Document:

<PAGE>   1
                                                                    Exhibit 10.4

                    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

          ------------------------------------------------------------

                                CREDIT AGREEMENT

          ------------------------------------------------------------

                       Dated for reference March 31, 2000
<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                <C>
 ARTICLE 1INTERPRETATION
      1.1  DEFINED TERMS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2
      1.2  COMPUTATION OF TIME PERIODS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
      1.3  ACCOUNTING TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
      1.4  INCORPORATION OF SCHEDULES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
      1.5  GENDER; SINGULAR, PLURAL, ETC.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
      1.6  USE OF CERTAIN WORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
      1.7  SUCCESSORS, ETC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
      1.8  INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.  . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
      1.9  GENERAL PROVISIONS AS TO CERTIFICATES AND OPINIONS, ETC. . . . . . . . . . . . . . . . . . . . . . . .  22

ARTICLE 2THE CREDIT FACILITIES
      2.1  CREDIT FACILITIES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
      2.4  VOLUNTARY REDUCTIONS AND PREPAYMENTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
      2.5  PAYMENTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
      2.6  COMPUTATIONS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
      2.7  FEES.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
      2.8  INTEREST ON OVERDUE AMOUNTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
      2.10 ACCOUNT DEBIT AUTHORIZATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
      2.11 ADMINISTRATIVE AGENT'S DISCRETION ON ALLOCATION  . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
      2.12 ROLLOVER AND CONVERSION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31

ARTICLE 3ADVANCES
      3.1  ADVANCES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32
      3.2  MAKING THE ADVANCES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32

ARTICLE 4BANKERS' ACCEPTANCES
      4.1  ACCEPTANCES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  35
      4.2  DRAWDOWN REQUEST.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  35
      4.3  FORM OF BANKERS' ACCEPTANCES.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  35
      4.4  COMPLETION OF BANKERS' ACCEPTANCE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
      4.5  PROCEEDS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
      4.6  STAMPING FEE   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
      4.7  PAYMENT AT MATURITY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
      4.8  DELIVERY OF POWER OF ATTORNEY RESPECTING BANKERS' ACCEPTANCES.   . . . . . . . . . . . . . . . . . . .  37
      4.9  PREPAYMENTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
      4.10 DEFAULT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  38
      4.11 OLD SYSTEM ISSUERS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  38

ARTICLE 5LETTERS OF CREDIT
</TABLE>
<PAGE>   3

<TABLE>
<S>                                                                                                                <C>
      5.1  LETTERS OF CREDIT COMMITMENT   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  38
      5.2  NOTICE OF ISSUANCE.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  39
      5.3  FORM OF LETTER OF CREDIT.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  39
      5.4  PROCEDURE FOR ISSUANCE OF LETTERS OF CREDIT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  39
      5.5  PAYMENT OF AMOUNTS DRAWN UNDER LETTERS OF CREDIT.  . . . . . . . . . . . . . . . . . . . . . . . . . .  40
      5.6  FEES.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  40
      5.7  OBLIGATIONS ABSOLUTE.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41
      5.8  INDEMNIFICATION; NATURE OF LENDERS' DUTIES.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41
      5.9  DEFAULT.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43

ARTICLE 6CLOSING CONDITIONS
      6.1  CLOSING CONDITIONS TO INITIAL AVAILABILITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  44
      6.2  GENERAL CONDITIONS FOR ACCOMMODATIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
      6.3  CONVERSIONS AND ROLLOVERS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
      6.4  DEEMED REPRESENTATION.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
      6.5  CONDITIONS SOLELY FOR THE BENEFIT OF THE LENDERS.  . . . . . . . . . . . . . . . . . . . . . . . . . .  46
      6.6  NO WAIVER  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
      6.7  FINAL DATE FOR INITIAL ACCOMMODATION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47

ARTICLE 7REPRESENTATIONS AND WARRANTIES
      7.1  EXISTENCE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
      7.2  CORPORATE AUTHORITY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
      7.3  AUTHORIZATION, GOVERNMENTAL APPROVALS, ETC.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
      7.4  ENFORCEABILITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
      7.5  NO BREACH  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
      7.6  LITIGATION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
      7.7  SUBSIDIARIES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
      7.8  COMPLIANCE   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.9  NO DEFAULT   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.10 MATERIAL CONTRACTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.11 PERMITS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.12 OWNERSHIP OF ASSETS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.13 TAX RETURNS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.14 FINANCIAL STATEMENTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
      7.15 EXPROPRIATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50
      7.16 MAE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50
      7.17 CERTAIN FINANCIAL ASSISTANCE   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50
      7.18 DISCLOSURE   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50

ARTICLE 8SECURITY
      8.1  SECURITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50
      8.4  MATERIAL REAL PROPERTY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
      8.5  CONTINUED PERFECTION OF SECURITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
      8.6  ESSENTIAL ASSETS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
</TABLE>
<PAGE>   4

<TABLE>
<S>                                                                                                                <C>
ARTICLE 9INSURANCE
      9.1  INSURANCE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
      9.2  POLICIES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
      9.4  PAYMENT OF PREMIUMS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  53

ARTICLE 10COVENANTS
      10.1     AFFIRMATIVE COVENANTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  53
      10.2     NEGATIVE COVENANTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  58
      10.3     ADMINISTRATIVE AGENT MAY PERFORM COVENANTS   . . . . . . . . . . . . . . . . . . . . . . . . . . .  61

ARTICLE 11CHANGES IN CIRCUMSTANCES
      11.1     ILLEGALITY.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  62
      11.2     CIRCUMSTANCES REQUIRING DIFFERENT PRICING.   . . . . . . . . . . . . . . . . . . . . . . . . . . .  62
      11.3     IBID   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  62
      11.4     INCREASED COSTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  63
      11.5     INDEMNIFICATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  64
      11.6     TAXES, COSTS, ETC.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  65

ARTICLE 12EVENTS OF DEFAULT
      12.1     EVENTS OF DEFAULT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  66
      12.2     EFFECT.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  69
      12.3     RIGHT OF SET-OFF   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  69
      12.4     CURRENCY CONVERSION AFTER ACCELERATION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  70

ARTICLE 13THE ADMINISTRATIVE AGENT AND THE LENDERS
      13.1     AUTHORIZATION AND ACTION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  70
      13.2     DUTIES AND OBLIGATIONS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  70
      13.3     ADMINISTRATIVE AGENT AND AFFILIATES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72
      13.4     LENDER CREDIT DECISION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72
      13.5     INDEMNIFICATIONS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72
      13.7     SUB-AGENT OR CO-AGENT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  73
      13.8     ASSIGNMENT OF SECURITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  74

ARTICLE 14MISCELLANEOUS
      14.1     SHARING OF PAYMENTS; RECORDS.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  74
      14.2     AMENDMENTS, ETC.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  75
      14.3     NOTICES, ETC.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  75
      14.4     NO WAIVER; REMEDIES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  77
      14.5     EXPENSES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  78
      14.6     JUDGMENT CURRENCY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  79
      14.7     GOVERNING LAW  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  79
      14.8     SUCCESSORS AND ASSIGNS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  80
      14.9     CONFLICT   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  81
      14.10    CONFIDENTIALITY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  81
      14.11    SEVERABILITY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  82
</TABLE>
<PAGE>   5

<TABLE>
      <S>      <C>                                                                                                 <C>
      14.12    PRIOR UNDERSTANDINGS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  82
      14.13    TIME OF ESSENCE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  82
      14.14    COUNTERPARTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  83
</TABLE>
<PAGE>   6

                                   SCHEDULES

         1       Lenders and Commitments
         2       Accommodation Request
         3       Power of Attorney
         4       Subsidiaries, etc.
         5       Applicable Margins
         6       Reduction Request
<PAGE>   7

THIS AGREEMENT is dated for reference March 31, 2000

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 herein.

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:
<PAGE>   8
                                     - 2 -

                                   ARTICLE 1
                                 INTERPRETATION

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

     (1)   "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 pursuant to an Accommodation Request;

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

           (d) 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.

     (2)   "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.

     (3)   "ADMINISTRATIVE AGENT" means Royal Bank and any successor
           administrative agent appointed in accordance with Article 13.

     (4)   "ADVANCE" means an advance of monies 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 (a "US DOLLAR
           ADVANCE") or Cdn. Dollars (a "CANADIAN DOLLAR ADVANCE").  A Canadian
           Dollar Advance shall be designated a "PRIME RATE ADVANCE" and a US
           Dollar Advance shall be designated from time to time, as requested
           or deemed to have been requested by the Borrower, a "LIBOR ADVANCE"
           or a "BASE RATE ADVANCE". Each of a Prime Rate Advance, a LIBOR
           Advance and a Base Rate Advance is a "TYPE" of Advance.

     (5)   "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
<PAGE>   9
                                     - 3 -

           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.

     (6)   "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.

     (7)   "ASSET DISPOSITION" means any sale, lease, transfer or other
           disposition (or series of related sales, leases, transfers or
           dispositions) of property or other assets (each referred to for the
           purposes of this definition as a "DISPOSITION") by or on behalf of
           an MDA Party (including any disposition by means of a merger,
           consolidation or similar transaction, but for greater certainty
           excluding a writedown of goodwill).

     (8)   "ASSIGNEE" shall have the meaning ascribed thereto in section
           14.8(3)(b).

     (9)   "BANKERS' ACCEPTANCE" means a depository bill, as defined by the
           Depository Bills and Notes Act (Canada) 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.

     (10)  "BASE RATE" means, at any time, the greater of:

           (a) the rate of interest per annum established and reported by Royal
               Bank from time to time as the reference rate of interest it
               charges to customers for US Dollar loans made by it in Canada;
               and

           (b) the sum of (i) the Federal Funds Effective Rate multiplied by
               365 (or 366) and divided by 360, plus (ii) 50 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 there shall be a corresponding change in the rate of interest
           payable under this agreement, should such changed rate exceed that
           set forth in paragraph (b) of this definition, all without the
           necessity of any notice thereof to the Borrower or any other person.

     (11)  "BENEFICIARY" means, in respect of any Letter of Credit, the
           beneficiary specified therein.

     (12)  "BILATERAL L/C"means a letter of credit or letter of guarantee
           issued by a Lender at the request and upon the indemnity of the
           Borrower or a subsidiary otherwise than under this agreement and
           only after the Borrower has consulted with the
<PAGE>   10
                                     - 4 -

           Administrative Agent about the feasibility of issuing such letter of
           credit or letter of guarantee under one of the Credit Facilities,
           together with all indemnities, applications and reimbursement
           agreements in connection therewith.

     (13)  "BORROWER" means MacDonald, Dettwiler and Associates Ltd.

     (14)  "BORROWER ACCOUNT" means such account of the Borrower with Royal
           Bank in Vancouver as shall from time to time be agreed by the
           Borrower and the Administrative Agent.

     (15)  "BORROWING" means a borrowing consisting of the making of one or
           more Advances.  Prime Rate Advances, LIBOR Advances and Base Rate
           Advances are each a "TYPE" of Borrowing.

     (16)  "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 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 US Dollar deposits in the
               London Eurodollar 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.

     (17)  "CANADIAN DOLLARS", "CDN. DOLLARS", "CDN. $" and "$" each mean
           lawful money of Canada.

     (18)  "CDN. GAAP" means, in relation to any person at any time, accounting
           principles generally accepted in Canada as recommended in the
           Handbook of the Canadian Institute of Chartered Accountants as in
           effect on the date hereof, 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).
<PAGE>   11
                                     - 5 -

     (19)  "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 of a year of
           365 days) applicable to Canadian Dollar bankers' acceptances having,
           where applicable, identical issue and comparable maturity dates as
           the Bankers' Acceptances proposed to be issued by the Borrower
           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 day) applicable to those Canadian Dollar
           bankers' acceptances in a comparable amount to the Bankers'
           Acceptance proposed to be issued by the Borrower 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.  Each determination of the CDOR Rate shall be
           conclusive and binding, absent manifest error, and may be computed
           using any reasonable averaging and attribution method.

     (20)  "CLOSING DATE" means the date upon which the initial Accommodation
           shall be available hereunder following satisfaction of all
           conditions herein set forth.

     (21)  "COLLATERAL" means the present and future assets and properties of
           the MDA Parties from time to time subject to, or intended by the
           terms of the Security to be subject to, the Liens of the Security.

     (22)  "COMMITMENT" means, for a Lender, the amount set forth opposite such
           Lender's name under the heading "Commitment" on schedule 1 annexed
           hereto, to the extent not permanently reduced, cancelled or
           terminated pursuant to this agreement, and which Commitment shall be
           allocated among the Credit Facilities pro rata on the basis of the
           maximum amounts of the Credit Facilities set forth in section
           2.1(1).

     (23)  "CONSOLIDATED DEBT" means, at the end of a Financial Quarter and as
           determined in accordance with Cdn. GAAP on a consolidated basis (but
           excluding all Non-Recourse Subsidiaries and Special Subsidiaries)
           for the Borrower, all Debt but specifically excluding: (a) any Debt
           to the extent guaranteed by EDC, EFIC, or secured by cash or
           equivalent; (b) until such time as the conditions precedent to draw
           thereunder have been satisfied, the non-EDC-Insured portion of the
           letter of credit dated April 7, 1999 issued by Royal Bank in favour
           of CSA in the initial Face Amount of $15,605,985.36 and having a
           maximum possible Face Amount of $50 million; and (c) Subordinated
           Debt.

     (24)  "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,
<PAGE>   12
                                     - 6 -

           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.

     (25)  "CONVERSION" means, in respect of any Bankers' Acceptance or type of
           Advance, the conversion of the currency and/or method for
           calculating interest or fees thereon from one currency and/or method
           to another, and includes a conversion to a Bankers' Acceptance from
           a type of Advance and vice-versa.

     (26)  "CREDIT FACILITIES" means the RTC Facility, the LC Facility and the
           Term Facility, and each of such facilities is a "CREDIT FACILITY".

     (27)  "CREDIT FACILITY DOCUMENTS" means this agreement, the Security,
           Bankers' Acceptances and all other documents necessary to implement
           the financing comprised in the Credit Facilities.

     (28)  "CSA" means the Canadian Space Agency.

     (29)  "DEBENTURE" means a demand debenture made by an MDA Party in favour
           of the Administrative Agent granting a first-priority (subject only
           to Permitted Encumbrances) 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.

     (30)  "DEBT" of any person means (without duplication, all as calculated
           in accordance with Cdn. GAAP, and whether with or without recourse):

           (a) all indebtedness of such person for borrowed money, including
               obligations with respect to bankers' acceptances and IRRMs;

           (b) all indebtedness of such person for contingent reimbursement
               obligations with respect to IRRMs, letters of credit and letters
               of guarantee;

           (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, and (ii) commercially reasonable payment
               terms intended to reflect the commercial interests of
               contracting parties as opposed to the granting of credit, each
               as incurred in the ordinary course of business, net of
               prepayments for the foregoing;

           (d) all indebtedness created or arising under any Purchase Money
               Mortgages (even though 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);
<PAGE>   13
                                     - 7 -

           (e) all obligations under Financial Leases in respect of which such
               person is liable as lessee;

           (f) (unless such person is a direct or indirect wholly-owned
               subsidiary of the Borrower) the amount for which any shares in
               the capital of any such person that is a corporation may be
               redeemed if the holders of such shares are entitled at such time
               to require such person to redeem such shares, or if such person
               is otherwise obligated at such time to redeem such shares, in
               each case whether on notice or otherwise; and

           (g) 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, 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.

     (31)  "DEFAULT" means an event which, with the giving of notice or passage
           of time, or both, would constitute an Event of Default.

     (32)  "DESIGNATED SUBSIDIARY" means each of Access BC Information Services
           Ltd., MacDonald Dettwiler Space and Advanced Robotics Ltd.,
           MacDonald Dettwiler Information Services Ltd. and Radarsat
           International Inc. and each other wholly-owned subsidiary of the
           Borrower that may from time to time be designated as a Designated
           Subsidiary in accordance with section 8.2.

     (33)  "DISCOUNT PROCEEDS" means, in respect of Bankers' Acceptances to be
           purchased by a Lender, the difference between (i) 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 1 by the sum of one plus the product of (x) the applicable
           Discount Rate multiplied by (y) a fraction, the numerator of which
           is the number of days in the term of maturity of such Bankers'
           Acceptances and the denominator of which is 365; and (ii) the
           applicable fees to be paid to such Lender under section 4.6.

     (34)  "DISCOUNT RATE" means:
<PAGE>   14
                                     - 8 -

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

           (b) with respect to an issue of Bankers' Acceptances accepted by a
               Lender that is a bank under Schedule II to the Bank Act
               (Canada), the lesser of:

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

               (ii)   the annual rate, expressed as a percentage, determined by
                      the Administrative Agent 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.

     (35)  "DRAWING" means the creation or making of one or more Bankers'
           Acceptances  pursuant to an Accommodation Request.

     (36)  "DRAWING DATE" means any Business Day fixed in accordance with the
           provisions of this agreement for a Drawing.

     (37)  "EBITDA" means, for the Borrower on a consolidated basis (but
           excluding all Non-Recourse Subsidiaries and Special Subsidiaries and
           all extraordinary items) in respect of any period and as determined
           in accordance with Cdn.  GAAP, the sum (without duplication) of (a)
           net income for such period and each of the following to the extent
           deducted in determining net income: (b) income taxes, (c) Interest
           Expense, (d) amortization and depreciation, (e) one-time soft costs
           incurred as acquisition-related start up costs and
           internally-generated infrastructure development costs for new
           start-up businesses (to a maximum for all such soft costs and
           development costs of $5 million per Financial Year), and (f) cash
           dividends received from Non-Recourse Subsidiaries and Special
           Subsidiaries; provided that, in respect of an acquisition, EBITDA
           shall include the foregoing amounts for such period for the person
           being acquired, if applicable, calculated on the same basis, in each
           case adjusted for acquisitions or dispositions in such period.

     (38)  "EDC" means the Export Development Corporation.
<PAGE>   15
                                     - 9 -

     (39)  "EDC-INSURED" means, when used in reference to a Letter of Credit,
           that the issuer of such Letter of Credit has been insured against
           loss under a performance security  guarantee given by EDC.

     (40)  "EFIC" means Export Finance Insurance Corporation.
     (41)  "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
           and occupational health and safety.

     (42)  "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
           hereof in the book value of any asset owned by the Borrower or a
           consolidated subsidiary, and (b) the portion of such consolidated
           shareholders' equity attributable to any interest or investment in
           or Debt owed to it by Non-Recourse Subsidiaries or Special
           Subsidiaries.

     (43)  "EQUIVALENT AMOUNT" means, on a particular date in respect of an
           amount expressed in US Dollars, the equivalent amount in Cdn.
           Dollars determined by reference to the Bank of Canada noon rate at
           which Cdn. Dollars may be exchanged into US Dollars as published on
           the Reuters Screen page BOFC.  In the event that such rate does not
           appear on such Reuters page, such rate shall be ascertained by
           reference to any other means (as selected by the Administrative
           Agent) by which such rate is quoted or published from time to time
           by the Bank of Canada; provided that, if at the time of any such
           determination, for any reason, no such exchange rate is being quoted
           or published, the Administrative Agent may use such reasonable
           method as it considers appropriate to ascertain such rate, and the
           resulting determination shall be conclusive absent manifest error.

     (44)  "EVENT OF DEFAULT" means any of the events specified in section
           12.1.

     (45)  "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.

     (46)  "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, an interest rate
           per annum equal to the weighted average (rounded upwards if
           necessary to the next
<PAGE>   16
                                     - 10 -

           1/100 of 1%) of the rates on overnight Federal funds transactions
           with members of the United States Federal Reserve System arranged by
           Federal funds brokers on such day, as published for such day (or, if
           such day is not a Business Day, for the immediately preceding
           Business Day) by the Federal Reserve Bank of New York or, if such
           rate is not so published for any day which is a Business Day, the
           average (rounded upwards if necessary to the next 1/100 of 1%) of
           the quotations at approximately 11:00 a.m. (New York time) for such
           day for such transactions received by the Administrative Agent from
           three Federal funds brokers of recognized standing selected by the
           Administrative Agent in its sole discretion.
     (47)  "FINAL MATURITY DATE" means:

           (a) in respect of the RTC Facility, the second anniversary of the
               last day of the Revolving Period;

           (b) in respect of the LC Facility, the earlier to occur of (i)
               August 31, 2001, and (ii) "SATELLITE ACCEPTANCE" (as defined in
               the Radarsat Contract); and

           (c) in respect of the Term Facility, March 31, 2005.

     (48)  "FINANCIAL LEASE" means at any time any lease of property, real or
           personal, moveable or immoveable (whether or not such lease is
           intended as security), in respect of which the present value of the
           minimum rental commitment would, in accordance with Cdn. GAAP, be
           capitalized on a balance sheet of the lessee.

     (49)  "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.

     (50)  "FINANCIAL YEAR" means a financial year commencing on January 1 of
           each calendar year and ending on December 31 of such year.

     (51)  "FRONTING LENDER" means Royal Bank acting through its Lending
           Branch.

     (52)  "GSA" means a general security agreement made by an MDA Party in
           favour of the Administrative Agent granting to the Administrative
           Agent a first priority (subject only to Permitted Encumbrances)
           security interest over all of its existing and after-acquired
           personal property of every nature and kind whatsoever.

     (53)  "GUARANTEE" means an unconditional and irrevocable guarantee of the
           Obligations made by a Designated Subsidiary in favour of the
           Administrative Agent.

     (54)  "HAZARDOUS MATERIALS" means:
<PAGE>   17
                                     - 11 -

           (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, including the Canadian
               Environmental Protection Act (Canada), Fisheries Act (Canada),
               Transportation of Dangerous Goods Act (Canada), Canada Water Act
               and the Waste Management Act (British Columbia); 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.

     (55)  "INCREASED COSTS" means any amounts payable by the Borrower to the
           Administrative Agent or a Lender under any of sections 3.2(3), 5.8
           and 10.1(12), Article 11 and section 14.5.

     (56)  "INTEREST EXPENSE" means, without duplication, in respect of any
           period and as determined on a consolidated basis (but excluding all
           Non-Recourse Subsidiaries and Special Subsidiaries) for the Borrower
           in accordance with Cdn. GAAP, the sum of (a) capitalized 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 income statement of the Borrower for such
           period, including accrued and unpaid interest charges, the interest
           component of Financial Leases, and discounts and fees payable in
           respect of bankers acceptances and letters of credit, and (c)
           payments made
<PAGE>   18
                                     - 12 -

           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 synthetic lease, lease and leaseback, sale and leaseback or
           similar transaction, less (d) interest income, and (e) any interest
           on Subordinated Debt that is paid or satisfied by the issue of
           equity securities or from the proceeds of further Subordinated Debt.

     (57)  "INTEREST PERIOD" means, for each 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 converted to a LIBOR
           Advance, the initial Interest Period for such LIBOR Advance shall
           commence on the date of such Conversion.  The duration of each
           Interest Period for a 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
           Lenders may agree.  No Interest Period may be selected which would
           end on a day after the Final Maturity Date for a Credit Facility 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.

     (58)  "IRRM" means any interest rate or foreign exchange risk management
           agreement or product, including:

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

               (b)    futures contracts;

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

               (d)    any other agreements to fix or hedge interest rates or
                      foreign exchange rates.
<PAGE>   19
                                     - 13 -

     (59)  "ISSUANCE" means the issuance of one or more Letters of Credit made
           pursuant to an Issue Notice.

     (60)  "ISSUE DATE" means any Business Day fixed in accordance with the
           provisions of this agreement for an Issuance.

     (61)  "ISSUE NOTICE" means a notice of request for an Issuance in the form
           of the Lenders' respective customary letter of credit application,
           as defined in section 5.2(1).

     (62)  "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.

     (63)  "LC FACILITY" means the non-revolving Credit Facility to be made
           available to the Borrower by the Lenders by way of Letters of
           Credit.

     (64)  "LENDERS" means those financial institutions whose names are set
           forth on the execution pages hereof under the heading "Lenders", and
           their respective successors and assigns.

     (65)  "LENDERS' COUNSEL" means Messrs.  Fasken Martineau DuMoulin LLP
           (Vancouver) 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).

     (66)  "LENDING BRANCH" means, in respect of a particular Lender, the
           branch whose address is set forth in schedule 1 annexed hereto, or
           such other branch as such Lender may designate from time to time by
           notice given to the Administrative Agent and the Borrower.

     (67)  "LETTER OF CREDIT" means a standby letter of credit or a letter of
           guarantee for a specified amount in Canadian Dollars or US Dollars
           issued by a Lender at the request and upon the indemnity of the
           Borrower pursuant to Article 5.  Letters of Credit for specified
           amounts in Canadian Dollars and Letters of Credit for specified
           amounts in US Dollars are each a "TYPE" of Letter of Credit.

     (68)  "LIBOR", with respect to any Interest Period, means:

               (a)    the rate of interest (expressed as an annual rate)
                      determined by the Administrative Agent to be the
                      arithmetic mean (rounded up to the nearest 1/16%) of the
                      offered rates for deposits in US Dollars for a period
                      equal to the particular Interest Period, which rates
                      appear on (A) the Reuters screen LIBOR 01 page, or (B) if
                      such Reuters screen LIBOR 01 page is not readily
                      available to the Administrative Agent, Page 3750 of the
                      Telerate screen, in either case as of 11:00 a.m. London
                      time on the second Business Day before the first day of
                      that Interest Period;
<PAGE>   20
                                     - 14 -

               (b)    if neither the Reuters screen LIBOR 01 page nor Page 3750
                      of Telerate is readily available to the Administrative
                      Agent for any reason, the rate of interest (rounded up to
                      the nearest 1/16%) at which Royal Bank would be prepared
                      to offer leading banks in the London interbank market a
                      deposit in US Dollars for a term coextensive with that
                      Interest Period in an amount substantially equal to the
                      relevant LIBOR Advance at or about 10:00 a.m. (Toronto
                      time) on the second Business Day before the first day of
                      such Interest Period.

     (69)  "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
           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.

     (70)  "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; (b) any material impairment or
           reduction in the ability (financial or otherwise) of an MDA Party to
           fulfil any covenant or obligation of such MDA Party to the Lenders;
           or (c) any material impairment of the remedies of the secured
           parties under the Security.

     (71)  "MAJORITY LENDERS" means, at any time, Lenders whose respective
           individual Commitments aggregate at least 66-2/3% of the total
           Commitments of all Lenders under all Credit Facilities at such time.

     (72)  "MDA PARTY" means any of the Borrower and a Designated Subsidiary,
           and "MDA PARTIES" means, collectively, the Borrower and all
           Designated Subsidiaries.

     (73)  "NON-RECOURSE DEBT" means Debt or that portion thereof:

               (a)    as to which no MDA Party (i) provides credit support or
                      financial assistance of any nature whatsoever (including
                      without limitation 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 without
                      limitation 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
<PAGE>   21
                                     - 15 -

                      on such other Debt or cause a payment thereof to be
                      accelerated or payable prior to its stated maturity.

     (74)  "NON-RECOURSE SUBSIDIARY" means a subsidiary of the Borrower which
           does not own any properties or assets other than those acquired
           after the Closing Date, and which does not have outstanding any Debt
           other than Non-Recourse Debt and Debt to an MDA Party as permitted
           hereunder.

     (75)  "NON-REVOLVING PERIOD" means, with respect to the RTC Facility, the
           period commencing on the first day immediately following the last
           day of the Revolving Period and ending on the second anniversary of
           such last day.

     (76)  "NOTICE" means an Accommodation Request or an Issue Notice.

     (77)  "OBLIGATIONS" means, at any time the amount (calculated and
           expressed in Cdn. Dollars, with each US Dollar obligation converted
           for purposes of such calculation into the Equivalent Amount in Cdn.
           Dollars) equal to the sum of:

               (a)    the Principal Outstanding under the Credit Facilities;

               (b)    all accrued and unpaid interest thereon and all interest
                      on accrued and unpaid interest; and

               (c)    all accrued and unpaid fees, expenses, costs,
                      indemnities, Increased Costs and other amounts payable to
                      the Lenders or the Administrative Agent.

     (78)  "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.

     (79)  "PARTICIPANT" shall have the meaning ascribed thereto in section
           14.8(3)(a).

     (80)  "PAYMENT ACCOUNT" means:

               (a)    for U.S. Dollars - Chase Manhattan Bank, New York, Swift
                      Address:  ROYCCAT2, account number 00002-408-919-9, RBC
                      Loan Syndications, Toronto, Ontario; or

               (b)    for Cdn. Dollars - Royal Bank of Canada, Toronto, Swift
                      Address: ROYCCAT2, account number 00002-266-760-8, RBC
                      Loan Syndications, Toronto, Ontario;
<PAGE>   22
                                     - 16 -

           in each case Reference:  "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.

     (81)  "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.

     (82)  "PERMITTED ENCUMBRANCES" 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 in respect of
                      which contested Liens the Lenders are of the opinion that
                      such Liens would not have an MAE;

               (b)    the Lien of any judgment rendered or claim filed against
                      such person which such person shall be contesting in good
                      faith by proper legal proceedings, and in respect of
                      which the Lenders are of the opinion that such Lien would
                      not 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 in respect of which
                      contested Liens or privileges the Lenders are of the
                      opinion that such Liens or privileges would not 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 rights of way and servitudes for railways,
                      sewers, drains, gas and oil 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
<PAGE>   23
                                     - 17 -

                      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 deposit of cash or
                      securities 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, or in
                      connection with contracts, tenders, leases or
                      expropriation proceedings, or to secure workmen's
                      compensation, surety or appeal bonds, costs of litigation
                      when required by Law and public and statutory
                      obligations, and any right or refund, set-off or
                      charge-back available to any bank or the financial
                      institution;

               (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;

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

               (j)    title defects or irregularities 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)    Financial Leases and Purchase Money Mortgages securing or
                      evidencing obligations not in excess of $10 million (or
                      the equivalent amount in other currencies) in the
                      aggregate at any time;

               (l)    cash collateral granted by the Borrower to ABN AMRO Bank
                      Canada up to $1.75 million to secure a letter of credit
                      issued by ABN AMRO Bank Canada;

               (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, on terms and conditions satisfactory to
                      the Lenders, acting reasonably, and including without
                      limitation the Liens granted by Access BC Information
                      Services Ltd. to Her Majesty the Queen in Right of
<PAGE>   24
                                     - 18 -

                      the Province of British Columbia under the security
                      agreement dated for reference April 8, 1999;

               (n)    the Liens of the Security;

               (o)    Liens on property or shares 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; and

               (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.

     (83)  "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.

     (84)  "POWER OF ATTORNEY" means a power of attorney substantially in the
           form of schedule 3 annexed hereto.

     (85)  "PRIME RATE"  means, at any time, the greater of:

               (a)    the rate of interest per annum established 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; 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;
<PAGE>   25
                                     - 19 -

           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 there shall be a corresponding change in any rate of interest
           payable under this agreement based on the Prime Rate should such
           changed rate exceed that set forth in paragraph (b) of this
           definition, all without the necessity of any notice thereof to the
           Borrower or any other person.

     (86)  "PRINCIPAL OUTSTANDING" means, at any time, the amount (calculated
           and expressed in Cdn. Dollars, with each US Dollar obligation
           converted for purposes of such calculation into the Equivalent
           Amount in Cdn. Dollars) equal to:

               (a)    when used in a context pertaining to Accommodations made
                      by a single Lender under any one or more of the Credit
                      Facilities, the sum of:

                      (i)  the aggregate principal amount of all Advances then
                           outstanding made by such Lender under such Credit
                           Facility or Credit Facilities (including such
                           Lender's portion of Swingline Advances made under
                           section 2.1(6)); and

                      (ii) the Face Amount of all Accommodations then
                           outstanding made by such Lender under such Credit
                           Facility or Credit Facilities by way of Bankers'
                           Acceptances (whether or not held by such Lender) and
                           Letters of Credit (including such Lender's pro rata
                           interest in Letters of Credit issued by the Fronting
                           Lender); and

               (b)    when used elsewhere in this agreement with reference to
                      any one or more of the Credit Facilities, the sum of:

                      (i)  the aggregate principal amount of all Advances then
                           outstanding made by the Lenders under such Credit
                           Facility or Credit Facilities; and

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

     (87)  "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
<PAGE>   26
                                     - 20 -

           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.

     (88)  "RADARSAT CONTRACT" means the agreement dated December, 1998
           entitled "RADARSAT-2 MASTER AGREEMENT" between the Borrower and CSA.

     (89)  "RECEIVER" includes a receiver, receiver/manager and receiver and
           manager.

     (90)  "REFERENCE LENDERS" means such Lenders as shall be designated for
           such purpose by the Borrower and the Administrative Agent.

     (91)  "RELEASE" includes releasing, spilling, leaking, pumping, pouring,
           emitting, emptying, discharging, injecting, escaping, leaching,
           disposing or dumping, or permitting any of the foregoing to occur.

     (92)  "REVOLVING PERIOD" means, with respect to the RTC Facility, the
           period commencing on and including the Closing Date and ending on
           and including the day that is 364 days after the Closing Date,
           subject to extension in accordance with section 2.1(7).

     (93)  "ROLLOVER" means, in respect of a 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.

     (94)  "ROYAL BANK" means Royal Bank of Canada, a Canadian chartered bank.
     (95)  "RTC FACILITY" means the revolving (during the Revolving Period) and
           non-revolving (during the Non-Revolving Period) Credit Facility to
           be made available to the Borrower by the Lenders by way of Advances,
           Bankers' Acceptances and Letters of Credit.
<PAGE>   27
                                     - 21 -

     (96)   "SECURITY" means all items of security given to the Administrative
            Agent or any of the Lenders at any time and from time to time to
            secure the obligations of any MDA Party hereunder or under any
            other Credit Facility Document to which it is a party, including
            the security set forth in Article 8.

     (97)   "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 comtroller, the secretary, the treasurer or such other
            officer as the Administrative Agent may agree to.

     (98)   "SPECIAL SUBSIDIARY" means a subsidiary of the Borrower that is
            neither a Non-Recourse Subsidiary nor a wholly-owned subsidiary.

     (99)   "SUBORDINATED DEBT" means Debt which is provided to an MDA Party
            and is junior in right of payment of principal to the Obligations
            and the security for which is subordinated to the Lien of the
            Security, all in accordance with a subordination agreement on terms
            and conditions satisfactory to the Lenders, acting reasonably; for
            greater certainty, such subordination agreement shall contain
            restrictions on the ability of the subordinated creditor to
            accelerate the subordinated obligations (save as may be necessary
            to preserve or prove claims in bankruptcy or insolvency
            proceedings), to initiate bankruptcy or insolvency proceedings and
            to enforce security.

     (100)  "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.

     (101)  "SWINGLINE ADVANCE" has the meaning set forth in section 2.1(6).

     (102)  "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.

     (103)  "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 (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
<PAGE>   28
                                     - 22 -

            and any penalties and payments of principal, interest, charges,
            fees or other amounts made on or in respect thereof, and excluding
            non-resident withholding taxes), and "TAX" and "TAXATION" shall be
            construed accordingly.

     (104)  "TERM FACILITY" means the non-revolving Credit Facility to be made
            available to the Borrower by the Lenders by way of Advances and
            Bankers' Acceptances.

     (105)  "THIS AGREEMENT", "HEREIN", "HEREOF", "HERETO" and "HEREUNDER" and
            similar expressions mean and refer to this agreement as
            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.

     (106)  "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.

     (107)  "WHOLLY-OWNED SUBSIDIARY"means a subsidiary of the Borrower owned
            (a) as to 100% directly or indirectly by the Borrower, or (b) as to
            at least 85% directly or indirectly by the Borrower and as to no
            more than 15% by directors, officers or employees of the Borrower
            or its subsidiaries.

     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.  All accounting terms not specifically defined
            herein shall be construed, and resulting calculations and
            determinations made, in accordance with Cdn. GAAP.

     1.4    INCORPORATION OF SCHEDULES.  Schedules 1 to 6 annexed hereto shall,
            for all purposes hereof, form an integral part of this agreement.
<PAGE>   29
                                     - 23 -

     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:

            (1) 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;

            (2) 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

            (3) 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.

     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.
<PAGE>   30
                                     - 24 -

                                   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 RTC Facility, to be made available to the Borrower by
                     the Lenders on a revolving basis during the Revolving
                     Period and on a non-revolving basis during the
                     Non-Revolving Period, in the principal amount of up to but
                     not exceeding $110 million (or the Equivalent Amount in US
                     Dollars);

                (b)  the LC Facility, to be made available to the Borrower by
                     the Lenders on a non-revolving basis in the aggregate
                     Face Amount of up to but not exceeding $50 million; and

                (c)  the Term Facility, to be made available to the Borrower by
                     the Lenders on a non-revolving basis in the principal
                     amount of up to but not exceeding $30 million.

                Subject to the terms and conditions herein set forth, each
                Lender shall make Accommodations available under each of the
                RTC Facility, the LC Facility and the Term Facility pro rata on
                the basis of their respective Commitments  as set forth in
                schedule 1 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 Principal
                Outstanding of that Lender's Accommodations under all Credit
                Facilities would exceed that Lender's Commitment.

                Each Lender shall make Accommodations available to the Borrower
                through its relevant Lending Branch.

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

                (a)  in the case of the RTC Facility, for general corporate
                     purposes, including without limitation for acquisitions;

                (b)  in the case of the LC Facility, for the Issuance of
                     Letters of Credit in favour of CSA with respect to the
                     construction of Radarsat II; and
<PAGE>   31
                                     - 25 -

                (c)  in the case of the Term Facility, for general corporate
                     purposes, including without limitation for acquisitions
                     and to refinance Debt incurred in connection with past
                     acquisitions.

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

                     RTC FACILITY

                     Prime Rate Advances
                     Base Rate Advances
                     LIBOR Advances
                     Bankers' Acceptances
                     Letters of Credit (in both Cdn. Dollars and US Dollars)
                     LC FACILITY

                     Letters of Credit (in Cdn. Dollars only)

                     TERM FACILITY

                     Prime Rate Advances
                     Base Rate Advances
                     LIBOR Advances
                     Bankers' Acceptances

                provided that:

                (a)  the aggregate Face Amount of EDC-Insured Letters of Credit
                     issued under the RTC Facility shall not at any time exceed
                     $25 million (or the Equivalent Amount in US Dollars); not
                     later than ten days before the end of each Financial
                     Quarter, the Borrower shall designate in writing to the
                     Administrative Agent the amount, up to $25 million, that
                     will be available by way of EDC-Insured Letters of Credit
                     under the RTC Facility; provided that, if the Borrower
                     shall fail to give such notice, the availability by way of
                     EDC-Insured Letters of Credit will be deemed to be $25
                     million.

                (b)  Letters of Credit shall be available under the LC Facility
                     in two tranches, namely (1) EDC-Insured Letters of Credit
                     up to an aggregate Face Amount at any time not exceeding
                     $25 million, and (2) other Letters of Credit up to an
                     aggregate Face Amount at any time not exceeding $25
                     million and at all times
<PAGE>   32
                                     - 26 -

                     accommodations under the LC Facility shall be apportioned
                     equally between EDC-Insured Letters of Credit and other
                     Letters of Credit; and

                (c)  Advances may be made by the Administrative Agent on a
                     temporary basis in accordance with section 2.1(6).

            (4) Minimum Amounts.  Subject to the Majority Lenders 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
                     $100,000 or a whole multiple thereof;

                (b)  the aggregate of the Face Amount of Bankers' Acceptances
                     requested in a Drawing shall be at least $5 million and a
                     whole multiple of $1 million;

                (c)  the aggregate of the Prime Rate Advances requested in a
                     Borrowing shall be at least $5 million; and

                (d)  the aggregate of the Base Rate Advances and LIBOR Advances
                     requested shall be at least US$5 million (and, in the case
                     of LIBOR Advances, whole multiples of US$1 million).

            (5) Revolving Repayments.  Each of the LC Facility, the RTC
                Facility (during the Non-Revolving Period) and 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).  During the
                Revolving Period, the RTC 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 RTC
                Facility in accordance with its revolving nature during the
                Revolving Period shall be made on one Business Day's notice for
                Prime Rate Advances and Base Rate Advances, and three Business
                Days' notice for LIBOR Advances.

                Any portion of the Commitments of the Lenders allocated to the
                Term Facility not made the subject of an Accommodation on or
                before December 31, 2000 shall be cancelled as at such date.

            (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
<PAGE>   33
                                     - 27 -

                a minimum amount of $1 million and multiples of $100,000 (or in
                each case the Equivalent Amount in US Dollars) up to $10
                million (or the Equivalent Amount in US 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") from the
                Administrative Agent alone on a same day basis if the request
                is received by the Administrative Agent before 11:00 a.m.
                (Toronto time).  Each Swingline Advance shall be deemed to
                constitute a utilization of the RTC Facility from each Lender
                pro rata on the basis of their respective Commitments (and the
                risk of each Swingline Advance, and payments on account
                thereof, shall be allocated and shared among the Lenders in
                accordance with section 14.1) and may not be outstanding more
                than five Business Days.  The Borrower shall, on or before the
                fifth 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, failing
                which the Borrower shall be deemed to have delivered to the
                Administrative Agent at the close of business in Vancouver on
                such fifth Business Day an Accommodation Request requesting a
                Prime Rate Advance or a Base Rate Advance (as the case may
                be)in the amount of such Swingline Advance.  The proceeds of
                the funding by the other Lenders under such Accommodation
                Request shall be applied by the Administrative Agent to repay
                the Administrative Agent that portion of the Swingline Advance
                that does not represent its pro rata share thereof.

            (7) Extensions.  On an annual basis, the Borrower may request an
                extension of the 364 day Revolving Period for an additional 364
                days, by giving notice to the Administrative Agent for delivery
                to each Lender not more than 90 and not less than 60 days prior
                to the end of the then current Revolving Period. No later than
                25 days prior to the end of the then current Revolving Period,
                each Lender shall notify the Agent of its election (which
                election may be made in its sole and absolute discretion) to
                extend or not extend the then applicable Revolving Period.
                Failure by a Lender to so notify the Administrative Agent shall
                be deemed to be an election by such Lender not to extend.
                Subject to the consent of the Majority Lenders, the
                Administrative Agent may extend the Revolving Period for an
                additional 364 day period, such extension applying only to
                those Lenders which provided their consent to the extension.
                In the case of any Lender not consenting (or being deemed not
                to consent) to an extension (a "NON-CONSENTING LENDER"), its
                Commitment allocated to the RTC Facility shall be reduced as at
                the end of the then current Revolving Period by an amount equal
                to the difference between such Commitment so allocated and the
                Principal Outstanding owed to it under the RTC Facility at such
                time.
<PAGE>   34
                                     - 28 -

                At its option, the Borrower may:

                (a)  as to the entire Commitment of the Non-Consenting Lender
                     or only its Commitment allocated to the RTC Facility,
                     replace such Non-Consenting Lender with one or more
                     Lenders or by a new Lender satisfactory to the Borrower
                     and the Administrative Agent; or

                (b)  prepay the Obligations owed to such Non-Consenting Lender
                     under the RTC Facility.

                If and to the extent that the portion of the Commitments of the
                Non-Consenting Lenders under the RTC Facility are not assumed
                or prepaid, the Principal Outstanding owed to each
                Non-Consenting Lender under the RTC Facility shall mature and
                be payable in full on the second anniversary of the last day of
                the then current Revolving Period.

2.2  REPAYMENT.

     (1)    RTC Facility Repayment.  The Principal Outstanding under the RTC
            Facility will be repaid in full on its Final Maturity Date.

     (2)    LC Facility Repayment.  The Principal Outstanding under the LC
            Facility will be repaid in full on its Final Maturity Date.

     (3)    Term Facility Repayment.  The Principal Outstanding under the Term
            Facility will be repaid in full on its Final Maturity Date.

     (4)    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.

     (5)    Foreign Exchange Fluctuations.  If at any time the Principal
            Outstanding under any Credit Facility, as calculated by the
            Administrative Agent as at the first day of a calendar month, shall
            exceed 105% of the relevant maximum amount set forth in section
            2.1(1) by virtue of a change in the Equivalent Amount in Cdn.
            Dollars of Accommodations made in US Dollars, the Borrower shall
            within five Business Days following demand therefor by the
            Administrative Agent at the Borrower's election either (a) pay to
            the Administrative Agent such amount as is required to reduce such
            Principal Outstanding to, or below, such relevant maximum amount,
            or (b) pay such excess amount  to the Administrative Agent,  to be
            held by the Administrative Agent as cash collateral security for
            the Obligations.
<PAGE>   35
                                     - 29 -

2.3  [INTENTIONALLY DELETED]

2.4  VOLUNTARY REDUCTIONS AND PREPAYMENTS.

     (1)    Reductions of 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 Lenders in respect of the a Credit Facility (pro
            rata among the Lenders on the basis of their respective
            Commitments) provided that each partial reduction shall be in an
            aggregate minimum amount of $5 million and multiples in excess
            thereof of $1 million.

     (2)    Prepayment of Credit Facilities.  In addition to repayments made
            under the RTC Facility during the Revolving Period in accordance
            with the revolving nature thereof under section 2.1(5), 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 a Credit Facility, which prepayment (subject to
            the Majority Lenders 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 such Principal Outstanding.

     (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).

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 or US Dollars)
            on the day (subject to section 2.5(2)) when due, in same day funds,
            by deposit of such funds to the Payment Account.

     (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
<PAGE>   36
                                     - 30 -

            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);

            (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 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.

     (4)    Pro Rata Basis.  All payments of principal, interest and fees
            herein set forth, 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 their respective
            Commitments.

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 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.

            All computations of fees 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
<PAGE>   37
                                     - 31 -

            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 or fees payable by
            the Borrower hereunder shall be conclusive and binding for all
            purposes, absent demonstrated error.

     (2)    Interest Act (Canada).  For purposes of disclosure pursuant to the
            Interest Act (Canada), the yearly rate of interest to which any
            rate of interest based on 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.

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

     (1)    in respect of each of the RTC Facility and the LC Facility, a
            facility fee (for the account of the Lenders pro rata on the basis
            of their respective Commitments) payable by the Borrower at the
            rate per annum equal to the applicable percentage set forth in the
            definition of Applicable Margin on the aggregate Commitments
            allocated to such Credit Facility; such fee shall be payable in
            Cdn. Dollars, calculated daily from the Closing Date to the
            applicable Final Maturity Date, and payable quarterly in arrears on
            the first day of each of January, April, July, and October and on
            such Final Maturity Date;

     (2)    in respect of the Term Facility, a standby fee (for the account of
            the Lenders pro rata on the basis of their respective Commitments)
            payable by the Borrower at the rate per annum equal to the
            applicable percentage set forth in the definition of Applicable
            Margin on the difference between the aggregate Commitments
            allocated to such Credit Facility and the Principal Outstanding
            thereunder; such fee shall be payable in Cdn.  Dollars, calculated
            daily from the Closing Date to December 31, 2000, and payable
            quarterly in arrears on each of July 1, 2000, October 1, 2000 and
            January 1, 2001; and

     (3)    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 Cdn. 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
<PAGE>   38
                                     - 32 -

     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 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 Lender and each 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 the Prime 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, the Borrower Account and all other
     bank accounts of the Borrower maintained with Royal Bank (for so long as
     Royal Bank is Administrative Agent hereunder) 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:

     (1)    allocate an Accommodation pro rata in accordance with sections 3.2,
            4.1(2) or 5.4 by reason of the occurrence of circumstances
            described in Article 11;

     (2)    allocate a Drawing among the 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); or

     (3)    allocate an Issuance among the Lenders such that the Letter of
            Credit required to be issued by each Lender complies with the
            reasonable commercial requirements of the Borrower or the
            Beneficiary;

     the Administrative Agent is authorized by the Borrower and each 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 any such Drawing or Issuance shall be adjusted, as among the
     Lenders, by the Administrative Agent accordingly.

2.12 ROLLOVER AND CONVERSION.
<PAGE>   39
                                     - 33 -

     (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 Articles 3 or 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 LIBOR Advance or
            Bankers' Acceptance shall be made effective as of, in the case of 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 two Business
                Days prior notice that it will pay to the Administrative Agent
                for the account of the applicable Lender (or Participant) 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; or

            (b) in the case of a 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
                Conversion of such LIBOR Advance to a Base Rate Advance, and
                all of the provisions hereof applicable to Base Rate Advances
                shall apply thereto.

                                   ARTICLE 3
                                    ADVANCES

3.1  ADVANCES.
<PAGE>   40
                                     - 34 -

     (1)    Commitment.  Each Lender agrees (on a several basis with the other
            Lenders under each relevant Credit Facility, up to the amount of
            such Lender's Commitment allocated to such Credit Facility), on the
            terms and conditions herein set forth, from time to time on any
            Business Day prior to the relevant Final Maturity Date, to make
            Advances under each relevant Credit Facility.

     (2)    Amounts.  The aggregate principal amount of each Borrowing shall
            comply with 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 LIBOR Advances) or one Business Day's (in the
            case of other types of Advance) 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 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.  Each Lender shall, before 10:00 a.m. (Vancouver
            time) on the date of the requested Borrowing, deposit to the
            Payment Account in same day funds such Lender's rateable portion
            (subject to section 2.11) of each type of Advance comprising such
            Borrowing (in Canadian Dollars, in the case of Prime Rate Advances,
            and in US Dollars, in the case of LIBOR Advances and Base Rate
            Advances).  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 such account (or causing such
            account to be debited), and by crediting the Borrower Account (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 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
<PAGE>   41
                                     - 35 -

            Borrower on such date corresponding amounts. If and to the extent
            that such Lender shall not have made its rateable portions
            available to the Administrative Agent, such Lender shall pay such
            corresponding amounts to the Administrative Agent forthwith on
            demand.  If such Lender shall pay such corresponding amounts to the
            Administrative Agent, the amounts so paid shall constitute such
            Lender's rateable portions 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 per annum equal
            to:

            (a) in the case of Prime Rate Advances, the Bank of Canada rate in
                effect from time to time; and

            (b) in the case of Base Rate Advances and LIBOR Advances, such rate
                as is customary from time to time for interbank payments of
                this nature;

            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 other Lenders 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.
<PAGE>   42
                                     - 36 -

3.3  INTEREST ON ADVANCES.  The Borrower shall pay interest on the unpaid
     principal amount of each Advance at the following rates per annum:

     (1)    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 Cdn.  Dollars in arrears:

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

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

     (2)    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 U.S.  Dollars in arrears:

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

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

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

            (a) 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

            (b) when such 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 under each relevant Credit Facility, up to the amount of
            such Lender's Commitment allocated to such Credit Facility), on the
            terms and conditions herein set forth, from time to time on any
            Business Day prior
<PAGE>   43
                                     - 37 -

            to the relevant Final Maturity Date, under each relevant Credit
            Facility to create Bankers' Acceptances.

     (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 section 2.1(4) and shall consist of the creation of Bankers'
            Acceptances, effected or arranged by the Lenders in accordance with
            section 4.4, rateably according to their respective Commitments
            (subject to section 2.11).

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. 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 relevant 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 one, two, three or
                six months after the date thereof, subject to availability; and

            (d) be in a form satisfactory to the relevant Lender.

     (2)    Applicability of DBNA.  It is the intention of the parties that
            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 The Canadian
<PAGE>   44
                                     - 38 -

            Depository for Securities Limited 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, 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.

4.4  COMPLETION OF BANKERS' ACCEPTANCE.  Upon receipt of the notice from the
     Administrative Agent pursuant to section 4.2(1), each Lender is thereupon
     authorized to execute Bankers' Acceptances as the duly authorized attorney
     of the Borrower pursuant to a Power of Attorney, in accordance with the
     particulars provided by the Administrative Agent.

4.5  PROCEEDS.  In the case of a Drawing, each 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 that Lender to the Agent Bank for
     the account of the Borrower.

4.6  STAMPING FEE.  The Borrower shall pay to each 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.

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
<PAGE>   45
                                     - 39 -

     amount in same day 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 Payment
     Account.  Upon receipt of such payment, the Administrative Agent will
     promptly thereafter cause such payment to be distributed to the 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 Lender maturing on the relevant date bears to the Face Amount of
     Bankers' Acceptances accepted by all the 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 requesting the Lenders
     to make a Prime Rate Advance on such maturity date in an amount equal to
     such Face Amount, and (ii) the Lenders shall, on such maturity date, make
     such Prime Rate Advance and apply the proceeds thereof to payment of such
     Face Amount.

4.8  DELIVERY OF POWER OF ATTORNEY RESPECTING BANKERS' ACCEPTANCES.  As a
     condition precedent to each Lender's obligation to accept Bankers'
     Acceptances hereunder, the Borrower shall have delivered to such Lender a
     duly executed Power of Attorney, enabling such Lender to execute and
     deliver Bankers' Acceptances for and on behalf of the Borrower.  No 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(5) 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 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.  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
<PAGE>   46
                                     - 40 -

     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 or Participant 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 OLD SYSTEM ISSUERS.  The parties acknowledge that certain Lenders ("OLD
     SYSTEM ISSUERS") may prefer to effect a Drawing by accepting a
     non-interest bearing bill of exchange, as defined by the Bills of Exchange
     Act (Canada), rather than accepting a Bankers' Acceptance in the form of a
     "depository bill" as defined in the DBNA.  The parties agree that should
     an Old System Issuer become a Lender, the parties will enter into such
     agreement supplemental hereto and in amendment hereof as the
     Administrative Agent may reasonably require to accommodate such Old System
     Issuer completing and accepting drafts executed in blank by or on behalf
     of the Borrower.

                                   ARTICLE 5
                               LETTERS OF CREDIT

5.1  LETTERS OF CREDIT COMMITMENT.  (1) Issuance.  Each Lender agrees (on a
     several basis with the other Lenders under each relevant Credit Facility,
     up to the amount of such Lender's Commitment allocated to such Credit
     Facility and subject to sections 2.1(3)(a) and (b)), on the terms and
     conditions herein set forth, from time to time on any Business Day prior
     to the relevant Final Maturity Date, to issue Letters of Credit under the
     RTC Facility and the LC Facility for the account of the Borrower.

     (2)    Fronting.  All Letters of Credit having a Face Amount below
            $500,000 or US$500,000 (as the case may be), and all other Letters
            of Credit (unless the Borrower shall on a case-by-case basis elect
            otherwise), shall be issued on behalf of the Lenders by the
            Fronting Lender, and for this purpose:

            (a) the Principal Outstanding in respect of such Letters of Credit
                shall be considered to be allocated among the Lenders pro rata
                on the basis of their respective Commitments.

            (b) for greater certainty and without limiting the generality of
                section 14.1, the Principal Outstanding among the Lenders shall
                be adjusted in the
<PAGE>   47
                                     - 41 -

                circumstances and in the manner contemplated by section 14.1 in
                order to reflect the Issuance by the Fronting Lender on behalf
                of the Lenders;

            (c) the Fronting Lender shall be paid by the Borrower, at the time
                of each Issuance, a fronting fee on the basis of the currency
                of and in an amount equal to the Face Amount of the Letter of
                Credit then being issued multiplied by (i) for the RTC
                Facility, ten (10 b.p.) basis points per annum or (ii) for the
                LC Facility, five (5 b.p.) basis points per annum, based on the
                Issue Date and expiration date of such Letter of Credit.

5.2  NOTICE OF ISSUANCE.

     (1)    Notice.  Each Issuance shall be made on at least three Business
            Days' prior notice, given in the form of each issuing Lender's
            customary letter of credit application (an "ISSUE NOTICE") not
            later than 10:00 a.m. (Vancouver time) by the Borrower to each
            issuing Lender (with a copy of each such Notice to the
            Administrative Agent).  In addition, the Borrower shall execute and
            deliver each issuing Lender's customary form of letter of credit
            indemnity agreement.  In view of the possible allocation of an
            Issuance under section 2.11, the Borrower shall consult with the
            Administrative Agent prior to any delivery of an Issue Notice.

     (2)    Maturity.  The Borrower shall not request in an Issue Notice a
            maturity date for Letters of Credit which would be subsequent to
            the applicable Final Maturity Date.

5.3  FORM OF LETTER OF CREDIT.  Each Letter of Credit to be issued by a Lender
     shall:

     (1)    be dated the Issue Date; and

     (2)    comply with the definition of Letter of Credit and shall otherwise
            be satisfactory in form and substance to such Lender.

5.4  PROCEDURE FOR ISSUANCE OF LETTERS OF CREDIT.

     (1)    Issue.  On the Issue Date, each issuing Lender will complete and
            issue a Letter of Credit in favour of the Beneficiary as specified
            by the Borrower in its Issue Notice.  Such Letters of Credit shall
            be issued by the Lenders pro rata on the basis of their respective
            Commitments, subject to sections 2.11 and 5.1(2).

     (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
<PAGE>   48
                                     - 42 -

            is presented, if such presentation is made after 11:00 a.m. (local
            time) on such Business Day.

     (3)    Text.  Prior to the 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 issuing Lender may require changes
            in any such documents or certificate.

     (4)    Conformity.  In determining whether to pay under a Letter of
            Credit, the issuing 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.

5.5  PAYMENT OF AMOUNTS DRAWN UNDER LETTERS OF CREDIT.  In the event of any
     request for a drawing under any Letter of Credit, the issuing 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 such
     Lender on demand by such Lender in Cdn. Dollars or US Dollars, as the case
     may be, of an amount, in same day 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 a Prime Rate
     Advance (in the case of a drawing payable in Cdn. Dollars) or a Base Rate
     Advance (in the case of a drawing payable in US Dollars).

     Unless the Borrower notifies the issuing Lender (copy to the
     Administrative Agent) prior to 10:00 a.m. (Vancouver time) on the Business
     Day immediately prior to the date of such drawing that the Borrower
     intends to reimburse such Lender for the amount of such drawing by payment
     to such Lender with funds other than the proceeds of Advances:

     (1)    the Borrower shall be deemed to have given an Accommodation Request
            to the Administrative Agent requesting the Lenders to make, in the
            case of a drawing payable in US Dollars, a Base Rate Advance and,
            in the case of a drawing payable in Cdn. Dollars, a Prime Rate
            Advance, on the date on which such drawing is honoured in an amount
            equal to the amount of such drawing; and

     (2)    subject to the terms and conditions of this agreement (including
            those set forth in Article 6), the Lenders shall, on the date of
            such drawing, make such Advance in accordance with Article 3 and
            the Borrower shall apply the proceeds thereof to the reimbursement
            of the issuing Lender for the amount of such drawing.
<PAGE>   49
                                     - 43 -

5.6  FEES.

     (1)    Issue Fee. The Borrower shall pay to the Administrative Agent in
            respect of each type of Issuance (for the account of the issuing
            Lenders, pro rata on the basis of the respective Face Amounts of
            the type of Issuance issued by them) an issue fee based on the
            currency of the type of Issuance. Such issue fee shall be payable
            by the Borrower on the Issue Date, and shall be calculated on the
            Face Amount of such type of Issuance on the basis of the term
            thereof at a rate per annum equal to the applicable percentage set
            forth in the definition of Applicable Margin, with a minimum fee of
            $250.

     (2)    Administration Fee. The Borrower shall pay to each issuing Lender,
            upon the issuance, amendment or transfer of each Letter of Credit,
            such issuing 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.

5.7  OBLIGATIONS ABSOLUTE.  The obligation of the Borrower to reimburse each
     issuing 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:

     (1)    any lack of validity or enforceability of any Letter of Credit;

     (2)    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);

     (3)    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;

     (4)    payment by an issuing 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 constitute gross negligence or
            wilful misconduct, in the case of a standby letter of credit or
            letter of guarantee, or breach of the standards of reasonable care
            specified in the Uniform Customs, in the case of a commercial
            letter of credit); or
<PAGE>   50
                                     - 44 -

     (5)    the fact that a Default or an Event of Default shall have occurred
            and be continuing.

5.8  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 each issuing Lender and its directors, officers,
            employees, agents 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, other than as a result of
                the gross negligence or wilful misconduct of the indemnitee, in
                the case of a standby letter of credit or letter of guarantee,
                or breach of the standards of reasonable care specified in the
                Uniform Customs, in the case of a commercial letter of credit;
                or

            (b) the failure of the indemnitee 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 5.8, "GOVERNMENT ACTS").

     (2)    Risk.  As between the Borrower and each issuing Lender, the
            Borrower assumes all risks of the acts and omissions of, or misuse
            of the Letters of Credit issued by such issuing Lender, by the
            respective Beneficiaries of such Letters of Credit and, without
            limitation of the foregoing, such issuing Lender shall not 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;
<PAGE>   51
                                     - 45 -

            (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 such
                issuing Lender, including any Government Acts.

            None of the above shall affect, impair or prevent the vesting of
            any of the Lenders' rights or powers hereunder.  No action taken or
            omitted by the issuing 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 such issuing Lender under any
            resulting liability to the Borrower (provided that such issuing
            Lender acts in accordance with the standards of reasonable care
            specified in the Uniform Customs, in the case of a commercial
            letter of credit, and without gross negligence, in the case of a
            standby letter of credit or letter of guarantee).

5.9  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 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 5.4, 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
     by the Administrative Agent as cash collateral security to provide for or
     to secure payment of the 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 5.9, a "JUDICIAL ORDER")
     restricting payment by the issuing Lender under and in accordance with
     such Letter of Credit or extending such issuing 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 such Letter of Credit,
     upon the later of:

     (1)    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
<PAGE>   52
                                     - 46 -

            Order or permanently enjoining the issuing Lender from paying under
            such Letter of Credit; and

     (2)    the earlier of:

            (a) the date on which either the original counterpart of the Letter
                of Credit is delivered to the Administrative Agent for
                cancellation or the issuing Lender is released by the
                Beneficiary from any further obligations in respect thereof;
                and

            (b) 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
     5.9 and the aggregate amount paid by the issuing 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 the Credit Facilities 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.

     (1)    Documents.  The Credit Facility Documents (other than each Lender's
            form of application, undertaking, indemnity and agreement in
            respect of Letters of Credit, Bankers' Acceptances and IRRMs yet to
            be issued or entered into) shall have been executed and delivered
            to the Administrative Agent, and all registrations, filings or
            recordings necessary or desirable to preserve, protect or perfect
            the enforceability and first priority of the Liens created by the
            Security (subject only to Permitted Encumbrances) shall have been
            completed.

     (2)    Constating Documents.  The Administrative Agent shall have received
            certified copies of the constating documents of each MDA Party.

     (3)    Resolutions.  The Administrative Agent shall have received
            certified copies of resolutions of the boards of directors of each
            MDA Party authorizing the execution, delivery and performance of
            the Credit Facility Documents to which it is a party.

     (4)    Incumbency.  The Administrative Agent shall have received a
            certificate of the secretary or an assistant secretary respectively
            of each MDA Party certifying the
<PAGE>   53
                                     - 47 -

            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 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
            does not have or could 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 Year ended December 31, 1999.

     (7)    Fees.  The Administrative Agent and the Lenders shall have received
            payment of all fees and all reimbursable expenses then due.

     (8)    Representations and Warranties.  All of the representations and
            warranties contained herein or in any other Credit Facility
            Document 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 each MDA Party so certifying to the Lenders .

     (9)    No Default.  No Default or Event of Default shall have occurred and
            be continuing, and the Administrative Agent shall have received a
            certificate signed by a Senior Officer of each MDA Party so
            certifying to the Lenders.

     (10)   Financial Statements.  The Administrative Agent shall have received
            the audited consolidated financial statements of the Borrower for
            the Financial Year ended December 31, 1999.

     (11)   Opinions.  The Administrative Agent shall have received favourable
            opinions of counsel to the MDA Parties and of Lenders' Counsel.

     (12)   Due Diligence.  The Administrative Agent shall have received (a)
            copies of such material contracts as it shall reasonably request,
            and (b) a business and financial plan for the Borrower and its
            consolidated subsidiaries, including detailed financial projections
            for the next three years and underlying assumptions.

     (13)   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).
<PAGE>   54
                                     - 48 -

     (14)   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.

     (15)   No Change.  There shall have been no MAE.

     (16)   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 before any court or other
            judicial or administrative entity which would, if adversely
            determined, would have or could reasonably be expected to have an
            MAE.

     (17)   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.

     (18)   Other.  The Lenders shall have received such supporting and other
            certificates and documentation as the Lenders may reasonably
            request.

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 each Lender's
            form of application, undertaking, indemnity and agreement in
            respect of Letters of Credit, Bankers' Acceptances and IRRMs yet to
            be issued or entered into) shall have been executed and delivered
            to the Administrative Agent, and all registrations, filings or
            recordings necessary or desirable to preserve, protect or perfect
            the enforceability and first priority of the Liens created by the
            Security (subject only to Permitted Encumbrances) shall have been
            completed.

     (2)    Representations and Warranties.  All of the representations and
            warranties 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
<PAGE>   55
                                     - 49 -

            received a certificate of a Senior Officer of the Borrower so
            certifying to the 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 Lenders.

     (4)    Other.  The Lenders shall have received such supporting and other
            certificates and documentation as the Lenders may reasonably
            request.

6.3  CONVERSIONS AND ROLLOVERS.  The obligation of the Lenders to make any
     Accommodation by Conversion or Rollover under any 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 the 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 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 the Lenders at any time the 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 Lenders of
     any such condition, and the 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 May 31, 2000, 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.
<PAGE>   56
                                     - 50 -

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 is a corporation 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, as the case may be, and is in good standing
     in all jurisdictions where the failure to so qualify would or could
     reasonably be expected to have a MAE.

7.2  CORPORATE AUTHORITY.   Each MDA Party has full corporate 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 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 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 each MDA Party, 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
     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 of each other Credit Facility Document and each
     other document hereby or
<PAGE>   57
                                     - 51 -

     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:

     (1)    conflict with or result in a breach of any of the terms, conditions
            or provisions of:

            (a) its constating documents;

            (b) any Law;

            (c) any contractual restriction binding on or affecting it or its
                properties; or

            (d) any writ, judgment, injunction, determination or award which is
                binding on it; or

     (2)    result in, or require or permit:

            (a) the imposition of any Lien (other than Permitted Encumbrances)
                on or with respect to any properties now owned or hereafter
                acquired by it; or

            (b) 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 before any
     Official Body which have a material likelihood of being determined
     adversely to it and could, if so adversely determined, reasonably be
     expected to have an MAE.

7.7  SUBSIDIARIES.  As at the Closing Date: (a) the only subsidiaries of the
     Borrower  are described in schedule 4 annexed hereto; (b) 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
     (c) except as set forth in schedule 4 annexed hereto, no person 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 MDA Party.

7.8  COMPLIANCE.  The Borrower is not aware of any basis that any MDA Party may
     be, and no MDA Party has received notice that it is alleged to be, in
     breach of:

     (1)    any Permit or mandatory requirement or directive of any Official
            Body having jurisdiction relating to its business or assets
            (including under Environmental Laws); or

     (2)    any other Law applicable to its business or assets;
<PAGE>   58
                                     - 52 -

     where such breach or alleged breach, if the allegation were proven to be
     correct, has or could reasonably be expected to have an MAE.

7.9  NO DEFAULT.  No Default or Event of Default has occurred and is
     continuing.

7.10 MATERIAL CONTRACTS.  As at the Closing Date, 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 the Borrower is not aware of any breach
     thereunder by any counterparty, save for any such matter which has not had
     and could 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 could not reasonably be expected to have an
     MAE.

7.12 OWNERSHIP OF ASSETS.  The MDA Parties own or have legally enforceable
     interests in all assets and property (including intellectual property)
     necessary to the operation of their respective businesses, in each case
     free and clear of all Liens other than Permitted Encumbrances, and which
     assets and property do not at the Closing Date include any material real
     property interests.

7.13 TAX RETURNS.  Each MDA Party has filed all 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 (and no Liens (except
     Permitted Encumbrances) have attached).

7.14 FINANCIAL STATEMENTS.  The audited financial statements of the Borrower as
     of and for the period ended December 31, 1999, copies of which have been
     delivered to the Administrative Agent, were prepared in accordance with
     Cdn.  GAAP and present fairly, as at the date thereof, the consolidated
     financial position of the Borrower, and since December 31, 1999 to the
     date hereof there has not been (and at the Closing Date there will not
     have been), any material adverse change in such consolidated financial
     position.

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 could
     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.
<PAGE>   59
                                     - 53 -

7.16 MAE.  As at the Closing Date, no event or circumstance has or will have
     occurred which has, or could reasonably be expected to have, an MAE.

7.17 CERTAIN FINANCIAL ASSISTANCE.   As at the Closing Date, no MDA Party has
     any outstanding loans or advances constituting borrowed monies owed to it
     by any of its directors, officers or shareholders or any of its or their
     respective affiliates (which term shall for this purpose include any
     person that is controlled directly or indirectly by the Borrower and
     another person on a 50/50 basis),  except for demand unsecured advances
     made by MDA Parties to subsidiaries of the Borrower on an unsecured basis
     in the ordinary course of business to fund operations.

7.18 DISCLOSURE.  All information heretofore supplied to the Administrative
     Agent and the Lenders by or on behalf of the Borrower is, with respect to
     factual matters, true and correct in all material respects and is, with
     respect to projections, forecasts and other matters being the subject of
     opinion, believed on reasonable grounds to be true and correct in all
     material respects and, to the extent based upon assumptions, such
     assumptions are believed to be reasonable in the circumstances.

                                   ARTICLE 8
                                    SECURITY

8.1  SECURITY.  As continuing collateral security for the payment and
     performance of the Obligations and the obligations of the Borrower and its
     subsidiaries in respect of Bilateral L/C's (to a maximum aggregate face
     amount at any one time of $5 million) and under  all IRRMs entered into
     with any Lenders, there shall be executed and delivered to the
     Administrative Agent the following documents, each of which documents
     shall be in form and substance satisfactory to the Lenders:

     (1)    a Guarantee from each Designated Subsidiary;

     (2)    a GSA from each MDA Party;

     (3)    a Debenture from each MDA Party that owns or has an interest in
            material real property, which Debenture may subsume the GSA that
            would otherwise have been given by such MDA Party (it being
            acknowledged by the Lenders that as at the Closing Date no
            Debenture is required);

     (4)    the performance security guarantees issued by EDC in favour of the
            issuers of EDC-Insured Letters of Credit;

     (5)    any security instruments or documentation required by the
            Administrative Agent in connection with the renewal of any of the
            foregoing security or granted supplemental to such security and
            such other security and supporting
<PAGE>   60
                                     - 54 -

            documents reasonably required by the Administrative Agent from time
            to time to perfect the above security or renewals therefor or
            reasonably required by the Administrative Agent to give effect to
            this agreement, including each Lender's or Participant's form of
            undertaking with respect to Bankers' Acceptances, and each Lender's
            form of application for and indemnity in respect of Letters of
            Credit.

8.2  DESIGNATION.  The Borrower may from time to time by notice to the
     Administrative Agent:

            (a) remove a wholly-owned subsidiary 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;
                and

            (b) designate a wholly-owned subsidiary as a Designated Subsidiary
                hereunder on delivery of the following to the Administrative
                Agent:

                (i)   a written request for such designation;

                (ii)  in respect of such subsidiary, the various documents
                      contemplated by section 6.1(2), (3), (4), (5) and (11);

                (iii) a Guarantee, GSA and (if applicable) Debenture from such
                      subsidiary; and

                (iv)  if required by section 8.3, a pledge of all shares in the
                      capital of such subsidiary held directly or indirectly by
                      the Borrower;

     following which the Administrative Agent shall so advise the Lenders.

8.3  SHARE PLEDGES.   The Borrower shall forthwith advise the Administrative
     Agent upon the release or termination of contractual restrictions against
     the granting of a pledge of  shares in the capital of any Designated
     Subsidiary (which release or termination the Borrower shall exercise
     reasonable commercial efforts to obtain), and upon request will grant or
     cause to be granted to the Administrative Agent a pledge of all such
     shares held directly or indirectly by the Borrower as security for the
     Obligations and all IRRMs entered into with any Lenders, in such form as
     the Administrative Agent shall reasonably request.  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
     Administrative Agent shall reasonably request.
<PAGE>   61
                                     - 55 -

8.4  MATERIAL REAL PROPERTY.  The Borrower shall forthwith advise 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 Administrative Agent a Debenture from such MDA Party as security
     for the Obligations and all IRRMs entered into with any Lenders.

8.5  CONTINUED PERFECTION OF SECURITY.  The Borrower shall take such action and
     execute and deliver to the Administrative Agent such agreements,
     conveyances, deeds and other documents and instruments as the
     Administrative 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
     Administrative Agent and in form and substance satisfactory to the Lenders
     acting reasonably.

8.6  ESSENTIAL ASSETS.  The Borrower shall take such action and execute and
     deliver to the Administrative Agent such agreements, conveyances, deeds
     and other documents and instruments as the Administrative Agent shall
     reasonably request for the purpose of ensuring that the Administrative
     Agent will always enjoy and the Security shall always comprise, for the
     benefit of the Lenders as security for the Obligations and any IRRMs to
     which any Lender(s) are a party, 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 Administrative
     Agent to enjoy such a Lien thereon could reasonably be expected to result
     in (A) a material impairment of the ability of the Administrative Agent,
     the Lenders, their respective agent(s) or a receiver to effectively manage
     any material business of an MDA Party, or (B) a material reduction in the
     recovery from the Collateral on a realization of the Security.

                                   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.
     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 Administrative 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 Administrative Agent, and shall contain
     such other endorsements as shall reasonably be requested by the
     Administrative Agent.
<PAGE>   62
                                     - 56 -

9.3  EVIDENCE.  The Borrower will provide to the Administrative Agent, on
     request from time to time, certified copies of all such policies.  The
     Administrative Agent shall have no 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.  The Administrative Agent shall not 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 (and, unless it is expressly indicated below that a covenant shall
     apply only in respect of the Borrower,  it will cause each Designated
     Subsidiary to comply with each such covenant as if same applied directly
     to such Designated Subsidiary):

     (1)    Corporate Existence.  It will do all things necessary to (a)
            maintain its corporate existence, and (b) to carry out its
            businesses in a proper and efficient manner in like manner as
            prudent operators of its businesses, including without limitation
            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 corporate name, shareholdings (in the case of the
            Borrower, only with respect to dispositions of shares in the
            capital of the Borrower by the existing shareholders prior to an
            initial public offering by the Borrower, and excluding in all cases
            changes resulting from 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, 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 comply in all material respects
            with all applicable Laws (including Environmental Laws) 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
<PAGE>   63
                                     - 57 -

            and safety), except to the extent failure to do so does not, or
            could not reasonably be expected to, result in an MAE.

     (3)    Payment of Taxes and Claims.  It will file as and when required by
            applicable Law all Tax returns and will pay and discharge before
            the same shall become delinquent (a) all Taxes imposed upon it or
            upon its property, and (b) all lawful claims (including claims for
            labour, materials, supplies or services) which, if unpaid, might
            become a Lien upon its property, 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 Encumbrances) have attached.

     (4)    Keeping of Books.  It will keep proper books of record and account,
            in which full and correct entries shall be made of all financial
            transactions and its assets and business to permit the preparation
            of financial statements in accordance with Cdn. GAAP (or, in the
            case of entities outside of Canada, generally accepted accounting
            principles of local application).

     (5)    Maintain Properties. It will maintain, preserve, protect and keep
            its properties which are essential to the ongoing operation of the
            businesses carried on by it in reasonable repair, working order and
            condition, and make necessary and proper repairs, renewals and
            replacements so that such businesses may be properly conducted at
            all times, unless it determines in good faith that the continued
            maintenance of such properties is no longer economically desirable.

     (6)    Pay Obligations to Lenders and Perform Other Covenants.  It will
            make full and timely payment of the Obligations, whether now
            existing or hereafter arising, and 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
            Administrative 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 Encumbrances) and supply all information to the
            Administrative Agent which is reasonably necessary for such
            maintenance.

     (7)    Use of Proceeds.  The Borrower will use the proceeds of all
            Accommodations made available to it only for the purposes set forth
            in section 2.1(2).

     (8)    Financial and Other Reporting.  The Borrower will deliver to the
            Administrative Agent:
<PAGE>   64
                                     - 58 -

            (a) 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 Cdn. GAAP including (before an
                initial public offering by the Borrower) segmented business
                information and appropriate management discussion and analysis;

            (b) 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 certified by
                a Senior Officer 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 10.2(1),
                (9), (11), (12) and (13);

            (d) [intentionally deleted];

            (e) within 15 days after the end of each reporting period, a copy
                of the  progress report to CSA under the Radarsat Contract, and
                a report on the status of CSA funding under the Radarsat
                Contract;

            (f) within 10 days thereof, notice of completion of funding by CSA
                under the Radarsat Contract; and

            (g) 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.  It will promptly notify the
            Administrative Agent in writing of:

            (a) any Default or Event of Default;

            (b) any material default under any agreement regarding the Debt of
                any MDA Party to any person exceeding $1 million in the
                aggregate (or the equivalent amount in other currencies);

            (c) any notice of any litigation or any action by any Official Body
                or any action, suit, proceeding or investigation (or any basis
                therefor) pending, or to the best of its knowledge threatened,
                against or affecting any MDA Party before any Official Body
                that has or may reasonably be expected to have an MAE;

            (d) any other occurrence in respect of the assets, businesses,
                operations or condition, financial or otherwise (including by
                virtue of any environmental
<PAGE>   65
                                     - 59 -

                liability, occurrence, claim or proceeding) of any MDA Party,
                that has or may reasonably be expected to have an MAE;

            (e) any breach or receipt of written allegation of a breach by any
                party, force majeure or dispute under any material contract, or
                if a material contract shall no longer be in force, where any
                of the foregoing has or could reasonably be expected to have an
                MAE;

            (f) any "SLA Material Breach" under and as defined in the BC Online
                Agreement which has remained uncured for over five Business
                Days, and (until same is cured) weekly progress reports
                detailing plans and actions taken to cure same;

            (g) promptly following the filing thereof, copies of all reports,
                statements and other material provided to shareholders, and
                material change reports provided (other than on a confidential
                basis) to applicable securities regulatory agencies, by the
                Borrower; and

            (h) from time to time, upon request by 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.

     (10)   Visitation, Inspection, etc.  It will 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)   Expropriation and Other Transactions.  It will 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 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
<PAGE>   66
                                     - 60 -

            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
                Administrative Agent or the Lenders 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:

                (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
                Administrative Agent or the Lenders 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
                Administrative Agent or the Lenders or a receiver (if the
                Administrative Agent or the Lenders 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 comply with, and diligently enforce,
            all material obligations under material contracts, save where
            failure to do so neither has, nor could 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)(f).

     (14)   Acquisitions.  The Borrower: (a) will provide 15 Business Days'
            prior written notice to the Administrative Agent of any proposed
            acquisition or investment in a person by the Borrower or any
            subsidiary for a purchase price or investment in excess of $10
            million, together with:

                (i)   a summary of the material terms and conditions of the
                      acquisition or investment;

                (ii)  a summary of specific assets and expected cashflows in
                      respect of the acquisition or investment and a summary of
                      the material
<PAGE>   67
                                     - 61 -

                      terms of all material agreements entered into or to be
                      entered into, in each case if requested by the
                      Administrative Agent; and

                (iii) such other information as the Administrative Agent shall
                      reasonably request; and

            (b) where such transaction involves an acquisition of or investment
            in a Non-Recourse Subsidiary or Special Subsidiary in excess of the
            threshold (as defined in the next sentence), the Borrower shall not
            proceed unless and until it shall receive the written approval of
            the Lenders, which approval will not be unreasonably withheld.  For
            the purposes of the foregoing, the "threshold" at any time shall be
            25% of Equity as determined in accordance with the financial
            statements most recently delivered to the Administrative Agent
            under section 10.1(8).

     (15)   Title.  Except for disposition permitted hereby, it will 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 (or, to the extent permitted by the definition
            of wholly-owned subsidiary, no less than 85%) of the outstanding
            shares in the capital of each Designated Subsidiary.

     (17)   IRRMs.  Each MDA Party shall enter into IRRMs only for
            non-speculative purposes.

     (18)   Further Assurances.  It will at its cost and expense, upon request
            of the Administrative Agent, duly execute and deliver, or cause to
            be duly executed and delivered, to the Administrative 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 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 Lenders.

     (1)    Debt.  The subsidiaries of the Borrower (except for Designated
            Subsidiaries and Non-Recourse Subsidiaries) shall not incur or
            suffer to exist any Debt in excess of (for all such subsidiaries in
            the aggregate) $10 million.
<PAGE>   68
                                     - 62 -

     (2)    Liens.  Neither it nor any other MDA Party will  create, incur or
            otherwise permit to exist any Lien on any of its assets, other than
            Permitted Encumbrances.

     (3)    Merger, etc.  Neither it nor any other 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, unless:

            (a) the resulting, surviving or transferee person shall be a person
                organized and existing under the laws of Canada or any province
                thereof;

            (b) such person expressly assumes on terms and conditions as to
                legal effect satisfactory to the Lenders the obligations of
                such MDA Party hereunder and under all other Credit Facility
                Documents to which such MDA Party is a party;

            (c) in the case of such a transaction involving an MDA Party, such
                person is directly or indirectly owned by the Borrower;

            (d) immediately after giving effect to such transaction on a pro
                forma basis no Default or Event of Default shall have occurred
                and be continuing; and

            (e) the Borrower shall have delivered to the Administrative Agent a
                certificate of a Senior Officer and an opinion of counsel, each
                stating that such transaction complies herewith.

     (4)    Other Business.   Neither it nor any subsidiary will enter into any
            new line of business, or terminate any existing business or
            material contract, where such action has or could reasonably be
            expected to have an MAE.

     (5)    Financial Year.  Neither it nor any Designated Subsidiary will
            change its Financial Year.

     (6)    Sale of Assets.  Neither it nor any Designated Subsidiary will
            directly or indirectly consummate any Asset Disposition other than
            an Asset Disposition to another MDA Party and any of the following:

            (a) the sale, licensing or sub-licensing of data or other inventory
                in the ordinary course of business;

            (b) dealings in cash and securities permitted hereby;

            (c) a disposition of an asset that is replaced within a reasonable
                period of time with an asset of equal or greater utility;
<PAGE>   69
                                     - 63 -

            (d) a disposition at fair market value of an obsolete or unuseable
                asset not required for the continued operation of its business;

            (e) a disposition made in compliance with section 10.2(3);

            (f) the disposition of specific accounts receivable from CSA under
                the Radarsat Contract in connection with the financing of the
                launch of Radarsat II, on terms and conditions satisfactory to
                the Lenders, acting reasonably;

            (g) the disposition of a receivable under and in accordance with
                the receivable purchase agreement dated May 8, 1998 between the
                Borrower and EDC; and

            (h) 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 in any one Financial Year exceed $5
                million.

     (7)    Distribution.  Prior to completion of an initial public offering or
            any private equity offering of the Borrower, the Borrower shall not
            pay any dividends on its shares or issue any shares other than for
            cash, except as may be required to effect any of the transactions
            contemplated under the subscription agreement dated December 22,
            1999 among the Borrower, CAI Capital Partners and Company I,
            Limited Partnership, CAI Partners and Company II, Limited
            Partnership, CAI Capital Partners and Company II-C, Limited
            Partnership, 597858 B.C. Ltd., and Orbital Sciences Corporation and
            the related agreements entered into as contemplated, or repurchase
            of any shares, except any purchases of shares as may be required
            with respect to employees of the Borrower.

     (8)    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.

     (9)    Financial Assistance.  No MDA Party shall provide any form of
            financial assistance (whether by way of loan, guarantee or
            otherwise) to any person other than another MDA Party or a
            wholly-owned subsidiary of the Borrower at any time in excess of
            (for all MDA Parties together) $10 million.

     (10)   Ibid.  The Borrower will not make any loan to, or guarantee of the
            indebtedness of, or otherwise provide financial assistance to any
            of its directors, officers or shareholders.
<PAGE>   70
                                     - 64 -

     (11)   Net Position.   The aggregate liabilities (excluding amounts owed
            to it by any of its subsidiaries which are consolidated with the
            Borrower under normal course funding arrangements) owed to the
            Borrower by its affiliates (which term shall for this purpose
            include any person that is controlled directly or indirectly by the
            Borrower and another person on a 50/50 basis), which affiliates are
            not Designated Subsidiaries or Non-Recourse Subsidiaries, net of
            the aggregate liabilities owed by the Borrower to such affiliates
            (excluding management fees and borrowed monies owed by the
            Borrower) will not exceed $5 million at any time; provided that the
            payment terms, or agreed terms of repayment or due date of any
            amount which may become owed to the Borrower or any subsidiary by
            any affiliate (other than a subsidiary of the Borrower) may not be
            extended or amended without the approval of the Lenders, acting
            reasonably.

     (12)   Management Fees.   Neither the Borrower nor any subsidiary will
            make any payment in respect of any consulting, licensing,
            management or administration fee or charge or any similar fee or
            charge paid or payable by any of its affiliates ("MANAGEMENT
            FEES"), save and except that (i) the Borrower may make payment on
            account of Management Fees to any of its subsidiaries, (ii) any of
            its subsidiaries may make payments on account of Management Fees to
            the Borrower or any other subsidiary of the Borrower, and (iii) the
            Borrower may make, and may permit its subsidiaries to make,
            payments on account of Management Fees in any Financial Year of up
            to $1 million to any affiliate which is not the Borrower or any of
            its subsidiaries (in each case in the aggregate for all such
            payments made by the Borrower together with its subsidiaries in any
            such Financial Year).

     (13)   Financial Ratios.  The Borrower will not permit:

            (a) the ratio of Consolidated Debt to EBITDA to exceed 3:1;

            (b) the ratio of the sum of Consolidated Debt and Subordinated Debt
                to EBITDA to exceed 5:1; or

            (c) the ratio of EBITDA to Interest Expense to fall below 4:1;

            in each case calculated as at the end of each Financial Quarter on
            the basis of the four Financial Quarters then ended; or
<PAGE>   71
                                     - 65 -

            (d) Equity to fall below the sum of (i) $50 million, (ii) 75% of
                consolidated net income of the Borrower for each Financial Year
                from and including the Financial Year ending December 31, 2000,
                and (iii) 100% of the proceeds (net of customary transaction
                costs) from the treasury issue of securities by the Borrower.

10.3 ADMINISTRATIVE AGENT MAY PERFORM COVENANTS.  If an MDA Party 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 10.3 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 10.3 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 Canada or any
     province or 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 Canada or any province or 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.
<PAGE>   72
                                     - 66 -

11.2 CIRCUMSTANCES REQUIRING DIFFERENT PRICING.  If, on or before any date on
     which an interest rate is to be determined on the basis of LIBOR, either:

     (1)    the Administrative Agent determines that it will not be possible to
            determine LIBOR for the applicable Interest Period or in the
            applicable amounts; or

     (2)    the Administrative Agent determines or receives notice from a
            Lender that LIBOR will not adequately reflect the cost of making,
            funding or maintaining LIBOR Advances for the applicable Interest
            Period;

     then, the Administrative Agent shall forthwith give notice of such event
     to the Borrower and each Lender, whereupon the obligations of the Lenders
     to make LIBOR Advances 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 determines or receives notice from a
     Lender that, by reason of circumstances affecting financial markets inside
     or outside Canada, deposits of US Dollars are unavailable to one or more
     Lenders in such markets, then,

     (1)    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;

     (2)    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

     (3)    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, in the case of
            a LIBOR Advance on the last day of the then current Interest Period
            applicable thereto (or on such earlier date as may be required to
            comply with applicable Law, and upon payment of all Increased Costs
            arising therefrom).

11.4 INCREASED COSTS.  If:

     (1)    the enactment or amendment of any Law or any change in the
            interpretation or application thereof by any Official Body; or

     (2)    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, without
            limitation, the Bank for International
<PAGE>   73
                                     - 67 -

            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:

     (3)    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;

     (4)    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;

     (5)    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

     (6)    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 other Lenders 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
<PAGE>   74
                                     - 68 -

     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));

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 LIBOR
                Advance or a 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.  Subject to 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
<PAGE>   75
                                     - 69 -

            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 relevant Lender receives an amount
                equal to the sum it would have received if no deduction or
                withholding had been made;

            (b) such Borrower shall make such deductions or withholdings; and

            (c) such Borrower shall pay the full amount deducted or withheld to
                the relevant taxation or other authority in accordance with
                applicable Law.

     (2)    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.

     (3)    Indemnity.  The Borrower shall indemnify and save harmless each
            Lender for the full amount of Taxes (including any Taxes imposed by
            any jurisdiction on amounts payable under this section) paid by
            such Lender 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
            Lender makes written demand therefor.  A certificate as to the
            amount of such Taxes submitted by the Lender to the Borrower (copy
            to the Administrative Agent) shall be conclusive evidence, absent
            demonstrated error, of the amount due from the Borrower to such
            Lender.
<PAGE>   76
                                     - 70 -

     (4)    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.

     (5)    Lenders.  The Lenders shall endeavour to limit the incidence of any
            additional amounts payable under this section 11.6, and the
            Borrower shall thereafter not be obligated to pay any such amounts
            should the cause of same be rescinded, removed, repealed or
            withdrawn.

                                   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 when the same
                becomes due and payable;

            (b) to reimburse any Lender in respect of any Bankers' Acceptance
                or Letter of Credit, or pay the Face Amount thereof, when
                required hereunder; or

            (c) to pay any interest or fees hereunder when the same becomes due
                and payable;

            and in any such case 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 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)    Failure to Perform Covenants.   Other than in respect of those
            covenants referred to in section 12.1(4), any MDA Party or
            subsidiary shall fail to perform or observe any covenant contained
            in this agreement or any other Credit Facility Document on its part
            to be performed or observed or otherwise applicable to it; 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.
<PAGE>   77
                                     - 71 -

     (4)    Ibid.  Any MDA Party or subsidiary shall fail to perform or observe
            any covenant contained in section 10.1(1)(a) or section 10.2 on its
            part to be performed or observed or otherwise applicable to it.

     (5)    Cross-Default.  Any event shall occur and shall continue after the
            applicable grace period (if any) specified in any agreement or
            instrument relating to any Debt of any MDA Party to any person or
            persons exceeding $5 million (or the equivalent amount in other
            currencies), as a result of which the creditor may declare the
            principal thereof to be due and payable.

     (6)    Voluntary Events of Bankruptcy.  Any MDA Party 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;
                or

            (e) take any corporate action to authorize any of the actions
                described in this section 12.1(6).

     (7)    Involuntary Events of Bankruptcy.  Any proceeding against an MDA
            Party:

            (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;
                or
<PAGE>   78
                                     - 72 -

            (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, and such appointment
                has not been stayed or discharged by it within 60 days from the
                date made.

     (8)    Execution.  All or any material part of the assets of an MDA Party
            are attached, executed, sequestered or distrained upon or become
            subject to any order of a court or other process and such
            attachment, execution, sequestration, distraint, order or process
            (a) relates to claims in the aggregate in excess of $5 million (or
            the equivalent amount in other currencies), and (b) such MDA Party
            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.

     (9)    Judgments.  Judgment for the payment of money (unless fully
            insured) in the aggregate in excess of $5 million (or the
            equivalent amount in other currencies) shall be rendered by a court
            of competent jurisdiction against such MDA Party 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.

     (10)   Security Unenforceable.  Any Credit Facility Document shall become
            unenforceable or the Lien of any of the Security shall cease to
            rank in priority in the manner contemplated herein or in the
            Security other than by reason of the direct act or omission of the
            Administrative Agent or the Lenders.

     (11)   MAE.  An MAE.

     (12)   Assets.  The aggregate of the total assets of the MDA Parties,
            calculated on an unconsolidated basis as at the date of the most
            recent quarterly financial statements delivered under section
            10.1(8) (but excluding any duplication of assets that result from
            an intercompany equity investment and excluding equity in
            non-consolidated related parties), shall constitute less than 85%
            of the aggregate of the total assets of the Borrower and its
            consolidated subsidiaries (but excluding all Non-Recourse
            Subsidiaries and excluding equity in non-consolidated related
            parties); provided that, for this purpose, the total assets of an
            MDA Party shall not include assets which are subject to a Permitted
            Encumbrance of the nature described in item (o) or (p) thereof in
            priority to the Lien of the Security.
<PAGE>   79
                                     - 73 -

     (13)   Revenues.  The aggregate of the gross revenues of the MDA Parties
            shall constitute less than 85% of the aggregate of the gross
            revenues of the Borrower and its consolidated subsidiaries (but
            excluding all Non-Recourse Subsidiaries), calculated as at the date
            of the most recent quarterly financial statements delivered under
            section 10.1(8) for the four Financial Quarters then ended;
            provided that, for this purpose, the gross revenues 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 Encumbrance of the nature
            described in item (o) or (p) thereof in priority to the Lien of the
            Security.

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 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 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(6) or 12.1(7) 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 Majority Lenders, commence such legal
            action or proceedings as it may deem expedient, including
            exercising and enforcing its rights and remedies under any
            Security, 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 any other action,
            notice of all of which the Borrower hereby expressly waives.  The
            rights and remedies of the Administrative Agent and the Lenders
            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
<PAGE>   80
                                     - 74 -

            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 Administrative Agent, with respect to the
            Collateral or any part thereof, nor any act or omission of the
            Administrative Agent or any Lender with respect to such Security,
            shall in any way prejudice or affect the rights, remedies and
            powers of the Administrative Agent or the Lenders 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 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 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
     are in addition to all other rights and remedies (including other rights
     of set-off) which 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 US Dollar Advances or
     any of them to Prime Rate Advances.  Any such conversion shall be
     calculated so that the resulting Prime Rate Advances shall be the
     Equivalent Amount in Cdn. Dollars on the date of conversion of the amount
     of US Dollars so converted.  Any accrued and unpaid interest denominated
     in US Dollars at the time of any such conversion shall be similarly
     converted to Cdn. Dollars, and such Prime 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 Administrative 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
<PAGE>   81
                                     - 75 -

     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.

13.2 DUTIES AND OBLIGATIONS.  The duties and obligations of the Administrative
     Agent hereunder shall be mechanical and administrative in nature, and
     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.

     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:

     (1)    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;

     (2)    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;

     (3)    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;

     (4)    may assume that no Default or Event of Default has occurred and is
            continuing unless it has actual knowledge to the contrary; and
<PAGE>   82
                                     - 76 -

     (5)    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:

     (6)    does not make any 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;

     (7)    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 any other person or to inspect any
            Project Assets (including books and records); or

     (8)    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.

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 Administrative 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,
<PAGE>   83
                                     - 77 -

     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:

     (1)    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 other Lender), or

     (2)    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 reimbursed 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 an 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.

13.6 SUCCESSOR 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
<PAGE>   84
                                     - 78 -

     be removed at any time with cause by the Majority Lenders.  Upon any such
     resignation or removal, the Lenders, after consultation with the Borrower,
     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 one of the Lenders 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 SECURITY.  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
     Document.  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.
<PAGE>   85
                                     - 79 -

                                   ARTICLE 14
                                 MISCELLANEOUS

14.1 SHARING OF PAYMENTS; RECORDS.

     (1)    Sharing.  If:

            (a) any Lender shall obtain any payment (whether voluntary,
                involuntary, through the exercise of any right of set-off
                pursuant to section 12.3 or at law or equity, or otherwise) on
                account of any Accommodation made by it (other than Increased
                Costs paid to it) in excess of its rateable share of payments
                on account of such Accommodation; or

            (b) (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 share
                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 be owed the outstanding Obligations
            rateably with such other Lenders.

            In the case of paragraph (a) of this section 14.1(1), if all or any
            portion of such excess payment 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.

     (2)    Records.  The Principal Outstanding under the Credit Facilities,
            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.
<PAGE>   86
                                     - 80 -

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, and then such waiver or consent shall be
            effective only in the specific instance and for the specific
            purpose for which given.

     (2)    Amendments - Unanimous.  No amendment, waiver or consent shall,
            unless in writing and signed by all the Lenders:

            (a) waive any of the conditions specified in Article 6;

            (b) increase the Commitment of any Lender or subject any Lender to
                any additional obligation;

            (c) reduce the principal of, or interest on, or discount rate
                applicable to any Accommodation or any fees hereunder;

            (d) postpone any date fixed for any payment of principal of, or
                interest on, any Accommodation or any fees hereunder;

            (e) amend this section 14.2;

            (f) amend the definitions of "Majority Lenders";

            (g) except as permitted by section 10.2(3), permit a change in the
                Borrower or an assignment or transfer of any of its rights or
                obligations under any Credit Facility Document; or

            (h) release all or substantially all of the Security.

     (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, affect the rights or duties of
            the Administrative Agent under any Credit Facility Document.

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 shall
            be personally delivered by courier or telecopied to the addressee
            at the address referred to below, in
<PAGE>   87
                                     - 81 -

            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.  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
                Global Banking - Agency
                South Tower, Royal Bank Plaza
                200 Bay Street
                Toronto, Ontario  M5J 2J5

                Attention:  Manager, Agency

                Telecopy No.  (416) 974-2407
<PAGE>   88
                                     - 82 -

                Copy to:

                Royal Bank of Canada
                23rd Flr., 335 - 8 Avenue S.W.
                Calgary, Alberta
                T2P 1C9

                Attention: Ian McArthur, Esq.

                Telecopy No.: (403) 233-8081

                Royal Bank of Canada
                2nd Flr., 1025 West Georgia
                Vancouver, British Columbia
                V7Y 1B3

                Attention: Gary Budd, Esq.

                Telecopy No.: (604) 665-6368

     (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
            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.

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
<PAGE>   89
                                     - 83 -

     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, without limitation, all legal fees and disbursements on a
     solicitor and his own client) incurred:

     (i)    by the Administrative Agent  in connection with this agreement, the
            other Credit Facility Documents and the Credit Facilities,
            including without limitation:

            (A) 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");

            (B) the performance by the Administrative Agent of its obligations
                and duties under any Document;

            (C) [intentionally deleted];

            (D) advice of counsel with respect to the administration of or
                other matters relating to the Credit Facility, any Document or
                any transaction contemplated thereunder;

            (E) the enforcement of any Document or the enforcement or
                preservation of rights under and the refinancing, renegotiation
                or restructuring (including without limitation 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

            (F) any amendments, waivers or consents requested by or in respect
                of the Borrower or any affiliate pursuant to the provisions
                hereof or any other Document;

     (ii)   by each of the Lenders in connection with:

            (A) the enforcement of any Document or the enforcement or
                preservation of rights under and the refinancing, renegotiation
                or restructuring (including without limitation negotiation of
                any so-called "workout" or similar transaction) of the Credit
                Facility under this agreement or any
<PAGE>   90
                                     - 84 -

                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

            (B) any amendments, waivers or consents requested by or in respect
                of the Borrower or any affiliate pursuant to the provisions
                hereof or any other Document.

     In addition, the Borrowers 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 such Agent
<PAGE>   91
                                     - 85 -

            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 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.
<PAGE>   92
                                     - 86 -

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; Assignments.  A Lender may:

            (a) grant participations in all or any part of a Credit Facility to
                one or more persons (each a "PARTICIPANT"); or

            (b) assign all or any part (in a minimum amount of $5 million) of
                its interest in all (but no less than all) of the 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:
            (c) no such Participant or Assignee shall be entitled to receive
                any greater payment, on a cumulative basis, than the relevant
                Lender would have been entitled to receive;

            (d) unless an Event of Default shall have occurred and be
                continuing, the consent of the Borrower to an assignment under
                section 14.8(3)(b) shall be required (which consents shall not
                be unreasonably withheld), and the Borrower shall have the
                right to request a period of 30 days within which to seek an
                alternate assignee;

            (e) no Lender shall have a Commitment below $10 million; and

            (f) no such Participant or Assignee shall be a non-resident of
                Canada for Canadian withholding tax purposes.

     (4)    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
<PAGE>   93
                                     - 87 -

            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.

      (5)   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 the
            relevant Credit Facility.

      (6)   Assumption.  In order to effect an assignment contemplated by
            section 14.8(3)(b), 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 $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.

14.10 CONFIDENTIALITY.  Information provided by the Borrower hereunder will not
      be disclosed by the Administrative Agent or Lender or used by the
      Administrative Agent or Lender for any purpose other than evaluation,
      monitoring and review pursuant to this agreement; provided that such
      information may be disclosed:

      (1)   as contemplated by section 14.8(4) if such Participant or Assignee
            is advised such information is confidential, and the Lender advises
            the Borrower of the disclosure;

      (2)   to any director, officer or employee of the Administrative Agent or
            Lender or its subsidiaries; provided that same is treated in the
            same manner as other confidential information held by the
            Administrative Agent or Lender;

      (3)   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;

      (4)   pursuant to applicable Law;
<PAGE>   94
                                     - 88 -

      (5)   to the extent that such information is public;

      (6)   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.

14.11 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.

14.12 PRIOR UNDERSTANDINGS.  This agreement supersedes all prior understandings
      and agreements, whether written or oral, among the parties relating to
      the transactions provided for herein.

14.13 TIME OF ESSENCE.  Time shall be of the essence hereof.
<PAGE>   95
                                     - 89 -

14.14 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.

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:
                          -----------------------------

                      Per:
                          -----------------------------

                      ADMINISTRATIVE AGENT:

                      ROYAL BANK OF CANADA

                      Per:
                           ----------------------------

                      LENDERS:

                      ROYAL BANK OF CANADA

                      Per:
                           ----------------------------
<PAGE>   96

                                   SCHEDULE 1

                            LENDERS AND COMMITMENTS

<TABLE>
<CAPTION>
      Lender                            Address                         Commitment
      ------                            -------                         ----------
      <S>                               <C>                             <C>
      Royal Bank of Canada              1025 West Georgia Street        $190 million
                                        Vancouver, BC  V6E 3N9
</TABLE>

<PAGE>   97

                                   SCHEDULE 2

                             ACCOMMODATION REQUEST

                                          [Date]

      Royal Bank of Canada
      Global Banking - Agency
      South Tower
      Royal Bank Plaza
      200 Bay Street
      Toronto, Ontario
      M5J 2J5

      Attention:  Manager, Agency
      Telecopy: (416) 974-2407

      Dear Sirs:

            The undersigned refers to the Credit Agreement dated for reference
      March 31, 2000 (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 Credit Agreement under the ___________________(1)
      Facility as follows:

A.  If an Advance is requested:

            The date of such Advance, being a Business Day, is ______________.

----------------------

(1) Insert "RTC" or "Term"

<PAGE>   98

      The type of Advance comprising such Advance is ______________________.(2)

      The aggregate amount of such Advance is $___________________.(3)

-------------------------------

(2)  Specify LIBOR Advance, Prime Rate Advance or Base Rate Advance.

(3)  Specify in U.S. Dollars or Canadian Dollars.

<PAGE>   99
                                     - 3 -

The initial Interest Period applicable to such Advance is ______________.(4)

B.  If a Drawing is requested:

      (a)   The date of such Drawing, being a Business Day, is _______________.

      (b)   The aggregate Face Amount of Drafts to be accepted is $__________.

      (c)   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:

(a)   Such Advance is currently outstanding as ____________________.(5)

(b)   The principal amount of $_____________________ of such Advance is to be
      changed into _________________(6) in the principal amount of $       .

(c)   The principal amount of $_____________________ of such Advance is to be
      changed into  ___________________________(7) in the principal amount of
      $              .

(d)   $_____________________ of the principal amount of such Advance is to be
      repaid from the proceeds of the Drawing described in B.

(e)   The date of the Conversion is                   .

--------------------------

(4)  Specify in the case of a LIBOR Advance the elected period in months.
     Insert "N/A" for Prime Rate Advances or Base Rate Advances.

(5)  Insert Prime Rate Advance or Base Rate Advance.

(6)  See 1 above.

(7)  See 1 above.

<PAGE>   100
                                     - 4 -

D.  If a Conversion or Rollover of a LIBOR Advance is required:

(a)   Such LIBOR Advance is in a principal amount of US$______________________
      with an Interest Period expiring                  .

(b)   The principal amount of $_____________________ of such LIBOR Advance is
      to be changed into __________________(8) in the principal amount of
      $             .

<PAGE>   101

                                     - 5 -

(c)   The principal amount of $_____________________ of such LIBOR Advance is
      to be changed into _______________(9) in the principal amount of
      $            .

(d)   The principal amount of $__________________ of such LIBOR Advance is to
      continue as such for a further Interest Period of _____ months
      expiring ____________________.

(e)   $_____________________ of the principal amount of such LIBOR Advance is
      to be repaid from the proceeds of the Drawing described in B.

(e)   The date of the Conversion or Rollover is                   .

E.  If a Conversion or Rollover of a Drawing is required:

(a)   Such Drawing is in a Face Amount of $______________________ with a
      maturity of ____.

(b)   $_____________________ of the Face Amount of such Drawing is to be paid
      from the proceeds of the Advance described in A.

(c)   $_____________________ of the Face Amount of such Drawing is to be paid
      from the proceeds of the Drawing described in B.

(d)   The date of the Conversion or Rollover is                   .

                           MACDONALD, DETTWILER AND ASSOCIATES LTD.

                           Per:
                                ---------------------------
                                Authorized Signatory

------------------------

(9)  See 1 above.

<PAGE>   102

                                   SCHEDULE 3

                               POWER OF ATTORNEY

            WHEREAS MacDonald, Dettwiler and Associates Ltd. (the "BORROWER")
      wishes to facilitate the acceptance of Bankers' Acceptances pursuant to
      the terms of the credit agreement dated as of March 31, 2000 among the
      Borrower, Royal Bank of Canada as Administrative Agent, and the Lenders
      named therein, to which NAME OF BANK is a party (as amended, supplemented
      and restated from time to time, the "CREDIT AGREEMENT").

            NOW THEREFORE, the Borrower hereby appoints NAME OF BANK
      (hereinafter called the "BANK"), acting by an authorized signing officer
      of the Bank, the attorney of the Borrower:

            (a) to sign for and on behalf and in the name of the Borrower as
                drawer, and if applicable, as endorser, drafts in the Bank's
                standard form ("DRAFTS") drawn on the Bank payable to the order
                of CDS & Co. (or other nominee name of The Canadian Depository
                for Securities Limited) or payable to the order of the Bank;
                and

            (b) to fill in the amount, date and maturity date of such Drafts;

provided that such acts in each case are to be undertaken by the Bank in
      accordance with instructions given to the Bank by the Borrower as
      provided in this power of attorney.

            Instructions to the Bank relating to the execution, completion,
      endorsement, discount and/or delivery by the Bank on behalf of the
      Borrower of Drafts which the Borrower wishes to submit to the Bank for
      acceptance by the Bank shall be communicated by the Administrative Agent
      and/or the Borrower to the Bank in writing to the Attorney at the Bank's
      Lending Branch following delivery by the Borrower of an Accommodation
      Request pursuant to section 4.2(1) of the Credit Agreement and shall
      specify the following information:

            (a) reference to this power of attorney;

            (b) a Canadian Dollar amount, which shall be the aggregate face
                amount of the Drafts to be accepted by the Bank in respect of a
                particular Drawing; and

            (c) a specified period of time in accordance with section 4.3 of
                the Credit Agreement, which shall be the number of days after
                the date of such Drafts that such Drafts are to be payable, and
                the dates of issues and maturity of such Drafts.

            The communication in writing by the Borrower to the Bank of the
      instructions referred to above shall constitute (a) the authorization and
      instruction of the Borrower to the Bank to complete and endorse Drafts in
      accordance with such information as set out above, and (b) the request of
      the Borrower to the Bank to accept such Drafts and deliver the same
      against payment as set out in the instructions.  The Borrower
      acknowledges that the Bank shall not be

<PAGE>   103

      obligated to accept any such Drafts except in accordance with the
      provisions of the Credit Agreement.

            The Bank shall be and it is hereby authorized to act on behalf of
      the Borrower upon and in compliance with instructions communicated to the
      Bank as provided herein if the Bank reasonably believes them to be
      genuine.  If the Bank accepts Drafts pursuant to any such instructions,
      the Bank shall confirm particulars of such instructions and advise the
      Borrower that the Bank has complied therewith by notice in writing
      addressed to the Borrower in accordance with the Credit Agreement.  The
      Bank's actions confirmed and advised to the Borrower by such notice shall
      be conclusively deemed to have been in accordance with the instructions
      of the Borrower unless the Borrower notifies the Bank to the contrary in
      writing not later than the Business Day next following such deemed
      receipt by the Borrower.

            The Borrower agrees to indemnify the Bank and its directors,
      officers, employees, affiliates and agents and to hold it and them
      harmless from and against any loss, liability, expense or claim of any
      kind or nature whatsoever incurred by any of them as a result of any
      action or inaction in any way relating to or arising out of this power of
      attorney or the act contemplated hereby; provided that this indemnity
      shall not apply to any such loss, liability, expense or claim which
      results from the negligence or wilful misconduct of the Bank or any of
      its directors, officers, employees, affiliates or agents or for the Bank
      or any of its directors, officers, employees, affiliates or agents
      failing to use the same standard of care in the custody of such Drafts as
      the Bank uses in the custody of its own property of a similar nature.

            This power of attorney may be revoked at any time upon not less
      than five (5) Business Days' written notice served upon the Bank at its
      Lending Branch; provided that (i) it may be replaced with another power
      of attorney forthwith in accordance with the requirements of section 4.8
      of the Credit Agreement; and (ii) no such revocation shall reduce, limit
      or otherwise affect the obligations of the Borrower in respect of any
      Draft executed, completed, endorsed, discounted and/or delivered in
      accordance herewith prior to the time at which such revocation becomes
      effective.

            This power of attorney is in addition to and not in substitution
      for any agreement to which the Bank and the Borrower are parties.

            This power of attorney shall be governed in all respects by the
      laws of the Province of British Columbia and the laws of Canada
      applicable therein and each of the Borrower and the Bank hereby
      irrevocably attorns to the non-exclusive jurisdiction of the courts of
      such jurisdiction in respect to all matters arising out of this power of
      attorney.

<PAGE>   104
                                     - 3 -

            In the event of a conflict between the provisions of this Power of
      Attorney and the Credit Agreement, the Credit Agreement shall prevail.
      Capitalized terms used and not defined herein shall have the meanings
      given to them in the Credit Agreement.

            DATED at ________________, this ____ day of ___________, 2000.

                     MACDONALD, DETTWILER AND ASSOCIATES LTD.

                     Per:
                         ------------------------
                              Name:
                              Title:

<PAGE>   105

                                   SCHEDULE 4

                               SUBSIDIARIES, ETC.

                               [TO COME FROM MDA]

<PAGE>   106

                                   SCHEDULE 5

                             APPLICABLE MARGINS(1)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
  LEVEL(2)  CONSOLIDATED   BA STAMPING FEE,      FACILITY      STANDBY FEE   BA STAMPING
             DEBT/EBITDA      APPLICABLE         FEES(4)       (TRANCHE C)      FEE AND
                RATIO           MARGIN        (RTC FACILITY                   APPLICABLE
                               FOR LIBOR          AND LC                      MARGIN FOR
                               ADVANCES         FACILITY)                        LIBOR
                           AND L/C FEES(3)                                     ADVANCES
                          (RTC FACILITY AND                                      (TERM
                             LC FACILITY)                                      FACILITY)
---------------------------------------------------------------------------------------------
    <S>      <C>                <C>                <C>            <C>           <C>
     I       >/=2.5:1           130.0              45.0           50.0          175.0
---------------------------------------------------------------------------------------------
     II    >/=2:1<2.5:1         110.0              40.0           45.0          150.0
---------------------------------------------------------------------------------------------
    III    >/=1.5:1<2:1          90.0              35.0           40.0          125.0
---------------------------------------------------------------------------------------------
     IV    >/=1:1<1.5:1          82.5              30.0           35.0          112.5
---------------------------------------------------------------------------------------------
</TABLE>

-----------------------------

(1)  The Applicable Margin on Prime Rate Advances and Base Rate Advances is
     nil, with the exception of 30.0 and 10.0 basis points for levels I and II
     respectively.

(2)  In the event that, following receipt of financial statements upon which a
     calculation of the ratio of Consolidated Debt to EBITDA is made, such
     calculation indicates that a new level shall apply, the new level shall
     apply with effect as at and from the date of receipt of such financial
     statements by the Administrative Agent.

(3)  For EDC-Insured Letters of Credit issued under the RTC Facility and the LC
     Facility, the L/C fee is 15.0 basis points.

(4)  With respect tot he one-half of the LC Facility allocated to EDC-Insured
     Letters of Credit, and the portion of the RTC Facility from time to time
     allocated to EDC-Insured Letters of Credit in accordance with section
     2.1(3)(a), the facility fee shall be 10.0 points per annum.

<PAGE>   107

<TABLE>
---------------------------------------------------------------------------------------------
       <S>           <C>             <C>             <C>             <C>             <C>
       V             <1:1            75.0            25.0            30.0            100.0
---------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   108

                                   SCHEDULE 6

                               REDUCTION REQUEST

Royal Bank of Canada
Global Banking - Agency
South Tower
Royal Bank Plaza
200 Bay Street
Toronto, Ontario
M5J 2J5

Attention:  Manager, Agency
Telecopy: (416) 974-2407

Dear Sirs:

     The undersigned refers to the Credit Agreement dated for reference March
31, 2000 (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 $_____________, with effect as at _________________.

                              MACDONALD, DETTWILER AND ASSOCIATES LTD.

                              Per:
                                  ----------------------------
                                    Authoritzed Signatory<PAGE>   1
                                                                    Exhibit 10.5

                                    REVISED
                  MACDONALD, DETTWILER AND ASSOCIATES LTD.
                    1999 STOCK OPTION AND INCENTIVE PLAN

1.       Purpose of the Plan

The purpose of this 1999 Stock Option and Incentive Plan is to advance the
interests of MacDonald, Dettwiler and Associates Ltd.  ("MDA OR "COMPANY") and
its shareholders by enabling MDA and other Participating Companies (as defined
below) to attract and retain highly talented employees, officers and directors
and, subject to applicable laws, consultants, who are in a position to make
significant contributions to the success of MDA, to reward them for their
contributions to the success of MDA, and to encourage them, through share
ownership, to increase their proprietary interest in MDA and their personal
interest in its continued success and progress.

This 1999 Stock Option and Incentive Plan provides for the award of MDA stock
options to acquire MDA common shares.

2.       DEFINITIONS

For the purposes of this Plan and related documents, the following definitions
apply:

         "ACT" means the Canada Business Corporations Act, as amended.

         "AFFILIATE" has the meaning specified in the Act.

         "AWARD AGREEMENT" means the stock option agreement or other written
         agreement between MDA and a Grantee that evidences and sets out the
         terms and conditions of a Grant.

         "BOARD" means the Board of Directors of the Company.

         "CAI ENTITIES" means CAI Capital Partners and Company II, L.P., CAI
         Partners and Company II, L.P., and CAI Capital Partners and Company
         II-C, L.P.

         "COMMITTEE" means a committee of the Board designated from time to
         time by resolution of the Board, which committee shall consist of no
         fewer than two members of the Board, none of whom shall be an officer
         or other salaried employee of any Participating Company.

         "COMPANY" or "MDA" means MacDonald, Dettwiler and Associates Ltd., a
         corporation governed by the laws of Canada or any successor thereof.

         "EFFECTIVE DATE" means December 22, 1999.

<PAGE>   2
                                     - 2 -

         "EMPLOYEE" with respect to a Participating Company means an individual
         who is considered an employee of the Participating Company as defined
         under the Income Tax Act, (Canada) as amended, or who is an individual
         who is a full-time or a part-time dependent contractor of the
         Participating Company providing services normally provided by an
         employee of the Participating Company and is subject to the same
         control and direction by the Participating Company over the detail and
         methods of work as an employee of the Participating Company.

         "FAIR MARKET VALUE OF A SHARE" means the closing sale price of the
         Shares on the national securities or stock exchange on which the
         Shares are then principally traded or, if that measure of price is not
         available, in a national market system for securities on the day
         before the date of the Grant or the day before the date on which any
         action is to be taken as herein provided. In the event that there are
         no sales of Shares on any such exchange or market on date of the Grant
         (or such other date as is specified herein), the fair market value of
         Shares on the day before the date of the Grant or the day before the
         date on which any action is to be taken as herein provided shall be
         deemed to be the closing sale price on the next preceding day on which
         Shares were sold on any such exchange or market. In the event that the
         Shares are not listed on any such market or exchange on the applicable
         date, a valuation of the fair market value of a Share on such date
         shall be made by the Board in its sole discretion.

         "GRANT" means an award of an Option under the Plan.

         "GRANTEE" means a person who receives or holds an Option under the
         Plan.

         "OPTION" means an option to acquire Shares granted under the Plan.

         "OPTION TERMINATION DATE" is defined in Section 9(b) below.

         "PARTICIPATING COMPANY" means the Company and any Affiliate of the
         Company prior to such event and, following a public offering, means
         the Company and any Subsidiary of the Company and for the purposes of
         Sections 8 and 9(c) Orbital Sciences Corporation ("Orbital") for so
         long as Orbital owns 25% of the outstanding common shares of MDA and
         for the purposes of Section 9(c) Orbital Imaging Corporation for so
         long as it is a subsidiary of Orbital, subject to regulatory approval
         to the extent necessary.

         "PERSON" shall mean an individual, corporation, partnership,
         association or other person or entity, or any group of two or more of
         the foregoing that have agreed to act together.

         "PLAN" means this 1999 Stock Option and Incentive Plan.

         "SECURITIES LAWS" means all applicable laws, rules, regulations,
         rules, orders, and published policies relating in full or in part to
         trading in securities, to the extent legally enforceable.

         "SHAREHOLDERS AGREEMENT" means the unanimous shareholders' agreement
         dated December 22, 1999 among the CAI Entities, 597858 B.C. Ltd., as
         agent, Orbital Sciences

<PAGE>   3
                                     - 3 -

         Corporation and those persons who become parties thereto and bound
         thereto from time to time.

         "SHARES" means common shares in the capital of the Company.

         "SUBSIDIARY" has the meaning specified in the Act.

         "TERMINATING TRANSACTION" means any of the following events: (a) the
         dissolution or liquidation of the Company; (b) a reorganization,
         merger, amalgamation or consolidation of the Company with one or more
         other Persons as a result of which the Company goes out of existence
         or becomes a Subsidiary of a corporation other than a Participating
         Company immediately prior to such event or there has otherwise been an
         acquisition of control of the Company (within the meaning of the
         Income Tax Act (Canada)) by a Person other than a Participating
         Company immediately prior to such event and other than pursuant to the
         exercise of rights under the Treasury Option Agreement or the
         Secondary Option Agreement (each as defined in the Shareholders'
         Agreement) or (c) a sale of all or substantially all of the Company's
         assets to a Person or entity other than a Person that was a
         Participating Company immediately prior to such event; or (d) a sale
         to one Person (or two or more Persons acting in concert), other than
         to a Participating Company immediately prior to such event, of equity
         securities of the Company resulting in such Person or Persons holding
         Shares representing at least eighty percent (80%) or more of the
         aggregate voting power of all outstanding equity securities of the
         Company.

         "TOTAL DISABILITY" means permanent and total disability as determined
         in the sole discretion of the Board.

3.       ADMINISTRATION OF PLAN

         (a)     Administration by Board. The Plan shall be administered by the
                 Board. The Board shall have authority, not inconsistent with
                 the express provisions of the Plan, to:

                 (i)      award Grants consisting of Options to such eligible
                          persons as the Board may select;

                 (ii)     determine the timing of Grants and the number of
                          Shares subject to each Grant;

                 (iii)    determine the terms and conditions of each Grant,
                          including the nature and duration of any restriction
                          or condition (or provision for lapse thereof)
                          relating to the vesting or forfeiture of a Grant;

                 (iv)     adopt such rules and regulations as the Board may
                          deem necessary or appropriate to carry out the
                          purposes of the Plan; and

                 (v)      interpret the provisions of the Plan and of any
                          Grants made hereunder and decide any questions and
                          settle all controversies and disputes that may arise
                          in connection with the Plan.

<PAGE>   4
                                     - 4 -

                 All decisions, determinations, interpretations or other
                 actions by the Board with respect to the Plan shall be final,
                 conclusive and binding on all Persons, including the Company,
                 Participating Companies and Grantees and their respective
                 legal representatives, their successors in interest and
                 permitted assigns and upon all other Persons claiming by,
                 through, under or against any of them.

         (b)     Administration and Delegation by Committee. Subject to the Act
                 but otherwise in its sole discretion, the Board may delegate
                 some of its powers with respect to the Plan to a Committee (in
                 which case references to the Board in this Plan shall be
                 deemed to refer to the Committee, where appropriate) except
                 for the authority to make Grants under the Plan. The delegated
                 authority shall include the power to:

                 (i)      determine the timing of Grants and the number of
                          Shares subject to each Grant; and

                 (ii)     determine the terms and conditions of each Grant,
                          including the nature and duration of any restriction
                          or condition (or provision for lapse thereof)
                          relating to the vesting or forfeiture of a Grant.

4.       SHARES SUBJECT TO THE PLAN

         (a)     Availability. Subject to adjustment as provided in Section
                 4(c) below, the maximum aggregate number of Shares available
                 for issuance under the Plan will be six (6) million. The
                 number of Shares that may be so reserved and authorized for
                 issuance to any one person shall not exceed 5 percent of the
                 total issued and outstanding Shares of the Company (calculated
                 on a non-diluted basis).

         (b)     Reavailability of Options: Shares to be Delivered. If any
                 Shares covered by a Grant are not purchased or are forfeited,
                 or if a Grant otherwise terminates without delivery of any
                 Shares subject thereto, then the number of Shares so
                 terminated or forfeited shall again be available for making
                 Grants under the Plan. Shares delivered under the Plan shall
                 be authorized but unissued shares. No fractional Shares shall
                 be delivered under the Plan.

         (c)     Changes in Capital. In the event of a stock dividend, share
                 split or combination of shares, exchange of securities,
                 distribution payable in Shares, recapitalization or other
                 change in MDA's capital stock, the number and kind of
                 securities subject to Grants then outstanding or subsequently
                 awarded under the Plan, the exercise price of any outstanding
                 Option, the maximum number of Shares that may be delivered
                 under the Plan, and other relevant provisions shall be
                 appropriately adjusted by the Board, so that the proportionate
                 interest of the Grantee immediately following such event
                 shall, to the extent practicable, be the same as immediately
                 before such event.

5.       EFFECTIVE DATE

The Plan shall be effective as of the Effective Date.

<PAGE>   5
                                     - 5 -

6.       AWARD AGREEMENT

Each Grant pursuant to the Plan shall be evidenced by an Award Agreement, to be
executed by MDA and by the Grantee, in such form or forms as the Board shall
from time to time approve containing terms and conditions not inconsistent with
the terms and conditions of this Plan.

7.       OPTION EXERCISE PRICE

The Option exercise price for a Share to be issued under the Plan shall be not
less than the Fair Market Value of a Share, as determined by the Board in its
sole discretion.

8.       DISCRETIONARY OPTION PLAN

Grants may be made under the Plan to any Employee or director or officer of any
Participating Company and, subject to Securities Laws, to individuals while
employed as consultants of any Participating Company, in each case as the Board
shall determine and designate from time to time. The Board may set limits on
the number of Options that may be granted to any Person or class of Persons.

9.       VESTING AND TERMINATION OF OPTIONS

         (a)     Vesting of Discretionary Options. Subject to the other
                 provisions of this Section 9, Options granted pursuant to
                 Section 8 shall vest and become exercisable at such time and
                 in such instalments as the Board shall provide in each
                 individual Award Agreement. Notwithstanding the foregoing, the
                 Board may, in its sole discretion, accelerate the time at
                 which all or any part of an Option may be exercised.  The
                 Company will give notice to The Toronto Stock Exchange of any
                 acceleration of the vesting of any Options.

         (b)     Termination of Options. Each Option shall expire and terminate
                 on such date as the Board shall determine ("OPTION TERMINATION
                 DATE"), which in no event shall be later than ten (10) years
                 from the date of the Grant of such Option.  Upon termination
                 of an Option or portion thereof, the Grantee shall have no
                 further right to purchase Shares pursuant to such Option.

         (c)     Termination of Employment, Officership or Directorship. In the
                 event of the termination of all positions of employment,
                 officership or directorship of a Grantee with the
                 Participating Companies for any reason other than for "cause"
                 (pursuant to Section 11 below) or by reason of death or Total
                 Disability, except as may be provided in any Award Agreement
                 all Options that are not exercisable shall terminate on the
                 day after notice of termination of such position(s) is given.
                 Options that are exercisable on such date shall continue to be
                 exercisable for (A) three (3) months following the day notice
                 of termination of such position(s) was given or (B) the Option
                 Termination Date, whichever occurs first; such longer period
                 (not to exceed three (3) years following the day notice of
                 termination of such position(s) was given for any employee,
                 officer or consultant and not to exceed one (1) year following
                 the day notice of termination of such position was given for
                 any director or non-employee) as may be specified in the
                 Grantee's

<PAGE>   6
                                     - 6 -

                 Award Agreement. A Grantee who is an Employee, officer or
                 director of a Participating Company shall be deemed to have
                 incurred a termination and been given notice of termination
                 for purposes of this Section 9(c) if such Participating
                 Company ceases to be a Participating Company, unless such
                 Grantee is an Employee, officer or director of any other
                 Participating Company.

         (d)     Rights in the Event of Death. In the event that the employment
                 and/or officership and/or directorship of a Grantee with a
                 Participating Company is terminated by reason of death, all
                 Options that are not exercisable on the day prior to the
                 Grantee's death shall terminate on the date of death. Options
                 that were exercisable on the date prior to the Grantee's death
                 may be exercised by the Grantee's executor or administrator or
                 by the Person or Persons to whom the Option is transferred by
                 will or the applicable laws of descent and distribution, at
                 any time within the one-year period (or such longer period as
                 the Board may determine prior to the expiration of such
                 one-year period) beginning with the date of the Grantee's
                 death, but in no event beyond the Option Termination Date.

         (e)     Rights in the Event of Total Disability. In the event that the
                 employment and/or directorship of a Grantee with a
                 Participating Company is terminated by reason of Total
                 Disability, all Options that are not exercisable shall
                 terminate on the employment/officership/directorship
                 termination date. Options that were exercisable on the
                 employment/officership/directorship termination date may be
                 exercised at any time within the one-year period (or such
                 longer period as the Board may determine prior to the
                 expiration of such one-year period) beginning with the
                 commencement of the Grantee's Total Disability (as determined
                 by the Board) but in no event beyond the Option Termination
                 Date.

         (f)     Leave of Absence. An approved leave of absence shall not
                 constitute a termination of employment under the Plan. An
                 approved leave of absence shall mean an absence approved
                 pursuant to the policy of a Participating Company for military
                 leave, sick leave, or other bona fide leave, not to exceed
                 ninety (90) days or, if longer, as long as the Employee's
                 right to re-employment is guaranteed by contract, statute or
                 the policy of a Participating Company.  Notwithstanding the
                 foregoing, in no event shall an approved leave of absence
                 result in an Option surviving beyond the Option Termination
                 Date.

10.      EXERCISE OF OPTIONS: NON-TRANSFERABILITY

         (a)     Exercise of Options. Vested Options may be exercised, in whole
                 or in part, by giving written notice of exercise to the
                 Company, which notice shall specify the number of Shares to be
                 purchased, shall be accompanied by payment in full of the
                 purchase price therefor in accordance with Section 10(b) below
                 and the full amount of any federal, provincial, state and/or
                 withholding and other employment taxes applicable to such
                 person as a result of such exercise and shall be accompanied
                 by signed copies of the document(s) referred to in Section
                 10(c) below. No Shares shall be issued pursuant to the
                 exercise of an Option until full payment of the purchase price
                 and applicable withholding tax has been made to

<PAGE>   7
                                     - 7 -

                 the Company. Upon receipt of such amounts, the Company shall
                 issue forthwith share certificates representing the Shares
                 purchased pursuant to the exercise of the Option. Until the
                 share certificates representing such Shares have been issued
                 by the Company, the Grantee shall have no right to vote or
                 receive dividends on or exercise any other rights as a
                 shareholder, with respect to optioned Shares notwithstanding
                 the exercise of the Option.

         (b)     Payment. Full payment of the purchase price for the Shares as
                 to which an Option is being exercised shall be made in
                 Canadian dollars in cash or by cheque in a form satisfactory
                 to the Company.

         (c)     Non-Transferability of Options. No Option may be transferred
                 other than by will or; by the laws of descent and
                 distribution, and during a Grantee's lifetime an Option may be
                 exercised only by the Grantee.

11.      FORFEITURE CONDITIONS

The Board may provide in an Award Agreement for conditions of forfeiture for
"cause" of any Grantee's rights with respect to a Grant. "Cause" shall include
engaging in an activity that is detrimental to the Company including, without
limitation, criminal activity, failure to carry out the duties assigned to the
Grantee as a result of incompetence or wilful neglect, conduct casting such
discredit on the Company as in the opinion of the Board justifies termination
or forfeiture of the Grant, or such other reasons, including the existence of a
conflict of interest, as the Board may determine "Cause" is not limited to
events that have occurred prior to the Grantee's termination of service, nor is
it necessary that the Board's finding of "cause" occur prior to such
termination.  If the Board determines, subsequent to a Grantee's termination of
service but prior to the exercise of any rights under a Grant, that either
prior or subsequent to the Grantee's termination the Grantee engaged in conduct
that would constitute "cause", then the rights with respect to a Grant shall be
forfeited.

12.      COMPLIANCE WITH SECURITIES LAWS

         (a)     The delivery of Shares upon the exercise of an Option shall be
                 subject to compliance with (i) applicable federal, provincial
                 and state laws and regulations, including Securities Laws,
                 (ii) all applicable listing requirements of any national
                 securities or stock exchange or national market system on
                 which the Shares are then listed or quoted, and (iii) Company
                 counsel's approval of all other legal matters in connection
                 with the issuance and delivery of such Shares. The Company may
                 also require, as a condition to exercise of the Option, that
                 the Grantee make such representations or agreements as the
                 Company may consider appropriate to ensure compliance with
                 applicable Securities Laws.

         (b)     All share certificates evidencing Shares issued pursuant to
                 exercised Options shall bear an appropriate legend restricting
                 transfer.

         (c)     It is the intent of the Company that Grants pursuant to the
                 Plan and the exercise of Options granted hereunder will be
                 made pursuant to exemptions from applicable Securities Laws
                 and stock exchange rules. To the extent that any provision of
                 the

<PAGE>   8
                                     - 8 -

                 Plan or action by the Board or any Option does not comply with
                 the requirements of applicable Securities Laws and/or stock
                 exchange rules, it shall be deemed inoperative to the extent
                 permitted by law and deemed advisable by the Board, and shall
                 not affect the validity of the Plan, and the Board may make
                 any amendments necessary to the Plan or any Option for such
                 purposes.

13.      MERGERS, ETC.

Except as otherwise provided herein, all Options outstanding under the Plan
shall accelerate and become immediately exercisable for a period of not less
than fifteen days (or such longer period as the Board may prescribe)
immediately prior to the scheduled consummation of a Terminating Transaction,
which exercise shall be (i) conditioned upon the consummation of the
Terminating Transaction and (ii) effective only immediately before the
consummation of such Terminating Transaction. Upon consummation of any such
event, the Plan and all outstanding but unexercised Options shall terminate.
Notwithstanding the foregoing, to the extent provision is made in writing in
connection with such Terminating Transaction for the continuation of the Plan
and the assumption of Options under the Plan theretofore granted, or for the
substitution for such Options of new Options covering the shares of a successor
company, or a parent or subsidiary thereof, with appropriate adjustments as to
the number and kinds of shares or units and exercise prices, then the Plan and
Options theretofore granted shall continue in the manner and under the terms so
provided, and the acceleration and termination provisions set forth in the
first two sentences of this Section 13 shall be of no effect. The Company shall
send written notice of a Terminating Transaction to all individuals who hold
Options not later than fifteen days prior to the consummation of the
Terminating Transaction.

14.      REPURCHASE OF SHARES AND OPTIONS

         (a)     At any time and from time to time prior to the listing of the
                 Shares on a national securities or stock exchange or a
                 national market system, the Company (or its designee) shall
                 have, and a Grantee hereby grants to the Company (or its
                 designee), an irrevocable right and option to purchase from a
                 Grantee (or the Grantee's legal representative) all or any
                 portion of the Options of the Grantee and any Shares acquired
                 by the Grantee pursuant to the exercise of Options under this
                 Plan. The Company may exercise such right and option by
                 delivering to the Grantee a notice specifying the number of
                 Shares and/or Options to be purchased and the Fair Market
                 Value of a Share. The Company may assign its right and option
                 to purchase a Grantee's Shares and/or Options.

         (b)     The price payable by the Company for Shares acquired pursuant
                 to this Section 14 shall be the Fair Market Value of the
                 Shares and the price payable by the Company for Options
                 acquired pursuant to this Section 14 shall be the amount, if
                 any, by which the Fair Market Value of a Share exceeds the
                 exercise price per Share of such Option multiplied by number
                 of Shares issuable upon exercise.

15.      TAXES

<PAGE>   9
                                     - 9 -

The Board shall make such provisions and take such steps as it deems necessary
or appropriate for the withholding of any federal, provincial, state, local and
other tax required by law to be withheld by the Company with respect to the
grant or exercise of Options, or with respect to the disposition of Shares
acquired pursuant to the Plan, including, but without limitation, the deduction
of the amount of any such withholding tax from any compensation or other
amounts payable to a Grantee, or requiring a Grantee (or the Grantee's
beneficiary or legal representative), as a condition of a Grant or exercise of
an Option, to pay to the appropriate Participating Company any amount required
to be withheld, or to execute such other documents as the Board deems necessary
or desirable in connection with the satisfaction of any applicable withholding
obligation.

16.      EMPLOYMENT RIGHTS

Neither the adoption of the Plan nor the making of any Grants shall confer upon
any Grantee any right to continue as an Employee, officer or director of any
Participating Company or affect in any way the right of any Participating
Company to terminate the Employee, officer or director at any time. Except as
otherwise specifically provided by the Board in any particular case, the loss
of existing or potential profit in Grants under this Plan shall not constitute
an element of damages in the event of termination of the relationship of a
Grantee even if the termination is in violation of an obligation of the Company
to the Grantee by contract or otherwise.

17.      CORPORATE ACTION

Nothing contained in the Plan or in an Award Agreement shall be construed so as
to prevent any Participating Company from taking corporate action which is
deemed by the Company or the Participating Company, acting in good faith, to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any outstanding Grant, provided that the Company
shall not undertake any such corporate action with the intent to adversely
prejudice any outstanding Grant.

18.      AMENDMENT OR TERMINATION OF PLAN

         (a)     Neither the adoption of the Plan nor the making of any Grants
                 shall affect the Company's right to grant Options outside of
                 the Plan to any Person that is not subject to the Plan, to
                 issue to such Persons Shares as a bonus or otherwise, or to
                 adopt other plans or arrangements under which Shares may be
                 issued, provided that any other plan or arrangements shall be
                 subject to all regulatory approvals and shareholders approval
                 if required.

         (b)     The Board may at any time discontinue Grants under the Plan.
                 Subject to the approval of The Toronto Stock Exchange, and if
                 required, approval of shareholders of the Company, with the
                 consent of the Grantee, the Board may at any time cancel an
                 existing Grant in whole or in part and make any other Grant
                 for such number of Shares as the Board specifies. Subject to
                 the approval of The Toronto Stock Exchange, and if required,
                 approval of shareholders of the Company, the Board may at any
                 time, prospectively or retroactively, amend the Plan or any
                 outstanding Grant for the purpose of satisfying any changes in

<PAGE>   10
                                     - 10 -

                 applicable tax laws or regulations or for any other purpose
                 that may at the time be permitted by law, or may at any time
                 terminate the Plan as to further Grants, but no such amendment
                 shall materially adversely affect the rights of any Grantee
                 (without the Grantee's consent) under any outstanding Grant.
                 In addition, the Board may at any time, prospectively or
                 retroactively, amend the Plan without the consent of the
                 Grantees for the purpose of complying with the requirements of
                 any national securities or stock exchange on which the Shares
                 are to be listed.

19.      GENERAL PROVISIONS

         (a)     Titles and Headings. Titles and headings of sections of the
                 Plan are for convenience of reference only and shall not
                 affect the construction of any provision of the Plan.

         (b)     Governing Law. The Plan shall be governed by, interpreted
                 under and construed and enforced in accordance with the
                 internal laws, and not the laws pertaining to conflicts or
                 choice of laws, of the Province of British Columbia and the
                 federal laws of Canada applicable therein.

         (c)     Severability. If any provision of the Plan or any Award
                 Agreement shall be determined to be illegal or unenforceable
                 by any court of law in any jurisdiction, the remaining
                 provisions hereof and thereof shall be severable and
                 enforceable in accordance with their terms, and all provisions
                 shall remain enforceable in any other jurisdiction.

The Plan was duly adopted by the board of directors of the Company as of
December 22, 1999.

                                   -----------------------------------
                                   Susan Herlick
                                   Assistant Secretary of the Company

The Plan was duly approved by the shareholders of the Company on December 22,
1999.

                                   ----------------------------------
                                   Susan Herlick
                                   Assistant Secretary of the Company

<PAGE>   11
                           FORM OF NOTICE OF EXERCISE

MacDonald, Dettwiler and Associates Ltd.
13800 Commerce Parkway
Richmond, B.C. V6V 2J3

                       Re: Notice of Exercise of Options

Pursuant to the terms of the 1999 Stock Option and Incentive Plan award
agreement (the "Agreement") dated _____ between MacDonald, Dettwiler and
Associates Ltd. (the "Company") and me, I hereby exercise my options to
purchase ________________ common shares of the Company, at the Exercise Price
(as specified in the Agreement) of $___________________________________ Cdn.
per share.  Enclosed herewith is a cheque in the amount of
$______________________________________ Cdn. payable to MacDonald, Dettwiler
and Associates Ltd. in full payment of the purchase price for such shares.
Please cause any shares purchased hereby to be issued in
_____________________________________ certificate(s) of   common shares each,
registered in my name.

I understand that the certificate(s) for any common shares of the Company
issuable to me pursuant to this Notice may be forwarded to me by registered
mail to the following address:

                 Address:
                            ------------------------------------

                            ------------------------------------

Date:
     -------------------------                 ------------------------------
                                               Signature

                                               ------------------------------
                                               Print Name

<PAGE>   12
                                    REVISED
                    MACDONALD, DETTWILER AND ASSOCIATES LTD.
                      1999 STOCK OPTION AND INCENTIVE PLAN

                                AWARD AGREEMENT

MACDONALD, DETTWILER AND ASSOCIATES LTD. (the "Company"), hereby grants to the
grantee named below (the "Grantee"), an option (the "Option") to purchase, in
accordance with and subject to the terms, conditions and restrictions of this
Agreement together with the provisions of the 1999 Stock Option and Incentive
Plan (the "Plan") of the Company, the number of common shares of the Company
(the "Shares") at the price per Share set forth below:

         Name of Grantee:
                          ------------------------------------------------

         Date of Grant:
                        --------------------------------------------------

         Number of Shares Subject to Option:
                                             -----------------------------

         Exercise Price:
                         -------------------------------------------------

1.       The terms and conditions of the Plan are hereby incorporated by
         reference as terms and conditions of this Agreement and all
         capitalized terms used herein shall, unless expressly defined in a
         different manner, have the meanings ascribed thereto in the Plan.

2.       (a)     Each Option shall be exercisable in the instalments as set
                 forth below:

                 First Instalment
                                  -----------------------------

                 Second Instalment
                                  -----------------------------

                 Third Instalment
                                 ------------------------------

                 Fourth Instalment
                                  -----------------------------

         (b)     In no event shall the Option granted hereunder be exercisable
                 after the expiration of the Option Termination Date.

         (c)     No fractional Shares shall be issued on the exercise of the
                 Option granted hereunder. If, as a result of any adjustment to
                 the number of Shares issuable on the exercise of the Option
                 granted hereunder pursuant to the Plan, the Grantee would be
                 entitled to receive a fractional Share, the Grantee shall have
                 the right to acquire only the adjusted number of full Shares
                 and no payment or other adjustment will be made with respect
                 to the fractional Shares so disregarded.

<PAGE>   13
                                    - 2 -

3.       Each notice relating to the Option, including the exercise thereof,
         shall be in writing. All notices to the Company shall be delivered
         personally or by prepaid registered mail to its registered office and
         all notices to the Grantee shall be delivered in the same manner to
         the address of the Grantee on file with the Company. Either the
         Company or the Grantee may designate a different address by written
         notice to the other. Such notices shall be deemed to be received, if
         delivered personally, on the date of delivery, and if sent by prepaid,
         registered mail, on the fifth (5th) business day following the date of
         mailing. Any notice given by either the Grantee or the Company

4.       If the issuance of Shares on the exercise of the Option may, in the
         opinion of the Company, conflict or be inconsistent with any
         applicable law or regulation of any governmental agency having
         jurisdiction or national securities or stock exchange on which the
         Shares are listed, the Company reserves the right to refuse to issue
         such Shares for so long as such conflict or inconsistency remains
         outstanding.

5.       During the lifetime of the Grantee, the Option granted pursuant to
         this Agreement may only be exercised by the Grantee personally and no
         assignment or transfer of the Option whether voluntary, involuntary,
         by operation of law or otherwise, shall vest any interest or right in
         such Option whatsoever in any assignee or transferee, and immediately
         upon any assignment or transfer or any attempt to make the same, the
         Option granted hereunder shall terminate and be of no further force or
         effect.

6.       The Grantee hereby agrees that:

         (a)     any rule, regulation or determination, including the
                 interpretation by the Board of the Plan, the Option granted
                 hereunder and the exercise thereof, shall be final and
                 conclusive for all purposes and binding on all Persons,
                 including the Company and the Grantee; and

         (b)     the grant of the Option shall not affect in any way the right
                 of the Company or any Affiliated Company to terminate the
                 employment of the Grantee.

         (c)     if the Grantee is not already a party to the Shareholders
                 Agreement, the Grantee, at or before the time of the exercise
                 of an Option, must sign and deliver to the Corporation an
                 agreement substantially in the form of Schedule "A" to the
                 Shareholders Agreement agreeing to be bound thereby as if he
                 or she were an original signatory thereto.

<PAGE>   14
                                    - 3 -

7.       This Agreement has been made in and shall be construed under and in
         accordance with the laws of the Province of British Columbia and the
         laws of Canada applicable therein.

                           MACDONALD, DETTWILER AND ASSOCIATES LTD.

                                Per:
                                     ----------------------------
                                Name:
                                Title:

I have read the foregoing Agreement and hereby accept the Option in accordance
with and subject to the terms and conditions of such Agreement and the Plan.  I
understand that I may review the complete text of the Plan by contacting the
Secretary or Assistant Secretary of the Company.  I agree to be bound by the
terms and conditions of the Plan governing the award made hereby and by the
actions of the Board in respect thereof.

----------------------------             ----------------------------
Date Accepted                            Participant's Signature

                                         ----------------------------
                                         Participant's Name
                                         (Please Print)

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