Document:

EX-10.3

EXHIBIT 10.3

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the “Agreement”) is made and entered into as of
this 19th day of December, 2008 by and among ATS Medical, Inc., a Minnesota corporation (the
“Company”), and the “Investors” named in that certain Common Stock and Warrant Purchase
Agreement, dated as of the date hereof (the “Purchase Agreement”), by and among the Company
and the Investors.

The parties hereby agree as follows:

1. Certain Definitions. As used in this Agreement, the following terms shall have the
following meanings:

“Affiliate” means, with respect to any Person, any other Person which directly or
indirectly controls, is controlled by, or is under common control with, such Person.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New
York City are open for the general transaction of business.

“Common Stock” shall mean the Company’s common stock, par value $0.01 per share.

“Effectiveness Date” means the date on which the Registration Statement is declared
effective by the SEC.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

“Filing Date” means the date on which the Registration Statement is filed with the
SEC.

“Filing Deadline” shall have the meaning set forth in Section 2(a) below.

“Investors” shall mean the Investors identified in the Purchase Agreement and any
Affiliate or permitted transferee of any Investor who is a subsequent holder of any
Registrable Securities.

“Person” means an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, sole
proprietorship, unincorporated organization, governmental authority or any other form of
entity not specifically listed herein.

“Prospectus” shall mean the prospectus included in the Registration Statement, as
amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by the Registration Statement
and by all other amendments and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such prospectus.

“Register,” “registered” and “registration” refer to a registration
made by preparing and filing a Registration Statement or similar document in compliance
with the Securities Act (as defined below), and the declaration or ordering of
effectiveness of the Registration Statement or document.

“Registrable Securities” shall mean (i) the Shares, (ii)  the Warrant Shares and
(iii) any other securities issued or issuable with respect to or in exchange for Shares and
the Warrant Shares, including shares issued upon any stock split, stock dividend,
recapitalization, subdivision or similar event, provided that a security shall cease to
be a Registrable Security upon (A) sale pursuant to a Registration Statement or Rule 144
under the Securities Act or (B) such security becoming eligible for sale by the Investors
pursuant to the last sentence of Rule 144(b)(1)(i).

“Registration Statement” shall mean the registration statement of the Company filed
under the Securities Act that covers the resale of the Registrable Securities pursuant to
the provisions of this Agreement, amendments and supplements to such Registration
Statement, including post-effective amendments, all exhibits and all material incorporated
by reference in such Registration Statement.

“Required Investors” means the Investors holding a majority of the Registrable
Securities.

“SEC” means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

“Shares” means the shares of Common Stock issued pursuant to the Purchase
Agreement.

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the
Warrants.

“Warrants” means the Warrants issued pursuant to the Purchase Agreement.

2. Registration.

	 	(a)	 	Registration Statements. As soon as reasonably practicable following
the Closing (as defined in the Purchase Agreement), but no later than thirty (30) days
after the Closing (the “Filing Deadline”), the Company shall prepare and file
with the SEC a Registration Statement on Form S-3 (the “Registration
Statement”) covering the resale of the Shares and the Warrant Shares. The
Registration Statement also shall cover, to the extent allowable under the Securities
Act and the rules and regulations promulgated thereunder, such indeterminate number of
additional shares of Common Stock resulting from stock splits, stock dividends or
similar transactions with respect to the Shares. The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of effectiveness
thereof) shall be provided in accordance with Section 3(c) to the Investors and their
counsel prior to its filing or other submission. If a Registration Statement covering
the Registrable Securities is not filed with the SEC on or prior to the Filing
Deadline, the Company will make pro rata payments to each Investor, as liquidated
damages and not as a penalty, in an amount equal to one percent (1.0%) of the
aggregate amount invested by such Investor for each 30-day period or pro rata for any
portion thereof following the Filing Deadline for which no Registration Statement is
filed with respect to the Registrable Securities; provided, however,
that the aggregate amount of such liquidated damages payable to each Investor,
together with the amount of any liquidated damages previously paid pursuant to any
provision of this Agreement, shall under no circumstances exceed twelve percent (12%)
of the aggregate amount invested by such Investor. Such payments shall be made to each
Investor in cash.

	 	(b)	 	Expenses. The Company will pay all expenses associated with
registration, including filing and printing fees, the Company’s counsel and accounting
fees and expenses, costs associated with clearing the Registrable Securities for sale
under applicable state securities laws and listing fees, including fees and expenses
of a single counsel to the Investors, but excluding discounts, commissions, fees of
underwriters, selling brokers, dealer managers or similar securities industry
professionals with respect to the Registrable Securities being sold.

	 	(c)	 	Effectiveness.

	 	i.	 	The Company shall use commercially reasonable efforts to have
the Registration Statement declared effective as soon as practicable. The
Company shall notify the Investors by facsimile or e-mail as promptly as
practicable, and in any event, within twenty-four (24) hours, after the
Registration Statement is declared effective and shall provide the Investors
with copies of any related Prospectus to be used in connection with the sale
or other disposition of the securities covered thereby. If the Registration
Statement is not declared effective by the SEC within (i) ninety (90) days
after the Filing Date if the SEC shall have informed the Company that no
review of the Registration Statement will be made or (ii) one hundred twenty
(120) days after the Filing Date if the SEC shall have informed the Company
that a review of the Registration Statement will be made, then the Company
will make pro rata payments to each Investor, as liquidated damages and not as
a penalty, in an amount equal to one percent (1.0%) of the aggregate amount
invested by such Investor for each 30-day period or pro rata for any portion
thereof following the date by which the Registration Statement should have
been effective; provided, however, that the aggregate amount
of such liquidated damages payable to each Investor, together with the amount
of any liquidated damages previously paid pursuant to any provision of this
Agreement, shall under no circumstances exceed twelve percent (12%) of the
aggregate amount invested by such Investor. Such payments shall be made to
each Investor in cash.

	 	ii.	 	The Company shall not file a registration statement on Form
S-1 or Form S-3 until the Effectiveness Date of the Registration Statement.

3. Suspension.

	 	(a)	 	Subject to Section 3(b) below, in the event: (i) of any request by the SEC or
any other federal or state governmental authority during the period of effectiveness
of the Registration Statement for amendments or supplements to the Registration
Statement or related prospectus or for additional information so that the Registration
Statement will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading or otherwise fail to comply with the applicable rules and
regulations of the federal securities laws; (ii) of the issuance by the SEC or any
other federal or state governmental authority of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings for
that purpose; (iii) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, provided that, considering the advice of counsel, the
Company reasonably believes that it must qualify in such jurisdiction; (iv) of any
event or circumstance that, considering the advice of counsel, the Company reasonably
believes necessitates the making of any changes in the Registration Statement or
related prospectus, or any document incorporated or deemed to be incorporated therein
by reference, so that, in the case of the Registration Statement, it will not contain
any untrue statement of a material fact or any omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and that in the case of a related prospectus, it will not contain any
untrue statement of a material fact or any omission to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (v) that the Company
reasonably believes, considering the advice of counsel, that the Company may, in the
absence of a suspension described hereunder, be required under state or federal
securities laws to disclose any corporate development, the disclosure of which could
reasonably be expected to have a material adverse effect upon the Company, its
shareholders, a potentially material transaction or event involving the Company, or
any negotiations, discussions or proposals directly relating thereto; then the Company
shall deliver a certificate in writing to each Holder of Registrable Securities (the
“Suspension Notice”) to the effect of the foregoing (but in no event, without
the prior written consent of an Investor, shall the Company disclose to such Investor
any of the facts or circumstances regarding any material nonpublic information) and,
upon receipt of such Suspension Notice, the Holder will refrain from selling any
Registrable Securities pursuant to the Registration Statement (a “Suspension”)
until the Holder’s receipt of copies of a supplemented or amended prospectus prepared
and filed by the Company or until the Holder is advised in writing by the Company that
the current prospectus may be used and the Holder has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated by
reference in any such prospectus.

	 	(b)	 	Notwithstanding the foregoing, the Company shall not suspend the Registration
Statement or related prospectus for more than thirty (30) consecutive days or for a
total of more than sixty (60) days in any twelve (12) month period (each a
“Permitted Suspension “and together the “Permitted Suspensions”).

	 	(c)	 	On any day after the Effectiveness Date for the Registration Statement, sales
of the Registrable Securities as may be required to be included on the Registration
Statement cannot be made pursuant to the Registration Statement (including, without
limitation, because of a failure to keep the Registration Statement effective, to
disclose such information as is necessary for sales to be made pursuant to the
Registration Statement or to register sufficient shares of Registrable Securities or
because of a Suspension) then the Company will make pro rata payments to each
Investor, as liquidated damages and not as a penalty, in an amount equal to one
percent (1.0%) of the aggregate amount invested by such Investor for each 30-day
period or pro rata for any portion thereof following the date by which such sales of
Registrable Securities under the Registration Statement cannot be made;
provided, however, that the aggregate amount of such liquidated
damages payable to each Investor, together with the amount of any liquidated damages
previously paid pursuant to any provision of this Agreement, shall under no
circumstances exceed twelve percent (12%) of the aggregate amount invested by such
Investor. Such payments shall be made to each Investor in cash. Notwithstanding the
foregoing, the Company shall not be required to pay liquidated damages during any
Permitted Suspension.

	 	(d)	 	The Company will use commercially reasonable efforts to terminate a
Suspension as promptly as practicable after delivery of a Suspension Notice to the
Holders.

4. Company Obligations. The Company will use commercially reasonable efforts to effect the
registration of the Registrable Securities in accordance with the terms hereof, and pursuant
thereto the Company will, as expeditiously as possible:

	 	(a)	 	cause the Registration Statement to become effective and to remain
continuously effective for a period that will terminate upon the earlier of (i) the
date on which all Registrable Securities have been sold pursuant to the Registration
Statement, as the Registration Statement may be amended from time to time, (ii) the
date on which all Registrable Securities covered by the Registration Statement may be
sold pursuant to Rule 144 in a ninety (90) day period and (iii) the two (2) year
anniversary of the Effectiveness Date of the Registration Statement (the
“Effectiveness Period”) and advise the Investors in writing when the
Effectiveness Period has expired;

	 	(b)	 	prepare and file with the SEC such amendments and post-effective amendments
to the Registration Statement and such supplements to the Prospectus as may be
necessary to keep the Registration Statement effective for the period specified in
Section 4(a) and to comply with the provisions of the Securities Act and the Exchange
Act with respect to the distribution of all of the Registrable Securities covered
thereby;

	 	(c)	 	provide copies to and permit counsel designated by the Investors to review
the Registration Statement and any amendments or supplements thereto and any comments
made by the staff of the SEC and the Company’s responses thereto a reasonable period
of time prior to its filing with the SEC or its receipt from the SEC as applicable and
shall duly consider comments made by such counsel thereon;

	 	(d)	 	furnish to the Investors and their legal counsel (i) promptly after the same
is prepared and publicly distributed, filed with the SEC, or received by the Company
(but not later than two (2) Business Days after the filing date, receipt date or
sending date, as the case may be) one (1) copy of the Registration Statement and any
amendment thereto, the preliminary prospectus, free writing prospectus and Prospectus
and each amendment or supplement thereto (as applicable), and each letter written by
or on behalf of the Company to the SEC or the staff of the SEC, and each item of
correspondence from the SEC or the staff of the SEC, relating to the Registration
Statement (other than any portion of any thereof which contains information for which
the Company has sought confidential treatment), and (ii) an electronic copy of a
Prospectus, including a preliminary prospectus and any free writing prospectus, and
all amendments and supplements thereto and such other documents as each Investor may
reasonably request in connection with the disposition of such Registrable Securities
owned by such Investor that are covered by the Registration Statement;

	 	(e)	 	use commercially reasonable efforts to (i) prevent the issuance of any stop
order or other suspension of effectiveness and, (ii) if such order is issued, obtain
the withdrawal of any such order at the earliest practicable time and to notify each
Investor of the issuance of such an order and the resolution thereof;

	 	(f)	 	prior to any public offering of Registrable Securities, use commercially
reasonable efforts to register or qualify or cooperate with the Investors and their
counsel in connection with the registration or qualification of the Registrable
Securities for offer and sale under the securities or blue sky laws of such
jurisdictions requested by the Investors and do any and all other commercially
reasonable acts or things necessary or advisable to enable the distribution in such
jurisdictions of the Registrable Securities covered by the Registration Statement;
provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it
would not otherwise be so subject but for this Section 3(f), or (iii) file a general
consent to service of process in any such jurisdiction;

	 	(g)	 	use commercially reasonable efforts to cause all Registrable Securities
covered by the Registration Statement to be listed on each securities exchange,
interdealer quotation system or other market on which similar securities issued by the
Company are then listed;

	 	(h)	 	immediately notify the Investors, at any time when a Prospectus relating to
Registrable Securities is required to be delivered under the Securities Act, upon
discovery that, or upon the happening of any event as a result of which, the
Prospectus included in the Registration Statement, as then in effect, includes an
untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in light of
the circumstances then existing, and at the request of any such holder, promptly
prepare and furnish to such holder an electronic copy of a supplement to or an
amendment of such Prospectus as may be necessary so that, as thereafter delivered to
the purchasers of such Registrable Securities, such Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of
the circumstances then existing;

	 	(i)	 	otherwise use commercially reasonable efforts to comply with all applicable
rules and regulations of the SEC under the Securities Act and the Exchange Act, take
such other actions as may be reasonably necessary to facilitate the registration of
the Registrable Securities hereunder; and make available to its security holders, as
soon as reasonably practicable, but not later than the Availability Date (as defined
below), an earnings statement covering a period of at least twelve (12) months,
beginning after the effective date of the Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act,
including Rule 158 promulgated thereunder (for the purpose of this subsection 3(i),
“Availability Date “means the 45th day following the end of the fourth fiscal
quarter that includes the effective date of the Registration Statement, except that,
if such fourth fiscal quarter is the last quarter of the Company’s fiscal year,
“Availability Date “means the 90th day after the end of such fourth fiscal
quarter); and

	 	(j)	 	with a view to making available to the Investors the benefits of Rule 144 (or
its successor rule) and any other rule or regulation of the SEC that may at any time
permit the Investors to sell shares of Common Stock to the public without
registration, the Company covenants and agrees to: (i) make and keep public
information available, as those terms are understood and defined in Rule 144, during
the Effectiveness Period; (ii) file with the SEC in a timely manner all reports and
other documents required of the Company under the Exchange Act; and (iii) furnish to
each Investor upon request, as long as such Investor owns any Registrable Securities,
(A) a written statement by the Company that it has complied with the reporting
requirements of the Exchange Act, (B) a copy of the Company’s most recent Annual
Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information
as may be reasonably requested in order to avail such Investor of any rule or
regulation of the SEC that permits the selling of any such Registrable Securities
without registration.

5. Obligations of the Investors.

	 	(a)	 	Each Investor shall furnish in writing to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it, as shall be required to effect
the registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request. At least five
(5) Business Days prior to the anticipated filing date of the Registration Statement,
the Company shall notify each Investor of the information the Company requires from
such Investor if such Investor elects to have any of the Registrable Securities
included in the Registration Statement. An Investor shall provide such information to
the Company at least two (2) Business Days prior to the anticipated filing date of the
Registration Statement if such Investor elects to have any of the Registrable
Securities included in the Registration Statement.

	 	(b)	 	Each Investor, by its acceptance of the Registrable Securities agrees to
cooperate with the Company as reasonably requested by the Company in connection with
the preparation and filing of a Registration Statement hereunder, unless such Investor
has notified the Company in writing of its election to exclude all of its Registrable
Securities from the Registration Statement.

	 	(c)	 	Each Investor agrees that, upon receipt of any notice from the Company of
either (i) the commencement of a Suspension pursuant to Section 3, such Investor will
immediately discontinue disposition of Registrable Securities pursuant to the
Registration Statement, until the Investor’s receipt of the supplemented or amended
prospectus filed with the SEC and until any related post-effective amendment is
declared effective and, if so directed by the Company, the Investor shall deliver to
the Company (at the expense of the Company) or destroy (and deliver to the Company a
certificate of destruction) all copies in the Investor’s possession of the Prospectus
covering the Registrable Securities current at the time of receipt of such notice.

6. Indemnification.

	 	(a)	 	Indemnification by the Company. The Company agrees to indemnify and
hold harmless, to the fullest extent permitted by law, the Investors and their
respective directors, officers, employees, shareholders and each Person who controls
any Investor (within the meaning of the Securities Act) against any losses, claims,
damages, liabilities and expense (including reasonable attorneys’ fees) resulting from
or which arise out of or are based up any untrue statement or alleged untrue statement
of a material fact or any omission or alleged omission of a material fact required to
be stated in the Registration Statement or Prospectus or preliminary prospectus or
free writing prospectus or amendment or supplement thereto or necessary to make the
statements therein not misleading and will reimburse each Investor and their
respective directors, officers, employees, shareholders or controlling Persons for any
legal and other expenses reasonably incurred as such expenses are reasonably incurred
by such Person in connection with investigating, defending, settling, compromising or
paying any such loss, claim, damage, liability, expense or action; provided,
however, that the Company will not be liable in any such case if and to the
extent that any such loss, claim, damage or liability arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by an Investor in writing specifically
for use in the Registration Statement or Prospectus or preliminary prospectus or free
writing prospectus.

	 	(b)	 	Indemnification by the Investors. Each Investor agrees, severally but
not jointly, to indemnify and hold harmless, to the fullest extent permitted by law,
the Company, its directors, officers, employees, shareholders and each Person who
controls the Company (within the meaning of the Securities Act) against any losses,
claims, damages, liabilities and expense (including reasonable attorneys’ fees)
resulting from or which arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact or any omission or alleged omission of a material
fact required to be stated in the Registration Statement or Prospectus or preliminary
prospectus or free writing prospectus or amendment or supplement thereto or necessary
to make the statements therein not misleading, to the extent, but only to the extent
that such untrue statement or omission or alleged statement or omission is contained
in any information furnished in writing by such Investor to the Company specifically
for inclusion in the Registration Statement or Prospectus or free writing prospectus
or amendment or supplement thereto, and will reimburse the Company and its directors,
officers, employees, shareholders or controlling Persons for any legal and other
expenses reasonably incurred as such expenses are reasonably incurred by such Person
in connection with investigating, defending, settling, compromising or paying any such
loss, claim, damage, liability, expense or action. In no event shall the liability of
an Investor be greater in amount than the dollar amount of the proceeds (net of all
expense paid by such Investor in connection with any claim relating to this Section 6
and the amount of any damages such Investor has otherwise been required to pay by
reason of such untrue statement or omission or alleged untrue statement or omission)
received by such Investor upon the sale of the Registrable Securities included in the
Registration Statement giving rise to such indemnification obligation.

	 	(c)	 	Conduct of Indemnification Proceedings. Any Person entitled to
indemnification hereunder shall (i) give prompt notice to the indemnifying party of
any claim with respect to which it seeks indemnification and (ii) permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided that any Person entitled to
indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel
shall be at the expense of such Person unless (a) the indemnifying party has agreed to
pay such fees or expenses, or (b) the indemnifying party shall have failed to assume
the defense of such claim within five (5) Business Days after written notice thereof
and employ counsel reasonably satisfactory to such Person or (c) in the reasonable
judgment of any such Person, considering the advice of counsel, a conflict of interest
exists between such Person and the indemnifying party with respect to such claims (in
which case, if the Person notifies the indemnifying party in writing that such Person
elects to employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such claim on
behalf of such Person); and provided, further, that the failure of any
indemnified party to give notice as provided herein shall not relieve the indemnifying
party of its obligations hereunder, except to the extent that such failure to give
notice shall materially adversely affect the indemnifying party in the defense of any
such claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or
expenses of more than one additional firm of attorneys at any time for all such
indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement that
does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all liability in respect of such
claim or litigation.

	 	(d)	 	Contribution. If for any reason the indemnification provided for in
the preceding paragraphs (a) and (b) is unavailable to an indemnified party or
insufficient to hold it harmless, other than as expressly specified therein, then the
indemnifying party shall contribute to the amount paid or payable by the indemnified
party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnified party and the
indemnifying party, as well as any other relevant equitable considerations. No Person
guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the
Securities Act shall be entitled to contribution from any Person not guilty of such
fraudulent misrepresentation. In no event shall the contribution obligation of a
holder of Registrable Securities be greater in amount than the dollar amount of the
proceeds (net of all expenses paid by such holder in connection with any claim
relating to this Section 6 and the amount of any damages such holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation.

7. Miscellaneous.

	 	(a)	 	Amendments and Waivers. This Agreement may be amended only by a
writing signed by the Company and the Required Investors. The Company may take any
action herein prohibited, or omit to perform any act herein required to be performed
by it, only if the Company shall have obtained the written consent to such amendment,
action or omission to act, of the Required Investors.

	 	(b)	 	Notices. All notices and other communications provided for or
permitted hereunder shall be made as set forth in Section 9.4 of the Purchase
Agreement.

	 	(c)	 	Assignments and Transfers by Investors. The provisions of this
Agreement shall be binding upon and inure to the benefit of the Investors and their
respective successors and assigns. An Investor may transfer or assign, in whole or
from time to time in part, to one or more Persons its rights hereunder in connection
with the transfer of Registrable Securities by such Investor to such Person,
provided that such Investor complies with all laws applicable thereto and
provides written notice of assignment to the Company promptly after such assignment is
effected.

	 	(d)	 	Assignments and Transfers by the Company. This Agreement may not be
assigned by the Company (whether by operation of law or otherwise) without the prior
written consent of the Required Investors, provided, however, that
the Company may assign its rights and delegate its duties hereunder to any surviving
or successor corporation in connection with a merger or consolidation of the Company
with another corporation, or a sale, transfer or other disposition of all or
substantially all of the Company’s assets to another corporation, without the prior
written consent of the Required Investors, after notice duly given by the Company to
each Investor.

	 	(e)	 	Benefits of the Agreement. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective permitted successors
and assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors
and assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement.

	 	(f)	 	Counterparts; Faxes. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement may also be executed via
facsimile, which shall be deemed an original.

	 	(g)	 	Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

	 	(h)	 	Severability. Any provision of this Agreement 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 hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereby waive any provision of law which renders any
provisions hereof prohibited or unenforceable in any respect.

	 	(i)	 	Further Assurances. The parties shall execute and deliver all such
further instruments and documents and take all such other actions as may reasonably be
required to carry out the transactions contemplated hereby and to evidence the
fulfillment of the agreements herein contained.

	 	(j)	 	Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

	 	(k)	 	Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This
Agreement shall be governed by, and construed in accordance with, the internal laws of
the State of New York without regard to the choice of law principles thereof. Each of
the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of
the State of New York located in New York County and the United States District Court
for the Southern District of New York for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this Agreement. Each of the
parties hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court. Each party hereto
irrevocably waives any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

1

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first above written.

The Company:

ATS MEDICAL, INC.

By: /s/ Michael R. Kramer

Name: Michael R. Kramer

Title: Chief Financial Officer

THE INVESTORS:

ESSEX WOODLANDS HEALTH VENTURES FUND VIII, L.P.

By: Essex Woodlands Health Ventures VIII, L.P.

Its General Partner

By: Essex Woodlands Health Ventures VIII, LLC

Its General Partner

By: /s/ Martin Sutter

Title: Manager

ESSEX WOODLANDS HEALTH VENTURES FUND VIII-A, L.P.

By: Essex Woodlands Health Ventures VIII, L.P.

Its General Partner

By: Essex Woodlands Health Ventures VIII, LLC

Its General Partner

By: /s/ Martin Sutter

Title: Manager

ESSEX WOODLANDS HEALTH VENTURES FUND VIII-B, L.P.

By: Essex Woodlands Health Ventures VIII, L.P.

Its General Partner

By: Essex Woodlands Health Ventures VIII, LLC

Its General Partner

By: /s/ Martin Sutter

Title: Manager

2EX-10.1

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

LORAL SPACE & COMMUNICATIONS INC.

AND

THE PERSONS LISTED ON THE

SIGNATURE PAGES HEREOF

DATED AS OF DECEMBER 23, 2008

	 	 	 	 	 	 	 	 	 
	ARTICLE I DEFINIT
	 	IONS                                           1
	 	 	 	 
	1.1
	 	Defined Terms
	 		1	
	1.2
	 	General Interpretive Principles
	 		5	
	ARTICLE II
	 	DEMAND REGISTRATION
	 		5	
	2.1
	 	Request for Registration
	 		5	
	2.2
	 	Joining Holders
	 		7	
	2.3
	 	Effective Registration
	 		8	
	2.4
	 	Underwritten Offerings
	 		8	
	2.5
	 	Priority on Demand Registrations
	 		8	
	2.6
	 	Withdrawal and Cancellation of Registration
	 		9	
	2.7
	 	Registration Statement Form
	 		9	
	ARTICLE III
	 	PIGGYBACK  REGISTRATIONS
	 		9	
	3.1
	 	Holder Piggyback Registration
	 		10	
	3.2
	 	Priority on Piggyback Registrations
	 		10	
	3.3
	 	Withdrawals
	 		11	
	3.4
	 	Underwritten Offerings
	 		11	
	ARTICLE IV
	 	SHELF REGISTRATION
	 		12	
	4.1
	 	Shelf Registration Filing
	 		12	
	4.2
	 	Required Period and Shelf Registration Procedures
	 		13	
	ARTICLE V
	 	STANDSTILL AND SUSPENSION PERIODS
	 		13	
	5.1
	 	Loral Standstill Period
	 		13	
	5.2
	 	Suspension Period
	 		14	
	5.3
	 	Holder Standstill Period
	 		15	
	ARTICLE VI
	 	REGISTRATION PROCEDURES
	 		15	
	6.1
	 	Loral Obligations
	 		15	
	6.2
	 	Holder Obligations
	 		19	
	6.3
	 	Subsequent Registration Rights
	 		19	
	ARTICLE VII
	 	INDEMNIFICATION
	 		20	
	7.1
	 	Indemnification by Loral
	 		20	
	7.2
	 	Indemnification by the Holders
	 		21	
	7.3
	 	Notice of Claims, Etc
	 		21	
	7.4
	 	Contribution
	 		22	
	7.5
	 	Indemnification Payments; Other Remedies
	 		23	
	ARTICLE VIII
	 	REGISTRATION EXPENSES
	 		23	
	ARTICLE IX
	 	RULE 144
	 		24	
	ARTICLE X
	 	MISCELLANEOUS
	 		24	
	10.1
	 	Notice Generally
	 		24	
	10.2
	 	Successors and Assigns
	 		25	
	10.3
	 	Amendments; Waivers
	 		25	
	10.4
	 	Injunctive Relief
	 		25	
	10.5
	 	Attorney’s Fees
	 		26	
	10.6
	 	Termination of Registration Rights; Survival
	 		26	
	10.7
	 	Severability
	 		26	
	10.8
	 	Headings
	 		26	
	10.9
	 	Governing Law; Jurisdiction
	 		26	
	10.10
	 	Counterparts and Facsimile Execution
	 		26	
	10.11
	 	Entire Agreement
	 		27	
	10.12
	 	Further Assurances
	 		27	

1

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as
of December 23, 2008, by and among Loral Space & Communications Inc., a Delaware corporation
(“Loral”) and the Holders (as hereinafter defined) of Registrable Securities (as
hereinafter defined).

ARTICLE I

DEFINITIONS

1.1 Defined Terms.

As used in this Agreement, the following capitalized terms (in their singular and plural
forms, as applicable) have the following meanings:

“Action” has the meaning assigned to such term in Section 7.3 hereof.

“Additional Holders” means the Permitted Assignees of Registrable Securities who, from
time to time, acquire Registrable Securities and own Registrable Securities at the relevant time,
agree to be bound by the terms hereof and become Holders for purposes of this Agreement.

“Adverse Effect” has the meaning assigned to such term in Section 2.5 hereof.

“Affiliate” of a Person means any Person that, directly or indirectly, through one or
more intermediaries, controls or is controlled by, or is under common control with, such other
Person. For purposes of this definition, the term “control” (including the terms
“controlling,” “controlled by” and “under common control with”) means the
possession, direct or indirect, of the power to cause the direction of the management and policies
of a Person, whether through the ownership of voting securities, by contract or otherwise.

“Agreement” has the meaning assigned to such term in the introductory paragraph to
this Agreement, as the same may be amended, supplemented or restated from time to time.

“Auditor Consent” means the consent of the independent public accountants of Loral to
use the report of such independent public accountants relating to Loral’s financial statements and
to refer to such independent public accountants under the heading “Experts” in the Shelf
Registration Statement.

“Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in the Borough of Manhattan, The City of New York are
authorized or obligated by law or executive order to close.

“Commission” means the United States Securities and Exchange Commission and any
successor United States federal agency or governmental authority having similar powers.

“Common Stock” means the common stock, par value $0.01 per share, of Loral, as
authorized from time to time.

“Company Indemnified Person” has the meaning assigned to such term in Section 7.2
hereof.

“Demand Registration” means, as applicable to the situation at hand, a Common Stock
Demand Registration or a Non-Voting Common Stock Demand Registration.

“Demand Request” has the meaning assigned to such term in Section 2.1(a) hereof.

“DTC” means The Depository Trust Company, or any successor thereto.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations of the Commission thereunder.

“Holder” means any (i) Person who owns Registrable Securities at the relevant time and
is a party to this Agreement or (ii) any Additional Holder.

“Indemnified Person” has the meaning assigned to such term in Section 7.1 hereof.

“Indemnitee” has the meaning assigned to such term in Section 7.3 hereof.

“Inspectors” has the meaning assigned to such term in Section 6.1(k) hereof.

“Joining Holder” has the meaning assigned to such term in Section 2.2 hereof.

“Loral” has the meaning assigned to such term in the introductory paragraph to this
Agreement.

“Loss” and “Losses” have the meanings assigned to such terms in Section 7.1
hereof.

“Major Holder” means, with respect to a class or series of Registrable Securities, any
Person or group of Affiliated Persons that holds a minimum of 25% of such class or series of
Registrable Securities as of the date hereof or any Additional Holder that acquires the rights of
such Person or group of Affiliated Persons in accordance with the terms of this Agreement.

“Majority Participating Holders” means, with respect to any registration of
Registrable Securities under this Agreement, the Holder or Holders at the relevant time of at least
a majority of the Registrable Securities of all Holders to be included in the Registration
Statement in question.

“Material Disclosure Event” means, as of any date of determination, any pending or
imminent event relating to Loral or any of its subsidiaries, which, in the good faith determination
of the Board of Directors of Loral after consultation with counsel to Loral (i) requires disclosure
of material, non-public information relating to such event in any Registration Statement or related
Prospectus (including documents incorporated by reference therein) so that such Registration
Statement would not be materially misleading, (ii) is otherwise not required to be publicly
disclosed at that time (e.g., on Forms 10-K, 8-K, or 10-Q) under applicable federal or state
securities laws but for the filing of such Registration Statement or related Prospectus and
(iii) if publicly disclosed at the time of such event, could reasonably be expected to have a
material adverse effect on the business, financial condition or prospects of Loral and its
subsidiaries or would materially adversely affect a pending or proposed acquisition, merger,
recapitalization, consolidation, reorganization, financing or similar transaction, or negotiations
with respect thereto.

“NASD” has the meaning assigned to such term in Section 6.1(n) hereof.

“Non-Voting Common Stock” means the Non-Voting Common Stock, par value $0.01 per
share, of Loral.

“Non-Voting Common Stock Demand Registration” has the meaning assigned to such term in
Section 2.1(b) hereof.

“Participating Holder” means any Holder on whose behalf Registrable Securities are
registered pursuant to Articles II, III or IV hereof.

“Permitted Assignee” means (a) any Affiliate of any Holder who acquires Registrable
Securities from such Holder or its Affiliates; or (b) any other Person who (i) acquires any
Holder’s Registrable Securities in an amount of at least 2% of the total number or amount, as
applicable, of outstanding securities of the applicable class or series of Registrable Securities
calculated as of the date hereof; and (ii) shall have been designated as a Permitted Assignee by
such Holder in a written notice to Loral; provided, however, that the rights of any
Person designated as a Permitted Assignee referred to in the foregoing clause (b) shall be limited
if, and to the extent, provided in such notice.

“Person” means any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust, unincorporated organization, government or
any agency or political subdivision thereof or any other entity.

“Piggyback Registration” has the meaning assigned to such term in Section 3.1 hereof.

“Plan” means the Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the
Bankruptcy Code, dated as of June 3, 2005.

“Prospectus” means the prospectus included in any Registration Statement, all
amendments and supplements to such prospectus and all material incorporated by reference in such
prospectus.

“Records” has the meaning assigned to such term in Section 6.1(k) hereof.

The terms “register,” “registered” and “registration” mean a
registration effected by preparing and filing with the Commission a Registration Statement on an
appropriate form in compliance with the Securities Act, and the declaration or order of the
Commission of the effectiveness of such Registration Statement under the Securities Act.

“Registrable Securities” means (i) shares of Common Stock held by any of the Holders
(or their respective Affiliates and successors or Permitted Assignees) now or at any time in the
future (“Registrable Common Stock”), (ii) shares of Non-Voting Common Stock held by any of
the Holders (or their respective Affiliates and successors or Permitted Assignees) now or at any
time in the future (“Registrable Non-Voting Common Stock”) and (iii) any securities that
may be issued or distributed or be issuable in respect thereof, including by way of stock dividend,
stock split or other similar distribution, payment in kind with respect to any interest payment,
merger, consolidation, exchange offer, recapitalization or reclassification or similar transaction
or exercise or conversion of any of the foregoing; provided, however, that as to
any Registrable Securities, such securities shall cease to constitute “Registrable
Securities”, “Registrable Common Stock” or “Registrable Non-Voting Common Stock”, as the case
may be, for purposes of this Agreement if and when (i) a Registration Statement with respect to the
sale of such securities shall have been declared effective under the Securities Act and such
securities shall have been disposed of pursuant such Registration Statement, (ii) such securities
are distributed pursuant to Rule 144, (iii) such securities are otherwise sold or transferred
(other than in a transaction under clause (i) or (ii) above) by a Person in a transaction in which
such Person’s rights under this Agreement are not assigned, (iv) such securities are no longer
outstanding, or (v) such securities are, in the reasonable determination of the Holder thereof,
otherwise freely-transferable by such Holder without any restriction under the Securities Act at
the time such Holder desires to sell or transfer such securities. For purposes of this Agreement, a
“class” or “series” of Registrable Securities shall mean all securities with the same rights,
preferences, privileges and powers and a “percentage” (or a “majority”) of the Registrable
Securities (or, where applicable, of any other securities) shall be determined (x) based on the
number of shares of such securities, in the case of Registrable Securities which are equity
securities, and (y) based on the principal amount of such securities, in the case of Registrable
Securities which are debt securities.

“Registration Statement” means any registration statement of Loral filed with, or to
be filed with, the Commission under the rules and regulations promulgated under the Securities Act,
including the Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, and all exhibits and all material incorporated by reference in such
registration statement.

“Requesting Holder” has the meaning assigned to such term in Section 2.1(b) hereof.

“Requesting Common Stockholder” has the meaning assigned to such term in Section
2.1(a) hereof.

“Requesting Non-Voting Common Stockholder” has the meaning assigned to such term in
Section 2.1(b) hereof.

“Required Filing Date” has the meaning assigned to such term in Section 2.1(a) hereof.

“Required Period” has the meaning assigned to such term in Section 4.2 hereof.

“Rule 144” means Rule 144 (or any similar provision then in force) promulgated under
the Securities Act.

“Securities Act” means the Securities Act of 1933, as amended, or any successor
statute, and the rules and regulations of the Commission thereunder.

“Shelf Filing Deadline” has the meaning assigned to such term in Section 4.1(a)
hereof.

“Shelf Registration Statement” has the meaning assigned to such term in Section 4.1(a)
hereof.

“Standstill Period” has the meaning assigned to such term in Section 5.1 hereof.

“Suspension Notice” has the meaning assigned to such term in Section 5.2 hereof.

“Suspension Period” has the meaning assigned to such term in Section 5.2 hereof.

“Underwritten Offering” means a registration in which securities of Loral are sold to
an underwriter or underwriters on a firm commitment basis for reoffering to the public.

1.2 General Interpretive Principles. Whenever used in this Agreement, except as
otherwise expressly provided or unless the context otherwise requires, any noun or pronoun shall be
deemed to include the plural as well as the singular and to cover all genders. The name assigned to
this Agreement and the section captions used herein are for convenience of reference only and shall
not be construed to affect the meaning, construction or effect hereof. Unless otherwise specified,
the terms “hereof,” “herein,” “hereunder” and similar terms refer to this Agreement as a whole
(including the exhibits and schedules hereto), and references herein to Sections refer to Sections
of this Agreement. The words “include,” “includes” and “including,” when
used in this Agreement, shall be deemed to be followed by the words “without limitation.”

ARTICLE II

DEMAND REGISTRATION

2.1 Request for Registration.

(a) Common Stock. Subject to the provisions contained in this Section 2.1(a) and in
Sections 5.2 and 5.3 hereof, any Major Holder may, from time to time (each, a “Requesting
Common Stockholder ”), make a request in writing (a “Demand Request”) that Loral effect
the registration under the Securities Act of any specified number of shares of Registrable Common
Stock held by the Requesting Common Stockholders (a “Common Stock Demand Registration”);
provided, however, that Loral shall in no event be required to effect:

(i) subject to subsection (c) below, more than three (3) Common Stock Demand Registrations in
total;

(ii) more than two (2) Common Stock Demand Registrations in any 12-month period;

(iii) subject to Loral’s compliance with its obligations under Article III hereof, any Common
Stock Demand Registration during the period commencing with Loral’s issuance of a notice to the
Holders pursuant to Section 3.1 hereof of a proposed registration of an Underwritten Offering of
equity securities of Loral for its own account (except pursuant to registrations on Form S-4 or any
successor form or on Form S-8 or any successor form relating solely to securities issued pursuant
to any benefit plan), continuing while Loral uses reasonable efforts to pursue such registered
Underwritten Offering, and ending upon the earliest to occur of: (A) forty five (45) days
immediately following Loral’s issuance of the notice of such proposed registered Underwritten
Offering pursuant to Section 3.1 hereof, unless, within such 45-day period, Loral shall have (x)
filed the Registration Statement for such proposed Underwritten Offering, or (y) issued a press
release disclosing such proposed Underwritten Offering pursuant to Rule 135 (or its successor)
promulgated under the Securities Act thereby enabling the Holders to sell their Registrable Common
Stock pursuant to the Shelf Registration Statement; (B) the abandonment, cessation or withdrawal of
such proposed registered Underwritten Offering; or (C) 90 days immediately following the effective
date of the Registration Statement pertaining to such Underwritten Offering; and

(iv) any Common Stock Demand Registration if the Shelf Registration Statement is then
effective, and such Shelf Registration Statement may be utilized by the Requesting Common
Stockholder for the offering and sale of any of its Registrable Common Stock without a requirement
under the Commission’s rules and regulations for a post-effective amendment thereto.

Subject to the provisions contained in this Section 2.1(a) and in Sections 5.2 and 5.3 hereof,
upon receipt of a Demand Request, Loral shall cause to be included in a Registration Statement on
an appropriate form under the Securities Act, filed with the Commission as promptly as practicable
but in any event not later than 60 days after receiving a Demand Request (the “Required Filing
Date”), such shares of Registrable Common Stock as may be requested by such Requesting Common
Stockholders in their Demand Request together with any other Registrable Common Stock as requested
by Joining Holders joining in such request pursuant to Section 2.2 hereof. Loral shall use its
reasonable efforts to cause any such Registration Statement to be declared effective under the
Securities Act as promptly as possible after such filing. If Loral issues a notice of a proposed
Underwritten Offering of equity securities of Loral for its own account pursuant to Section 3.1
hereof and subsequently abandons, ceases or withdraws such offering, Loral shall not issue a notice
of a subsequent proposed registration of an Underwritten Offering of equity securities of Loral for
its own account pursuant to Section 3.1 hereof until the Shelf Registration Statement is first
declared effective.

(b) Non-Voting Common Stock. Subject to the provisions contained in this
Section 2.1(b) and in Sections 5.2 and 5.3 hereof, any Major Holder may, from time to time (each, a
“Requesting Non-Voting Common Stockholder” and collectively with a Requesting Common
Stockholder, a “Requesting Holder”), make a Demand Request that Loral effect the
registration under the Securities Act of any specified number of shares of Registrable Non-Voting
Common Stock held by the Requesting Non-Voting Common Stockholders (a “Non-Voting Common Stock
Demand Registration”); provided, however , that Loral shall in no event be
required to effect:

(i) subject to subsection (c) below, more than three (3) Non-Voting Common Stock Demand
Registrations in total;

(ii) more than two (2) Non-Voting Common Stock Demand Registrations in any 12-month period;

(iii) subject to Loral’s compliance with its obligations under Article III hereof, any
Non-Voting Common Stock Demand Registration during the period commencing with Loral’s issuance of a
notice to the Holders pursuant to Section 3.1 hereof of a proposed registration of an Underwritten
Offering of equity securities of Loral for its own account (except pursuant to registrations on
Form S-4 or any successor form or on Form S-8 or any successor form relating solely to securities
issued pursuant to any benefit plan), continuing while Loral uses reasonable efforts to pursue such
registered Underwritten Offering, and ending upon the earliest to occur of: (A) forty five
(45) days immediately following Loral’s issuance of the notice of such proposed registered
Underwritten Offering pursuant to Section 3.1 hereof, unless, within such 45-day period, Loral
shall have (x) filed the Registration Statement for such proposed Underwritten Offering, or
(y) issued a press release disclosing such proposed Underwritten Offering pursuant to Rule 135 (or
its successor) promulgated under the Securities Act thereby enabling the Holders to sell their
Registrable Non-Voting Common Stock pursuant to the Shelf Registration Statement; (B) the
abandonment, cessation or withdrawal of such proposed registered Underwritten Offering; or
(C) 90 days immediately following the effective date of the Registration Statement pertaining to
such Underwritten Offering; and

(iv) any Non-Voting Common Stock Demand Registration if the Shelf Registration Statement is
then effective, and such Shelf Registration Statement may be utilized by the Requesting Non-Voting
Common Stockholder for the offering and sale of any of its Registrable Non-Voting Common Stock
without a requirement under the Commission’s rules and regulations for a post-effective amendment
thereto.

Subject to the provisions contained in this Section 2.1(b) and in Sections 5.2 and 5.3 hereof,
upon receipt of a Demand Request, Loral shall cause to be included in a Registration Statement on
an appropriate form under the Securities Act, filed with the Commission as promptly as practicable
but in any event not later than the Required Filing Date, such shares of Registrable Non-Voting
Common Stock as may be requested by such Requesting Non-Voting Common Stockholders in their Demand
Request together with any other Registrable Non-Voting Common Stock as requested by Joining Holders
joining in such request pursuant to Section 2.2 hereof. Loral shall use its reasonable efforts to
cause any such Registration Statement to be declared effective under the Securities Act as promptly
as possible after such filing. If Loral issues a notice of a proposed Underwritten Offering of
equity securities of Loral for its own account pursuant to Section 3.1 hereof and subsequently
abandons, ceases or withdraws such offering, Loral shall not issue a notice of a subsequent
proposed registration of an Underwritten Offering of equity securities of Loral for its own account
pursuant to Section 3.1 hereof until the Shelf Registration Statement is first declared effective.

(c) Additional Demand Registration Rights. Notwithstanding and without prejudice to
the provisions of subsections (a)(i) and (b)(i) above, in addition to the Demand Requests permitted
under such subsections, any Major Holder may make at any time and Loral shall effect an aggregate
of two (2), but not more than two (2), additional Demand Requests for any of a Common Stock Demand
Registration or a Non-Voting Common Stock Demand Registration.

2.2 Joining Holders. If at any time Loral proposes to register Registrable Securities
for the account of the Requesting Holders pursuant to Section 2.1 hereof, then (i) Loral shall
give, or cause to be given, written notice of such proposed filing to all the Holders of such class
or series of Registrable Securities as soon as practicable (but in no event less than 30 days
before the anticipated filing date). Upon the written request of any Holder, received by Loral no
later than the 10th Business Day after receipt by such Holder of the notice sent by Loral (each
such Holder, a “Joining Holder”), to register, on the same terms and conditions as the
securities otherwise being sold pursuant to such Demand Registration, any of its Registrable
Securities of the same class or series as the securities otherwise being sold pursuant to such
Demand Registration, Loral shall use its reasonable efforts to cause such Registrable Securities to
be included in the Registration Statement proposed to be filed by Loral on the same terms and
conditions as any securities of the same class or series included therein. All such requests by
Joining Holders shall specify the aggregate amount and class or series of Registrable Securities to
be registered and the intended method of distribution of the same.

2.3 Effective Registration. A registration shall not count as a Demand Registration
under this Agreement (i) unless the related Registration Statement has been declared effective
under the Securities Act and has remained effective until such time as all of such Registrable
Securities covered thereby have been disposed of in accordance with the intended methods of
disposition by the Participating Holders (but in no event for a period of more than 180 days after
such Registration Statement becomes effective not including any Suspension Period) and if, after it
has become effective, an offering of Registrable Securities pursuant to a Registration Statement is
not terminated by any stop order, injunction, or other order of the Commission or other
governmental agency or court, or (ii) if pursuant to Section 2.5 hereof, the Requesting Holders and
Joining Holders are cut back to fewer than 75% of the Registrable Securities requested to be
registered and at the time of the request there was not in effect the Shelf Registration Statement.

2.4 Underwritten Offerings. If the Majority Participating Holders who are included in
any offering pursuant to a Demand Registration so elect, such offering shall be in the form of an
Underwritten Offering. With respect to any such Underwritten Offering pursuant to a Demand
Registration, Loral shall select an investment banking firm of national standing to be the managing
underwriter for the offering, which firm shall be reasonably acceptable to the Majority
Participating Holders.

2.5 Priority on Demand Registrations. With respect to any Underwritten Offering of
Registrable Securities pursuant to a Demand Registration, no securities to be sold for the account
of any Person (including Loral) other than the Requesting Holders and Joining Holders shall be
included in a Demand Registration unless the managing underwriter advises the Requesting Holders in
writing (or, in the case of a Demand Registration not being underwritten, the Majority
Participating Holders determine) that the inclusion of such securities shall not adversely affect
the price or success of the offering (an “Adverse Effect”) and the Majority Holder making
such Demand Request reasonably agrees. Furthermore, in the event that the managing underwriter
advises the Requesting Holders in writing (or the Majority Participating Holders determine) that
the amount of Registrable Securities proposed to be included in such Demand Registration by
Requesting Holders and Joining Holders is sufficiently large (even after exclusion of all
securities of any other Person pursuant to the immediately preceding sentence) to cause an Adverse
Effect, the number of Registrable Securities to be included in such Demand Registration shall be
allocated among all such Requesting Holders and Joining Holders pro rata for each Holder based on
the percentage derived by dividing (i) the number of Registrable Securities that each such Holder
requested to be included in such Demand Registration by (ii) the aggregate number of Registrable
Securities that all Requesting Holders and Joining Holders requested to be included in such Demand
Registration; provided, however, that if, as a result of such proration, any
Requesting Holder or Joining Holder shall not be entitled to include in a registration all
Registrable Securities of the class or series that such Holder had requested to be included, such
Holder may elect to withdraw its request to include such Registrable Securities in such
registration or may reduce the number requested to be included; provided, however,
that (a) such request must be made in writing prior to the earlier of the execution of the
underwriting agreement, if any, or the execution of the custody agreement with respect to such
registration, if any, and (b) such withdrawal or reduction shall be irrevocable.

2.6 Withdrawal and Cancellation of Registration. Any Participating Holder may withdraw
its Registrable Securities from a Demand Registration at any time and any Majority Participating
Holders shall have the right to cancel a proposed Demand Registration of Registrable Securities
pursuant to this Article II in accordance with Section 3.3 hereof when the request for cancellation
is based upon material adverse information relating to Loral that is different from the information
known to the Participating Holders at the time of the Demand Request. Upon such cancellation, Loral
shall cease all efforts to secure registration and such Demand Registration shall not be counted as
a Demand Registration under this Agreement for any purpose; provided, however that
notwithstanding anything to the contrary in this Agreement, Loral shall be responsible for the
expenses of the Participating Holders incurred in connection with such cancelled registration
through the date that is seven days after the time such information became known to the
Participating Holders, to the extent such expenses are as described in clauses (i) through (x) of
the first sentence of Article VIII hereof.

2.7 Registration Statement Form. Registrations under this Article II shall be on such
appropriate registration form of the Commission then applicable to Loral (i) as shall be selected
by Loral and as shall be reasonably acceptable to the Holders of a majority of each class or series
of Registrable Securities requesting participation in the Demand Registration and (ii) as shall
permit the disposition of the Registrable Securities in accordance with the intended method or
methods of disposition specified in the applicable Holders’ requests for such registration.
Notwithstanding the foregoing, if, pursuant to a Demand Registration, (x) Loral proposes to effect
registration by filing a registration statement on Form S-3 (or any successor or similar short-form
registration statement), (y) such registration is in connection with an Underwritten Offering and
(z) the managing underwriter or underwriters shall advise Loral in writing that, in its or their
opinion, the use of another form of registration statement (or the inclusion, rather than the
incorporation by reference, of information in the Prospectus related to a registration statement on
Form S-3 (or other short-form registration statement)) is of material importance to the success of
such proposed offering, then such registration shall be effected on such other form (or such
information shall be so included in such Prospectus).

ARTICLE III

PIGGYBACK REGISTRATIONS

3.1 Holder Piggyback Registration. If Loral proposes to file a Registration Statement
with respect to an offering of its securities (except pursuant to registrations on Form S-4 or any
successor form or on Form S-8 or any successor form relating solely to securities issued pursuant
to any benefit plan) on a form that would permit registration of Registrable Securities for sale to
the public under the Securities Act, then Loral shall give written notice of such proposed filing
to the Holders not less than 21 days before the anticipated filing date, describing in reasonable
detail the proposed registration (including the number and class or series of securities proposed
to be registered, the proposed date of filing of such Registration Statement, any proposed means of
distribution of such securities, any proposed managing underwriter of such securities and a good
faith estimate by Loral of the proposed maximum offering price of such securities as such price is
proposed to appear on the facing page of such Registration Statement), and offering such Holders
the opportunity to register such number of Registrable Securities of the same class as those being
registered by the Company as each such Holder may request in writing (each a “Piggyback
Registration”), provided that the Common Stock and Non-Voting Common Stock shall be deemed to
be of the same class for purposes of this Article III. Upon the written request of any Holder,
received by Loral no later than ten (10) Business Days after receipt by such Holder of the notice
sent by Loral, to register, on the same terms and conditions as the securities otherwise being sold
pursuant to such registration, any of such Holder’s Registrable Securities of the same class as
those being registered (which request shall state the intended method of disposition thereof if the
securities otherwise being sold are being sold by more than one method of disposition), Loral shall
use its reasonable efforts to cause such Registrable Securities as to which registration shall have
been so requested to be included in the Registration Statement proposed to be filed by Loral on the
same terms and conditions as the securities otherwise being sold pursuant to such registration;
provided, however, that, notwithstanding the foregoing, Loral may at any time, in
its sole discretion, without the consent of any other Holder, delay or abandon the proposed
offering in which any Holder had requested to participate pursuant to this Section 3.1 or cease the
filing (or obtaining or maintaining the effectiveness) of or withdraw the related Registration
Statement or other governmental approvals, registrations or qualifications. In such event, Loral
shall so notify each Holder that had notified Loral in accordance with this Section 3.1 of its
intention to participate in such offering and Loral shall incur no liability for its failure to
complete any such offering.

3.2 Priority on Piggyback Registrations.

(a) If the managing underwriter or underwriters for the related Piggyback Registration
Underwritten Offering (or in the case of a Piggyback Registration not being underwritten, Loral, in
good faith) advises the Holders in writing that the inclusion of such Registrable Securities would
cause an Adverse Effect, then Loral shall be obligated to include in such Registration Statement
only that number of Registrable Securities which, in the judgment of the managing underwriter (or
Loral in good faith, as applicable), would not have an Adverse Effect; provided,
however, that no such reduction shall reduce the aggregate amount of Registrable Securities
included in such Registration Statement for the benefit of the requesting Holders to less than:
(i) any time that the Shelf Registration Statement is not effective or the Holders may not
otherwise utilize the Shelf Registration Statement for the offering and sale of their Registrable
Common Stock or Registrable Non-Voting Common Stock, all of the shares of Registrable Common Stock
or Registrable Non-Voting Common Stock, respectively, requested by the Holders to be included in
such Registration Statement (but up to the maximum amount of the securities to be sold in the
related Underwritten Offering), and (ii) any time that the Shelf Registration Statement is
effective and the Holders may utilize the Shelf Registration Statement for the offering and sale of
their Registrable Common Stock or Registrable Non-Voting Common Stock, fifty percent (50%) of the
total number of securities that are included in each such Registration Statement thereafter. Any
partial reduction in the number of Registrable Securities to be included in a Registration
Statement pursuant to the immediately preceding sentence shall be affected by allocating the number
of Registrable Securities to be included in such Registration Statement, among all the Holders
requesting to be included in such Registration Statement pursuant to Section 3.1 hereof, pro rata
based for each Holder on the percentage derived by dividing (i) the number of Registrable
Securities that each such Holder requested to be included in such Registration Statement by
(ii) the aggregate number of Registrable Securities that all Holders requested to be included in
such Registration Statement; provided, however, that if, as a result of such
proration, any Holder requesting to be included in such Registration Statement pursuant to
Section 3.1 hereof shall not be entitled to include in a registration all Registrable Securities of
the class or series that such Holder had requested to be included, such Holder may elect to
withdraw its request to include such Registrable Securities in such registration or may reduce the
number requested to be included in accordance with Section 3.3 hereof.

(b) In the case of Common Stock only, subject to Loral’s compliance with its obligations under
this Article III, if prior to the filing or effectiveness of the Shelf Registration Statement,
Loral initiates a proposal to register an Underwritten Offering of securities for its own account
pursuant to this Article III and the Holders shall be afforded the right (whether or not exercised
by the Holders) to include Registrable Securities in such Underwritten Offering in accordance with
and subject to the provisions of this Article III, then the proposed registration for the account
of Loral pursuant to this Article III shall be given priority in all respects.

3.3 Withdrawals. Each Holder shall have the right to withdraw its request for
inclusion of all or any of its Registrable Securities in any Registration Statement pursuant to
this Article III by giving written notice to Loral of its request to withdraw; provided,
however, that (i) such request must be made in writing prior to the earlier of the
execution of the underwriting agreement or the execution of the custody agreement with respect to
such registration and (ii) such withdrawal shall be irrevocable.

3.4 Underwritten Offerings.

(a) In connection with the exercise of any registration rights granted to Holders pursuant to
this Article III, if the registration is to be effected by means of an Underwritten Offering, Loral
may condition participation in such registration by any such Holder upon inclusion of the
Registrable Securities being so registered in such underwriting and such Holder’s entering into an
underwriting agreement pursuant to Section 6.2(d) hereof.

(b) With respect to any offering of Registrable Securities pursuant to this Article III in the
form of an Underwritten Offering, Loral shall select an investment banking firm of national
standing to be the managing underwriter for the offering.

ARTICLE IV

SHELF REGISTRATION

4.1 Shelf Registration Filing.

(a) Subject to the provisions contained in this Section 4.1(a) and in Sections 3.2(b), 5.2 and
5.3 hereof, on or prior to June 1, 2009 (the “Shelf Filing Deadline”), Loral shall file
with the Commission a Registration Statement (the “Shelf Registration Statement”) relating
to the offer and sale of all of the shares of Registrable Common Stock and Registrable Non-Voting
Common Stock held by the Holders to the public from time to time, on a delayed or continuous basis;
provided, however, if Loral is unable to obtain the Auditor Consent by the Shelf
Filing Deadline, such Shelf Filing Deadline shall be extended until two (2) days after receipt by
Loral of the Auditor Consent. Loral shall use its reasonable best efforts to obtain the Auditor
Consent as promptly as practicable after May 11, 2009; provided further,
however, that any shares of Registrable Common Stock shall not be required to be covered by
the Shelf Registration Statement if and only for so long as such shares are covered by a shelf
registration statement previously filed by Loral that is effective as of the date of filing of the
Shelf Registration Statement and thereafter remains effective under the Securities Act. Subject to
the provisions contained in this Section 4.1(a) and in Sections 3.2(b), 5.2 and 5.3 hereof, Loral
shall use its reasonable efforts to cause the Shelf Registration Statement to be declared effective
under the Securities Act as soon as practicable after the filing thereof with the Commission. Any
registration effected pursuant this Section 4.1(a) shall not be deemed to constitute a Loral Common
Stock Demand Registration or a Loral Non-Voting Common Stock Demand Registration. The Shelf
Registration Statement shall specify the intended method of distribution of the subject Registrable
Common Stock and Registrable Non-Voting Common Stock substantially in the form of Exhibit A
attached hereto. Loral shall file the Shelf Registration Statement on Form S-3 or, if Loral or the
offering of the Registrable Common Stock or Registrable Non-Voting Common Stock does not satisfy
the requirements for use of such form, such other form as may be appropriate; provided,
however, that if the Shelf Registration Statement is not filed on Form S-3, Loral shall,
promptly upon meeting the requirements for use of such form, file an appropriate amendment to the
Shelf Registration Statement to convert it to Form S-3. Notwithstanding the foregoing, subject to
Loral’s compliance with its obligations under Article III hereof, Loral shall not be obligated to
take any action to effect the Shelf Registration Statement or any amendment thereto during the
following periods commencing:

(i) with Loral’s issuance of a notice to the Holders pursuant to Section 3.1 hereof of a
proposed registration of an Underwritten Offering of equity securities of Loral for its own account
(except pursuant to registrations on Form S-4 or any successor form or on Form S-8 or any successor
form relating solely to securities issued pursuant to any benefit plan), continuing while Loral
uses reasonable efforts to pursue such registered Underwritten Offering, and ending upon the
earliest to occur of: (A) forty five (45) days immediately following Loral’s issuance of the notice
of such proposed registered Underwritten Offering pursuant to Section 3.1 hereof, unless, within
such 45-day period, Loral shall have (x) filed the Registration Statement for such proposed
Underwritten Offering, or (y) issued a press release disclosing such proposed Underwritten Offering
pursuant to Rule 135 (or its successor) promulgated under the Securities Act thereby enabling the
Holders to sell their Registrable Common Stock and Registrable Non-Voting Common Stock pursuant to
the Shelf Registration Statement; (B) the abandonment, cessation or withdrawal of such proposed
registered Underwritten Offering; or (C) 90 days immediately following the effective date of the
Registration Statement pertaining to such Underwritten Offering; and

(ii) on the effective date of a Registration Statement for an Underwritten Offering of equity
securities of Loral for its own account (except pursuant to registrations on Form S-4 or any
successor form or on Form S-8 or any successor form relating solely to securities issued pursuant
to any benefit plan) and ending 90 days immediately following the effective date of the
Registration Statement pertaining to such Underwritten Offering.

If Loral issues a notice of a proposed Underwritten Offering of equity securities of Loral for
its own account pursuant to Section 3.1 hereof and subsequently abandons, ceases or withdraws such
offering, Loral shall not issue a notice of a subsequent proposed registration of an Underwritten
Offering of equity securities of Loral for its own account pursuant to Section 3.1 hereof until the
Shelf Registration Statement is first declared effective.

4.2 Required Period and Shelf Registration Procedures. Loral shall (i) cause the Shelf
Registration Statement to include a resale Prospectus intended to permit each Holder to sell, at
such Holder’s election, all or part of the applicable class or series of Registrable Securities
held by such Holder without restriction, (ii) use its reasonable efforts to prepare and file with
the Commission such supplements, amendments and post-effective amendments to such Shelf
Registration Statement as may be necessary to keep such Shelf Registration Statement continuously
effective (subject to Section 3.2(b) hereof and to any Suspension Period(s) referred to below) for
so long as the securities registered thereunder constitute Registrable Securities (the
“Required Period”), and (iii) use its reasonable efforts to cause the resale Prospectus to
be supplemented by any required Prospectus supplement (subject to Section 3.2(b) hereof and to any
Suspension Period(s) referred to below) and permit such Prospectus to be usable by the Holders
during the Required Period.

ARTICLE V

STANDSTILL AND SUSPENSION PERIODS

5.1 Loral Standstill Period. In the event of an Underwritten Offering of Registrable
Securities pursuant to Section 2.1 hereof, Loral agrees not to, without the prior written consent
of the managing underwriter and the Majority Participating Holders, offer, pledge, sell, contract
to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any securities that are the same as, or similar to, such Registrable
Securities, or any securities convertible into, or exchangeable or exercisable for, any securities
of Loral that are the same as, or similar to, such Registrable Securities (except pursuant to
registrations on Form S-4 or any successor form, or otherwise in connection with the acquisition of
a business or assets of a business, a merger, or an exchange offer for the securities of the issuer
or another entity, or pursuant to a Loral dividend reinvestment plan, or for issuances of
securities pursuant to the conversion, exchange or exercise of then-outstanding convertible or
exchangeable securities, options, rights or warrants, or pursuant to registrations on Form S-8 or
any successor form or otherwise relating solely to securities offered pursuant to any benefit
plan), during the period commencing 14 days prior to the effective date of the Registration
Statement relating to such Registrable Securities (to the extent timely notified in writing by the
Majority Participating Holders or the managing underwriter of such distribution) and ending on the
90th day after such effective date (the “Standstill Period”).

5.2 Suspension Period. Loral may, by notice in writing to each Holder, postpone the
filing or effectiveness of the Shelf Registration Statement or any other registration requested
pursuant to this Agreement, or otherwise suspend the Demand Registration rights of the Holders
and/or require the Holders to suspend use of any resale Prospectus included in the Shelf
Registration Statement for any period of time reasonably determined by Loral if there shall occur a
Material Disclosure Event (such period, a “Suspension Period”). Notwithstanding anything
herein to the contrary, Loral shall not be entitled to more than an aggregate of four
(4) Suspension Periods each, with respect to all Registrable Securities issued by either of them,
as applicable, which Suspension Periods shall have durations of not more than thirty (30) days each
(but may at Loral’s reasonable determination run consecutively for a given Material Disclosure
Event), during any consecutive 12 month period, and which Suspension Periods shall not exceed more
than ninety (90) days in the aggregate in any consecutive 12-month period; provided,
however, that if Loral deems in good faith that it is necessary to file a post-effective
amendment to the Shelf Registration Statement in order to comply with Section 4 hereof, then such
period of time from the date of filing such post-effective amendment until the date on which the
applicable Shelf Registration Statement is declared effective under the Securities Act shall not be
treated as a Suspension Period and Loral shall use its reasonable efforts to cause such
post-effective amendment to be declared effective as promptly as possible. Each Holder agrees that,
upon receipt of notice from Loral of the occurrence of a Material Disclosure Event (a
“Suspension Notice”), such Holder shall forthwith discontinue any disposition of
Registrable Securities pursuant to the Shelf Registration Statement or any public sale or
distribution, including pursuant to Rule 144, until the earlier of (i) the expiration of the
Suspension Period and (ii) such Holder’s receipt of a notice from Loral to the effect that such
suspension has terminated. Any Suspension Notice shall be accompanied by a certificate of the Chief
Executive Officer, Chief Financial Officer, President or any Vice President of Loral confirming the
existence of the Material Disclosure Event. If so directed by Loral, such Holder shall deliver to
Loral (at Loral’s expense) all copies, other than permanent file copies, then in such Holder’s
possession, of the most recent Prospectus covering such Registrable Securities at the time of
receipt of such Suspension Notice. Loral covenants and agrees that it shall not deliver a
Suspension Notice with respect to a Suspension Period unless Loral employees, officers and
directors are also prohibited by Loral for the duration of such Suspension Period from effecting
any public sales of securities of Loral beneficially owned by them. In the event of a Suspension
Notice, Loral shall, promptly after such time as the related Material Disclosure Event no longer
exists, provide notice to all Holders that the Suspension Period has ended, and take any and all
actions necessary or desirable to give effect to any Holders’ rights under this Agreement that may
have been affected by such notice, including the Holders’ Demand Registration rights and rights
with respect to the Shelf Registration Statement.

5.3 Holder Standstill Period. Each Holder of Registrable Securities (whether or not
such Registrable Securities are covered by the Shelf Registration Statement or by a Registration
Statement filed pursuant to Section 2.1 or 3.1 hereof) agrees to enter into a customary lock-up
agreement with the managing underwriter for any Underwritten Offering of Loral’s securities for its
own account with respect to the same class or series of securities being registered pursuant to
such Registration Statement, containing terms reasonably acceptable to such managing underwriter,
covering the period commencing 15 days prior to the effective date of any Registration Statement
relating to such securities of Loral and ending on the 90th day after such effective date (or such
shorter period as shall have been agreed to by Loral’s executive officers and directors in their
respective lock-up agreements); provided, however, that the obligations of each
Holder under this Section 5.3 shall apply only if: (i) such Holder shall be afforded the right
(whether or not exercised by the Holder) to include Registrable Securities in such Underwritten
Offering in accordance with and subject to the provisions of Article III hereof; (ii) each of
Loral’s executive officers and directors enter into lock-up agreements with such managing
underwriter, which agreements shall not contain terms more favorable to such executive officers or
directors than those contained in the lock-up agreement entered into by such Holder; and (iii) the
aggregate restriction periods in such Holder’s lock-up agreements entered into pursuant to this
Section 5.3 shall not exceed an aggregate of 180 days during any 365-day period.

ARTICLE VI

REGISTRATION PROCEDURES

6.1 Loral Obligations. Whenever Loral is required pursuant to this Agreement to
register Registrable Securities, it shall (it being understood and agreed that except as otherwise
expressly set forth in this Article VI, if any other provision of this Agreement is more favorable
to the Holders than the provisions of this Article VI, such other provision shall apply):

(a) provide the Participating Holders and their respective counsel with a reasonable
opportunity to review, and comment on, any Registration Statement to be prepared and filed pursuant
to this Agreement prior to the filing thereof with the Commission, and make all changes thereto as
any Participating Holder may request in writing to the extent such changes are required, in the
reasonable judgment of Loral’s counsel, by the Securities Act and, except in the case of a
registration under Article III, not file any Registration Statement or Prospectus or amendments or
supplements thereto to which the holders of a majority of the class or series of Registrable
Securities covered by the same or the underwriter or underwriters, if any, shall reasonably object;

(b) cause any such Registration Statement and the related Prospectus and any amendment or
supplement thereto, as of the effective date of such Registration Statement, amendment or
supplement, (i) to comply in all material respects with the applicable requirements of the
Securities Act and the rules and regulations of the Commission promulgated thereunder and (ii) not
to contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, (in the case of the Prospectus and any
preliminary Prospectus in light of the circumstances under which they were made) not misleading,
or, if for any other reason it shall be necessary to amend or supplement such Registration
Statement or Prospectus in order to comply with the Securities Act and, in either case as promptly
as reasonably practicable thereafter, prepare and file with the Commission an amendment or
supplement to such Registration Statement or Prospectus which will correct such statement or
omission or effect such compliance;

(c) furnish, at its expense, to the Participating Holders such number of conformed copies of
such Registration Statement and of each such amendment thereto (in each case including all exhibits
thereto, except that Loral shall not be obligated to furnish to any such Participating Holder more
than two (2) copies of such exhibits), such number of copies of the Prospectus included in such
Registration Statement (including each preliminary Prospectus and each supplement thereto), and
such number of the documents, if any, incorporated by reference in such Registration Statement or
Prospectus, as the Participating Holders reasonably may request;

(d) use its reasonable efforts to register or qualify the Registrable Securities covered by
such Registration Statement under such securities or “blue sky” laws of the states of the United
States as the Participating Holders reasonably shall request, to keep such registration or
qualification in effect for so long as such Registration Statement remains in effect, and to do any
and all other acts and things that may be necessary or advisable to enable the Participating
Holders to consummate the disposition in such jurisdictions of the Registrable Securities covered
by such Registration Statement, except that Loral shall not, for any such purpose, be required to
qualify generally to do business as a foreign corporation in any jurisdiction in which it is not
obligated to be so qualified, or to subject itself to material taxation in any such jurisdiction,
or to consent to general service of process in any such jurisdiction; and use its reasonable
efforts to obtain all other approvals, consents, exemptions or authorizations from such securities
regulatory authorities or governmental agencies as may be necessary to enable such Participating
Holders to consummate the disposition of such Registrable Securities;

(e) promptly notify the Participating Holders, at any time when a Prospectus or Prospectus
supplement relating thereto is required to be delivered under the Securities Act, upon discovery
that, or upon the occurrence of any event as a result of which, the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, which untrue
statement or omission requires amendment of the Registration Statement or supplementing of the
Prospectus, and, as promptly as practicable (subject to Sections 3.2 and 5.2 hereof), prepare and
furnish, at its expense, to the Participating Holders a reasonable number of copies of a supplement
to such Prospectus as may be necessary so that, as thereafter delivered to the purchasers of such
Registrable Securities, such Prospectus shall not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided, however , that with respect to Registrable Securities registered pursuant
to such Registration Statement, each Holder agrees that it shall not enter into any transaction for
the sale of any Registrable Securities pursuant to such Registration Statement during the time
after the furnishing of Loral’s notice that Loral is preparing a supplement to or an amendment of
such Prospectus or Registration Statement and until the filing and effectiveness thereof;

(f) use its reasonable efforts to comply with all applicable rules and regulations of the
Commission, and make available to holders of its securities, as soon as practicable, an earnings
statement covering the period of at least 12 months, but not more than 18 months, beginning with
the first month of the first fiscal quarter after the effective date of such Registration
Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder;

(g) provide, and cause to be maintained, a transfer agent and registrar for the Registrable
Securities covered by such Registration Statement (which transfer agent and registrar shall, at
Loral’s option, be Loral’s existing transfer agent and registrar) from and after a date not later
than the effective date of such Registration Statement;

(h) notify the Participating Holders and the managing underwriter, if any, promptly, and (if
requested by any such Person) confirm such notice in writing, (i) when a Registration Statement,
Prospectus, Prospectus supplement or post-effective amendment related to such Registration
Statement has been filed, and, with respect to such Registration Statement or any post-effective
amendment thereto, when the same has become effective, (ii) of any request by the Commission or any
other federal or state governmental authority for amendments or supplements to such Registration
Statement or related Prospectus, (iii) of the issuance by the Commission or any other federal or
state governmental authority of any stop order suspending the effectiveness of such Registration
Statement or the initiation of any proceedings for that purpose and (iv) of the receipt by Loral of
any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose;

(i) use its reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of such Registration Statement, or the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale in any
jurisdiction, as soon as practicable;

(j) in the event of an Underwritten Offering of Registrable Securities pursuant to Section 2.1
hereof, enter into customary agreements (including underwriting agreements in customary form, which
may include, in the case of an Underwritten Offering on a firm commitment basis, “lock-up”
obligations substantially similar to Section 5.1 hereof) and take such other actions (including
using its reasonable efforts to make such road show presentations and otherwise engaging in such
reasonable marketing support in connection with any such Underwritten Offering, including the
obligation to make its executive officers available for such purpose if so requested by the
managing underwriter for such offering) as are reasonably requested by the managing underwriter in
order to expedite or facilitate the sale of such Registrable Securities;

(k) make available for inspection by each Participating Holder, any underwriter participating
in any disposition pursuant to such registration, and any attorney, accountant or other agent
retained by such Participating Holder or any such underwriter (collectively, the
“Inspectors”), all financial and other records, pertinent corporate documents and
properties of Loral and any of its subsidiaries (collectively, the “Records”) as shall be
reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
officers, directors and employees of Loral to supply all information reasonably requested by any
such Inspector in connection with such registration, provided, however, that (i) in
connection with any such inspection, any such Inspectors shall cooperate to the extent reasonably
practicable to minimize any disruption to the operation by Loral of its business and shall comply
with all Loral site safety rules, (ii) Records and information obtained hereunder shall be used by
such Inspectors only to exercise their due diligence responsibility and (iii) Records or
information furnished or made available hereunder shall be kept confidential and shall not be
disclosed by such Participating Holder, underwriter or Inspectors unless (A) the disclosing party
advises the other party that the disclosure of such Records or information is necessary to avoid or
correct a misstatement or omission in a Registration Statement or is otherwise required by law,
(B) the release of such Records or information is ordered pursuant to a subpoena or other order
from a court or governmental authority of competent jurisdiction (provided,
however, that such Person shall use its reasonable efforts to provide Loral with prior
written notice of such requirement to afford Loral with an opportunity to seek a protective order
or other appropriate remedy in response) or (C) such Records or information otherwise become
generally available to the public other than through disclosure by such Participating Holder,
underwriter or Inspector in breach hereof or by any Person in breach of any other confidentiality
arrangement;

(l) in connection with any registration of an Underwritten Offering of Registrable Securities
hereunder, use all reasonable efforts to furnish to each Participating Holder and to the managing
underwriter, if any, a signed counterpart, addressed to such Participating Holder and the managing
underwriter, if any, of (i) an opinion or opinions of counsel to Loral and (ii) a comfort letter or
comfort letters from Loral’s independent public accountants pursuant to Statement on Auditing
Standards No. 72 (or any successor thereto), each in customary form and covering such matters of
the type customarily covered by opinions or comfort letters, as the case may be, as each such
Participating Holder and the managing underwriter, if any, reasonably requests;

(m) in connection with any registration of an Underwritten Offering of Registrable Securities
hereunder, provide officers’ certificates and other customary closing documents;

(n) reasonably cooperate with each seller of Registrable Securities and any underwriter in the
disposition of such Registrable Securities and with underwriters’ counsel, if any, in connection
with any filings required to be made with the National Association of Securities Dealers, Inc. (the
“NASD”);

(o) use its reasonable efforts to cause all such Registrable Securities to be listed on each
securities exchange on which securities of the same class or series issued by Loral are then
listed;

(p) cooperate with the Participating Holders and the managing underwriter, underwriters or
agent, if any, to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends;

(q) use its reasonable efforts to cause the Registrable Securities covered by the applicable
Registration Statement to be registered with or approved by such other governmental agencies or
authorities as may be necessary to enable the seller or sellers thereof or the underwriter or
underwriters, if any, to consummate the disposition of such Registrable Securities; and

(r) not later than the effective date of the applicable Registration Statement, provide a
CUSIP number for all Registrable Securities and provide the applicable transfer agent with printed
certificates for the Registrable Securities which certificates shall be in a form eligible for
deposit with DTC (provided that such Registrable Securities are so eligible for deposit with DTC
and, if not so eligible, Loral shall use reasonable efforts to cause such Registrable Securities to
be so eligible for deposit with DTC).

6.2 Holder Obligations. Each Holder agrees:

(a)  that it shall furnish to Loral such information regarding such Holder and the plan and
method of distribution of Registrable Securities intended by such Holder (i) as Loral may, from
time to time, reasonably request in writing and (ii) as shall be required by law or by the
Commission in connection therewith;

(b) that information obtained by it or by its Inspectors shall be deemed confidential and
shall not be used by it as the basis for any market transactions in the securities of Loral or its
Affiliates unless and until such information is made generally available to the public;

(c) to use its reasonable efforts, prior to making any disclosure allowed by Section
6.1(k)(iii)(A) or (B) hereof, to inform Loral that such disclosure is necessary to avoid or correct
a misstatement or omission in the Registration Statement or ordered pursuant to a subpoena or other
order from a court or governmental authority of competent jurisdiction or otherwise required by
law; and

(d) in the case of an Underwritten Offering of Registrable Securities pursuant to this
Agreement, if requested by the managing underwriter, to enter into an underwriting agreement with
the underwriters for such offering containing such representations and warranties by each Holder
and such other terms and provisions as are customarily contained in such underwriting agreements,
including customary indemnity and contribution provisions and “lock-up” obligations substantially
similar to Section 5.3 hereof.

6.3 Subsequent Registration Rights. Loral is not currently a party to, any agreement
which is, or could be, inconsistent with the rights granted to the holders of Registrable
Securities by this Agreement. For as long as any Major Holder of any class or series of Registrable
Securities holds at least 50% of such class or series of Registrable Securities issued to such
Major Holder on the effective date of the Plan, Loral shall not grant any Person any registration
rights other than registration rights that are no more favorable than those being granted hereunder
and that shall not be in conflict with, inconsistent with, or otherwise adverse to or lessen the
rights of the Holders hereunder in any respect, including, without limitation, priority of
registration or ability to transfer or otherwise dispose of Registrable Securities.

ARTICLE VII

INDEMNIFICATION

7.1 Indemnification by Loral. In the event of any registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, Loral shall indemnify and hold
harmless to the full extent permitted by law (i) each Holder, such Holder’s Affiliates and their
respective officers, directors, managers, partners, stockholders, employees, advisors, agents and
other representatives of the foregoing, and each of their respective successors and assigns, and
each Person who controls any of the foregoing, within the meaning of the Securities Act and the
Exchange Act, and (ii) any selling agent selected by the Holders or their affiliates with respect
to such Registrable Securities (each such Person being sometimes referred to as an “Indemnified
Person”), against any and all losses, claims, damages, liabilities (or actions or proceedings
in respect thereof, whether or not such Indemnified Person is a party thereto) and expenses
(including reasonable costs of investigations and legal expenses), joint or several (each a
“Loss” and collectively “Losses”), to which such Indemnified Person may become
subject, to the extent that such Losses (or related actions or proceedings) arise out of or are
based upon (A) any untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement in which such Registrable Securities were included for registration
under the Securities Act, including any preliminary or summary Prospectus or any final Prospectus
included in such Registration Statement (or any amendment or supplement to such Registration
Statement or Prospectus) or any document incorporated by reference therein or (B) any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein, (in the case of the Prospectus and any preliminary Prospectus in light
of the circumstances under which they were made) not misleading; and Loral agrees to reimburse such
Indemnified Person for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such action or claim as such expenses are incurred;
provided, however, that Loral shall have no obligation to provide any
indemnification or reimbursement hereunder (i) to the extent that any such Losses (or actions or
proceedings in respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in such Registration Statement, preliminary
Prospectus, final Prospectus, amendment or supplement, in reliance upon and in conformity with
written information furnished to Loral by the Holder, or on the Holder’s behalf, specifically for
inclusion, respectively, in such Registration Statement, preliminary Prospectus, final Prospectus,
amendment or supplement, or (ii) in the case of a sale directly by a Holder of Registrable
Securities (including a sale of such Registrable Securities through any underwriter retained by
such Holder engaging in a distribution solely on behalf of such Holder), to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission was contained in a
preliminary Prospectus and corrected in a final, amended or supplemented Prospectus provided to
such Holder prior to the confirmation of the sale of the Registrable Securities to the Person
asserting any such Loss, and such Holder failed to deliver a copy of the final, amended or
supplemented Prospectus at or prior to such confirmation of sale in any case in which such delivery
is required by the Securities Act, or (iii) in the case of a sale directly by a Holder of
Registrable Securities (including a sale of such Registrable Securities through any underwriter
retained by such Holder engaging in a distribution solely on behalf of such Holder), to the extent
that such untrue statement or alleged untrue statement or omission or alleged omission was
contained in a final Prospectus but was corrected in an amended or supplemented final Prospectus
provided to such Holder prior to the confirmation of the sale of the Registrable Securities to the
Person asserting any such Loss, and such Holder failed to deliver a copy of the amended or
supplemented final Prospectus at or prior to such confirmation of sale in any case in which such
delivery is required by the Securities Act. The indemnity provided in this Section 7.1 shall remain
in full force and effect regardless of any investigation made by or on behalf of such Holder or any
Indemnified Person and shall survive the transfer or disposal of the Registrable Securities by the
Holder or any such other Persons. Loral will also indemnify, if applicable and if requested,
underwriters, selling brokers, dealer managers and similar securities industry professionals
participating in any distribution pursuant hereto, their officers and directors and each Person who
controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Indemnified Persons. This
indemnity shall be in addition to any liability Loral may otherwise have.

7.2 Indemnification by the Holders. In the event of any registration of any
Registrable Securities under the Securities Act pursuant to this Agreement, each Holder shall,
severally and not jointly, indemnify and hold harmless (in the same manner and to the same extent
as set forth in Section 7.1 hereof) Loral, each director and officer of Loral and each other
Person, if any, who controls Loral within the meaning of the Securities Act and the Exchange Act
(each such Person being sometimes referred to as a “Company Indemnified Person”), against
Losses to which Loral or any such Persons may become subject under the Securities Act or otherwise,
to the extent that such Losses (or related actions or proceedings) arise out of or are based upon
(A) any untrue statement or alleged untrue statement of any material fact contained in any
Registration Statement in which Registrable Securities were included for registration under the
Securities Act, or any preliminary Prospectus or any final Prospectus included in such Registration
Statement (or any amendment or supplement to such Registration Statement or Prospectus), or (B) any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, (in the case of the Prospectus and any preliminary
Prospectus in light of the circumstances under which they were made) not misleading, in each case,
only to the extent that such untrue statement or alleged untrue statement or omission or alleged
omission was made in such Registration Statement, preliminary Prospectus, final Prospectus,
amendment or supplement in reliance upon and in conformity with written information furnished to
Loral by such Holder, or on such Holder’s behalf, specifically for inclusion, respectively, in such
Registration Statement, preliminary Prospectus, final Prospectus, amendment or supplement; and each
Holder agrees to reimburse such Company Indemnified Person for any legal or other expenses
reasonably incurred by it in connection with investigating or defending any such action or claim as
such expenses are incurred; provided, however, that a Holder’s aggregate liability
under this Agreement shall be limited to an amount equal to the net proceeds (after deducting the
underwriter’s discount and expenses) received by such Holder from the sale of such Holder’s
Registrable Securities pursuant to such registration.

7.3 Notice of Claims, Etc. Promptly after receipt by any Person entitled to indemnity
under Section 7.1 or 7.2 hereof (an “Indemnitee”) of notice of the commencement of any
action or proceeding (an “Action”) involving a claim referred to in such Sections, such
Indemnitee shall, if indemnification is sought against an indemnifying party, give written notice
to such indemnifying party of the commencement of such Action; provided, however,
that the failure of any Indemnitee to give said notice shall not relieve the indemnifying party of
its obligations under Sections 7.1 or 7.2 hereof, except to the extent that the indemnifying party
is actually prejudiced by such failure. In case an Action is brought against any Indemnitee, and
such Indemnitee notifies the indemnifying party of the commencement thereof, each indemnifying
party shall be entitled to participate therein and, to the extent it elects to do so by written
notice delivered to the Indemnitee promptly after receiving the aforesaid notice, to assume the
defense thereof with counsel selected by such Indemnitee and reasonably satisfactory to such
indemnifying party. Notwithstanding the foregoing, the Indemnitee shall have the right to employ
its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense
of such Indemnitee, unless (i) the employment of such counsel shall have been authorized in writing
by the indemnifying party, (ii) the indemnifying party shall not have employed counsel to take
charge of the defense of such Action, reasonably promptly after notice of the commencement thereof
or (iii) such Indemnitee reasonably shall have concluded that there may be defenses available to it
which are different from or additional to those available to the indemnifying party which, if the
indemnifying party and the Indemnitee were to be represented by the same counsel, could result in a
conflict of interest for such counsel or materially prejudice the prosecution of the defenses
available to such Indemnitee. If any of the events specified in clauses (i), (ii) or (iii) of the
preceding sentence shall have occurred or otherwise shall be applicable, then the fees and expenses
of counsel for the Indemnitee shall be borne by the indemnifying party; it being understood,
however, that the indemnifying party shall not, in connection with any one such claim or
proceeding, or separate but substantially similar or related claims or proceedings arising out of
the same general allegations or circumstances, be liable for the fees and expenses of more than one
separate firm of attorneys (together with appropriate local counsel) at any time for all
Indemnitees hereunder, or for fees and expenses that are not reasonable. Anything in this Section
7.3 to the contrary notwithstanding, an indemnifying party shall not be liable for the settlement
of any action effected without its prior written consent (which consent shall not unreasonably be
withheld or delayed), but if settled with the prior written consent of the indemnifying party, or
if there shall be a final judgment adverse to the Indemnitee, the indemnifying party agrees to
indemnify the Indemnitee from and against any loss or liability by reason of such settlement or
judgment. No indemnifying party shall, without the prior consent of the Indemnitee (which consent
shall not be unreasonably withheld or delayed), consent to entry of any judgment or enter into any
settlement or compromise, with respect to any pending or threatened action or claim in respect of
which the Indemnitee would be entitled to indemnification or contribution hereunder (whether or not
the Indemnitee is an actual party to such action or claim), which (i) does not include as a term
thereof the unconditional release of the Indemnitee from all liability in respect of such action or
claim or (ii) includes an admission of fault, culpability or a failure to act by or on behalf of
the Indemnitee.

7.4 Contribution. If the indemnification provided for in this Article VII is
unavailable or insufficient to hold harmless an Indemnitee in respect of any Losses, then each
indemnifying party shall, in lieu of indemnifying such Indemnitee, contribute to the amount paid or
payable by such Indemnitee as a result of such Losses in such proportion as appropriate to reflect
the relative fault of the indemnifying party, on the one hand, and the Indemnitee, on the other
hand, which relative fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by such Indemnitee or indemnifying party, and such
parties’ relative intent, knowledge, access to information and opportunity to correct or mitigate
the damage in respect of or prevent the untrue statement or omission giving rise to such
indemnification obligation; provided, however, that a Holder’s aggregate liability
under this Section 7.4 shall be limited to an amount equal to the net proceeds (after deducting the
underwriter’s discount but before deducting expenses) received by such Holder from the sale of such
Holder’s Registrable Securities pursuant to such registration. The parties hereto agree that it
would not be just and equitable if contributions pursuant to this Section 7.4 were determined
solely by pro rata allocation or by any other method of allocation which did not take account of
the equitable considerations referred to above. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who is not guilty of such fraudulent misrepresentation.

7.5 Indemnification Payments; Other Remedies.

(a) Periodic payments of amounts required to be paid pursuant to this Article VII shall be
made during the course of the investigation or defense, as and when reasonably itemized bills
therefor are delivered to the indemnifying party in respect of any particular Loss as incurred.

(b) The remedies provided in this Article VII are not exclusive and shall not limit any rights
or remedies that may otherwise be available to an Indemnitee at law or in equity.

ARTICLE VIII

REGISTRATION EXPENSES

In connection with any offerings pursuant to a Registration Statement hereunder, Loral shall
pay (i) all registration and filing fees, (ii) all fees and expenses of compliance with state
securities or “blue sky” laws (including reasonable fees and disbursements of counsel in connection
with “blue sky” laws qualifications of the Registrable Securities), (iii) printing and duplicating
expenses, (iv) internal expenses of Loral (including all salaries and expenses of its officers and
employees performing legal or accounting duties), (v) fees and disbursements of counsel for Loral
and fees and expenses of independent certified public accountants retained by Loral (including the
expenses of any comfort letters or costs associated with the delivery by independent certified
public accountants of a comfort letter or comfort letters or with any required special audits),
(vi) the reasonable fees and expenses of any special experts retained by Loral, (vii) fees and
expenses in connection with any review of underwriting arrangements by the NASD, including fees and
expenses of any “qualified independent underwriter” in connection with an Underwritten Offering,
(viii) reasonable fees and expenses of not more than one counsel for the Participating Holders (as
a group), (ix) fees and expenses in connection with listing, if applicable, the Registrable
Securities on a securities exchange or the Nasdaq National Market, and (x) all duplicating,
distribution and delivery expenses. In connection any offerings pursuant to a Registration
Statement, each Participating Holder shall pay (i) any underwriting fees, discounts or commissions
attributable to the sale of Registrable Securities by such Participating Holder in connection with
an Underwritten Offering; (ii) any out-of-pocket expenses of such Participating Holder including
any fees and expenses of counsel to such Participating Holder (other than as set forth in clause
(viii) of the immediately preceding sentence); and (iii) any applicable transfer taxes.

ARTICLE IX

RULE 144

With a view to making available to the Holders the benefits of Rule 144 and any other similar
rule or regulation of the Commission that may at any time permit a Holder to sell securities of
Loral to the public without registration or pursuant to a registration on Form S-3, Loral covenants
that, from and after the time that and for so long as it is subject to Section 13 or 15(d) of the
Exchange Act thereafter, it shall use its reasonable efforts to file in a timely manner all reports
required to be filed by it under the Exchange Act, and that it shall comply with the requirements
of Rule 144(c), as such Rule may be amended from time to time (or any similar rule or regulation
hereafter adopted by the Commission), regarding the availability of current public information to
the extent required to enable any Holder to sell Registrable Securities without registration under
the Securities Act pursuant to the resale provisions of Rule 144 (or any similar rule or
regulation). Upon the request of any Holder, Loral shall promptly deliver to such Holder a written
statement as to whether it has complied with such requirements and, upon such Holder’s compliance
with the applicable provisions of Rule 144 and its delivery of such documents and certificates as
Loral’s transfer agent may reasonably request in connection therewith, shall take such reasonable
action as may be required (including using its reasonable efforts to cause legal counsel to issue
an appropriate opinion) to cause its transfer agent to effectuate any transfer of Registrable
Securities properly requested by such Holder, in accordance with the terms and conditions of
Rule 144.

ARTICLE X

MISCELLANEOUS

10.1 Notice Generally. Any notice, demand, request, consent, approval, declaration,
delivery or other communication hereunder to be made pursuant to the provisions of this Agreement
shall be deemed sufficiently given or made if in writing and signed by the party making the same,
and either delivered in person with receipt acknowledged or sent by registered or certified mail,
return receipt requested, postage prepaid, or by telecopy and confirmed by telecopy answerback,
addressed as follows:

if to any Holder, at the address of such Holder as set forth on Exhibit B hereto,

with copies to:

O’Melveny & Myers LLP

Times Square Tower

7 Times Square

New York, NY 10036

Attn: Doron Lipshitz, Esq.

Telephone: 212-326-2220

Facsimile: 212-326-2061

and if to Loral, at:

Loral Space & Communications Inc.

600 Third Avenue

New York, NY 10016

Attn: Chief Financial Officer

Telephone: 212-338-5359

Facsimile: 212-867-5248

with copies to:

Loral Space & Communications Inc.

600 Third Avenue

New York, NY 10016

Attn: General Counsel

Telephone: 212-338-5340

Facsimile: 212-338-5320

or at such other address as may be substituted by notice given as herein provided. The giving of
any notice required hereunder may be waived in writing by the party entitled to receive such
notice. Every notice, demand, request, consent, approval, declaration, delivery or other
communication hereunder shall be deemed to have been duly given or served on the date on which
personally delivered, with receipt acknowledged, telecopied and confirmed by telecopy answerback or
three (3) Business Days after the same shall have been deposited in the United States mail (by
registered or certified mail, return receipt requested, postage prepaid), whichever is earlier.

10.2 Successors and Assigns. This Agreement may not be assigned by any Holder other
than to a Permitted Assignee (provided, however, that such Permitted Assignee
agrees in writing to be bound by the terms of this Agreement), whereupon such Permitted Assignee
shall be deemed to be a Holder for all purposes of this Agreement. Subject to the preceding
sentence, this Agreement shall be binding upon and inure to the benefit of the parties hereto and
all successors to Loral and the Holders.

10.3 Amendments; Waivers. Any provision of this Agreement affecting a party may be
amended or modified only by a written agreement signed by each such affected party;
provided, however that any approval required by the Holders of a specified class or
series of Registrable Securities shall be effected by the Holders of a majority of the applicable
class or series of Registrable Securities then outstanding. No provision of this Agreement
affecting a party may be waived except pursuant to a writing signed by each such affected party;
provided, however that any approval required by the Holders of a specified class
or series of Registrable Securities shall be effected by the Holders of a majority of the
applicable class or series of Registrable Securities then outstanding.

10.4 Injunctive Relief. It is hereby agreed and acknowledged that it will be
impossible to measure in money the damages that would be suffered if the parties fail to comply
with any of the obligations herein imposed on them and that in the event of any such failure, an
aggrieved Person will be irreparably damaged and will not have an adequate remedy at law. Any such
Person shall, therefore, be entitled (in addition to any other remedy to which it may be entitled
in law or in equity) to injunctive relief, including, without limitation, specific performance, to
enforce such obligations, and if any action should be brought in equity to enforce any of the
provisions of this Agreement, none of the parties hereto shall raise the defense that there is an
adequate remedy at law.

10.5 Attorney’s Fees. In any action or proceeding brought to enforce any provision of
this Agreement or where any provision hereof is validly asserted as a defense, the successful party
shall, to the extent permitted by applicable law, be entitled to recover reasonable attorneys’ fees
in addition to any other available remedy.

10.6 Termination of Registration Rights; Survival. All rights granted under this
Agreement shall terminate with respect to any Holder at such time as such Holder ceases to own any
Registrable Securities and this entire Agreement shall terminate when all Holders cease to own any
Registrable Securities. The provisions of Articles VII, VIII and X shall survive any termination of
this Agreement.

10.7 Severability. Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

10.8 Headings. The headings used in this Agreement are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Agreement.

10.9 Governing Law; Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED EXCLUSIVELY BY,
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Each party to this
Agreement hereby irrevocably agrees that any legal action or proceeding arising out of or relating
to this Agreement or any agreements or transactions contemplated hereby may be brought in the
courts of the State of New York or of the United States of America for the Southern District of New
York and hereby expressly submits to the personal jurisdiction and venue of such courts for the
purposes thereof and expressly waives any claim of improper venue and any claim that such courts
are an inconvenient forum. Each party hereby irrevocably consents to the service of process of any
of the aforementioned courts in any such suit, action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to the address set forth in Section 10.1
hereof, such service to become effective ten (10) days after such mailing.

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

10.11 Entire Agreement. This Agreement embodies the entire agreement and understanding
between Loral and the Holders in respect of the subject matter contained herein. This Agreement
supersedes all prior agreements and understandings between the parties with respect to the subject
matter of this Agreement.

10.12 Further Assurances. Each of the parties hereto shall execute such documents and
perform such further acts as may be reasonably required or desirable to carry out or to perform the
provisions of this Agreement.

[Remainder of page intentionally left blank.]

2

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

	 	 	 
	LORAL SPACE & COMMUNICATIONS INC.
	By:

	 	/s/ Michael B. Targoff
	
 
	 	Name: Michael B. Targoff
	
 
	 	Title: Chief Executive Officer and President
	MHR CAPITAL PARTNERS MASTER ACCOUNT LP

	By: MHR Advisors LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHR CAPITAL PARTNERS (100) LP

	By: MHR Advisors LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHR INSTITUTIONAL PARTNERS LP

	By: MHR Institutional Advisors LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHRA LP

	By: MHR Institutional Advisors LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHRM LP

	By: MHR Institutional Advisors LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President

3

	 	 	 

	 	 	 
	MHR INSTITUTIONAL PARTNERS II LP
	By: MHR Institutional Advisors II LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHR INSTITUTIONAL PARTNERS IIA LP

	By: MHR Institutional Advisors II LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President
	MHR INSTITUTIONAL PARTNERS III LP

	By: MHR Institutional Advisors III LLC,

its General Partner

	By:

	 	/s/ Hal Goldstein
	
 
	 	Name: Hal Goldstein
	
 
	 	Title: Vice President

4

EXHIBIT A

PLAN OF DISTRIBUTION

The selling securityholders, or their pledgees, donees, transferees, or any of their
successors in interest selling shares received from a named selling securityholder as a gift,
partnership distribution or other non-sale-related transfer after the date of this prospectus (all
of whom may be selling securityholders), may sell the securities from time to time on any stock
exchange or automated interdealer quotation system on which the securities are listed, in the
over-the-counter market, in privately negotiated transactions or otherwise, at fixed prices that
may be changed, at market prices prevailing at the time of sale, at prices related to prevailing
market prices or at prices otherwise negotiated. The selling securityholders may sell the
securities by one or more of the following methods, without limitation:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	 
	 	block trades in which the broker or dealer so engaged shall

attempt to sell the securities as agent but may position and

resell a portion of the block as principal to facilitate the

transaction;

	 	 	 	 	 	 	 
	 

	 	(b)
	 	 
	 	purchases by a broker or dealer as principal and resale by

the broker or dealer for its own account pursuant to this

prospectus;

	 	 	 	 	 	 	 
	 

	 	(c)
	 	 
	 	an exchange distribution in accordance with the rules of any

stock exchange on which the securities are listed;

	 	 	 	 	 	 	 
	 

	 	(d)
	 	 
	 	ordinary brokerage transactions and transactions in which the

broker solicits purchases;

	 	 	 	 	 	 	 
	 

	 	(e)
	 	 
	 	privately negotiated transactions;

	 	 	 	 	 	 	 
	 

	 	(f)
	 	 
	 	short sales;

	 	 	 	 	 	 	 
	 

	 	(g)
	 	 
	 	through the writing of options on the securities, whether or

not the options are listed on an options exchange;

	 	 	 	 	 	 	 
	 

	 	(h)
	 	 
	 	through the distribution of the securities by any selling

securityholder to its partners, members or stockholders;

	 	 	 	 	 	 	 
	 

	 	(i)
	 	 
	 	one or more underwritten offerings on a firm commitment or best efforts basis; and

	 	 	 	 	 	 	 
	 

	 	(j)
	 	 
	 	any combination of any of these methods of sale.

The selling securityholders may also transfer the securities by gift. The issuer does not know
of any arrangements by the selling securityholders for the sale of any of the securities.

The selling securityholders may engage brokers and dealers, and any brokers or dealers may arrange
for other brokers or dealers to participate in effecting sales of the securities. These brokers,
dealers or underwriters may act as principals, or as an agent of a selling securityholder.
Broker-dealers may agree with a selling securityholder to sell a specified number of
the

5

securities at a stipulated price per security. If the broker-dealer is unable to sell
securities acting as agent for a selling securityholder, it may purchase as principal any unsold
securities at the stipulated price. Broker-dealers who acquire securities as principals may
thereafter resell the securities from time to time in transactions on any stock exchange or
automated interdealer quotation system on which the securities are then listed, at prices and on
terms then prevailing at the time of sale, at prices related to the then-current market price or in
negotiated transactions. Broker-dealers may use block transactions and sales to and through
broker-dealers, including transactions of the nature described above. The selling securityholders
may also sell the securities in accordance with Rule 144 under the Securities Act of 1933, as
amended, rather than pursuant to this prospectus, regardless of whether the securities are covered
by this prospectus.

From time to time, one or more of the selling securityholders may pledge, hypothecate or grant
a security interest in some or all of the securities owned by them. The pledgees, secured parties
or persons to whom the securities have been hypothecated shall, upon foreclosure in the event of
default, be deemed to be selling securityholders. As and when a selling securityholder takes such
actions, the number of securities offered under this prospectus on behalf of such selling
securityholder shall decrease. The plan of distribution for that selling securityholder’s
securities shall otherwise remain unchanged. In addition, a selling securityholder may, from time
to time, sell the securities short, and, in those instances, this prospectus may be delivered in
connection with the short sales and the securities offered under this prospectus may be used to
cover short sales.

To the extent required under the Securities Act of 1933, as amended, the aggregate amount of
selling securityholders’ securities being offered and the terms of the offering, the names of any
agents, brokers, dealers or underwriters and any applicable commission with respect to a particular
offer shall be set forth in an accompanying prospectus supplement. Any underwriters, dealers,
brokers or agents participating in the distribution of the securities may receive compensation in
the form of underwriting discounts, concessions, commissions or fees from a selling securityholder
and/or purchasers of selling securityholders’ securities for whom they may act (which compensation
as to a particular broker-dealer might be in excess of customary commissions).

The selling securityholders and any underwriters, brokers, dealers or agents that participate
in the distribution of the securities may be deemed to be “underwriters” within the meaning of the
Securities Act of 1933, as amended, and any discounts, concessions, commissions or fees received by
them and any profit on the resale of the securities sold by them may be deemed to be underwriting
discounts and commissions.

A selling securityholder may enter into hedging transactions with broker-dealers and the
broker-dealers may engage in short sales of the securities in the course of hedging the positions
they assume with that selling securityholder, including, without limitation, in connection with
distributions of the securities by those broker-dealers. A selling securityholder may enter into
option or other transactions with broker-dealers that involve the delivery of the securities
offered hereby to the broker-dealers, who may then resell or otherwise transfer those securities. A
selling securityholder may also loan or pledge the securities offered hereby to a broker-dealer and
the broker-dealer may sell the securities offered hereby so loaned or upon a default may sell or
otherwise transfer the pledged securities offered hereby.

A selling securityholder may enter into derivative transactions with third parties, or sell
securities not covered by this prospectus to third parties in privately negotiated transactions. If
the applicable prospectus supplement indicates, in connection with those derivatives, the third
parties may sell securities covered by this prospectus and the applicable prospectus supplement,
including in short sale transactions. If so, the third party may use securities pledged by the
selling securityholder or borrowed from the selling securityholder or others to settle those sales
or to close out any related open borrowings of stock, and may use securities received from the
selling securityholder in settlement of those derivatives to close out any related open borrowings
of stock. The third party in such sale transactions shall be an underwriter and, if not identified
in this prospectus, shall be identified in the applicable prospectus supplement (or a
post-effective amendment).

The selling securityholders and other persons participating in the sale or distribution of the
securities shall be subject to applicable provisions of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder, including Regulation M. This regulation may
limit the timing of purchases and sales of any of the securities by the selling securityholders and
any other person. The anti-manipulation rules under the Securities Exchange Act of 1934 may apply
to sales of securities in the market and to the activities of the selling securityholders and their
affiliates. Furthermore, Regulation M may restrict the ability of any person engaged in the
distribution of the securities to engage in market-making activities with respect to the particular
securities being distributed for a period of up to five business days before the distribution.
These restrictions may affect the marketability of the securities and the ability of any person or
entity to engage in market-making activities with respect to the securities.

The issuer has agreed to indemnify in certain circumstances the selling securityholders and
any brokers, dealers and agents (who may be deemed to be underwriters), if any, of the securities
covered by the registration statement, against certain liabilities, including liabilities under the
Securities Act of 1933, as amended. The selling securityholders have agreed to indemnify us in
certain circumstances against certain liabilities, including liabilities under the Securities Act
of 1933, as amended.

The securities offered hereby were originally issued to the selling securityholders pursuant
to an exemption from the registration requirements of the Securities Act of 1933, as amended. The
issuer agreed to register the securities under the Securities Act of 1933, as amended, and to keep
the registration statement of which this prospectus is a part effective for a specified period of
time. The issuer has agreed to pay all expenses in connection with this offering, including the
fees and expenses of counsel to the selling securityholders, but not including underwriting
discounts, concessions, commissions or fees of the selling securityholders.

The issuer shall not receive any proceeds from sales of any securities by the selling
securityholders.

The issuer cannot assure you that the selling securityholders shall sell all or any portion of
the securities offered hereby.

6

EXHIBIT B

HOLDERS NOTICE INFORMATION

MHR Capital Partners Master Account LP

MHR Capital Partner (100) LP

MHR Institutional Partners LP

MHRM LP

MHRA LP

MHR Institutional Partners II LP

MHR Institutional Partners IIA LP

MHR Institutional Partners III LP

c/o MHR Fund Management LLC

40 West 57th Street, 24th Floor

New York, NY 10019

Attn: Hal Goldstein

Telephone: (212) 262-0005

Facsimile: (212) 262-9356

7

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