1. Group Tax Free Savings Account (TFSA) for Telesat

2. Agenda  Background and Telesat HR policy  Your TFSA  Choosing your investments  Support  Next Steps

3. Telesat TFSA Background and Framework  BCE ESP ended November 1, 2007  Telesat elected to replace BCE ESP with a Group TFSA  BCE ESP participants who were contributing at the time that benefit ceased are eligible  Plan is non-contributory; optional contributions permitted

4. Telesat TFSA Background and Framework  Telesat contributions:  Equal to contribution level in BCE ESP at time benefit ended  Subject to achievement of EBITDA for previous year and active employment status at time Telesat contribution made to Group TFSA  Calculated based on period of active employment during previous calendar year  Taxable income reported on T4

5. TFSAs  "After" tax dollars  Contribution limit of $5,000 per year  Carried forward indefinitely  Tax-free growth  Contributions are not tax deductible  Withdrawals are tax-free

6. Annual Contribution Limit  All Canadians 18 or older get $5,000 annual TFSA contribution limit  Annual limit not tied to income  Annual limit increases based on inflation rate  Indexing is constantly applied to initial $5,000  Attribution rules on earned income do not apply

7. Contribution Limits Contribution Room Example/Carry Forward Year 2009Maximum contribution limit Your contribution Carry forward to 2010 $5,000 - 3,000 $2,000 2010Maximum contribution limit Carry forward from 2009 Your contribution Carry forward to 2011 $5,000 + 2,000 - 4,000 $3,000 2011Maximum contribution limit Carry forward from 2010 Your contribution Carry forward to 2012 $5,000 3,000 - 4,000 $4,000 $7,000 $8,000

8. Re-Contribution Example Year 2010Account balance Withdrawal New account balance $10,000 - 8,000 $2,000 2011Account balance Maximum contribution made Re-contribution from 2010 made New account balance $2,000 5,000 8,000 $15,000 $13,000

9. TFSA vs. RRSP TFSARRSP Contributions  "After" tax dollars  Not tax deductible  Don't need employment earnings  "Before" tax dollars  Tax deductible  Contributions based on employment earnings Earnings  Exempt from tax Withdrawals  Not considered income - exempt from tax  Don't reduce government benefits  Can re-contribute  Considered income – taxable  Reduce government benefits  Contribution room is lost

10. TFSA vs. RRSP TFSARRSP Collateral for a loan  Can assign  Cannot assign Maximum age  Can contribute after age 71  Cannot contribute after age 71  Must be collapsed at age 71 At death  Transfer to any beneficiary tax-free  Can transfer to spouse tax-free  Tax deducted if beneficiary is other than spouse

11. TFSA vs. RRSP Constant Marginal Tax Rate no difference!

12. Contributions You Optional Up to your limit Transfers-in from other plans Your employer Equivalent to employer contribution under BCE ESP at time of termination of benefit Not subject to employee contribution to Group TFSA

13. Take Advantage of Your Plan  Employer contributions (not subject to employee contribution)  Convenient  No sales charges  Lower fees  Admin fee – $5 a month  Investment fees – 0.12% to 0.85%  Transfers-in from other plans permitted

14. Fees 1234 Annual contribution$2,5002,500$5,000 Annual rate of return6%7%6%7% Account balance at retirement (age 65) With $5 monthly fee$113,612$126,793$211,894$236,856 With 0.65% mgmt fee$107,433$118,704$198,424$219,553 $ Difference with $5 fee+$6,179+ $8,089 + $13,470+ $17,303 % Difference with $5 fee+ 5.8%+ 6.8% + 7.9% Assumptions  Age at hire – 45  Initial balance – 0  Annual contribution - $5,000  Annual inflation – 2%  Salary increase – 2.0%

15. Choosing Your Investments

16. Understanding Investing ReturnRisk Money market Fixed income Equity Balanced

17. Choosing Your Investments ReturnRisk Retirement Horizon Age 35 Age 45 Age 55 Age 65

18. Choosing Your Investments  Determine your investor profile  Choose your investments  Fill in the questionnaire

19. Choosing Your Investments Select your own combination of funds  Various investment options including 6 multi- management funds  Requires more investment knowledge and regular monitoring 

20. Return Risk Fixed income Equity 20/80 35/65 50/50 65/35 80/20 100 Multi-Management Funds

21. Fund Information – www.dfs.ca

22. Choosing Your Investments Select a lifecycle path  Three lifecycle paths available  Based on your age and risk tolerance  Asset mix automatically changes, reducing risk over time Select your own combination of funds  Various investment options including 6 multi- management funds  Requires more investment knowledge and regular monitoring 

23. Determine Your Lifecycle Path Secure Moderate Secure Path BalancedBalanced Path Growth Energetic Speculative Growth Path Investor ProfileLifecycle Path

24. Select a Lifecycle Path Your investor profile Your age Your path towards achievement of personal financial objectives Secure Path As you age, the asset allocation of the path becomes more conservative

25. Support

26. Customer Care Centre  Human touch services  Specialized agents  Transactional services  Changes to your plan  Assistance on choice of investments

27. Participant Website Array of tools to help you plan your future financial security www.dfs.ca/participant  Simple and complete transactional services  Information on your account  Changes to your plan

28. On Target Retirement Planning Tool

29. Your Statement  Account summary  Asset allocation  Investment directions  Personalized rate of return  Available online

30. Your Next Steps  Read through your Setting Sail for the Future kit  Determine your investor profile, consult your financial advisor as appropriate and make your investment choices  Ask questions  Complete the enrolment form  Send the form to Telesat Human Resources by November 1st 2010.

31. Thank you!