FINAL
Loral Space
Management Incentive Bonus Program
(Adopted as of December 17, 2008)
This document reflects the provisions
of the Loral Space Management Incentive Bonus (“MIB”)
program, and is established effective January 1, 2008 by Loral
Space & Communications Inc. (“Loral”), the program
sponsor. The MIB program provides select employees of Loral and
other affiliated employers who participate in the program with the
opportunity to earn annual bonuses based on performance during each
of Loral’s fiscal years (each a “Bonus
Year”).
The MIB program may be amended,
suspended or terminated by Loral at any time. Any participating
employer may withdraw from the program at any time.
Each Bonus Year that the MIB program
is effective, the Compensation Committee of the Board of Directors
of Loral (the “Compensation Committee”), with the
advice of the CEO of Loral (the “CEO”), will establish
the eligibility criteria, the maximum bonus amount available, bonus
levels for all participants and the annual bonus performance
targets, if any, that will apply for that Bonus Year. All or part
of any bonus may be discretionary or based on individual
performance. Participation in the MIB program each Bonus Year is at
the discretion of the Compensation Committee or the CEO. Employees
who are chosen to participate in the MIB program for any Bonus Year
will be notified of their participation and the performance targets
for the Bonus Year, if any. This process may occur at any time.
Bonus payments hereunder are neither mandatory nor guaranteed and
no individual has any vested rights under the MIB program.
At or following the end of each Bonus
Year, the Compensation Committee and/or the CEO, depending upon the
seniority level of the participant, will determine the degree to
which the performance targets for the Bonus Year, if any, have been
achieved, evaluate the performance of each participant and
determine the bonus payments, if any, to be paid to participants.
The Compensation Committee and the CEO may delegate their authority
to determine bonuses, with respect to non-corporate office
participants, to one or
