Document:

EX-10.4

EXHIBIT 10.4

THE MEDICINES COMPANY

Form of Restricted Stock Agreement

Granted Under 2009 Equity Inducement Plan

     THIS AGREEMENT made as of this                      day of                     , 2009, between The Medicines Company, a
Delaware corporation (the “Company”) and                                          (the “Participant”).

     In consideration of the Participant’s acceptance of employment with the Company and employment
services to be rendered by the Participant to the Company and for other valuable consideration, the
receipt and sufficiency of which is acknowledged and confirmed, the parties hereto agree as
follows:

     1. Issuance of Shares.

     The
Company shall issue to the Participant, subject to the terms and conditions set forth in
this Agreement and in the Company’s 2009 Equity Inducement Plan (the “Plan”),
                     
         
shares (the
“Shares”) of common stock, $0.001 par value, of the Company (“Common Stock”). The Shares are
issued effective as of the date set forth above in the name of the Participant and are initially
issued in book entry form only. Following the vesting of any Shares pursuant to Section 2 below,
the Company, if requested by the Participant, shall deliver (or shall instruct its transfer agent
to deliver) to the Participant a certificate representing the vested Shares. The Participant
agrees that the Shares shall be subject to vesting and forfeiture set forth in Section 2 of this
Agreement and the restrictions on transfer set forth in Section 3 of this Agreement.

     2. Vesting.

          (a) The Shares are subject to vesting in annual increments of 25% per year (the “Vesting
Requirements”). 25% of the Shares shall vest on                                         , 2010 (the “Initial Vesting Date”) as
long as the Participant is employed by the Company on such date. The remaining 75% of the Shares
shall vest in equal 25% increments on each anniversary of the Initial Vesting Date (each, a
“Subsequent Vesting Date”) as long as the Participant is employed by the Company on each such
Subsequent Vesting Date.

          (b) In the event that the Participant ceases to be employed by the Company for any reason or
no reason, with or without cause, prior to                                         , 2013, all of the Unvested Shares (as
defined below) as of the time of such employment termination shall be forfeited immediately and
automatically to the Company, without the payment of any consideration to the Participant,
effective as of immediately following such termination of employment.

     “Unvested Shares” means the total number of Shares multiplied by the Applicable Percentage (as
defined below) at the time the Participant ceases to be employed by the Company.

 

 

     “Applicable Percentage” shall be 100% prior to the Initial Vesting Date, and shall be reduced
by 25% on the Initial Vesting Date and on each Subsequent Vesting Date. The Applicable Percentage
shall be zero on or after                                         , 2013.

          (c) After the time at which any Shares are forfeited pursuant to subsection (b) above, the
Company shall not pay any dividend to the Participant on account of such Shares or permit the
Participant to exercise any of the privileges or rights of a stockholder with respect to such
Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares.

          (d) If the Participant is employed by a parent or subsidiary of the Company, any references in
this Agreement to employment with the Company or termination of employment by or with the Company
shall instead be deemed to refer to such parent or subsidiary.

     3. Restrictions on Transfer. The Participant shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any Unvested Shares, or any interest therein, except that the Participant may transfer
such Shares (i) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings,
grandchildren and any other relatives approved by the Board of Directors (collectively, “Approved
Relatives”) or to a trust established solely for the benefit of the Participant and/or Approved
Relatives, provided that such Shares shall remain subject to this Agreement (including
without limitation the restrictions on transfer set forth in this Section 3) and such permitted
transferee shall, as a condition to such transfer, deliver to the Company a written instrument
confirming that such transferee shall be bound by all of the terms and conditions of this Agreement
or (ii) as part of the sale of all or substantially all of the shares of capital stock of the
Company (including pursuant to a merger or consolidation), provided that, in accordance
with the Plan, the securities or other property received by the Participant in connection with such
transaction shall remain subject to this Agreement.

     4. Restrictive Legends.

     The book entry account reflecting the issuance of the Shares in the name of the Participant
shall bear a legend or other notation upon substantially the following terms:

“These shares of stock are subject to forfeiture and restrictions on
transfer set forth in a certain Restricted Stock Agreement between
the corporation and the registered owner of these shares (or his
predecessor in interest), and such Agreement is available for
inspection without charge at the office of the Secretary of the
corporation.”

     5. Provisions of the Plan.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

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          (b) As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the
Plan), the rights of the Company hereunder shall inure to the benefit of the Company’s successor
and shall apply to the cash, securities or other property which the Shares were converted into or
exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as
they applied to the Shares under this Agreement. If, in connection with a Reorganization Event, a
portion of the cash, securities and/or other property received upon the
conversion or exchange of the Shares is to be placed into escrow to secure indemnification or
other obligations, the mix between the vested and unvested portion of such cash, securities and/or
other property that is placed into escrow shall be the same as the mix between the vested and
unvested portion of such cash, securities and/or other property that is not subject to escrow.

     6. Withholding Taxes; Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the vesting of the Unvested Shares. The Participant
shall satisfy such tax withholding obligations by transferring to the Company, on each date on
which Unvested Shares vest under this Agreement, such number of Unvested Shares that vest on such
date as have a fair market value (calculated using the last reported sale price of the common stock
of the Company on the NASDAQ Global Market on such vesting date or, if such vesting date is not a
trading day, on the trading date immediately prior to such vesting date) equal to the amount of the
Company’s tax withholding obligation in connection with the vesting of such Unvested Shares. Such
delivery of Unvested Shares to the Company shall be deemed to happen automatically, without any
action required on the part of the Participant, and the Company is hereby authorized to take such
actions as are necessary to effect such delivery.

          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant acknowledges that he or she has been informed of the availability of making an election
under Section 83(b) of the Internal Revenue Code, as amended, with respect to the issuance of the
Shares and that the Participant has agreed not to file a Section 83(b) election.

     7. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares pursuant to Section 2 hereof is earned only by continuing service as an employee at
the will of the Company (not through the act of being hired or purchasing Shares hereunder). The
Participant further acknowledges and agrees that the transactions contemplated hereunder and the
Vesting Requirements set forth herein do not constitute an express or implied promise of continued
engagement as an employee for the vesting period, for any period, or at all.

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          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 3 of this Agreement.

          (e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery, facsimile delivery or delivery by overnight
courier, addressed to the other party hereto at the address shown beneath his or its respective
signature to this Agreement, or at such other address or addresses as either party shall designate
to the other in accordance with this Section 7(e).

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.

          (j) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to
seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully
aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr, LLP, is acting as counsel to the Company in connection with
the transactions contemplated by the Agreement, and is not acting as counsel for the Participant.

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

	 	 	 	 	 	 	 
	 	 	THE MEDICINES COMPANY	 	 
	 
	 	 	 	 	 	 
	     

	 	By:

Name:
	 	     
 

	 	     
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 
	 
	 	 	 	 	 	 
	     	 	 	 	     
	 

	 	Name	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 

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Exhibit 10.3

LORAL SPACE & COMMUNICATIONS INC.

2005 STOCK INCENTIVE PLAN

(Amended and Restated as of April 3, 2009)

     1. Purpose. 

     The purpose of the Plan is to assist the Company in attracting, retaining, motivating and
rewarding Eligible Persons, and to promote the creation of long-term value for stockholders by
closely aligning the interests of Participants with those of stockholders. The Plan authorizes the
award of stock-based incentives to Participants to encourage such persons to expend their maximum
efforts in the creation of stockholder value. The Plan is also intended to qualify certain
compensation awarded under the Plan for tax deductibility under Section 162(m) of the Code to the
extent deemed appropriate by the Committee which administers the Plan.

     2. Definitions. 

     For purposes of the Plan, the following terms shall be defined as set forth below:

          (a) “Affiliate” means, any other entity that, directly or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with the Company.

          (b) “Award” means any award of an Option, SAR, Restricted Stock, Restricted Stock
Unit, Stock granted as a bonus or in lieu of another award, or Other Stock-Based Award.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Cause” with respect to any Participant (A) shall have the meaning set forth in
the current effective employment or consulting agreement between the Company or an Affiliate, as
applicable, and the Participant or (B) in the event that there is no such employment or consulting
agreement or if there is no such definition in any such employment or consulting agreement, shall
mean, (i) the Participant shall have been after the Effective Date convicted of, or shall have
pleaded guilty or nolo contendere to, any felony or any other crime that would have constituted a
felony under the laws of the State of New York; (ii) the Participant shall have been indicted for
any felony or any other crime that would have constituted a felony under the laws of the State of
New York in connection with or arising from the Participant’s employment with the Company; (iii)
the Participant shall have breached any material provision of any noncompetition, nonsolicitation
or confidentiality agreement with the Company or any Affiliate; (iv) the Participant shall have
committed any fraud, embezzlement, misappropriation of funds, or breach of fiduciary duty against
the Company or any Affiliate, in each case of a material nature; (v) the Participant shall have
engaged in any willful misconduct resulting in or reasonably likely to result in a material loss to
the Company or substantial damage to its reputation; or (vi) the Participant willfully breaches in
any material respect any material provision of the Company’s Code of Conduct and, to the extent any
such breach is curable, the Participant has failed to cure such breach within ten (10) days after
written notice of the alleged breach is provided to the Participant.

 

 

          (e) “Change in Control” shall be deemed to have occurred if: (i) any person (as
defined in Section 3(a)(9) of the Exchange Act, and as used in Sections 13(d) and 14(d) thereof,
including any “group” as defined in Section 13(d)(3) thereof (a “Person”), but excluding the
Company, any Affiliate, any employee benefit plan sponsored or maintained by the Company or any
Affiliate (including any trustee of such plan acting as trustee), and any Person who owns 20% or
more of the total number of votes that may be cast for the election of directors of the Company
(the “Voting Shares”) as of the Effective Date, becomes the beneficial owner of 35% of the “Voting
Shares”; (ii) the Company undergoes any merger, consolidation, reorganization, recapitalization or
other similar business transaction, sale of all or substantially all of the Company’s assets or
combination of the foregoing transactions (a “Transaction”), other than a Transaction involving
only the Company and one or more Affiliates, and immediately following such Transaction the
shareholders of the Company immediately prior to the Transaction do not continue to own at least a
majority of the voting power in the resulting entity; (iii) the persons who are the original
members of the Board pursuant to the Plan of Reorganization (the “Incumbent Directors”) shall cease
(for any reason other than death) to constitute at least a majority of members of the Board or the
board of directors of any successor to the Company, provided that any director who was not a
director as of the Effective Date shall be deemed to be an Incumbent Director if such director was
elected to the Board by, or on the recommendation of or with the approval of, at least a majority
of the directors who then qualified as Incumbent Directors, either actually or by prior operation
of this definition; or (iv) the shareholders of the Company approve a plan of liquidation or
dissolution of the Company, or any such plan is actually implemented.

          (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions and regulations thereto.

          (g) “Committee” means a committee of two or more directors designated by the Board to
administer the Plan; provided, however, that directors appointed as members of the Committee shall
not be employees of the Company or any subsidiary. In appointing members of the Committee, the
Board will consider whether a member is or will be a Qualified Member, but such members are not
required to be Qualified Members at the time of appointment or during their term of service on the
Committee, and no action of the Committee shall be void or invalid due to the participation of a
member who is not a Qualified Member. If no Committee has been appointed, or if the Committee has
been disbanded, or if the Board makes a determination to assume any or all powers of the Committee,
any reference herein shall be deemed to be a reference to the Board; provided, however that if the
Board acts as the Committee, each member of the Board who is not a an independent member of the
Board under the NASDAQ independence requirements shall recuse himself or herself from any such
Board action, unless such action is for the purpose of granting awards hereunder to members of the
Board who are independent members of the Board not employed by the Company and the Board determines
to act as the full Board.

          (h) “Company” means Loral Space & Communications Inc., a Delaware corporation.

          (i) “Disability” means the permanent and total disability of a person within the
meaning of Section 22(e)(3) of the Code.

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          (j) “Dividend Equivalents” shall have the meaning set forth in Section 9 hereof.

          (k) “Effective Date” shall have the meaning set forth in Section 21 hereof.

          (l) “Eligible Person” means each employee of the Company or of any Affiliate,
including each such person who may also be a director of the Company, each non-employee director of
the Company or an Affiliate, each other person who provides substantial services to the Company
and/or its Affiliates and who is designated as eligible by the Committee, and any person who has
been offered employment by the Company or an Affiliate, provided that such prospective employee may
not receive any payment or exercise any right relating to an Award until such person has commenced
employment with the Company or an Affiliate. An employee on an approved leave of absence may be
considered as still in the employ of the Company or an Affiliate for purposes of eligibility for
participation in the Plan.

          (m) “Employer” means either the Company or an Affiliate that the Participant
(determined without regard to any transfer of an Award) is employed by or provides services to, as
applicable.

          (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, including rules thereunder and successor provisions and rules thereto.

          (o) “Expiration Date” means the date upon which the term of an Option, as determined
under 6(b) hereof, or SAR, as determined under Section 7(a)(ii) hereof expires.

          (p) “Fair Market Value” means on any date (A) if the Stock is listed on a national
securities exchange, the mean between the highest and lowest sales prices reported as having
occurred on the primary exchange with which the Stock is listed and traded on the date prior to
such date, or, if there is no such sale on that date, then on the last preceding date on which such
a sale was reported, (B) if the Stock is not listed on any national securities exchange but is
traded in the over-the-counter market bulletin board or pink sheets on a last sale basis, the
average between the high bid price and low ask price reported on the date prior to such date, or,
if there is no such sale on that date then on the last preceding date on which such a sale was
reported; provided, however, that for purposes of the Initial Option Grant, the Fair Market Value
shall be the weighted average of the aggregate sale prices of the Stock reported for the ten
trading days immediately preceding the grant date; and further provided, however, that if such
definition of Fair Market Value for Options granted in connection with the Plan of Reorganization
does not comply with the definition of fair market value for purposes of Section 409A of the Code
or if such definition would give rise to variable accounting treatment of such Options, then Fair
Market Value for such Options shall have the meaning attributable thereto in clauses (A) or (B)
above, as applicable, or such other meaning which complies with Section 409A and does not give rise
to variable accounting treatment. If the Stock is not listed on an exchange or traded in the
over-the-counter market, or representative quotes are not otherwise available, the Fair Market
Value shall mean the amount determined by the Board in good faith to be the fair market value per
share of Stock, on a fully diluted basis.

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          (q) “Good Reason” with respect to any Participant (A) shall have the meaning set forth
in the current effective employment or consulting agreement between the Company or an Affiliate, as
applicable, and the Participant or (B) in the event that there is no such employment or consulting
agreement or if there is no such definition in any such employment or consulting agreement, shall
mean, (i) the assignment to the Participant of any duties inconsistent in any substantial respect
with the Participant’s position, authority or responsibilities to or with the Company or an
Affiliate, as applicable, or any duties which are illegal or unethical or any diminution of any of
the Participant’s significant duties; (ii) any reduction in base salary, or to the extent
guaranteed by a contract with the Company or an Affiliate, as applicable, the Participant’s target
annual bonus or any of the benefits provided for in any such contract to the extent such reduction
is not permitted under the terms of any such contract; (iii) the relocation by the Company of the
Participant’s primary place of employment with the Company to a location not within a thirty (30)
mile radius of such place of employment as of the Effective Date; provided, however, that such
relocation shall not be considered Good Reason if such location is closer to the Participant’s home
than the Participant’s primary place of employment as of the Effective Date; (iv) any material
breach of any employment or consulting agreement with the Participant by the Company, or an
Affiliate, as appropriate; or (v) the failure of the Company to obtain the assumption in writing of
its obligation to perform any employment or consulting agreement with the Participant by any
successor to all or substantially all of the assets of the Company.

          (r) “Initial Option Grant” shall mean the automatic award of options under the Plan as
set forth in Section 6(h).

          (s) “Mature Shares” means (A) shares of Stock for which the Participant has good
title, free and clear of all liens and encumbrances, and which the Participant either (i) has held
for at least six months or (ii) has purchased on the open market or (B) such shares as determined
by the Committee.

          (t) “New Skynet” shall have the meaning ascribed thereto in the Plan of
Reorganization.

          (u) “New Skynet Sale Event” means a sale of all or substantially all of the common
stock or assets of New Skynet.

          (v) “New SS/L” shall have the meaning ascribed thereto in the Plan of Reorganization.

          (w) “New SS/L Sale Event” means a sale of all or substantially all of the common stock
or assets of New SS/L.

          (x) “Option” means a conditional right, granted to a Participant under Section 6
hereof, to purchase Stock at a specified price during specified time periods.

          (y) “Option Agreement” means a written agreement between the Company and a Participant
evidencing the terms and conditions of an individual Option grant.

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          (z) “Other Stock-Based Awards” means Awards granted to a Participant under Section 11
hereof.

          (aa) “Participant” means an Eligible Person who has been granted an Award under the
Plan which remains outstanding, or if applicable, such other person or entity who holds an
outstanding Award.

          (bb) “Plan” means this Loral Space & Communications Inc. 2005 Stock Incentive Plan.

          (cc) “Plan of Reorganization” means the [Fourth] Amended Joint Plan of Reorganization
under Chapter 11 of the Bankruptcy Code of Loral Space & Communications Ltd. et al.

          (dd) “Proprietary Information” with respect to any Participant means all confidential
specifications, know-how, strategic or technical data, marketing research data, product research
and development data, manufacturing techniques, confidential customer lists, sources of supply and
trade secrets, all of which are confidential to the Company, or any of its Affiliates, and may be
proprietary and are owned or used by the Company, or any of its Affiliates, including any and all
of such enumerated items coming within the scope of the business of the Company, or any of its
Affiliates, as to which the Participant may have access, whether conceived or developed by others
or by the Participant, alone or with others, during the Participant’s period of service with the
Company, and whether or not conceived or developed during regular working hours. However,
Proprietary Information shall not include any records, data or information which are in the public
domain during the Participant’s service with the Company or after the Participant’s service with
the Company has terminated, provided the same are not in the public domain as a consequence of
disclosure by the Participant.

          (ee) “Qualified Member” means a member of the Committee who is a “Non-Employee
Director” within the meaning of Rule 16b-3 and an “outside director” within the meaning of
Regulation 1.162-27(c) under Code Section 162(m).

          (ff) “Restricted Stock” means Stock granted to a Participant under Section 8 hereof,
that is subject to certain restrictions and to a risk of forfeiture.

          (gg) “Restricted Stock Agreement” means a written agreement between the Company and a
Participant evidencing the terms and conditions of an individual Restricted Stock grant.

          (hh) “Restricted Stock Unit” means a notional unit representing the right to receive
one share of Stock on the Settlement Date.

          (ii) “Restricted Stock Unit Agreement” means a written agreement between the Company
and a Participant evidencing the terms and conditions of an individual Restricted Stock Unit grant.

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          (jj) “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to
the Plan and Participants, promulgated by the Securities and Exchange Commission under Section 16
of the Exchange Act.

          (kk) “Section 409A” shall mean Section 409A of the Code and the rules, regulations,
Treasury Notices and other formal guidance promulgated by the IRS or the U.S. Treasury thereunder.

          (ll) “Securities Act” means the Securities Act of 1933, as amended from time to time,
including rules thereunder and successor provisions and rules thereto.

          (mm) “Senior Management Employee” means an employee of the Company designated by the
Chief Executive Officer of the Company as a Senior Management Employee.

          (nn) “Settlement Date” shall have the meaning set forth in Section 9 hereof.

          (oo) “Stock” means the Company’s Common Stock, $.01 par value, and such other
securities as may be substituted for Stock pursuant to Section 12 hereof.

          (pp) “Stock Appreciation Right” or “SAR” means a conditional right granted to
a Participant under Section 7 hereof.

     3. Administration.

          (a) Authority of the Committee. Except as otherwise provided below, the Plan shall be
administered by the Committee. The Committee shall have full and final authority, in each case
subject to and consistent with the provisions of the Plan, to (i) select Eligible Persons to become
Participants; (ii) grant Awards; (iii) determine the type, number, and other terms and conditions
of, and all other matters relating to, Awards; (iv) prescribe Award agreements (which need not be
identical for each Participant) and rules and regulations for the administration of the Plan; (v)
construe and interpret the Plan and Award agreements and correct defects, supply omissions, or
reconcile inconsistencies therein; and (vi) make all other decisions and determinations as the
Committee may deem necessary or advisable for the administration of the Plan. The foregoing
notwithstanding, the Board shall perform the functions of the Committee for purposes of granting
Awards under the Plan to non-employee directors. In any case in which the Board is performing a
function of the Committee under the Plan, each reference to the Committee herein shall be deemed to
refer to the Board, except where the context otherwise requires. Any action of the Committee shall
be final, conclusive and binding on all persons, including, without limitation, the Company, its
Affiliates, Eligible Persons, Participants and beneficiaries of Participants.

          (b) Manner of Exercise of Committee Authority. At any time that a member of the
Committee is not a Qualified Member, (i) any action of the Committee relating to an Award intended
by the Committee to qualify as “performance-based compensation” within the meaning of Section
162(m) of the Code and regulations thereunder may be taken by a subcommittee, designated by the
Committee or the Board, composed solely of two or more Qualified Members; and (ii) any action
relating to an Award granted or to be granted to a
Participant who is then subject to Section 16 of the Exchange Act in respect of the Company

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may be taken either by such a subcommittee or by the Committee but with each such member who is not
a Qualified Member abstaining or recusing himself or herself from such action, provided that, upon
such abstention or recusal, the Committee remains composed of two or more Qualified Members. Such
action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of
such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan. The
express grant of any specific power to the Committee, and the taking of any action by the
Committee, shall not be construed as limiting any power or authority of the Committee.

          (c) Delegation. The Committee may delegate to officers or employees of the Company or
any Affiliate, or committees thereof, the authority, subject to such terms as the Committee shall
determine, to perform such functions, including but not limited to administrative functions, as the
Committee may determine appropriate. The Committee may appoint agents to assist it in
administering the Plan. Notwithstanding the foregoing or any other provision of the Plan to the
contrary, any Award granted under the Plan to any person or entity who is not an employee of the
Company or any of its Affiliates shall be expressly approved by the Committee.

     4. Shares Available Under the Plan.

          (a) Number of Shares Available for Delivery. Subject to adjustment as provided in
Section 12 hereof, the total number of shares of Stock reserved and available for delivery in
connection with Awards under the Plan shall be 2,972,452. Shares of Stock delivered under the Plan
shall consist of authorized and unissued shares or previously issued shares of Stock reacquired by
the Company on the open market or by private purchase.

          (b) Share Counting Rules. The Committee may adopt reasonable counting procedures to
ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or
substitute awards) and make adjustments if the number of shares of Stock actually delivered differs
from the number of shares previously counted in connection with an Award. To the extent that an
Award expires or is canceled, forfeited, settled in cash or otherwise terminated or concluded
without a delivery to the Participant of the full number of shares to which the Award related, the
undelivered shares will again be available for Awards. Shares withheld in payment of the exercise
price or taxes relating to an Award and shares equal to the number surrendered in payment of any
exercise price or taxes relating to an Award shall be deemed to constitute shares not delivered to
the Participant and shall be deemed to again be available for Awards under the Plan; provided,
however, that, where shares are withheld or surrendered more than ten years after the date of the
most recent shareholder approval of the Plan or any other transaction occurs that would result in
shares becoming available under this Section 4(b), such shares shall not become available if and
to the extent that it would constitute a material revision of the Plan subject to shareholder
approval under then applicable rules of the principle stock exchange or automated quotation system
on which the shares are then listed or designated for trading.

     5. Eligibility; Limitations on Awards.

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          (a) Grants to Eligible Persons. Awards may be granted under the Plan only to Eligible
Persons.

          (b) 162(m) Limitation. Subject to Section 12 relating to adjustments, no Employee
shall be eligible to be granted Options or Stock Appreciation Rights covering more than 1,000,000
shares of Stock during any calendar year.

     6. Options.

          (a) General. Except as provided in the Initial Option Grant, Options granted
hereunder shall be in such form and shall contain such terms and conditions as the Committee shall
deem appropriate. The provisions of separate Options shall be set forth in an Option Agreement,
which agreements need not be identical.

          (b) Term. Except as provided in the Initial Option Grant, the term of each Option
shall be set by the Committee at the time of grant; provided, however, that no Option granted
hereunder shall be exercisable after the expiration of ten (10) years from the date it was granted.

          (c) Exercise Price. Except as provided in the Initial Option Grant, the exercise
price per share of Stock for each Option shall be set by the Committee at the time of grant but
shall not be less than the par value of a share of Stock.

          (d) Payment for Stock. Payment for shares of Stock acquired pursuant to Options
granted hereunder shall be made in full, upon exercise of the Options in immediately available
funds in United States dollars, by certified or bank cashier’s check or, in the discretion of the
Committee, (i) by surrender to the Company of Mature Shares held by the Participant; (ii) by
delivering to the Committee a copy of irrevocable instructions to a stockbroker to deliver promptly
to the Company an amount of sale or loan proceeds sufficient to pay the aggregate Option exercise
price; (iii) through a net exercise of the Options whereby the Participant instructs the Company to
withhold that number of shares of Stock having a Fair Market Value equal to the aggregate exercise
price of the Options being exercised and deliver to the Participant the remainder of the shares
subject to exercise or (iv) by any other means approved by the Committee. Anything herein to the
contrary notwithstanding, the Company shall not directly or indirectly extend or maintain credit,
or arrange for the extension of credit, in the form of a personal loan to or for any director or
executive officer of the Company through the Plan in violation of Section 402 of the Sarbanes-Oxley
Act of 2002 (“Section 402 of SOX”), and to the extent that any form of payment would, in
the opinion of the Company’s counsel, result in a violation of Section 402 of SOX, such form of
payment shall not be available.

          (e) Vesting. Except as provided in the Initial Option Grant, Options shall vest and
become exercisable in such manner and on such date or dates set forth in the Option Agreement, as
may be determined by the Committee; provided, however, that notwithstanding any vesting dates
contained herein or otherwise set by the Committee, the Committee may in its sole discretion
accelerate the vesting of any Option, which acceleration shall not affect the terms and conditions
of any such Option other than with respect to vesting. Unless otherwise specifically determined by
the Committee and except for Options that are specifically subject to

8

 

automatic accelerated vesting upon termination of employment, the vesting of an Option shall
occur only while the Participant is employed or rendering services to the Company or an Affiliate
and all vesting shall cease upon a Participant’s termination of employment or services for any
reason. If an Option is exercisable in installments, such installments or portions thereof which
become exercisable shall remain exercisable until the Option expires either on the Expiration Date
or earlier following a termination of employment as set forth in the Option Agreement. Unless
otherwise determined by the Committee, Options shall vest only as to full shares of Stock, rounded
down to the nearest full share, except that the last tranche to vest with respect to any Option
Award shall encompass the full number of shares subject to the Option Award.

          (f) Transferability of Options. An Option shall not be transferable except by will or
by the laws of descent and distribution and shall be exercisable during the lifetime of the
Participant only by the Participant. Notwithstanding the foregoing, Options shall be transferable
to the extent provided in the Option Agreement or as otherwise determined by the Committee.

          (g) Termination of Employment or Service. Except as provided in the Initial Option
Grant or as may otherwise be provided by the Committee in the Option Agreement other than with
respect to the Initial Option Grant:

          (i) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer terminates for any reason other than (A) by the Employer for
Cause, or (B) by reason of the Participant’s death or Disability, (1) all vesting with
respect to the Options shall cease, (2) any unvested Options shall expire as of the date of
such termination, and (3) any vested Options shall remain exercisable until the earlier of
the Expiration Date or the date that is three (3) months after the date of such termination.

          (ii) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer terminates by reason of such Participant’s death or
Disability, (A) all vesting with respect to the Options shall cease, (B) any unvested
Options shall expire as of the date of such termination, and (C) any vested Options shall
expire on the earlier of the Expiration Date or the date that is twelve (12) months after
the date of such termination due to death or Disability of the Holder. In the event of a
Participant’s death, the Options shall remain exercisable by the person or persons to whom a
Participant’s rights under the Options pass by will or the applicable laws of descent and
distribution until its expiration, but only to the extent the Options were vested by such
Participant at the time of such termination due to death.

          (iii) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer is terminated by the Employer for Cause, all Options (whether
or not vested) shall immediately expire as of the date of such termination.

          (h) Initial Option Grant. On the date that is thirty days following the Effective
Date, the individuals listed on the schedule approved by the Board of Directors of Loral Space &
Communications Ltd. to be granted Options pursuant to the Plan upon the Company’s emergence

9

 

from bankruptcy (the “Approved List”) shall automatically be granted Options with respect to
the number of shares listed across from each individuals name on the Approved List. The Options
granted to those individuals identified as Senior Management on the Approved List shall have such
terms and conditions as set forth in the Option Agreement for Senior Management, attached as
Exhibit A hereto. The Options granted to those individuals identified as Non-Senior Management on
the Approved List shall have such terms and conditions as set forth in the Option Agreement for
Non-Senior Management, attached as Exhibit B hereto.

          7. Stock Appreciation Rights.

          (a) General. The Committee is authorized to grant SARs to Participants on the
following terms and conditions:

          (i) Right to Payment. A SAR shall confer on the Participant to whom it is granted a
right to receive, upon exercise, or if necessary to conform to the requirements of 409A, on
each vesting date thereof, the value of the excess of (A) the Fair Market Value of one share
of Stock on the date of exercise over (B) the grant price of the SAR as determined by the
Committee.

          (ii) Term. The term of each SAR shall be set by the Committee at the time of grant;
provided, however, that no SAR granted hereunder shall be exercisable after the expiration
of ten (10) years from the date it was granted.

          (iii) Grant Price. The grant price per share of Stock for each SAR shall be set by the
Committee at the time of grant.

          (iv) Other Terms. The Committee shall determine at the date of grant or thereafter:
(A) the time or times at which and the circumstances under which a SAR may be exercised in
whole or in part (including based on achievement of performance goals and/or future service
requirements); (B) the method of exercise; (C) the method of settlement; (D) whether cash or
Stock will be payable to the Participant upon exercise of the SAR; (E) the method by or
forms in which Stock will be delivered or deemed to be delivered to Participants; (F)
whether or not a SAR shall be alone, in tandem or in combination with any other Award; and
(G) and any other terms and conditions of any SAR.

          (b) Termination of Employment or Service. Except as may otherwise be provided by the
Committee in the applicable Award agreement:

          (i) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer terminates for any reason other than (A) by the Employer for
Cause, or (B) by reason of the Participant’s death or Disability, (1) all vesting with
respect to the SARs shall cease, (2) any unvested SARs shall expire as of the date of such
termination, and (3) any vested SAR shall remain exercisable until the earlier of the
Expiration Date or the date that is ninety (90) days after the date of such termination.

10

 

          (ii) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer terminates by reason of such Participant’s death or
Disability, (A) all vesting with respect to the SARs shall cease, (B) any unvested SARs
shall expire as of the date of such termination, and (C) any vested SARs shall expire on the
earlier of the Expiration Date or the date that is twelve (12) months after the date of such
termination due to death or Disability of the Holder. In the event of a Participant’s
death, the SARs shall remain exercisable by the person or persons to whom a Participant’s
rights under the SARs pass by will or the applicable laws of descent and distribution until
its expiration, but only to the extent the SARs were vested by such Participant at the time
of such termination due to death.

          (iii) If prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer is terminated by the Employer for Cause, all SARs (whether or
not vested) shall immediately expire as of the date of such termination, and such
Participant shall have no further rights with respect thereto.

     8. Restricted Stock. 

          (a) General. Restricted Stock granted hereunder shall be in such form and shall
contain such terms and conditions as the Committee shall deem appropriate. The terms and
conditions of each Restricted Stock grant shall be evidenced by a Restricted Stock Agreement, which
agreements need not be identical. Subject to the restrictions set forth in Section 8(b), except
as otherwise set forth in the applicable Restricted Stock Agreement, the Participant shall
generally have the rights and privileges of a stockholder as to such Restricted Stock, including
the right to vote such Restricted Stock. The Committee shall determine whether or not dividends
shall accrue on shares of Restricted Stock. At the discretion of the Committee, cash dividends and
stock dividends, if any, with respect to the Restricted Stock may be either currently paid to the
Participant or withheld by the Company for the Participant’s account. A Participant’s Restricted
Stock Agreement may provide that cash dividends or stock dividends so withheld shall be subject to
forfeiture to the same degree as the shares of Restricted Stock to which they relate. Except as
otherwise determined by the Committee, no interest will accrue or be paid on the amount of any cash
dividends withheld.

          (b) Restrictions on Transfer. In addition to any other restrictions set forth in a
Participant’s Restricted Stock Agreement, until such time that the Restricted Stock has vested
pursuant to the terms of the Restricted Stock Agreement, which vesting the Committee may in its
sole discretion accelerate at any time, the Participant shall not be permitted to sell, transfer,
pledge, or otherwise encumber the Restricted Stock. Notwithstanding anything contained herein to
the contrary, the Committee shall have the authority to remove any or all of the restrictions on
the Restricted Stock whenever it may determine that, by reason of changes in applicable laws or
other changes in circumstances arising after the date of the Restricted Stock Award, such action is
appropriate.

          (c) Certificates. Restricted Stock granted under the Plan may be evidenced in such
manner as the Committee shall determine. If certificates representing Restricted Stock are
registered in the name of the Participant, the Committee may require that such certificates bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such

11

 

Restricted Stock, that the Company retain physical possession of the certificates, and that
the Participant deliver a stock power to the Company, endorsed in blank, relating to the Restricted
Stock. Notwithstanding the foregoing, the Committee may determine, in its sole discretion, that
the Restricted Stock shall be held in book entry form rather than delivered to the Participant
pending the release of the applicable restrictions.

          (d) Termination of Employment or Service. Except as may otherwise be provided by the
Committee in the Restricted Stock Agreement, if, prior to the time that the Restricted Stock has
vested, a Participant’s employment or service, as applicable, terminates for any reason, (i) all
vesting with respect to the Restricted Stock shall cease, and (ii) at any time following such
termination, and upon written notice to the Participant, the Company shall have the right to
repurchase from the Participant any unvested shares of Restricted Stock at a purchase price equal
to the original purchase price paid for the Restricted Stock, or if the original purchase price is
$0, such unvested shares of Restricted Stock shall be forfeited by the Participant for no
consideration.

          9. Restricted Stock Units

          (a) General. Restricted Stock Units granted hereunder shall be in such form and shall
contain such terms and conditions as the Committee shall deem appropriate. The terms and
conditions of each Restricted Stock Unit grant shall be evidenced by a Restricted Stock Unit
Agreement. No shares of Stock shall be issued at the time a Restricted Stock Unit grant is made,
and the Company will not be required to set aside a fund for the payment of any such Award;
provided, however, that for purposes of Section 4(a) hereof, a share of Stock shall be deemed
awarded at the time of grant. The Committee shall determine whether or not dividends shall accrue
on Restricted Stock Units. If the Committee so determines, recipients of Restricted Stock Units
shall be entitled to an amount equal to the cash dividends paid by the Company upon one share of
Stock for each Restricted Stock Unit then credited to such recipient’s account (“Dividend
Equivalents”). The Committee shall, in its sole discretion, determine whether to credit to the
account of, or to currently pay to, such Participant the Dividend Equivalents. A Participant’s
Restricted Stock Unit Agreement may provide that Dividends Equivalents shall be subject to
forfeiture to the same degree as the shares of Restricted Stock Units to which they relate. Except
as otherwise determined by the Committee, no interest will accrue or be paid on Dividend
Equivalents credited to a recipient’s account.

          (b) Conditions of Grant. Restricted Stock Units awarded to any Eligible Person shall
be subject to (i) forfeiture until the expiration of the restricted period, to the extent provided
in the Restricted Stock Unit Agreement, and to the extent such Awards are forfeited, all rights of
the recipient to such Awards shall terminate without further obligation on the part of the Company,
and (ii) such other terms and conditions as may be set forth in the applicable Award agreement.
Notwithstanding anything contained herein to the contrary, the Committee shall have the authority
to remove any or all of the restrictions on the Restricted Stock Units whenever it may determine
that, by reason of changes in applicable laws or other changes in circumstances arising after the
date of the Restricted Stock Unit Award, such action is appropriate.

          (c) Settlement of Restricted Stock Units. Upon a date or dates on or following the
expiration of the restricted period as shall be determined by the Committee and set

12

 

forth in a Participant’s Restricted Stock Unit Agreement (the “Settlement Date(s)”),
unless earlier forfeited, the Company shall settle the Restricted Stock Unit by delivering (i) a
number of shares of Stock equal to the number of Restricted Stock Units then vested and not
otherwise forfeited, and (ii) if applicable, a number of shares of Stock having a value equal to
any unpaid Dividend Equivalents accrued with respect to the Restricted Stock Units. The Company
may, in the Committee’s sole discretion, settle a Restricted Stock Unit Award in (A) cash, (B) in
the delivery of shares of Stock or other property, (C) partially in cash and partially in the
delivery of shares of Stock and/or other property, or (D) partially in the delivery of shares of
Stock and partially in the delivery of other property. A settlement in cash or other property
shall be based on the value of the shares of Stock otherwise to be delivered on the Settlement
Date.

          (d) Creditor’s Rights. A holder of Restricted Stock Units shall have no rights other
than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and
unsecured obligation of the Company, subject to the terms and conditions of the applicable
Restricted Stock Unit Agreement.

          (e) Termination of Employment or Service. Except as may otherwise be provided in by
the Committee in the Restricted Stock Unit Agreement, if, prior to the time that the Restricted
Stock Unit has vested, a Participant’s employment or service, as applicable, terminates for any
reason, all Restricted Stock Units that have not vested on or prior the date of such termination
shall be forfeited, and vested Restricted Stock Units shall be settled as soon as practicable
following the date of such termination; provided, however, if such Participant’s employment or
service, as applicable, was terminated by the Employer for Cause, all Restricted Stock Units,
whether or not then vested, shall be forfeited, and such Participant shall have no further rights
with respect thereto.

     10. Bonus Stock and Awards in Lieu of Obligations. 

     The Committee is authorized to grant Stock as a bonus, or to grant Stock or other Awards in
lieu of obligations of the Company or a subsidiary of the Company under the Plan or under other
plans or compensatory arrangements, subject to such terms and conditions as shall be determined by
the Committee.

     11. Other Stock-Based Awards. 

     The Committee is authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that may be denominated or payable in, valued in whole or in part by
reference to, or otherwise based on, or related to, Stock, as deemed by the Committee to be
consistent with the purposes of the Plan.

     12. Adjustment for Recapitalization, Merger, etc.

          (a) Capitalization Adjustments. In the event of any change in the outstanding Stock
or in the capital structure of the Company by reason of stock dividends or extraordinary dividends
payable in cash or any other form of consideration, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other
relevant changes in capitalization or any change in applicable laws or any change in circumstances
which results in or would result in any substantial dilution or enlargement of the

13

 

rights granted to, or available for, Participants in the Plan, the Committee shall make such
substitution or adjustment, if any, as is equitable and proportional (as determined by the
Committee in good faith), as to (i) the number and/or kind of Stock or other securities issued or
reserved for issuance (including the maximum number and/or kind of Stock or other securities with
respect to which one person may be granted Options or SARs in any given year) pursuant to the Plan
or any outstanding Award, and/or (ii) the exercise price of any Option or SAR. Absent manifest
error, any adjustment shall be conclusively determined by the Committee; provided, in each case,
the fair value of the Award immediately following any such adjustment shall be equal to the fair
value of the Award immediately prior to such adjustment.

          (b) Fractional Shares. Any such adjustment may provide for the elimination of any
fractional share which might otherwise become subject to an Award.

          13. Change in Control

          (a) Change in Control of the Company. In the event of a Change in Control all
outstanding Awards shall become immediately vested and exercisable, the restrictions thereon shall
lapse and all such Awards shall become immediately payable or subject to settlement. In the event
of a Change in Control, it will not be a violation of Section 19 hereunder for the Committee to
cancel any or all outstanding Awards in exchange for a cash payment to each Award holder having a
value equal to the value of each such Award at the time of such Change in Control. Furthermore, it
will not be a violation of Section 19 hereunder for the Committee to cancel, without any such
payment, any or all outstanding Awards having no value at the time of such Change in Control.

          (b) New Skynet or New SS/L Sale Event/Subsidiary Employees. In the event of a New
Skynet Sale Event, all outstanding Awards held by employees or service providers of New Skynet
shall become immediately vested and exercisable, the restrictions thereon shall lapse and all such
Awards shall become immediately payable or subject to settlement. In the event of a New SS/L Sale
Event, all outstanding Awards held by employees or service providers of New SS/L shall become
immediately vested and exercisable, the restrictions thereon shall lapse and all such Awards shall
become immediately payable or subject to settlement. Moreover, notwithstanding any limits on the
exercisability of any Option following a Participant’s termination of employment with New Skynet or
New SS/L, as applicable, as set forth in any Option Agreement, Options held by employees or service
providers of New Skynet or New SS/L, as applicable, shall remain exercisable for the shorter of (i)
one year following the New Skynet Sale Event or New SS/L Sale Event, as applicable or (ii) the
remaining term of the Option as set forth in the Option Agreement.

          (c) New Skynet or New SS/L Sale Event/Corporate Headquarters Employees. In the event
of a New Skynet Sale Event or a New SS/L Sale Event, (i) 50% of all outstanding unvested Awards
held by employees of the Company assigned to the Company’s corporate headquarters shall become
immediately vested and exercisable, the restrictions thereon shall lapse and all such Awards shall
become immediately payable or subject to settlement if the New Skynet Sale Event or a New SS/L Sale
Event occurs on or prior to the first anniversary of the Effective Date, or (ii) one-third of all
outstanding unvested Awards held by employees of the Company assigned to the Company’s corporate
headquarters shall become immediately vested

14

 

and exercisable, the restrictions thereon shall lapse and all such Awards shall become
immediately payable or subject to settlement if the New Skynet Sale Event or a New SS/L Sale Event
occurs after the first anniversary but on or prior to the second anniversary of the Effective Date.

          (d) Change in Control under Section 409A. Notwithstanding anything herein to the
contrary, to the extent that any Award hereunder, either in whole or in part, is deemed to provide
for the deferral of compensation within the meaning of Section 409A, there shall be no distribution
of any such deferred compensation on account of a Change in Control, a New Skynet Sale Event or a
New SS/L Sale Event unless such event also constitutes a “Change in Control Event” within the
meaning of Section 409A or such distribution is otherwise allowable under Section 409A.

          14. Use of Proceeds.

     The proceeds received from the sale of Stock pursuant to the Plan shall be used for general
corporate purposes.

          15. Rights and Privileges as a Stockholder.

     Except as otherwise specifically provided in the Plan, no person shall be entitled to the
rights and privileges of stock ownership in respect of shares of Stock which are subject to Awards
hereunder until such shares have been issued to that person.

          16. Employment or Service Rights.

     No individual shall have any claim or right to be granted an Award under the Plan or, having
been selected for the grant of an Award, to be selected for a grant of any other Award. Neither
the Plan nor any action taken hereunder shall be construed as giving any individual any right to be
retained in the employ or service of the Company or an Affiliate.

          17. Compliance With Laws.

     The obligation of the Company to make payment of Awards in Stock or otherwise shall be subject
to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as
may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company
shall be under no obligation to offer to sell or to sell and shall be prohibited from offering to
sell or selling any shares of Stock pursuant to an Award unless such shares have been properly
registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or
unless the Company has received an opinion of counsel, satisfactory to the Company, that such
shares may be offered or sold without such registration pursuant to an available exemption
therefrom and the terms and conditions of such exemption have been fully complied with. The
Company shall be under no obligation to register for sale or resale under the Securities Act any of
the shares of Stock to be offered or sold under the Plan or any shares of Stock issued upon
exercise or settlement of Awards. If the shares of Stock offered for sale or sold under the Plan
are offered or sold pursuant to an exemption from registration under the Securities Act, the
Company may restrict the transfer of such shares and may legend

15

 

the Stock certificates representing such shares in such manner as it deems advisable to ensure
the availability of any such exemption.

          18. Withholding Obligations.

     As a condition to the exercise or vesting, as applicable, of any Award, the Committee may
require that a Participant satisfy, through deduction or withholding from any payment of any kind
otherwise due to the Participant, or through such other arrangements as are satisfactory to the
Committee, the minimum amount of all Federal, state and local income and other taxes of any kind
required to be withheld in connection with such vesting or exercise. The Committee, in its
discretion, may permit shares of Stock to be used to satisfy tax withholding requirements and such
shares shall be valued at their Fair Market Value as of the settlement date of the Award.

          19. Amendment of the Plan or Awards.

          (a) Amendment of Plan. The Board at any time, and from time to time, may amend the
Plan; provided, however, that without further stockholder approval the Board shall not make any
amendment to the Plan which would increase the maximum number of shares of Stock which may be
issued pursuant to Awards under the Plan, except as contemplated by Section 12 hereof, or, which
would otherwise violate the shareholder approval requirements of the national securities exchange
on which the Stock is listed or Nasdaq, as applicable.

          (b) No Impairment of Rights. Rights under any Award granted before amendment of the
Plan shall not be impaired by any amendment of the Plan unless the Participant consents in writing.

          (c) Amendment of Stock Awards. The Committee, at any time, and from time to time, may
amend the terms of any one or more Awards; provided, however, that the rights under any Award shall
not be impaired by any such amendment unless the Participant consents in writing.

          20. Termination or Suspension of the Plan.

     The Plan shall terminate on the day before the tenth (10th) anniversary of the date
the Plan is adopted by the Board and no Awards may be granted under the Plan after it is
terminated; provided, however, that the Plan shall continue to be administered with respect to
outstanding Awards until all such Awards have been fully exercised or otherwise expire by their
terms.

          21. Effective Date of the Plan.

     The Plan shall become effective as of the effective date of the Plan of Reorganization.

          22. Miscellaneous.

          (a) Awards to Participants Outside of the United States. The Committee may modify the
terms of any Award under the Plan made to or held by a Participant who is then resident or
primarily employed outside of the United States in any manner deemed by the Committee to be
necessary or appropriate in order that such Award shall conform to laws,

16

 

regulations and customs of the country in which the Participant is then resident or primarily
employed, or so that the value and other benefits of the Award to the Participant, as affected by
foreign tax laws and other restrictions applicable as a result of the Participant’s residence or
employment abroad, shall be comparable to the value of such Award to a Participant who is resident
or primarily employed in the United States. An Award may be modified under this Section 22(a) in
a manner that is inconsistent with the express terms of the Plan, so long as such modifications
will not contravene any applicable law or regulation or result in actual liability under Section
16(b) of the Exchange Act for the Participant whose Award is modified.

          (b) No Liability of Committee Members. No member of the Committee shall be personally
liable by reason of any contract or other instrument executed by such member or on his behalf in
his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and
the Company shall indemnify and hold harmless each member of the Committee and each other employee,
officer or director of the Company to whom any duty or power relating to the administration or
interpretation of the Plan may be allocated or delegated, against any cost or expense (including
counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act
or omission to act in connection with the Plan unless arising out of such person’s own fraud or
willful bad faith; provided, however, that approval of the Board shall be required
for the payment of any amount in settlement of a claim against any such person. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which
such persons may be entitled under the Company’s Certificate of Incorporation or By-Laws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

          (c) Payments Following Accidents or Illness. If the Committee shall find that any
person to whom any amount is payable under the Plan is unable to care for his affairs because of
illness or accident, or is a minor, or has died, then any payment due to such person or his estate
(unless a prior claim therefor has been made by a duly appointed legal representative) may, if the
Committee so directs the Company, be paid to his spouse, child, relative, an institution
maintaining or having custody of such person, or any other person deemed by the Committee to be a
proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be
a complete discharge of the liability of the Committee and the Company therefor.

          (d) Designation and Change of Beneficiary. Each Participant may file with the Company
a written designation of one or more persons as the beneficiary who shall be entitled to receive
the rights or amounts payable with respect to an Award due under the Plan upon his death. A
Participant may, from time to time, revoke or change his beneficiary designation without the
consent of any prior beneficiary by filing a new designation with the Committee. The last such
designation received by the Company shall be controlling; provided, however, that
no designation, or change or revocation thereof, shall be effective unless received by the Company
prior to the Participant’s death, and in no event shall it be effective as of a date prior to such
receipt. If no beneficiary designation is filed by the Participant, the beneficiary shall be
deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her
estate. Any beneficiary of the Participant receiving an Award hereunder shall remain subject to
the terms of the Plan and the applicable Award agreement.

17

 

          (e) Governing Law. The Plan shall be governed by and construed in accordance with the
internal laws of the State of Delaware without reference to the principles of conflicts of laws
thereof.

          (f) Funding. No provision of the Plan shall require the Company, for the purpose of
satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or
other entity to which contributions are made or otherwise to segregate any assets, nor shall the
Company maintain separate bank accounts, books, records or other evidence of the existence of a
segregated or separately maintained or administered fund for such purposes. Participants shall
have no rights under the Plan other than as unsecured general creditors of the Company, except that
insofar as they may have become entitled to payment of additional compensation by performance of
services, they shall have the same rights as other employees under general law.

          (g) Reliance on Reports. Each member of the Committee and each member of the Board
shall be fully justified in relying, acting or failing to act, and shall not be liable for having
so relied, acted or failed to act in good faith, upon any report made by the independent public
accountant of the Company and its Affiliates and upon any other information furnished in connection
with the Plan by any person or persons other than himself.

          (h) Titles and Headings. The titles and headings of the sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than
such titles or headings shall control.

          (i) Section 409A Compliance. Awards issued hereunder are generally intended to be
exempt from Section 409A. To the extent that any payments or benefits provided hereunder are
considered nonqualified deferred compensation subject to Section 409A, the Company intends for the
provisions of this Plan and the Award agreements issued hereunder providing for such payments and
benefits to comply with Section 409A as to form and operation. To the extent that there are any
ambiguities in this Plan document or any Award agreement issued hereunder, they shall be
interpreted and administered consistent with such intent. Notwithstanding the immediately prior
sentence, (i) if any term or provision of this Plan or any Award agreement issued hereunder
relating to any payments or benefits considered to be nonqualified deferred compensation is found
to be noncompliant with Section 409A or to cause such nonqualified deferred compensation to be
noncompliant with Section 409A or (ii) any term or provision of this Plan or any Award agreement
issued hereunder relating to Awards that are intended to be exempt from Section 409A is found to
cause the Award to be subject to and not to be exempt from Section 409A, in each case, in any
jurisdiction, such provision shall be struck as void ab initio, and a compliant or exempt term or
provision, as applicable, shall be deemed substituted for such noncompliant or nonexempt term or
provision, as applicable, that preserves, to the maximum lawful extent, the intent of the Company,
and any court or arbitrator so holding shall have authority and shall be instructed to substitute
such compliant or exempt term or provision; provided, however, that if any such
noncompliance or nonexemption, as applicable, is due to a deficiency of one or more terms or
provisions, such appropriate terms or provisions shall be deemed to be added to cure such
noncompliance or nonexemption, as applicable, that preserves, to the maximum lawful extent, the
intent of the Company, and any such court or arbitrator shall have authority and shall be
instructed to supplement the Plan and/or Award

18

 

agreement with such compliant or exempt terms or provisions, as applicable. The Company
reserves the right to amend this Plan and Awards granted hereunder to cause the Plan and/or such
Awards to comply with or be exempt from Section 409A. Notwithstanding anything herein to the
contrary, the Company does not hereby guarantee or represent that this Plan and the Awards issued
hereunder will be either exempt from or compliant with Section 409A, or that the Plan or Awards
will not subject the recipients of such Awards to the taxes, penalties and interest imposed under
Section 409A for failure to comply therewith, and none of the Company, any Affiliate, the Committee
nor any employee, officer, or director of the Company or any Affiliate shall be liable to any Award
recipient or any other person or entity for any taxes, penalties or interest thereon imposed on or
incurred by any Award recipient or any other person due to the Plan’s or any Award’s failure to
comply with Section 409A as to either form or operation. Notwithstanding anything herein to the
contrary, in the event that any one or more payments hereunder, which are considered to be
nonqualified deferred compensation subject to Section 409A, are to be made to an individual on
account of the individual’s separation from service with Loral or an Affiliate, and at the time of
such payment such individual is a “specified employee” as defined in Treasury Regulation §
1.409A-1(i), such payment(s) shall be delayed for such period of time as may be necessary as
required pursuant to Treasury Regulation § 1.409A-1(c)(3)(v), and on the earliest date on which
such payment(s) may be made following such delay without violating the requirements Treasury
Regulation § 1.409A-1(c)(3)(v), all such delayed payments shall be paid to the individual in a lump
sum on such date.

19

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