Document:

EXHIBIT 10.1

 

Severance Policy for Executives

 

This
Severance Policy for Executives (this “Policy”) of Arcturus Therapeutics Holdings
Inc. (including its subsidiaries, the “Company”) shall be effective as of May 1,
2021 and refers to any circumstance under which a covered Executive ceases to be part of the Company’s workforce. It is beneficial
for all parties that the employment separation process is as clear as possible so misunderstandings and distrust between the employee
and the Company can be avoided.

 

1.                 
General.

 

1.1.           
Covered Executives. This Policy shall be applicable to the Company’s Chief Executive Officer and each other Executive
to the extent such Executive has (i) been designated and notified in writing by the Company upon nomination by the Chief Executive Officer
(the “CEO”) and approval of the Board of Directors or the Compensation Committee of the Board of Directors and (ii) executed
this an acknowledgment to this Policy.

 

1.2.           
No Duplication of Benefits. In no event shall an Executive be entitled to any benefits under this Policy if his or her employment
with the Company terminates under circumstances that entitle Executive to receive severance benefits pursuant to the terms of any individual
written employment or severance agreement; provided, however, that to the extent that the benefits provided in this Policy are greater
than the benefits provided in such written employment or severance agreement, the benefits shall be paid under this Policy in lieu of
the benefits provided in the individual written employment or severance agreement.

 

2.                 
Termination of Employment; Severance and Change in Control Benefits.

 

2.1.           
At-Will Employment. An Executive’s employment relationship is at-will. Either Executive or the Company may terminate
the employment relationship at any time, with or without Cause (as defined below) or advance notice. The at-will nature of the employment
may not be altered unless in writing and signed by Executive and the Chief Executive Officer.

 

2.2.           
Termination Without Cause or Resignation for Good Reason Unrelated to Change in Control. In the event Executive’s
employment with the Company is terminated by the Company without Cause (and other than as a result of Executive’s death or disability),
or if Executive resigns for Good Reason, at any time except during the Change in Control Period (as defined below), such termination or
resignation constitutes a “Separation from Service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard
to any alternative definition thereunder, a “Separation from Service”), and provided that Executive satisfies the Release
Requirement in Section 5 below, the Company shall provide Executive with the following “Severance Benefits”:

 

     

     

    

 

2.2.1.     
Severance Payments. Severance pay in the form of (i) continuation of payment installments of Executive’s final
annual Base Salary according to the following schedule:

 

	 	CEO	Eighteen (18) months
	 	Tier 1 (Other C-Level/EVP)	Twelve (12) months
	 	Tier 2  (SVP)	Nine (9) months
	 	Tier 3  (VP)	Six (6) months

 

Plus (ii) a lump sum
payment of the pro rata portion of Executive’s annual bonus for the year of termination based on actual performance, payable when
annual bonuses are payable to other Executive officers of the Company (but not later than March 15 of the year following the year of termination),
in each case subject to required payroll deductions and tax withholdings (the “Severance Payments”).

 

2.2.2.     
Subject to Sections 5 and 6 below, the Base Salary continuation payments shall be made on the Company’s regular payroll
schedule in effect following Executive’s termination date; provided, however that any such payments that are otherwise scheduled
to be made prior to the Release Effective Date (as defined below) shall instead accrue and be made on the first regular payroll date following
the Release Effective Date. For such purposes, Executive’s final Base Salary will be calculated prior to giving effect to any reduction
in Base Salary that would give rise to Executive’s right to resign for Good Reason.

 

3.                 
Health Care Continuation Coverage Payments.

 

3.1.           
COBRA Premiums. If Executive timely elects continued coverage under COBRA, the Company will pay Executive’s COBRA
premiums to continue Executive’s coverage (including coverage for Executive’s eligible dependents, if applicable) (“COBRA
Premiums”) according to the following schedule:

 

	 	CEO	Eighteen (18) months
	 	Tier 1 (Other C-Level/EVP)	Twelve (12) months
	 	Tier 2 (SVP)	Nine (9) months
	 	Tier 3 (VP)	Six (6) months

 

For the period listed
above starting on the day after the date on which group insurance coverage would, absent COBRA, cease (the “COBRA Premium Period”);
provided, however, that the Company’s provision of such COBRA Premium benefits will immediately cease if, during the COBRA Premium
Period, Executive becomes eligible for group health insurance coverage through a new employer or Executive ceases to be eligible for COBRA
continuation coverage for any reason, including plan termination. In the event Executive becomes covered under another employer’s
group health plan or otherwise ceases to be eligible for COBRA during the COBRA Premium Period, Executive must immediately notify the
Company of such event.

 

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3.2.           
Special Tax Treatment of COBRA Premiums. Notwithstanding the foregoing, if the Company determines, in its sole discretion,
that it cannot pay the COBRA Premiums on a pre-tax basis without potentially incurring financial costs or penalties under applicable law
(including, without limitation, Section 2716 of the Public Health Service Act), the Company shall report the applicable COBRA premiums
as compensation includible in Executive’s gross income for the remainder of the COBRA Premium Period.

 

4.                 
Termination.

 

4.1.           
Termination Without Cause or Resignation for Good Reason During Change in Control Period. In the event Executive’s
employment with the Company is terminated by the Company without Cause (and other than as a result of Executive’s death or disability)
at any time during the Change in Control Period or Executive resigns for Good Reason at any time during the Change in Control Period and
provided that Executive satisfies the Release Requirement in Section 5 below, Executive will receive the following: (i) the Severance
Payments described in Section 2.2.1, except that the amount of the pro rata portion of the annual bonus will be determined based
on Executive’s target annual bonus for the year in which Executive’s Separation from Service occurs and the Severance Payments
will be paid in a lump sum on the first regular payroll date following the Release Effective Date; (ii) the COBRA Premiums described in
Section 3.1; (iii) notwithstanding anything to the contrary set forth in option agreements, effective as of Executive’s employment
termination date, the vesting and exercisability of the options and any other unvested time-based vesting equity awards then held by Executive
shall accelerate and become immediately vested and exercisable, if applicable, by Executive upon such termination and shall remain exercisable,
if applicable, following Executive’s termination as set forth in the applicable equity award documents; and (iv) a lump sum payment
in an amount equal to the pro rata portion of Executive’s target annual bonus for the year of termination, payable on the first
regular payroll date following the Release Effective Date (collectively, the “CIC Severance Benefit”), in each case
subject to applicable tax withholding. With respect to any performance-based vesting equity award, such award shall continue to be governed
in all respects by the terms of the applicable equity award documents.

 

4.2.           
Termination for Cause; Resignation Without Good Reason; Death or Disability. Executive will not be eligible for, or entitled
to any severance benefits, including (without limitation) the benefits listed in Section 2 and Section 3 above, if the Company
terminates Executive’s employment for Cause, Executive resigns Executive’s employment without Good Reason, or Executive’s
employment terminates due to Executive’s death or disability.

 

5.                 
Release Requirement.

 

5.1.           
Conditions to Receipt of Severance Benefits and CIC Severance Benefit. To be eligible for any of the benefits pursuant to Section
2 above, Executive must satisfy the following release requirement (the “Release Requirement”): return to the Company
a signed and dated general release of all known and unknown claims, as drafted in the Company’s discretion, in a severance agreement
acceptable to the Company (the “Release”) within the applicable deadline set forth therein, but in no event later than
twenty-one (21) days following Executive’s termination date, and permit the Release to become effective and irrevocable in accordance
with its terms (such effective date of the Release, the “Release Effective Date”). No Severance Benefits or CIC Severance
Benefit (or any substitute benefits provided in lieu of such benefits) will be provided hereunder prior to the Release Effective Date.
Accordingly, if Executive breaches the preceding sentence and/or refuses to sign and deliver to the Company an executed Release or signs
and delivers to the Company the Release but exercises Executive’s right, if any, under applicable law to revoke the Release (or
any portion thereof), then Executive will not be entitled to any severance, payment or benefit under this Policy.

 

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5.2.           
Section 409A. It is intended that all of the severance benefits and other payments payable under this Policy satisfy, to
the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations 1.409A-1(b)(4),
1.409A-1(b)(5) and 1.409A-1(b)(9), and this Policy will be construed to the greatest extent possible as consistent with those provisions,
and to the extent no so exempt, this Policy (and any definitions hereunder) will be construed in a manner that complies with Section 409A.
For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s
right to receive any installment payments under this Policy (whether severance payments, reimbursements or otherwise) shall be treated
as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered
a separate and distinct payment. Notwithstanding any provision to the contrary in this Policy, if Executive is deemed by the Company at
the time of Executive’s Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i),
and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are deemed
to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order
to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments
shall not be provided to Executive prior to the earliest of (i) the expiration of the six-month and one day period measured from the date
of Executive’s Separation from Service with the Company, (ii) the date of Executive’s death or (iii) such earlier date as
permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such
applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Paragraph shall be paid in a lump sum to Executive,
and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on
any amounts so deferred. If the Company determines that any severance benefits provided under this Policy constitutes “deferred
compensation” under Section 409A, for purposes of determining the schedule for payment of the severance benefits, the effective
date of the Release will not be deemed to have occurred any earlier than the sixtieth (60th) day following the Separation From Service,
regardless of when the Release actually becomes effective, so that if the applicable deadline for Executive to execute (and not revoke)
the applicable Release spans two calendar years, payment of the applicable severance benefits shall not commence until the beginning of
the second calendar year. To the extent required to avoid accelerated taxation and/or tax penalties under Code Section 409A, amounts reimbursable
to Executive under this Policy shall be paid to Executive on or before the last day of the year following the year in which the expense
was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to Executive) during any one year may
not effect amounts reimbursable or provided in any subsequent year. The Company makes no representation that any or all of the payments
described in this Policy will be exempt from or comply with Code Section 409A and make no undertaking to preclude Code Section 409A from
applying to any such payment.

 

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5.3.           
Section 280G; Limitations on Payment. If any payment or benefit Executive will or may receive from the Company or otherwise
(a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the
Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then any such 280G Payment provided pursuant to this Policy (a “Payment”) shall be equal to the Reduced Amount. The
“Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment
(after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever
amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and
local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s
receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant
to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in
the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items
so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

 

5.3.1.     
Notwithstanding any provision of Section 5.3 to the contrary, if the Reduction Method or the Pro Rata Reduction Method would
result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant
to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid
the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest
extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that
are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are
not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning
of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.

 

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5.3.2.     
Unless Executive and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company
for general tax compliance purposes as of the day prior to the effective date of the Change in Control transaction shall perform the foregoing
calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations
required by this Section. The Company shall bear all expenses with respect to the determinations by such accounting or law firm required
to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations
hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within fifteen (15)
calendar days after the date on which Executive’s right to a 280G Payment becomes reasonably likely to occur (if requested at that
time by Executive or the Company) or such other time as requested by Executive or the Company.

 

5.3.3.     
If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 5.3 and the
Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive agrees to promptly
return to the Company a sufficient amount of the Payment so that no portion of the remaining Payment is subject to the Excise Tax. For
the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of Section 5.3, Executive shall have no obligation
to return any portion of the Payment pursuant to the preceding sentence.

 

6.                 
Definitions.

 

6.1.           
Base Salary. For the purposes of this Policy, “Base Salary” means the annual base salary paid by the
Company to Executive.

 

6.2.           
Cause. For the purposes of this Policy, (a) if Executive is a party to a written employment or severance agreement “Cause”
shall have the meaning set forth in such employment or severance agreement and (b) if Executive is not a party a written employment or
severance agreement, “Cause” means the occurrence of any one or more of the following: (i) Executive’s conviction
of or plea of guilty or nolo contendere to any felony or a crime of moral turpitude; (ii) Executive’s continued failure or
refusal to follow lawful and reasonable instructions of the Company or the Board of Directors of the Company or lawful and reasonable
policies and regulations of the Company or its affiliates; (iii) Executive’s continued failure to faithfully and diligently perform
the assigned duties of Executive’s employment with the Company or its affiliates; (iv) unprofessional, unethical, immoral or
fraudulent conduct by Executive, including behavior that that materially discredits the Company or any affiliate of the Company or is
materially detrimental to the reputation, character and standing of the Company or any affiliate of the Company; or (v) Executive’s
material breach of this Policy, the proprietary information agreement executed by Executive, or any written Company policies. An event
described in this Section shall not be treated as “Cause” until after Executive has been given written notice of such event,
failure, conduct or breach and Executive fails to cure such event, failure, conduct or breach within 15 days from such written notice;
provided, however, that such 15-day cure period shall not be required if the event, failure, conduct or breach is incapable of being cured.

 

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6.3.           
Change in Control. For purposes of this Policy, “Change in Control” (or “CIC”) shall mean
any of the following events, provided that such event is closed, consummated, completed, or disposed of on or after the effective date
of this Policy: (i) a sale of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company
is not the surviving entity and in which the holders of the Company’s outstanding voting shares immediately prior to such transaction
own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving
such transaction or, where the surviving entity is a wholly-owned subsidiary of another entity, the surviving entity’s parent; (iii)
a reverse merger in which the Company is the surviving entity but the voting shares outstanding immediately preceding the merger are converted
by virtue of the merger into other property, whether in the form of securities of the surviving entity’s parent, cash or otherwise,
and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own, immediately after
such transaction, securities representing less than fifty percent (50%) of the voting power of the Company; or (iv) an acquisition by
any person, entity or group (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or a subsidiary
of the Company) of the beneficial ownership of securities of the Company representing at least seventy-five percent (75%) of the combined
voting power entitled to vote in the election of directors; provided, however, that nothing in this paragraph shall apply to a sale of
assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company and further provided
that none of the foregoing transactions shall constitute a Change in Control unless it also constitutes a change in ownership of the Company
within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v) or a change in ownership of a substantial portion of the assets of
the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii).

 

6.4.           
Change in Control Period. For the purposes of this Policy, “Change in Control Period” means the time
period commencing on the effective date of a Change in Control and ending on the date that is eighteen (18) months after the effective
date of a Change in Control.

 

6.5.           
Executive. For the purposes of this Policy, “Executive” means any Vice President, Senior Vice President, Executive
Vice President, C-Level, and Chief Executive Officer of the Company who has existed in this position for a minimum of 6 months.

 

6.6.           
Good Reason. For purposes of this Policy, (a) if Executive is a party to a written employment or severance agreement, Executive
shall have “Good Reason” as is set forth in such employment or severance agreement and (b) if Executive is not a party
a written employment or severance agreement, Executive shall have “Good Reason” for resignation from employment with
the Company if any of the following actions are taken by the Company without Executive’s prior written consent: (i) a material reduction
in Executive’s Base Salary, which the parties agree is defined as a reduction of at least 10% of your Base Salary (unless pursuant
to a salary reduction program applicable generally to the Company’s similarly situated employees); (ii) a material reduction in
Executive’s duties (including responsibilities and/or authorities), provided, however, that (A) a change in job position
(including a change in title) shall not be deemed a “material reduction” in and of itself unless Executive’s new duties
are materially reduced from the prior duties, and (B) any reduction in Executive’s duties which results from Executive serving in
a more subordinate role in connection with the Company’s hiring of an individual not previously employed by the Company to serve
as its President and/or Chief Executive Officer shall not be deemed a “material reduction”; or (iii) relocation of Executive’s
principal place of employment to a place that increases Executive’s one-way commute by more than fifty (50) miles as compared to
Executive’s then-current principal place of employment immediately prior to such relocation. In order for Executive to resign for
Good Reason, each of the following requirements must be met: (iv) Executive must provide written notice to the Board of Directors of the
Company within 30 days after the first occurrence of the event giving rise to Good Reason setting forth the basis for Executive’s
resignation, (v) Executive must allow the Company at least 30 days from receipt of such written notice to cure such event, (vi) such
event is not reasonably cured by the Company within such 30 day period (the “Cure Period”), and (vii) Executive must
resign from all positions Executive then holds with the Company not later than 30 days after the expiration of the Cure Period.

 

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6.7.           
Insider Trading Policy. Executive hereby acknowledges that Executive has received and read a copy of the Company’s
Insider Trading Policy (the “Trading Policy”). Executive agrees to comply with the specific requirements of the Trading
Policy in all respects during Executive’s employment or other service relationship with the Company. Executive understands that
the Trading Policy constitutes a material term of Executive’s employment or other service relationship with the Company and that
Executive’s failure to comply in all respects with the Trading Policy is a basis for termination for Cause.

 

7.                 
Dispute Resolution—Arbitration. Any dispute, controversy, or claim, whether contractual or non-contractual, between
Executive and the Company shall be resolved by binding arbitration before the Judicial Arbitration and Mediation Service (the “JAMS”),
in accordance with the JAMS Employment Arbitration Rules and Procedures, available at www.jamsadr.com.
Executive and the Company each agree that before proceeding to arbitration, they will mediate disputes before the JAMS by a mediator approved
by the JAMS. If mediation fails to resolve the matter, any subsequent arbitration shall be conducted by an arbitrator approved by the
JAMS and mutually acceptable to Executive and the Company. All disputes, controversies, and claims shall be conducted by a single arbitrator,
who shall: (i) allow discovery authorized by California Code of Civil Procedure Section 1282, et seq., or any other discovery required
by applicable law; and (ii) issue a written award that sets forth the essential findings of fact and conclusions of law on which the award
is based. The arbitrator shall have the authority to award any relief authorized by law in connection with the asserted claims or disputes.
Judgment upon the arbitrator’s award may be entered in any court having jurisdiction thereof. If Executive and the Company are unable
to agree on the mediator or the arbitrator, then JAMS shall select the mediator/arbitrator. The resolution of the dispute by the arbitrator
shall be final, binding, non-appealable, and fully enforceable by a court of competent jurisdiction under the Federal Arbitration Act.
The arbitration award shall be in writing and shall include a statement of the reasons for the award. The arbitration shall be held in
San Diego, California. The Company shall pay all JAMS, mediation, and arbitrator’s fees and costs, irrespective of who raised the
claim and the outcome of arbitration.

 

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8.                 
Amendments. This Policy may be amended or terminated by the Company at any time; provided that this Section 8 shall
have no force or effect after the occurrence of a Change in Control.

 

I acknowledge that
I have read, understand, and agree to the policies and procedures outlined in Severance Policy for Executives of the Company.

 

Printed Name:  __________________________________

 

Signed:
 _________________________________________ Date:_______________

Executive

 

 

9GOLDBERG -  RSU Grant Agreement
​

Exhibit 10.1
TELESAT CANADA
RESTRICTED SHARE UNIT GRANT AGREEMENT 
This agreement (the “Grant Agreement”), by and among Telesat Canada (the “Corporation”), Daniel Goldberg (the “Participant”), and for the purposes of Sections 2, 3, 4, 6, 7 and 9 only, Loral Space & Communications Inc. (“Loral”), and for the purposes of Sections 2 and 3 only, the Public Sector Pension Investment Board (“PSP”), and only for the purposes of Sections 6(b) and 9, 4440480 Canada Inc. (the “Special Purchaser”), evidences the RSUs granted by the Corporation to the Participant pursuant to and subject to the terms of Telesat Canada’s Restricted Share Unit Plan (the “Plan”), which is incorporated herein by reference. Capitalized terms used in this Grant Agreement that are not defined in this Grant Agreement shall have the meanings attributed thereto in the Plan. If there is any express conflict between the terms and conditions of the Plan and this Grant Agreement, the terms and conditions of this Grant Agreement shall govern. 
		1.	Grant of RSUs

The Corporation hereby grants to the Participant on the Date of Grant such number of RSUs as set forth below on the following basis, subject to the terms and conditions of the Plan and this Grant Agreement: 
	DATE OF GRANT: April 20, 2021
	​

	NUMBER OF RSUS: 2,050,000
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	VESTING SCHEDULE: 
With respect to 1,750,000 RSUs, one-third (1/3rd) of the RSUs will vest on each of the first three (3) anniversaries of the Date of Grant.
With respect to 300,000 RSUs:

●
100,000 RSUs shall vest on the later of (i) the first anniversary of the Date of Grant or (ii) the date on which the Performance Criteria is met 

●
100,000 RSUs shall vest on the later of (i) the second anniversary of the Date of Grant or (ii) the date on which the Performance Criteria is met, and

●
100,000 RSUs shall vest on the later of (i) the third anniversary of the Date of Grant or (ii) the date on which the Performance Criteria is met

	​

	CHANGE OF CONTROL VESTING: The RSUs will vest, in full, upon a Change of Control
	.

	PERFORMANCE CRITERIA: The Fair Market Value of Telesat Corporation Shares have, at some point during the four years following an Initial Public Offering, been equal to or exceeded US$65.28 per Share (for the avoidance of doubt, this price per Share is premised on the Roll Up Transaction occurring, and thus this price per share shall not be adjusted for the Roll Up Transaction)  
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112635107

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		2.	Drag-Along Rights in Respect of Shares Issuable Upon Exercise or Settlement of the RSUs

At any time prior to an Initial Public Offering,
		a.	Provided that Loral or PSP and their respective Affiliates and their Permitted Transferees (as defined in the Unanimous Shareholder Agreement) (such shareholders and their respective Affiliates and Permitted Transferees being referred to in this Agreement as the “Relevant Shareholders”) collectively hold a number of Equity Shares of the Corporation which is not less than 25% of the total number of Equity Shares then outstanding on a fully diluted basis, if a Relevant Shareholder proposes to Transfer to any person (the “Drag-Along Transferee”) at arm’s length from such Relevant Shareholder (for purposes of this Section 2(a) only, any such Relevant Shareholder that is proposing such Transfer, a “Selling Shareholder”) some or all of the Equity Shares then held by the Selling Shareholder, in a bona fide transaction (a “Drag-Along Sale”), then the Selling Shareholder(s) may elect (a “Drag-Along Election”) to require the Participant (but provided that all Participants are being similarly required with regard to their fully vested Shares but not necessarily Shares underlying unvested RSUs) to sell to the Drag-Along Transferee that number of Shares issued upon settlement or exercise/surrender of the RSUs equal to the product of (x) a fraction, the numerator of which is the number of Equity Shares (on a fully diluted basis) as is proposed to be sold by the Selling Shareholder(s) and the denominator of which is the aggregate number of Equity Shares (on a fully diluted basis) owned as of the date of the Drag-Along Notice (as defined below) by all Relevant Shareholder(s), and (y) the number of Shares then owned by the Participant and issued upon the exercise/surrender or settlement, as applicable, plus the number of Shares issuable upon the settlement or exercise/surrender of RSUs held by the Participant whether or not vested, as of the date of the Drag-Along Notice, at the purchase price and upon the other terms and subject to the conditions of the Drag-Along Sale (including the kind and amount of consideration to be paid for such Equity Shares), all of which shall be set forth in the Drag-Along Notice.  To the extent that the number of Shares issued upon settlement or exercise/surrender of any vested portion of the RSUs that are held by the Participant is less than the number calculated pursuant to the preceding sentence, a portion of the RSUs held by the Participant not otherwise vested shall, conditional on the closing of the Drag Along Sale, become vested based on the earliest thereafter vesting tranches being vested before later vesting tranches and the Participant shall be required, conditioned on the closing of the Drag Along Sale, to Transfer the resulting Shares in the manner provided in the previous sentence. The Participant shall be responsible to the Selling Shareholders for the Participant’s pro rata share of a reasonable estimate of the out-of-pocket transactional expenses to be paid by the Selling Shareholders, as determined by the Selling Shareholders, incurred in connection with the Drag-Along Sale. Without limiting the foregoing liability, the Selling Shareholders shall be entitled to agree with the purchaser for the payment of such pro rata share directly, to the Selling Shareholders out of sale proceedings.

		b.	The rights set forth in Section 2(a) shall be exercised by the Selling Shareholder giving written notice by delivery of a true and complete copy of the offer to purchase from the Drag-Along Transferee together with all relevant agreements (the “Drag-Along Notice”) to the Participant which shall specifically identify the identity of the proposed Drag-Along Transferee, the number of Equity Shares proposed to be sold to the Drag-Along Transferee, the purchase price therefor, the material terms and conditions of the proposed Drag-Along Sale and the proposed closing date of the Drag-Along Sale.

		c.	The Selling Shareholders may assign to the Drag-Along Transferee the rights under this Section 2 and Section 4 hereof, and in such event, the Drag-Along Transferee shall be treated as if it is the Selling Shareholder thereafter. 

112635107

 
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		d.	This Section 2 shall not apply to sales made in connection with an Initial Public Offering or other sales made into the public market. 

		e.	This Section 2 shall cease to apply immediately following the occurrence of an Initial Public Offering.

For the purposes of this Agreement, a “Loral Transaction” is a transaction whereby the holders of 90% or more of the shares of each class of common stock (the “Common Stock”) of Loral outstanding at the relevant time, sell, transfer, exchange or otherwise dispose of such shares pursuant to a transaction or series of related transactions as a result of which any person or group (as such terms are defined in Section 13(d) or Section 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) or any successor provision to either of the foregoing) of persons (the “Acquiror”), acquires and becomes the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) directly or indirectly, of 90% or more of each class of Common Stock; provided that such Acquiror is not and does not include, or act in concert with, the MHR Fund (as defined in the Unanimous Shareholders Agreement).
		3.	Tag Along Rights in respect of Shares Issuable Upon Exercise or Settlement of the RSUs 

At any time prior to an Initial Public Offering, 
		a.	No Relevant Shareholder shall sell, offer to sell or agree to sell any Equity Shares (other than (i) sales of Equity Shares by a Relevant Shareholder to any other Relevant Shareholder, (ii) sales made in connection with an Initial Public Offering or other sales made into the public market, (iii) sales of Equity Shares by a Relevant Shareholder(s) to its or their Affiliate, (iv) a sale by PSP (or an Affiliate) of Equity Shares to a shareholder who through such sale acquires a right to nominate directors of the Corporation but not a proportionate share of PSP’s Equity Interest, (v) a transfer to a Permitted Transferee as defined in Section 7.04(1) of the Unanimous Shareholder Agreement, (vi) in a PSP Sell-Down (as defined in the Unanimous Shareholder Agreement), or (vii) sales aggregated with all other Transfers by Relevant Shareholders of less than 5% of Equity Shares collectively owned by all Relevant Shareholders as of the Grant Date), unless the applicable offer is in writing and provides, as a condition precedent to its completion, that the proposed purchaser grants to the Participant the right to require the proposed purchaser to purchase, at the discretion of the Participant (provided that, for purposes of this Section 3, each U.S. Participant shall be deemed to have elected to participate in the Tag-Along Sale (as defined below) to the maximum extent permitted hereunder), some or all of that proportion of the Shares owned by the Participant and issued upon exercise/surrender (for a Non-U.S. Participant) or settlement (for a U.S. Participant) of the RSUs, plus Shares of the Participant issuable upon exercise/surrender or settlement, as applicable, of the RSUs whether or not vested, as is equal to the product of (x) the Tag-Along Percentage, and (y) the number of Shares then owned by the Participant and issued upon the exercise/surrender or settlement, as applicable, of the RSUs plus the number of Shares issuable upon the exercise/surrender or settlement, as applicable, of the RSUs whether or not vested, as of the date of the Tag-Along Notice (as defined herein), at a price per Share, and upon the other terms and subject to the other conditions (including kind and amount of consideration) as is set forth in the offer to the Selling Shareholder(s) (a “Tag-Along Sale”); provided, however, that (without limiting the rights of Loral or PSP under this Grant Agreement) the obligations of each Relevant Shareholder set forth in this Section 2(a) shall cease in the event that, subject to the prior written consent of Loral and PSP, the Participant enters into a separate agreement or arrangement with the proposed purchaser or the Corporation regarding the treatment of the Shares owned by the Participant and issued upon exercise/surrender or settlement, as applicable, of the RSUs in connection with any such sale (or proposed sale) by a Relevant Shareholder. The “Tag-Along 

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			Percentage” means a fraction, the numerator of which is the number of Equity Shares as is proposed to be sold by the Relevant Shareholder(s) who are proposing such sale (for purposes of this Section 3 only, such Relevant Shareholder, a “Selling Shareholder”) and the denominator of which is the aggregate number of Equity Shares then owned by all Relevant Shareholders; provided that if the Tag-Along Sale is for all of PSP’s and its Affiliates’ Equity Shares (a “Qualifying Tag-Along Sale”) and is entered into in connection with, or contemporaneously with, a Loral Transaction, then the Tag-Along Percentage shall equal 100%. 

		b.	Notwithstanding Section 3(a) above, in the event of a Qualifying Tag-Along Sale, with respect to the Applicable Percentage of the Participant’s Shares (whether issued or issuable upon exercise/surrender or settlement, as applicable, of his RSUs and whether vested or unvested): (i) the purchase price per Share shall be the Implicit Loral Purchase Price Per Telesat Share, and (ii) the consideration payable by the buyer in the Qualifying Tag-Along Sale shall, except as otherwise consented to by Loral and the Participant, be the same Non-Cash/Mixed Consideration as is paid to the holders of Loral Common Stock in the Loral Transaction; provided that the consent of the Participant shall not be required where some or all of the Non-Cash/Mixed Consideration is replaced with cash consideration.  “Applicable Percentage” means the number of Equity Shares owned by Loral immediately prior to the Qualifying Tag-Along Sale, divided by the number of Equity Shares outstanding immediately prior to the Qualifying Tag-Along Sale excluding Equity Shares issued or issuable upon the exercise/surrender or settlement, as applicable, of any RSU, such result expressed as a percentage.  “Implicit Loral Purchase Price Per Telesat Share” means the Loral Stake FMV divided by the number of Equity Shares owned by Loral immediately prior to the transaction with respect to which the calculation is being made.  In addition, if the Participant fails to exercise his tag along rights in the event of a Qualifying Tag-Along Sale, the Relevant Shareholders (as applicable) shall have drag-along rights as provided in Section 2 of this Grant Agreement. 

		c.	The Selling Shareholder(s) shall give notice of any proposed sale to the Participant (the “Tag-Along Notice”) and shall permit the Participant to have not less than 20 days to accept such offer in a manner which permits the Participant to specify the number of Shares which the Participant wishes to sell.  To the extent necessary in order to effect the Tag-Along Sale (and only to such extent), and conditional upon the closing of the Tag-Along Sale, any portion of Participant’s RSUs not vested shall become vested (and, with respect to Non-U.S. Participants, exercisable) to the extent that the Shares issuable upon such vesting may be included in the Tag-Along Sale based on the earliest unvested tranches vesting first.  The completion of the sale of such Shares by the Participant shall be subject to completion of the sale of Equity Shares by the Selling Shareholder(s) and vice versa.  If the Participant exercises tag-along rights pursuant to this Section 3, the Participant shall be responsible to the Selling Shareholders for his pro rata share of a reasonable estimate of the transactional expenses of the Selling Shareholders, as determined by the Selling Shareholders, in connection with the Tag-Along Sale, and the Selling Shareholders shall be entitled to agree with the purchaser for the payment of such pro rata share of the reasonable estimate of the transactional expenses, as determined by the Selling Shareholders, to the Selling Shareholders.  

		d.	If any transfer of Equity Shares to a Permitted Transferee or Affiliate is exempt from this Section 3, as set forth above, as a condition of such Transfer, the transferee shall agree that any subsequent Transfer of such Equity Shares shall be subject to this Section 3. 

		e.	In the case of any Initial Public Offering (other than a Roll Up Transaction) in which a Selling Shareholder transfers its Equity Shares, the Participant shall be entitled to the vesting acceleration described in this Section 3 as though such transfer were subject to this Section 

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			3, with regard to the unvested RSUs necessary to be vested and exercised/surrendered or settled, as applicable, to sell the Shares in the initial public offering pursuant to item (4) of Exhibit “A” and Participant shall have no rights to tag along on any public offering under this Section 3 (but shall have the rights under item (4) of Exhibit “A”).

		f.	This Section 3 shall cease to apply immediately following the occurrence of an Initial Public Offering. 

		4.	Sale Procedures 

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

		b.	The Participant shall not exercise any rights of appraisal or dissent rights that the Participant may have (whether under applicable law or otherwise) or could potentially have or acquire in connection with any Drag-Along Sale, Tag-Along Sale or any proposal that is necessary or desirable to consummate the Drag-Along Sale or Tag-Along Sale.

		c.	All Transfers of Shares, including Shares issuable upon the vesting and exercise/surrender (for Non-U.S. Participants) or settlement (for U.S. Participants) of RSUs to the Drag-Along Transferee pursuant to Section 2 or Tag-Along Transferee pursuant to Section 3, shall be consummated contemporaneously on the closing date specified in the Drag-Along Notice or Tag-Along Notice, as applicable, and, if the Participant shall not have taken such steps as are necessary to Transfer Shares as provided above in Section 2 or Section 3, as applicable, in order for the Shares to be so Transferred, the Participant shall be deemed to have appointed each Selling Shareholder as his true and lawful attorney in fact to take all such actions and to sign all such documents as are necessary or, in the reasonable view of the Selling Shareholder, desirable in order to effect such Transfer.  In such event, the Selling Shareholder shall hold the purchase price for such Shares in trust for the Participant, pending acknowledgement in writing of the Transfer by the Participant.

		d.	This Section 4 shall cease to apply immediately following the occurrence of an Initial Public Offering. 

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		5.	Revised Vesting Period and Forfeiture

		a.	The following provisions will apply upon termination of the Participant’s Employment: 

	i.		Upon termination of the Participant’s Employment by the Employer for Cause at any time, all RSUs, whether vested or unvested, shall immediately as of the Termination Date be forfeited; 

	ii.		Upon termination of the Participant’s Employment by the Employer at any time without Cause, or by the Participant for Good Reason, all RSUs which had vested on or prior to such Termination Date shall remain in effect and all RSUs which had not vested as of such Termination Date of the Participant’s Employment shall immediately become vested, with all such vested RSUs being settled in accordance with the terms of the Plan and this Grant Agreement; 

	iii.		If the Participant’s Employment terminates as a result of death or Disability Termination of the Participant, the portion of the Participant’s unvested RSUs which would vest within one year of the Termination Date shall immediately become vested, with all such vested RSUs being settled in accordance with the terms of the Plan and this Grant Agreement; and 

	iv.		Upon a Non Fault Termination (as defined in the Participant’s Employment Agreement), any unvested RSUs, shall immediately be forfeited on the Termination Date.

		6.	Restriction on Call Rights and Purchase

		a.	Notwithstanding Section 4.8 of the Plan, the call rights of the Corporation as set out in Section 4.8 of the Plan generally shall not apply if the Participant is terminated by the Corporation without Cause or the Participant’s Employment is terminated by the Participant for Good Reason (as defined in the Participant’s Employment Agreement); provided, that (a) such call rights shall fully apply to Shares that have become issuable upon the exercise/surrender or settlement, as applicable, of the vested RSUs, that become exercisable solely as a consequence of such termination of employment (on the terms specified in Section 4.8 of the Plan) and (b) such call rights may be exercised in respect of any Shares held by the Participant during the six-month and one day period commencing on the later of: (i) the date the Board, acting in good faith, becomes aware that the Participant has become employed by, or is otherwise providing services to, a Competitor (as defined in Exhibit “A” hereto) with the date of such determination by the Board being treated under Section 4.8 of the Plan as if it was the date of termination of employment (in such case, the call right may be exercised at the Fair Market Value of the Shares on the date of exercise) or (ii) the exercise/surrender date or settlement date, as applicable, of the RSUs.  Notwithstanding Section 4.8 of the Plan, in the event that the Participant’s employment terminates, other than for Cause or voluntarily without Good Reason (as defined in the Participant’s Employment Agreement), the Corporation may not satisfy the purchase price under the call rights by issuing a promissory note to Participant. Upon exercise of the Corporation of its call right, such call right shall immediately be deemed to have been assigned to, and exercised by, the Special Purchaser (as described in Section 6(b)).

		b.	In the event that the call right of the Corporation is available pursuant to Section 6(a) and the Corporation exercises such right pursuant to Section 4.8 of the Plan, the Special Purchaser shall purchase from the Participant all Shares in respect of which such call rights have been exercised pursuant to Section 4.8 of the Plan as provided in Section 4.8 of the 

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			Plan, and for the purchase price therein provided. On such date, the Shares shall be purchased by the Special Purchaser, and shall thereafter be transferred, along with the obligation of the Special Purchaser to pay for the Shares, to a subsidiary of the Special Purchaser, which shall be wound up into the Corporation. The Corporation agrees to the acquisition of such subsidiary by the Corporation from the Special Purchaser for nominal consideration and to the winding up of such subsidiary into the Corporation.  The purchase price for the Shares shall be paid by the Corporation within ten (10) business days after completion of the winding-up of such subsidiary into the Corporation, which shall occur promptly after exercising the call right. This Section 6 (and Section 4.8 of the Plan) shall cease to apply upon the occurrence of a Roll Up Transaction.

		7.	Fair Market Value 

		a.	At any time prior to an Initial Public Offering, for the purposes of this Agreement, “Fair Market Value” means (a) with respect to Equity Shares, Fair Market Value as defined in the Plan, and for any purposes, including for any call and for purposes of Sections 2, 3 and 6, shall be determined without any discount for minority interest or illiquidity, (b) with respect to any other asset, means the amount for which a willing buyer and willing seller would purchase and sell the asset in an efficient market, and (c) with respect to any liability means the amount which a willing creditor would accept to discharge such liability and which a willing debtor would pay to discharge such liability in an efficient market.  

		b.	The “Loral Stake FMV” means: (i) the Fair Market Value of the total consideration that is to be paid to the holders of Loral equity in the Loral Transaction, plus (ii) the Fair Market Value immediately prior to closing on the date of the closing of a Loral Transaction of any indebtedness of Loral incurred to fund cash distributions to the holders of Loral equity, less (iii) the amount, if any, by which the Fair Market Value of Loral’s assets (excluding the Equity Shares) exceeds the Fair Market Value of Loral’s liabilities (other than liabilities included in clause (ii) above). Loral shall cooperate with the Board in its determination of Fair Market Value for purposes of Sections 3, 6 and 9.

		c.	If the Participant or Loral (with respect to Fair Market Value determinations for the purposes of Section 3, 6 and/or 9) does not agree with the Fair Market Value as determined by the Board pursuant to the Plan and this Section 7, the Participant or Loral, as the case may be (the “Objector”) shall notify the Board in writing of such objection within fifteen (15) days of receipt of written notice of such Fair Market Value and shall provide to the Board his own determination of Fair Market Value in writing no later than thirty (30) days of such receipt.  The Board shall submit the determinations of Fair Market Value to an investment banker or valuation service agreed upon in good faith by the Board, Loral and the Participant (an “Appraiser”) to choose one of the determinations as the most appropriate valuation of the Fair Market Value of the Shares.  All fees of the Appraiser shall be paid (a) by the Corporation if the Appraiser chooses an Objector’s determination of Fair Market Value, and (b) by the Objector if the Appraiser chooses the Board’s determination of Fair Market Value.  For the avoidance of doubt, the provisions of this paragraph (c) shall also apply to the determination of the Loral Stake FMV.

		d.	This Section 7 shall cease to apply upon the occurrence of a Roll Up Transaction. 

		8.	Dividends; Other Share Adjustments 

		a.	In the event that the Corporation pays a dividend or makes a return of capital to the holders of its Equity Shares, the Board will grant an additional right to the Participant to acquire such number of additional Shares upon settlement as is equal to the per-share dividend or return of capital payable to holders of Equity Shares multiplied by the number of Shares 

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			subject to the Participant’s RSUs on the payment date, and such right shall vest, settle and be exercisable (in the case of a non-U.S. Participant) and be subject to the terms and conditions as the RSUs granted pursuant to this Grant Agreement and the Plan; provided, however, that: (i)  a Participant shall be entitled to elect, in lieu of receiving Shares, to surrender his or her right to acquire Shares to the Corporation in consideration for a payment by the Corporation in cash in an amount equal to the Fair Market Value of the Shares underlying the right (the “Dividend Cash Alternative”); and (ii) any rights granted under this Section 8 shall be considered “RSUs” for purposes determining the number of Accelerated RSUs (as defined in the Plan) in the preamble of Section 4.2 of the Plan.  

		b.	Rights to receive Shares will be subject to the same vesting, settlement and exercise (in the case of a non-U.S. Participant) terms as the RSUs in respect of which such rights are credited provided, however, that a Participant shall be entitled to the Dividend Cash Alternative.   

		c.	On the date and to the extent a portion of the Participant’s RSUs are forfeited, the Participant will forfeit any rights to Shares (or cash in lieu of Shares) granted under this Section 8 and which are attributable to such forfeited portion of the RSUs.   

		9.	Share Repurchasing 

In the event the Corporation repurchases or offers to repurchase its Shares from both Loral or PSP or their respective Affiliates, or their respective permitted transferees, on a substantially pro rata basis, the Corporation shall also offer to repurchase Shares from Participant on the same basis to the extent such offer is legally permitted.  Such pro rata portion shall be based on all Shares issued to Participant and all RSUs outstanding that were granted to Participant, whether vested or unvested.  Participant shall accept such offer within ten (10) business days of its being made or shall be deemed to have rejected such offer and, if accepted, the sale and purchase shall close at the same time as the closing of the stock purchase from Loral and PSP or their respective Affiliates (provided that if a U.S. Participant holds unvested RSUs that would be eligible to vest pursuant to this Section 9, such U.S. Participant shall be deemed to have accepted such offer with respect to such unvested RSUs).  To the extent necessary to permit the sale, additional RSUs shall vest immediately prior to the close of sale and purchase in order of the next vesting tranches. From and after a Roll Up Transaction, for purposes of this Section 9, each reference to “Loral” shall be disregarded.
		10.	Representations of the Participant

		a.	By accepting and executing this Grant Agreement, the Participant represents, warrants and acknowledges:

	i.		that he or she requested and is satisfied that the foregoing be drawn up in the English language. Le soussigné reconnaît qu’il a exigé que ce qui précède soit rédigé et exécuté en anglais et s’en déclare satisfait; 

	ii.		his or her participation in the trade and acceptance of the RSUs is voluntary; 

	iii.		that he or she has not been induced to participate in the Plan by expectation of engagement, appointment, employment, continued engagement, continued appointment or continued employment, as applicable, with the Corporation or its Affiliates; 

	iv.		that he or she has received, or has had the opportunity to receive independent legal advice in connection with the terms and conditions of this Grant Agreement and the 

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			Plan (including the consequences of the cession of the Participant’s Employment upon the RSUs); 

	v.		that the grant of the RSUs does not create the right or expectation for any additional grants of RSUs even if the Participant has been repeatedly awarded grants of RSUs; 

	vi.		that RSUs do not form an integral part of the Participant’s compensation from employment, if applicable;

	vii.		he or she has received a copy of the Plan, including the Accession Agreement attached thereto as Schedule B; 

	viii.		the terms and conditions of the Plan are fair and reasonable; 

	ix.		he or she has read and understood the Plan and this Grant Agreement, and agrees to the terms and conditions thereof including, without limitation, those terms, conditions and definitions set out in Section 4.6 [Limitation on Transfer], Section 4.7 [Cessation of Service], Section 4.8 [Call Right], Section 4.9 [Lockup],  Section 4.12 [Unanimous Shareholders Agreement], and Section 4.13 [Roll Up Transaction] of the Plan, and Section 2 [Drag Along Rights], Section 3 [Tag Along Rights], Section 4 [Sale Procedures] and Section 5 [Revised Vesting Period and Forfeiture] of this Grant Agreement; 

	x.		until such time as the Shares or the Common Shares or any other share convertible into Common Shares, or any successor security of the Corporation, regularly trades in, on or through the facilities of one or more securities exchanges and/or inter-dealer quotation systems in Canada or elsewhere, no settlement or exercise/surrender of RSUs shall be effective and no Shares shall be issued to the Participant in connection therewith until the Participant has executed an Accession Agreement, which Accession Agreement has been reviewed by the Participant; 

	xi.		among other provisions, the Plan contains a “call-right” and agrees that such “call-right” may be exercised by the Corporation or its designee (with the Corporation having the right to enforce the right of the designee).

		b.	For absolute certainty, by accepting and executing this Grant Agreement, the Participant specifically represents, warrants and acknowledges that he or she has read and understood the terms and conditions set out in Section 4.7 of the Plan which (i) state that a Participant shall have no entitlement to damages or other compensation whatsoever arising from, in lieu of, or related to not receiving any RSUs which would have vested or been granted after their Termination Date including but not limited to damages in lieu of notice at common law; and (ii) have the effect that no period of contractual or common law reasonable notice that exceeds the Participant’s minimum statutory notice period under applicable employment standards legislation (if any), shall be used for the purposes of calculating an Participant’s entitlement under the Plan. By accepting and executing this Grant Agreement, the Participant further waives any eligibility to receive damages or payment in lieu of any forfeited RSUs under the Plan that would have vested or accrued during any contractual or common law reasonable notice period that exceeds an Participant’s minimum statutory notice period under the applicable employment standards legislation (if any).

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		11.	Transfer of Shares

No Shares issued to the Participant in connection with the settlement or exercise/surrender of RSUs granted under the Plan shall be transferred except subject to the terms set forth in Exhibit A of this Grant Agreement.
		12.	Miscellaneous

This Grant Agreement is governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. Time is of the essence of this Grant Agreement. This Grant Agreement will enure to the benefit of and will be binding upon the parties and their heirs, attorneys, guardians, estate trustees, executors, trustees and administrators and the successors of the Corporation.
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IN WITNESS WHEREOF the parties have executed this Grant Agreement. 
TELESAT CANADA
/s/ Chris DiFrancesco
Authorized Signing Officer 
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LORAL SPACE & COMMUNICATIONS INC.
/s/ Avi Katz
Authorized Signing Officer 
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PUBLIC SECTOR PENSION INVESTMENT BOARD
/s/ Guthrie Stewart
Authorized Signing Officer 
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/s/ David Morin
Authorized Signing Officer 
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4440480 CANADA INC. 
/s/ Avi Katz
Authorized Signing Officer 
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Participant’s Acknowledgement
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By signing below, I acknowledge that my execution of the Grant Agreement is done freely and voluntarily, without inducement or duress, having had an opportunity to review, make inquiries, and seek independent legal advice as to the terms and conditions of the Grant Agreement and the Plan.
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Agreed to and accepted this 23rd day of April, 2021.
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/s/ Daniel Goldberg
Daniel Goldberg
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Exhibit A To the Grant Agreement
The Participant may not transfer any Shares or other securities received upon the exercise (for a Non-U.S. Participant) or settlement (for a U.S. Participant) of RSUs, or shares resulting from the conversion of the Shares into other Equity Shares, or any interest therein, (in this Exhibit A, “Shares”) to any person except as permitted herein:
	(1)	The Participant may transfer Shares to a Permitted Transferee as defined in Section 4.6(3) of the Plan (with the prior consent of the Board, which consent may be withheld in the Board’s sole discretion), subject to compliance with the conditions precedent set out in Section 4.6(4) of the Plan, modified as need be to contemplate a transfer of Shares, instead of a transfer of an RSU;

	(2)	Prior to the completion by the Corporation of an Initial Public Offering for Equity Shares of the Corporation, there shall be no transfer of Shares except as provided in (1) above, or as otherwise expressly provided in the Grant Agreement.

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

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

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

	(6)	This Exhibit “A” shall cease to apply upon the occurrence of a Roll Up Transaction. 

	(7)	Definitions: 

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

		(b)	“Satellite Business” shall mean the business of communication of electronic video, data, voice or other information by transmission by satellite operating in the Fixed Satellite Service frequencies for hire in any of the geographic areas in which the Corporation or its Subsidiaries operate such Fixed Satellite Service frequencies as of the Participant’s Termination Date.

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