, in accordance with the Purchase Agreement and no
provision of the Purchase Agreement shall have been waived, amended, supplemented or otherwise modified in a manner material and adverse to the Lenders without the consent of the Lenders (it being understood that any modification, amendment,
consent, waiver or determination in respect of the definition of “Material Adverse Effect” in the Purchase Agreement shall be deemed to be material and adverse to the interest of the Lenders and that any reduction of less than 15% (for
greater certainty, exclusive of reductions in price in accordance with section 2.4 of the Purchase Agreement) in the amount of the purchase price shall not be deemed to be material and adverse to the interest of the Lenders. 

 

	 	(12)	No Change. From March 31, 2012 to October 31, 2012, there shall have been no “Material Adverse Effect” (as defined in the Purchase Agreement). 

 

	 	(13)	Existing Credit Agreement. The credit facility under the Existing Credit Agreement shall have been canceled substantially concurrently with the initial availment under the Credit Facilities. 

 

	 	(14)	SS/L Credit Agreement. The credit facility under the SS/L Credit Agreement shall have been canceled and any guarantees and security interests related thereto shall have been released and discharged substantially
concurrently with the initial availment under the Credit Facilities. 

  

	 	(15)	Know your Customer, etc. The Lenders shall have received, at least five days before the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your
customer”, anti-terrorist and anti-money laundering rules and regulations, including the PATRIOT Act. 

  
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	6.2	General Conditions for Accommodations. 

 The Borrower shall not be entitled to any Accommodations (other
than by Conversion or Rollover) after the Closing Date unless and until the conditions precedent set forth in this section 6.2 have been satisfied, fulfilled or otherwise met, in each case in a manner and in form and substance satisfactory to the
Lenders. 
  

	 	(1)	Documents. The Credit Facility Documents (other than (i) each Lender’s form of application, undertaking, indemnity and agreement in respect of Letters of Credit yet to be issued, and
(ii) Bankers’ Acceptances yet to be issued) shall have been executed and delivered to the Administrative Agent (or, in the case of the Security, the Collateral Agent), and all registrations, filings or recordings necessary or desirable to
preserve, protect or perfect the enforceability and priority of the Liens created by the Security (subject only to Permitted Liens) shall have been completed, subject to the proviso in section 6.1(1). 

 

	 	(2)	Representations and Warranties. All of the representations and warranties of the MDA Parties and the MDA Pledgors contained herein or in any other Credit Facility Document shall be true and correct in all
material respects on and as of such date as though made on and as of such date (unless expressly stated to be made as of the Closing Date or some other specified date) and the Administrative Agent shall have received a certificate of a Senior
Officer of the Borrower so certifying to the relevant Lenders. 

  

	 	(3)	No Default. No Default or Event of Default shall have occurred and be continuing and the Administrative Agent shall have received a certificate of a Senior Officer of the Borrower so certifying to the relevant
Lenders. 

  

	 	(4)	In respect only of the first Accommodation after the Closing Date: 

  

	 	(a)	Legality. Since the date hereof, the making, maintenance and funding of the Credit Facilities shall not, in the opinion of Lenders’ Counsel, have been made unlawful for any Lender by any Law, or any change
therein, or in the published or unpublished interpretation or application thereof by any Official Body. 

  

	 	(b)	Insurance. The Borrower shall have obtained or caused to be obtained the insurance coverage contemplated by Article 9 and provided to the Administrative Agent evidence thereof (including, if requested, certified
copies of insurance policies and insurance certificates issued by its broker). 

  

	 	(c)	Permits. The Administrative Agent shall have received a certificate of a Senior Officer of the Borrower to the effect that all Permits required for the respective businesses of the MDA Parties, including those
related to Environmental Laws, are in full force and effect, except for those with respect to which the failure to obtain same does not have or could not reasonably be expected to have an MAE. 

 

	 	(d)	Litigation. There shall be no actions, suits or proceedings (whether or not purportedly on its behalf) pending or threatened against or affecting any MDA Party or MDA Pledgor before any court or other judicial or
administrative entity which have a material likelihood of being determined adversely to it and could, if so adversely determined, reasonably be expected to have an MAE. 

 

	 	(5)	Other. The relevant Lenders shall have received such supporting and other certificates and documentation as such Lenders may reasonably request. 

  
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	6.3	Conversions and Rollovers. 

 The obligation of the relevant Lenders to make any Accommodation by
Conversion or Rollover under either of the Credit Facilities shall be subject to the condition precedent that no Default or Event of Default shall have occurred and be continuing, and a Senior Officer of the Borrower shall so certify to such Lenders
in the applicable Accommodation Request. 
  

	6.4	Deemed Representation. 

 Each of the giving of any Notice and the acceptance or use by the Borrower of
the proceeds of any Accommodation shall be deemed to constitute a representation and warranty by the Borrower that on the date of such Notice and on the date of any Accommodation being provided and after giving effect thereto, the applicable
conditions precedent set forth in this Article 6 shall have been satisfied, fulfilled or otherwise met. 
  

	6.5	Conditions Solely for the Benefit of the Lenders. 

 All conditions precedent to the entitlement of the
Borrower to any Accommodations hereunder are solely for the benefit of the relevant Lenders, and no other person shall have standing to require satisfaction or fulfilment of any condition precedent or that it be otherwise met and no other person
shall be deemed to be a beneficiary of any such condition, any and all of which may be freely waived in whole or in part by such Lenders at any time such Lenders deem it advisable to do so in their sole discretion. 

 

	6.6	No Waiver. 

 The making of any Accommodations without one or more of the conditions precedent set forth
in this Article 6 having been satisfied, fulfilled or otherwise met shall not constitute a waiver by the relevant Lenders of any such condition, and such Lenders reserve the right to require that each such condition be satisfied, fulfilled or
otherwise met prior to the making of any subsequent Accommodations. 
  

	6.7	Final Date for Initial Accommodation. 

 In the event that the Closing Date does not occur prior to the
close of business of the Administrative Agent in Vancouver on November 23, 2012, all obligations of the Lenders hereunder shall forthwith terminate without the necessity of any notice to the Borrower or any other person. 

Article 7 

REPRESENTATIONS AND WARRANTIES 
 The
Borrower represents and warrants to the Lenders as set forth in this Article 7, acknowledges that the Lenders are relying thereon in entering into this agreement and providing Accommodations from time to time, agrees that no investigation at
any time made by or on behalf of the Lenders shall diminish in any respect whatsoever their right to rely thereon and agrees that all representations and warranties shall be valid and effective as of the date when given or deemed to have been given
and to such extent shall survive the execution and delivery of this agreement and the provision of Accommodations from time to time. 
  

	7.1	Existence. 

 Each MDA Party and MDA Pledgor is a corporation or other legal entity duly incorporated and
organized and is validly subsisting and in good standing under the laws of its jurisdiction of incorporation and the other jurisdictions set forth in schedule 4 annexed hereto, is duly qualified as a foreign or extra-provincial corporation or other
legal entity, as the case may be, and is in good standing in all jurisdictions where the failure to so qualify would or would reasonably be expected to have an MAE. 

  
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	7.2	Corporate Authority. 

 Each MDA Party and MDA Pledgor has full corporate (or, in the case of non-corporate entities, similar) right, power and authority to enter into, and perform its obligations under, each Credit Facility Document to which it is or will be a party, and each MDA Party has full corporate
(or, in the case of non-corporate entities, similar) power and authority to own and operate its properties and to carry on its business as now conducted or as contemplated to be conducted. 

 

	7.3	Authorization, Governmental Approvals, etc. 

 The execution and delivery of this agreement and each other
Credit Facility Document, and each other document hereby or thereby contemplated to which it is or will be a party (including by way of assignment) and the performance by it of its obligations hereunder and thereunder have been duly authorized by
all necessary action on the part of each MDA Party and MDA Pledgor. Except as set forth in schedule 8 annexed hereto, no Permit under any applicable Law or approval under any material contract, and (except for registration of the Security at public
offices for the recording of Liens, and any steps required to be taken on enforcement of the Security) no registration, qualification, designation, declaration or filing with any Official Body having jurisdiction over any MDA Party or MDA Pledgor,
is necessary therefor or to perfect the same or to preserve the benefit thereof to the Lenders. 
  

	7.4	Enforceability. 

 This agreement has been duly executed and delivered by the Borrower and constitutes,
and each other Credit Facility Document and each other document hereby or thereby contemplated to which each MDA Party and MDA Pledgor is or will be party when executed by it will constitute, its legal, valid and binding obligation, enforceable
against it in accordance with its terms, subject to such qualifications as may be set forth in the opinion of the Borrower’s counsel delivered pursuant to section 6.1. 
  

	7.5	No Breach. 

 The execution and delivery by the Borrower of this agreement, and by each MDA Party and MDA
Pledgor of each other Credit Facility Document and each other document hereby or thereby contemplated to which it is or will be a party, and the performance by it of its obligations hereunder and thereunder, do not and will not: 

 

	 	(a)	conflict with or result in a breach of any of the terms, conditions or provisions of: 

  

	 	(i)	its constating documents; 

  

	 	(ii)	subject to receipt of the approvals set forth in schedule 8 annexed hereto, any Law; 

  

	 	(iii)	subject to receipt of the approvals set forth in schedule 8 annexed hereto, any contractual restriction binding on or affecting it or its properties; or 

 

	 	(iv)	any writ, judgment, injunction, determination or award which is binding on it; or 

  

	 	(b)	result in, or require or permit: 

  

	 	(i)	the imposition of any Lien (other than Permitted Liens) on or with respect to any properties now owned or hereafter acquired by it; or 

  
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	 	(ii)	the acceleration of the maturity of any of its Debt under any contractual provision binding on or affecting it. 

  

	7.6	Litigation. 

 As at the Closing Date, the Borrower is not aware of any actions, suits or proceedings
(whether or not purportedly on its behalf) pending or threatened against or affecting any MDA Party or MDA Pledgor before any Official Body which have a material likelihood of being determined adversely to it and would, if so adversely determined,
reasonably be expected to have an MAE. 
  

	7.7	Subsidiaries. 

 As at the effective date on schedule 4 annexed hereto (i) the only subsidiaries of
the Borrower are described in schedule 4 annexed hereto, (ii) the Borrower and each subsidiary owns legally and beneficially (directly or indirectly) the respective portions of the outstanding shares in the capital of the corporations shown as
its subsidiaries in schedule 4 annexed hereto, and (iii) except as set forth in schedule 4 annexed hereto, no person (other than an MDA Party or MDA Pledgor) has any agreement, option, right or privilege, whether by Law, pre-emptive or contractual, capable of becoming an agreement or option for the purchase of securities in the capital of any Designated Subsidiary. 

As at May 1, 2015, the only Proxy Subsidiary is MDA Information Systems, LLC. 
  

	7.8	Compliance. 

 The Borrower is not aware of any basis that any MDA Party or any MDA Pledgor may be, and
neither has any MDA Party nor MDA Pledgor received notice that it is alleged to be, in breach of: 
  

	 	(a)	any Permit or mandatory requirement or directive of any Official Body having jurisdiction relating to its business or assets (including under Environmental Laws); or 

 

	 	(b)	any other Law applicable to its business or assets; 

 where such breach or alleged breach has or would
reasonably be expected to have an MAE. 
  

	7.9	No Default. 

 No Default or Event of Default has occurred and is continuing, and no default, event of
default or other breach on the part of the Borrower has occurred and is continuing under the Prudential Notes or the 2012 Notes. 
  

	7.10	Material Contracts. 

 All material contracts to which any MDA Party is a party are in full force and
effect, all conditions precedent thereunder have been satisfied or waived, no MDA Party is in breach thereunder, and as at the Closing Date the Borrower is not aware of any breach thereunder by any counterparty, save for any such matter which has
not had and would not reasonably be expected to have an MAE. 
  

	7.11	Permits. 

 All Permits (including environmental Permits) as are required to conduct the respective
businesses of the MDA Parties have been obtained or are expected to be obtained in the normal course, save where failure to obtain same has not had and would not reasonably be expected to have an MAE. 

  
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	7.12	Ownership of Assets. 

 Each of the MDA Parties owns or has legally enforceable interests in all assets
and property (including intellectual property) necessary to the operation of their respective businesses (save where failure to own or have same has not had and would not reasonably be expected to have an MAE), and each MDA Pledgor owns or has
interests in all Collateral pledged by it, in each case free and clear of all Liens other than Permitted Liens. 
  

	7.13	Tax Returns. 

 Each MDA Party has filed all material Tax returns which are required to be filed and has
paid all Taxes which have become due pursuant to such returns or pursuant to any assessment received by it, except any such Taxes which are being contested in good faith and by proper proceedings and for which adequate reserves have been maintained.

  

	7.14	Financial Statements. 

 The audited financial statements of the Borrower as of and for the period ended
December 31, 2011, copies of which have been delivered to the Administrative Agent, were prepared in accordance with IFRS and present fairly, as at the date thereof, the consolidated financial position of the Borrower. 

 

	7.15	Expropriation. 

 None of the Collateral has been the subject of a Taking by any competent Official Body
that has resulted in an MAE or that would reasonably be expected to have an MAE, nor has any notice or proceeding in respect of any such Taking been given or commenced nor is the Borrower aware of any intent or proposal to give any such notice or to
commence any such proceeding. 
  

	7.16	MAE. 

 As at the Closing Date, no event or circumstance has occurred since December 31, 2011 which
had, or would reasonably be expected to have, an MAE. 
  

	7.17	Disclosure. 

 All information and data (excluding financial projections) that have been or will be made
available by the Borrower or any of its affiliates, representatives or advisors to the Administrative Agent or any Lender (whether prior to or on or after the date hereof) in connection with the Acquisition and the Credit Facilities (the
“Information”), taken as a whole, is and will be complete and correct in all material respects and does not and will not, taken as a whole, contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements contained therein not misleading in light of the circumstances under which such statements are made. 
 All financial
projections and budgets concerning the Borrower and its affiliates and the Acquisition (the “Projections”) that have been made or will be prepared by or on behalf of the Borrower or any of its affiliates, representatives or advisors
and that have been or will be made available to the Administrative Agent or any Lender in connection with the Acquisition have been and will be prepared in good faith based upon assumptions believed by the Borrower to be reasonable. 

The representations and warranties set forth in the preceding two paragraphs of this section 7.17, to the extent that they relate to the Acquisition, shall
have effect only as at the Closing Date. 

  
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	7.18	ERISA 

 Each of the MDA Parties and their respective ERISA Affiliates is in compliance, in all material
respects, with the applicable provisions of ERISA and the provisions of the Code relating to Employee Benefit Plans and the regulations and published interpretations thereunder, except for such non-compliance
that would not reasonably be expected to result in an MAE. No ERISA Event has occurred after the Closing Date that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, would reasonably be
expected to result in an MAE. Except as could not reasonably be expected to have an MAE, the present value of all accumulated benefit obligations under all US Pension Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such US Pension Plans, in the aggregate. 

 

	7.19	Investment Company Status. 

 No MDA Party or MDA Pledgor is an investment company as defined in the
Investment Company Act of 1940. 
  

	7.20	Federal Reserve Regulations. 

  

	 	(1)	On the Closing Date, none of the Collateral is Margin Stock. 

  

	 	(2)	No MDA Party or MDA Pledgor is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock. 

 

	 	(3)	No part of the proceeds of any Accommodation will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is inconsistent with,
the provisions of Regulation T, Regulation U or Regulation X. 

  

	7.21	Sanctioned Persons. 

 No MDA Party or MDA Pledgor appears on the list of Specially Designated Nationals
and Blocked Persons published by the Office of Foreign Assets Control (“OFAC”) of the U.S. Treasury Department or the U.S. Department of State; the Borrower will not use the proceeds of the Accommodations in any manner that will result in
a violation by any Lender of any United States sanctions administered by OFAC or the U.S. Department of State. 
  

	7.22	PATRIOT Act. 

 To the extent applicable each MDA Party and MDA Pledgor is in compliance, in all material
respects, with the Trading with the Enemy Act and each of the foreign assets control regulations of the U.S. Treasury Department (31 CFR, Subtitle B, Chapter V) and any other enabling legislation or executive order relating thereto and the USA
PATRIOT Act. No part of the proceeds of the Accommodations will knowingly be used in any manner which represents a violation or breach of the preceding sentence or for any payments to any governmental official or employee, political party, official
of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation in any material respect of the United States Foreign
Corrupt Practices Act of 1977, as amended, or any other applicable anti-corruption Laws. 

  
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	7.23	Ranking of Obligations. 

 All payment obligations of each MDA Party under the Credit Facility Documents
to which it is a party will rank at least pari passu in right of payment with its other most senior indebtedness for borrowed money, other than payment obligations preferred by statute or by operation of Law. 

Article 8 
 SECURITY

  

	8.1	Security. 

 As continuing collateral security for the payment and performance of: 

 

	 	(i)	the Obligations; 

  

	 	(ii)	the Hedging Obligations; 

  

	 	(iii)	the 2012 LC Facility Obligations; 

  

	 	(iv)	the Prudential Notes; 

  

	 	(v)	the 2012 Notes; and 

  

	 	(vi)	the Cash Management Obligations; 

 (all of the foregoing on a pari passu basis, and subject to the
provisions of the Intercreditor Agreement) there shall be executed and delivered to the Collateral Agent the following documents (other than the Guarantees, which shall be delivered to the Administrative Agent), each of which documents shall be in
form and substance satisfactory to the Lenders and subject to section 8.7: 
  

	 	(b)	a Guarantee from each Designated Subsidiary; 

  

	 	(c)	a GSA from each MDA Party; 

  

	 	(d)	a Debenture from each MDA Party that owns or has an interest in the Acquired Real Property or any other material real property, which Debenture may subsume the GSA that would otherwise have been given by such MDA Party
and, with respect to real property located in the United States, together with fully-paid American Land Title Association Lender’s Extended Coverage (or other reasonably satisfactory coverage if such coverage is not available in the applicable
jurisdiction) mortgagee title insurance policies issued by a title insurance company reasonably acceptable to the Collateral Agent, assuring the Collateral Agent that the mortgage, charge, deed of trust or similar agreement creates a valid and
enforceable mortgage lien on the relevant Collateral, free and clear of all defects and encumbrances except Permitted Liens, which such title insurance policies shall otherwise be in form and substance reasonably satisfactory to the Collateral Agent
and shall include such endorsements as are reasonably requested by the Collateral Agent; for the purposes of this section 8.1(c), real property shall not be considered to be material if it shall come within the exclusions set forth in section
8.7(a)(iii); 

  

	 	(e)	a pledge of all outstanding shares (or corresponding interests) in the capital of each Designated Subsidiary (including the Acquired Securities); and 

  
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	 	(f)	any security instruments or documentation required by the Collateral Agent in connection with the renewal of any of the foregoing security or granted supplemental to such security and such other security and supporting
documents reasonably required by the Collateral Agent from time to time to perfect the above security or renewals therefor or reasonably required by the Collateral Agent to give effect to this agreement. 

 

	8.2	Designation. 

 The Borrower may from time to time by notice to the Administrative Agent: 

 

	 	(a)	remove a Wholly-Owned Subsidiary (other than MDA Holdings, Land LLC, SS/L, LuxCo or any intervening subsidiary between the Borrower and any of the foregoing) as a Designated Subsidiary hereunder, on delivery to the
Administrative Agent of a written request for such removal, and a certificate of a Senior Officer of the Borrower (and such other evidence as the Administrative Agent shall reasonably request) to the effect that such removal shall not cause a
Default or Event of Default, following receipt of which the Administrative Agent shall provide to such subsidiary a release of its obligations under its Guarantee; 

 

	 	(b)	designate a Wholly-Owned Subsidiary as a Designated Subsidiary hereunder on delivery of the following to the Administrative Agent (or, in the case of items (iii) and (iv), the Collateral Agent): 

 

	 	(i)	a written request for such designation; 

  

	 	(ii)	in respect of such subsidiary and (if applicable) any MDA Pledgor, the various documents contemplated by section 6.1(2), (3), (4), (5), (10) and (15); 

 

	 	(iii)	a Guarantee and, subject to section 10.1(18), a GSA or (if applicable) Debenture from such subsidiary, which GSA or Debenture shall constitute first-priority security as contemplated by section 1.1(n); and

  

	 	(iv)	a pledge of all shares in the capital of such subsidiary held directly or indirectly by the Borrower; and 

  

	 	(c)	designate or remove a subsidiary as a Non-Recourse Subsidiary hereunder on delivery of the following to the Administrative Agent: 

 

	 	(i)	a written request for such designation or removal; 

  

	 	(ii)	a certificate of a Senior Officer of the Borrower (and such other evidence as the Administrative Agent shall reasonably request) to the effect that such designation or removal shall not cause a Default or Event of
Default, which certificate shall confirm that, as at the end of the immediately preceding Financial Quarter, the threshold set forth in section 10.1(18) and the negative covenants set forth in section 10.2(12) would have been satisfied on a pro
forma basis having regard to such designation or removal; and 

  

	 	(iii)	in the case of a designation, a certificate from a Senior Officer of the Borrower to the effect that such subsidiary is a Non-Recourse Subsidiary and setting forth in reasonable
detail the nature of the assets of such subsidiary, the Debt of such subsidiary and the recourse in respect thereof, together with such financial and other information as the Administrative Agent may reasonably request to confirm that such
subsidiary is a Non-Recourse Subsidiary; 

  
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 following which the Administrative Agent shall so advise the Lenders. 

 

	8.3	Share Pledges. 

 All pledges of shares shall include such share certificates (duly endorsed for
transfer), powers of attorney (endorsed in blank), approvals of directors, shareholders or others as required for the pledge, and other supporting documents as the Collateral Agent shall reasonably request; provided that share certificates are not
required to be delivered in respect of pledged shares in the capital of a Proxy Subsidiary. 
  

	8.4	Material Real Property. 

 The Borrower shall forthwith advise the Collateral Agent and the Administrative
Agent of the acquisition by any MDA Party of any material real property interest and upon request will grant or cause to be granted to the Collateral Agent a Debenture from such MDA Party as security for the obligations described in the opening
paragraph of section 8.1, which Debenture shall constitute first-priority security as contemplated by section 1.1(n); provided that no such Debenture with respect to any material real property interest located in the United States of America will be
entered into by the Collateral Agent prior to the receipt by the Collateral Agent of confirmation from each Secured Party that all applicable requirements placed on such Secured Party under the National Flood Insurance Reform Act of 1994 and related
legislation and regulatory requirements with respect to such material real property interest have been satisfied. For the purposes of this section 8.4, real property shall not be considered to be material if it shall come within the exclusions set
forth in section 8.7(a)(iii). 
  

	8.5	Continued Perfection of Security. 

 The Borrower shall take such action and execute and deliver to the
Collateral Agent such agreements, conveyances, deeds and other documents and instruments as the Collateral Agent shall reasonably request for the purpose of establishing, perfecting, preserving and protecting the Security and the Liens of the
Security, in each case forthwith upon request therefor by the Collateral Agent and in form and substance satisfactory to the Lenders acting reasonably. 

In particular but without limiting the generality of the foregoing, the Borrower may from time to time provide to the Collateral Agent a deposit account
control agreement in respect of a bank account of a Designated Subsidiary in the United States, in form and substance satisfactory to the Collateral Agent acting reasonably, in order that such bank account shall become a DACA Account. 

 

	8.6	Essential Assets. 

 The Borrower shall take such action and execute and deliver to the Collateral Agent
such agreements, conveyances, deeds and other documents and instruments as the Collateral Agent shall reasonably request for the purpose of ensuring that the Collateral Agent will always enjoy, and the Security shall always comprise, for the benefit
of the Lenders, inter alia, as security for the obligations described in the opening paragraph of section 8.1, to the extent available at Law or under applicable contractual arrangements, a first-ranking and effective Lien over all essential
assets such that the failure of the Collateral Agent to enjoy such a Lien thereon would reasonably be expected to result in (i) a material impairment of the ability of the Collateral Agent, the Secured Parties, their respective agent(s) or a
receiver to effectively manage any material business of an MDA Party, or (ii) a material reduction in the recovery from the Collateral on a realization of the Security. 

  
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	8.7	Exclusions. 

 Notwithstanding anything to the contrary: 

 

	 	(a)	the Collateral shall exclude the following: 

  

	 	(i)	motor vehicles and other assets subject to certificates of title, letter of credit rights (except to the extent constituting a support obligation for other Collateral as to which perfection of the security interest in
such other Collateral is accomplished solely by the filing of a PPSA or UCC financing statement) and certain commercial tort claims; 

  

	 	(ii)	pledges and security interests (including in respect of interests in partnerships, joint ventures and other non-wholly owned entities) to the extent prohibited by Law or
prohibited by agreements containing anti-assignment clauses not overridden by the PPSA, UCC or other applicable Law; 

  

	 	(iii)	except as may be perfected by the filing of a PPSA or UCC financing statement; 

  

	 	(A)	any fee owned real property with a value of less than US$1 million (or the Equivalent Amount in any other currency); or 

  

	 	(B)	any leasehold interest unless, by virtue of the nature of the leasehold premises and any assets affixed thereto, the failure of the Collateral Agent to enjoy a Lien thereon would reasonably be expected to result in
(i) a material impairment of the ability of the Collateral Agent, the Secured Parties, their respective agent(s) or a receiver to effectively manage any material business of an MDA Party, or (ii) a material reduction in the recovery from
the Collateral on a realization of the Security; 

  

	 	(iv)	intent to use trademark applications; 

  

	 	(v)	equity interests: 

  

	 	(A)	constituting margin stock (provided that the Majority Lenders may require a pledge of margin stock if the value thereof exceeds US$5 million); and 

 

	 	(B)	in any subsidiary that is not a Wholly-Owned Subsidiary if the granting of a security interest in such equity would be prohibited by Law or by organizational or governance documents of any subsidiary or would trigger
termination pursuant to any “change of control” or similar provision; 

  

	 	(vi)	any lease, license or other agreement or any property subject to a Purchase Money Security Interest, Capital Lease obligation or similar arrangements, in each case, to the extent permitted under the Credit Facility
Documents to the extent that a grant of a security interest therein would violate or invalidate such lease, license or agreement, purchase money, capital lease or a similar arrangement or create a right of termination in favour of any other party
thereto (other than any MDA Party) after giving effect to the applicable anti-assignment provisions of the PPSA, UCC or other applicable Law, other than proceeds and receivables thereof, the assignment of which is expressly deemed effective under
applicable Law notwithstanding such prohibition; 

  

  
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	 	(vii)	any property and assets the pledge of which would require governmental consent, approval, license or authorization that has not been obtained; 

 

	 	(viii)	those assets as to which the Administrative Agent and the Borrower reasonably agree that the costs of obtaining such a security interest or perfection thereof are excessive in relation to the value to the Lenders of the
security to be afforded thereby; provided that, in the case of clauses (v)(B), (vi) and (vii), such exclusion shall not apply: 

  

	 	(A)	to the extent the prohibition is ineffective under applicable anti-assignment provisions of the PPSA, UCC or other applicable Law; or 

 

	 	(B)	to proceeds and receivables of the assets referred to in such clause, the assignment of which is expressly deemed effective under applicable anti-assignment provisions of the PPSA, UCC or other applicable Law
notwithstanding such prohibition; 

  

	 	(ix)	the Radarsat II ground station and ground control equipment; 

  

	 	(x)	US-Owned Assets; and 

  

	 	(xi)	any inventory that is “specifically identified to contracts-in-process” as such phrase is used in the footnotes to the financial
statements of Loral attached as Schedule 4.7(a) to the Purchase Agreement, where the granting of a Lien over such inventory would result in the breach of a contract; 

 

	 	(b)	no control agreements will be required over any deposit accounts or securities accounts except as required to comply with section 10.2(14); 

 

	 	(c)	no actions shall be required to perfect a security interest in letter of credit rights below US$10 million other than the filing of a PPSA or UCC financing statement; and 

 

	 	(d)	a pledge of the outstanding shares (or corresponding interests) in the capital of a Designated Subsidiary that is subject to a Proxy Agreement shall constitute only a charge on the beneficial interest of the MDA Pledgor
in such shares, and shall be subject to the terms of such Proxy Agreement. 

  

	8.8	Release of Security. 

  

	 	(1)	In the event that the Borrower receives a Rating of “Baa3” from Moody’s or “BBB-” from S&P, then: 

 

	 	(a)	the Borrower may by notice to the Administrative Agent request that the items of Security described in sections 8.1(b),(c), (d), and (e) be released, discharged and (as the case may be) returned to the relevant MDA
Parties and MDA Pledgors; 

  
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	 	(b)	following receipt of such request, the Administrative Agent will (as long as no Default or Event of Default shall have occurred and be continuing) at the Borrower’s expense arrange for such release, discharge and
return so long as the same release shall concurrently occur under the Intercreditor Agreement, the Prudential Note Agreement (as defined in the Intercreditor Agreement), the 2012 Note Agreement (as defined in the Intercreditor Agreement) and any
other applicable Credit Documents (as defined in section 10.1(23), and the Borrower shall have delivered certified evidence of the same to the Administrative Agent; 

 

	 	(c)	provided that the foregoing conditions are satisfied, any requirement that such items of Security be delivered in any circumstances and any reference herein to such items of Security shall be disregarded;

  

	 	(d)	sections 8.3 to 8.7, inclusive, and section 10.1(11) shall be of no further force or effect; and 

  

	 	(e)	the Borrower shall thereafter be under an obligation, and does hereby covenant to, maintain a Rating from either of Moody’s or S&P; 

provided, however (and for the avoidance of doubt), if the Borrower receives a Rating from both Moody’s and S&P, then for purposes of
this section 8.8(1), the lower of the two Ratings shall apply to these provisions; provided further that, to the extent any consideration is paid or given to any lender or other creditor under any of the Intercreditor Agreement, the Prudential Note
Agreement, the 2012 Note Agreement or any other applicable Credit Document in connection with any such release, discharge or return described above, the Borrower shall pay or provide to the Lenders equivalent consideration, determined based upon the
respective amounts of credit provided under this agreement and such other Credit Document receiving such consideration, and on a pro rata basis. 
  

	 	(2)	In the event that, following any release of security pursuant to section 8.8(1), (i) the Borrower shall fail to maintain a Rating of “Baa3” from Moody’s or
“BBB-” from S&P (and, for the avoidance of doubt, if the Company receives a Rating on its unsecured Debt from both Moody’s and S&P, then the lower of the two Ratings shall apply for
purpose of this clause (i)), or (ii) the Borrower shall fail to maintain any Rating from either of Moody’s or S&P, then: 

  

	 	(a)	the Administrative Agent may by notice to the Borrower request that the items of Security described in sections 8.1(b), (c), (d) and (e) be executed and delivered to a collateral agent for the benefit of the
Lenders pursuant to intercreditor arrangements satisfactory to the Majority Lenders by the relevant MDA Parties and MDA Pledgors; 

  

	 	(b)	within 90 days following receipt of such request, the Borrower will at its expense arrange for the Credit Facility Documents comprising such items of Security to be executed and delivered to the Collateral Agent, and
all registrations, filings or recordings necessary or desirable to preserve, protect or perfect the enforceability and priority of the Liens created by such Security (subject only to Permitted Liens) to be completed (or arrangements satisfactory to
the Lenders for the foregoing shall have been made); 

  

	 	(c)	upon receipt of such request by the Borrower, all references in this agreement to such items of Security and all requirements that such items of Security be delivered in any circumstances, and all references herein to
Collateral, shall be reinstated without the necessity of any further action; 

  
 80 

	 	(d)	upon receipt of such request by the Borrower, sections 8.3 to 8.7, inclusive, and section 10.1(11) shall be reinstated without the necessity of any further action; and 

 

	 	(e)	upon receipt of such request by the Borrower, the Borrower shall be under no further obligation to maintain a Rating from either of Moody’s or S&P. 

 

	 	(3)	If any MDA Party or MDA Pledgor makes or proposes to make an Asset Disposition permitted hereunder, then: 

  

	 	(a)	where that MDA Party or MDA Pledgor created Security over any of its assets included in such Asset Disposition, the Collateral Agent may, at the cost and request of the Borrower, release the Security in respect of those
assets or business; and 

  

	 	(b)	any release of Security referred to in paragraph (a) above shall become effective only on the consummation of that Asset Disposition. 

 

	8.9	Excluded Swap Obligations. 

  

	 	(1)	Notwithstanding anything to the contrary in the Credit Facility Documents, any Excluded Swap Obligations shall be excluded from the Guarantee and other Security received from any MDA Party which is not a Qualified ECP
Guarantor. 

  

	 	(2)	Each Guarantee shall include (or be deemed to include) the following keepwell undertaking: 

“Keepwell 
  

	 	(a)	The Guarantor hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other MDA Party to honor all of its obligations under the
Credit Agreement and in its Guarantee in respect of Hedging Obligations (provided, however, that the Guarantor shall only be liable under this section for the maximum amount of such liability that can be hereby incurred without rendering its
obligations under this section, or otherwise under the Credit Agreement or its Guarantee voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Guarantor under
this section shall remain in full force and effect until the Guaranteed Obligations have been paid in full and the Commitments have been terminated. The Guarantor intends that this section constitute, and this section shall be deemed to constitute,
a “keepwell, support, or other agreement” for the benefit of each other MDA Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

 

	 	(b)	This section shall only apply to the Guarantor if and so long as, it is a Qualified ECP Guarantor. 

  

	 	(c)	The obligations of the Guarantor under this section are joint and several with each other Qualified ECP Guarantor. 

  
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 Article 9 

INSURANCE 
  

	9.1	Insurance. 

 The Borrower will maintain or cause to be maintained, with financially sound and reputable
insurers, insurance with respect to the business and assets of each MDA Party, in such amounts and against such liabilities, casualties, risks and contingencies existing from time to time as is customary for prudent owners and operators of similar
businesses and similar property as reasonably required by the Lenders. Without limiting the generality of the foregoing, if a Debenture is required pursuant to the terms of section 8.4 with respect to any material real property interest located in
the United States of America, and such material real property interest is designated as, or to be in, a “flood hazard area”, the Borrower will maintain or cause to be maintained, with financially sound and reputable insurers, flood
insurance on such material real property interest in such total amount as required under applicable law and otherwise in compliance with the National Flood Insurance Program as set forth in the Flood Disaster Protection Act of 1973. Such
policies shall be obtained, maintained and dealt with as set forth in this Article 9. 
  

	9.2	Policies. 

 All policies of insurance referred to in section 9.1 shall show the Collateral Agent as an
additional named insured, shall provide that they shall not be cancelled, lapsed or materially altered without 30 days’ prior written notice to the Collateral Agent, and shall contain such other endorsements as shall reasonably be requested by
the Collateral Agent. 
  

	9.3	Evidence. 

 The Borrower will provide to the Collateral Agent, on request from time to time, certified
copies of all such policies. Neither the Collateral Agent nor the Administrative Agent shall have any obligation to verify any information or statement contained in the certificates or documents delivered to it pursuant to this Article 9 or any
duty to effect or maintain any insurance. Neither the Collateral Agent nor the Administrative Agent shall be responsible for any loss by reason of the failure to maintain or insufficiency of any insurance or by reason of the failure of any insurer
to pay the full amount of any loss against which such insurer may have insured. 
  

	9.4	Payment of Premiums. 

 The Borrower will pay punctually, or cause to be paid, all premiums payable for
the insurance required by this Article 9. 
 Article 10 

COVENANTS 
  

	10.1	Affirmative Covenants. 

 Until the Obligations are paid and satisfied in full and this agreement has been
terminated, the Borrower covenants as follows: 
  

	 	(1)	 Corporate Existence. It will, and will cause each Designated Subsidiary and MDA Pledgor to, do all things
necessary to (i) maintain its corporate (or, in the case of non-corporate entities, similar) existence, and (ii) only in the case of each of the Borrower and each Designated Subsidiary, carry out its
businesses in a proper and efficient manner in like manner as prudent operators of its businesses, including obtaining and maintaining in full force and effect all material Permits required for the conduct of its businesses. The Borrower shall
immediately advise the Administrative Agent in writing of any change of name, shareholdings (excluding the Borrower, and also excluding changes resulting from 

  
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the exercise of employee stock options or trades in shares by employees), place of business (including the location of any material assets) or jurisdiction of domicile of any MDA Party or MDA
Pledgor, and promptly provide to the Administrative Agent copies of any amendments to the constating documents of any MDA Party. 

  

	 	(2)	Compliance with Laws, etc. It will, and will cause each Designated Subsidiary and MDA Pledgor to, comply in all material respects with all applicable Laws (including Environmental Laws and ERISA) and Permits and
do all things necessary to obtain, renew and maintain in good standing from time to time all Permits and duly observe all valid requirements of any Official Body (including those requirements respecting the protection of the environment, Release of
Hazardous Materials, and occupational health and safety), except to the extent failure to do so does not, or would not reasonably be expected to, result in an MAE. 

 

	 	(3)	Payment of Taxes and Claims. It will, and will cause each Designated Subsidiary and MDA Pledgor to, file as and when required by applicable Law all material Tax returns and will pay and discharge before the same
shall become delinquent (i) all Taxes imposed upon it or upon its property, and (ii) all lawful claims (including claims for labour, materials, supplies or services) which, if unpaid, might become a Lien upon its property (or, in the case
of an MDA Pledgor, on any Collateral), except in each case any such Tax or claim which is being contested in good faith and by proper proceedings and for which adequate reserves have been maintained and no Liens (except Permitted Liens) have
attached. 

  

	 	(4)	Keeping of Books. It will, and will cause each of its subsidiaries to, keep proper books of record and account in conformity with IFRS and all applicable requirements of any Official Body having legal or
regulatory jurisdiction over the Borrower or such subsidiary, as the case may be. 

  

	 	(5)	Maintain Properties. It will, and will cause each of its Designated Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition
(other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this section shall not prevent the Borrower or its Designated Subsidiaries from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Borrower has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to
have an MAE. 

  

	 	(6)	Pay Obligations to Lenders and Perform Other Covenants. The Borrower will make full and timely payment of the Obligations, whether now existing or hereafter arising, and will, and will cause each Designated
Subsidiary and MDA Pledgor to, duly comply with all the terms and covenants made by or applicable to it contained in each of the Credit Facility Documents, all at the times and places and in the manner set forth therein and, except for the filing of
renewal statements and the making of other filings by or on behalf of the Collateral Agent as secured party, at all times take all action necessary to maintain the Liens provided for under or pursuant to this agreement and the Security as valid and
perfected first Liens on the property intended to be covered thereby (subject only to Permitted Liens) and supply all information to the Collateral Agent which is reasonably necessary for such maintenance. 

 

	 	(7)	Use of Proceeds. The Borrower will use the proceeds of all Accommodations only for the purposes set forth in section 2.1(2). No part of the proceeds of any Accommodations will be used, whether directly or
indirectly, for any purpose that would entail a violation of Regulation T, Regulation U or Regulation X. 

  
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	 	(8)	Financial and Other Reporting. The Borrower will deliver to the Administrative Agent: 

  

	 	(a)	promptly after the same are available and in any event within 90 days after the end of each Financial Year, a copy of the audited consolidated financial statements of the Borrower prepared in accordance with IFRS;

  

	 	(b)	promptly after the same are available and in any event within 45 days after the end of each Financial Quarter other than the final Financial Quarter, a copy of the unaudited consolidated financial statements of the
Borrower and details of any acquisitions not previously advised to the Administrative Agent; 

  

	 	(c)	with each of the financial statements in (a) and (b) above, a compliance certificate signed by a Senior Officer, including calculations demonstrating compliance with sections 10.1(18) and 10.2(2) and setting out
any appropriate adjustments arising by virtue of IFRS; 

  

	 	(d)	promptly after the same are available and in any event within 60 days after the commencement of each Financial Year, (i) a consolidated budget for the Borrower for such Financial Year, and (ii) a forecast for
the Borrower (including income statement and summary balance sheet) covering a period ending not prior to the Final Maturity Date; and 

  

	 	(e)	such other information as the Administrative Agent acting on behalf of the Lenders may reasonably request from time to time. 

  

	 	(9)	Notice of Certain Events. The Borrower will: 

  

	 	(a)	promptly notify the Administrative Agent in writing of 

  

	 	(i)	the existence of any Default or Event of Default or that any person has given any notice or taken any action with respect to a claimed default of the type referred to in section 12.1(5) or (6)); 

 

	 	(ii)	any occurrence in respect of the assets, businesses, operations or condition, financial or otherwise of any MDA Party or MDA Pledgor (including an ERISA Event), that has or would reasonably be expected to have an MAE;

  

	 	(iii)	any transaction requiring a reduction in the Commitments and/or a repayment by the Borrower under section 2.3; 

  

	 	(iv)	any claim made against the Borrower under any letter of credit, letter of guarantee, surety bond or similar instrument in an amount exceeding US$7.5 million or the Equivalent Amount in any other currency;

  

	 	(v)	receipt or termination of, or any change in, a Rating 

  

	 	(b)	 (i) promptly upon any Senior Officer of the Borrower obtaining actual knowledge of the occurrence of any ERISA
Event which has or would reasonably be expected to have an MAE, provide to the Administrative Agent a written notice specifying the nature thereof and (ii) upon written request of the Administrative Agent, provide to the Administrative Agent
copies of (A) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by any MDA Party or, to the extent provided to the Borrower, any respective ERISA Affiliate with the Internal Revenue Service with respect to
each US Pension Plan, (B) all 

  
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notices received by any MDA Party, or to the extent provided by the Borrower, any respective ERISA Affiliate from a Multiemployer Plan concerning an ERISA Event and (C) copies of such other
documents or governmental reports or filings relating to any US Pension Plan as the Administrative Agent shall reasonably request; 

  

	 	(c)	promptly, and in any event within 30 days of receipt thereof, provide to the Administrative Agent copies of any notice to the Borrower or any subsidiary from any Official Body relating to any order, ruling, statute or
other law or regulation that has or would reasonably be expected to have an MAE; 

  

	 	(d)	promptly following the filing thereof, provide to the Administrative Agent copies of all reports, statements and other material provided to shareholders or public securities holders, and material change reports provided
(other than on a confidential basis) to applicable securities regulatory agencies, by the Borrower; and 

  

	 	(e)	from time to time, upon request by the Administrative Agent, provide to the Administrative Agent a certificate from a Senior Officer of the Borrower as to whether or not a Default or Event of Default has occurred and is
continuing, and such other information as the Administrative Agent acting on behalf of the Lenders may reasonably request from time to time; 

and such written notice in the case of (a)(i), (ii) or (iv) shall specify the nature and period of existence of the applicable Default,
Event of Default or event or circumstance and what action the Borrower is taking or proposes to take with respect thereto. 
  

	 	(10)	Visitation, Inspection, etc. It will, and will cause each Designated Subsidiary to, permit the Lenders and their respective representatives and consultants to visit and inspect any of its assets, to examine its
books and records and to make copies and take extracts therefrom (as reasonably required, and subject to contractual confidentiality obligations of the relevant MDA Party), and to discuss its affairs, finances and accounts with its officers or its
independent auditors (in the presence of the Borrower’s personnel), all at such reasonable times and as often as the Lenders may reasonably request through the Administrative Agent. 

 

	 	(11)	Takings and Other Transactions. It will, and will cause each Designated Subsidiary or MDA Pledgor, give prompt notice to the Administrative Agent should the Collateral or any part thereof be taken by reason of
any Taking or should it receive any notice or other information regarding such proceedings. 

  

	 	(12)	Environmental Indemnity. It will, and will cause each Designated Subsidiary to, indemnify and hold harmless the Administrative Agent and each Lender and their respective directors, officers, employees, agents and
representatives from and against any and all third party liabilities, claims, demands, actions and causes of action, fines and other penal or administrative sanctions (collectively, “Claims”) suffered by the indemnitees arising
directly or indirectly out of any breach of any Environmental Law, or any Release or the presence of Hazardous Materials, at any time relating to the Collateral; provided that such indemnity shall not apply in respect of any Claims occurring:

  

	 	(a)	by reason of any actions or omissions of or by the indemnitee or any receiver appointed by or at the request of the Collateral Agent or the Secured Parties in operating the Collateral during the course of realization of
the Security, unless such actions or omissions are found to have been conducted or omitted, as applicable: 

  
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	 	(i)	in the course of operating such Collateral in substantially the same manner as the same was operated while it was being operated by the relevant MDA Party; or 

 

	 	(ii)	in accordance with good industry practice as in effect at the time of such operations of the indemnitee or the receiver; or 

  

	 	(b)	after the Collateral shall have been disposed of by the Collateral Agent or the Secured Parties or any receiver to any third party or parties in the course of realization on the Security; except where such Claims arise
by reason of any act or omission of or by the relevant MDA Party, or of or by the Collateral Agent or the Secured Parties or a receiver (if the Collateral Agent or the Secured Parties or the receiver would have been entitled to indemnification
hereunder if such Claims had been raised prior to such disposition), occurring prior to the disposition. 

 The obligations of
the Borrower under this section 10.1(12) shall survive the payment and performance of the Obligations. 
  

	 	(13)	Material Contracts. It will, and will cause each Designated Subsidiary to, comply with, and diligently enforce, all material obligations under material contracts, save where failure to do so neither has, nor
would reasonably be expected to have, an MAE, and without limiting the generality of the foregoing will use reasonable commercial efforts to cure any matter referred to in a notice given under section 10.1(9). 

 

	 	(14)	Acquisitions. The Borrower will provide 15 Business Days’ prior written notice to the Administrative Agent of any proposed acquisition or investment in a person (other than an MDA Party) by the Borrower or
any subsidiary for a purchase price or investment in excess of $100 million, together with: 

  

	 	(i)	a summary of the material terms and conditions of the acquisition or investment; and 

  

	 	(ii)	such other information as the Administrative Agent shall reasonably request. 

  

	 	(15)	Title. Except for dispositions permitted hereby, it will, and will cause each Designated Subsidiary and MDA Pledgor to, maintain and, as soon as reasonably practicable, defend and take all action necessary or
advisable at any time and from time to time to maintain and defend its right, title and interest in and to all Collateral and the priority and enforceability of the Security and the Liens of the Security. 

 

	 	(16)	Share Ownership. The Borrower will maintain its ownership (direct or indirect) of all of the outstanding shares in the capital of each Designated Subsidiary. 

 

	 	(17)	Hedging Instruments. It will, and will cause each Designated Subsidiary to, enter into Hedging Instruments only for non-speculative purposes. 

 

	 	(18)	 Designation. Within 45 days after the end of any Financial Quarter where EBITDA (calculated only with
respect to the Borrower and the Designated Subsidiaries), as at the end of such Financial Quarter on the basis of the four Financial Quarters then ended, comprises less than 85% of EBITDA (excluding, for greater certainty, Non-Recourse Subsidiaries) (provided that, for this purpose, the EBITDA of an MDA Party shall be reduced by the portion thereof attributable (determined on a basis satisfactory to the Lenders, acting reasonably) to
assets which are subject to a Permitted Lien of the nature 

  
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described in item (o) or (p) thereof in priority to the Lien of the Security) then the Borrower shall designate as Designated Subsidiaries such one or more additional subsidiaries as
would have been sufficient to achieve compliance with the foregoing 85% threshold had such subsidiaries been Designated Subsidiaries throughout the relevant period(s). In addition, the Borrower shall concurrently cause to be provided such additional
Security as shall be required by section 8.1 and 8.2. 

  

	 	(19)	Intellectual Property. It will, and will cause each Designated Subsidiary to, (save where failure to take any such action or step would not reasonably be expected to have an MAE) (i) make any registration
and pay any fee or other amount which is necessary to keep its intellectual property rights used in the business of any MDA Party (including the Acquired Business) in force, (ii) record its interest in those intellectual property rights,
(iii) take such steps as are necessary and commercially reasonable (including the institution of legal proceedings) to prevent third parties infringing those intellectual property rights, and (iv) not enter into licence arrangements in
respect of those intellectual property rights except on normal commercial terms in the ordinary course of business. 

  

	 	(20)	AML Legislation and “Know Your Client” Requirements. 

  

	 	(a)	Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing
Act (Canada), the PATRIOT Act or any other applicable anti-money laundering, anti-terrorist financing, government sanction and “know your client” Applicable Laws (collectively, including any guidelines or orders thereunder,
“AML Legislation”), it may be required to obtain, verify and record information that identifies the Borrower and each subsidiary of the Borrower, which information includes the name and address of each such person and such other
information that will allow such Lender or the Administrative Agent, as applicable, to identify each such person in accordance with AML Legislation (including information regarding such person’s directors, authorized signing officers, or other
persons in control of each such person). The Borrower shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the
Administrative Agent and the Lenders in maintaining compliance with AML Legislation. The Borrower shall promptly provide all such information, including supporting documentation and other evidence, as may be reasonably requested by any Lender or the
Administrative Agent (for itself and not on behalf of any Lender), or any prospective assignee of a Lender or the Administrative Agent, in order to comply with any applicable AML Legislation, whether now or hereafter in existence. 

 

	 	(b)	Notwithstanding anything to the contrary in this section 10.1(20), each of the Lenders agrees that the Administrative Agent has no obligation to ascertain the identity of the Borrower or any subsidiary or any authorized
signatories of such person, on behalf of any Lender, or to confirm the completeness or accuracy of any information it obtains from any such person or any such authorized signatory in doing so. 

 

	 	(21)	Merger, etc. In the event that any MDA Party or MDA Pledgor shall merge, consolidate or amalgamate with or into, or sell, convey, transfer, lease or otherwise dispose of (in one transaction or a series of
transactions) all or substantially all of its assets to, any other person, the Borrower shall: 

  
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	 	(a)	cause the successor entity to expressly assume on terms and conditions as to legal effect satisfactory to the Lenders the obligations of such MDA Party or MDA Pledgor under all Credit Facility Documents to which such
MDA Party or MDA Pledgor is a party; 

  

	 	(b)	deliver to the Administrative Agent a certificate of a Senior Officer stating that such transaction complies herewith and that, after giving effect to such transaction on a pro forma basis, no Default or Event of
Default shall have occurred and be continuing; 

  

	 	(c)	deliver to the Administrative Agent an opinion of counsel stating that such transaction complies herewith; and 

  

	 	(d)	deliver to the Administrative Agent, as applicable and requested by the Administrative Agent, the various documents contemplated by section 6.1(2), (3), (4), (5), (10) and (15). 

 

	 	(22)	Pension Matters. The Borrower shall itself, and shall cause each of its Designated Subsidiaries to, establish, maintain and operate any and all pension plans, multiemployer plans and foreign employee
benefit plans (other than government-sponsored plans) in compliance in all material respects with all applicable Laws and the respective material requirements of the governing documents for such plans. 

 

	 	(23)	 Most Favoured Lender. The Borrower covenants and agrees that if at any time any Credit Document (as
defined below) shall include any financial requirement or condition pertaining to any MDA Party and/or any MDA Pledgor (however expressed and whether stated as a covenant, event of default or otherwise), which is not included in this agreement or
which is more restrictive than any comparable provision included in this agreement (a “Most Favoured Provision”), then (i) such Most Favoured Provision shall immediately and automatically be incorporated by reference in this
agreement as if set forth fully herein, mutatis mutandis, (ii) the Borrower shall promptly, and in any event within five days of such Most Favoured Provision becoming effective under any Credit Document, so advise the Administrative
Agent in writing, providing with such notice a copy of the applicable Credit Document(s), (iii) thereafter, (A) so long as no Default or Event of Default shall then exist under or in respect of such incorporated Most Favoured Provision, then
such Most Favoured Provision shall automatically (without any action being taken by the Borrower, the Administrative Agent or any Lender) cease to be incorporated in this agreement simultaneously with the termination of such Credit Document (in
accordance with its terms and not in connection with a temporary waiver of rights thereunder), or (B) if a Default or Event of Default shall exist under or in respect of such incorporated Most Favoured Provision on such termination date, then
such Most Favoured Provision shall continue in effect until such Default or Event of Default shall be cured or waived in accordance with the applicable provisions of this agreement, and (iv) such Most Favoured Provision shall automatically
(without any further action being taken by the Borrower, the Administrative Agent or any Lender other than as set forth below) be further modified if such Most Favoured Provision is made more or less restrictive on any MDA Party and/or MDA Pledgor,
as the case may be, by way of a permanent written amendment or modification of such Credit Document (and not by temporary waiver of rights thereunder); provided that (1) to the extent any consideration is paid or given to any lender or other
creditor under any Credit Document in connection with any amendment or modification of any Most Favoured Provision, the Borrower shall pay or provide each Lender equivalent consideration, determined based upon the respective amounts of credit
provided under this agreement and the Credit Document and on a pro rata basis, and (2) in no event shall any modification of any such Most Favoured Provision have the effect of making any change to any covenant or other provision
operative under this agreement (other than as a result of the incorporation therein pursuant to this section 10.1(23). As used in this section 10.1(23), the term “Credit Document” shall mean any agreement, instrument or other
document governing, 

  
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creating or evidencing any Debt of any MDA Party and/or any MDA Pledgor, but excluding (A) Debt owed by an MDA Party to another MDA Party, and (B) Debt owed to an Official Body. Without
limiting the provisions of section 12.1(4), any default under any provision incorporated herein pursuant to this section 10.1(23) shall constitute an Event of Default under section 12.1(4). 

 

	 	(24)	Info Systems. The Borrower shall use reasonable efforts to ensure that balances in the bank accounts of MDA Information Systems, LLC (net of reasonable working capital requirements) shall be transferred on a
monthly basis to (at the Borrower’s discretion): 

  

	 	(a)	bank accounts of MDA Parties held in Canada; 

  

	 	(b)	DACA Accounts; and/or 

  

	 	(c)	other bank accounts of Designated Subsidiaries in the United States if after such transfer the Borrower shall remain in compliance with section 10.2(14). 

 

	 	(25)	Pari Passu Ranking. The Borrower will ensure that its payment obligations under this agreement and the other Credit Facility Documents, and the payment obligations of each other MDA Party under the Credit
Facility Documents, will in each case at all times rank at least pari passu with such person’s obligations under all other Debt, present and future, except for obligations mandatorily preferred by applicable Law. 

 

	 	(26)	Further Assurances. It will at its cost and expense, upon request of the Administrative Agent or the Collateral Agent, duly execute and deliver, or cause to be duly executed and delivered, to the Administrative
Agent (or, as the case may be, the Collateral Agent) such further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Administrative Agent (or, as the case may be, the Collateral
Agent) to carry out more effectually the provisions and purposes of this agreement and the other Credit Facility Documents. 

  

	10.2	Negative Covenants. 

 Until the Obligations are paid and satisfied in full and this agreement has been
terminated, and in addition to any other covenants herein set forth, the Borrower covenants and agrees that it will not take any of the actions set forth in this section 10.2 or permit or suffer same to occur without the prior written consent of the
Majority Lenders. 
  

	 	(1)	Debt. The Designated Subsidiaries shall not incur or suffer to exist any Debt in excess of US$25 million (or the Equivalent Amount in any other currency) for all such Designated Subsidiaries in the
aggregate, but excluding (i) Debt owed to an MDA Party, (ii) Debt secured by Permitted Liens, (iii) Subordinated Debt, (iv) guarantees of Debt subject to the terms of the Intercreditor Agreement, (v) Debt owed to a
government that is a member of the OECD, or any agency of such government, where the obligations of the relevant Designated Subsidiary can be satisfied, at the option of the Borrower or such Designated Subsidiary, by delivering common shares of the
Borrower in accordance with the agreement governing such Debt (whether such common shares are received by the holder of such Debt as payment or are sold under such agreement to provide cash for payment to the holder of such Debt); provided that the
aggregate principal amount of such Debt referred to in this item (v) shall not at any time exceed US$50 million or the Equivalent Amount in other currencies, and (vi) Debt in connection with letters of credit guaranteed or insured by
EDC where such Debt is not yet due or owing and such letters of credit have been issued as assurance of performance or obligations (except other Debt) in the ordinary course of business. 

  
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	 	(2)	Liens. Neither it nor any other MDA Party nor (with respect only to Collateral) any MDA Pledgor will create, incur or otherwise permit to exist any Lien on any of its assets, other than Permitted Liens.

 Following any release of Collateral pursuant to Section 8.8, notwithstanding anything to the contrary in this
Section 10.2(2) or any other provision of this Agreement or the other Credit Facility Documents, the Borrower covenants that it will not, and will not permit any other MDA Party to, create or permit to exist any Lien on any property securing
Debt outstanding or issued under the Prudential Note Agreement or the 2012 Note Agreement unless and until the Obligations, Hedging Obligations and Cash Management Obligations shall be secured equally and ratably with such Debt pursuant to
collateral documents, an intercreditor agreement (which intercreditor agreement shall contain similar arrangements to those set forth in the lntercreditor Agreement immediately prior to its termination, mutatis mutandis) and other agreements
reasonably acceptable to the Majority Lenders. 
  

	 	(3)	Merger, etc. No MDA Party will merge, consolidate or amalgamate with or into, or sell, convey, transfer, lease or otherwise dispose of (in one transaction or a series of transactions) all or substantially all of
its assets to, any other person, except with, into or to another MDA Party and provided that the requirements of Section 10.1(21) are fully complied with. 

  

	 	(4)	Other Business. Neither it nor any Designated Subsidiary will enter into any new line of business, or terminate any existing business or material contract, where such action has or would reasonably be expected to
have an MAE, unless, in the case of termination of an existing business or material contract, the Borrower considers (acting reasonably) that the continuance of such business or contract would be more adverse than termination. 

 

	 	(5)	Financial Year. Neither it nor any Designated Subsidiary will change its Financial Year. 

  

	 	(6)	Asset Dispositions. Neither it nor any Designated Subsidiary nor MDA Pledgor will directly or indirectly consummate any Asset Disposition other than any of the following: 

 

	 	(a)	a Permitted Disposition; 

  

	 	(b)	subject to section 2.3(1)(a), the disposition of a receivable under and in accordance with an Asset Securitization; provided that the aggregate amount of receivables subject to such Asset Securitization shall not at any
time exceed (i) in the case of a disposition of Orbital Receivables, US$400 million (or the Equivalent Amount in any other currencies), or (ii) in all other cases, US$20 million (or the Equivalent Amount in any other currencies);
provided further that any disposition of the Orbital Receivables that does not constitute a true sale thereof shall have been approved by the Majority Lenders; 

  

	 	(c)	the disposition (whether by sale, arrangement, business combination or otherwise) of all of the shares in the capital or substantially all of the assets of MDA Information Systems, LLC on or before December 31,
2013; and 

  

	 	(d)	subject to section 2.3(1)(a), other Asset Dispositions not covered by the foregoing, to the extent that the fair market value of the assets disposed of do not in the aggregate (i) in any one Financial Year exceed
5% of the consolidated total assets of the Borrower as at the end of the most recently-completed Financial Year, or (ii) during the period comprised of the four most-recently completed Financial Years during the term of this agreement, exceed
15% of the consolidated total assets of the Borrower as at the end of the most recently-completed Financial Year. 

  
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	 	(7)	Non-Arms’ Length Transactions. No MDA Party will enter into any transactions with parties with whom it does not deal at arms’ length except on competitive terms
consistent with an arm’s length transaction and current market conditions; provided that this provision shall not restrict (i) any inter-corporate transactions exclusively between MDA Parties permitted by section 10.2(11), or (ii) the
interest or other consideration payable under any inter-corporate transaction between any of the Borrower and the Wholly-Owned Subsidiaries. 

  

	 	(8)	Restrictions on Distributions. No MDA Party will enter into any agreement or other arrangement that prohibits, restricts or imposes any condition on the ability of any Designated Subsidiary to pay dividends on or
other distributions with respect to its shares or to make or repay loans or advances to any MDA Party, except for (i) restrictions and conditions imposed by applicable Law or a Credit Facility Document, (ii) restrictions and conditions
contained in an agreement providing for the disposition of a subsidiary of an MDA Party, which restrictions and conditions only apply pending the completion of such disposition and only apply to such subsidiary, (iii) limitations on the
distribution of assets in a joint venture or similar agreement entered into in the ordinary course of business, (iv) restrictions and limitations set forth in the Pru Note Agreement and the 2012 Note Agreement (each as defined in the
Intercreditor Agreement), and (v) restrictions and limitations set forth in the Parent Loan and the LuxCo Loan. For greater certainty, the execution, delivery and performance by an MDA Party of a Proxy Agreement in the form required by the
relevant Official Body shall not constitute an agreement or arrangement contemplated by this section 10.2(8). 

  

	 	(9)	Distributions. The Borrower shall not make any Distribution (i) during the continuance of an Event of Default or if an Event of Default would exist immediately after giving effect to the making of such
Distribution, or (ii) to the extent that the aggregate Distributions of the Borrower during the period comprising the four most recently completed Financial Quarters shall exceed 60% of Available Cash Flow for such period. 

 

	 	(10)	Land Note. Neither the Borrower nor any guarantor of the Land Note shall make any prepayment of principal or interest thereunder (excluding for greater certainty any scheduled repayment of principal thereunder).

  

	 	(11)	LuxCo Loan and Parent Loan. 

  

	 	(a)	The Borrower will not permit LuxCo to do any of the following: 

  

	 	(i)	incur or suffer to exist any indebtedness of any nature whatsoever to any non-affiliated person, save for liabilities for rent, utilities, Taxes and similar amounts incidental to
the maintenance of its corporate existence and conduct of its permitted business; 

  

	 	(ii)	change the nature of its business from an inter-corporate finance and licensing entity and holding vehicle; 

  

	 	(iii)	incur or suffer to exist any indebtedness of any nature whatsoever to any affiliated entity other than the incurrence of the Parent Loan and other indebtedness to another MDA Party as part of its business contemplated
by item (ii) above, and in respect of which indebtedness such other MDA Party shall provide such documents and other assurances as shall reasonably be required by the Collateral Agent in order that such indebtedness shall be effectively subject
to a first-priority Lien in favour of the Collateral Agent, subject only to Permitted Liens; 

  
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	 	(iv)	make any investment of any nature save for the following: 

  

	 	(A)	the advancing of the LuxCo Loan and other loans to other MDA Parties as part of its business contemplated by item (ii) above and in respect of which other loans LuxCo shall provide such documents and other
assurances as shall reasonably be required by the Collateral Agent in order that such other loans shall be effectively subject to a first-priority Lien in favour of the Collateral Agent, subject only to Permitted Liens; 

 

	 	(B)	the existing advance of US$40 million to MDA US Systems Holdings, Inc.; 

  

	 	(C)	the acquisition of shares or other ownership interests in private entities controlled by the Borrower as part of its business contemplated by item (ii) above; and 

 

	 	(D)	the holding of cash balances in financial institutions of recognized international standing; 

  

	 	(v)	sell, assign, grant an interest in or otherwise dispose of all or any portion of the LuxCo Loan (other than to an MDA Party on such terms and otherwise in such manner as shall, in the opinion of the Lenders’
Counsel, preserve in all material respects the rights and remedies of the Collateral Agent and the Secured Parties under the Security); 

  

	 	(vi)	advance further monies to MDA Holdings or any other MDA Party after the date hereof other than on substantially the same terms and conditions as the terms and conditions of the LuxCo Loan, together with such
modifications as shall not in any material respect be prejudicial to the interests of the Collateral Agent or the Secured Parties in their capacity as secured creditors; or 

 

	 	(vii)	agree to any modification of the LuxCo Loan or any loan to any other MDA Party that is in any material respect prejudicial to the interests of the Collateral Agent or the Secured Parties in their capacity as secured
creditors. 

  

	 	(b)	The Borrower will not: 

  

	 	(i)	sell, assign, grant an interest in or otherwise dispose of all or any portion of the Parent Loan (other than to an MDA Party on such terms and otherwise in such manner as shall, in the opinion of the Lenders’
Counsel, preserve in all material respects the rights and remedies of the Collateral Agent and the Secured Parties under the Security); 

  

	 	(ii)	advance further monies to LuxCo after the date hereof other than on substantially the same terms and conditions as the terms and conditions of the Parent Loan, together with such modifications as shall not in any
material respect be prejudicial to the interests of the Collateral Agent or the Secured Parties in their capacity as secured creditors; or 

  

	 	(iii)	agree to any modification of the Parent Loan that is in any material respect prejudicial to the interests of the Collateral Agent or the Secured Parties in their capacity as secured creditors. 

  
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	 	(12)	Financial Ratios. The Borrower will not permit: 

  

	 	(a)	the ratio of Consolidated Debt to EBITDA to exceed 3.5:1; or 

  

	 	(b)	the ratio of Adjusted EBITDA to LTM Fixed Charges to be less than 1.5:1; or 

  

	 	(c)	Equity to fall below the sum of (i) C$185 million, (ii) 50% of positive consolidated net income of the Borrower for each Financial Quarter from and including the Financial Quarter ending September 30,
2011, and (iii) 100% of the proceeds (net of customary transaction costs) from the treasury issue of equity securities by the Borrower, in each case calculated as at the end of each Financial Quarter on the basis of the Financial Quarter then ended;

 in each case calculated (i) as at the end of each Financial Quarter on the basis of the four Financial Quarters then
ended, and (ii) using company-prepared financial statements for quarterly calculations and audited consolidated year-end financial statements for annual calculations; provided that the ratio set forth in
paragraph (a) shall be equal to or less than 4.0:1 for the two consecutive Financial Quarters (the “relief period”) immediately following any period of two consecutive Financial Quarters (the “purchase period”)
in which one or more acquisitions or investments, as the case may be, by the Borrower or a subsidiary (but excluding any Non-Recourse Subsidiary) take place, including the Acquisition, or any other
acquisitions or investments having an aggregate value in excess of 50% of EBITDA for the period of four consecutive Financial Quarters ending with the purchase period (and for the purpose of which determination of 50% of EBITDA, EBITDA shall not be
adjusted as set forth in paragraph (g) of the definition of EBITDA), the whole to the extent that such other acquisition or investment is otherwise permitted hereunder and that no Default or Event of Default exists at such time. 

 

	 	(13)	Certain Acquisitions. 

  

	 	(a)	Neither the Borrower nor any subsidiary shall enter into any acquisition or investment in a person (other than an MDA Party) for a purchase price or investment in excess of $100 million but less than
$500 million unless the following conditions shall have been fulfilled: 

  

	 	(i)	such acquisition or investment shall be in a similar line of business as a business then carried on by the Borrower or its Designated Subsidiaries; 

 

	 	(ii)	after giving effect to such acquisition or investment on a pro forma basis, the ratio of Consolidated Debt to EBITDA shall not exceed 2.5:1; and 

 

	 	(iii)	both immediately prior to and after giving effect to such acquisition or investment, no Default or Event of Default shall have occurred and be continuing; 

 

	 	(b)	Neither the Borrower nor any subsidiary shall enter into any acquisition or investment in a person (other than an MDA Party) for a purchase price or investment in excess of $500 million without the written approval
of the Majority Lenders, which approval will not be unreasonably withheld. 

  

	 	(14)	Accounts. The Borrower shall ensure that at no time shall the aggregate balance held in all bank accounts of the Designated Subsidiaries in the United States exceed US$10 million, excluding:

  

	 	(a)	DACA Accounts; and 

  
 93 

	 	(b)	any bank accounts held by MDA Information Systems, LLC. 

  

	10.3	Classified Reorganization. 

 Notwithstanding any other provision hereof, the implementation of the
Classified Reorganization will not constitute an Event of Default; provided that the Borrower shall provide not less than 60 days’ notice of the Classified Reorganization, together with copies of all relevant documents (draft or otherwise) then
available, and shall thereafter provide to the Administrative Agent (i) copies of subsequent draft documents as and when the same become available, and (ii) from time to time such further and other information regarding the Classified
Reorganization as the Administrative Agent shall reasonably request. 
  

	10.4	Administrative Agent May Perform Covenants. 

 If an MDA Party or MDA Pledgor shall fail to perform or
observe any covenant on its part contained herein or in any other Credit Facility Document, the Administrative Agent may, in its sole discretion acting reasonably, and shall upon the instructions of the Majority Lenders, perform any of the said
covenants capable of being performed by the Administrative Agent and, if any such covenant requires the payment or expenditure of money, the Administrative Agent may make such payment or expenditures with its own funds or with money borrowed for
that purpose (but the Administrative Agent shall be under no obligation to do so); provided that the Administrative Agent shall first have provided written notice of its intention to the Borrower and a reasonable opportunity (not to exceed 20 days,
or such longer period as the Lenders shall approve) to cure the failure. All amounts paid by the Administrative Agent pursuant to this section 10.4 shall be repaid by the Borrower to the Administrative Agent on demand therefor, shall form part of
the Obligations and shall be secured by the Security. No payment or performance under this section 10.4 shall relieve the Borrower from any Event of Default. 

Article 11 
 CHANGES
IN CIRCUMSTANCES 
  

	11.1	Illegality. 

 If the enactment of any applicable Law in any jurisdiction or any province, state,
territory or other political subdivision thereof, or any change therein or in the interpretation or application thereof by any Official Body or compliance by a Lender with any guideline, official directive, request or direction (whether or not
having the force of Law) of any Official Body in any jurisdiction or any province, state, territory or other political subdivision thereof, hereafter makes it unlawful for a Lender to make, fund or maintain any type of Accommodation or to give
effect to its obligations in respect of such type of Accommodation, such Lender may, by written notice thereof to the Borrower and to the Administrative Agent, declare its obligations under this agreement in respect of such type of Accommodation to
be terminated, whereupon the same shall forthwith terminate, and the Borrower shall within the time required by such Law (or at the end of such longer period as such Lender at its discretion has agreed) repay or effect a Conversion of the Principal
Outstanding in respect of such type of Accommodation from such Lender, and shall pay all accrued interest and fees payable hereunder and all Increased Costs incurred in connection with the termination or Conversion of such type of Accommodation.

  

	11.2	Circumstances Requiring Different Pricing. 

 If, on or before any date on which an interest rate or
Discount Rate is to be determined on the basis of the CDOR Rate or US LIBOR, either: 
  

	 	(a)	the Administrative Agent (acting reasonably) determines that, because of circumstances affecting the London interbank market, adequate and fair means do not exist for ascertaining US LIBOR with respect to, or deposits
are not available in sufficient amounts in the ordinary course of business to fund, a requested US LIBOR Advance; 

  
 94 

	 	(b)	the Administrative Agent (acting reasonably) determines that the making or continuing of the requested US LIBOR Advance by the Lenders has been made impracticable by the occurrence of an event which materially adversely
affects the London interbank market generally; 

  

	 	(c)	the Agent is advised by Lenders holding at least 25% of the Commitments of all Lenders hereunder by written notice, such notice received by the Administrative Agent no later than 2:00 p.m. (Toronto time) on the third
Business Day prior to the date of the requested US LIBOR Advance that such Lenders have determined (acting reasonably) that US LIBOR will not adequately reflect the cost of funds to such Lenders of US Dollar deposits in such market for the
relevant Interest Period; 

  

	 	(d)	the Administrative Agent (acting reasonably) makes a determination, which determination shall be conclusive and binding upon the Borrower, and notifies the Borrower, that there no longer exists an active market for
Bankers’ Acceptances accepted by the Lenders; or 

  

	 	(e)	the Administrative Agent is advised by Lenders holding at least 25% of the Commitments of all Lenders hereunder by written notice that such Lenders have determined (acting reasonably) that the Discount Rate will not or
does not accurately reflect the cost of funds of such Lenders or the discount rate which would be applicable to a sale of Bankers’ Acceptances accepted by such Lenders in the market; 

then the Administrative Agent shall forthwith give notice of such event to the Borrower and each Lender, whereupon the obligation of each Lender to make CDOR
Rate Advances, US LIBOR Advances or Drawings (as the case may be) to the Borrower shall be suspended until the Administrative Agent gives notice to the Borrower and the Lenders that the circumstances giving rise to such determination no longer
exist. 
  

	11.3	Ibid. 

 If the Administrative Agent receives notice from a Lender that, by reason of circumstances
affecting financial markets inside or outside Canada, such Lender is unable to fund US Dollar Advances in Canada, then: 
  

	 	(a)	it shall so notify the Borrower and all Lenders and the right of the Borrower to select any affected type of Accommodation shall be suspended; 

 

	 	(b)	if any affected type of Accommodation is not yet outstanding, any applicable Notice shall be cancelled insofar as it relates to that type of Accommodation and that type of Accommodation requested therein shall not be
made in that form, without affecting the right of the Borrower to request another type of Accommodation; and 

  

	 	(c)	if any affected type of Accommodation is already outstanding at any time when the right of the Borrower to select such type of Accommodation is suspended, it shall upon ten days’ notice to the Borrower become a
Prime Rate Advance by Conversion (or on such earlier date as may be required to comply with applicable Law). 

  
 95 

	11.4	Increased Costs. 

 If: 
  

	 	(a)	the enactment or amendment of any Law or any change in the interpretation or application thereof by any Official Body; or 

  

	 	(b)	compliance by any Lender with any amendment or change to any existing directive, request or requirement (whether or not having the force of Law) of any Official Body (including the Bank for International
Settlements’ Paper on Capital Convergence, as implemented in Canada by the Office of the Superintendent of Financial Institutions’ Release dated August 19, 1988 and any further or other document), or with any new such directive,
request or requirement; 

 shall have the effect of: 
  

	 	(c)	increasing the cost to such Lender of performing its obligations under this agreement or in respect of any Accommodation, including the costs of maintaining any capital, reserve or special deposit requirements with
respect to this agreement or any Accommodation or with respect to its obligations hereunder or thereunder; 

  

	 	(d)	requiring such Lender to maintain or allocate any capital (including a requirement affecting such Lender’s allocation of capital to its obligations) or additional capital in respect of its obligations under this
agreement or in respect of any Accommodation or otherwise reducing the effective return to such Lender under this agreement or in respect of any Accommodation or on its total capital as a result of entering into this agreement or making any
Accommodation; 

  

	 	(e)	reducing any amount payable to it by or in an amount it deems material (other than a reduction resulting from a higher rate of income or capital Tax or other special Tax relating to such Lender’s income or capital
in general); or 

  

	 	(f)	causing such Lender to make any payment or to forgo any return on or calculated by reference to any amount received or receivable by such Lender under this agreement or in respect of any Accommodation;

 such Lender may give notice to the Borrower (with a copy to the Administrative Agent) specifying the nature of the event giving rise to
such additional cost, reduction, payment or forgone return and the Borrower shall promptly pay such amounts as such Lender may specify to be necessary to compensate it for any such additional cost, reduction, payment or forgone return. A
certificate setting out, in reasonable detail, the amount of any such additional cost, reduction, payment or forgone return, submitted in good faith by such Lender to the Borrower, shall be conclusive and binding for all purposes absent demonstrated
error. 
 If such circumstances continue in effect for 60 consecutive days, on request from the Borrower, the Borrower and the Administrative Agent shall
use their reasonable best efforts to arrange for one or more other persons (in this section 11.4, the “assuming Lender”) reasonably satisfactory to the Borrower and the Administrative Agent to assume all or a portion of the
relevant Commitments and acquire the outstanding Accommodations and other rights and interests of the affected Lender hereunder. The assuming Lender and affected Lender shall execute all such documents as may be reasonably required by the
Administrative Agent and the Borrower to effect such assumption and acquisition. Failing such assumption and acquisition, the Borrower may effect a prepayment and cancellation of the relevant Commitments of the affected Lender (without reducing or
prepaying the Commitment(s) of any other Lender(s)). 

  
 96 

	11.5	Indemnification. 

  

	 	(1)	Matching Funds. The Borrower shall promptly pay to each Lender any amounts required to compensate such Lender or its Participants for any breakage or similar cost, loss, cost of redeploying funds or other cost or
expense suffered or incurred by such Lender or Participant as a result of: 

  

	 	(a)	any payment being made by the Borrower in respect of a US LIBOR Advance, CDOR Rate Advance or Bankers’ Acceptance (due to acceleration hereunder or a mandatory repayment or prepayment of principal or for any other
reason) on a day other than the last day of an Interest Period or the maturity date applicable thereto; provided that, where the event giving rise to such payment is a mandatory repayment or prepayment, the Borrower may at its option instead deposit
the amount of the repayment or prepayment to a segregated account pending expiry of the existing Interest Period or (as the case may be) maturity of outstanding Bankers Acceptances, and the monies in such segregated account shall be applied by the
Administrative Agent to the required repayment or prepayment on the expiry of such Interest Period or maturity of such Bankers Acceptance; 

  

	 	(b)	the Borrower’s failure to give notice in the manner and at the times required hereunder; or 

  

	 	(c)	the failure of the Borrower to fulfil or honour, before the date specified for any Accommodation, the applicable conditions set forth in Article 6 or to accept an Accommodation after delivery of a Notice in the manner
and at the time specified in such Notice. 

 A certificate of such Lender submitted to the Borrower (copy to the Administrative
Agent) as to the amount necessary to so compensate such Lender or its Participants shall be conclusive evidence, absent demonstrated error, of the amount due from the Borrower to such Lender. 

 

	 	(2)	General. Without limiting section 10.1(12), the Borrower agrees to indemnify the Administrative Agent, the Lenders and their respective affiliates, and the directors, officers and employees of each of them, from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the indemnitees or
any of them, related to or arising out of the transactions contemplated hereunder or under any other Credit Facility Document; provided that no amount shall be payable under this section 11.5(2) to the extent that same arises out of the gross
negligence or wilful misconduct of an indemnified person, or out of a breach by it of the terms of this agreement or any other Credit Facility Document. 

  

	11.6	Taxes, Costs, etc. 

  

	 	(1)	Gross-Up. Any and all payments by the Borrower under this agreement or any other Credit Facility Document shall be made free and clear of and without deduction or
withholding for Taxes unless such Taxes are required by Law to be deducted or withheld. If the Borrower shall be required by Law to deduct or withhold any Taxes from or in respect of any sum payable hereunder or thereunder: 

 

	 	(a)	the sum payable shall be increased as may be necessary so that after making all required deductions or withholdings (including deductions or withholdings applicable to additional amounts paid under this section) the
Administrative Agent or the relevant Lender (as the case may be) receives an amount equal to the sum it would have received if no deduction or withholding had been made; 

  
 97 

	 	(b)	the Borrower shall make such deductions or withholdings; and 

  

	 	(c)	the Borrower shall pay the full amount deducted or withheld to the relevant taxation or other authority in accordance with applicable Law. 

Within 30 days after paying any sum from which it is required by Law to make any deduction or withholding, and within thirty days after the due
date of payment of any Tax which it is required by section 11.6(1)(b) above to pay, the Borrower shall deliver to the Administrative Agent an official receipt or other evidence satisfactory to the other affected parties of such deduction,
withholding or payment and of the remittance thereof to the relevant Official Body. 
  

	 	(2)	Prepayment; Replacement. In the event that the Borrower shall become obligated to make additional payments to a Lender by virtue of this section 11.6, the Borrower shall be permitted to: 

 

	 	(a)	effect a voluntary prepayment under section 2.4(2) of all (but not less than all) of the Obligations owed to such Lender under each relevant Credit Facility, without the obligation to effect concurrent prepayments to
any other Lenders as contemplated by section 2.4(3); or 

  

	 	(b)	as to the entire Commitment of such Lender under each relevant Credit Facility, replace such Lender with one or more existing Lenders or by a new Lender, in each case where such existing or new Lender is satisfactory to
the Borrower, the Administrative Agent and the Fronting Lender. 

  

	 	(3)	Pay Taxes. The Borrower shall pay all Taxes which arise from any payment made hereunder or under any other Credit Facility Document or from the execution, delivery or registration of, or otherwise with respect
to, this agreement or such other Credit Facility Document. 

  

	 	(4)	Indemnity. The Borrower shall indemnify and save harmless the Administrative Agent and each Lender for the full amount of Taxes (including any Taxes imposed by any jurisdiction on amounts payable under this
section) paid by the Administrative Agent or such Lender (as the case may be) and any liability (including penalties, interest and expense) arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally asserted.
Payment under this indemnification shall be made within 30 days from the date the Administrative Agent or such Lender (as the case may be) makes written demand therefor. A certificate as to the amount of such Taxes submitted by the Administrative
Agent or such Lender (as the case may be) to the Borrower (copy to the Administrative Agent if submitted by a Lender) shall be conclusive evidence, absent demonstrated error, of the amount due from the Borrower to Administrative Agent or such Lender
(as the case may be). 

  

	 	(5)	Survival. Without prejudice to the survival of any other agreement or obligation of the Borrower hereunder or under any other Credit Facility Document, the obligations of the Borrower under this section 11.6
shall survive the payment and performance of the Obligations. 

  

	 	(6)	Limitation. The Administrative Agent or the relevant Lender (as the case may be) shall exercise reasonable commercial efforts to limit the incidence of any additional amounts payable under this section 11.6, and
the Borrower shall not be obligated to pay any such amounts to the extent that they arise after the cause of same is rescinded, removed, repealed or withdrawn. 

  
 98 

	 	(7)	FATCA. If a payment made to a Lender hereunder would be subject to United States federal withholding Taxes imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of
FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by Law and at such time or times reasonably requested
by the Borrower or the Administrative Agent, such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the
Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the
amount to deduct and withhold from such payment. Solely for purposes of this clause (7), “FATCA” shall include any amendments made to FATCA after the date of this agreement. 

 

	11.7	Affected Lender. 

  

	 	(1)	Replacement of Affected Lender. If any Lender does not provide its consent or agreement to a request by the Borrower for a waiver, approval or amendment which requires the consent of all of the Lenders pursuant
to the provisions of this agreement (each such non-consenting Lender being herein referred to as an “Affected Lender”), then the Borrower may, provided no Event of Default has occurred and is
continuing, give the Administrative Agent notice of its intention to cause such Affected Lender to assign its Commitment in full to one or more financial institutions acceptable to the Administrative Agent, the Swingline Lender and the Fronting
Lender, and the Borrower shall pay any fees payable thereunder in connection with such assignment; provided that, on the date of such assignment: 

  

	 	(a)	such Affected Lender shall execute and deliver such documents assigning its Commitment as shall be required for such purpose, as contemplated by section 14.8; 

 

	 	(b)	the replacement Lender shall pay to such Affected Lender an amount equal to the principal of, and all accrued interest on, all outstanding Accommodations of such Affected Lender; and 

 

	 	(c)	the Borrower shall pay any amounts payable to such Affected Lender under section 11.5 as if it were a voluntary prepayment under section 2.4. 

 

	 	(2)	Repayment of Affected Lender. In addition, in the circumstances set forth in section 11.7(1) the Borrower may at its option, instead of causing such Affected Lender to assign its Commitment as aforesaid and
provided no Event of Default has occurred and is continuing, elect to prepay and permanently cancel the Commitment of such Affected Lender, in which case: 

  

	 	(a)	the Borrower shall pay to such Affected Lender an amount equal to the principal of, and all accrued interest on, all outstanding Accommodations of such Affected Lender; and 

 

	 	(b)	the Borrower shall pay any amounts payable to such Affected Lender under section 11.5 as if it were a voluntary prepayment under section 2.4. 

  
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	 	(3)	No Obligation. Neither the Administrative Agent nor any Lender shall be obligated to take up any Affected Lender’s Commitment or to locate or provide a replacement for any Affected Lender. 

 

	 	(4)	More Than One Affected Lender. If, in any circumstances, there is more than one Affected Lender, the Borrower shall deal with each such Affected Lender in an equivalent manner. 

Article 12 
 EVENTS
OF DEFAULT 
  

	12.1	Events of Default. 

 Each of the events set forth in this section 12.1 shall constitute an “Event
of Default”. 
  

	 	(1)	Payment. The Borrower shall fail: 

  

	 	(a)	to pay the principal amount of any Advance or BA Equivalent Loan when the same becomes due and payable; 

  

	 	(b)	to reimburse any Revolving Lender in respect of any Bankers’ Acceptance or Fronting Lender in respect of any Letter of Credit, or pay the Face Amount thereof, when required hereunder; 

provided that it shall not constitute an Event of Default if the Borrower gave timely instructions for payment of funds and such failure
results from an administrative or technical error or omission, caused by a party other than the Borrower, in connection with the transfer of funds or the administration of the accounts from which such payments are to be made and continues for a
period not greater than one Business Day; or 
  

	 	(c)	to pay any interest or fees hereunder when the same becomes due and payable and such failure shall remain unremedied for a period of three Business Days. 

 

	 	(2)	Representations and Warranties Incorrect. Any of the representations or warranties made or deemed to be made by an MDA Party or MDA Pledgor in any Credit Facility Document shall prove to be or have been incorrect
in any material respect when made or deemed to be made. 

  

	 	(3)	Covenants. The Borrower defaults in the performance of or compliance with any term contained in section 6.1(1) (with respect to the proviso therein) or sections 8.2, 10.1(1), 10.1(9)(a)(i), (iii) or (iv),
10.1(16), 10.1(18), 10.1(23) or 10.2 or with the requirements set forth in the proviso of section 10.3. 

  

	 	(4)	Failure to Perform Covenants. Any MDA Party or MDA Pledgor or subsidiary shall fail to perform or observe any covenant contained in this agreement or any other Credit Facility Document (and not otherwise referred
to in this section 12.1) on its part to be performed or observed or otherwise applicable to it hereunder or thereunder; provided that, if such failure is capable of being remedied, no Event of Default shall have occurred as a result thereof unless
and until such failure shall have remained unremedied for 30 days after the earlier of (i) written notice thereof given to the Borrower by the Administrative Agent, and (ii) such time as such person is aware of same. 

 

	 	(5)	Cross-Default. Any MDA Party or MDA Pledgor shall fail to pay the principal of any Debt (excluding the obligations under the Credit Facilities or Debt owed to another MDA Party) which is outstanding in an
aggregate principal amount exceeding US$25 million (or the Equivalent Amount in any other currency) when such amount becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) beyond any
applicable grace period. 

  

  
 100 

	 	(6)	Cross-Acceleration. Any other event occurs or condition exists (including a failure to pay the premium or interest on such Debt) and continues after the applicable grace period (if any) specified in any agreement
or instrument relating to any Debt of any MDA Party or MDA Pledgor to any person or persons (excluding Debt owed to another MDA Party) which is outstanding in an aggregate principal amount exceeding US$25 million (or the Equivalent Amount in
any other currency) without waiver of such failure by the holder of such Debt on or before the expiration of such period, as a result of which such holder accelerates such Debt. 

 

	 	(7)	Voluntary Events of Bankruptcy. Any MDA Party or MDA Pledgor shall: 

  

	 	(a)	apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, administrator, trustee, liquidator or other similar official for itself or for all or any part of its assets;

  

	 	(b)	generally not pay its debts as such debts become due or admit in writing its inability to pay its debts generally, or declare any general moratorium on its indebtedness; 

 

	 	(c)	commit an act of bankruptcy, or make a general assignment for the benefit of creditors or a proposal under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada)
or a similar Law of any applicable jurisdiction; 

  

	 	(d)	institute any proceeding seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, dissolution, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts
under any statute, rule or regulation relating to bankruptcy, insolvency, reorganization, relief or protection of debtors or at common law or in equity (including an arrangement with creditors (“concordat préventif de
faillite”), controlled management (“gestion contrôlée”) or suspension of payments (“sursis de paiement”) or any other proceedings pursuant to Council Regulation (EC) no 1346/2000 of 29 May
2000 on insolvency proceedings); or 

  

	 	(e)	take any corporate action to authorize any of the actions described in this section 12.1(7); 

or any event occurs with respect to any MDA Party or MDA Pledgor which under the laws of any jurisdiction is analogous to any of the events
described in this section 12.1(7). 
  

	 	(8)	Involuntary Events of Bankruptcy. Any proceeding against an MDA Party or MDA Pledgor: 

  

	 	(a)	has adjudicated it a bankrupt or insolvent; 

  

	 	(b)	has resulted in the liquidation, dissolution, winding-up, reorganization, arrangement, adjustment, protection or relief or composition of it or its debts under any statute, rule
or regulation relating to bankruptcy, insolvency, reorganization, relief or protection of debtors, or at common law or in equity (including an arrangement with creditors (“concordat préventif de faillite”), controlled
management (“gestion contrôlée”) or suspension of payments (“sursis de paiement”) or any other proceedings pursuant to Council Regulation (EC) no 1346/2000 of 29 May 2000 on insolvency
proceedings); or 

  
 101 

	 	(c)	has resulted in the appointment of a receiver, custodian, administrator, trustee, liquidator or other similar official for it or any material part of its assets (it being acknowledged for the purposes of this section
that shares in the capital of a Designated Subsidiary constitute a material part of the assets of an MDA Party or MDA Pledgor), and such appointment has not been stayed or discharged by it within 60 days from the date made; 

or any event occurs with respect to any MDA Party or MDA Pledgor which under the laws of any jurisdiction is analogous to any of the events
described in this section 12.1(8). 
  

	 	(9)	Execution. All or any material part of the assets of an MDA Party or MDA Pledgor (it being acknowledged for the purposes of this section that shares in the capital of a Designated Subsidiary constitute a material
part of the assets of an MDA Party or MDA Pledgor) are attached, executed, sequestered or distrained upon or become subject to any order of a court or other process and: 

 

	 	(a)	such attachment, execution, sequestration, distraint, order or process relates to claims in the aggregate in excess of US$25 million (or the Equivalent Amount in any other currency); and 

 

	 	(b)	such MDA Party or MDA Pledgor shall not discharge the same or provide for its discharge in accordance with its terms, or procure a stay of execution thereof, or deposit with the Administrative Agent cash collateral or
other security satisfactory to the Lenders in the amount of the claim, within 60 days from the date of entry thereof (which security may be comprised of cash collateral or other security deposited with or delivered to the Collateral Agent).

  

	 	(10)	Judgments. Judgment (subject to no further right of appeal) for the payment of money in an amount which, after giving effect to any available insurance and any funds actually received by the Borrower pursuant to
section 10.8 of the Purchase Agreement), is in excess of US$25 million (or the Equivalent Amount in any other currency) shall be rendered by a court of competent jurisdiction against any MDA Party or MDA Pledgor and such MDA Party or MDA
Pledgor shall not discharge the same or provide for its discharge in accordance with its terms, or procure a stay of execution thereof, or deposit with the Administrative Agent cash collateral or other security satisfactory to the Lenders in the
amount of the judgment, within 60 days from the date of entry thereof (which security may be comprised of cash collateral or other security deposited with or delivered to the Collateral Agent). 

 

	 	(11)	Documents Unenforceable. (i) Any of the Credit Facility Documents shall cease for any reason to be in full force and effect in any material respect (other than as a result of any actions or inactions on the
part of any Lender, the Administrative Agent or the Collateral Agent) or any MDA Party or MDA Pledgor shall purport in writing to disavow its obligations thereunder, shall declare in writing that it does not have any further obligation thereunder or
shall contest in writing the validity or enforceability thereof, or (ii) any item of Security shall cease for any reason (other than pursuant to the terms thereof) to create a valid security interest in any material portion of the Collateral
purported to be covered thereby or such security interest shall for any reason cease to be a perfected and first priority security interest subject only to Permitted Liens. 

 

	 	(12)	Employee Benefit Plans.There shall occur one or more ERISA Events which individually or in the aggregate results, or could reasonably be expected to result, in an MAE. 

  
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	 	(13)	Change in Control. A Change in Control shall occur. 

  

	12.2	Effect. 

  

	 	(1)	General. Upon the occurrence and continuance of an Event of Default, except as provided in section 12.2(2), the Administrative Agent: 

 

	 	(a)	shall, at the request of the Majority Lenders, by notice to the Borrower cancel all obligations of the Lenders in respect of the Commitments (whereupon no further Accommodations may be made and any Notice given with
respect to an Accommodation occurring on or after the date of such notice or request shall cease to have effect); and 

  

	 	(b)	shall, at the request of the Majority Lenders, by notice to the Borrower declare the Obligations to be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by the Borrower. 

  

	 	(2)	Specific Defaults. If any Event of Default specified in section 12.1(7) or 12.1(8) shall occur, then all obligations of the Lenders in respect of the Commitments shall be automatically cancelled and the
Obligations shall be forthwith due and payable, all as if the request and notice specified in each of sections 12.2(1)(a) and 12.2(1)(b) had been received and given by the Administrative Agent. 

 

	 	(3)	Enforcement. Upon the occurrence of an Event of Default and acceleration of the Obligations, the Administrative Agent may, and shall at the request of the Majority Lenders, commence such legal action or
proceedings as it may deem expedient, including exercising and enforcing its rights and remedies under any Security (subject to the Intercreditor Agreement), all without any additional notice, presentation, demand, protest, notice of dishonour,
entering into of possession of any of the property or assets of any MDA Party or MDA Pledgor, or any other action, notice of all of which the Borrower hereby expressly waives. The rights and remedies of the Administrative Agent, the Lenders, the
other Secured Parties and the Collateral Agent hereunder and under the other Credit Facility Documents are cumulative and are in addition to and not in substitution for any other rights or remedies provided by Law; provided that nothing herein
contained shall permit any Lender to take any steps which, pursuant to this agreement, may only be undertaken by or with the consent of all Lenders or the Majority Lenders. Nothing contained herein or in any Security now or hereafter held by the
Collateral Agent, with respect to the Collateral or any part thereof, nor any act or omission of the Collateral Agent, the Administrative Agent, any Lender or any other Secured Party with respect to such Security, shall in any way prejudice or
affect the rights, remedies and powers of the Collateral Agent, the Administrative Agent, the Lenders or any other Secured Party with respect to any other such Security. 

 

	12.3	Right of Set-Off. 

 Following the occurrence of an Event of
Default and a declaration under section 12.2(1)(b) or the Obligations becoming due and payable under section 12.2(2), each Lender is hereby authorized by the Borrower at any time and from time to time to the fullest extent permitted by Law to set
off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other Debt at any time owing to or for the credit or the account of the Borrower against any and all of the Obligations of the
Borrower then due and payable hereunder and unpaid, and without limitation the Administrative Agent may debit any account of the Borrower for any such Obligations, whether owed to the Administrative Agent in its capacity as Administrative Agent or
Lender or owed to other Lenders. Each Lender shall promptly notify the Borrower, the Administrative Agent and each other Lender after any such set-off and application made by such Lender; provided that the
failure to give such notice shall not affect 

  
 103 

 
the validity of such set-off and application. The rights of the Lenders under this section 12.3 are, as between themselves, subject to section 14.1, and
the rights of the Administrative Agent and the Lenders under this section 12.3 are in addition to all other rights and remedies (including other rights of set-off) which the Administrative Agent or the Lenders
may have. 
  

	12.4	Currency Conversion After Acceleration. 

 At any time following the occurrence of an Event of Default and
the acceleration of the Obligations, each Lender shall be entitled to convert, with two Business Days’ prior notice to the Borrower, its unpaid and outstanding Canadian Dollar Advances under the Credit Facilities, or either of them, to Base
Rate Advances. Any such conversion shall be calculated so that the resulting Base Rate Advances shall be the Equivalent Amount in US Dollars on the date of conversion of the amount of Canadian Dollars so converted. Any accrued and unpaid interest
denominated in Canadian Dollars at the time of any such conversion shall be similarly converted to US Dollars, and such Base Rate Advances and accrued and unpaid interest thereon shall thereafter bear interest in accordance with Article 3. 

Article 13 
 THE
ADMINISTRATIVE AGENT AND THE LENDERS 
  

	13.1	Authorization and Action. 

 Each Lender hereby appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers under this agreement and the other Credit Facility Documents as are delegated to the Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by this agreement or such other Credit Facility Documents, the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or
to refrain from acting (and shall be fully indemnified and protected in so acting or refraining from acting) upon the instructions of the Majority Lenders and such instructions shall be binding upon all Lenders; provided that the Administrative
Agent shall not be required to take any action which exposes it to personal liability or which is contrary to this agreement or such other Credit Facility Documents or applicable Law. 

The Administrative Agent is hereby authorized and directed to enter into the Intercreditor Agreement in its capacity as Administrative Agent hereunder.
Without limiting the immediately prior sentence, each Lender hereby authorizes the Administrative Agent to enter into the Intercreditor Agreement on behalf of such Lender (each Lender hereby agreeing to be bound by the terms of the Intercreditor
Agreement as if it were a party thereto, with the Collateral Agent and the other Secured Parties being intended third-party beneficiaries of the authorization and agreement of this sentence). 

Each Lender acknowledges that Royal Bank may also act as Collateral Agent, and hereby consents to Royal Bank doing so and the performance by Royal Bank of its
duties and obligations as Collateral Agent under the Intercreditor Agreement. Each Lender further acknowledges that, in so acting, Royal Bank will be representing the interests of and acting as agent for all of the Secured Parties, and agrees that
it will not claim or assert that, by entering into the Intercreditor Agreement as Collateral Agent or performing its duties and obligations thereunder, Royal Bank has breached any duty or obligation to such Lender or is subject to a conflict of
interest. 
  

	13.2	Duties and Obligations. 

 The duties and obligations of the Administrative Agent hereunder shall be
mechanical and administrative in nature, and the Administrative Agent shall not have by reason of this agreement or any other Credit Facility Document any fiduciary relationship or duty with or to any Lender. 

  
 104 

 Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable to any
Lender for any action taken or omitted to be taken by it or them under or in connection with this agreement or any other Credit Facility Document except for its or their own gross negligence or wilful misconduct. Without limiting the generality of
the foregoing, the Administrative Agent: 
  

	 	(a)	may treat any Lender as the payee of amounts attributable to such Lender’s Commitment unless and until the Administrative Agent receives written notice of the assignment thereof signed by such Lender and the
Administrative Agent receives the written agreement of the assignee that such assignee is bound hereby as if it had been an original Lender party hereto, in each case in form satisfactory to the Administrative Agent and otherwise in accordance with
section 14.8; 

  

	 	(b)	may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable to the Lenders for any action taken or omitted to be taken by
it in good faith in accordance with the advice of such counsel, accountants or experts; 

  

	 	(c)	shall incur no liability under or in respect of this agreement or any other Credit Facility Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telegram, cable,
facsimile or similar means of recorded communication) believed by it to be genuine and signed or sent by the proper party or parties or by acting upon any representation or warranty of the Borrower made or deemed to be made hereunder or thereunder;

  

	 	(d)	may assume that no Default or Event of Default has occurred and is continuing unless it has actual knowledge to the contrary; and 

  

	 	(e)	may rely as to any matters of fact which might reasonably be expected to be within the knowledge of any person upon a certificate signed by or on behalf of such person. 

Further, the Administrative Agent: 
  

	 	(f)	makes no warranty or representation to any Lender and shall not be responsible to any Lender for the accuracy or completeness of the documents, information or financial data made available to the Lenders in connection
with the negotiation of this agreement, or for any statements, warranties or representations (whether written or oral) made in or in connection with this agreement or any other Credit Facility Document; 

 

	 	(g)	shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this agreement or any other Credit Facility Document on the part of any MDA Party or
MDA Pledgor or any other person or to inspect any assets (including books and records); or 

  

	 	(h)	shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this agreement or any other Credit Facility Document. 

The Administrative Agent shall promptly distribute to the Lenders copies of all material received from the Borrower in compliance with the Borrower’s
reporting obligations hereunder. 

  
 105 

	13.3	Administrative Agent and Affiliates. 

 With respect to its Commitment and Accommodations made and to be
made by it, the Administrative Agent, which is also a Lender, shall have the same rights and powers under this agreement and every other Credit Facility Document as any other Lender and may exercise the same as though it were not an agent; and the
terms “Lender” and “Lenders” shall, unless otherwise expressly indicated, include the Administrative Agent in its capacity as Lender. Each Lender (including the Administrative Agent) and its affiliates may accept deposits from,
lend money to and generally engage in any kind of business with the Borrower and its affiliates, or any corporation or other entity owned or controlled by such persons, and any person which may do business with such persons, all as if it were not a
party hereto and without any duty to account therefor to any Lender; provided that nothing in this section 13.3 shall affect in any manner whatsoever any covenant or other obligation on the part of the Borrower or any other person to be
observed or performed under this agreement or any other Credit Facility Document. 
  

	13.4	Lender Credit Decision. 

 It is understood and agreed by each Lender that it has itself been, and will
continue to be, solely responsible for making its own independent appraisal of and investigations into the financial condition, creditworthiness, condition, affairs, status and nature of the Borrower and its affiliates. Accordingly, each Lender
confirms to the Administrative Agent and each other Lender that it has not relied, and will not hereafter rely, on the Administrative Agent or any other Lender: 
  

	 	(a)	to check or inquire on its behalf into the adequacy, accuracy or completeness of any information provided by or on behalf of the Borrower or any affiliate under or in connection with this agreement or any other Credit
Facility Document or the transactions herein or therein contemplated (whether or not such information has been or is hereafter distributed to such Lender by the Administrative Agent or another Lender), or 

 

	 	(b)	to assess or keep under review on its behalf the financial condition, creditworthiness, condition, affairs, status or nature of the Borrower or any affiliate. 

Each Lender acknowledges that a copy of this agreement has been made available to it for its review and that it is satisfied with the form and substance
hereof. 
  

	13.5	Indemnifications. 

 Each Lender shall indemnify the Administrative Agent, each affiliate thereof, and
each respective director, officer, and employee of the Administrative Agent and of each such affiliate (to the extent not indemnified by the Borrower), rateably with all other Lenders according to their respective Commitments, from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent or any such
affiliate, director, officer or employee in any way relating to or arising out of this agreement or any other Credit Facility Document or any action taken or omitted by the Administrative Agent or any such affiliate, director, officer or employee
under this agreement or any other Credit Facility Document; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the gross negligence or wilful misconduct of the indemnitee. Without limiting the generality of the foregoing, each Lender agrees to reimburse the Administrative Agent and each such affiliate, director, officer or employee promptly upon demand
for its share (determined rateably as aforesaid) of any out-of-pocket expenses (including counsel fees) incurred by the indemnitee in connection with the preservation of
any rights of the Administrative Agent or the Lenders under, or the enforcement of, or legal advice in respect of rights or responsibilities under, this agreement or any other Credit Facility Document, to the extent that the Administrative Agent or
such affiliate, director, officer or employee is not reimbursed for such expenses by the Borrower. 

  
 106 

	13.6	Successor Administrative Agent. 

 The Administrative Agent may, as hereinafter provided, resign at any
time by giving written notice thereof to the Lenders and the Borrower and may be removed at any time with cause by the Majority Lenders. Upon any such resignation or removal, the Lenders, after consultation with the Borrower if no Event of Default
exists, shall have the right to appoint a successor Administrative Agent, which shall be a Lender. If no successor Administrative Agent shall have been so appointed by the Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent’s giving of notice of resignation or the Lenders’ removal of the retiring Administrative Agent, then the retiring Administrative Agent shall on behalf of the Lenders forthwith designate a Lender (if such
Lender shall have accepted such designation) the pro tem successor Administrative Agent, and such designated Lender shall act as Administrative Agent hereunder pending the appointment of its successor. Upon the acceptance of any appointment
as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from any further duties and obligations under this agreement. After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this
Article 13 shall enure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this agreement. 
  

	13.7	Sub-Agent or Co-Agent. 

At any time or times, in order to comply with any legal requirement in any province, state or other jurisdiction, or to facilitate the taking by the
Administrative Agent of any action provided for in any Credit Facility Document, the Administrative Agent may appoint one or more trust companies, chartered banks or other persons (any of whom may, but need not be, a Lender) to act either as co-agent or sub-agent, jointly with the Administrative Agent or as a separate agent or agents on behalf of the Lenders, with such powers and authorities as the Administrative
Agent deems necessary for the effective operation of the provisions of any Credit Facility Document. In the discretion of the Administrative Agent, any instrument or agreement appointing any such co-agent or sub-agent may include provisions for the protection of such co-agent or sub-agent similar to but no broader than the provisions of this
Article 13. Upon the appointment of any such co-agent or sub-agent by the Administrative Agent, all references in this agreement and in all other Credit Facility
Documents to the Administrative Agent shall thereafter be construed as references to such co-agent or sub-agent to the extent necessary in order to give effect to its
powers, authorities and obligations. 
  

	13.8	Assignment of Documents. 

 Upon the resignation or removal of the Administrative Agent pursuant to
section 13.6, the Administrative Agent shall assign and transfer to the successor Administrative Agent all of its right, title and interest, as agent, in and to the Credit Facility Documents. The successor Administrative Agent shall ensure that all
required notices, registrations and filings in connection with such assignment are given or made, as the case may be, and the Borrower shall reimburse the successor Administrative Agent for and in respect of all of its reasonable costs and expenses
in connection therewith. 
  

	13.9	Collective Action of the Lenders. 

 Each of the Lenders hereby acknowledges that to the extent permitted
by applicable Law, any collateral security and the remedies provided under the Credit Facility Documents to the Lenders are for the benefit of the Lenders collectively and acting together and not severally and further acknowledges that its rights
hereunder and under any collateral security are to be exercised not severally, but by the Administrative Agent upon the decision of the Majority Lenders (or such other number or percentage of the Lenders or other Secured Parties as shall be
expressly provided for in the Credit Facility Documents). Accordingly, notwithstanding any of the provisions contained herein or in any other Credit Facility Document, each of the Lenders hereby covenants and agrees that it shall not be entitled to
take any action hereunder or thereunder including any declaration of default hereunder or thereunder but that any such action shall be 

  
 107 

 
taken only by the Administrative Agent with the prior written agreement of the Majority Lenders (or such other number or percentage of the Lenders or other Secured Parties as shall be expressly
provided for in the Credit Facility Documents). Each of the Lenders hereby further covenants and agrees that upon any such written agreement being given, it shall co-operate fully with the Administrative Agent
to the extent requested by the Administrative Agent. Notwithstanding the foregoing, in the absence of instructions from the Lenders and where in the sole opinion of the Administrative Agent, acting reasonably and in good faith, the exigencies of the
situation warrant such action, the Administrative Agent may without notice to or consent of the Lenders take such action on behalf of the Lenders as it deems appropriate or desirable in the interest of the Lenders. 

 

	13.10 	No Other Duties, etc. 

 Anything herein to the contrary notwithstanding, none of the bookrunners,
arrangers or holders of similar titles, if any, specified in this agreement shall have any powers, duties or responsibilities under this agreement or any of the other Credit Facility Documents, except in its capacity, as applicable, as
Administrative Agent or a Lender hereunder. 
 Article 14 

MISCELLANEOUS 
  

	14.1	Sharing of Payments; Records. 

  

	 	(1)	The Fronting Lender. Upon the occurrence of an Event of Default, adjustments shall be made among the Revolving Lenders as set forth in this section 14.1(1). 

 

	 	(a)	Unless the Fronting Lender and the Majority Lenders under the Revolving Facility agree otherwise, if an Event of Default occurs and either: 

 

	 	(i)	a payment had previously been made by the Fronting Lender under a Letter of Credit without full reimbursement by the Borrower (whether or not such failure to reimburse was the basis for such Event of Default); or

  

	 	(ii)	a Letter of Credit is thereafter drawn upon which results in a payment by the Fronting Lender thereunder; 

(each, in this section 14.1(1), an “LC Payment”, in the case of item (i) only to the extent not previously reimbursed by
the Borrower to the Fronting Lender), then the Fronting Lender will promptly request the Administrative Agent on behalf of the Borrower (and for this purpose the Fronting Lender is irrevocably authorized by the Borrower to do so) for a
Borrowing by way of an Advance in the relevant currency from the Revolving Lenders pursuant to Article 3 to reimburse the Fronting Lender for such LC Payment. The Revolving Lenders are irrevocably directed by the Borrower to make any Advance if
so requested by the Fronting Lender and pay the proceeds thereof directly to the Administrative Agent for the account of the Fronting Lender. Each Revolving Lender unconditionally agrees to pay to the Administrative Agent for the account of the
Fronting Lender such Revolving Lender’s Rateable Portion of each Advance requested by the Fronting Lender on behalf of the Borrower to repay LC Payments made by the Fronting Lender. 

 

	 	(b)	Except as provided in section 14.1(1)(d), the obligations of each Revolving Lender under section 14.1(1)(a) are unconditional, shall not be subject to any qualification or exception whatsoever and shall be performed in
accordance with the terms and conditions of this agreement under all circumstances including: 

  
 108 

	 	(i)	any lack of validity or enforceability of the Borrower’s obligations; 

  

	 	(ii)	the occurrence of any Default or Event of Default or the exercise of any rights by the Administrative Agent under Article 12; and 

  

	 	(iii)	the absence of any demand for payment being made, any proof of claim being filed, any proceeding being commenced or any judgment being obtained by the Fronting Lender against the Borrower. 

 

	 	(c)	If a Revolving Lender (a “Defaulting Lender”) fails to make payment on the due date therefor of any amount due from it for the account of the Fronting Lender pursuant to section 14.1(1)(a) (the balance
thereof for the time being unpaid being referred to in this section 14.1(1)(c) as an “overdue amount”) then, until the Fronting Lender has received payment of that amount (plus interest as provided below) in full (and without in any
way limiting the rights of the Fronting Lender in respect of such failure): 

  

	 	(i)	the Fronting Lender shall be entitled to receive any payment which the Defaulting Lender would otherwise have been entitled to receive in respect of the Revolving Facility or otherwise in respect of any Credit Facility
Document; and 

  

	 	(ii)	the overdue amount shall bear interest payable by the Defaulting Lender to the Fronting Lender at the rate payable by the Borrower in respect of the Obligations which gave rise to such overdue amount. 

 

	 	(d)	If for any reason an Advance may not be made pursuant to section 14.1(1)(a) to reimburse the Fronting Lender as contemplated thereby, then promptly upon receipt of notification of such fact from the Administrative
Agent, each Revolving Lender shall deliver to the Administrative Agent for the account of the Fronting Lender in immediately available funds the purchase price for such Revolving Lender’s participation interest in the relevant unreimbursed LC
Payments (including interest then accrued thereon and unpaid by the Borrower). Without duplication, each Revolving Lender shall, upon demand by the Fronting Lender made to the Administrative Agent, deliver to the Administrative Agent for the account
of the Fronting Lender interest on such Revolving Lender’s Rateable Portion from the date of payment by the Fronting Lender of such unreimbursed LC Payments until the date of delivery of such funds to the Fronting Lender by such Revolving
Lender at a rate per annum in accordance with the Administrative Agent’s usual banking practice for similar advances to financial institutions of like standing as such Lender but in no event greater than, as the case may be, the Prime Rate or
the Base Rate. Such payment shall only, however, be made by the Revolving Lenders in the event and to the extent the Fronting Lender has not been reimbursed in full by the Borrower for interest on the amount of such unreimbursed LC Payments.

  

	 	(e)	The Fronting Lender shall, forthwith upon its receipt of any reimbursement (in whole or in part) by the Borrower for any unreimbursed LC Payments in relation to which other Revolving Lenders have purchased a
participation interest pursuant to section 14.1(1)(d), or of any other amount from the Borrower or any other person in respect of such payment, transfer to each other Revolving Lender such other Revolving Lender’s Rateable Portion of such
reimbursement or other amount. In the event that any receipt by the Fronting Lender of any reimbursement or other amount is found to have been a transfer in fraud of creditors or a preferential payment under any applicable insolvency legislation or
is otherwise required to be returned, such Revolving Lender shall promptly return to the Fronting Lender any portion thereof previously transferred to it by the Fronting Lender, without interest to the extent that interest is not payable by the
Fronting Lender in connection therewith. 

  
 109 

	 	(2)	Sharing. If: 

  

	 	(a)	any Lender shall receive any payment or reduction (whether voluntary, involuntary, through the exercise of any right of set-off pursuant to section 12.3 or at law or equity, or
otherwise) of the Obligations owed to it under a Credit Facility (other than Increased Costs paid to it) in excess of its Rateable Portion of such payment or reduction; 

 

	 	(b)	after acceleration of the Obligations, any Lender shall receive any payment or reduction (whether voluntary, involuntary, through the exercise of any right of set-off pursuant to
section 12.3 or at law or equity, or otherwise) of a proportion of the Obligations owed to it (other than Increased Costs paid to it) in excess of the proportion received by any other Lender (with all determinations of proportions being made on the
basis of Obligations expressed as the Equivalent Amount of US Dollars); or 

  

	 	(c)	(without regard to outstanding Increased Costs) any Lender shall at the time of acceleration of the Obligations have outstanding Obligations which are less than its Rateable Portion of all outstanding Obligations;

 then such Lender shall forthwith purchase from the other Lenders such participations in the Accommodations made by such
other Lenders as shall be necessary to cause such purchasing Lender to share the excess payment or reduction, or be owed such outstanding Obligations, rateably with such other Lenders. 

In the case of paragraph (a) above, if all or any portion of such excess payment or reduction is thereafter recovered from such purchasing
Lender, such purchase from each other Lender shall be rescinded and each Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such other Lender’s rateable share
(according to the proportion that the amount such other Lender’s required repayment bears to the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the
total amount so recovered. 
 Any Lender purchasing a participation from another Lender pursuant to this section 14.1 may, to the
fullest extent permitted by Law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the
amount of such participation. 
  

	 	(3)	Records. The Principal Outstanding and/or the US$ Equivalent Principal Outstanding under a Credit Facility, the unpaid interest accrued thereon, the interest rate or rates applicable to any unpaid principal
amounts, the duration of such application, the date of acceptance or issue, Face Amount and maturity of all Bankers’ Acceptances and Letters of Credit and the Commitments shall at all times be ascertained from the records of the Administrative
Agent, which shall be conclusive absent demonstrated error. 

  

	14.2	Amendments, etc. 

  

	 	(1)	Amendments – General. Subject to section 14.2(2), no amendment or waiver of any provision of this agreement or of any other Credit Facility Document, nor any consent to any departure by the Borrower or any
affiliate herefrom or therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders (or by the Administrative Agent on their authorization), and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. 

  
 110 

	 	(2)	Amendments – Unanimous. No amendment, waiver or consent shall, unless in writing and signed by all the Lenders (or by the Administrative Agent on their authorization): 

 

	 	(a)	except as contemplated by Section 2.13, increase the amount or extend the expiry date of any Commitment or otherwise subject Lenders to an additional obligation; 

 

	 	(b)	reduce the principal amount of any Accommodation (including any amount owed to Lenders under section 5.7(1)) or reduce the rate of interest or any fee applicable to any Accommodation; 

 

	 	(c)	postpone the scheduled date of payment of the principal amount of any Accommodation (including any amount owed to Lenders under section 5.7(1)), or any interest thereon or any fees payable in respect thereof, or waive
or excuse any such payment; 

  

	 	(d)	waive any of the conditions specified in Article 6; 

  

	 	(e)	amend this section 14.2; 

  

	 	(f)	amend the definition of “Majority Lenders”; 

  

	 	(g)	amend the definition of “Rateable Portion” or otherwise change or waive any provision requiring pro rata treatment of the Lenders or relating to the sharing of payments by Lenders; 

 

	 	(h)	except as permitted by section 10.2(3), permit an assignment or transfer of any of the Borrower’s rights or obligations under any Credit Facility Document; 

 

	 	(i)	except as set forth in section 8.8(1), release (or agree, consent to or approve the release of) all or substantially all of the Security; or 

 

	 	(j)	amend the Intercreditor Agreement. 

  

	 	(3)	Amendments – Administrative Agent. No amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent (in addition to the Majority Lenders, if so required hereunder), affect the
rights or duties of the Administrative Agent under any Credit Facility Document. 

  

	 	(4)	Amendments – Fronting Lender. No amendment, waiver or consent shall, unless in writing and signed by the Fronting Lender (in addition to the Majority Lenders, if so required hereunder), affect the rights or
duties of the Fronting Lender under any Credit Facility Document. 

  

	 	(5)	Amendments – Swingline Lender. No amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender, affect the rights or duties of the Swingline Lender under any Credit Facility
Document. 

  

	 	(6)	Separate Credit Facilities. 

  
 111 

	 	(a)	No amendment, waiver or consent shall, unless approved by the Majority Lenders under a Credit Facility (or, if the circumstances contemplated by section 14.2(2) apply, by all of the Lenders under such Credit Facility),
affect the rights or obligations of the Lenders under such Credit Facility if such rights or obligations are affected in a manner which is different from the rights and obligations of the Lenders under the other Credit Facility. 

 

	 	(b)	An amendment, waiver or consent that affects only the rights or obligations of the Lenders under a particular Credit Facility, and does not affect the rights and obligations of the Lenders under the other Credit
Facility, need only be approved by the Majority Lenders under such Credit Facility (or, if the circumstances contemplated by section 14.2(2) apply, by all of the Lenders under such Credit Facility). 

 

	14.3	Notices, etc. 

  

	 	(1)	Notices. Any and all notices or other communications required or permitted pursuant to this agreement shall be in writing and (except as set forth in section 14.3(6) with respect to electronic delivery) shall be
personally delivered by courier or telecopied to the addressee at the address referred to below, in which case such notice or other communication shall conclusively be deemed to have been given to the addressee thereof on the day upon which it was
delivered or received by telecopy if delivered or received prior to the relevant time on such day (or on the next Business Day if received after the relevant time or if received on a day that is not a Business Day). For this purpose, the
“relevant time” shall be 10:00 am (local time) in the case of a Notice, and 3:00 pm (local time) in all other cases. Notices delivered through electronic communications to the extent provided in section 14.3(6) below, shall be effective as
provided in section 14.3(6). The addresses referred to above for the Borrower and the Administrative Agent are as follows, and in respect of the Lenders as set forth in schedule 1 annexed hereto: 

Borrower 
 MacDonald,
Dettwiler and Associates Ltd. 
 13800 Commerce Parkway 

Richmond, British Columbia V6V 2J3 

Attention: Treasurer 
 Telecopy
No.: (604) 278-1837 
 Copy to: 

Elizabeth Harrison, Q.C. 

Farris Vaughn Wills & Murphy 

PO Box 10026, Pacific Centre South 

#2600, 700 West Georgia Street 

Vancouver, British Columbia V7Y 1B3 

Telecopy No.: (604) 661-9349 

Administrative Agent 

Royal Bank of Canada 

  
 112 

 RBC Capital Markets 

Agency Services Group 
 20 King
Street West, 4th Floor 
 Toronto, Ontario M5H 1C4 

Attention: Manager, Agency 

Telecopy No. (416) 842-4023 

Copy to: 
 Royal Bank of Canada

 Suite 3900 Bankers Hall West 

888 – 3rd Street S.W. 

Calgary, Alberta T2P 5C5 

Attention: Tim VandeGriend 

Telecopy No.: (403) 292-3234 
  

	 	(2)	Change. Each party may change its address for service by written notice, given in the manner provided above, to the other parties and such change shall be effective upon the date the notice shall be deemed to be
received. 

  

	 	(3)	Deliveries. All deliveries of financial statements and other documents to be made by the Borrower to the Lenders hereunder shall, unless made by electronic delivery pursuant to section 14.3(6), be made by making
delivery of such financial statements and documents to the Administrative Agent (in sufficient copies for each Lender) to the address in section 14.3(1) or to such other address as the Administrative Agent may from time to time notify to the
Borrower. All such deliveries shall be effective only upon actual receipt. 

  

	 	(4)	Notice Irrevocable. Each Notice shall be irrevocable and binding on the Borrower. 

  

	 	(5)	Reliance. The Administrative Agent may act upon the basis of telephonic notice believed by it in good faith to be from the Borrower prior to receipt of a Notice. In the event of conflict between the
Administrative Agent’s record of the applicable terms of any Accommodation and such Notice, the Administrative Agent’s record shall prevail, absent demonstrated error. 

 

	 	(6)	Electronic Delivery. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender of Accommodations to be made if such Lender has notified the Administrative Agent that it is
incapable of receiving notices by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures
approved by it; provided that approval of such procedures may be limited to particular notices or communications. 

 Unless the
Administrative Agent otherwise prescribes: 
  

	 	(a)	notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other written acknowledgement); provided that if such notice or other communication is not sent during the normal business
hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient; and 

 

  
 113 

	 	(b)	notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described
in the foregoing section 14.3(6)(a) of notification that such notice or communication is available and identifying the website address therefor. 

  

	14.4	No Waiver; Remedies. 

 No failure on the part of the Administrative Agent or any of the Lenders to
exercise, and no delay in exercising, any right under any Credit Facility Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right under any Credit Facility Document preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein and therein provided are cumulative and not exclusive of any remedies provided by Law. 
  

	14.5	Expenses. 

 The Borrower shall pay to the Administrative Agent, on its own account and on behalf of the
Lenders, all reasonable costs and expenses (including all reasonable legal fees and disbursements on a solicitor and his own client basis) incurred: 
  

	 	(a)	by the Administrative Agent in connection with this agreement, the other Credit Facility Documents and the Credit Facilities, including: 

 

	 	(i)	the negotiation of the term sheet and the negotiation, preparation, printing, execution, delivery, syndication and interpretation, both prior and subsequent to the Closing Date, of this agreement and any other Credit
Facility Document (in this section 14.5, collectively, the “Documents”); 

  

	 	(ii)	the performance by the Administrative Agent of its obligations and duties under any Document; 

  

	 	(iii)	advice of counsel with respect to the administration of or other matters relating to the Credit Facilities, any Document or any transaction contemplated thereunder; 

 

	 	(iv)	the enforcement of any Document or the enforcement or preservation of rights under and the refinancing, renegotiation or restructuring (including negotiation of any so-called
“workout” or similar transaction) of the Credit Facility under this agreement or any other Document or the bringing of any action, suit or proceeding with respect to the enforcement of any Document or any such right or seeking any remedy
which may be available to the Administrative Agent or the Lenders at law or in equity; and 

  

	 	(v)	any amendments, waivers or consents (including extensions) requested by or in respect of the Borrower or any affiliate pursuant to the provisions hereof or any other Document; 

 

	 	(b)	by each of the Lenders in connection with: 

  
 114 

	 	(i)	the enforcement of any Document or the enforcement or preservation of rights under and the refinancing, renegotiation or restructuring (including negotiation of any so-called
“workout” or similar transaction) of the Credit Facilities under this agreement or any other Document or the bringing of any action, suit or proceeding with respect to the enforcement of any Document or any such right or seeking any remedy
which may be available to the Lenders at law or in equity; and 

  

	 	(ii)	any amendments, waivers or consents (including extensions) requested by or in respect of the Borrower or any affiliate pursuant to the provisions hereof or any other Document. 

In addition, the Borrower shall pay any present or future stamp, documentary or other like duties and taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made under any Credit Facility Document or from the execution, delivery or registration of, or otherwise in respect to, any Credit Facility Document and shall indemnify and save the Administrative Agent
and the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such duties or taxes. The obligations of the Borrower under this section 14.5 shall survive the payment and
performance of the Obligations. 
  

	14.6	Judgment Currency. 

  

	 	(1)	Exchange Rate. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder to the Administrative Agent or a Lender in one currency (in this section 14.6, the
“Original Currency”) into another currency (in this section 14.6, the “Judgment Currency”), the parties agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures the Administrative Agent or Lender could purchase the Original Currency with the Judgment Currency on the Business Day preceding that on which final judgment is paid or satisfied. 

 

	 	(2)	Obligation. The obligations of the Borrower in respect of any sum due in the Original Currency from it to the Administrative Agent or a Lender under any Credit Facility Document shall, notwithstanding any
judgment in any Judgment Currency, be discharged only to the extent that, on the Business Day following receipt by the Administrative Agent or Lender of any sum adjudged to be so due in such Judgment Currency, the Administrative Agent or Lender may
in accordance with normal banking procedures purchase the Original Currency with such Judgment Currency. If the amount of the Original Currency so purchased is less than the sum originally due to the Administrative Agent or Lender in the Original
Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or Lender against such loss and, if the amount of the Original Currency so purchased exceeds the sum originally due
to the Administrative Agent or Lender in the Original Currency, the Administrative Agent or Lender agrees to remit such excess to the Borrower. 

  

	14.7	Governing Law. 

  

	 	(1)	Governing Law. This agreement shall be governed by and construed in accordance with the Laws of the Province of British Columbia and the Laws of Canada applicable therein. 

 

	 	(2)	 Submission to Jurisdiction. Each party hereby irrevocably submits to the jurisdiction of the courts of
British Columbia in any action or proceeding arising out of or relating to this agreement and hereby irrevocably agrees that all claims in respect of any such action or proceeding may be heard and determined in such courts. Each party hereby
irrevocably waives, to the fullest extent it may effectively do so, the defence of an inconvenient forum to the maintenance of such action or proceeding. When a name and address is so

  
 115 

	 	
indicated opposite a party on the signature pages hereof, such party hereby irrevocably appoints the person of such name (in this section 14.7(2), its “Process Agent”) as its
agent to receive on behalf of such party and its property service of copies of the summons and complaint and any other process which may be served in any such action or proceeding. Such service may be made by delivering a copy of such process to the
party in care of its Process Agent at such Process Agent’s address so indicated, and such party hereby irrevocably authorizes and directs its Process Agent to accept such service on its behalf. As an alternative method of service, each party
also irrevocably consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address referred to in section 14.3 or at such other address as it may direct in accordance
with section 14.3. Each party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. 

 

	 	(3)	Non-Exclusive. Nothing in this section 14.7 shall affect the right of any party to serve legal process in any other manner permitted by Law or affect the right of a party
to bring any action or proceeding against another party or its property in the courts of other jurisdictions. 

  

	 	(4)	Trial by Jury. Each of the parties hereto, to the fullest extent permitted by Law, hereby waives its rights to a trial by jury. 

 

	14.8	Successors and Assigns. 

  

	 	(1)	Effectiveness. This agreement shall become effective when it shall have been executed by the Borrower, the Administrative Agent and each Lender and thereafter shall be binding upon and enure to the benefit of
each such person, its successors and permitted assigns. 

  

	 	(2)	Borrower not to Assign. The Borrower shall not have the right to assign its rights or obligations hereunder or any interest herein (other than in compliance with section 10.2(3), without the prior consent of all
the Lenders, which consent may be arbitrarily withheld. 

  

	 	(3)	Participations. A Lender may grant participations in all or any part of a Credit Facility to one or more persons (each a “Participant”), and each Participant shall be entitled to the benefits of
sections 11.4, 11.5 and 11.6, inclusive, to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to section 14.8(4); provided that a Participant shall not be entitled to receive any greater payment under
section 11.4 or 11.6 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless: 

  

	 	(a)	the sale of the participation to such Participant is made with the Borrower’s prior written consent; or 

  

	 	(b)	such entitlement to a greater payment results from a Change in Law occurring after the date such Participant became a participant. 

For greater certainty, the Administrative Agent shall not be party to, receive notice of, consent to or otherwise be involved in any manner
with participations, and shall not maintain any record of participations. 
  

	 	(4)	Assignments. A Lender may assign all or any part (in a minimum amount of the lesser of (i) US$5 million, and (ii) such Lender’s remaining Commitments under the relevant Credit Facility) of its
interest in either or both Credit Facilities to one or more persons (each an “Assignee”) and, to the extent of any such assignment (unless otherwise stated therein), the assignee shall have the same rights and benefits hereunder and
under the other Credit Facility Documents as it would have if it were a Lender hereunder; provided that: 

  
 116 

	 	(a)	unless: 

  

	 	(i)	an Event of Default shall have occurred and be continuing; or 

  

	 	(ii)	such assignment shall be to an affiliate of the assignor Lender, another Lender or an affiliate of another Lender; 

the consent of the Borrower to an assignment under this section 14.8(4) shall be required (which consent shall not be unreasonably withheld,
it being acknowledged that the Borrower may reasonably object to an assignment if the result thereof would be to subject the Borrower to an obligation to pay additional Increased Costs), and the Borrower shall have the right to request a period of
30 days within which to seek an alternate Assignee; 
  

	 	(b)	the consent of the Administrative Agent, the Swingline Lender and the Fronting Lender to an assignment under this section 14.8(4) shall be required (which consent shall not be unreasonably withheld); and

  

	 	(c)	no Lender shall have an aggregate Commitment under both Credit Facilities below US$10 million as a result of an assignment by or to such Lender. 

 

	 	(5)	Financial Information. A Lender may deliver a copy of any financial statement or any other information relating to the business, assets or condition (financial or otherwise) of the Borrower or its affiliates
which may be furnished to it under this agreement or otherwise to any Participant or Assignee or any prospective Participant or Assignee to the extent reasonably required by such Participant or Assignee in connection with its interest or the
proposed acquisition of an interest in a Credit Facility, subject to compliance by such Lender with section 14.10. 

  

	 	(6)	Lender to Act. Prior to the occurrence of a Default or an Event of Default, the relevant Lender shall act on behalf of all of its Participants in all dealings with the Borrower in respect of each Credit Facility.

  

	 	(7)	Assumption. In order to effect an assignment contemplated by section 14.8(4), the relevant Lender (i) shall deliver to the Borrower (at such Lender’s cost but exclusive of the fees of the
Borrower’s counsel) an agreement by which the Assignee assumes the obligations and agrees to be bound by all the terms and conditions of this agreement, all as if such Assignee had been an original party hereto, and (ii) shall pay an
administration fee of US$3,500 to the Administrative Agent. Upon any such assignment and such assumption of the obligations of such Lender by such Assignee, such Lender and the Borrower shall be mutually released from their respective obligations
hereunder to the extent of such assignment and assumption and shall thenceforth have no liability or obligations to each other to such extent, except in respect of actions taken or matters which have arisen prior to such assignment.

  

	14.9	Conflict. 

 In the event of a conflict between the provisions of this agreement and the provisions of any
other Credit Facility Document, the provisions of this agreement shall prevail. 

  
 117 

	14.10 	Confidentiality. 

 Information provided by the Borrower hereunder will not be disclosed by the
Administrative Agent or any Lender or used by the Administrative Agent or such Lender for any purpose other than evaluation, monitoring and review pursuant to this agreement; provided that such information may be disclosed: 

 

	 	(a)	as contemplated by section 14.8(5) if such Participant or Assignee is advised such information is confidential, and the Lender advises the Borrower of the disclosure; 

 

	 	(b)	to any director, officer or employee of the Administrative Agent or Lender or its affiliates (for purposes related to this agreement); provided that same is treated in the same manner as other confidential information
held by the Administrative Agent or Lender; 

  

	 	(c)	to legal counsel, accountants and other consultants and professional advisors determined by the Administrative Agent or Lender to require such information for the purpose of assisting in or advising upon such
evaluation, monitoring and review, if such persons are advised that such information is confidential to the Borrower; 

  

	 	(d)	pursuant to applicable Law (including to an Official Body having regulatory authority over the Administrative Agent or Lender); 

  

	 	(e)	to the extent that such information is public; 

  

	 	(f)	to the extent that such information was previously known to the Administrative Agent or Lender through means other than the Borrower, or was acquired from a third party not known to the Administrative Agent or Lender to
be under a duty of confidentiality to the Borrower or its relevant affiliate; or 

  

	 	(g)	with the written consent of the Borrower. 

 The Finance Parties acknowledge that the Borrower and/or its
subsidiaries perform, or may from time to time perform, classified contracts funded by or for the benefit of the United States Federal Government and the Borrower and/or its subsidiaries possess or may possess information and items controlled under
United States export control Laws and regulations and other national security regulations. The Finance Parties agree that neither the Borrower nor any subsidiary will be obliged to release, disclose or otherwise make available to any Finance Party
(or any other person) any classified information or other information or materials prohibited from release under the terms of a contract with the United States government or to release, disclose or otherwise make available to any Finance Party (or
any other person) any export-controlled information or items except upon proper authorization in accordance with United States laws and regulations, provided however that the parties acknowledge that the Finance Parties may, consistent with the
Borrower’s and/or its subsidiaries’ obligations under the Foreign Ownership, Control or Influence Requirements, receive information reflecting amounts owing, accrued and paid or other financial information relating to the Borrower and its
subsidiaries that may relate to classified contracts without affecting or accessing classified information or export-controlled information. The Finance Parties agree that, in connection with any exercise of a right or remedy under the Credit
Facility Documents, the United States Federal Government may remove classified information, export-controlled information, or government-issued materials prior to the implementation of any such remedial action implicating such classified
information, export-controlled information, or government-issued materials, or that the parties may take other steps to acquire authorization, licenses or other arrangements to receive such information in accordance with United States laws and
regulations. 

  
 118 

	14.11 	FOCI 

 Upon notice from the Borrower, the Finance Parties shall take such steps in accordance with this
agreement as may reasonably be required to enable the Borrower or any subsidiary thereof to comply with the Foreign Ownership, Control or Influence Requirements; provided, however, that nothing in this section 14.11 shall be construed to require any
Finance Party to enter into an agreement or accept any limitation on its rights to receive and review financial statements, or similar financial information concerning the Borrower or any subsidiary thereof, or the Borrower’s compliance with
the provisions of this agreement except where the Finance Party’s access would violate the Foreign Ownership, Control or Influence Requirements.Nothing in this agreement shall be deemed to require the Borrower or any subsidiary to violate any
obligations under the Foreign Ownership, Control or Influence Requirements. 
  

	14.12 	Severability. 

 The provisions of this agreement are intended to be severable. If any provision of
this agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the
validity or enforceability thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction. 
  

	14.13 	Prior Understandings. 

 This agreement supersedes all prior understandings and agreements, whether
written or oral, among the parties relating to the transactions provided for herein. 
  

	14.14 	Time of Essence. 

 Time shall be of the essence hereof. 

 

	14.15 	Counterparts. 

 This agreement may be executed in counterparts, each of which shall be deemed an original
and all of which, taken together, shall constitute one and the same instrument, and may be delivered by a party by facsimile or similar means of recorded communication. 
  

	14.16 	Acknowledgement and Consent to Bail-In of EEA Financial Institutions. 

Notwithstanding anything to the contrary in any Credit Facility Document or in any other agreement, arrangement or understanding among any such parties, each
party hereto acknowledges that any liability of any EEA Financial Institution arising under any Credit Facility Document, to the extent such liability is unsecured, may be subject to the writedown and conversion powers of an EEA Resolution Authority
and agrees and consents to, and acknowledges and agrees to be bound by: 
  

	 	(a)	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

  

	 	(b)	the effects of any Bail-in Action on any such liability, including, if applicable: 

  

	 	(i)	a reduction in full or in part or cancellation of any such liability; 

  

	 	(ii)	a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Facility Document; or 

  
 119 

	 	(iii)	the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority. 

(continued on following page) 
 IN
WITNESS WHEREOF the parties have caused this agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 

BORROWER: 
  

			
	 MACDONALD, DETTWILER AND

ASSOCIATES LTD.

		
	Per:	 	 /s/ Anil Wirasekara 

		 	Name: Anil Wirasekara 
		 	Title: Chief Financial Officer
		
	Per:	 	 /s/ Gordon Thiessen

		 	Name: Gordon Thiessen
		 	Title: Corporate Secretary

 ADMINISTRATIVE AGENT: 

 

			
	 ROYAL BANK OF CANADA

		
	 Per:
	 	 /s/ Susan Khoker

		 	 Name: Susan Khoker

		 	 Title: Manager, Agency

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

  
 120 

 LENDERS: 
  

			
	 ROYAL BANK OF CANADA

		
	 Per:
	 	 /s/ Timothy J. VandeGriend

		 	 Name: Timothy J. VandeGriend

		 	 Title: Authorized Signatory

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

	
	 BANK OF MONTREAL

		
	 Per:
	 	 /s/ Jerry Kaye

		 	 Name: Jerry Kaye

		 	 Title: Director

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

	
	 THE TORONTO-DOMINION BANK

		
	 Per:
	 	 /s/ Frazer Scott

		 	 Name: Frazer Scott

		 	 Title: Managing Director

		
	 Per:
	 	 /s/ Ben Montgomery

		 	 Name: Ben Montgomery

		 	 Title: Vice President and Director

  
 121 

 
			
	 BANK OF AMERICA, N.A., CANADA BRANCH

		
	 Per:
	 	 /s/ Medina Sales de Andrade

		 	 Name: Medina Sales de Andrade

		 	 Title: Vice President

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

	
	 BANK OF NOVA SCOTIA

		
	 Per:
	 	 /s/ Kurt R. Foellmer

		 	 Name: Kurt R. Foellmer

		 	 Title: Director

		
	 Per:
	 	 /s/ Alexander Mihailovich

		 	 Name: Alexander Mihailovich

		 	 Title: Associate Director

	
	CANADIAN IMPERIAL BANK OF COMMERCE
		
	 Per:
	 	 /s/ William J. Chrumka

		 	 Name: William J. Chrumka

		 	 Title: Executive Director

		
	 Per:
	 	 /s/ Steve Nishimura

		 	 Name: Steve Nishimura

		 	 Title: Managing Director

  
 122 

 
			
	 NATIONAL BANK OF CANADA

		
	 Per:
	 	 /s/ Luc Bernier

		 	 Name: Luc Bernier

		 	 Title: Directeur - Director

		
	 Per:
	 	 /s/ Andre Marenger

		 	 Name: Andre Marenger

		 	 Title: Director

  
 123 

 
			
	 HSBC BANK CANADA

		
	 Per:
	 	 /s/ Casey Coates

		 	 Name: Casey Coates

		 	 Title: Authorized Signatory

		
	 Per:
	 	 /s/ Gabriella King

		 	 Name: Gabriella King

		 	 Title: Authorized Signatory

	
	WELLS FARGO BANK, N.A., CANADIAN BRANCH
		
	 Per:
	 	 /s/ Rowena Gill

		 	 Name: Rowena Gill

		 	 Title: Vice President Relationship Manager

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

	
	BANK OF TOKYO-MITSUBISHI UFJ (CANADA)
		
	 Per:
	 	 /s/ Davis J. Stewart

		 	 Name: Davis J. Stewart

		 	 Title: Executive Vice President and General Manager

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

  
 124 

 
			
	UNITED OVERSEAS BANK LIMITED, VANCOUVER BRANCH
		
	 Per:
	 	 /s/ K. Jin Koh

		 	 Name: K. Jin Koh

		 	 Title: General Manager

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

  
 125 

 
			
	 MIZUHO CORPORATE BANK, LTD.

		
	 Per:
	 	 /s/ Rob MacKinnon

		 	 Name: Rob MacKinnon

		 	 Title: Senior Vice President Canada Branch

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

  
 126 

 
			
	SUMITOMO MITSUI BANKING CORPORATION OF CANADA
		
	 Per:
	 	 /s/ E.R. Langley

		 	 Name: E.R. Langley

		 	 Title: Senior Vice President

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

  
 127 

 SCHEDULE 1 

LENDERS AND COMMITMENTS 
  

					
	 Institution
	  	Commitment under
Revolving Facility
(US$MM)	 
	 ROYAL BANK OF CANADA
	  	 	90.00	 
	 BANK OF MONTREAL
	  	 	75.00	 
	 THE TORONTO-DOMINION BANK
	  	 	75.00	 
	 BANK OF AMERICA, N.A., CANADA BRANCH
	  	 	65.00	 
	 THE BANK OF NOVA SCOTIA
	  	 	65.00	 
	 CANADIAN IMPERIAL BANK OF COMMERCE
	  	 	65.00	 
	 NATIONAL BANK OF CANADA
	  	 	65.00	 
	 HSBC BANK CANADA
	  	 	45.00	 
	 WELLS FARGO BANK, N.A., CANADIAN BRANCH
	  	 	45.00	 
	 BANK OF TOKYO-MITSUBISHI UFJ (CANADA)
	  	 	32.50	 
	 UNITED OVERSEAS BANK LIMITED, VANCOUVER BRANCH
	  	 	32.50	 
	 SUMITOMO MITSUI BANKING CORPORATION OF CANADA
	  	 	25.00	 
	 MIZUHO BANK, LTD.
	  	 	20.00	 
		  	  
	  
	 
	 Total
	  	US$	700.00	 
		  	  
	  
	 

 Addresses 

– see following page – 

  
 128 

					
	 	  	Legal Name of Lender	  	Address (Credit Contact)
	1	  	Wells Fargo Bank, N.A., Canadian Branch	  	40 King Street West, Suite 3200, Toronto, ON M5H 3Y2
			
	2	  	The Toronto-Dominion Bank	  	Suite 1700, 700 West Georgia Street, Vancouver, BC V7Y 1B6
			
	3	  	HSBC Bank Canada	  	70 York Street, 4th Floor, Toronto, ON M5J 1S9
			
	4	  	Bank of Tokyo-Mitsubishi UFJ (Canada)	  	950 - 666 Burrard Street, Vancouver, BC V6C 3L1
			
	5	  	Mizuho Corporate Bank, Ltd.	  	Suite 305, South Tower, 5811 Cooney Road, Richmond, BC V6X 3M1
			
	6	  	National Bank of Canada	  	5650 Iberville, Suite 603, Montreal, QC H2G 2B3
			
	7	  	The Bank of Nova Scotia	  	720 King Street West, Toronto, ON, M5V 2T3
			
	8	  	Bank of Montreal	  	Suite 1700, 885 West Georgia Street, Vancouver, BC V6C 3E8
			
	9	  	Canadian Imperial Bank of Commerce	  	595 Bay Street, 5th Floor, Toronto, ON
			
	10	  	Bank of America, N.A., Canada Branch	  	181 Bay Street, 4th Floor, Toronto, ON, M5J 2V8
			
	11	  	Sumitomo Mitsui Banking Corporation of Canada	  	Ernest & Young Tower, Toronto Dominion Centre, Suite 1400, P.O. Box 172, 222 Bay Street, Toronto, ON M5K 1H6
			
	12	  	United Overseas Bank Limited, Vancouver Branch	  	1680-650 Georgia Street West, Vancouver, British Columbia V6B 4N9
			
	13	  	Royal Bank of Canada	  	Suite 3900, 888 - 3rd Street SW, Calgary, AB T2P 5C5

  
 129 

 SCHEDULE 2 

ACCOMMODATION REQUEST 

[Date] 
 Royal Bank of Canada 

RBC Capital Markets 
 Agency Services Group 

20 King Street West, 4th Floor 
 Toronto, Ontario M5H 1C4 

Attention: Manager, Agency 
 Telecopy No. (416) 842-4023 
 Dear Sirs: 

The undersigned refers to the Credit Agreement dated for reference November 2, 2012 (the “Credit Agreement”, the terms defined
therein being used herein as so defined) among MacDonald, Dettwiler and Associates Ltd. as Borrower, Royal Bank of Canada as Administrative Agent, and the Lenders signatory thereto as lenders, and hereby gives you notice pursuant to the Credit
Agreement that the undersigned requests an Accommodation under the                      2
Facility as follows: 
 A. If an Advance is requested: 
  

	 	(c)	The date of such Advance, being a Business Day, is                     . 

 

	 	(d)	The type of Advance comprising such Advance is                     
3 

  

	 	(e)	The aggregate amount of such Advance is $                    . 4

  

	 	(f)	The initial Interest Period applicable to such Advance is                     . 5 

 B. If a Drawing is requested: 

 

	 	(g)	The date of such Drawing, being a Business Day, is                     . 

 

	 	(h)	The aggregate Face Amount of Drafts to be accepted is $                    . 

 

	 	(i)	The term to maturity for such Drafts is              days. 

C.    If a Conversion of a Prime Rate Advance or a Base Rate Advance is requested: 

 

	 	(j)	Such Advance is currently outstanding as                     . 6

  

	 	(k)	The principal amount of $                     of such Advance is to be changed into
                     7 in the principal amount of
$                    . 

 

	2 	Specify Revolving or Term. 

	3 	Specify LIBOR Advance, CDOR Rate Advance, Prime Rate Advance or Base Rate Advance. 

	4 	Specify in US Dollars or Canadian Dollars. 

	5 	Specify in the case of a CDOR Rate Advance or a LIBOR Advance the elected period in months. Insert “N/A” for Prime Rate Advances or Base Rate Advances.

	6 	Insert Prime Rate Advance or Base Rate Advance. 

	7 	See 2 above. 

  
 130 

	 	(l)	The principal amount of $                     of such Advance is to be changed into
                     8 in the principal amount of
$                    . 

  

	 	(m)	$                     of the principal amount of such Advance is to be repaid from the proceeds of the Drawing
described in B. 

  

	 	(n)	The date of the Conversion is             . 

 D.
If a Conversion or Rollover of a CDOR Rate Advance or a US LIBOR Advance is required: 
  

	 	(o)	Such Advance is in a principal amount of $                     with an Interest Period expiring
                    . 

  

	 	(p)	The principal amount of $                     of such Advance is to be changed into
                     9 in the principal amount of
$                    . 

  

	 	(q)	The principal amount of $                     of such Advance is to be changed into
                     10 in the principal amount of
$                    . 

  

	 	(r)	The principal amount of $                     of such Advance is to continue as such for a further Interest Period of
                     months expiring
                    . 

  

	 	(s)	$             of the principal amount of such Advance is to be repaid from the proceeds of the Drawing described in B. 

 

	 	(t)	The date of the Conversion or Rollover is                     . 

E. If a Conversion or Rollover of a Drawing is required: 
  

	 	(u)	Such Drawing is in a Face Amount of $                     with a maturity of
                . 

  

	 	(v)	$                     of the Face Amount of such Drawing is to be paid from the proceeds of the Advance described in A.

  

	 	(w)	$                     of the Face Amount of such Drawing is to be paid from the proceeds of the Drawing described in B.

  

	 	(x)	The date of the Conversion or Rollover is                     . 

MACDONALD, DETTWILER AND ASSOCIATES LTD. 

Per:                      
                           

            Authorized Signatory 

 

	8 	See 2 above. 

	9 	See 5 above. 

	10 	See 5 above. 

  
 131 

 SCHEDULE 3 

PERMITTED LIENS IN RESPECT OF SS/L AND LAND LLC 

Any “Permitted Lien” as defined in the Purchase Agreement, excluding all Liens granted in connection with the SS/L Credit Agreement. 

  
 132 

 SCHEDULE 4 

MACDONALD, DETTWILER AND ASSOCIATES LTD. 

SUBSIDIARIES 
 (i) and (ii): Subsidiaries
of the Borrower and legal and beneficial ownership (effective as of May 1, 2015) 
  

					
	 Company Name
	  	 Jurisdiction of Organization
	  	 Percentage of Shares/Units Directly Held and Owner of said
Shares/Units

	0847018 B.C. Ltd.	  	British Columbia	  	100% owned by MDA Ltd.
			
	6454879 Canada Inc.	  	Canada	  	100% owned by MDA Systems Holdings Ltd.
			
	6457258 Canada Ltd.	  	Canada	  	100% owned by MDA Systems Holdings Ltd.
			
	7701845 Canada Inc.	  	Canada	  	100 % owned by MDA Systems Holdings
			
	Cascade Data Services Inc.	  	Canada	  	100% owned by MDA Systems Holdings
			
	Dynacs Engineering Company (India) Ltd.	  	Bangalore, India	  	 95% owned by MDA Systems Inc.
 6,000 shares held
by 6 other Can. Co.’s

			
	Dynacs Military & Defense, Inc.	  	Delaware, USA	  	100% owned by MDA Systems Inc.
			
	Dynacs Technical Services, Inc.	  	Florida, USA	  	100% owned by DMDI
			
	Earth Observation Sciences Limited	  	England and Wales, UK	  	100% owned by MDA Ltd. (Parent)
			
	Iotek Incorporated	  	Nova Scotia	  	100% owned by MDA Ltd. (Parent)
			
	Limited Liability Company MDA Information Systems	  	Russia	  	 99.9% owned by MDA GmbH (Germany) remaining 0.01% to be held eventually by 7701845 Canada Inc.

Currently held by CMS (Russian MacDonald, Dettwiler Corporate Counsel)

  
 133 

					
	 Company Name
	  	 Jurisdiction of Organization
	  	 Percentage of Shares/Units Directly Held and Owner of said
Shares/Units

	MacDonald, Dettwiler and Associates Corporation	  	Canada	  	100% owned by MDA Systems Holdings
			
	MacDonald, Dettwiler and Associates GmbH	  	Germany	  	100% owned by MDA Ltd. (Parent)
			
	MacDonald, Dettwiler and Associates Inc.	  	Ontario	  	100% owned by MDA Systems Holdings
			
	MacDonald, Dettwiler Technology Services Limited Liability	  	Hungary	  	100% owned by MDA Financial Services Ltd.
			
	MacDonald Dettwiler (Malaysia) SDN.BHD.	  	Malaysia	  	 51 %* owned by MDA Ltd.
 (* 10% Legally owned
and 41% Beneficially owned).

			
	MacDonald Dettwiler Systems Ltd.	  	Canada	  	100% owned by MDA Inc. (Brampton)
			
	MacDonald, Dettwiler US Holdings General Partnership	  	British Columbia	  	99.9999065 % interest held by MDA Ltd. remaining 0.0000935% held by MDA GP Holdings Ltd.
			
	MDA Communications Holdings, Inc.	  	Delaware	  	100% owned by MDA Ltd. (Parent)
			
	MDA Electronics Ltd. (INACTIVE – Shelf Company)	  	Canada	  	100% owned by MDA Ltd. (Parent)
			
	MDA Information Systems LLC (formerly: 201201 Delaware LLC)	  	Delaware	  	100% owned by MDA Information Holdings, Inc.
			
	 MDA Information
 Holdings, Inc.
	  	Delaware	  	100% owned by MDA US Systems Holdings, Inc. (US Holdco)
			
	MDA Geospatial Services Corp.	  	Washington, USA	  	100% owned by MDA US Systems Holdings, Inc. (US Systems Holdco.)

  
 134 

					
	 Company Name
	  	 Jurisdiction of Organization
	  	 Percentage of Shares/Units Directly Held and Owner of said
Shares/Units

	MDA Geospatial Services Inc.	  	Canada	  	100% owned by MDA Ltd. (Parent)
			
	MDA GP Holdings Ltd.	  	Canada	  	100% owned by MDA Ltd. (Parent)
			
	MDA Insurance Services Inc.	  	Barbados	  	100% owned by MDA Ltd. (Parent)
			
	MDA Financial Services Inc.	  	Barbados	  	100% owned by MDA Ltd. (Parent)
			
	MDA Products Holdings Ltd.	  	Canada	  	100% owned by MDA Ltd. (Parent)
			
	MDA Products Ltd.	  	Canada	  	100% owned by MDA Products Holdings Ltd.
			
	MDA Real Property Holdings, Inc.	  	Delaware	  	100% owned by MDA Ltd. (Parent)
			
	MDA Space and Robotics Limited	  	England and Wales, UK	  	100% owned by MDA Ltd. (Parent)
			
	 MDA Space Holdings Limited
 (Isle of Man Hold
Co.)
	  	Isle of Man	  	100% owned by MDA Systems Holdings Ltd.
			
	MDA Space Infrastructure Services Corp.	  	Isle of Man	  	100% owned by MDA Space Holdings Limited
			
	MDA Systems Holdings Ltd.	  	Canada	  	100% owned by MDA
			
	MDA US Systems LLC	  	Delaware	  	100% owned by MDA Information Holdings, Inc.
			
	MDA Systems Inc.	  	Delaware	  	100% owned by MDA US Systems Holdings, Inc. (US Holdco.)
			
	MDA Systems Ltd.	  	Canada	  	100% owned by MDA Systems Holdings
			
	MD Information Service (Luxembourg) S.A.R.L.	  	Luxembourg	  	100 % owned by MDA Ltd.

  
 135 

					
	 Company Name
	  	 Jurisdiction of Organization
	  	 Percentage of Shares/Units Directly Held and Owner of said
Shares/Units

	Space Systems/Loral Land, LLC	  	Delaware	  	Following the Acquisition, will be 100% owned by MDA Communications Holdings, Inc.
			
	 Space Systems/Loral,
 LLC
	  	Delaware	  	 Following the Acquisition, will be 100% owned by MDA Communications

Holdings, Inc.

			
	Triathlon Ltd.	  	Canada	  	100% owned by MDA Systems Holdings

 (iii) Any person (other than an MDA Party or MDA Pledgor) having any agreement, option, right or privilege, whether by Law, pre-emptive or contractual, capable of becoming an agreement or option for the purchase of securities in the capital of any Designated Subsidiary: 

Nil. 

  
 136 

 SCHEDULE 5 

APPLICABLE MARGINS11 

 

									
	 Level
	  	 Consolidated

Debt/ EBITDA

Ratio
	  	 BA Stamping Fee,

CDOR Rate and US
LIBOR Margins and

L/C Fees
	  	 Prime and USBR

Loan Margin
	  	 Standby Fees

	I	  	< 1.5	  	120	  	20	  	24
	II	  	> 1.5 < 2.0	  	145	  	45	  	29
	III	  	> 2.0 < 2.5	  	170	  	70	  	34
	IV	  	> 2.5 <3.0	  	200	  	100	  	40
	V	  	>3.0 <3.5	  	225	  	125	  	45
	VI	  	>3.5	  	300	  	200	  	60

 The effective date of any change in the Applicable Margins will be the first day following (1) the date of receipt by the
Administrative Agent of a compliance certificate in accordance with section 10.1(8)(c) of the Credit Agreement evidencing a change in the ratio of Consolidated Debt to EBITDA which results in a change in the above levels or (2) the effective
date of any amendment to the Applicable Margins, as applicable; provided that (a) any increase or decrease in the stamping fees on any Bankers’ Acceptances which are outstanding on the effective date of such a change will not apply until
the next Rollover of such Bankers’ Acceptances and (b) if the Borrower fails to deliver any compliance certificate when due in accordance with section 10.1(8)(c) of the Credit Agreement, then the Applicable Margins shall be based upon
Level VI from such due date until the date of delivery of such compliance certificate. 
  

 

	11 	All expressed as basis points per annum. 

  
 137 

 SCHEDULE 6 

REDUCTION REQUEST 
 Royal Bank of Canada

 RBC Capital Markets 
 Agency Services Group 

20 King Street West, 4th Floor 
 Toronto, Ontario M5H 1C4 

Attention: Manager, Agency 
 Telecopy No. (416) 842-4023 
 Dear Sirs: 

The undersigned refers to the third amended and restated credit agreement dated for reference November 2, 2012 (the “Credit
Agreement”, the terms defined therein being used herein as so defined) among MacDonald, Dettwiler and Associates Ltd. as Borrower, Royal Bank of Canada as Administrative Agent, and the Lenders signatory thereto as lenders, and hereby
requests pursuant to the Credit Agreement that the aggregate Commitments under the                  Facility be reduced on a permanent basis to
US$                , with effect as at                     . 

 

			
	MACDONALD, DETTWILER AND ASSOCIATES LTD.
		
	Per:	 	  

		 	Authorized Signatory

  
 138 

 SCHEDULE 7 

EXISTING ACCOMMODATIONS 
  

																							
	 ACBS
Fac Id
	 	ACBS
Loan Nr	 	Account	 	 Applicant
	 	 Beneficiary
	 	Issue Date	 	 	Maturity Date	 	 	 Cur
	 	Amount	 
	 355074
	 	1136644	 	00000000341508	 	 TRIATHLON LTD.
	 	 GHQ UAE ARMED FORCES,
	 	 	10/28/2005	 	 	 	10/31/2013	 	 	AED	 	 	275,480.00	 
	 355074
	 	1136657	 	00000000341509	 	 TRIATHLON LTD.
	 	 GHQ UAE ARMED FORCES,
	 	 	10/28/2005	 	 	 	05/31/2013	 	 	AED	 	 	137,740.00	 
	 355074
	 	1136695	 	00000000418230	 	 MDA SYSTEMS LTD.
	 	 PROCUREMENT CENTER
	 	 	11/07/2011	 	 	 	05/01/2013	 	 	USD	 	 	27,750.00	 
	 355074
	 	1136707	 	00000000422736	 	 MDA GEOSPATIAL SERVICES INC
	 	 PEMEX EXPLORACION Y PRODUCCION
	 	 	04/11/2012	 	 	 	04/16/2013	 	 	USD	 	 	89,722.00	 
	 355074
	 	1137370	 	00000000417047	 	 MDA GEOSPATIAL SERVICES INC
	 	 MALAYSIAN REMOTE SENSING AGENCY
	 	 	09/13/2011	 	 	 	05/14/2013	 	 	CAD	 	 	3,375.00	 
	 355074
	 	1191624	 	00000010000424	 	 MACDONALD, DETTWILER AND ASSOCIATES
	 	 ISRAEL AEROSPACE INDUSTRIES LTD.
	 	 	09/07/2012	 	 	 	12/14/2012	 	 	USD	 	 	3,500,000.00	 

 Note: each of the foregoing is a non-financial guarantee 

  
 139 

 SCHEDULE 8 

REQUIRED APPROVALS, ETC. 
  

	•	 	approval under the Amended and Restated Note Agreement of even date herewith in respect of the Prudential Notes. 

  

	•	 	any approvals required in accordance with the Foreign Ownership, Control or Influence Requirements or pursuant to a Proxy Agreement or other foreign ownership control or influence mitigation or negation arrangement to
the granting of any Credit Facility Documents by any MDA Party or MDA Pledgor. 

  
 140 

 SCHEDULE 9 

DESIGNATED SUBSIDIARIES 
  

	•	 	MDA Communications Holdings, Inc. (Delaware) 

  

	•	 	Space Systems/Loral Land, LLC (Delaware) 

  

	•	 	Space Systems/Loral, LLC (Delaware) 

  

	•	 	MDA Information Systems, LLC (Delaware) 

  

	•	 	MDA Geospatial Services Inc. (Canada) 

  

	•	 	MDA Systems Ltd. (Canada) 

  

	•	 	MacDonald, Dettwiler and Associates Corporation (Canada) 

  

	•	 	MacDonald, Dettwiler and Associates Inc. (Ontario) 

  

	•	 	MD Information Service (Luxembourg) S.à r.l. (Luxembourg) 

  
 141

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