Document:

EX-10.1

WAIVER

WAIVER (this “Waiver”) dated as of August 30, 2007, with respect to the Credit
Agreement referred to below, between The Shaw Group Inc. (the “Borrower”) and BNP Paribas,
as administrative agent (in such capacity, the “Agent”) pursuant to authority granted by
the Required Lenders.

Reference is made to the Credit Agreement dated as of April 25, 2005 among the Borrower, the
“Guarantors” party thereto, the “Lenders” party thereto and the Agent (as amended by Amendment No.
1 dated as of October 3, 2005, Amendment No. 2 dated as of February 27, 2006, Amendment No. 3 dated
as of June 20, 2006 and Amendment No. 4 dated as of October 13, 2006, and as modified and
supplemented and in effect from time to time, the “Credit Agreement”). Capitalized terms
used but not defined herein shall have their respective meanings under the Credit Agreement.

The Borrower and the Lenders have entered into a Waiver dated as of July 16, 2007 between the
Borrower and the Agent (pursuant to authority granted by the Required Lenders) (the “Existing
Waiver”), pursuant to which the Required Lenders waived compliance by the Borrower with the 45
day period set forth in Section 6.1(b) of the Credit Agreement, with respect to the furnishing by
the Borrower of certain financial statements relating to its fiscal quarters ended February 28,
2007 and May 31, 2007. The Borrower has requested the Lenders to provide a further extension of
the deadline for delivery of such financial statements under the Existing Waiver and has advised
the Lenders that it expects to furnish such financial statements by November 30, 2007. The
Borrower has also advised the Lenders that it will restate the financial statements furnished to
the Lenders for the fiscal year ending August 31, 2006 (including each fiscal quarter in such
fiscal year) and for the first fiscal quarter of 2007, and that the Borrower’s compliance with the
financial covenants under the Credit Agreement during such periods is not expected to be affected
by the restatement of such financial statements.

In recognition of the foregoing, solely with respect to the Borrower’s fiscal quarters ended
February 28, 2007 and May 31, 2007, the Agent (acting with the written consent of the Required
Lenders) hereby waives compliance by the Borrower with the 45 day period set forth in Section
6.1(b) of the Credit Agreement (as extended by the Existing Waiver); provided that the
Borrower covenants and agrees to furnish to the Lenders its unaudited consolidated financial
statements required under Section 6.1(b) of the Credit Agreement (and accompanied by the other
certificates and information required under Sections 6.1(d), 6.1(k) and 6.1(l) of the Credit
Agreement) by November 30, 2007. Solely with respect to the financial statements furnished to the
Lenders for the fiscal year ending August 31, 2006 (including each fiscal quarter in such fiscal
year) and for the first fiscal quarter of 2007, the Agent (acting with the written consent of the
Required Lenders) hereby waives compliance by the Borrower with Section 6.1(a) and 6.1(b) of the
Credit Agreement to the extent that such financial statements were not prepared in accordance with
generally accepted accounting principles as in effect at such time.

The Borrower represents and warrants to the Lenders that, after giving effect to this Waiver,
(i) no Default or Unmatured Default shall have occurred from the date of the Borrower’s most recent
audited financial statements furnished pursuant to Section 6.1(a) to and including the date hereof
and (ii) the Borrower does not believe that any Default or Unmatured Default will be revealed to
have occurred during the fiscal year ending August 31, 2006 or during the first fiscal quarter of
2007 when its financial statements for such periods are restated.

This Waiver shall become effective upon (i) execution of one or more counterparts hereof by
the Borrower and by the Agent pursuant to authority granted by the Required Lenders and (ii)
payment by the Borrower of such fees and expenses as the Borrower shall have agreed to pay to any
Lender or the Agent in connection herewith (including, without limitation, legal fees and expenses
of counsel to the Agent); provided, that this Waiver shall cease to be in effect if (but
only if) the Borrower (a) fails to furnish to the Lenders the financial statements, certificates
and information referred to above by November 30, 2007 or (b) the restatement of the Borrower’s
financial statements referred to above reveal that the Borrower failed to satisfy any financial
covenant during the related period or if such restatement of the Borrower’s financial statements is
not furnished to the Lenders by November 30, 2007.

This Waiver contains the final and complete integration of all prior expressions by the
Borrower and the Lenders with respect to the subject matter hereof and shall constitute the entire
agreement between the Borrower and the Lenders with respect to the subject matter hereof
superseding all prior oral or written understandings (including the Existing Waiver). The
substance of the waivers contained herein are limited precisely as written and shall not be deemed
to be a waiver of any other provision of the Credit Agreement. Except as expressly provided
herein, the Credit Agreement shall remain unchanged and in full force and effect. This Waiver may
be executed in counterparts, and delivery of a counterpart signature page to this Waiver by
facsimile shall be effective as delivery of an original manually executed counterpart of this
Waiver. This Waiver shall be governed by and construed in accordance with the internal laws of the
State of New York.

1

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed and
delivered as of the day and year first above written.

THE SHAW GROUP INC.

By: /s/ Dirk J. Wild

Name: Dirk J. Wild

Title: Senior Vice President,

Chief Accounting Officer and

Interim Chief Financial Officer

AGENT:

BNP PARIBAS, as Agent

	 	 	 
	By:

	 	/s/ Jordan Schweon
	
 
	 	 
	
 
	 	Name: Jordan Schweon

Title: Managing Director
	By:

	 	/s/ Andrew Kirby
	
 
	 	 

	 	 	Name: Andrew Kirby

Title: Managing Director

2EX-10.1

EXECUTION VERSION

LOAN AND SECURITY AGREEMENT

between

VALLEY NATIONAL BANK

and

LORAL SKYNET CORPORATION

as of September 4, 2007

1

This is a LOAN AND SECURITY AGREEMENT (“Agreement”) made as of September 4, 2007
between VALLEY NATIONAL BANK (“Lender”), having offices at 275 Madison Avenue, New York,
New York 10016 and LORAL SKYNET CORPORATION a Delaware corporation (“Borrower”),
having a principal place of business at 600 Third Avenue, New York, New York 10016.

W I T N E S S E T H:

WHEREAS, Borrower has requested that Lender make a bridge loan to Borrower; and

WHEREAS, Lender is willing to make such loan on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Lender hereby agree as follows:

1. DEFINITIONS. For the purposes of this Agreement, the following terms shall have the meanings
set forth below, provided however, any capitalized term used, but not defined herein shall be
defined as set forth in the UCC.

“Account” — all items described in the UCC definition thereof and all of the
following, whether or not so described (in all cases whether now existing or hereafter created):
all obligations of any kind at any time due or owing to Borrower and all rights of Borrower to
receive payment or any other consideration (whether classified under the UCC or the law of any
other state as accounts, accounts receivable, contract rights, chattel paper, General Intangibles,
or otherwise) including without limitation invoices, contract rights, accounts receivable, general
intangibles, choses-in-action, notes, drafts, acceptances, instruments and all other debts,
obligations and liabilities in whatever form owing to Borrower from any Person, together with all
security for any thereof, and all of Borrower’s rights to goods sold (whether delivered,
undelivered, in transit or returns), represented by any thereof, together with all proceeds and
products of any of the foregoing.

“Affiliate” — any Person, (i) which directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with, any other Person, or
(ii) which beneficially owns or holds ten (10%) percent or more of any class of the voting
securities or other equity interest of any other Person.

“Agreement” — this Loan and Security Agreement, all exhibits and schedules hereto and
all extensions, renewals, amendments, modifications, substitutions and replacements hereto and
hereof.

“Anti Terrorism Laws” shall mean any statute or regulation relating to terrorism or
money laundering, including Executive Order No. 13224, the USA Patriot Act, and those laws
administered by the United States Treasury Department Office of Foreign Asset Control (as any of
the foregoing may from time to time be amended, renewed, extended or replaced).

“Blocked Person” shall mean: (a) a Person that is listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224; (b) a Person owned or
controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224; (c) a Person or entity with
which any Lender is prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law; (d) a Person or entity that commits, threatens or conspires to commit or
supports “terrorism” as defined in Executive Order No. 13224; (e) a Person or entity that is named
as a “specially designated national” on the most current list published by the U.S. Treasury
Department Office of Foreign Asset Control at its official website or any replacement website or
other replacement official publication of such list, or (f) a Person who is affiliated or
associated with a Person listed above.

“Business Day” — any day, other than a Saturday, Sunday or other day on which banks
located in the State of New York are required or permitted to close.

“CD” – the certificate of deposit issued for the account of Corporate Guarantor by
Lender in the initial principal sum of One Hundred Forty Two Million Seven Hundred Twenty Thousand
Six Hundred Fifty Nine Dollars ($142,720,659.00), such amount being equal to the sum of the
principal amount of the Loan plus accrued interest (computed as provided in this Agreement) on the
Loan from and including September 4, 2007 through but not including December 17, 2007.

“CD Rate” – a per annum rate of 3.85% which shall be paid by Lender on the principal
balance of the CD.

“Collateral” — all the following, wherever located and whether now existing or
hereafter created or arising and whether now owned or hereafter acquired by Borrower: Accounts,
Equipment, General Intangibles, Goods, Inventory, and Investment Property, all documents of title,
policies or certificates of insurance, securities, chattel paper and other documents and
instruments evidencing or pertaining to any thereof, all claims of Borrower against third parties
for loss of or damage to, or otherwise relating to, any thereof, and all accessions and additions
to, replacements and substitutions for, and proceeds and products of, all of the forgoing.

“Contract Rate” — the CD Rate plus one-quarter of one percent (0.25%) per annum.

“Corporate Guarantor” – Loral Space & Communications, Inc., a Delaware corporation.

“Default Rate” — a rate of interest two percent (2%) per annum in excess of the rate
in effect on the date on which the Event of Default occurs.

“Effective Date” –September 4, 2007, notwithstanding the fact that this Agreement may
have been executed and delivered on an earlier date.

“Encumbrance” — any security interest, mortgage, charge, claim, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority or
other security agreement or preferential arrangement of any kind or nature whatsoever (including,
without limitation, any conditional sale or other title retention agreement, any capitalized lease
having substantially the same economic effect as any of the foregoing, and the filing of any
financing statement under the UCC) in, upon, or against Borrower or any asset of Borrower, whether
or not voluntarily given.

“Environmental Claim” — any claim, suit, notice, order, demand or other communication
made by any Person, including Borrower, with respect to Borrower or any of its properties, whether
owned or leased, that: (i) asserts a violation of an Environmental Law; (ii) asserts a liability
under an Environmental Law; (iii) orders investigations, corrective action, remediation or other
response under an Environmental Law; (iv) demands information under an Environmental Law; (v)
alleges personal injury or property damage resulting from Hazardous Substances; or (vi) alleges
that there is or may be contamination.

“Environmental Law” — any Governmental Rule concerning protection or regulation of the
discharge of substances into the environment, including but not limited to those concerning air
emissions, water discharges and treatment, storage tanks, and the handling, generation, treatment,
storage and disposal of waste materials, chemical substances, pollutants, contaminants, toxic
substances, pathogens, radioactive materials or hazardous substances of any kind, whether solid,
liquid or gaseous, including without limitation the Resource Conservation and Recovery Act of 1976,
42 U.S.C. §6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq.; the
Clean Air Act, 42 U.S.C. §7401 et seq.; the National Environmental Policy Act, 42 U.S.C. 4321; the
Refuse Act, 33 U.S.C. §401 et seq.; the Hazardous Materials Transportation Act of 1975, 49 U.S.C.
§§1801-1812; the Toxic Substances Control Act, 15 U.S.C. §2601 et seq.; the Federal Insecticide,
Fungicide and Rodenticide Act, 7 U.S.C. §136 et seq.; the Safe Drinking Water Act, 42 U.S.C. §300
et seq.; and each as amended as an how or hereinafter in effect, and their state and local
counterparts or equivalents, including any regulations promulgated thereunder.

“Equipment” — all items described in the UCC definition thereof and all of the
following, whether or not so described (in all cases whether now owned or hereafter acquired by
Borrower and wherever located): all of Borrower’s equipment, machinery, furniture, fixtures, motor
vehicles, parts, supplies and tools, and all other tangible personal property similar to any of the
foregoing, and all repairs, modifications, alterations, replacements, additions, controls and
operating accessories therefor and proceeds and products thereof.

“ERISA” — as defined in Section 5.15.

“Event of Default” — as defined in Section 9.

“Executive Order No. 13224” — Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended,
amended or replaced.

“GAAP” — generally accepted accounting principles in effect in the United States of
America, consistently applied from period to period.

“General Intangibles” — all items described in the UCC definition thereof and all of
the following whether or not so described, owned by Borrower or in which Borrower has any right,
title or interest, whether now owned or in existence or hereafter created or acquired: any chose
in action, cause of action, business records, deposit account, invention, design, patent, patent
application, trademark, trademark application, service mark, service mark application, trade name,
trade name application, trade secret, goodwill, copyright, copyright application, registration,
license, franchise, customer list, tax refund claim, computer program, claims under guaranties,
security interests, rights to indemnification or any other intangible property of any kind or
nature (other than an Account).

“Governmental Authority” — any (i) nation, state, government, jurisdiction or
jurisdictional authority (domestic, foreign or international), any political subdivision thereof,
and any governmental, quasi-governmental, judicial, public, statutory, administrative or regulatory
body, agency, department, bureau, authority, court, commission, board, office, instrumentality,
administrative tribunal or other entity of any of the foregoing and any official thereof and (ii)
any arbitrator, arbitration tribunal or other non-governmental entity which has jurisdiction over
Borrower as a result of (A) the consent of Borrower or (B) being vested with such jurisdiction by
any Governmental Authority.

“Governmental Rule” — any constitutional provision, law, statute, code, act, rule,
regulation, permit, license, treaty, ordinance, order, writ, injunction, decree, judgment,
guideline, award, standard, directive, decision, determination, demand or holding of any
Governmental Authority, whether in existence on the date hereof or whether issued, enacted or
adopted hereafter, and any change therein or in the interpretation or application thereof following
the date hereof.

“Guaranty” – that certain Continuing Corporate Guaranty, in form and substance
acceptable to Lender, guaranteeing the Obligations, executed and delivered contemporaneously
herewith by Corporate Guarantor.

“Inventory” — all items described in the UCC definition thereof and all of the
following, whether or not so described (in all cases whether now owned or hereafter acquired by
Borrower and wherever located): all goods, merchandise or other personal property held by Borrower
for sale or lease or to be furnished under labels and other devices, names or marks affixed thereto
for purposes of selling or identifying the same or the seller or manufacturer thereof, and all
right, title and interest of Borrower therein and thereto; all raw materials, work or goods in
process; and all materials and supplies of any kind or description used or usable in connection
with the manufacture, packaging, shipping, advertisement, sale or finishing of any of the
foregoing, together with all proceeds and products of any of the foregoing.

“Investment Property” shall mean and include all of Borrower’s now owned or hereafter
acquired securities (whether certificated or uncertificated), securities entitlements, securities
accounts, commodities contracts and commodities accounts.

“Loan” — the Time Loan made pursuant to Section 2.1 of this Agreement.

“Material Adverse Effect” a material adverse effect upon (a) the business or
financial condition of Borrower, (b) the ability of Borrower to repay the Obligations when due or
(c) Bank’s security interest in the Collateral.

“Note” – that certain Secured Time Note executed by Borrower contemporaneously
herewith in the amount of the Loan.

“Obligations” — all principal of and interest on the Loan, all fees and other sums
payable by Borrower under the terms of this Agreement or the Note, and all out-of-pocket costs and
expenses incurred by Lender in connection with this Agreement and the Related Documents at any
time, including, but not limited to the expenses and reasonable fees of Lender’s counsel, whether
of outside counsel or the allocated cost of Lender’s in-house counsel.

“Permitted Encumbrance” — any or any combination of the following:

(a) The liens and security interests in the Collateral granted to Lender;

(b) Liens for taxes, assessments, governmental charges or levies on Borrower or any of
Borrower’s properties, but only if such taxes, assessments, governmental charges or levies (i) are
at the time due and payable or if they can thereafter be paid without penalty or are being
contested in good faith by appropriate proceedings diligently conducted and with respect to which
Borrower has created adequate reserves; or (ii) are not pursuant to any Environmental Law;

(c) Pledges or deposits to secure payment of workers’ compensation obligations, unemployment
insurance, deposits or indemnities to secure public or statutory obligations or for similar
purposes;

(d) Mechanics’, carriers’, workmen’s, repairmen’s and other similar statutory liens incurred
in the ordinary course of Borrower’s business, so long as the liability secured is not overdue or,
if overdue, is being contested in good faith by appropriate actions or proceedings diligently
conducted with respect to which Borrower has created adequate reserves or has adequate insurance
protection; and

(e) Encumbrances existing on the date hereof and listed on Schedule 5.14.

“Person” — any individual, partnership, corporation, association, trust, business
trust, joint venture, joint stock company, limited liability company, limited liability
partnership, limited partnership, unincorporated organization or enterprise or Governmental
Authority.

“Pledge” – the Pledge Agreement in form and substance acceptable to Lender executed
contemporaneously herewith by Corporate Guarantor, pledging the CD as collateral for the Guaranty
and the Obligations.

“Related Documents” – the Note, the Guaranty and the Pledge.

“Senior Notes” – Borrower’s 14% Senior Secured PIK Notes due 2015.

“Termination Date” – the earlier of (a) December 17, 2007, or (b) the date on which
all or substantially all the assets of Borrower are transferred to Telesat Canada or an Affiliate
in conjunction with the direct or indirect acquisition by Corporate Guarantor and other Persons of
Telesat Canada.

“Trading with the Enemy Act” — the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any enabling legislation
or executive order relating thereto.

“UCC” — the Uniform Commercial Code as in effect from time to time in the State of New
York, except with respect to Collateral located outside of the State of New York, and as to issues
of perfection and exercise of remedies only, the Uniform Commercial Code as in effect from time to
time in the jurisdiction wherein the Collateral is located.

“USA PATRIOT Act” — the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.

2 TIME LOAN

2.1 Loan. On the Effective Date, provided that on such date no Event of Default shall
have occurred and be continuing, Lender shall make a singe advance to Borrower in the sum of One
Hundred Forty One Million Fifty Thousand Dollars ($141,050,000.00) and Borrower hereby agrees to
repay same pursuant to the terms and conditions set forth below (“Time Loan”). The Time
Loan shall be evidenced by the Secured Time Loan Note.

2.2 Term of Repayment. The Time Loan shall be repaid, in full, on the Termination
Date, together with all accrued interest and all accrued and unpaid fees and charges, if any.

2.3 Application of Payments. Each payment of principal or interest or prepayment of
principal, howsoever designated by Borrower, shall be applied first on account of accrued and
unpaid interest, with the excess, if any, to be applied to the unpaid principal balance of the Time
loan.

2.4 Prepayment. If Borrower so elects, the Loan may be prepaid in full or in part at
any time without penalty or premium, provided however, partial prepayments shall be (a) not less
than and in integral multiples of One Million Dollars ($1,000,000.00), and (b) paid together with
all accrued and unpaid interest on the amount being prepaid through the date of payment.

2.5 Disbursement. Borrower hereby requests and directs and Lender hereby agrees that
all of the proceeds of the Loan shall be wired on the Effective Date in accordance with the
following wire instructions:

Bank of New York

ABA No.: 021000018

BBK — ATTN: CORPORATE TRUST AGENCY/GLA 111-565

RE: Loral Skynet Corporation

ACCOUNT NO.: 222773

2.6 Use of Proceeds. The proceeds of the Loan shall be utilized to pay Borrower’s
redemption obligations for the Senior Notes.

	3	 	ADDITIONAL PROVISIONS RE: INTEREST, FEES AND PAYMENT

3.1 Interest Rate/Payment. Interest shall accrue on the outstanding principal balance
of the Loan at the Contract Rate and shall be due and payable, in full, on the Termination Date.

3.2 Interest Calculation; Lawful Rate. Interest on the Loan shall be calculated on a
daily basis upon the unpaid principal balance, with each day representing 1/360th of a year. If
the interest rate calculated in accordance with any provision of this Agreement for the Loan would
at any time exceed the maximum permitted by any law then applicable to such Loans, then for such
period as such rate would exceed the maximum permitted by such law (and no longer) the rate of
interest payable on the Loan shall be reduced to the maximum permitted by such law.

3.3 Default Rate. Upon the occurrence and during the continuance of any Event of
Default hereunder, the Loan shall, at the option of Lender, bear interest at the Default Rate.

3.4 Non-Business Days. If any payment pursuant to this Agreement or any of the
Related documents shall be stated to be due on a day other than a Business Day, such payment may be
made on the next succeeding Business Day and such extension of time shall be included in
computation of the interest or other payment due.

3.5 Reimbursement of Increased Cost to Lender. If any law, regulation or guideline,
or change in any law, regulation or guideline or in the interpretation thereof, or any order or
ruling by any Governmental Authority, or compliance by the Bank with any Governmental Rule of any
such Governmental Authority, shall impose, modify, or deem applicable to Lender any reserve,
capital, special deposit or other requirement or condition in respect of this Agreement or the
Loan, which results in an increased cost or reduced benefit to Lender in maintaining the Loan (as
determined by reasonable allocation of the aggregate of such increased costs or reduced benefits to
Lender resulting from such event), then Borrower shall pay to Lender from time to time, upon
demand, additional amounts sufficient to compensate Lender for such increased costs or reduced
benefits, together with interest on each such amount from a date ten (10) days after the date of
such demand until payment in full thereof at the Default Rate. A certificate setting forth in
reasonable detail such increased cost incurred or reduced benefit realized by Lender as a result of
any such event shall be conclusive as to the amount thereof, absent manifest error.

3.6 Loan Fee. On the Effective Date, Borrower shall pay to Lender a fee in the sum of
Three Hundred Sixty Five Thousand Dollars ($365,000.00), which fee shall be fully earned,
non-refundable and not subject to rebate or pro-ration upon the execution of this Agreement;
provided however, a non-refundable portion of the fee, in the amount of One Hundred
Thousand Dollars ($100,000.00) has previously been paid by Borrower to Lender.

4 SECURITY INTEREST

As security for the due and punctual payment and performance of all of the Obligations, whether
pursuant to this Agreement or otherwise, Borrower hereby pledges, transfers and assigns to Lender,
and grants to Lender security interests in, all of the Collateral, provided however (a)
“Collateral” shall not include any property which contains a valid prohibition on the creation of a
security interest other than to the extent such prohibition is rendered unenforceable under
applicable law, including the UCC, or which requires the approval of any Governmental Authority,
and (b) Borrower shall not be required to take any action (including filings or recordations and
whether such action is under the laws of the United States, any state thereof or any foreign law)
to perfect or establish the priority of the security interest created by this Section 4.1 other
than to file a UCC financing statement with the Secretary of State of Delaware. The security
interests granted hereby, and all remedies and other rights stated or referred to in this Agreement
or any of the Related Documents, shall continue in full force and effect until full and final
payment and performance of the Loan and all other Obligations under this Agreement.

5 REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender, knowing and intending that Lender will rely thereon in
making the Loan, that the following statements are true and accurate.

5.1 Organization and Qualification.

(a) Borrower is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction stated at the beginning of this Agreement.

(b) Borrower has the power and authority, and all necessary licenses or other
authorizations, to own its properties and to carry on its business as now conducted.

5.2 Due Authorization; No Default.

	 	(a)	 	The execution, delivery and performance by Borrower of this
Agreement, and the Related Documents to which it is a party are within
Borrower’s powers, have been duly authorized by all necessary action on the
part of Borrower, and do not and will not (i) violate Borrower’s Certificate of
Incorporation or Bylaws or any Governmental Rule of any Governmental Authority,
(ii) constitute a breach of, or default under, any agreement, undertaking or
instrument to which Borrower is a party or by which it may be affected, or
(iii) result in the imposition of any lien, encumbrance or restriction on any
assets of Borrower.

	 	(b)	 	Borrower has delivered to Lender true and complete copies of
Borrower’s resolutions necessary to authorize the transactions contemplated by
this Agreement, and of Borrower’s Certificate of Incorporation and Bylaws, all
as in effect on the date hereof and certified by a duly authorized officer of
Borrower.

	 	(c)	 	This Agreement and the Related Documents to which Borrower is a
party upon their execution and delivery, will be legal, valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their
respective terms.

5.3 No Governmental Consent Necessary. No authorization, approval or other action by
and no notice to or filing with any Governmental Authority is required for the due execution,
delivery and performance by Borrower of this Agreement or any of the Related Documents to which
Borrower is a party.

5.4 No Proceedings. There are no pending or threatened claims, actions, proceedings
or investigations before any Governmental Authority that may, singly or in the aggregate, have a
material adverse effect on the validity or enforceability of this Agreement or the ability of
Borrower to perform its Obligations.

5.5 Financial Statements.

	 	(a)	 	Subject to any limitation stated therein, all balance sheets,
income statements and other financial data which have been or shall hereafter
be furnished to Lender do and will truly and fairly present the financial
condition of Borrower as at the respective dates thereof and the results of its
operations for the periods ended on such dates, in accordance with GAAP. All
other information, reports and other papers and data furnished to Lender are,
or will be at the time the same are so furnished, true, accurate and complete
in all material respects.

	 	(b)	 	Except as shown on the most recent financial statements
delivered to Lender, Borrower has no liabilities as of the date hereof which
would have an adverse effect on the Collateral or on the financial condition,
operations or other properties of Borrower.

5.6 Solvency. Borrower’s assets, at a fair valuation, exceed Borrower’s liabilities
(including, without limitation, contingent liabilities); Borrower is paying its debts as they
become due; and Borrower has capital and assets sufficient to carry on its business.

5.7 Compliance With Laws. Except where the failure is not reasonably likely to have a
Material Adverse Effect: (a) Borrower is in compliance with all Governmental Rules applicable to
its ownership or use of properties or the conduct of its business; (b) Borrower has not received
any notice of violation of any of the foregoing; and (c) Borrower is not in violation of any
judgment, order or decree of any Governmental Rule of any Governmental Authority.

5.8 No Other Violations. Borrower is not in violation of any term of its Certificate
of Incorporation or Bylaws and no event or condition has occurred and is continuing which
constitutes or results in (or would constitute or result in, with the giving of notice, lapse of
time or other condition) (a) breach of, or a default under, any agreement, undertaking or
instrument to which Borrower is a party or by which it or any of its property may be affected, or
(b) the imposition of any Encumbrance on any property of Borrower except any event in clause (a) or
(b) which is not reasonably likely to have a Material Adverse Effect.

5.9 Taxes and Assessments. Borrower has filed all material federal, state and local
tax returns and other reports it is required to file to the date hereof (or has obtained valid,
written extensions as to any not so filed), has paid all taxes, assessments, and other governmental
charges due and payable to the date hereof, and has made adequate provision for the payment of such
taxes, assessments and charges accrued but not yet payable. Borrower has no knowledge of any
deficiency or additional assessment in a material amount in connection with any taxes, assessments
or other governmental charges not provided for or disclosed in the financial statements provided to
Lender.

5.10 Books and Records. Borrower maintains its principal books and records at 600
Third Avenue, New York, New York and 500 Hills Drive, Bedminster, NJ 07921.

5.11 Intentionally Omitted.

5.12 Chief Executive Office. The principal place of business and chief executive
office of Borrower is located at the addresses set forth in Section 5.10.

5.13 Intentionally Omitted.

5.14 Title. Borrower has good and marketable title to all of the Collateral.

5.15 ERISA. Except where the failure is not reasonably likely to have a Material
Adverse Effect: (a) Borrower is in compliance in all material respects with the provisions of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the related
provisions of the Internal Revenue Code, and with all regulations and published interpretations
issued thereunder by the United States Treasury Department, the United States Department of Labor
and the Pension Benefit Guaranty Corporation (“PBGC”), (b) neither a reportable event as
defined in Section 4043 of ERISA, nor a prohibited transaction as defined in Section 406 of ERISA
or Section 4975 of the Internal Revenue Code, has occurred and is continuing with respect to any
employee benefit plan subject to ERISA established or maintained, or to which contributions have
been or may be made, by Borrower or by any trade or business (whether or not incorporated) which
together with Borrower would be treated as a single employer under Section 4001 of ERISA (any such
trade or business being referred to hereinafter as an “ERISA Affiliate,” and any such employee
benefit plan being referred to hereinafter as a “Plan”), (c) no notice of intention to
terminate a Plan has been filed nor has any Plan been terminated; the PBGC has not instituted
proceedings to terminate, or to appoint a trustee to administer, any Plan, nor do circumstances
exist that constitute grounds for any such proceedings; and neither Borrower nor any ERISA
Affiliate has completely or partially withdrawn from any multiemployer Plan described in
Section 4001(a) (3) of ERISA, (d) Borrower and each ERISA Affiliate has met the minimum funding
standards under ERISA with respect to each of its Plans; (e) no Plan of Borrower or of any ERISA
Affiliate has an accumulated funding deficiency or waived funding deficiency within the meaning of
ERISA; and (e) no material liability to the PBGC under ERISA has been incurred by Borrower or any
ERISA Affiliate.

5.16 O.S.H.A. Except where the failure is not reasonably likely to have a Material
Adverse Effect: (a) Borrower has duly complied with, and its facilities, business, leaseholds,
equipment and other property are in compliance in all material respects with, the provisions of the
federal Occupational Safety and Health Act and all rules and regulations thereunder and all similar
state and local Governmental Rules; and (b) there are no outstanding citations, notices or orders
of non-compliance issued to Borrower or relating to its facilities, business, leaseholds, equipment
or other property under any such Governmental Rules to the best of Borrower’s knowledge.

5.17 Environmental Matters. Except to the extent not reasonably likely to have a
Material Adverse Effect:

	 	(a)	 	No property owned or used by Borrower is or to the best of
Borrower’s knowledge has been used for the generation, manufacture, refining,
transportation, treatment, storage, handling or disposal of any “hazardous
substances” or “hazardous wastes” as defined in any applicable Environmental
Law.

	 	(b)	 	To the best of Borrower’s knowledge, Borrower is in material
compliance with all applicable Environmental Laws.

	 	(c)	 	No hazardous substances are present at any property owned or
leased by Borrower, nor will any hazardous substances be present upon any such
property or in the operation thereof by Borrower, except such hazardous
substances which are transported, used, stored, disposed of and otherwise
handled in accordance with all Environmental Laws, in proper storage
containers.

	 	(d)	 	To the best of Borrower’s knowledge, all permits and
authorizations required under Environmental Laws for all operations of Borrower
have been duly issued and are in full force and effect, including but not
limited to those for air emissions, water discharges and treatment, storage
tanks and the generation, treatment, storage and disposal of hazardous
substances.

	 	(e)	 	There are no past, pending or, to the best of Borrower’s
knowledge, threatened Environmental Claims against Borrower or any property
owned or leased by Borrower; and there is no condition or occurrence on any
property owned or leased by Borrower that could reasonably be anticipated (i)
to form the basis of an Environmental Claim against Borrower or its properties
or (ii) to cause any property owned or leased by Borrower to be subject to any
restrictions on its ownership, occupancy or transferability under any
Environmental Law.

5.18 Prohibited Business Activities. Borrower is not (i) engaged principally or as
one of its important activities in the business of extending credit for the purpose, immediately,
incidentally or ultimately, of purchasing or carrying “margin stock “ (within the meaning of
Regulation U); (ii) an “investment company” registered or required to be registered under the
Investment Company Act of 1940, as amended from time to time, or a company under the “control” of
an “investment company”, as those terms are defined in such Act, and shall not become such an
“investment company” or under such “control”; or (iii) a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or an “affiliate” of a
“subsidiary company” of a “holding company” within the meaning of the Public Utility Holding
Company Act of 1935, as amended from time to time.

5.19 Margin Stock. No part of the proceeds of the Loan will be used, directly or
indirectly, to purchase or carry any “margin stock” (as defined in Regulation U issued by the Board
of Governors of the Federal Reserve System), to extend credit to others for the purpose of
purchasing or carrying any such margin stock, or for any purpose that violates any provision of
Regulations G, T, U or X issued by the Board of Governors of the Federal Reserve System.

5.20 Patriot Act. Borrower has not (a) conducted any business or engaged in any
transaction or dealing with any Blocked Person, including the making or receiving of any
contribution of funds, goods or services to or for the benefit of any Blocked Person; (b) dealt in,
or otherwise engaged in any transaction relating to, any property or interests in property blocked
pursuant to the Executive Order No. 13224; (c) engaged in or conspired to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in the Executive Order No. 13224, the USA Patriot Act or any other
Anti-Terrorism Law or (d) caused, suffered or permitted any Affiliate of Borrower to do any of the
foregoing.

5.21 Representations and Warranties True, Accurate and Complete. None of
representations, warranties or statements to Lender contained in this Agreement, in any of the
Related documents or in any other writing delivered to Lender in connection with the Collateral,
this Agreement or any of the transactions contemplated thereby, contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact necessary to make such
representation, warranty or statement not misleading in light of the circumstances under which it
is made. All of such representations, warranties and statements shall survive until full and final
payment and performance of the Loan and all other Obligations under this Agreement and the Related
documents.

6 AFFIRMATIVE COVENANTS

Borrower covenants and agrees that, until full and final payment and performance of the Loan and
all other Obligations under this Agreement and the Note, Borrower shall, unless Lender shall
otherwise consent in writing:

6.1 Maintenance of Existence and Qualifications. Maintain and preserve in full force
and effect its existence and good standing and all other rights, powers, franchises, licenses and
qualifications necessary or desirable for its ownership or use of properties or the conduct of its
business.

6.2 Payment of Taxes and Other Obligations. Pay (a) before they become delinquent,
all taxes, assessments and governmental charges imposed upon it or any of its property or required
to be collected by it, and (b) when due, all other indebtedness and liabilities of any kind now or
hereafter owing by it, except where the failure is not reasonably likely to have a Material Adverse
Effect.

6.3 Maintenance of Properties. Maintain its properties including the Collateral in
good working order and condition ordinary wear and tear excepted.

6.4 Notice of Adverse Events. Promptly notify Lender in writing of the occurrence or
existence of any of the following: (a) any Event of Default as defined in this Agreement; (b) any
matter or event which has resulted in, or may result in, a material adverse change in the financial
condition or any property or operations of Borrower; (c) any material claim, action, proceeding or
investigation filed or instituted against Borrower, or any adverse determination in any material
pending action, proceeding or investigation affecting it; or (d) if the representations set forth
in this Agreement ceases to be true, correct and complete in any material respect.

6.5 Information and Documents to be Furnished to Lender. Furnish to Lender in form
and substance reasonably satisfactory to it:

	 	(a)	 	Annual Financial Statements. As soon as available but
in no event later than ninety (90) days after the end of each fiscal year of
Borrower, a consolidated and consolidating balance sheet of Borrower as of the
end of such year and consolidated and consolidating statements of income, cash
flows and changes in stockholders’ equity for such year (all in reasonable
detail and with all notes and supporting schedules), reviewed by an independent
certified public accountant satisfactory to Lender, as presenting fairly the
financial condition of Borrower as of the dates and for the periods indicated
and as having been prepared in accordance with GAAP consistently applied,
except as may be otherwise disclosed in such financial statements or the notes
thereto.

	 	(b)	 	Quarterly Financial Statements. As soon as available
but in no event later than forty-five (45) days after the end of each quarter
(commencing with the quarter ended September 30, 2007) of each fiscal year of
Borrower, except the fourth such quarter in any fiscal year a balance sheet of
Borrower as of the end of such quarter and statements of income, cash flows and
changes in stockholders’ equity for such quarter and for the period commencing
at the end of the previous fiscal year and ending with the end of such quarter
(all in reasonable detail and with all notes and supporting schedules),
certified by the chief financial officer of Borrower as presenting fairly the
financial condition of Borrower as of the dates and for the periods indicated
and as having been prepared in accordance with GAAP consistently applied,
except as may be otherwise disclosed in such financial statements or the notes
thereto.

6.6 Access to Records and Property. At any time and from time to time, upon request
by Lender, give any representative of Lender access during normal business hours to inspect any of
Borrower’s properties and to examine, copy and make extracts from any and all books, records, and
documents in the possession of Borrower or any independent contractor relating to Borrower’s
affairs or the Collateral (including without limitation returns for federal income tax and other
taxes).

6.7 Insurance at Borrower’s Expense.

	 	(a)	 	Liability and Property Insurance. Maintain at
Borrower’s expense usual and customary insurance consistent with past practice
and deemed prudent by the Borrower.

	 	(b)	 	Copies of Policies. Upon demand, deliver to Lender the
original of each policy evidencing insurance required by this Section 6.7,
together with evidence of payment of all premiums therefor.

	 	(c)	 	Notice and Proof of Loss. In the event of loss or
damage, forthwith file proofs of loss satisfactory to Lender with the
appropriate insurer, but without limiting the rights of Lender pursuant to
Subsection 10.1.

	 	(d)	 	No Duty for Lender. In no event shall Lender be
required either to (i) ascertain the existence of or examine any insurance
policy, or (ii) advise Borrower in the event such insurance coverage shall not
comply with the requirements of this Agreement.

6.8 Records. Maintain complete and accurate books and records of all its operations
and properties, including records of the Collateral.

6.9 Further Assurances. From time to time, execute and deliver such further documents
and take such further actions as Lender may reasonably request in order to carry out the purposes
of this Agreement and the Related Document.

7 NEGATIVE COVENANTS

Borrower covenants and agrees that, until full and final payment and performance of the Loan and
all other Obligations under this Agreement and the Note, Borrower shall not, unless Lender shall
otherwise consent in writing:

7.1 No Consolidation, Merger, Acquisition, Liquidation. Enter into any merger,
consolidation, reorganization or recapitalization; take any steps in contemplation of dissolution
or liquidation, provided Borrower may enter into and perform its obligations under an agreement to
sell, transfer or contribute substantially all of its assets provided the Loan is repaid upon
consummation of such transactions.

7.2 Modification of Governing Documents. Change, alter or modify, or permit any
change, alteration or modification of, its Certificate of Incorporation or Bylaws (or partnership
agreement) or other governing documents in a manner which would be adverse to Borrower’s
obligations or Lender’s rights under this Agreement.

7.3 Change of Location or Name. Change any of the following unless it shall have
given Lender not less than thirty (30) days prior written notice: (a) the location stated in
Section 5.10 for the maintenance of its books and records, (b) the location of the principal place
of business or chief executive office of Borrower as stated in Section 5.10, (c) its registered
name, or (d) the jurisdiction of its registration or organization.

7.4 Inconsistent Agreement. Enter into any agreement containing any provision that
would be violated by the performance of the Obligation or Borrower’s obligations under this
Agreement or the Note.

7.5 Patriot Act. Until satisfaction in full of the Obligations (a) conduct any
business or engage in any transaction or dealing with any Blocked Person, including the making or
receiving of any contribution of funds, goods or services to or for the benefit of any Blocked
Person; (b) deal in, or otherwise engage in any transaction relating to, any property or interests
in property blocked pursuant to the Executive Order No. 13224; (c) engage in or conspire to engage
in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in the Executive Order No. 13224, the USA Patriot Act or
any other Anti-Terrorism Law or (d) cause, suffer or permit any Affiliate of Borrower to do any of
the foregoing. Borrower shall deliver to Lender any certification or other evidence requested from
time to time by Lender, confirming Borrower’s compliance with this Section

8 CONDITIONS PRECEDENT

The obligation of Lender to make the Loan is subject to the satisfaction of each of the
following conditions precedent:

8.1 Agreement. Receipt by Lender of a fully-executed copy of this Agreement and the
Note.

8.2 Financing Statements. Confirmation by Lender that a UCC financing statement has
been filed with the Secretary of State of Delaware indicating Lender as secured party, Borrower as
debtor and a description of the Collateral.

8.3 Guaranty. Receipt by Lender of the Guaranty and the Pledge, each executed by
Corporate Guarantor.

8.4 CD. Corporate Guarantor shall have (a) executed and delivered to Lender all
documents required by Lender to issue the CD and (b) deposited with Lender immediately available
funds in United States Dollars in an amount equal to the amount required to fund the CD in full.

8.5 Searches. Receipt by Lender of such searches as Lender shall requires which shall
be satisfactory to Lender.

8.6 Governing Documents. Receipt by Lender of the following documents for each of
Borrower and Corporate Guarantor:

	 	(a)	 	a copy of its articles and/or certificate of incorporation,
certified as true and correct by its Secretary;

	 	(b)	 	good standing certificates issued by the Secretary of State of
the state where incorporated, each dated not more than 30 days prior to the
date hereof;

	 	(c)	 	resolutions of its board of directors authorizing the execution
of this Agreement and the Related Documents and their performance pursuant
thereto, certified by its Secretary as being true, correct, complete and in
effect as of the Closing Date and in form and substance satisfactory to Lender;

	 	(d)	 	a copy of its by-laws and all amendments thereto, certified by
its Secretary as being true, correct, complete and in effect;

	 	(e)	 	an incumbency certificate showing the names and specimen
signatures for those officers authorized to execute and deliver this Agreement
and the Related Documents; and

	 	(f)	 	such other documents, instruments, records, opinions,
assurances and papers relating to Borrower or Corporate Guarantor as Lender or
its counsel may reasonably require, all in form and substance reasonably
satisfactory to Lender and its counsel.

8.7 Opinion of Counsel. Receipt by Lender of an opinion of counsel to Borrower and
the Guarantors, addressed to Lender and in all respects satisfactory to Lender and its counsel.

8.8 Payoff Confirmation. Receipt by Lender of such information and documentation as
Lender shall reasonably require to confirm the amount and procedure attendant to repayment in full
of the Senior Notes.

8.9 Fees. Receipt by Lender of all fees and expenses which are payable to Lender, its
counsel, or to third-party providers of services related to the closing of this transaction.

8.10 Miscellaneous. Receipt by Lender of such other documents, instruments, records,
opinions, assurances and papers as Lender or its counsel may reasonably require, all in form and
substance satisfactory to Lender and its counsel.

9 EVENTS OF DEFAULT

The occurrence of any of the following shall constitute an Event of Default:

9.1 Failure to Pay. Borrower fails to pay when due any principal of or interest on
the Loan or any other sum owing to Lender pursuant to this Agreement or the Note;

9.2 Failure to Perform. Borrowers fails to perform or observe (a) any covenant, term
or condition of this Agreement or any of the Related Documents, or (b) any of its other duties or
obligations hereunder and any such failure continues for a period of thirty (30) days after
Lender’s notice to Borrower of such failure;

9.3 False Representation or Warranty. Any representation, warranty or statement
contained in this Agreement, in any of the Related Documents or in any other writing delivered to
Lender in connection with the Collateral, this Agreement or the Loan, proves to have been incorrect
in any material respect when made;

9.4 Change of Control. There occurs any one or more events which cause, individually
or in the aggregate, any Person, directly or through Affiliates (other than a Person who is a
shareholder or other equity owner of Borrower as of the date of this Agreement) to beneficially own
more than thirty five (35%) percent of the issued and outstanding stock or similar equity interest
in Borrower which interest entitles such Person(s) to vote in an election of directors or to make
similar controlling decisions.

9.5 Liquidation or Dissolution. Borrower or Corporate Guarantor takes any action to
authorize its liquidation or dissolution;

9.6 Inability to Pay Debts. Borrower or Corporate Guarantor (a) becomes unable or
fails to pay its debts generally as they become due, (b) admits in writing its inability to pay its
debts, or (c) proposes or makes a composition agreement with creditors, a general assignment for
the benefit of creditors, or a bulk sale;

9.7 Bankruptcy; Insolvency. Any proceeding is instituted by or against Borrower or
Corporate Guarantor (a) seeking to adjudicate it bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or (b) seeking appointment of a receiver,
trustee, or other similar official for it or for any substantial part of its property, or Borrower
takes any action to authorize or consent to any action described in this Section 9.7.

9.8 ERISA. With respect to any Plan (as defined in Section 5.15 of this Agreement),
there occurs or exists any of the events or conditions described in the following clauses (a)
through (h) and such event or condition, together with all like events or conditions, could in the
opinion of Lender subject Borrower or Corporate Guarantor to any tax, penalty or other liability
that might, singly or in the aggregate, have a material adverse effect on the financial condition
or the properties or operations of Borrower or Corporate Guarantor: (a) a reportable event as
defined in Section 4043 of ERISA, (b) a prohibited transaction as defined in Section 406 of ERISA
or Section 4975 of the Internal Revenue Code, (c) termination of the Plan or filing of notice of
intention to terminate, (d) institution by the Pension Benefit Guaranty Corporation of proceedings
to terminate, or to appoint a trustee to administer, the Plan, or circumstances that constitute
grounds for any such proceedings, (e) complete or partial withdrawal from a multiemployer Plan, or
the reorganization, insolvency or termination of a multiemployer Plan, (f) an accumulated funding
deficiency within the meaning of ERISA, (g) violation of the reporting, disclosure or fiduciary
responsibility requirements of ERISA or the Internal Revenue Code, or (h) any act or condition
which could result in direct, indirect or contingent liability to any Plan or the Pension Benefit
Guaranty Corporation; or

9.9 Guaranty. The Guaranty or the Pledge cease to be effective or Corporate Guarantor
denies liability thereunder.

	10	 	REMEDIES

10.1 Rights in General. Automatically upon the occurrence of an Event of Default
described in Section 9.7, and at the option of Lender upon the occurrence of any other Event of
Default, (a)  the principal and interest of the Loan, all other amounts payable under this
Agreement and all other Obligations shall become and be immediately due and payable, without
presentment, demand, protest, or further notice of any kind, all of which are hereby expressly
waived by Borrower, and (b) Lender shall be entitled to exercise forthwith (to the extent and in
such order as Lender may elect, in its sole and absolute discretion) any or all rights and remedies
provided for in this Agreement or any Related Documents, all rights and remedies of a secured party
under the UCC, and all other rights and remedies that may otherwise be available to Lender by
agreement or at law or in equity.

10.2 Specific Rights Regarding Collateral. In addition to the rights as stated
generally in Section 10.1, Borrower agrees that, upon the occurrence of an Event of Default, Lender
shall be entitled to the rights and remedies, and Borrower shall have the obligations, set forth
below:

	 	(a)	 	Lender may enter upon the premises where any of the Collateral
is located and take possession thereof and, at Lender’s option, remove or sell
in place any or all thereof.

	 	(b)	 	Upon notice from Lender, Borrower shall promptly at its expense
assemble any or all of the Collateral and make it available at a reasonably
convenient place designated by Lender.

	 	(c)	 	Lender may, with or without judicial process, sell, lease or
otherwise dispose of any or all of the Collateral at public or private sale or
proceedings, by one or more contracts, in one or more parcels, at the same or
different times and places, with or without having the Collateral at the place
of sale or other disposition, to such persons or entities, for cash or credit
or for future delivery and upon such other terms, as Lender may in its
discretion deem best in each such matter. The purchaser of any of the
Collateral at any such sale shall hold the same free of any equity of
redemption or other right or claim of Borrower, all of which - together with
all rights of stay, exemption or appraisal under any statute or other law now
or hereafter in effect - Borrower hereby unconditionally waives to the fullest
extent permitted by law. If any of the Collateral is sold on credit or for
future delivery, Lender shall not be liable for the failure of the purchaser to
pay for same and, in the event of such failure, Lender may resell such
Collateral.

	 	(d)	 	Borrower hereby further agrees that notice of the time and
place of any public sale, or of the time after which any private sale or other
intended disposition or action relating to any of the Collateral is to be made
or taken, shall be deemed commercially reasonable notice thereof, and shall
satisfy the requirements of any applicable statute or other law, if such notice
(i) is delivered not less than five (5) Business Days prior to the date of the
sale, disposition or other action to which the notice relates, or (ii) is
mailed (by ordinary first class mail, postage prepaid) not less than ten (10)
Business Days prior thereto. Lender shall not be obligated to make any sale or
other disposition or take other action pursuant to such notice and may, without
other notice or publication, adjourn or postpone any public or private sale or
other disposition or action by announcement at the time and place previously
fixed therefor, and such sale, disposition or action may be held or
accomplished at any times or places to which the same may be so adjourned or
postponed.

	 	(e)	 	Lender may purchase any or all of the Collateral at any public
sale and may purchase at private sale any of the Collateral that is of the type
customarily sold in a recognized market or the subject of widely distributed
price quotations or as may be further permitted by law. Lender may make
payment of the purchase price for any Collateral by credit against the then
outstanding amount of the Obligations.

	 	(f)	 	Lender may at its discretion retain any or all of the
Collateral and apply the same in satisfaction of part or all of the
Obligations.

	 	(g)	 	Any cash proceeds of sale, lease or other disposition of
Collateral shall be applied as follows:

	 	 	 	First: To the expenses of collecting, enforcing, safeguarding, holding and disposing
of Collateral, and to other expenses of Lender in connection with the
enforcement of this Agreement, any of the Notes, any of the Related documents,
or any other agreement relating to any of the Obligations (including without
limitation court costs and the fees and expenses of attorneys, accountants and
appraisers), together with interest at the Default Rate from the respective
dates such sums are expended;

	 	 	 	Second: Any surplus then remaining to the payment of interest and principal of the
Loan and other sums payable as part of the Obligations, in such order as Lender
elects; and

	 	 	 	Third: Any surplus then remaining to Borrower or whoever may be lawfully entitled
thereto.

	 	10.3	 	Set-Off. Borrower further agrees that:

	 	(a)	 	Upon the occurrence of an Event of Default, Lender is hereby
authorized at any time and from time to time, without notice to Borrower (any
such notice being expressly waived by Borrower), to set off and apply (or cause
any Affiliate of Lender to set off and apply) any and all deposits (including
general or special, time or demand, provisional or final but excluding Keogh or
other trust accounts) at any time held and other indebtedness at any time owing
by Lender or such Affiliate to or for the credit or the account of Borrower,
against any or all of the Obligations of Borrower now or hereafter existing
under this Agreement irrespective of whether or not Lender shall have made any
demand and although such Obligations may be unmatured.

	 	(b)	 	If any other lender has participated with Lender with respect
to the Loan, Borrower hereby authorizes such participating lender, upon the
occurrence of any Event of Default, immediately and without notice or other
action, at request of Lender, to set off against any of Borrower’s Obligations
to Lender any deposits held or money owed by such participating lender in any
capacity to Borrower, whether or not due, and to remit the money set off to
Lender.

	 	(c)	 	Any such set-off shall be deemed to have occurred upon the
occurrence of such Event of Default, notwithstanding that the book entries
relating to same may be made at a later date.

	 	(d)	 	The rights stated in this Section 10.3 are in addition to other
rights and remedies (including, without limitation, other rights of set-off or
lien) that Lender or any participating lender may have.

10.4 Cumulative Remedies; No Waiver by Lender. No remedy referred to in this
Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other
remedy referred to in this Agreement or otherwise available to Lender by agreement or at law or in
equity, and Lender may exercise its remedies concurrently, independently, or successively. No
express or implied waiver by Lender of any default or Event of Default shall in any way be, or be
construed to be, a waiver of any future or subsequent default or Event of Default. The failure or
delay of Lender in exercising any rights granted it hereunder upon any occurrence of any of the
contingencies set forth herein shall not constitute a waiver of any such right upon the
continuation or recurrence of any such contingency or similar contingencies, and any single or
partial exercise of any particular right by Lender shall not exhaust the same or constitute a
waiver of any other right.

10.5 Waivers and Agreements Relating to Remedies. In connection with any action or
proceeding arising out of or relating in any way to this Agreement the Loan, any of the Related
documents, any other agreement relating to any of the Obligations, any of the Collateral, or any
act or omission relating to any of the foregoing:

	 	(a)	 	Borrower waives personal service of any summons, complaint or
other process in connection with any such action or proceeding and agrees that
service thereof may be made, as Lender may elect, by certified mail directed to
Borrower at the location provided for notices to Borrower under this Agreement
or, in the alternative, in any other form or manner permitted by law;

	 	(b)	 	Borrower agrees that all of the Collateral constitutes equal
security for all of the Obligations, and agrees that Lender shall be entitled
to sell, retain or otherwise deal with any or all of the Collateral, in any
order or simultaneously as Lender shall determine in its sole and absolute
discretion, free of any requirement for the marshaling of assets or other
restriction upon Lender in dealing with the Collateral; and

	 	(c)	 	Borrower agrees that Lender may proceed directly against
Borrower for collection of any or all of the Obligations without first selling,
retaining or otherwise dealing with any of the Collateral.

11 ADDITIONAL WAIVERS AND CONSENTS OF BORROWER

11.1 Waivers. Borrower waives demand, presentment, notice of dishonor or protest of
any instruments either of Borrower or others which may be included in the Collateral.

11.2 Consents. Borrower consents to (a) any extension, postponement of time of
payment or other indulgence, (b) any substitution, exchange or release of Collateral, (c) any
addition to, or release of, any party or person primarily or secondarily liable, and (d) any
acceptance of partial payments on any Accounts or instruments and the settlement, compromising or
adjustment thereof.

11.3 Applications of Payments. Borrower consents and agrees that, whether or not an
Event of Default shall have occurred, Lender shall be entitled to apply the proceeds of any loan
payments made to Lender by or on behalf of Borrower, including, without limitation, any and all
proceeds arising from any of the Collateral securing the obligations of Borrower to Lender, in the
manner and against the obligation or obligations as determined in the sole and absolute discretion
of Lender.

12. TERMINATION OF AGREEMENT

Upon the Termination Date the principal and interest of the Loan, and all other Obligations under
this Agreement and the Related Documents related to the Loan, shall become and be immediately due
and payable, without presentment, demand, protest, or further notice of any kind, all of which are
hereby expressly waived by Borrower, and (c) Lender shall be entitled to exercise forthwith (to the
extent and in such order as Lender may elect, in its sole and absolute discretion) any or all of
the rights and remedies referred to in Section 10 for the collection of such amounts.

	 	 	 	 	 	 	 
	13	 	COSTS, EXPENSES AND TAXES
	
 
	 	 	13.1	 	 	Borrower’s Obligations to Pay. Borrower agrees to pay on demand:
	
 
	 	 	 	 	 	 

	 	(a)	 	all costs and expenses in connection with the preparation,
execution, delivery and administration of this Agreement and the Related
Documents, and any amendments to any of the foregoing (including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for
Lender);

	 	(b)	 	all losses, costs and expenses incurred by Lender in connection
with the enforcement of this Agreement, any of the Related Documents, or in the
preservation of any rights of Lender under any thereof, or in connection with
legal advice relating to the rights or responsibilities of Lender under any
thereof (including with limitation court costs and the fees and expenses of
attorneys, accountants and appraisers); and

	 	(c)	 	any and all stamp and other taxes payable or determined to be
payable in connection with the execution and delivery of this Agreement or any
of the Related Documents, and all liabilities to which Lender may become
subject as the result of delay in paying or omission to pay such taxes.

13.2 Reimbursement by Borrower. With respect to any amount advanced by Lender and
required to be reimbursed by Borrower pursuant to the foregoing provisions of this Section 13,
Borrower shall also pay Lender interest on such amount at the Default Rate. Borrower’s obligations
under this Section 13 shall survive termination of the other provisions of this Agreement.

14 INDEMNIFICATION BY BORROWER/WAIVER OF CLAIMS

14.1 Indemnification. Borrower hereby covenants and agrees to indemnify, defend and
hold harmless Lender and its officers, directors, employees and agents from and against any and all
claims, damages, liabilities, costs and expenses (including with limitation, the reasonable fees
and out-of-pocket expenses of counsel) which may be incurred by or asserted against Lender or any
such other individual or entity in connection with:

	 	(a)	 	any investigation, action or proceeding arising out of or in
any way relating to this Agreement, the Loan, any of the Related Documents, any
other agreement relating to any of the Obligations, any of the Collateral, or
any act or omission relating to any of the foregoing; or

	 	(b)	 	any taxes, liabilities, claims or damages relating to the
Collateral or Lender’s liens thereon; or

	 	(c)	 	the correctness, validity or genuineness of any instruments or
documents that may be released or endorsed to Borrower by Lender (which shall
automatically be deemed to be without recourse to Lender in any event), or the
existence, character, quantity, quality, condition, value or delivery of any
goods purporting to be represented by any such documents; or

	 	(d)	 	any broker’s commission, finder’s fee or similar charge or fee
in connection with the Loan and the transactions contemplated in this
Agreement, provided however, it is understood that Lender has incurred no such
fee or charge with respect to this transaction.

14.2 No Violation of Law. To the extent that the undertaking to indemnify pay and
hold harmless set forth in this Section 17 may be unenforceable because it is violate of any law of
public policy, Borrower shall contribute the maximum portion which it is permitted to pay and
satisfy under applicable law, to the payment and satisfaction of all matters referred to under this
Section 14.

14.3 Claim by Borrower. To the extent permitted by applicable law, no claim may be
made by Borrower or any other person against Lender or any of its affiliates, directors, officers,
employees, agents, attorneys or consultants for any special, indirect, consequential or punitive
damages in respect of any claim for breach of contract, tort or any other theory of liability
arising out of or related to the transactions contemplated by this Agreement or any act, omission
or event occurring in connection therewith; and Borrower hereby waives, releases and agrees not to
sue upon any claim for any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor. Neither Lender nor any of its affiliates, directors, officers,
employees or agents shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement or the transactions contemplated hereby, except for its or
their own gross negligence or willful misconduct.

15 MISCELLANEOUS

15.1 Entire Agreement; Amendments; Lender’s Consent. This Agreement (including the
Exhibits and Schedules thereto) and the Related documents supersede, with respect to their subject
matter, all prior and contemporaneous agreements, understandings, inducements or conditions between
the respective parties, whether express or implied, oral or written. No amendment or waiver of any
provision of this Agreement or any of the Related documents, nor consent to any departure by
Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed
by Lender, and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

15.2 Notices. All notices and other communications relating to this Agreement (or to
any of the Related documents, unless otherwise specified therein) shall be in writing, and
addressed as follows and sent by hand delivery, recognized overnight courier service or telecopier
with confirmation of delivery:

	 	 	 	 	 
	If to Lender:
	 	Valley National Bank
	 
	 	275 Madison Avenue, 10th Floor
	 
	 	New York, New York  10016
	 
	 	Attn:  James Moore, S.V.P.
	 
	 	Telephone:  212-973-6685
	 
	 	Facsimile:  212-973-6664
	If to Borrower:
	 	Loral Skynet Corporation
	 
	 	600 Third Avenue
	 
	 	New York, New York 10016
	 
	 	Attn:  Mr. Richard Mastoloni
	 
	 	Telephone:  (212) 338-5605
	 
	 	Facsimile:  (212) 338-5626

or to such other address as the respective party or its successors or assigns may subsequently
designate by proper notice. All notices shall be effective one (1) Business Day after deposit with
a courier or when received, if earlier.

15.3 Gender. Throughout this Agreement, the masculine shall include the feminine and
vice versa and the singular shall include the plural and vice versa, unless the context of this
Agreement indicates otherwise.

15.4 Binding Effect; Governing Law. This Agreement shall be binding upon and inure to
the benefit of Borrower and Lender and their respective successors and assigns, except that
Borrower shall not have the right to assign its rights hereunder or any interest herein without the
prior written consent of Lender. This Agreement, the Related documents and the other documents
delivered in connection with this Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

15.5 Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.

15.6 Severability of Provisions. Any provision of this Agreement or any of the
Related Documents that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement or such Documents or affecting the validity
or enforceability of such provision in any other jurisdiction.

15.7 Headings. The headings preceding the text of this Agreement are inserted solely
for convenience of reference and shall not constitute a part of this Agreement nor affect its
meaning, construction or effect.

15.8 Schedules. All of the Schedules to this Agreement are hereby incorporated by
reference herein and made a part hereof.

16 CONSENT TO JURISDICTION. AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED, AND
REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF BUSINESS OF BORROWER OR LENDER,
BORROWER HEREBY CONSENTS AND AGREES THAT ANY FEDERAL COURT LOCATED IN THE SOUTHERN DISTRICT OF NEW
YORK OR ANY STATE COURT LOCATED IN NEW YORK COUNTY, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN BORROWER AND LENDER PERTAINING TO THIS AGREEMENT, THE NOTE
OR TO ANY MATTER ARISING OUT OF OR RELATED THERETO; PROVIDED, HOWEVER, LENDER MAY, AT ITS OPTION,
COMMENCE ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION TO OBTAIN
POSSESSION OF OR FORECLOSE UPON ANY COLLATERAL, TO OBTAIN EQUITABLE RELIEF OR TO ENFORCE ANY
JUDGMENT OR ORDER OBTAINED BY LENDER AGAINST BORROWER OR WITH RESPECT TO ANY COLLATERAL, IF ANY, TO
ENFORCE ANY OTHER RIGHT OR REMEDY UNDER THIS AGREEMENT OR THE NOTE OR TO OBTAIN ANY OTHER RELIEF
DEEMED APPROPRIATE BY LENDER. BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT AND HEREBY WAIVES ANY OBJECTION
WHICH BORROWER MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. BORROWER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS CONSENT TO
JURISDICTION PROVISION WITH ITS LEGAL COUNSEL, AND HAS MADE THIS WAIVER KNOWINGLY AND VOLUNTARILY.

17 WAIVER OF JURY TRIAL. BORROWER WAIVES THE RIGHT TO TRIAL BY JURY IN THE EVENT OF ANY
ACTION, SUIT, PROCEEDING, COUNTERCLAIM OR OTHER LITIGATION IN RESPECT OF ANY MATTER ARISING UNDER
THIS AGREEMENT, THE NOTE OR ANY OTHER MATTER INVOLVING BORROWER AND LENDER, WHETHER OR NOT OTHER
PERSONS ARE ALSO PARTIES THERETO. BORROWER ACKNOWLEDGES THAT THE FOREGOING WAIVER IS A MATERIAL
INDUCEMENT TO LENDER’S MAKING THE TIME LOAN AND THAT LENDER IS RELYING ON THE FOREGOING WAIVER IN
ITS DEALINGS WITH BORROWER. BORROWER REPRESENTS AND WARRANTS THAT BORROWER REVIEWED THIS JURY
WAIVER PROVISION WITH ITS LEGAL COUNSEL, AND MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY.

[Signature page follows.]

2

IN WITNESS WHEREOF, the undersigned have set their hands and seals or caused these presents to
be executed by their proper corporate officers and sealed with their seal the day and year first
above written.

LORAL SKYNET CORPORATION

By: /s/ Richard J. Townsend

Print Name: Richard J. Townsend

Print title: Executive Vice President

VALLEY NATIONAL BANK

By: /s/ James K. Moore

Print name: James K. Moore

Print title: Sr. Vice President

3

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