Document:

Exhibit 10.6 

 

FINAL FORM OF

 

TRUST AGREEMENT

 

creating

 

[NEW TRANSIT] TRUST

 

Made as of [●], 20[●]

 

     

    i

    

 

TABLE
OF CONTENTS

 

	 	Page 
	 	 
	Article One
    INTERPRETATION	1
	 	 	 
	Section 1.01	Definitions	1
	Section 1.02	Rules of Construction	3
	Section 1.03	Governing Law	4
	Section 1.04	References to Acts
    of the Trust	4
	 	 	 
	Article Two
    ESTABLISHMENT AND ACTIVITIES OF THE TRUST	4
	 	 	 
	Section 2.01	Establishment of Trust	4
	Section 2.02	Activities of the Trust	5
	 	 	 
	Article Three
    CHARACTERISTICS OF THE TRUST	6
	 	 	 
	Section 3.01	Name and Head Office	6
	Section 3.02	Nature and Object of
    the Trust	6
	Section 3.03	Representations and
    Covenants	6
	 	 	 
	Article Four
    RIGHTS AND POWERS OF TRUSTEE	7
	 	 	 
	Section 4.01	General Powers	7
	Section 4.02	Legal Title and Custody	7
	Section 4.03	Possession, Use and
    Disposition of Assets	7
	Section 4.04	Taxes	7
	Section 4.05	Collection	8
	Section 4.06	Expenses and Compensation
    of Trustee	8
	Section 4.07	Allocation	9
	Section 4.08	Fiscal Year and Form of
    Accounts	9
	Section 4.09	Power to Contract	9
	Section 4.10	Further Powers	10
	Section 4.11	Auditors	10
	Section 4.12	Power of Attorney	11
	Section 4.13	Defect in Appointment	11
	 	 	 
	Article Five
    REPLACEMENT OF TRUSTEE	11
	 	 	 
	Section 5.01	Resignation or Removal
    of Trustee; Conflict of Interest	11

 

     

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	Article Six
    LIABILITY OF TRUSTEE	13
	 	 	 
	Section 6.01	Standard of Care	13
	Section 6.02	Limitation of Liability of Trustee	13
	Section 6.03	Indemnification of Trustee	14
	Section 6.04	Reliance upon Directions
    and Advice	15
	Section 6.05	Limitation of Liability of Beneficiaries	15
	Section 6.06	Interest of Beneficiaries
    in Trust Property	15
	Section 6.07	Provisions Regarding
    Liability	16
	Section 6.08	Protection of Trustee	16
	 	 	 
	Article Seven
    RECORDS AND NOTICE	17
	 	 	 
	Section 7.01	Records to be Kept	17
	Section 7.02	Method of Keeping Records	17
	Section 7.03	Notice	17
	 	 	 
	Article Eight
    AMENDMENT	18
	 	 	 
	Section 8.01	Amendment	18
	Section 8.02	Automatic Amendment	18
	Section 8.03	Supplemental Trust
    Agreement	18
	 	 	 
	Article Nine
    DISTRIBUTION OF TRUST PROPERTY AND TERMINATION OF TRUST ACTIVITIES	18
	 	 	 
	Section 9.01	Termination of Trust
    Activities	18
	Section 9.02	Termination of Trust
    and Distribution of Trust Property	19
	Section 9.03	Counterparts	19

 

     

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TRUST AGREEMENT

 

THIS AGREEMENT made as of the [●]
day of [●], 20[●],

 

BETWEEN:

 

[●], of [●], Ontario

 

(hereinafter referred to as the “Settlor”)

 

-and-

 

TSX Trust Company,

a trust company existing under the laws of Canada

 

(hereinafter referred to as the “Trustee”),

 

WHEREAS the Settlor wishes to establish
an irrevocable trust to be known as the [New Transit] Trust (the “Trust”) for the benefit of the Beneficiaries
to, inter alia acquire and hold the Special Voting Shares and the Golden Share (each as hereinafter defined), and has transferred
the sum of FIVE THOUSAND ONE HUNDRED [CANADIAN] DOLLARS ([CA]$5,100) to the Trustee to be held by the Trustee and
with and subject to the powers and provisions provided in this Agreement;

 

NOW THEREFORE in consideration of
the premises and of the mutual covenants and agreements herein contained, the parties agree as follows:

 

Article One

INTERPRETATION

 

Section 1.01         Definitions

 

(1)           In
this Agreement, the following terms will have the following meanings:

 

“Annual Net Income of the Trust”
means, for any taxation year, the income of the Trust for such year computed in accordance with the provisions of the ITA other
than paragraph 82(1)(b) and subsection 104(6) of the ITA regarding the calculation of income for the purposes of determining
the “taxable income” of the Trust;

 

“Beneficiaries” means
any one or more charities as the Trustee may at any time and from time to time, subject to Section 4.09(1)(b), select in
writing to be the recipient or recipients of the Trust Property, or any part or parts thereof, including, for greater certainty,
the Annual Net Income of the Trust pursuant to Article Nine, and any successor of any such charity, which the initial Beneficiaries
shall be [●]; provided that at all times each such charity or successor is (i) a “registered charity” designated
as a “charitable organization” or “public foundation” for purposes of the ITA, (ii) is incorporated
under the laws of Canada or a Province thereof and is not a trust, (iii) is not controlled by a non-resident person or group
of non-resident persons for the purposes of ITA and (iv) in conjunction with the distribution of the Remaining Property,
has not given notice that it will decline to accept a payment;

 

     

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“Business Day” means
any day other than a Saturday, Sunday, a day on which banking institutions in the City of Montréal are authorized or required
by law to be closed or a day on which the New York Stock Exchange, the NASDAQ Stock Market or the Toronto Stock Exchange is closed
for trading;

 

“Class A Special Voting Share”
means a Class A special voting share in the capital of New Transit;

 

“Class B Special Voting Share”
means a Class B special voting share in the capital of New Transit;

 

“Class C Special Voting Share”
means a Class C special voting share in the capital of New Transit;

 

“default” has the meaning
set out in Section 6.08(4).

 

“Exchangeable Units”
means exchangeable limited partnership units of the Partnership;

 

“Golden Share” means
the special variable voting share in the capital of New Transit;

 

“ITA” means the Income
Tax Act (Canada) and the regulations thereunder, both as amended, restated or re-enacted from time to time;

 

“LPA” means the amended
and restated limited partnership agreement dated [●], 20[●], as may be amended from time to time, in respect of the
Partnership;

 

“New Transit” means
Telesat Corporation, a corporation incorporated under the laws of the Province of British Columbia;

 

“Officer’s Certificate”
means a certificate signed by any officer or director of New Transit;

 

“Partnership” means
Telesat Partnership LP, a limited partnership formed under the laws of the Province of Ontario;

 

“Person” means any individual,
partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or corporation or other entity with or
without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative,
regulatory body or agency, government or governmental agency, authority or entity however designated or constituted;

 

“Remaining Property”
means all of the property of the Trust other than the Special Voting Shares and the Golden Share;

 

“Settlor” has the meaning
set out in the preamble;

 

     

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“Special Voting Shares”
means, together, the Class A Special Voting Share, the Class B Special Voting Share and the Class C Special Voting
Share;

 

“this Agreement”, “Trust
Agreement”, “herein”, “hereof”, “hereto”, “hereunder”
and similar expressions refer to this Trust Agreement, as the same may be amended, supplemented, modified, restated or replaced
from time to time, and not to any particular Article, Section, paragraph, subparagraph or clause hereof;

 

“Trust” has the meaning
set out in the recitals;

 

“Trust Activities” means
the activities of the Trust described in Section 2.02;

 

“Trust Property” means,
together, the Special Voting Shares, the Golden Share and the Remaining Property;

 

“Trustee” has the meaning
set out in the preamble; and

 

“Voting Agreement” means
the Voting Agreement to be entered into between the Trust, the Trustee, New Transit and the Partnership on the date hereof.

 

Section 1.02          Rules of
Construction

 

Except as may be otherwise specifically
provided in this Agreement and unless the context otherwise requires, in this Agreement:

 

		(a)	the terms “Agreement”, “this Agreement”,
                                         “the Agreement”, “hereto”, “hereof”, “herein”,
                                         “hereby”, “hereunder” and similar expressions refer to this Agreement
                                         in its entirety and not to any particular provision hereof;

 

		(b)	references to an “Article” or “Section”
                                         followed by a number or letter refer to the specified Article or Section of
                                         this Agreement;

 

		(c)	the division of this Agreement into articles and sections
                                         and the insertion of headings are for convenience of reference only and shall not affect
                                         the construction or interpretation of this Agreement;

 

		(d)	words importing the singular number only shall include the
                                         plural and vice versa and words importing the use of any gender shall include all genders;

 

		(e)	the word “including” is deemed to mean “including
                                         without limitation”;

 

		(f)	the terms “party” and “the parties”
                                         refer to a party or the parties to this Agreement;

 

		(g)	any reference to this Agreement, the Voting Agreement or
                                         the LPA means this Agreement, the Voting Agreement or the LPA, as the case may be, as
                                         amended, modified, replaced or supplemented from time to time;

 

		(h)	any reference to a statute, regulation or rule shall
                                         be construed to be a reference thereto as the same may from time to time be amended,
                                         re-enacted or replaced, and any reference to a statute shall include any regulations
                                         or rules made thereunder;

 

     

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		(i)	any time period within which a payment is to be made or any
                                         other action is to be taken hereunder shall be calculated excluding the day on which
                                         the period commences and including the day on which the period ends;

 

		(j)	whenever any payment shall be due, any period of time shall
                                         begin or end, any calculation is to be made or any other action is to be taken on, or
                                         as of, or from a period ending on, a day other than a Business Day, such payment shall
                                         be made, such period of time shall begin or end, such calculation shall be made and such
                                         other actions shall be taken, as the case may be, on, or as of, or from a period beginning
                                         on or ending on, the next succeeding Business Day; and

 

		(k)	references to the Trust owning property or undertaking an
                                         action refer to the Trustee owning property or undertaking an action, as applicable,
                                         solely in its capacity as Trustee of the Trust.

 

Section 1.03         Governing
Law

 

This Agreement shall be interpreted and
enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province
of Ontario and the federal laws of Canada applicable in that province.

 

Section 1.04          References
to Acts of the Trust

 

For greater certainty, where any reference
is made in this Agreement, or in any other instrument to which the Trust or the Trustee, as trustee of the Trust, is party, to
an act (including for greater certainty the Trust Activities) to be performed by, an appointment to be made by, an obligation
or liability of, an asset or right of, a discharge or release to be provided by, a suit or proceeding to be taken by or against,
or a covenant, representation or warranty (other than relating to the constitution or existence of the Trust) by or with respect
to (i) the Trust, or (ii) the Trustee, such reference shall be construed and applied for all purposes as if it referred
to an act to be performed by, an appointment to be made by, an obligation or liability of, an asset or right of, a discharge or
release to be provided by, a suit or proceeding to be taken by or against, or a covenant, representation or warranty (other than
relating to the constitution or existence of the Trust) by or with respect to the Trustee, solely in its capacity as trustee of
the Trust.

 

Article Two

ESTABLISHMENT AND ACTIVITIES OF THE TRUST

 

Section 2.01          Establishment
of Trust

 

The purpose of this Agreement is to create
an inter vivos trust that will acquire and hold the Trust Property for the benefit of the Beneficiaries, as herein provided.

 

     

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Section 2.02         Activities
of the Trust

 

(1)           The
Trust will carry on its activities in accordance with this Agreement and the Voting Agreement in order to hold and administer
the Trust Property for the benefit of the Beneficiaries. The activities of the Trust shall be, and shall be limited to: (i) acquiring
and holding the Special Voting Shares, (ii) acquiring and holding the Golden Share, (iii) entering into the Voting Agreement
and carrying out the Trust’s obligations thereunder, (iv) investing and reinvesting the Remaining Property and (v) carrying
on all other activities as may be reasonably incidental to those activities (the “Trust Activities”).

 

(2)            During
the term commencing on the date hereof until the earliest to occur of (i) the termination of the Trust pursuant to Article Nine,
(ii) the date no Exchangeable Units are outstanding, and (iii) all outstanding Exchangeable Units are held by New Transit,
the Trustee shall have all of the rights and powers of an owner with respect to the Special Voting Shares, provided that the Trustee
shall:

 

		(a)	exercise all voting rights
                                         attached to the Special Voting Shares only in accordance with the provisions of the Voting
                                         Agreement;

 

		(b)	except as specifically authorized
                                         by this Agreement or the Voting Agreement, have no power or authority to sell, transfer,
                                         vote or otherwise deal in or with the Special Voting Shares, and the Special Voting Shares
                                         shall not be used or disposed of by the Trustee for any purpose (including for exercising
                                         dissent or appraisal rights relating to the Special Voting Shares) other than as contemplated
                                         by, and solely in accordance with, the Voting Agreement; and

 

		(c)	hold the certificates representing
                                         the Special Voting Shares, if any, in safe keeping at all times.

 

(3)            During
the term commencing on the date hereof until the earliest to occur of (i) the termination of the Trust pursuant to Article Nine
and (ii) the date the Golden Share is no longer outstanding, the Trustee shall have all of the rights and powers of an owner
with respect to the Golden Share, provided that the Trustee shall:

 

		(a)	exercise all voting rights
                                         attached to the Golden Share only in accordance with the provisions of the Voting Agreement;

 

		(b)	except as specifically authorized
                                         by this Agreement or the Voting Agreement, have no power or authority to sell, transfer,
                                         vote or otherwise deal in or with the Golden Share, and the Golden Share shall not be
                                         used or disposed of by the Trustee for any purpose (including for exercising dissent
                                         or appraisal rights relating to the Golden Share) other than as contemplated by and,
                                         solely in accordance with, the Voting Agreement t; and

 

		(c)	hold the certificate representing
                                         the Golden Share, if any, in safe keeping at all times.

 

(4)            If
any event described in Sections 2.02(2) or 2.02(3) has occurred, New Transit will provide the Trustee with an Officer’s
Certificate stating that such event has occurred.

 

     

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Article Three

CHARACTERISTICS OF THE TRUST

 

Section 3.01         Name
and Head Office

 

The name of the Trust will be “[●]
Trust” and it will be referred to as “[●] Trust”. Should the Trustee determine that the use
of such name is not practicable, legal or convenient, it may use such other designation or adopt such other name for the Trust
as it deems proper and the Trust may hold the Trust Property and conduct the Trust Activities under such other designation or
name. The head office and situs of administration of the Trust initially will be 301-100 Adelaide Street W. Toronto, Ontario M5H
4H1. The Trustee may at any time or from time to time change the head office and situs of the administration of the Trust to another
location within the Province of Ontario and have such other offices or places of administration within Canada as the Trustee may
from time to time determine is necessary or desirable.

 

Section 3.02         Nature
and Object of the Trust

 

(1)           The
Trust is a special purpose trust and the Trust Property will be segregated and not commingled with the money and investments of
any other Person and the Trustee will hold the Trust out as separate and independent from any other Person, maintain separate
books and records for the Trust from those of any other Person, conduct the business of the Trust in the name of the Trust and
comply with other formalities inherent in treating the Trust as separate and independent from any other Person.

 

(2)           The
Trust is not and is not intended to be, will not be deemed to be and will not be treated as a general partnership, limited partnership,
syndicate, association, joint venture, company or corporation, nor will the Trustee or the Beneficiaries or any of them for any
purpose be, or be deemed to be, or be treated in any way whatsoever as, liable or responsible hereunder as partners or joint venturers.
The Trustee will not be, or be deemed to be, the agent of the Beneficiaries. The relationship of the Beneficiaries to the Trustee
will be solely that of the beneficiaries of the Trust and the rights of a Beneficiary will be limited to those expressly conferred
upon it by this Agreement and, for greater certainty, the Trustee will be entitled to deal with the Trust Property in the manner
provided in this Agreement and in accordance with applicable law without the consent of or approval from or notice to the Beneficiaries.

 

(3)           The
object of the Trust is to carry on the Trust Activities for the benefit of the Beneficiaries and to distribute and otherwise deal
with the Trust Property according to this Agreement accordance with applicable law and not for any religious, charitable, educational
or public purpose.

 

Section 3.03          Representations
and Covenants

 

(1)           The
Trustee hereby represent and warrant to New Transit and the Partnership that:

 

		(a)	the Trustee is authorized
                                         to carry on a trust business as contemplated hereby in each of the Provinces of Canada;

 

		(b)	the Trustee is a resident
                                         of Canada for the purposes of the ITA; and

 

     

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		(c)	the Trustee is not controlled
                                         by a non-resident person or group of non-resident persons for the purposes of the ITA.

 

(2)           The
Trustee agrees that all decisions made by the Trustee in the course of performing its obligations as Trustee of the Trust will
be made in Canada.

 

Article Four

RIGHTS AND POWERS OF TRUSTEE

 

Section 4.01          General
Powers

 

Subject to the specific restrictions and
limitations set forth in this Agreement, the Trustee will have, without the necessity of authorization by, and free from any power
or control on the part of, any Beneficiary, full, exclusive and absolute power, control and authority over the Trust Property
and the Trust Activities to the same extent as if the Trustee were the sole and absolute owner thereof in its own right, including,
without limitation, such power, control and authority to do all such acts and things as in its sole judgment and discretion are
necessary, incidental or desirable for carrying on the Trust Activities in accordance with this Agreement and the Voting Agreement,
with such powers of delegation as may be permitted by this Agreement. For greater certainty, and without limiting the generality
of the foregoing, the powers of the Trustee that may be exercised as aforesaid include the powers set forth in Section 4.02
to Section 4.13, inclusive. The enumeration of any specific power or authority in this Agreement will not be construed as
limiting the aforesaid power or authority or any other specific power or authority or any power and authority necessarily incidental
to the conduct of the Trust Activities.

 

Section 4.02         Legal
Title and Custody

 

Subject to Article Nine, the Trustee
will have the power to cause any and all Trust Property to be held by or registered in the name of any Person, on such terms and
in such manner as the Trustee may determine and with or without disclosure that the Trust is interested therein. The Beneficiaries
will not have any right to call for any partition or division of any part of the Trust Property nor can they be called on to pay
for, contribute toward or assume any losses of the Trust. The Trust Property will be considered at all times as property held
in trust by the Trustee, as trustee of the Trust, according and subject to this Agreement and applicable law.

 

Section 4.03          Possession,
Use and Disposition of Assets

 

The Trustee will have the power, subject
to this Agreement and the terms and conditions of the Voting Agreement, to possess and use the Trust Property in connection with
the Trust Activities, including, without limitation, the power to exercise all of the Trust’s rights and perform all of
the Trust’s obligations under the Voting Agreement.

 

Section 4.04         Taxes

 

(1)           The
Trustee will have the power to pay all taxes or assessments of whatever kind or nature imposed upon the Trustee or the Trust in
connection with the Trust Property or upon or against the income from the Trust Activities or any part thereof, to settle and
compromise disputed tax liabilities and, for the foregoing purposes, to make such returns and do all such other acts and things
as may be deemed by the Trustee necessary or desirable. The Trustee will have the power to deduct and remit any taxes which are
required by law to be deducted and remitted from any payment made by the Trustee.

 

     

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(2)           The
Trustee shall, to the extent necessary file on behalf of the Trust appropriate income tax returns and any other returns or reports
as may be required by applicable law or pursuant to the rules and regulations of any securities exchange or other trading
system through which shares of New Transit are traded. New Transit will prepare, or cause to be prepared, any such returns or
reports, including any returns or reports required relating to the distribution of the Remaining Property and the termination
of the Trust, and the Trustee shall cooperate with such preparation.

 

Section 4.05         Collection

 

In accordance with and subject to the terms
of this Agreement and the Voting Agreement, the Trustee will have the power to collect, receive, give receipts for and sue for
all sums of money or other property due to the Trust; to consent to extensions of time for payment, or to the renewal of, any
securities or obligations; to engage or intervene in, prosecute, defend, compound, compromise, abandon or adjust by arbitration
or otherwise any actions, suits, proceedings, disputes, claims, demands or things relating to the Trust Property or the Trust
Activities; to exercise any and all remedies available to it or the Trust under any agreement to which it or the Trust is a party
or otherwise including any foreclosure or power of sale available to the Trustee or the Trust thereunder or under any such other
security and, in connection with any such foreclosure or sale, to purchase or otherwise acquire title to any property and to convey
good title thereto free of any and all trusts hereby established, or to take or retake possession of any property secured or unsecured
thereunder or such other security; to extend the time, with or without security, for the payment or delivery of any debts or property
and to execute and enter into releases, agreements and other instruments; and to pay or satisfy any debts or claims upon any evidence
that the Trustee determines to be sufficient.

 

Section 4.06          Expenses
and Compensation of Trustee

 

(1)           The
Trustee will have the power to incur and make payment of any charges or expenses which in the opinion of the Trustee are reasonably
necessary or incidental to or proper for carrying out any of the powers provided in this Agreement and the Trust Activities and
to pay appropriate compensation or fees out of the Trust Property to Persons with whom the Trust or the Trustee has contracted
or transacted business including, without limitation, any charges, expenses, compensation or fees payable under the Voting Agreement.

 

(2)           New
Transit and the Partnership agree on a joint and several basis to pay the Trustee reasonable compensation for its services under
this Agreement and the Voting Agreement and to reimburse the Trustee for all reasonable expenses (including, but not limited to,
taxes other than taxes based on the net income of the Trustee, fees paid to legal counsel and other experts and advisors and travel
expenses) and disbursements, including the reasonable cost and expense of any suit or litigation of any character and any proceedings
before any governmental agency reasonably incurred by the Trustee in connection with its duties under this Agreement and the Voting
Agreement; provided that New Transit and the Partnership shall have no obligation to reimburse the Trust for any expenses or disbursements
paid, incurred or suffered by the Trustee in any suit or litigation arising from or in connection with the bad faith, wilful misconduct,
gross negligence, fraud or the failure to comply with the standard of care referred to in Section 6.01 by the Trustee or
any incorporator, director, officer, employee or agent of the Trustee.

 

     

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Section 4.07         Allocation

 

The Trustee will have the power to determine
whether moneys or other assets received by the Trust or expenses or disbursements made by the Trust will be charged or credited
to income or capital or allocated between income and capital.

 

Section 4.08         Fiscal
Year and Form of Accounts

 

The fiscal year of the Trust will be the
calendar year or such other fiscal year as the Trustee may determine. The Trustee will have power to determine and from time to
time change the method or form in which the accounts of the Trust will be kept, provided such method or form reasonably complies
with International Financial Reporting Standards, as applicable from time to time.

 

Section 4.09          Power
to Contract

 

(1)           The
rights, powers, duties and authorities of the Trustee under this Agreement, in its capacity as Trustee of the Trust, shall include
and be limited to:

 

		(a)	receipt and safekeeping of
                                         the Special Voting Shares and the Golden Share in accordance with the provisions of this
                                         Agreement and the Voting Agreement;

 

		(b)	designating a Beneficiary
                                         or Beneficiaries in writing on an annual basis or on the termination of the Trust from
                                         a group identified by New Transit or the Partnership;

 

		(c)	granting proxies to holders
                                         of Exchangeable Units as provided in the Voting Agreement and Article 3 of Schedule
                                         A to the LPA;

 

		(d)	voting the Special Voting
                                         Shares in accordance with the provisions of the Voting Agreement;

 

		(e)	voting the Golden Share in
                                         accordance with the provisions of the Voting Agreement;

 

		(f)	holding title to the Trust
                                         Property;

 

		(g)	investing the Remaining Property;
                                         and

 

		(h)	taking such other actions
                                         and doing such other things as are specifically provided in this Agreement or the Voting
                                         Agreement.

 

     

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(2)           In
the exercise of such rights, powers, duties and authorities the Trustee shall have (and is granted) such incidental and additional
rights, powers, duties and authority not in conflict with any of the provisions of this Agreement or the Voting Agreement as the
Trustee, acting in good faith and in the reasonable exercise of its discretion, may deem necessary, appropriate or desirable to
effect the exercise of the powers set forth in Section 4.09(1) above. Any exercise of such discretionary rights, powers,
duties and authorities by the Trustee shall be final, conclusive and binding upon all Persons when made by the Trustee honestly
and in good faith and in compliance with the standard of care referred to in Section 6.01. For greater certainty, the Trustee
shall have only those duties and powers as are set out specifically in this Agreement or the Voting Agreement.

 

(3)           The
Trustee shall not be bound to give notice or do or take any act, action or proceeding by virtue of the powers conferred on it
hereby unless and until it shall be specifically required to do so under the terms hereof; nor shall the Trustee be required to
take any notice of, or to do, or to take any act, action or proceeding as a result of any default or breach of any provision hereunder,
unless and until notified in writing of such default or breach, which notices shall distinctly specify the default or breach desired
to be brought to the attention of the Trustee, and in the absence of such notice the Trustee may for all purposes of this Agreement
conclusively assume that no default or breach has been made in the observance or performance of any of the representations, warranties,
covenants, agreements or conditions contained herein.

 

(4)            In
the exercise of its powers, the Trustee shall not be limited by any law now or hereafter in effect limiting the investments which
may be held or retained by trustees or other fiduciaries.

 

Section 4.10         Further
Powers

 

The Trustee will have the power to perform
and do all such other acts and things and to execute all such deeds, transfers, assignments, agreements or other instruments whatsoever
as are necessary, proper or desirable in order to carry out the Trust Activities in accordance with this Agreement and the Voting
Agreement although such acts or things, or deeds, transfers, assignments or other instruments are not herein specifically mentioned.
Any determination as to what is necessary, proper or desirable in order to carry on the Trust Activities in accordance with any
such agreement, when made by the Trustee honestly and in good faith and in compliance with the standard of care referred to in
Section 6.01, will be conclusive. Any construction of this Agreement or any determination of the purposes of the Trust or
the existence of any power or authority hereunder, made honestly and in good faith and in compliance with the standard of care
referred to in Section 6.01 by the Trustee upon the advice of legal counsel, will be conclusive to the extent consistent
with the law. In construing the provisions of this Agreement, there will be a presumption in favour of a grant of power to the
Trustee.

 

Section 4.11          Auditors

 

In accordance with and subject to the terms
of this Agreement and the Voting Agreement, the Trustee shall have power from time to time to select and appoint and discharge
and re-appoint an auditor or auditors of the Trust in its discretion and to negotiate and fix the reasonable fees of any such
auditor or auditors; provided, such auditor or auditors shall be a nationally recognized independent accounting firm.

 

     

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Section 4.12          Power
of Attorney

 

The Trustee shall have power to appoint
any Person its attorney, with or without power of substitution, and any such attorney shall be entitled to exercise the powers
of the Trustee set forth herein, other than the powers at the discretion of the Trustee set forth in Article Nine and to
select Beneficiaries pursuant to the definition thereof in Section 1.01(1), to the extent of such appointment which may be
for action generally or for any particular action.

 

Section 4.13          Defect
in Appointment

 

Notwithstanding anything to the contrary
herein contained, no action taken by the Trustee will be invalid by reason only of any defect that is thereafter discovered in
its appointment.

 

Article Five

REPLACEMENT OF TRUSTEE

 

Section 5.01         Resignation
or Removal of Trustee; Conflict of Interest

 

(1)           New
Transit and the Partnership, shall have the power at any time, on notice in writing duly executed by both New Transit and the
Partnership, to the Trustee to remove the existing Trustee and to appoint a new or successor Trustee.

 

(2)           The
Trustee may resign its trust after giving 60 days’ notice in writing to New Transit and the Partnership or such shorter
notice as New Transit and the Partnership may accept as sufficient, provided that no such voluntary resignation shall be effective
until a replacement Trustee acceptable to New Transit and the Partnership has been appointed in accordance with Section 5.01(4) and
has executed a written agreement pursuant to and in compliance with Section 6.01 of the Voting Agreement whereby such replacement
Trustee agrees to assume the obligations of the Trustee hereunder, under the Voting Agreement and under any other contract pursuant
to which the Trustee is obligated. The Trustee shall resign if: (i) a material conflict of interest arises in its role as
a trustee under this Agreement, (ii) it ceases to be authorized to carry on the business of a trust company in each of the
Provinces of Canada or (iii) it becomes controlled by a non-resident person or group of non-resident persons for the purposes
of the ITA, and is not rectified within 90 days after the Trustee becomes aware that it has such a material conflict of interest,
has lost such authorization or has become so controlled. Forthwith after the Trustee becomes aware that it has a material conflict
of interest it shall provide New Transit and the Partnership with written notice of the nature of that conflict. Upon such resignation,
the Trustee shall be discharged from all further duties and liabilities under this Agreement. If, notwithstanding the foregoing
provisions of this Section 5.01(2), the Trustee has such a material conflict of interest, the validity and enforceability
of this Agreement shall not be affected in any manner whatsoever by reason only of the existence of such material conflict of
interest. If the Trustee contravenes the foregoing provisions of this Section 5.01(2), any interested party may apply to
a judge of the Ontario Superior Court of Justice, on such notice as such judge may direct, for an order that the Trustee be replaced
as trustee hereunder. The Trustee represents to New Transit and the Partnership that at the time of the execution and delivery
hereof no material conflict of interest exists in the Trustee’s role as a fiduciary hereunder. The Trustee shall retain
the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever,
the Trustee in its reasonable judgment determines that such act would reasonably be expected to cause it to be in non-compliance
with any applicable laws including, without limitation, anti-money laundering or anti-terrorist legislation, economic sanction,
regulation or guideline. Further, should the Trustee, in its sole judgment, determine at any time that its acting under this Agreement
has resulted in its being in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation
or guideline, then it shall have the right to resign on 10 days written notice to New Transit and the Partnership, provided (i) that
the Trustee’s written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances
are rectified to the Trustee’s satisfaction within such 10 day period, then such resignation shall not be effective.

 

     

    - 12 -

    

 

(3)           In
the event of the Trustee resigning or being removed or being dissolved, becoming bankrupt, going into liquidation or otherwise
becoming incapable of acting hereunder, New Transit and the Partnership may forthwith appoint a replacement Trustee; failing which
the retiring Trustee may apply to a judge of the Ontario Superior Court of Justice, on such notice as such judge may direct, for
the appointment of a replacement Trustee. Any replacement Trustee appointed under any provision of this Section 5.01 shall
be a corporation authorized to carry on a trust business as contemplated hereby in each of the Provinces of Canada, shall not
be controlled by a non-resident person or group of non-resident persons for the purposes of the ITA and shall not have a material
conflict of interest in its role as a fiduciary under this Agreement. The expense of any act, document or other instrument or
thing required under this Section 5.01 will be satisfied from the Trust Property.

 

(4)           Subject
to Section 5.01(1), Section 5.01(2) and Section 5.01(3), any replacement or successor Trustee shall, forthwith
upon appointment, become vested with all the estates, properties, rights, powers, duties, responsibilities and trusts of its predecessor
in the trusts hereunder, with like effect as if originally named as Trustee herein. Nevertheless, upon the written request of
the replacement or successor Trustee and upon payment of any outstanding undisputed fees and expenses, the Trustee ceasing to
act will do, make, execute and deliver or cause to be done, made, executed or delivered all such acts, documents, deeds or other
instruments and things as may be necessary or desirable in order to more effectively assign, transfer and deliver to, and vest
in, the replacement or successor Trustee upon the trusts herein expressed, all the rights, powers and trusts of, and all property
and money held by, the trustee so ceasing to act.

 

(5)           Any
company into which the Trustee may be merged or with which it may be consolidated or amalgamated, any company resulting from any
merger, consolidation or amalgamation to which the Trustee shall be a party or any company to which the Trustee may transfer all
or substantially all of its corporate trust business shall be a successor Trustee under this Agreement without the execution of
any instrument or any further act; provided that such successor Trustee shall be a corporation qualified to carry on a trust business
as contemplated hereby in each of the Provinces of Canada, shall not be controlled by a non-resident person or group of non-resident
persons for the purposes of the ITA and shall not have a material conflict of interest in its role as a fiduciary under this Agreement.

 

     

    - 13 -

    

 

Article Six

LIABILITY OF TRUSTEE

 

Section 6.01         Standard
of Care

 

The Trustee will exercise its powers and
carry out its obligations hereunder as Trustee honestly, in good faith and in the best interests of the Trust and the Beneficiaries
and in connection therewith will exercise that degree of care, diligence, and skill that a reasonably prudent trustee would exercise
in comparable circumstances. Unless otherwise required by law, the Trustee will not be required to give bond, surety or security
in any jurisdiction for the performance of any duties or obligations hereunder. The Trustee will not be required to devote its
entire time to the Trust Activities. For greater certainty, it is expressly acknowledged that the entering into of the Voting
Agreement by the Trustee, in its capacity as trustee of the Trust, and the performance by the Trustee or the Trust of its obligations
thereunder in compliance with the express terms of the Voting Agreement shall be deemed to be in the best interests of the Trust
and the Beneficiaries and shall be deemed to have satisfied the foregoing standard of care.

 

Section 6.02          Limitation
of Liability of Trustee

 

The Trustee, in doing anything
or permitting anything to be done in respect of the execution of the duties of its office or in respect of the Trust Property
or the Trust Activities is, and will be conclusively deemed to be, acting solely as trustee of the Trust and not in any other
capacity. The Trustee will not be subject to any liability whatsoever, in tort, contract or otherwise, in connection with the
Trust Property or the Trust Activities, to the Beneficiaries or to any other Person, for any action taken or permitted by it to
be taken, or for its failure to take any action including, without limitation, the failure to compel in any way any former or
acting Trustee to redress any breach of trust in respect of the execution of the duties of its office or in respect of the Trust
Property or the Trust Activities. The Trustee will not be subject to any liability for any claims, demands, losses, actions, causes
of action, costs, charges, debts, expenses, damages, judgments, liabilities or obligations whatsoever against or with respect
to the Trust or the Trustee, arising out of anything done, omitted to be done or permitted to be done by it in respect of the
execution of the duties of its office or for or in respect of the Trust Property or the Trust Activities, including any loss or
diminution in the value of the Trust or its assets, for any reason (including any loss occasioned by error in judgment or oversight
on the part of the Trustee or for any other loss that may happen in the execution by the Trustee of its duties hereunder) and
resort will be had solely to the Trust Property for the payment or performance thereof. No property or assets of the Trustee,
owned in its personal capacity or otherwise, will be subject to levy, execution or other enforcement procedure with regard to
any obligations under this Agreement or under the Voting Agreement. No recourse may be had or taken, directly or indirectly, against
the Trustee in its personal capacity or against any incorporator, director, officer, employee or agent of the Trustee or any predecessor
or successor of the Trustee. The foregoing limitations of this Section 6.02 will not apply in respect of (1) any claim,
demand, loss, action, cause of action, cost, charge, debt, expense, damage, judgment, liability or obligation whatsoever arising
from or in connection with bad faith, wilful misconduct, gross negligence, fraud or the failure to comply with the standard of
care referred to in Section 6.01 by the Trustee or any incorporator, director, officer, employee or agent of the Trustee,
or (2) an injunction, specific performance and other equitable relief expressly available pursuant to the terms of the Voting
Agreement. In no event shall the Trustee be liable for any consequential or special damages, indirect, incidental, exemplary,
aggravated or punitive loss or damages including but not limited to loss of reputation, goodwill or business.

 

     

    - 14 -

    

 

The Trustee shall not be liable or responsible
for loss or damage of any nature whatsoever resulting from official action, war or threat of war, insurrection or civil disturbances,
interruptions in postal, telephone, internet, email, fax or other electronic communication systems or power supply, the failure
of any third party to fulfil its obligations under any agreement with the Trust, New Transit or the Partnership, or any other
factor beyond the Trustee’s control which obstructs, affects, prohibits or delays the Trustee, its directors, officers,
employees or agents in carrying out the responsibilities provided for herein, in whole or in part.

 

The Trustee shall have no duty
or responsibility to fulfil, observe or perform any of the powers or responsibilities of New Transit or the Partnership or any
other person except as are stipulated under this Agreement or the Voting Agreement.

 

Section 6.03          Indemnification
of Trustee

 

New Transit and the Partnership
jointly and severally agree to indemnify and hold harmless the Trustee and each of its directors, officers, employees and agents
acting in accordance with this Agreement and the Voting Agreement (the “Trustee Indemnified Persons”) from and against
any and all claims, demands, losses, actions, causes of action, costs, charges, debts, expenses, damages, liabilities or obligations
whatsoever including, without limitation, reasonable legal fees and disbursements and costs and expenses incurred in connection
with the enforcement of this indemnity, which may be imposed on, incurred by or assessed against the Trustee Indemnified Parties
which, without fraud, gross negligence, wilful misconduct, bad faith or the failure to comply with the standard of care referred
to in Section 6.01 on the part of the Trustee Indemnified Parties, may be paid, incurred or suffered by the Trustee Indemnified
Party by reason or as a result of its compliance with its duties set forth in this Agreement, the Voting Agreement or any written
or oral instruction delivered to the Trustee by New Transit or the Partnership pursuant to this Agreement.

 

In no case shall (1) the
Trustee or any of its directors, officers, employees or agents have recourse to the Special Voting Shares or the Golden Share
and (2) New Transit or the Partnership be liable under this Article Six unless New Transit and the Partnership shall
be notified by the Trustee of the assertion of a claim or of any action commenced against the Trustee Indemnified Parties as soon
as reasonably practicable after any of the Trustee Indemnified Parties shall have received a written assertion of such a claim.
New Transit and the Partnership shall be entitled to participate at their own expense in the defence and, if New Transit and the
Partnership so elect at any time after receipt of such notice, subject to (ii) below, either of them may assume the defence
of any suit brought to enforce any such claim. The Trustee shall have the right to employ separate counsel in any such suit and
participate in the defence thereof, but the fees and expenses of such counsel shall be at the expense of the Trustee unless: (i) the
employment of such counsel has been expressly authorized by New Transit or the Partnership, such authorization not to be unreasonably
withheld; or (ii) the named parties to any such suit include both the Trustee and New Transit or the Partnership and the
Trustee shall have been advised by counsel acceptable to New Transit or the Partnership that there may be one or more legal defences
available to the Trustee that are different from or in addition to those available to New Transit or the Partnership and that,
in the judgment of such counsel, would present a conflict of interest were a joint representation to be undertaken (in which case
New Transit and the Partnership shall not have the right to assume the defence of such suit on behalf of the Trustee but shall
be liable to pay the reasonable fees and expenses of counsel for the Trustee).

 

     

    - 15 -

    

 

The foregoing indemnities will
survive the removal or resignation of the Trustee or the termination of this Trust Agreement and the termination of the Trust.
Each of the Trustee Indemnified Persons other than the Trustee is a third party beneficiary of the foregoing indemnity and the
rights to indemnification of such Trustee Indemnified Persons are held in trust by the Trustee on behalf of such Trustee Indemnified
Persons.

 

Section 6.04          Reliance
upon Directions and Advice

 

(1)           The
Trustee shall be entitled to consult with and obtain advice from legal counsel appointed by it in the event of any questions as
to any of the provisions hereof or its duties hereunder.

 

(2)           The
Trustee may rely and act upon any statement, report or opinion prepared by or any advice received in writing from the auditors,
legal counsel or other professional advisors of the Trustee and shall not be responsible or held liable for any loss or damage
resulting from so relying or acting if the Trustee acted honestly and in good faith in relying or acting (or failing to rely or
act) upon the advice received and complied with the standard of care referred to in Section 6.01 in the selection of any
such auditor, legal counsel or other professional advisor and in the decision to rely or act or not to rely or act upon the advice
received.

 

(3)           The
Trustee shall be fully protected in acting upon any instrument, certificate or other writing (including an Officer’s Certificate
and those given by New Transit or the Partnership) reasonably believed by it to be genuine and to be signed or presented by the
proper person or persons and shall be under no duty to make any investigation or inquiry as to any statement contained in any
such writing but may accept the same as conclusive evidence of the truth and accuracy of the statements therein contained.

 

(4)           The
Trustee shall in no way be responsible for, nor incur any liability based on, the action or failure to act or for acting pursuant
to or in reliance on instructions of New Transit or the Partnership.

 

Section 6.05         Limitation
of Liability of Beneficiaries

 

The Beneficiaries will not be held to have
any personal liability as such, and no resort will be had to its private property for satisfaction of any obligation or claim
arising out of or in connection with any contract or obligation in respect of which the Beneficiaries would otherwise have to
indemnify the Trustee for any liability incurred by the Trustee as such, but rather the Trust Property only will be subject to
levy or execution for such satisfaction.

 

Section 6.06          Interest
of Beneficiaries in Trust Property

 

The legal ownership of the Trust Property
and the right to conduct the affairs of the Trust are vested exclusively in the Trustee and the Beneficiaries shall have no interest
therein other than pursuant to Article Nine as relates to the Remaining Property, and the Beneficiaries shall not have any
right to require the Trustee to terminate the Trust or to partition, liquidate or distribute any of the Trust Property.

 

     

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Section 6.07          Provisions
Regarding Liability

 

This Trust Agreement, Voting Agreement
and any written instrument creating an obligation of the Trustee will be conclusively deemed to have been executed by the Trustee
only in its capacity as trustee of the Trust. Any written instrument creating an obligation of the Trustee may contain a provision
to the effect that, subject to Section 6.02, (i) the Trustee has entered into the written agreement in its capacity
as trustee of the Trust; (ii) any and all of the representations, warranties, undertakings, covenants, indemnities, agreements
and other obligations made on the part of the Trustee therein are made and intended not as personal representations, warranties,
undertakings, covenants, indemnities, agreements and other obligations by the Trustee or for the purpose or with the intention
of binding the Trustee in its personal capacity, but are made and intended for the purpose of binding only the property and assets
of the Trust or a specific portion thereof; (iii) no property or assets of the Trustee, whether owned beneficially by it
in its personal capacity or otherwise, will be subject to levy, execution or other enforcement procedures with regard to any of
the representations, warranties, undertakings, covenants, indemnities, agreements and other obligations of the Trust or the Trustee
thereunder; and (iv) no recourse may be had or taken, directly or indirectly against the Trustee in its personal capacity,
any Beneficiaries or any incorporator, officer, director, employee or agent of the Trustee or any predecessor or successor of
the Trustee, with regard to the representations, warranties, undertakings, covenants, indemnities, agreements and other obligations
of the Trust or the Trustee thereunder; provided, in each case, the foregoing limitations will not apply in respect of (1) any
claim, demand, loss, action, cause of action, cost, charge, debt, expense, damage, judgment, liability or obligation whatsoever
arising from or in connection with bad faith, wilful misconduct, gross negligence, fraud or the failure to comply with the standard
of care referred to in Section 6.01 by the Trustee or any incorporator, director, officer, employee or agent of the Trustee,
or (2) an injunction, specific performance and other equitable relief expressly available pursuant to the terms of the Voting
Agreement. Such written instrument may contain any further provisions which the Trustee may deem appropriate, but, subject to
Section 6.02, the omission of any such provisions will not operate to impose liability on the Trustee in its personal capacity,
any Beneficiaries or any incorporator, officer, director, employee or agent of the Trustee or any predecessor or successor of
the Trustee.

 

Section 6.08          Protection
of Trustee

 

(1)           The
Trustee shall not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity
of any security deposited with it, subject to compliance with the standard of care referred to in Section 6.01.

 

(2)           None
of the provisions in this Agreement will require the Trustee in its personal capacity under any circumstances whatever to expend
or risk its own funds or otherwise incur financial liability in the performance of any of its Trustee duties or in the exercise
of any of its Trustee rights or powers.

 

(3)           The
Trustee will be required to disburse moneys according to this Agreement only to the extent that moneys have been deposited with
it.

 

(4)           The
Trustee shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred on
it hereby unless and until it shall have been required so to do under the terms hereof; nor shall the Trustee be required to take
notice of any failure by it in the exercise of its powers or the carrying out of its obligations hereunder (a “default”),
unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be brought
to the attention of the Trustee and in the absence of any such notice the Trustee may for all purposes of this Agreement conclusively
assume that no default has been made. No such notice shall in any way limit any discretion herein given to the Trustee to determine
whether or not the Trustee shall take action with respect to such default.

 

     

    - 17 -

    

 

(5)           The
Trustee shall not be liable in any manner, or held in breach of this Agreement, if prevented, hindered or delayed in the performance
or observance of any of its obligations hereunder because of any cause beyond its control which prevents its performance or observance
of any of its obligations hereunder and not caused by its fault or default and not avoidable by the exercise of reasonable effort
on its part, including, without limitation, an act of God, riots, terrorism, acts of war, epidemics, governmental action, judicial
order or earthquakes. The performance or observance of such obligations shall be extended for a period of time equivalent to the
time lost because of any delay that is excusable under this Section 6.08(5).

 

(6)           The
obligation of the Trustee to take any action not contemplated in its duties hereunder, shall be conditional upon the New Transit,
the Partnership or another person furnishing, when required by notice in writing by the Trustee, sufficient funds to commence
or continue such act, action or proceeding and indemnify (to the extent sufficient funds for such purpose are not available to
the Trust) satisfactory to the Trustee to protect and hold harmless the Trustee against costs, changes, and expenses and liabilities
to be incurred as a result of such act and any loss and damages it would reasonably be expected to suffer by reason thereof.

 

Article Seven

RECORDS AND NOTICE

 

Section 7.01         Records
to be Kept

 

The Trustee will keep or cause
to be kept proper records and books of account as are by law or good and prudent business practice necessary. Such books or records
will be available for inspection by the Beneficiaries, New Transit and the Partnership. Such records or books shall be kept at
the principal place of business of the Trustee in [Toronto, Ontario] or at the office of any Person whom the Trustee has
appointed to maintain the same, provided that the Trustee has access to such books and records on one Business Day’s notice
to such Person.

 

Section 7.02         Method
of Keeping Records

 

Where this Agreement requires the Trustee
to cause a record to be kept, it may be kept in bound or loose leaf form, or by means of mechanical, electronic or other device.

 

Section 7.03         Notice

 

Any notice or other communication required
or permitted to be given hereunder to the Trustee by New Transit and the Partnership, or to New Transit and the Partnership by
the Trustee, shall be in writing and shall be delivered in accordance with Section [9.04] of the Voting Agreement.

 

     

    - 18 -

    

 

Article Eight

AMENDMENT

 

Section 8.01         Amendment

 

The Trustee may, from time to
time, amend, vary, supplement or replace or restate the provisions of this Agreement without the consent or approval of the Beneficiaries
or any court as follows:

 

(1)            to
the extent deemed by the Trustee in good faith to be necessary to remove any conflicts or other inconsistencies which may exist
between any of the terms of this Agreement and the provisions of any applicable law; and

 

(2)            to
the extent deemed by the Trustee in good faith to be necessary to make any change or correction in this Agreement which is a typographical
change or correction or which the Trustee has been advised by legal counsel is required for the purpose of curing any ambiguity
or defect or inconsistent provision or clerical omission or mistake or manifest error contained herein;

 

Section 8.02         Automatic
Amendment

 

Upon the Trustee ceasing to be a trustee
of the Trust, this Agreement will be deemed to be automatically amended to delete any reference to the name of such trustee so
ceasing to be a trustee of the Trust and to substitute therefor the name of the successor trustee of the Trust. Notice of any
change in the Trustee shall be endorsed upon or attached to this Agreement, signed by the successor Trustee and every such notice
shall be sufficient evidence to any Person dealing with the Trustee under this Agreement as to the facts to which it relates.

 

Section 8.03         Supplemental
Trust Agreement

 

The Trustee is authorized to execute any
supplemental agreement on behalf of the Trust, in its capacity as trustee, to give effect to amendments to this Agreement made
pursuant to this Article Eight.

 

Article Nine

DISTRIBUTION OF TRUST PROPERTY AND TERMINATION OF TRUST ACTIVITIES

 

Section 9.01         Termination
of Trust Activities

 

The Trust will continue in full force and
effect until the earliest to occur of the following events (at which time it will terminate):

 

(1)           one
year following the date on which the later of the following is true: (a) no Exchangeable Units are outstanding or all outstanding
Exchangeable Units are held by New Transit, and (b) the Golden Share is no longer outstanding;

 

     

    - 19 -

    

 

(2)           one
year following the date on which New Transit and the Partnership jointly notify the Trustee in writing that the Trust shall terminate;
and

  

(3)           the
date that is 21 years after the death of the last survivor of the descendants of Her Majesty Queen Elizabeth II of the United
Kingdom of Great Britain and Northern Ireland living on the date of the creation of the Trust.

 

Section 9.02         Termination
of Trust and Distribution of Trust Property

 

Following a termination of the Trust in
accordance with Section 9.01, the Trustee will terminate the Trust Activities and, upon receipt of such releases, indemnities
and refunding agreements as the Trustee deems reasonably necessary for its protection, will distribute the Remaining Property
to the remaining Beneficiaries on an equal share basis.

 

Section 9.03         Counterparts

 

This Agreement and all documents contemplated
by or delivered under or in connection with this Agreement may be executed in any number of counterparts and delivered by means
of facsimile, portable document format (PDF) or other electronic format, with the same effect as if all parties had signed and
delivered the same document, and all counterparts shall be construed together to be an original and will constitute one and the
same agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

DATED as of the date first written above.

 

	 	 	 
	WITNESS	 	[SETTLOR]

 

	 	[●], as
    trustee of [●] TRUST
	 	 	 
	 	 	 
	 	By:	 
	 	Name	 
	 	Title	 
	 	 	 
	 	By:	 
	 	Name	 
	 	Title	 

 

Solely with respect to Section 2.02,
Section 4.04, Section 4.06, Section 4.09, Article Five, Article Six ,Article Seven and Article Nine:

 

	 	TELESAT CORPORATION
	 	 	 
	 	 	                         
	 	By:	 
	 	Name	 
	 	Title	 
	 	 	 
	 	TELESAT PARTNERSHIP
    LP
	 	 	 
	 	 	 
	 	By:	 
	 	Name	 
	 	TitleExhibit 10.7

 

VOTING AGREEMENT

 

THIS AGREEMENT made as of the [●]
day of [●], 20[●],

 

BETWEEN:

 

TSX Trust Company,

a trust company incorporated under the laws of Canada, in its capacity as trustee of [New Transit] Trust, a trust formed under
the laws of the Province of Ontario,

 

(hereinafter referred to as the “Trust”),

 

-and-

 

Telesat Corporation,

a corporation incorporated under the laws of the Province of British Columbia,

 

(hereinafter referred to as “New Transit”),

 

-and-

 

Telesat Partnership LP,

a limited partnership formed under the laws of the Province of Ontario,

 

(hereinafter referred to as the “Partnership”),

 

RECITALS:

 

In connection with the transactions
contemplated by a transaction agreement and plan of merger dated November 23, 2020 between New Transit, the Partnership, Telesat
Canada, a corporation incorporated under the laws of Canada, Telesat CanHold Corporation, a corporation incorporated under the
laws of British Columbia and a wholly-owned subsidiary of the Partnership, Loral Space & Communications Inc., a Delaware
corporation, Lion Combination Sub Corporation, a Delaware corporation and a wholly-owned subsidiary of Loral Space & Communications
Inc., Public Sector Pension Investment Board, a Canadian Crown corporation incorporated under the laws of Canada, and Red Isle
Private Investments Inc., a corporation incorporated under the laws of Canada and a wholly-owned subsidiary of Public Sector Pension
Investment Board (the “Transaction Agreement”), the Partnership will issue Class A exchangeable limited
partnership units, Class B exchangeable limited partnership units and Class C exchangeable limited partnership units
(together, the “Exchangeable Units”) and the Trust will be the registered holder of the Special Voting Shares
(as defined herein) and the Golden Share (as defined herein);

 

    

     

    

 

The Trust, New Transit and the
Partnership have determined to enter into this Agreement pursuant to which the Trust agrees to vote (1) the Special Voting
Shares in accordance with the instructions provided by New Transit, in its capacity as General Partner (as defined herein), as
directed by the holders of the Exchangeable Units pursuant to the LPA (as defined herein) and this Agreement, and (2) the
Golden Share in accordance with the instructions provided by New Transit pursuant to this Agreement, or to grant proxies as contemplated
herein; and

 

The parties hereto agree as follows:

 

Article One
- Interpretation

 

		Section
                            1.01	Defined Terms

 

(1)          For
the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set
out below and grammatical variations of such terms shall have corresponding meanings:

 

“Affiliate” has the meaning set
out in the LPA;

 

“Applicable Record Date” with respect
to a New Transit Meeting or New Transit Consent means the record date established by New Transit or by applicable law for such
New Transit Meeting or New Transit Consent;

 

“Agreement” means this Voting Agreement;

 

“Articles” means the Articles of
New Transit dated the date hereof;

 

“Beneficiaries” has the meaning
set out in the Trust Agreement;

 

“Business Day” means any day other
than a Saturday, a Sunday, a day on which banking institutions in the City of Montréal are authorized or required by law
to be closed or a day on which the New York Stock Exchange, the NASDAQ Stock Market or the Toronto Stock Exchange is closed for
trading;

 

“Class A Common Shares” means
the Class A common shares in the capital of New Transit;

 

“Class A Special Voting Share”
means a Class A special voting share in the capital of New Transit;

 

“Class A Unit Holders” means
the registered holders from time to time of the Class A exchangeable limited partnership units of the Partnership, excluding
New Transit and its Affiliates;

 

“Class B Common Shares” means
the Class B common shares in the capital of New Transit;

 

    - 2 -

     

    

 

“Class B Special Voting Share”
means a Class B special voting share in the capital of New Transit;

 

“Class B Unit Holders” means
the registered holders from time to time of the Class B exchangeable limited partnership units of the Partnership, excluding
New Transit and its Affiliates;

 

“Class C Common Shares” means
the Class C Fully Voting Common Shares and the Class C Limited Voting Common Shares;

 

“Class C Fully Voting Common Share”
means the Class C fully voting common shares in the capital of New Transit;

 

“Class C Limited Voting Common Share”
means a Class C limited voting common shares in the capital of New Transit;

 

“Class C Special Voting Share”
means a Class C special voting share in the capital of New Transit;

 

“Class C Unit Holders” means
the registered holders from time to time of the Class C exchangeable limited partnership units of the Partnership, excluding
New Transit and its Affiliates;

 

“Common Shares” means, together,
the Class A Common Shares, the Class B Common Shares and the Class C Common Shares;

 

“Exchangeable Units” has the meaning
set out in the recitals;

 

“General Partner” means the general
partner of the Partnership as determined from time to time in accordance with the LPA;

 

“Golden Share” means the special
variable voting share in the capital of New Transit;

 

“Holder Votes” has the
meaning set out in the LPA;

 

“Indemnified Parties” has the meaning
set out in Section 4.01(1);

 

“LPA” means the amended and restated
limited partnership agreement of the Partnership dated the date hereof;

 

“New Transit Consent” means any
written consent sought from shareholders of New Transit including the holders of any or all classes of Common Shares;

 

“New Transit Meeting” means any
meeting of shareholders of New Transit at which holders of any or all classes of Common Shares and/or Special Voting Shares are
entitled to vote;

 

“New Transit Successor” has the
meaning set out in Section 6.01;

 

    - 3 -

     

    

 

“Officer’s Certificate” means,
with respect to New Transit, a certificate signed by any officer or director of New Transit, and with respect to the Partnership,
a certificate signed by any officer or director of the General Partner;

 

“Person” has the meaning set out
in the LPA;

 

“Special Voting Shares” means,
together, the Class A Special Voting Share, the Class B Special Voting Share and the Class C Special Voting Share;

 

“Tabulation Agent” means a Person
designated by New Transit, in writing, as its agent to perform the administrative tasks of (1) collecting and tabulating instructions
from the holders of Exchangeable Units for the purpose of instructing New Transit or the Trustee as to the exercise of the Voting
Rights with respect to the Special Voting Shares pursuant to the terms of the LPA and this Agreement, and (2) collecting and
tabulating the votes of the Common Shares and/or instructions from the holders of Exchangeable Units pursuant to the terms of the
LPA for the purpose of instructing New Transit or the Trustee as to the exercise of the Voting Rights with respect to the Golden
Share pursuant to the terms of the Articles and this Agreement. For the avoidance of doubt, New Transit shall retain liability
as principal for the acts of the Tabulation Agent.

 

“Trust Agreement” means the Trust
Agreement made as of the date hereof, establishing the [New Transit] Trust;

 

“Trust Property” has the meaning
set out in the Trust Agreement;

 

“Trustee” means the trustee of
the Trust as determined from time to time in accordance with the Trust Agreement, such person being on the date hereof [●];

 

“Unit Holders” means the registered
holders from time to time of the Exchangeable Units; and

 

“Voting Rights” means the voting
rights attached to the Special Voting Shares (as determined pursuant to the Articles and the LPA) and the voting rights attached
to the Golden Share (as determined pursuant to the Articles), as applicable.

 

		Section
                            1.02	Rules of Construction

 

Except as may be otherwise specifically
provided in this Agreement and unless the context otherwise requires, in this Agreement:

 

		(a)	the terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”,
 “herein”, “hereby”, “hereunder” and similar expressions refer to this Agreement in its entirety
and not to any particular provision hereof;

 

		(b)	references to an “Article” or “Section” followed by a number or letter refer to the specified Article or
Section of this Agreement;

 

    - 4 -

     

    

 

		(c)	the division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only
and shall not affect the construction or interpretation of this Agreement;

 

		(d)	words importing the singular number only shall include the plural and vice versa and words importing the use of any gender
shall include all genders;

 

		(e)	the word “including” is deemed to mean “including without limitation”;

 

		(f)	the terms “party” and “the parties” refer to a party or the parties to this Agreement;

 

		(g)	any reference to this Agreement, the Trust Agreement or the LPA means this Agreement, the Trust Agreement or the LPA, as the
case may be, as amended, modified, replaced or supplemented from time to time;

 

		(h)	any reference to a statute, regulation or rule shall be construed to be a reference thereto as the same may from time
to time be amended, re-enacted or replaced, and any reference to a statute shall include any regulations or rules made thereunder;

 

		(i)	any time period within which a payment is to be made or any other action is to be taken hereunder shall be calculated excluding
the day on which the period commences and including the day on which the period ends;

 

		(j)	whenever any payment shall be due, any period of time shall begin or end, any calculation is to be made or any other action
is to be taken on, or as of, or from a period ending on, a day other than a Business Day, such payment shall be made, such period
of time shall begin or end, such calculation shall be made and such other actions shall be taken, as the case may be, on, or as
of, or from a period beginning on or ending on, the next succeeding Business Day; and

 

		(k)	references to the Trust owning property or undertaking an action refer to the Trustee owning property or undertaking an action,
as applicable in its capacity as trustee of the Trust.

 

		Section
                            1.03	Governing Law and Submission to Jurisdiction

 

This Agreement shall be interpreted
and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the
Province of Ontario and the federal laws of Canada applicable in that province. Each of the parties irrevocably and unconditionally
(i) submits to the non-exclusive jurisdiction of the courts of the Province of Ontario over any action or proceeding arising
out of or relating to this Agreement, (ii) waives any objection that it might otherwise be entitled to assert to the jurisdiction
of such courts and (iii) agrees not to assert that such courts are not a convenient forum for the determination of any such
action or proceeding.

 

    - 5 -

     

    

 

		Section
                            1.04	Severability

 

If any provision of this Agreement
is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party hereto.

 

		Section
                            1.05	Ownership of Special Voting Shares

 

During the term of the Trust and subject
to the terms and conditions of this Agreement, the Trust shall have control over and the exclusive administration of the Special
Voting Shares and shall be entitled to exercise all of the rights and powers of an owner with respect to the Special Voting Shares
provided that, except as specifically authorized by this Agreement or the Trust Agreement, the Trust shall not sell, transfer,
vote or otherwise deal in or with the Special Voting Shares, and the Special Voting Shares shall not be used or disposed of by
the Trust for any purpose (including for exercising dissent or appraisal rights relating to the Special Voting Shares) other than
in accordance with this Agreement and the Trust Agreement.

 

		Section
                            1.06	Ownership of Golden Share

 

During the term of the Trust and subject
to the terms and conditions of this Agreement, the Trust shall have control over and the exclusive administration of the Golden
Share and shall be entitled to exercise all of the rights and powers of an owner with respect to the Golden Share provided that,
except as specifically authorized by this Agreement or the Trust Agreement, the Trust shall not sell, transfer, vote or otherwise
deal in or with the Golden Share, and the Golden Share shall not be used or disposed of by the Trust for any purpose (including
for exercising dissent or appraisal rights relating to the Golden Share) other than in accordance with this Agreement and the Trust
Agreement.

 

Article Two
- Exercise of Voting Rights

 

		Section
                            2.01	Voting Rights

 

The Trust, as the holder of record
of each of the Special Voting Shares and the Golden Share, shall, and shall be entitled to, exercise all of the Voting Rights with
respect to each of the Special Voting Shares and the Golden Share, including the right to vote each of the Special Voting Shares
and the Golden Share in person or by proxy on any matters, questions, proposals or propositions whatsoever that may properly come
before the shareholders of New Transit at a New Transit Meeting and the right to consent in connection with a New Transit Consent
(provided, that neither the Trust nor any representative of the Trust shall be required to attend any New Transit Meeting in person
in order to exercise the Trust’s voting rights hereunder). Such Voting Rights shall be and remain vested in and exercised
by the Trust. Subject to Section 2.03(2):

 

(1)          the
Trust shall exercise the Voting Rights with respect to each of the Special Voting Shares in accordance with, and only on the basis
of, instructions received pursuant to Section 2.02 from New Transit, in New Transit’s capacity as General Partner, or
the Tabulation Agent, with respect to all matters that require the approval of the holder of record of a Special Voting Share,
including, for the avoidance of doubt, voting separately as a class where required under applicable law, each with respect to the
voting thereof at the time at which a New Transit Meeting is held or a New Transit Consent is sought, as applicable;

 

    - 6 -

     

    

 

(2)          the
Trust shall exercise the Voting Rights with respect to the Golden Share in accordance with, and only on the basis of, instructions
received pursuant to Section 2.02 from New Transit or the Tabulation Agent, including, for the avoidance of doubt, voting
separately as a class where required under applicable law, at the time at which a New Transit Meeting is held or a New Transit
Consent is sought, as applicable; and

 

(3)          to
the extent that no instructions are received pursuant to Section 2.02 from New Transit or the Tabulation Agent with respect
to the Voting Rights with respect to any Special Voting Share or the Golden Share, as applicable, the Trust shall not exercise
or permit the exercise of such Voting Rights.

 

		Section
                            2.02	Voting Instructions to Trustee

 

(1)          New
Transit, including in its capacity as General Partner, or the Tabulation Agent shall instruct the Trustee in writing to exercise
the Voting Rights provided in Section 2.01 with respect to the Special Voting Shares in accordance with the terms of the LPA
and with respect to the Golden Share in accordance with the terms of the Articles. The Trustee
may presume that, and has no duty to inquire whether, any instructions received from New Transit or the Tabulation Agent
are in accordance with the LPA or the Articles, as applicable. For the avoidance of doubt,
New Transit shall remain responsible for the accuracy of any instructions delivered to the Trustee by New Transit or the
Tabulation Agent pursuant to this Section 2.02.

 

(2)          New
Transit or the Tabulation Agent shall deliver such written instructions to the Trustee, on behalf of the Trust, as follows:

 

		(a)	in the case of the Voting Rights with respect to the Special Voting Shares: (i) with respect to a New Transit Meeting,
no later than 48 hours prior to the proxy cut-off time established by New Transit for such Meeting, or (ii) with respect to
a New Transit Consent, no later than the close of business on the second Business Day prior to the deadline specified in such New
Transit Consent (provided, in the event that under applicable law any matter requires the approval of the holder of record of a
particular Special Voting Share, voting separately as a class, as promptly as practicable following the close of the applicable
poll and the tabulation of the applicable vote pursuant to the LPA); and

 

		(b)	in the case of the Voting Rights with respect to the Golden Share: as promptly as practicable following the close of the applicable
poll for the Common Shares and the tabulation of the applicable vote pursuant to the Articles.

 

    - 7 -

     

    

 

		Section
                            2.03	Voting by Trust and Attendance of Trust Representative
at Meeting

 

(1)          In
connection with each New Transit Meeting and New Transit Consent, the Trustee, on behalf of the Trust, shall cast and exercise
the Voting Rights, either in person or by proxy in accordance with the written instructions received from New Transit or the Tabulation
Agent pursuant to Section 2.02.

 

(2)          Subject
to the timely receipt of instructions as contemplated in Section 2.02(2), the Trustee shall cause a representative who is
empowered by it to sign and deliver, on behalf of the Trust, proxies for Voting Rights to be voted at each New Transit Meeting.

 

(3)          At
New Transit’s direction (upon New Transit, in its capacity as General Partner, receiving such request by a Unit Holder at
least one Business Day prior to the deadline for timely receipt of instructions as contemplated in Section 2.02(2)), the Trustee
shall sign and deliver to a Unit Holder (or its designee) a proxy to exercise personally the Holder Votes of such Unit Holder with
respect to the applicable Special Voting Shares; provided that such Unit Holder either (i) has not previously given New Transit
instructions pursuant to the LPA in respect of such New Transit Meeting or (ii) submits to such representative written revocation
of any such previous instructions and the Trustee can rely on confirmation from New Transit as to whether these requirements have
been satisfied. The Unit Holder exercising such Holder Votes shall have the same rights as the Trust to speak at the New Transit
Meeting in respect of any matter, question, proposal or proposition, to vote by way of ballot at the New Transit Meeting in respect
of any matter, question, proposal or proposition, and to vote by way of a show of hands in respect of any matter, question or proposition.

 

Article Three
- Concerning the Trustee

 

		Section
                            3.01	Reliance Upon Agreements

 

The Trustee shall not be considered
to be in contravention of any of its rights, powers, duties and authorities hereunder if, when required, it acts and relies reasonably
and in good faith upon statutory declarations, certificates, opinions or reports furnished pursuant to the provisions hereof or
required by the Trustee to be furnished to it in the exercise of its rights, powers, duties and authorities hereunder if such statutory
declarations, certificates (including Officer’s Certificates), opinions or reports comply with the provisions of Section 3.02,
if applicable, and with any other applicable provisions of this Agreement.

 

		Section
                            3.02	Evidence and Authority to the Trustee

 

(1)          New
Transit, the Tabulation Agent or the Partnership, as applicable, shall furnish to the Trustee evidence of compliance with the conditions
provided for in this Agreement relating to any action or step required or permitted to be taken by New Transit, the Tabulation
Agent, the Partnership or the Trust under this Agreement or as a result of any obligation imposed under this Agreement, including
in respect of the Voting Rights and the taking of any other action to be taken by the Trust at the request of or on the application
of any, some or all of New Transit, in its capacity as General Partner and in its own capacity, the Tabulation Agent or the Partnership,
as applicable, promptly if and when:

 

    - 8 -

     

    

 

		(a)	such evidence is required by any other provision of this Agreement, the LPA or the Articles or other constating documents to
be furnished to the Trustee; or

 

		(b)	the Trustee, on behalf of the Trust, in the exercise of its rights, powers, duties and authorities under this Agreement, gives
New Transit, the Tabulation Agent or the Partnership, as applicable, written notice requiring it to furnish such evidence in relation
to any particular action or obligation specified in such notice.

 

(2)          Such
evidence required pursuant to this Section 3.02 shall consist of an Officer’s Certificate of New Transit, the Tabulation
Agent or the Partnership, as applicable, or a statutory declaration or a certificate made by Persons entitled to sign an Officer’s
Certificate stating that any such condition has been complied with in accordance with the terms of this Agreement; provided that
in the case of the Tabulation Agent, such evidence shall also include an Officer’s Certificate or a statutory declaration
or certificate by New Transit

 

(3)          Each
statutory declaration, Officer’s Certificate, opinion or report furnished to the Trustee as evidence of compliance with a
condition provided for in this Agreement shall include a statement by the Person giving the evidence:

 

		(a)	declaring that he or she has read and understands the provisions of this Agreement relating to the condition in question;

 

		(b)	describing the nature and scope of the examination or investigation upon which he or she based the statutory declaration, certificate,
statement or opinion; and

 

		(c)	declaring that he or she has made such examination or investigation as he or she believes is necessary to enable him or her
to make the statements or give the opinions contained or expressed therein.

 

		Section
                            3.03	Trustee Not Bound to Act on Request; Specific Performance

 

		(a)	Except as specifically provided in this Agreement, the Trustee shall not be bound to act in accordance with any direction or
request of New Transit, and/or the Partnership until a duly authenticated copy of the instrument or resolution containing such
direction or request shall have been delivered to the Trustee, and the Trustee shall be empowered to act upon any such copy purporting
to be authenticated (at which time the Trustee shall be bound to so act in accordance with such direction or request ) and reasonably
believed by the Trustee to be genuine. The obligation of the Trustee to act in accordance with the instruction or request of New
Transit, the Tabulation Agent or the Partnership shall be enforceable by New Transit, the Partnership and by any holder or Exchangeable
Units including pursuant to clause (b) below.

 

    - 9 -

     

    

 

		(b)	The Trustee, New Transit and the Partnership hereby agree that irreparable damage for which monetary damages, even if available,
would not be an adequate remedy, would occur in the event that (i) any instruction or request of New Transit or the Partnership
delivered in accordance with this Section 3.03 or (ii) any provision of this Agreement, in each case, is not performed
in accordance with its specific terms or is otherwise breached. Accordingly, the Trustee, New Transit and the Partnership agree
that, prior to the valid termination of this Agreement in accordance with Article 8, New Transit, the Partnership and any
holder of the Exchangeable Units shall be entitled to, and are deemed to have standing to seek and obtain, an injunction or injunctions,
or any other appropriate form of specific performance or equitable relief, to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court of competent jurisdiction in accordance with Section 1.03, this
being in addition to any other remedy to which they are entitled under the terms of this Agreement, at law or in equity (and the
Trustee hereby waives any requirement for the securing or posting of any bond in connection with such remedy). New Transit, the
Partnership and any holder of the Exchangeable Units seeking an injunction or injunctions to prevent breaches or threatened breaches
of, or to enforce compliance with, this Agreement when expressly available pursuant to the terms of this Agreement, shall not be
required to provide any bond or other security in connection with any such order or injunction.

 

Article Four
 – Indemnification and Limitation of Liability

 

		Section
                            4.01	Standard of Care

 

The Trustee will exercise its
powers and carry out its obligations hereunder as Trustee honestly, in good faith and in the best interests of the Trust and the
Beneficiaries and in connection therewith will exercise that degree of care, diligence, and skill that a reasonably prudent trustee
would exercise in comparable circumstances. Unless otherwise required by law, the Trustee will not be required to give bond, surety
or security in any jurisdiction for the performance of any duties or obligations hereunder. The Trustee will not be required to
devote its entire time to carrying out its obligations hereunder. For greater certainty, it is expressly acknowledged that the
entering into of this Agreement by the Trustee in its capacity as trustee of the Trust, and the performance by the Trustee or the
Trust of its obligations hereunder in compliance with the express terms of this Agreement shall be deemed to be in the best interests
of the Trust and the Beneficiaries and shall be deemed to have satisfied the foregoing standard of care.

 

    - 10 -

     

    

 

		Section
                            4.02	Limitation of Liability of Trustee

 

(1)         The
Trustee, in doing anything or permitting anything to be done in accordance with the terms of this Agreement is, and will be conclusively
deemed to be, acting solely as trustee of the Trust and not in any other capacity. Any and all of the representations, warranties,
undertakings, covenants, indemnities, agreements and other obligations made on the part of the Trustee therein are made and intended
not as personal representations, warranties, undertakings, covenants, indemnities, agreements and other obligations by the Trustee
or for the purpose or with the intention of binding the Trustee in its personal capacity, but are made and intended for the purpose
of binding only the property and assets of the Trust or a specific portion thereof. The Trustee will not be subject to any liability
whatsoever, in tort, contract or otherwise, in connection with the Trust Property or the Trust Activities, to the Beneficiaries
or to any other Person, for any action taken or permitted by it to be taken, or for its failure to take any action, in each case
in accordance with the terms of this Agreement. The Trustee will not be subject to any liability for any claims, demands, losses,
actions, causes of action, costs, charges, debts, expenses, damages, judgments, liabilities or obligations whatsoever against or
with respect to the Trust or the Trustee, arising out of anything done, omitted to be done or permitted to be done by it pursuant
to the terms of this Agreement and resort will be had solely to the Trust Property for the payment or performance thereof. No property
or assets of the Trustee, owned in its personal capacity or otherwise, will be subject to levy, execution or other enforcement
procedure with regard to any obligations under this Agreement. No recourse may be had or taken, directly or indirectly, against
the Trustee in its personal capacity or against any incorporator, director, officer, employee or agent of the Trustee or any predecessor
or successor of the Trustee. The foregoing limitations of this Section 4.02 will not apply in respect of any claim, demand,
loss, action, cause of action, cost, charge, debt, expense, damage, judgment, liability or obligation whatsoever arising from or
in connection with bad faith, wilful misconduct, gross negligence, fraud or the failure to comply with the standard of care referred
to in Section 4.01 by the Trustee or any incorporator, director, officer, employee or agent of the Trustee. In no event shall
the Trustee be liable for any consequential or special damages, indirect, incidental, exemplary, aggravated or punitive loss or
damages including but not limited to loss of reputation, goodwill or business. The Trustee shall not be liable or responsible for
loss or damage of any nature whatsoever resulting from official action, war or threat of war, insurrection or civil disturbances,
interruptions in postal, telephone, internet, email, fax or other electronic communication systems or power supply, the failure
of any third party to fulfil its obligations under any agreement with the Trust or New Transit or the Partnership, or any other
factor beyond the Trustee’s control which obstructs, affects, prohibits or delays the Trustee, its directors, officers, employees
or agents in carrying out the responsibilities provided for herein, in whole or in part. The Trustee shall have no duty or responsibility
to fulfil, observe or perform any of the powers or responsibilities of New Transit or the Partnership or any other person except
as are stipulated under this Agreement or the Trust Agreement.

 

	Section 4.03	Indemnification of the Trust and the Trustee

 

(1)          New
Transit and the Partnership jointly and severally agree to indemnify and hold harmless the Trust and the Trustee, in its capacity
as trustee of the Trust, and each of its directors, officers, employees and agents appointed and acting in accordance with this
Agreement and the Trust Agreement (collectively, the “Indemnified Parties”) from and against any and all claims,
demands, losses, actions, causes of action, costs, charges, debts, expenses, damages, liabilities or obligations whatsoever including,
without limitation, reasonable legal fees and disbursements and costs and expenses incurred in connection with the enforcement
of this indemnity, which may be imposed on, incurred by or assessed against the Indemnified Parties which, without fraud, gross
negligence, wilful misconduct, bad faith or the failure to comply with the standard of care referred to in Section 4.01 on
the part of the Indemnified Parties, may be paid, incurred or suffered by the Indemnified Party by reason or as a result of its
compliance with its duties set forth in this Agreement, the Trust Agreement or any written or oral instruction delivered to the
Trustee by New Transit, the Tabulation Agent or the Partnership pursuant hereto.

 

    - 11 -

     

    

 

(2)          In
no case shall New Transit or the Partnership be liable under this Article 4 unless New Transit and the Partnership shall be
notified by the Trustee of the assertion of a claim or of any action commenced against the Indemnified Parties as soon as reasonably
practicable after any of the Indemnified Parties shall have received a written assertion of such a claim. New Transit and the Partnership
shall be entitled to participate at their own expense in the defence and, if New Transit and the Partnership so elect at any time
after receipt of such notice, subject to (ii) below, either of them may assume the defence of any suit brought to enforce
any such claim. The Trustee shall have the right to employ separate counsel in any such suit and participate in the defence thereof,
but the fees and expenses of such counsel shall be at the expense of the Trustee unless: (i) the employment of such counsel
has been expressly authorized by New Transit or the Partnership, such authorization not to be unreasonably withheld; or (ii) the
named parties to any such suit include both the Trustee and New Transit or the Partnership and the Trustee shall have been advised
by counsel acceptable to New Transit or the Partnership that there may be one or more legal defences available to the Trustee that
are different from or in addition to those available to New Transit or the Partnership and that, in the judgment of such counsel,
would present a conflict of interest were a joint representation to be undertaken (in which case New Transit and the Partnership
shall not have the right to assume the defence of such suit on behalf of the Trustee but shall be liable to pay the reasonable
fees and expenses of counsel for the Trustee). . The foregoing indemnities will survive the removal or resignation of the Trustee
or the termination of this Agreement and the termination of the Trust. Each of the Indemnified Persons other than the Trustee or
the Trust is a third party beneficiary of the foregoing indemnity and the rights to indemnification of such Indemnified Parties
are held in trust by the Trustee on behalf of such Indemnified Parties.

 

Article Five
- TrustEE successors

 

	 	Section 5.01	Successor Trustee

 

The Trust shall require that any
successor trustee to the Trustee appointed as provided under the Trust Agreement shall execute, acknowledge and deliver to New
Transit, the Partnership and to its predecessor trustee an instrument accepting the rights, powers, duties and obligations of its
predecessor under this Agreement. Thereupon, the resignation or removal of the predecessor trustee shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations
of its predecessor under this Agreement, with the like effect as if an original signatory to this Agreement. Notwithstanding the
above, any company into which the Trustee may be merged or with which it may be consolidated or amalgamated, any company resulting
from any merger, consolidation or amalgamation to which the Trustee shall be a party or any company to which the Trustee may transfer
all or substantially all of its corporate trust business shall be a successor Trustee under this Agreement without the execution
of any instrument or any further act; provided that such successor Trustee shall be a corporation qualified to carry on a trust
business as contemplated hereby in each of the Provinces of Canada, shall not be controlled by a non-resident person or group of
non-resident persons for the purposes of the Income Tax Act (Canada) and shall not have a material conflict of interest
in its role as a fiduciary under the Trust Agreement.

 

    - 12 -

     

    

 

Article Six
- New Transit Successors

 

		Section
                            6.01	Successor in the Event of Combination, etc.

 

In connection with any transaction
(whether by way of reconstruction, reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale, lease or otherwise)
whereby all or substantially all of the undertaking, property and assets of New Transit would become the property of any other
Person or, in the case of an amalgamation, arrangement or merger, of the continuing corporation resulting therefrom, either (i) such
other Person or continuing corporation (herein called the “New Transit Successor”), by operation of law, shall
become, without more, bound by the terms and provisions of this Agreement, or (ii) if not so bound, shall execute, prior to
or contemporaneously with the consummation of such transaction, an assignment and assumption agreement by the New Transit Successor
of liability for all monies payable and property deliverable hereunder and the covenant of such New Transit Successor to pay and
deliver or cause to be delivered the same and its agreement to observe and perform all the covenants and obligations of New Transit
under this Agreement.

 

		Section
                            6.02	Wholly-Owned Subsidiaries

 

Nothing in this Article 6
shall be construed as applying to the amalgamation or merger of any wholly-owned direct or indirect subsidiary of New Transit with
or into New Transit or the winding-up, liquidation or dissolution of any wholly-owned direct or indirect subsidiary of New Transit
(other than the Partnership) provided that all of the assets of such subsidiary are transferred to New Transit or another wholly-owned
direct or indirect subsidiary of New Transit or any other distribution of the assets of any wholly-owned direct or indirect subsidiary
of New Transit among its shareholders, and any such transactions are expressly permitted by this Article 6.

 

Article Seven
- Amendments

 

		Section
                            7.01	Amendments, Modifications, etc.

 

Except as set forth in Section 7.03,
this Agreement may not be amended or modified except by an agreement in writing executed by:

 

(1)          New
Transit;

 

(2)          the
Partnership;

 

(3)          the
Trust; it being understood and agreed that the Trustee, on behalf of the Trust, shall execute and deliver an amending agreement
to this Agreement or other instruments supplemental hereto to give effect to any such amendment or modification proposed by New
Transit and the Partnership, provided that such agreement does not adversely affect the rights, duties, liabilities or immunities
of the Trustee hereunder;

 

    - 13 -

     

    

 

subject to the prior approval
of:

 

		(i)	solely in the event of amendments or modifications in respect of one or more classes of Special Voting Shares, including the
related Voting Rights, approved by the Unit Holders in accordance with and meeting the requirements of the Section [14.1]
of, and Article [5] of Schedule A to, the LPA of which the Partnership will provide the Trustee with an Officer’s Certificate
certifying receipt of the required approval; and

 

		(ii)	solely in the event of amendments or modifications in respect of the Golden Share, including the related Voting Rights, approved
by each of the following voting as a separate class: (a) the holders of Class A Units and Class A Common Shares,
and (b) the holders of all other Units and Common Shares, all in accordance with and meeting the requirements of the Articles
and Section [14.1] of, and Article [5] of Schedule A to, the LPA of which New Transit will provide the Trustee with an
Officer’s Certificate certifying receipt of the required approval.

 

		Section
                            7.02	Meeting to Consider Amendments

 

The Partnership, at the request
of New Transit in its capacity as General Partner, shall call a meeting or meetings of the applicable Unit Holders for the purpose
of considering any proposed amendment or modification requiring their approval pursuant hereto. Any such meeting or meetings shall
be called and held in accordance with the LPA and all applicable laws.

 

		Section
                            7.03	Changes in Capital of New Transit and the Partnership

 

At all times after the occurrence
of any event contemplated pursuant to Section [3.5] of the LPA or otherwise, as a result of which Common Shares, Special Voting
Shares, the Golden Share or the Exchangeable Units or all are in any way changed, this Agreement shall forthwith be amended and
modified as necessary in order that it shall apply with full force and effect, mutatis mutandis, to all new securities into
which Common Shares, Special Voting Shares, the Golden Share or the Exchangeable Units or all are so changed and the parties hereto
shall execute and deliver an amending agreement to this Agreement giving effect to and evidencing such necessary amendments and
modifications.

 

Article Eight
- Termination

 

		Section
                            8.01	Term

 

This Agreement may be terminated
by mutual written consent of New Transit and the Partnership, so long as (a) either (i) no Exchangeable Units are outstanding
or (ii) such termination is approved by the Unit Holders in accordance with Section [14.1] of, and Article [5]
of Schedule A to, the LPA and (b) no Golden Share is outstanding. Notice of termination will be given by New Transit
and the Partnership to the Trustee in either circumstance under this Section 8.01.

 

		Section
                            8.02	Survival of Agreement

 

The provisions of Article 4
shall survive any termination of this Agreement.

 

    - 14 -

     

    

 

Article Nine
- General

 

		Section
                            9.01	Waivers

 

No waiver of any provision of
this Agreement shall be binding on any party unless consented to in writing by such party. No waiver of any provision of this Agreement
shall constitute a waiver of any other provision, nor shall any waiver of any provision of this Agreement constitute a continuing
waiver unless otherwise expressly provided.

 

		Section
                            9.02	Assignment

 

No party may assign any of its
rights or benefits under this Agreement, or delegate any of its duties or obligations hereunder, except with the prior written
consent of the other parties hereto.

 

		Section
                            9.03	Successors and Assigns

 

This Agreement shall enure to
the benefit of and shall be binding on and enforceable by and against the parties hereto and their respective successors or heirs,
executors, administrators and other legal personal representatives, and permitted assigns.

 

		Section
                            9.04	Notices

 

(1)         Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered in person,
transmitted by fax or e-mail or similar means of recorded electronic communication or sent by registered mail, charges prepaid,
addressed as follows:

 

		(a)	if to New Transit or the Partnership, at:

 

	 	Telesat Corporation
	 	[●]
	 	Attention:	[●]
	 	Fax No.:	[●]
	 	Email:	[●]

 

		(b)	if to the Trust, at:

 

	 	TSX Trust Company, as trustee of the New Transit
Trust
	 	301-100 Adelaide Street W.,
	 	Toronto, Ontairo M5H 4H1
	 	Attention:	Vice
President, Trust Services
	 	Email:	tmxestaff-corporatetrust@tmx.com

 

(2)          Any
such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted
(or, if such day is not a Business Day or if delivery or transmission is made on a Business Day after 5:00 p.m. at the place
of receipt, then on the next following Business Day) or, if mailed, on the third Business Day following the date of mailing; provided,
however, that if at the time of mailing or within three Business Days thereafter there is or occurs a labour dispute or other event
which might reasonably be expected to disrupt the delivery of documents by mail, any notice or other communication hereunder shall
be delivered or transmitted by means of recorded electronic communication as aforesaid.

 

    - 15 -

     

    

 

(3)         Any
party may at any time change its address for service from time to time by giving notice to the other parties in accordance with
this Section 9.04.

 

		Section
                            9.05	Force Majeure

 

Except for the payment obligations
of New Transit and the Partnership contained herein, none of the parties shall be liable to the other, or held in breach of this
Agreement, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act
of God, strikes, lockouts, riots, terrorism, acts of war, epidemics, governmental action or judicial order, earthquakes, or any
other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures).
Performance times under this Agreement shall be extended for a period of time equivalent to the time lost because of any delay
that is excusable under this Section 9.05.

 

		Section
                            9.06	Counterparts

 

This Agreement and all documents
contemplated by or delivered under or in connection with this Agreement may be executed in any number of counterparts and delivered
by means of facsimile, portable document format (PDF) or other electronic format, with the same effect as if all parties had signed
and delivered the same document, and all counterparts shall be construed together to be an original and will constitute one and
the same agreement.

 

[Remainder of page intentionally
left blank.]

 

    - 16 -

     

    

 

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

 

	 	TELESAT CORPORATION
	 	 
	 	 
	 	by	 
	 	 	Name:	             
	 	 	Title:	 

 

	 	TELESAT PARTNERSHIP LP, by its general partner, TELESAT CORPORATION
	 	 
	 	by	 
	 	 	Name:	                
	 	 	Title:	 

 

	 	TSX Trust Company, in its capacity as trustee of the [●] Trust
	 	 
	 	by	 
	 	 	Name:	         
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	by	 
	 	 	Name:	 
	 	 	Title:	 

 

    - 17 -

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