Document:

EX-10.3

GRANT AGREEMENT

(Non-Qualified Share Options/Tandem SARs)

THIS AGREEMENT, executed this 18th day of November, 2013 (in respect of a grant made the
5th day of April 2013) by and among Telesat Holdings Inc. (the “Company”),
Telesat Canada (the “Employer”), Paul D. Bush (the “Participant”), and for the
purposes of Sections 10, 11, 12 and 13 only, Loral Space & Communications Inc. (“Loral”)
and the Public Sector Pension Investment Board (“PSP”), and only for the purposes of
Section 15, 4440480 Canada Inc. (the “Special Purchaser”).

WHEREAS, the Company has adopted and maintains the Telesat Holdings Inc. 2013 Management Stock
Incentive Plan (the “Plan”) to promote the interests of the Company and its Affiliates and
shareholders by providing the Company and its Affiliates’ key employees with an appropriate
incentive to encourage them to continue in the employ of and provide services for the Company or
its Affiliates and to improve the growth and profitability of the Company and its Affiliates; and

WHEREAS, the Plan provides for the Grant to Participants in the Plan of Non-Qualified Share
Options and Tandem SARs to purchase Shares of the Company.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set
forth, the parties hereto hereby agree as follows:

1. Incorporation of Plan. All terms, conditions and restrictions of the Plan,
including the Accession Agreement, and the Employment Agreement are incorporated herein and made
part hereof as if stated herein and the terms hereof are incorporated in the Plan as it applies to
the Participant. If there is any express conflict between the terms and conditions of the Plan and
this Grant Agreement, the terms and conditions of this Agreement shall govern. All capitalized
terms used and not defined herein shall have the meaning given to such terms in the Plan.

2. Grant of Options. Pursuant to, and subject to, the terms and conditions set forth
herein and in the Plan, the Company and the Employer hereby grant to the Participant a
NON-QUALIFIED SHARE OPTION with respect to 395,000 Shares (the “Option”).

3. Grant of Tandem SARs.

(a) Each Option shall be accompanied by a TANDEM SAR at the SAR Base Price (per Share). The
Tandem SAR constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be
delivered) to the Participant a combination of Shares and cash (as determined by the Committee, in
its discretion, subject to the provisions of this Section 3) at the time such Tandem SAR is
exercised, equal in value to the excess, if any, of the Fair Market Value per Share over the SAR
Base Price per Share of the Tandem SAR. In no event shall the amount of such excess that the
Company shall deliver (or cause to be delivered) to the Participant in cash exceed the minimum
mandatory statutory amount of withholding taxes due to the applicable Canadian federal and
provincial taxing authorities with respect to the exercise of the Tandem SAR (the “Minimum
Withholding Amount”).

(b) The Participant may exercise the Tandem SAR, in whole or in part, pursuant to the terms of
the Plan and the Grant Agreement provided that, if Section 3(c) below applies no less than fifteen
(15) business days (and no more than thirty (30) business days) in advance of the effective date of
the proposed exercise the Participant shall give the Committee written notice of his intention to
exercise the Tandem SAR, in whole or in part, and the number of Shares underlying the Option
involved. Upon receipt of such notice, the Committee shall promptly notify the Participant whether
the Company is prohibited by applicable law or prohibited under any credit agreement (or other debt
agreement) applicable to the Company from (x) permitting such exercise of the Tandem SAR, in whole
or in part, or (y) from making the payment of the amounts in accordance with Section 3(c) below (an
“Applicable Restriction”) at the time the Participant provides the notice of an intent to
exercise. In the case of an Applicable Restriction, the Participant shall not be permitted to
exercise the Tandem SAR, in whole or in part, to the extent restricted by the Applicable
Restriction, but may, but shall not be obligated to, exercise all or part of the Option and utilize
the Special Purchase Rights (as described in Section 15(b)) with regard to the amounts necessary to
pay the Exercise Price and the Minimum Withholding Amount (provided that the Special Purchase
Rights shall not be available if both (x) the Company’s public common shares are publicly traded
and (y) Participant is otherwise free to sell the Shares acquired under the Option). Any exercise
of all or part of the Tandem SAR or use of the Special Purchase Rights shall be accomplished within
thirty (30) business days after notification by the Committee that exercise of the Tandem SAR is or
is not permitted. If the exercise or utilization is to occur thereafter, a new notice of intent to
exercise shall be required.

(c) Notwithstanding Section 3(a) but subject to Section 3(b), if exercise of a Tandem SAR, in
whole or in part, occurs during employment (while Cause does not exist and there is no current
intent to voluntary resign without “Good Reason” (as defined in the Participant’s Employment
Agreement)) or following a Termination of Employment other than a termination for Cause or a
voluntary termination without Good Reason, and is not prohibited by Section 3(b), the Minimum
Withholding Amount shall be delivered in cash. The remainder of such excess shall be delivered in
Shares. Fractional Shares will not be delivered and the number of Shares to be delivered upon any
exercise by the Participant of the Tandem SAR, in whole or in part, granted herein shall be rounded
up to the nearest whole Share and the amount of cash to be delivered to the Participant upon such
exercise shall be rounded down. Until such delivery, the Participant has only the rights of a
general unsecured creditor and no rights as a shareholder of the Company in respect to such Shares.

4. Option/Tandem SAR: The Tandem SAR shall vest, become exercisable, and terminate at
the same times and under the same terms as the Option granted herein. The exercise of all or part
of the Option shall cause the same proportion of the Tandem SAR to automatically terminate and the
exercise of all or part of the Tandem SAR shall cause the same proportion of the Option to
automatically terminate. Only the Option or the Tandem SAR, and not both, may be exercised in whole
or in part at any time.

5. Grant Date. The Grant Date of the Award hereby granted is April 5, 2013.

6. Exercise Price. The Exercise Price of each Share underlying the Option hereby
granted is CAD$24.20.

7. Grant Term. Subject to the terms of the Plan and Section 14 hereof as to earlier
termination of the exercise period of the Award, the exercise period of the Award shall expire ten
(10) years from the Grant Date.

8. Vesting. Notwithstanding Section 5 of the Plan, the Option shall become vested and
exercisable as to twenty percent (20%) of the Shares underlying the Option on each of the first
five (5) anniversaries of October 31, 2012, subject in all cases to the Participant’s continued
Employment as of such anniversary as provided in the Plan, except as modified by Section 14 of this
Grant Agreement.

9. Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any party hereto, upon any breach or default of any party under this Grant Agreement,
shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring, nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any breach or default
under this Grant Agreement, or any waiver on the part of any party or any provisions or conditions
of this Grant Agreement, shall be in writing and shall be effective only to the extent specifically
set forth in such writing.

10. Limitation on Transfer. No Shares obtained pursuant to the exercise of the Award
granted herein shall be transferred except subject to the terms set forth in Schedule A hereto.

11. Drag-Along Rights in Respect of Shares Issuable Upon Exercise of the Award.

(a) Provided that Loral or PSP and their respective Affiliates and their Permitted Transferees
(as defined in the Unanimous Shareholder Agreement) (such shareholders and their respective
Affiliates and Permitted Transferees being referred to in this Agreement as the “Relevant
Shareholders”) collectively hold a number of Equity Shares of the Company which is not less
than 25% of the total number of Equity Shares then outstanding on a fully diluted basis, if a
Relevant Shareholder proposes to Transfer to any person (the “Drag-Along Transferee”) at
arm’s length from such Relevant Shareholder (for purposes of this Section 11 only, any such
Relevant Shareholder that is proposing such Transfer, a “Selling Shareholder”) some or all
of the Equity Shares then held by the Selling Shareholder, in a bona fide transaction (a
“Drag-Along Sale”), then the Selling Shareholder(s) may elect (a “Drag-Along
Election”) to require the Participant (but provided that all Participants are being similarly
required with regard to their fully vested Equity Shares but not necessarily unvested Equity
Shares) to sell to the Drag-Along Transferee up to that number of Shares issued upon exercise of
any vested Award equal to the product of (such product being the “Draggable Amount”) (x) a
fraction, the numerator of which is the number of Equity Shares (on a fully diluted basis) as is
proposed to be sold by the Selling Shareholder(s) and the denominator of which is the aggregate
number of Equity Shares (on a fully diluted basis) owned as of the date of the Drag-Along Notice
(as defined below) by all Relevant Shareholder(s), and (y) the number of Shares resulting from the
exercise of all Awards held by the Participant, whether then exercised or unexercised and whether
vested or unvested, as of the date of the Drag-Along Notice, at the purchase price and upon the
other terms and subject to the conditions of the Drag-Along Sale (including the kind and amount of
consideration to be paid for such Equity Shares), all of which shall be set forth in the Drag-Along
Notice. To the extent that the number of Shares issued upon exercise of any vested portion of any
Award that is held by the Participant is less than the Draggable Amount calculated pursuant to this
section, a portion of the Award (but not more than the amount necessary such that 50 percent of
Participant’s Award (inclusive of previously vested amounts) shall be vested) not
otherwise vested and exercisable shall become vested and exercisable based on the earliest
thereafter vesting tranches being vested before later vesting tranches and the Participant shall be
required, conditioned on the closing of the Drag-Along Sale, to exercise such portion of such Award
and Transfer the resulting Shares in the manner provided in the previous sentence. Without any
obligation to do so, the Company may elect to vest an amount of such unvested Options up to the
amount necessary to reach the Draggable Amount (in such order as the Company shall elect) and such
Options shall then be treated as vested for purposes of the Drag-Along Sale. The Participant shall
be responsible to the Selling Shareholders for the Participant’s pro rata share of a reasonable
estimate of the out-of-pocket transactional expenses to be paid by the Selling Shareholders, as
determined by the Selling Shareholders, incurred in connection with the Drag-Along Sale. Without
limiting the foregoing liability, the Selling Shareholders shall be entitled to agree with the
purchaser for the payment of such pro rata share directly, to the Selling Shareholders out of sale
proceedings.

(b) The rights set forth in Section 11(a) shall be exercised by the Selling Shareholder giving
written notice by delivery of a true and complete copy of the offer to purchase from the Drag-Along
Transferee together with all relevant agreements (the “Drag-Along Notice”) to each
Participant which shall specifically identify the identity of the proposed Drag-Along Transferee,
the number of Equity Shares proposed to be sold to the Drag-Along Transferee, the purchase price
therefore, the material terms and conditions of the proposed Drag-Along Sale and the proposed
closing date of the Drag-Along Sale.

(c) The Selling Shareholders may assign to the Drag-Along Transferee their rights under this
Section 11 and Section 12 hereof, and in such event, the Drag-Along Transferee shall be treated as
if it is the Selling Shareholder thereafter.

(d) This Section 11 shall not apply to sales made in connection with an Initial Public
Offering or other sales made into the public market.

12. Tag Along Rights in respect of Shares Issuable Upon Exercise of the Award. No
Relevant Shareholder shall sell, offer to sell or agree to sell any Equity Shares (other than (i)
sales of Equity Shares by a Relevant Shareholder to any other Relevant Shareholder, (ii) sales made
in connection with an Initial Public Offering or other sales made into the public market, (iii)
sales of Equity Shares by a Relevant Shareholder(s) to its or their Affiliate or to an Affiliate of
the other, (iv) a sale by PSP (or an Affiliate) of Equity Shares to a shareholder who through such
sale acquires a right to nominate directors of the Company but not a proportionate share of PSP’s
Equity Interest, (v) a transfer to a Permitted Transferee as defined in Section 7.04(l) of the
Unanimous Shareholder Agreement, (vi) in a PSP Sell-Down (as defined in the Unanimous Shareholder
Agreement) or (vii) sales aggregated with all other Transfers by Relevant Shareholders of less than
5% of Equity Shares collectively owned by all Relevant Shareholders as of the Grant Date, unless
the applicable offer is in writing and provides, as a condition precedent to its completion, that
the proposed purchaser grants to the Participant the right to require the proposed purchaser to
purchase, at the discretion of the Participant, some or all of that proportion of the Shares owned
by the Participant and issued upon exercise of the Award, plus Shares of the Participant issuable
upon exercise of the Award whether or not vested, as is equal to the product of (x) a fraction (not
to exceed one-half), the numerator of which is the numerator of Equity Shares as is proposed to be
sold by the Relevant Shareholder(s) who are proposing such sale (for purposes of this Section 12
only, such Relevant Shareholder, a “Selling Shareholder”) and the denominator of which is
the aggregate number of Equity Shares then owned by all Relevant Shareholders and (y) the number of
Shares then owned by the Participant and issued upon the exercise of the Award plus the number of
Shares issuable upon the exercise of the Award whether or not vested, at a price per Share, and
upon the other terms and subject to the other conditions (including kind and amount of
consideration) as is set forth in the offer to the Selling Shareholder(s) (a “Tag-Along
Sale”). The Selling Shareholder(s) shall give notice of any proposed sale to the Participant
and shall permit the Participant to have not less than 20 days to accept such offer in a manner
which permits the Participant to specify the number of Shares which the Participant wishes to sell.
To the extent necessary in order to effect the Tag-Along Sale (and only to such extent), and
conditional upon the closing of the Tag-Along Sale, any portion of the Award of the Participant not
vested and exercisable shall become vested and exercisable to the extent that the Shares issuable
upon such exercise may be included in the Tag-Along Sale based on the earliest unvested tranches
vesting first. The completion of the sale of such Shares by the Participant shall be subject to
completion of the sale of Equity Shares by the Selling Shareholder(s) and vice versa. If the
Participant exercises tag-along rights pursuant to this Section 12, the Participant shall be
responsible to the Selling Shareholders for his pro rata share of a reasonable estimate of the
transactional expenses of the Selling Shareholders, as determined by the Selling Shareholders, in
connection with the Tag-Along Sale, and the Selling Shareholders shall be entitled to agree with
the purchaser for the payment of such pro rata share of the reasonable estimate of the
transactional expenses, as determined by the Selling Shareholders, to the Selling Shareholders. If
any transfer of Equity Shares to a Permitted Transferee or Affiliate is exempt from this Section
12, as set forth above, as a condition of such Transfer, the transferee shall agree that any
subsequent Transfer of such Equity Shares shall be subject to this Section 12. In the case of any
initial public offering in which a Selling Shareholder transfers an Equity Interest, Participant
shall be entitled to the vesting acceleration described in this Section 12 as though such transfer
were subject to this Section 12, with regard to the unvested Awards necessary to be vested
and exercised to sell the Shares in the initial public offering pursuant to Item (iv) of Schedule
A and Participant shall have no rights to tag along on any public offering under this
Section 12 (but shall have the rights under Item (iv) of Schedule A).

13. Sale Procedures

(a) In connection with any Drag-Along Sale, or any Tag-Along Sale which the Participant agrees
to accept, all Participants shall be obligated, if applicable and if permitted by law, to vote (or
consent in writing, as the case may be, in respect of) all Shares held by them in favour of any
Drag-Along Sale or Tag-Along Sale being effected by merger, amalgamation, consolidation, plan of
arrangement, share sale, asset sale or other type of business combination requiring shareholder
approval and the Participant shall in all other respects support the transaction contemplated by
the Drag-Along Sale or Tag-Along Sale and shall be obligated to take all reasonable actions and to
reasonably cooperate in the consummation of the transaction contemplated thereby and shall execute
all documents, including a sale, purchase, amalgamation, reorganization or merger agreement,
reasonably requested by the Selling Shareholder(s) containing the terms and conditions of the
Drag-Along Sale or Tag-Along Sale; provided, however, that such terms and conditions shall include
the following: (i) any representations and warranties from the Participants shall be on a several
and not joint basis; and (ii) the maximum liability of each Participant (other than for fraud or
intentional misrepresentation as to ownership or the existence of a lien) under such Drag-Along
Sale or Tag-Along Sale transaction shall be limited to the purchase price received by such
Participant.

(b) No Participant shall exercise any rights of appraisal or dissent rights that such
Participant may have (whether under applicable law or otherwise) or could potentially have or
acquire in connection with any Drag-Along Sale or Tag-Along Sale or any proposal that is necessary
or desirable to consummate the Drag-Along Sale or Tag-Along Sale.

(c) All Transfers of Shares, including Shares issuable upon exercise of the Award to the
Drag-Along Transferee pursuant to Section 11 or the Tag-Along Transferee pursuant to Section 12,
shall be consummated contemporaneously on the closing date specified in the Drag-Along Notice or
offer of Tag-Along Sale and, if any Participant shall not have taken such steps as are necessary to
Transfer Shares and/or exercise the Award to be exercised as provided above in Section 11, in order
for the Shares to be so Transferred, such Participant shall be deemed to have appointed each
Selling Shareholder as his true and lawful attorney in fact to take all such actions and to sign
all such documents as are necessary or, in the reasonable view of the Selling Shareholder,
desirable in order to effect such Transfer. In such event, the Selling Shareholder shall hold the
purchase price for such Shares in trust for the Participant, pending acknowledgement in writing of
the Transfer by the Participant.

14. Revised Vesting and Exercise Time Period.

(a) The Award will vest, in full, if the Participant’s employment is terminated by the Company
without Cause or by the Participant with Good Reason within the two-year period immediately
following a Change of Control.

(b) Instead of the provisions set forth in Section 5.4.2 of the Plan, the following provisions
will apply:

(i) (A) upon termination of the Participant’s employment by the Participant
without Good Reason at any time (x) before October 31, 2014, (y) between November
1, 2014 and October 31, 2015, if Daniel Goldberg ceases to be employed by the
Company for any reason within six (6) months prior to such termination or (z) if
Cause exists at the time of such termination, or (B) upon termination of the
Participant’s employment by the Company for Cause at any time, the Award, whether
vested and exercisable on or prior to the date of such termination, or not, shall
immediately as of such date of termination be forfeited.

(ii) upon termination of the Participant’s Employment by the Company at any
time without Cause, or by the Participant for Good Reason, the portion of the Award
that would have become vested in the one-year period immediately following the date
of termination shall immediately become vested and exercisable, in full, and shall
continue to be exercisable for a period of 180 days following such date, and
thereafter shall be forfeited.

(iii) if the Participant’s Employment terminates as a result of death or
Disability of the Participant, the portion of the Award that would vest within one
year of the date of termination of employment shall immediately vest.

(iv) in the event of the death or Disability Termination of the Participant,
the vested portion of the Award shall continue to be exercisable for a period of one
year from the Participant’s termination of employment as a result of death or
Disability, and thereafter shall be forfeited.

(v) upon termination of the Participant’s Employment by the Participant without
Good Reason at any time on or after October 31, 2009 (except as provided in Section
14(b)(i)(A)(y) or (z)), the vested portion of the Award shall be exercisable for a
period of 90 days following such date, and thereafter shall be forfeited.

(c) The provisions of Section 14(b) above shall be subject to Section 5.8.2 of the Plan as to
termination of exercise periods to the extent not based on termination of Employment.

15. Restriction on Call Rights and Purchase.

(a) Notwithstanding Section 5.9.3 of the Plan, the call rights of the Company as set out in
Section 5.9.3 of the Plan generally shall not apply if the Participant is terminated by the Company
without Cause or the Participant’s Employment is terminated by the Participant for Good Reason;
provided, that (a) such call rights shall fully apply to Shares that have become issuable upon the
exercise of the portion of the Award which has vested and become exercisable solely as a
consequence of such termination of employment (on the terms specified in Section 5.9.3 of the Plan)
and (b) such call rights may be exercised in respect of any Shares held by the Participant during
the six-month and one day period commencing on the later of: (i) the date the Board, acting in good
faith, becomes aware that the Participant has become employed by, or is otherwise providing
services to, a Competitor (as defined in Schedule “A” hereto) with the date of such determination
by the Board being treated under Section 5.9.3 of the Plan as if it was the date of termination of
employment (in such case, the call right may be exercised at the Fair Market Value of the Shares on
the date of exercise) or (ii) the exercise date of the Award. Notwithstanding Section 5.9.3 of the
Plan, in the event that the Participant’s employment terminates, other than for Cause or
voluntarily without Good Reason, the Company may not satisfy the purchase price under the call
rights by issuing a promissory note to Participant. Notwithstanding anything to the contrary in the
Plan, any reference to “Grant Date” in Section 5.9.3 of the Plan shall be deemed to refer to
“October 31, 2012.” In the event the Participant  voluntarily terminates employment between
November 1, 2014 and October 31, 2015 and if Daniel Goldberg ceased to be employed by the Company
for any reason within six (6) months prior to such termination, the provisions of Section 5.9.3 of
the Plan shall apply as if the termination was prior to November 1, 2014. Upon exercise of the
Company of its call right, such call right shall immediately be deemed to have been assigned to,
and exercised by, the Special Purchaser (as described in Section 15(b)).

(b) In the event that (i) the Committee delivers to the Participant a notice that the Company
is subject to an Applicable Restriction, but the Company gives the Participant written confirmation
that the purchase by the Special Purchaser of the Shares represented by the Tandem SAR is
permitted, and does not create a default under its or the Company’s credit agreement (or other debt
agreements), or (ii) the call right of the Company is available pursuant to Section 15(a) and the
Company exercises such right pursuant to Section 5.9.3 of the Plan, the Special Purchaser shall
purchase from the Participant all Shares issuable upon exercise of the Award, or all of the Shares
represented by that portion of the Tandem SAR which cannot be exercised pursuant to Section 3(b),
or all Shares in respect of which such call rights have been exercised pursuant to Section 5.9.3 of
the Plan, as the case may be, on the date set out for such purchase as provided in Section 3(b), or
as provided in Section 5.9.3 of the Plan, as the case may be, and for the purchase price therein
provided. On such date, the Shares shall be purchased by the Special Purchaser, and shall
thereafter be transferred, along with the obligation of the Special Purchaser to pay for the
Shares, to a subsidiary of the Special Purchaser, which shall be wound up into the Company. The
Company agrees to the acquisition of such subsidiary by the Company from the Special Purchaser for
nominal consideration and to the winding up of such subsidiary into the Company. The purchase
price for the Shares shall be paid by the Company within ten (10) business days after completion of
the winding-up of such subsidiary into the Company, which shall occur promptly after exercising the
call right.

16. Fair Market Value. Fair Market Value under the Plan for purposes of any call and
for purposes of Section 3 shall be determined without any discount for minority interest or
illiquidity. In addition, if the Participant does not agree with the Fair Market Value as
determined by the Board pursuant to the Plan and this Section 16, the Participant shall notify the
Board in writing of such objection within fifteen (15) days of receipt of written notice of such
Fair Market Value, and shall provide to the Board his own determination of Fair Market Value in
writing no later than thirty (30) days of such receipt. The Board shall submit both determinations
of Fair Market Value to an investment banker or valuation service agreed upon in good faith by the
Board and the Participant (an “Appraiser”) to choose one of the two determinations as a
more appropriate valuation of the Fair Market Value of the Shares. All fees of the Appraiser shall
be paid (a) by the Company if the Appraiser chooses the Participant’s determination of Fair Market
Value, and (b) by the Participant if the Appraiser chooses the Board’s determination of Fair Market
Value.

17. Dividends. In the event that the Company pays a dividend to the holders of its
Equity Shares, the Board will provide for the crediting of a notional account established on the
books and records of the Company (the “Notional Account”) for the Participant (but such
Notional Account shall not be established and the Participant shall have no rights hereunder to the
extent it would not be permitted under Section 409A of the Code) an amount equal to (a) the
per-share dividend payable to holders of its Equity Shares multiplied by (b) the number of Shares
subject to the Award on the payment date; provided, that, notwithstanding the foregoing, the
Participant may elect, upon notice of an impending dividend, and in lieu of some or all of the
amount credited to the Notional Account, to have the Board adjust in its good faith determination
the (i) Exercise Price with respect to the Option, (ii) the SAR Base Price with respect to the
Tandem SAR, and/or (iii) the number of Shares subject to the Award, or to have the Board otherwise
substitute such Award, in any case so as to prevent dilution or enlargement of rights, and provided
that such adjustment or substitution, and any election to adjust or substitute, is done in
accordance with and only to the extent permitted by the provisions of (1) Sections 409A and 424 of
the Code, to the extent the Participant is subject to taxation in the U.S., and/or (2) Sections
7(1.4) or proposed Sections 110(1.7) and (1.8), to the extent such Sections become effective and
apply to any such adjustment or substitution, of the Income Tax Act (Canada), to the extent the
Participant is subject to taxation in Canada. Amounts credited to the Participant’s Notional
Account will be distributed at the time of vesting of the Award. On the date and to the extent a
portion of the Award is forfeited, a Participant will forfeit any amounts remaining in his Notional
Account and which are attributable to such forfeited portion of the Award.

18. Share Repurchasing. In the event the Company repurchases or offers to repurchase
its Shares from both Loral or PSP or their respective Affiliates, or their respective permitted
transferees, on a substantially pro rata basis, the Company shall also offer to repurchase Shares
from Participant on the same basis to the extent such offer is legally permitted. Such pro rata
portion shall be based on all Shares issued to Participant and all Awards outstanding that were
granted to Participant, whether vested or unvested. Participant shall accept such offer within ten
(10) business days of its being made or shall be deemed to have rejected such offer and, if
accepted, the sale and purchase shall close at the same time as the closing of the stock purchase
from Loral and PSP or their respective Affiliates. To the extent necessary to permit the sale,
additional Awards shall vest in order of the next vesting tranches.

19. Taxes and Withholding. No later than the date of exercise of the Award granted
hereunder, the Participant shall pay to the Company or make arrangements satisfactory to the Board
regarding payment of any Canadian federal, provincial, and local taxes applicable to the
Participant, of any kind required by law to be withheld upon the exercise of such Award. In the
event the Participant exercises the Tandem SAR, then the Participant shall satisfy the Minimum
Withholding Amount due upon exercise of the Tandem SAR by having the Company remit to the
appropriate taxing authority the cash to which the Participant is entitled upon exercise of the
Tandem SAR pursuant to Section 3 above. Notwithstanding the foregoing, the Company shall, to the
extent permitted or required by law, have the right to deduct from any payment of any kind
otherwise due to the Participant any Canadian federal, provincial, and local taxes of any kind
required by law to be withheld upon the exercise of such Award.

20. Integration. This Grant Agreement, and the other documents referred to herein or
delivered pursuant hereto which form a part hereof, including the Employment Agreement, contain the
entire understanding of the parties with respect to its subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings with respect to the
subject matter hereof other than those expressly set forth in this Grant Agreement, in the
Employment Agreement and in the Plan. This Grant Agreement, the Employment Agreement and the Plan,
supersede all prior agreements and understandings between the parties with respect to its subject
matter.

21. Counterparts. This Grant Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same
instrument.

22. Governing Law. This Grant Agreement shall be governed by and construed and
enforced in accordance with the laws of the Province of Ontario, Canada without regard to the
provisions governing conflict of laws.

23. Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy
of the Plan, including the Accession Agreement attached thereto as Exhibit A. The Participant
hereby acknowledges that all reasonable decisions, determinations and interpretations of the Board
in respect of the Plan, this Grant Agreement and the Award shall be final and conclusive. The
Participant further acknowledges that, prior to the existence of a Public Market, no exercise of
the Award or any portion thereof shall be effective unless and until the Participant has executed
an Accession Agreement and the Participant hereby agrees to be bound thereby. The Participant
acknowledges that, among other provisions, the Plan contains a “call-right” and agrees that such
“call-right” may be exercised by the Company or its designee (with the Company having the right to
enforce the right of the designee).

24. Limitation on Liability. The Participant acknowledges that only the Special
Purchaser, its subsidiary to which the Share and the obligations to pay for the Shares are
transferred and the Company shall be liable or responsible to the Participant in respect of the
purchase of the Shares under the provisions of this Agreement related to actions of the Company,
the Special Purchaser and its subsidiary, and no direct or indirect shareholder of the Special
Purchaser or any director or officer of the Special Purchaser or such subsidiary shall be liable
with respect thereof (except as expressly provided hereunder).

IN WITNESS WHEREOF, the Company, the Employer, Participant, Loral, and PSP have each
caused this Grant Agreement to be duly executed by its duly authorized officer and said Participant
has hereunto signed this Grant Agreement on his own behalf, thereby representing that he has
carefully read and understands this Grant Agreement, the Plan and the Accession Agreement as of the
day and year first written above.

	 	 	 
	Telesat Holdings Inc.

	 	

	By:

	 	/s/ V. Peter Harder
	
 
	 	 
	Telesat Canada

	 	

	By:

	 	/s/ V. Peter Harder
	
 
	 	 
	Loral Space & Communications Inc.

	By:

	 	/s/ Avi Katz
	
 
	 	 
	Public Sector Pension Investment Board

	By:

	 	/s/ James Pitman; /s/ Frederic Despars
	
 
	 	 
	4440480 Canada Inc.

	 	

	By:

	 	/s/ Avi Katz
	
 
	 	 
	
 
	 	/s/ Paul D. Bush
	
 
	 	 
	
 
	 	Paul D. Bush

SCHEDULE “A”

TO THE GRANT AGREEMENT

The Participant may not transfer any Shares or other securities received upon the exercise of
the Award, or Shares resulting from the conversion of the Shares into other Equity Shares, or any
interest therein, (in this Schedule A, “Shares”) to any person except as permitted herein:

	(i)	 	The Participant may transfer Shares to a Permitted Transferee as defined in Section 5.5 of
the Plan (with the prior consent of the Board, which consent may be withheld in the Board’s
sole discretion), or to a Canadian immigration trust, subject to compliance with the
conditions precedent set out in Section 5.6 of the Plan, modified as need be to contemplate a
transfer of Shares, instead of a transfer of an Award;

	(ii)	 	Prior to the completion by the Company of an Initial Public Offering for Equity Shares of the
Company, there shall be no transfer of Shares except as provided in (i) above, or as otherwise
expressly provided in the Grant Agreement.

	(iii)	 	After the completion of an Initial Public Offering for Equity Shares of the Company, the
Participant shall be entitled to sell without restriction the Selldown Percentage of Shares
acquired by the Participant upon exercise of the Award (and Shares subject to the Award which
have vested). The “Selldown Percentage” shall equal (a) the percentage of all Equity Shares
as shall have been sold by PSP or Loral (and their Permitted Transferees as defined in the
Accession Agreement) in the Initial Public Offering or after the Initial Public Offering
(other than sales to PSP, Loral or a Permitted Transferee as defined in the Accession
Agreement) relative to the number of Equity Shares held by PSP and Loral immediately prior to
the Initial Public Offering or (b) 100% if PSP, Loral and their Permitted Transferees (as
defined in the Accession Agreement) cease to hold at least 70% of all Equity Shares following
the Initial Public Offering.

	(iv)	 	The Participant shall be entitled to participate in any public offering of Common Shares of
the Company including an initial public offering in the manner provided in Sections 6.03 and
6.04 of the Unanimous Shareholders Agreement, but with the status only of “Included Holder” as
defined in Section 6.03, provided that in no event shall the number of shares subject to such
participation exceed the Selldown Percentage.

	(v)	 	References on this Schedule to PSP or Loral shall also include their respective subsidiaries
owning Equity Shares.

	(vi)	 	Definitions:

“Competitor” is any corporation, firm, partnership, proprietorship or other entity which
engages in the Satellite Business (as defined below) in any of the same countries, states,
provinces or other political subdivisions of countries in which the Company or its
Subsidiaries are engaged in the Satellite Business as of the date of Participant’s
termination of employment and is a material competitor of the Company (or its Subsidiaries)
in such countries, states, provinces or other political subdivisions of countries with
respect to a material amount of Satellite Business of the Company and its Subsidiaries (what
is material being determined based on the 5-year business plan in effect for the Company and
its Subsidiaries as of the date of Participant’s termination of employment).

“Satellite Business” shall mean the business of communication of electronic video, data,
voice or other information by transmission by satellite operating in the Fixed Satellite
Service frequencies for hire in any of the geographic areas in which the Company or its
Subsidiaries operate such Fixed Satellite Service frequencies as of the date of
Participant’s termination of employment.Exhibit 10.1

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT

This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of November 14, 20l3, and is entered into by and among Comvest Capital II, L.P., as Administrative Agent for the lenders (“Lenders”) party to the Credit Agreement (as defined below) (in such capacity, together with its permitted successors and assigns in such capacity, “Administrative Agent”), the Lenders, RMG Networks Holding Corporation, a Delaware corporation formerly known as SCG Financial Acquisition Corp. (“RMG Parent”), the direct and indirect domestic Subsidiaries of RMG Parent listed on the signature pages hereto as “Borrowers” (together with RMG Parent, collectively, “Borrowers”) and the other direct and indirect domestic Subsidiaries of RMG Parent listed on the signature pages hereto as “Guarantors” (collectively, “Guarantors” and together with Borrowers, collectively, “Loan Parties”).

W I T N E S SE T H:

WHEREAS, the Loan Parties, Administrative Agent and the Lenders signatory thereto from time to time are parties to that certain Credit Agreement dated as of April 19, 2013 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; capitalized terms used but not defined herein have the definitions provided therefor in the Credit Agreement);

WHEREAS, the Borrowers have requested that Administrative Agent and the Lenders agree to amend the Credit Agreement as provided herewith so as to, among other things, provide additional loans to the Borrowers; and

WHEREAS, Administrative Agent and the undersigned Lenders have agreed to amend the Credit Agreement and provide such additional loans, subject to the terms and conditions set forth herein;

NOW THEREFORE, in consideration of the mutual conditions and agreements set forth in the Credit Agreement and this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Amendments. Subject to the satisfaction of the applicable conditions set forth in Section 2 below, and in reliance on the representations and warranties set forth in Section 3 below, Administrative Agent and the undersigned Lenders hereby agree that, the Credit Agreement shall be, and hereby is, amended as follows:

(a) The following terms are added to Section 1.01 of the Credit Agreement is proper alphabetical order, as follows:

“BrazilCo” means a Subsidiary of a Loan Party formed under the laws of the country of Brazil.

“Comvest” has the meaning set forth in Section 2.01.

“Eligible Receivables” means the accounts receivable of the Companies determined by Administrative Agent to be Eligible Receivables in the exercise of its reasonable discretion.

“Loan Coverage Cure” has the meaning set forth in Section 6.01(n).

“Original Term Loan” has the meaning set forth in Section 2.01.

“Second Amendment” means that certain Second Amendment to Credit Agreement dated as of November 14, 2013 among Borrowers, Guarantors, Administrative Agent and the Lenders party thereto.

“Second Amendment Closing Date” means November 14, 20l3.

“Specified Coverage Assets” means (i) at any time the Administrative Agent and the Lenders have elected not to receive material non-public information (within the meaning of United States federal securities laws) pursuant to the terms of the Second Amendment, the sum of (x) 85% times the product of (A) 70% times (B) the face amount of Eligible Receivables, plus (y) unrestricted cash on hand, plus (z) any amounts paid to the Lenders by any Loan Parties pursuant to the Specified Equity Agreement from and after the Second Amendment Effective Date, and (ii) at all other times, the sum of (x) 85% times the product of (A) 85% times (B) the face amount of Eligible Receivables, plus (y) unrestricted cash on hand, plus (z) any amounts paid by any of the Loan Parties to the Lenders pursuant to the Specified Equity Agreement from and after the Second Amendment Effective Date.

“Specified Equity Agreement” means that certain Equity Rights Agreement dated as of the Second Amendment Closing Date between Comvest and RMG Parent, as the same may be amended or otherwise modified from time to time in accordance with the terms thereof.

“Specified Shares” has the meaning set forth in Section 2.01.

(b) The defined term “Administrative Agent’s Account”, set forth in Section 1.01 of the Credit Agreement, is hereby amended and restated in its entirety as follows:

“Administrative Agent’s Account” means the following account or such other account designated by the Administrative Agent from time to time as the account into which (i) the Loan Parties shall make all payments to the Administrative Agent for the benefit of the Administrative Agent and the Lenders under this Agreement and the other Loan Documents and (ii) the Lenders shall deposit funds to be loaned to Borrowers hereunder:

			
	Bank:

	 
	Citibank, N .A.

	City/State:

	 
	New York, New York

	ABA#:

	 
	021-000-089

	Account Name:

	 
	Comvest Capital II, LP

	Account Number:

	 
	4970628040

	Reference:

	 
	RMG Networks

(c) The defined term “Applicable Margin”, set forth in Section 1.01 of the Credit Agreement, is hereby amended and restated in its entirety as follows:

“Applicable Margin” means, for any day, for (i) Base Rate Loans, six and one-fourth of one percent (6.25%) per annum and (ii) LIB OR Loans, seven and one-half percent (7.50%) per annum.

(d) The defined term “Change of Control”, set forth in Section 1.01 of the Credit Agreement, is hereby amended by amending and restating clause (v) thereof as follows: “(v) [Intentionally omitted]”.

(e) The defined term “LIBOR”, set forth in the Section 1.01 of the Credit Agreement, is hereby amended by deleting the clause “one and one-half percent (1.50%)” set forth therein, and inserting in lieu thereof the clause “one-half of one percent (0.50%)”.

(f) The defined term “Loan Document”, set forth in Section 1.01 of the Credit Agreement, is hereby amended by (i) deleting the clauses “the Fee Letter,” and “the Subordination Agreement,” set forth therein and (ii) adding the new sentence at the end of such defined term: “F or purposes of clarification, the Specified Equity Agreement shall constitute a Loan Document.”

(g) The defined term “Permitted Indebtedness”, set forth in Section 1.01 of the Credit Agreement, is hereby amended by replacing the dollar amounts in the following indicated clauses set forth therein with the following new dollar amounts: (iii) $1,500,000, (vi) $10,000,000, (vii) $5,000,000, (xiv) $1,000,000 and (xvi) $1,000,000.

(h) The defined term “Permitted Indebtedness”, set forth in Section 1.01 of the Credit Agreement, is hereby further amended by amending and restating clause (v) thereof as follows: “(v) [Intentionally omitted]”.

(i) The defined term “Related Transaction Documents”, set forth in Section 1.01 of the Credit Agreement, is hereby amended by deleting the clause “and the Subordinated Loan Documents” set forth therein.

(j) The defined term “Restricted Payment”, set forth in Section 1.01 of the Credit Agreement, is hereby amended by deleting the clause “including the Indebtedness incurred pursuant to the Subordinated Loan Documents,” set forth therein and by amending and restating clause (ii) thereof as follows: “(ii) any repurchase, redemption, retirement, defeasance, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Capital Stock (other than repurchases by any Loan Party pursuant to the Specified Equity Agreement) of any Loan Party or any of its Subsidiaries, now or hereafter outstanding”.

(k) The defined term “Term Loan”, set forth in Section 1.01 of the Credit Agreement, is hereby amended and restated in its entirety as follows:

“Term Loan” has the meaning specified therefor in Section 2.01.

-2-

(l) Each of the defined terms “Excess Cash Flow”, “Excess Cash Flow Certificate”, “Fee Letter”, “Subordination Agreement”, “Subordinated Credit Agreement”, ‘Subordinated Loan Documents”, “Term Loan Commitment” and “Total Term Loan Commitment”, set forth in Section 1.01 of the Credit Agreement, is hereby deleted in its entirety.

(m) Section 2.010fthe Credit Agreement is hereby amended and restated in its entirety as follows:

Section 2.01     Term Loans.

On the Closing Date, Lenders made a term loan to Borrowers (the “Original Term Loan”) in the original principal amount of $24,000,000. Immediately prior to the effectiveness of the Second Amendment, the outstanding principal balance of the Original Term Loan owing to the Lenders party hereto was $4,352,136.76. On the terms and subject to the conditions set forth herein and in the Second Amendment, on the Second Amendment Closing Date (i) certain terms of the Original Term Loan were modified, (ii) Comvest Capital II, L.P., in its capacity as a Lender (“Comvest”), advanced $3,647,863.24 to Borrowers in exchange for (A) an additional term Loan in the stated principal amount of $3,647,863.24 (the “Second Amendment Term Loan”) and (B) lS0,000 duly authorized, issued and unrestricted shares of common stock of RMG Parent (the “Specified Shares”) and (iii) the Borrowers repaid all principal, interest, fees and expenses due and owing to each of the Lenders, other than Comvest, resulting in Comvest being the sole Lender as of the Second Amendment Closing Date. After giving effect to the transactions described in the immediately preceding sentence, the combined outstanding principal amounts of the Original Term Loan and the Second Amendment Term Loan (referred to herein, together, as the “Term Loan”) as of the Second Amendment Closing Date was $8,000,000. Any principal amount of the Term Loan which is repaid or prepaid may not be reborrowed.

(n) Section 2.03(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(a) The outstanding principal of the Term Loan, together with accrued and unpaid interest thereon, shall be due and payable on the Termination Date.

(o) Section 2.05(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: “[Intentionally Omitted]”.

(p) Section 2.0S(c) of the Credit Agreement is hereby amended by amending and restating clause (i) thereof as follows: “[Intentionally Omitted]”

(q) Section 2.05(c) of the Credit Agreement is hereby further amended by deleting the dollar amount “$2S0,000” set forth in clause (ii) thereof, and by inserting in lieu thereof the dollar amount “$500,000”.

(r) Section 2.0S(c) of the Credit Agreement is hereby further amended by amending and restating clause (v) thereof as follows: “[Intentionally Omitted]”

(s) Section 2.06(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: “[Intentionally Omitted]”.

(t) Section 2.06(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(b) If for any reason (i) Term Loans are optionally prepaid pursuant to Section 2.0S(b), (ii) Term Loans are prepaid in connection with the exercise by the Loan Parties of the Loan Coverage Cure, (iii) Term Loans are required to be mandatorily prepaid pursuant to Section 2.05(c) (other than pursuant to (x) Section 2.0S(c)(ii) (to the extent constituting Dispositions permitted to be, and actually, reinvested pursuant to such Section) and (y) Section 2.05(c)(iv» and/or (iv) this Agreement is terminated prior to the Termination Date, in view of the impracticality and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Agent’s and each Lender’s lost profits as a result thereof, Borrowers agree to pay to Agent, for the benefit of Lenders, upon the effective date of such payment or termination (as applicable), a prepayment premium in the amount equal to:

-3-

		
	Amount

	Period

	Five (5%) percent of the amount prepaid (in the case of optional prepayments), the amount required to be prepaid (in the case of mandatory prepayments) and/or the then outstanding amount of the Term Loans (in the case of Agreement termination)

	From the Second Amendment Closing Date to and including the date that is the 18th month anniversary of the Second Amendment Closing Date

	Two (2%) percent of the amount prepaid (in the case of optional prepayments), the amount required to be prepaid (in the case of mandatory prepayments) and/or the then outstanding amount of the Term Loans (in the case of Agreement termination)

	From the date following the 18th month anniversary of the Closing Date to and including the date that is the 30th month anniversary of the Second Amendment Closing Date

	Zero (0%) percent of the amount prepaid (in the case of optional prepayments), the amount required to be prepaid (in the case of mandatory prepayments) and/or the then outstanding amount of the Term Loans (in the case of Agreement termination)

	From and after the date following the 30th month anniversary of the Second Amendment Closing Date

Any such fees shall be presumed to be the amount of damages sustained by Administrative Agent and Lenders as a result of such prepayment or early termination (as applicable), and Borrowers agree that it is reasonable under the circumstances currently existing.

(u) Section 5.01(x) of the Credit Agreement IS hereby amended and restated in its entirety as follows:

(x) Merger Agreements. The Borrowers have delivered to the Administrative Agent a complete and correct copy of each Merger Agreement, including all schedules and exhibits thereto, and all other agreements, instruments and documents pertaining thereto. No authorization or approval or other action by, and no notice to filing with or license from, any Governmental Authority was required for the consummation of the RMG Acquisition, other than such as have been obtained on or prior to the consummation of the RMG Acquisition. No authorization or approval or other action by, and no notice to filing with or license from, any Governmental Authority was required for the consummation of the Symon Acquisition, other than such as have been obtained on or prior to the Closing Date. Each of the representations and warranties contained in each Merger Agreement and made by a Loan Party (and to the best knowledge of the Borrowers, each other Person party thereto) is true, correct and complete in all material respects. All conditions precedent to each Merger Agreement have been fulfilled or waived, the Merger Agreement has not been amended or otherwise modified, and there has been no breach of any material term or condition of the Merger Agreement, except as otherwise disclosed by the Borrowers to Administrative Agent in writing prior to the Closing Date.

(v) Section 5.01 (z) of the Credit Agreement is hereby deleted in its entirety.

(w) Section 6.01(a)(i) of the Credit Agreement is hereby amended by deleting the clause “, and (C) a fully completed and duly executed Excess Cash Flow Certificate” set f0l1h therein.

(x) Section 6.01(a)(xii) of the Credit Agreement is hereby amended and restated in its entirety as follows: “[intentionally omitted], and”

(y) Section 6.01(e) of the Credit Agreement is hereby amended by deleting the clause “one (1) such inspection or examination in any calendar year” and inserting in lieu thereof the clause “two (2) such inspections or examinations in any calendar year”.

(z) New Section 6.01(n) is hereby added to the Credit Agreement, immediately following Section 6.01(m) thereof, as follows:

(n) Loan Coverage. From and after the Second Amendment Closing Date through the period ending December 31, 2014, cause the Specified Coverage Assets to equal or exceed the outstanding principal amount of the Term Loan; provided, that in the event the Specified Coverage Assets are less than the outstanding principal amount of the Term Loan by not more than $2,000,000, then following five (5) business days prior written notice (to be delivered no later than five (5) business days following receipt of written notice from the Administrative Agent to the Loan Parties of such shortfall), the Loan Parties shall be permitted, not more than once during any calendar year, to prepay the Term Loan in the amount greater than or equal to the shortfall in the Specified Coverage Assets (herein, a “Loan Coverage Cure”).

-4-

(aa) Section 6.02(c) of the Credit Agreement is hereby amended by deleting the dollar amount “$250,000” set forth in clause (ii) thereof, and by inserting in lieu thereof the dollar amount “$500,000”.

(bb) Section 6.02(e) of the Credit Agreement is hereby amended by amending and restating clause (iii) thereof as follows: “(iii) loans, advances, guarantees, other extensions of credit and capital contributions made by Loan Parties to Subsidiaries which are not Loan Parties (other than loans, advances, guarantees, other extensions of credit and capital contributions made by Loan Parties to BrazilCo) in an aggregate amount not to exceed (x) $250,000 at any time outstanding, (y) loans, advances, guarantees, other extensions of credit and capital contributions made by Loan Parties to BrazilCo not to exceed (1) $750,000 during the period from the Second Amendment Effective Date through the first anniversary of the Second Amendment Closing Date and (2) $500,000 from and after the first anniversary of the Second Amendment Closing Date through and including the second anniversary of the Second Amendment Closing Date, and (z) in addition to the preceding clauses (x) and (y), $1,000,000 at any time outstanding with regard to one or more advances of inventory to one or more non-Loan Party Subsidiaries of SCG (so long as no Default or Event of Default has occurred and is continuing at the time of such advance); provided that each such advance shall be paid, in full, within one hundred twenty (120) days of the date of such advance;”

(cc) Section 6.02(t) of the Credit Agreement is hereby amended by amending and restating clause (vii) thereof as follows: “(vii) the Borrowers may make regularly scheduled cash interest payments and reimbursement of fees, costs and expenses with respect to any Subordinated Debt (excluding cash interest payments with respect to Qualified Subordinated Indebtedness) in each case to the extent permitted pursuant to the applicable subordination agreement or other governing subordination provisions. “

(dd) Section 6.02(p) of the Credit Agreement is hereby amended by deleting the clause “the Subordinated Loan Documents,” set forth therein.

(ee) Section 6.03 of the Credit Agreement is hereby amended by amending and restating clauses (a) through Cf) thereof, as follows:

(a)

Consolidated EBITDA. Permit Consolidated EBITDA of SCG and its Subsidiaries for the four (4) consecutive Fiscal Quarters ending on any date set forth below to be less than the applicable amount set forth below:

			
	First Quarter End

	 
	Minimum Required

Consolidated EBITDA

	December 31, 2014

	 
	$4,000,000

	March 31, 2015

	 
	$4,000,000

	June 30, 2015

	 
	$4,000,000

	September 30, 2015 and each December 31, March 31, June 30 and September 30 thereafter

	 
	$4,000,000

(b)

Liquidity. Permit unrestricted cash on hand of the Loan Parties at any time to be less than $1,500,000.

(c)

[Intentionally Omitted].

(d)

Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio of SCG and its Subsidiaries for any period of four (4) consecutive Fiscal Quarters, commencing with the four (4) consecutive Fiscal Quarter period ending December 31, 2014, to be less than 1.20 to 1.0.

(e)

[Intentionally Omitted].

(f)

Capital Expenditures. Make or commit or agree to make, or permit any of its Subsidiaries to make or commit or agree to make, any Capital Expenditure (by purchase or Capitalized Lease) that would cause the aggregate amount of all Capital Expenditures made by SCG and its Subsidiaries to exceed the amount set forth below in any period set forth below:

			
	Period

	 
	Permitted Maximum

Capital Expenditures

	Fiscal Year 2014

	 
	$2,000,000

	Fiscal Year 2015

	 
	$2,000,000

	Fiscal Year 2016, and each Fiscal Year thereafter

	 
	$2,000,000

-5-

(ff) Section 7.01(c) of the Credit Agreement is hereby amended by deleting the clause “Section 6.01(e), (g) or 0)” set forth therein, and inserting in lieu thereof the clause “Section 6.0l(e), (g), (j) or (n)”.

(gg) Section 7.01(e) of the Credit Agreement is hereby amended by deleting the clause “or (B) without limitation of the preceding clause (A), any “Event of Default” exists under, and as such term is defined in, the Subordinated Loan Documents” set forth therein.

(hh) Section 8.06 of the Credit Agreement is hereby amended by deleting the clause “the Term Loan Commitment hereunder and” set forth therein.

(ii) Section 10.01(a) of the Credit Agreement is hereby amended by amending and restating the notice address for the Administrative Agent as follows:

if to the Administrative Agent, at the following address:

Comvest Capital II, L.P.

525 Okeechobee Blvd., Suite 1050

West Palm Beach, FL 33401

Attention: Dan Lee

Telephone: 561-727-1850

Telecopier: 561-727-2100

Email: daniell@comvest.com

(jj) Section 1 0.06( c) of the Credit Agreement is hereby amended by deleting the clause “and the Term Loan Commitments of,” set forth therein.

(kk) Section 10.15 of the Credit Agreement is hereby amended by deleting the clause “the Term Loan Commitments,” set forth therein.

(ll) Schedule 1.01(A) of the Credit Agreement is hereby deleted in its entirety.

(mm) Exhibit D of the Credit Agreement is hereby deleted in its entirety.

2. Conditions to Effectiveness. The effectiveness of Section 1 of this Amendment is subject to the following conditions precedent:

(a) Administrative Agent shall have received a copy of this Amendment executed by each Loan Party and Lenders constituting Required Lenders;

(b) Administrative Agent shall have received each of the documents, instruments and agreements set forth on the closing checklist attached as Exhibit A hereto;

(c) Administrative Agent shall have received, for the benefit of the Lenders, as a closing fee in respect of the loans made to the Loan Parties on the date hereof, $72,957.26 which payment shall be due, in full, on the date hereof, and non-refundable following payment, as applicable;

(d) Administrative Agent shall have received, for the benefit of the Lenders, the Specified Shares, subject to the terms of that certain Equity Rights Agreement of even date herewith between Comvest and RMG Parent; and

(e) after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

3. Representations and Warranties. To induce Administrative Agent and the undersigned Lenders to enter into this Amendment, each Loan Party represents and warrants to Administrative Agent and Lenders that:

(a) the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of such Loan Party and this Amendment has been duly executed and delivered by such Loan Party;

(b) each representation and warranty contained in the Credit Agreement or in any other Loan Document is true and correct in all material respects as of the date hereof, with the same effect as though made on the date hereof (except to the extent that any such representation or warranty speaks to an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date); and

-6-

(c) after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

4. Material Non-Public Information. Notwithstanding anything to the contrary set forth in the Credit Agreement, including without limitation as amended hereby, or any other Loan Document, the Loan Parties hereby agree that, unless otherwise requested in writing by Administrative Agent from time to time, in its sole and absolute discretion, information provided by the Loan Parties to Administrative Agent and the Lenders pursuant to the terms of the Credit Agreement and the other Loan Documents shall exclude any and all material non-public information (within the meaning of United States federal securities laws) with respect to the Loan Parties and their respective affiliates and any of their respective securities (“MNPT”), other than notices required pursuant to Section 6.01(a)(v) of the Credit Agreement. Upon the written request of Administrative Agent from time to time, in its sole and absolute discretion, the Loan Parties shall provide to Administrative Agent and the Lenders all information required under the Credit Agreement, as amended hereby, and the other Loan Documents without any exclusion with respect to MNPI.

5. Board Observation Rights. Comvest Capital II, L.P. (“Comvest”) or its designee shall have the right, on behalf of the Lenders, to: (a) receive notice of all meetings (both regular and special) of the board of directors (or other comparable body)  and/or the equity holders of each of the Loan Parties, as applicable, and each committee of any such board of directors (or other comparable body) (such notice to be delivered or mailed to Comvest as specified in Section 10.Q] of the Credit Agreement at the same time as notice is given to the members of any such board of directors (or other comparable body)  and/or committee  and/or equity holders but in no event later than two (2) Business Days prior to the date of such meeting); (b) be entitled to attend (or, at the option of such representative, monitor by telephone) all such meetings; (c) receive all notices, information, reports and minutes of meetings, which are furnished (or made available) to the members of any such board of directors (or other comparable body)  and/or committee  and/or equity holders at the same time and in the same manner as the same is furnished (or made available) to such members; and (d) be entitled to participate in all discussions conducted at such meetings. If any action is proposed to be taken by any such board of directors (or other comparable body) and/or committee by written consent in lieu of a meeting, the Loan Parties, as applicable, will (if Comvest has then elected to receive MNPI as provided in Section 4) give written notice thereof to Comvest or its applicable designee, which notice shall describe in reasonable detail the nature and substance of such proposed action and shall be delivered not later than the date upon which any member of any such board of directors (or other comparable body) and/or committee receives the same. Each Loan Party will furnish Comvest or its applicable designee with a copy of each such written consent not later than five (5) days after it has been signed by a sufficient number of signatories to make it effective. Comvest or, as applicable, Comvest’s designee shall not constitute a member of any such board of directors (or other comparable body) and/or committee and shall not be entitled to vote on any matters presented at meetings of any such board of directors (or other comparable body) and/or committee or to consent to any matter as to which the consent of any such board of directors (or other comparable body) and/or committee shall have been requested. The Loan Parties will reimburse Comvest or its designee, as applicable, for all reasonable out-of-pocket expenses incurred in connection with attending such meetings and/or exercising any rights under this Section 5. Nothing set forth in this Section 5 shall be deemed to apply or affect the rights of Comvest or any other affiliate of Comvest as an equity holder of any Loan Party. Notwithstanding the foregoing, if any Loan Party receives advice from legal counsel that there is a substantial risk that discussing a specified matter in the presence of a person who is not a member of its board of directors (or other comparable body), or sending specified board materials to such person, would result in such Loan Party’s loss of attorney-client privilege with respect to a specified matter or create a conflict of interest, such Loan Party may exclude Comvest or, as applicable, Comvest’s designee from the portion of a board meeting where such matter will be discussed or exclude such board materials from the materials sent to Comvest or, as applicable, Comvest’s designee, or both, provided that such Loan Party shall promptly notify Comvest or, as applicable, Com vest’s designee that any exclusion from a board meeting or materials distributed to its board of directors (or other comparable body) was effected to preserve its attorney-client privilege or avoid conflicts of interest.

6. Investment Unit. The parties hereto agree and. intend that the Second Amendment Term Loan and the Specified Shares are being issued as an investment unit within the meaning of Section 1273(c)(2) of the Code. The parties further agree that the issue price of the Second Amendment Term Loan for the purposes of the Code is $2,747,863.24 and the purchase price of the Specified Shares is $900,000.

7. Specified Equity Agreement. The parties hereto agree that if, at any time, the performance of Loan Party repurchase obligations under the Specified Equity Agreement would give rise to a breach of the provisions set forth in Section 6.03(b) (a “Liquidity Covenant Breach”), the Loan Parties shall perform such obligations to the extent a Liquidity Covenant Breach would not arise, with the remaining amount of such repurchase obligations to be automatically deferred until the first date thereafter on which the performance of all or any portion of such remaining repurchase obligations would not give rise to a Liquidity Covenant Breach, at which time such repurchase obligations shall be immediately due and payable (with any remaining portion of such repurchase obligations, if any, being subject to continuing deferral as provided herein).

8. Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

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9. References. Any reference to the Credit Agreement contained in any document, instrument or Loan Document executed in connection with the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified by this Amendment.

10. Savings Clause. Nothing set forth in this Amendment shall obligate Agent or any Lender to return or refund to the Borrowers any principal, interest or fees paid to Agent  and/or Lenders prior to the date hereof in accordance with the provisions of the Credit Agreement as then in effect.

11. Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Amendment by telecopier or pdf shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telecopier or pdf shall also deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

12. Ratification. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions of the Credit Agreement and shall not be deemed to be a consent to the modification or waiver of any other term or condition of the Credit Agreement. Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall continue in full force and effect.

13. Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of New York applicable to contracts made and to be performed in the State of New York.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

			
	 
	BORROWERS:

	 
	 
	 

	 
	RMG NETWORKS HOLDING CORPORATION, f/k/a

SCG Financial Acquisition Corp., as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	SCG FINANCIAL MERGER I CORP., as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	RMG NETWORKS HOLDINGS, INC., f/k/a Reach Media Group Holdings, Inc., as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	RMG NETWORKS, INC., as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	SYMON HOLDINGS CORPORATION, as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	SYMON COMMUNICATIONS, INC., as a Borrower

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

Second Amendment to Credit Agreement

			
	 
	GUARANTORS:

	 
	 
	 

	 
	RMG MEDIA NETWORKS, INC., a Delaware 

corporation

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	EMN ACQUISITION CORPORATION, a Delaware 

corporation

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	EXECUTIVE MEDIA NETWORK, INC., a New York

corporation

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	CORPORATE IMAGE MEDIA, INC., a New York 

corporation

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	PROPHET MEDIA LLC, a New York limited liability 

company

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

	 
	 
	 

	 
	 
	 

	 
	SYMON LV, LLC, a Nevada limited liability company

	 
	 
	 

	 
	By:

	/s/ Loren Buck

	 
	Name:

	Loren Buck

	 
	Title:

	Executive Vice President

Second Amendment to Credit Agreement

			
	 
	ADMINISTRATIVE AGENT:

	 
	 
	 

	 
	COMVEST CAPITAL II, L.P., as Administrative Agent

	 
	 
	 

	 
	By:

	/s/ Daniel Lee

	 
	Name:

	Daniel Lee

	 
	Title:

	Managing Director

Second Amendment to Credit Agreement

			
	 
	LENDERS:

	 
	 
	 

	 
	COMVEST CAPITAL II, L.P., as a Lender

	 
	 
	 

	 
	By:

	/s/ Daniel Lee

	 
	Name:

	Daniel Lee

	 
	Title:

	Managing Director

Second Amendment to Credit Agreement

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