Document:

Exhibit 10.34

 

CERTAIN PORTIONS OF THIS EXHIBIT
HAVE BEEN OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL

“XXX” HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED.

 

Term Sheet for Restoration
of Services 

 

 

1.                             No moves.  Intelsat won’t move or offer
alternative capacity to any of its customers already transmitting or assigned
to NSS-5 satellite (or the one Ku band transponder on NSS-6 being used by XXX)
(collectively, the “NSS Satellites”) as part of the IS-804 restoration.

 

2.                             Dust settles. 
Attached hereto is a chart showing all of the services for which
Intelsat anticipates requiring capacity from NSS Satellites as part of the
IS-804 restoration (the “Initial Chart”). XXX. 
The Initial Chart shall be finalized by Intelsat and provided by
Intelsat to NSS no later than the close of business, February 21, 2005,
subject to the following limitations:  (i) the
changes made shall not increase or decrease by more than 5 % any of the
following: (A) the amount of capacity provided; (B) 2005 contracted
revenues; or (C) backlog; and (ii) NSS is not obligated to hold
available any capacity that is not already identified as in use on the Initial
Chart; (iii) service contracts shown on the Initial Chart shall not be
adjusted; and (iv) Intelsat shall provide NSS with a list of non-standard
contractual rights that could affect backlog by March 21, 2005.    The finalized chart or, if no finalized
chart is submitted, the Initial Chart (then, in either case, the “Final Chart”)
shall then reflect the contractual commitment of Intelsat to take the specified
capacity, effective as of January 16, 2005.

 

3.                             No broader agency, or resale right. 
Terms are for restoration of 804 customers only, exact requirements to
be determined as above.

 

4.                             Revenue share.  XXX%
to NSS, XXX% to Intelsat for revenues received by Intelsat for services
originally on the IS-804 and restored on the NSS Satellites, with the following
qualifications.

 

i.                                Revenue share is based upon gross revenues
paid to and collected by Intelsat (or an affiliate of Intelsat) from its
customers in consideration for the sale, lease, license or any other form of
distribution of space segment capacity or services including with respect to any
cancellation payments made pursuant thereto.

 

ii.                             XXX

 

iii.                          NSS shall not be obligated to grant Intelsat
outage credits.  Intelsat may provide
interruption credits to its customers. 
To the extent that per its relevant 
agreement, Intelsat grants credits it shall be reflected in revenues
subject to the revenue share.

 

iv.                         XXX

 

v.                            XXX

 

 

5.                             Renewals and Expansion.

 

i.                                The XXX% to NSS/XXX% to Intelsat revenue
share continues to apply to any renewals.

 

ii.                             NSS will honor existing renewal rights, to be
specified in the service rights identified by Intelsat in the Final Chart.

 

iii.                          Nonobligatory renewals shall be offered to
NSS; NSS choice whether to accept.

 

iv.                         If end-user customer goes directly to NSS for
renewal, NSS may agree, but revenue share continues to apply.

 

v.                            Renewal rights apply to contracts serving
end-user-customer requirement in existing or different form, but only to the
existing amount of capacity provided. 
Each party is free to offer end user customers additional capacity, new
service offerings, without sharing the revenue with the other party.

 

vi.                         In cases where an end-user customer may wish
to have greater capacity, either party may provide, but to the extent that such
greater capacity replaces the existing capacity provided herein, the party
providing the replacement is obligated to the other party for that party’s
portion of a revenue share.  If this
occurs during the original customer-contract period, that share shall be based
upon the rate specified in the original customer contract.  After the original period the share shall be
based proportionately in terms of the capacity provided and the rent received
therefore.  XXX.

 

6.                             NSS’ Capacity Restoration.

 

i.                                In the event of a “Substantial Failure” of
any of NSS’ satellites NSS may, if it is interested in obtaining restoration
capacity from Intelsat for the services lost, notify Intelsat within
forty-eight (48) hours of the time that a determination is made by NSS that
such a failure has occurred (the “Failure Notice”), providing Intelsat with a
list of the technical requirements of the services it wishes Intelsat to
restore (the “NSS Services”), and provide Intelsat with a right of first
refusal to meet such technical requirements. 
Intelsat may agree or refuse to restore such services, in whole or in
part, at its discretion and will notify NSS of its decision within forty-eight
(48) hours of the Failure Notice.

 

ii.          If Intelsat agrees to restore any NSS
Services, it shall provide NSS with suitable restoration capacity, in
accordance with the technical parameters set out in the Failure Notice.  If Intelsat restores any of the services
included in the Failure Notice to any of NSS’ customers (other than to restore
its Intelsat-804 customers in the event of an NSS-5 satellite failure where NSS
cannot otherwise provide restoration), whether by (A) contracting with
NSS, or (B) contracting with such customers directly, then the terms of
Sections 3, 4, and 5 of this term sheet shall apply to the provision of such
restoration capacity, mutatis mutandis, save that,

 

 

             as to such provision, Intelsat shall be entitled to XXX%
of the collected revenues and NSS shall be entitled to XXX%.

 

iii.         If within seven (7) days of Intelsat’s
reply to the Failure Notice, NSS regains control over the failed capacity on
its satellite, it may, by giving Intelsat written notice, remove the NSS
Services from Intelsat’s capacity and the revenue share shall cease to
apply.  In such event, Intelsat agrees to
work with NSS in good faith to transition customers restored on Intelsat
satellites back to failed NSS’ capacity

 

iv.                         XXX

 

v.                            As used above, “Substantial Failure” means
the failure or degradation of 8 transponders or more such that they cannot
support applicable contracts.  For the
avoidance of doubt, the provisions of this Section 6 apply Substantial
Failure by Substantial Failure and are not limited to a single event.

 

7.                             Binding Term Sheet.  Once
executed, this term sheet shall constitute a binding agreement of the
parties.  The parties shall negotiate in
good faith to conclude and execute definitive documentation of the agreements
reflected in this term sheet no later than March 14, 2005, with each party
using all reasonable efforts to complete before that date; provided that the
failure to agree upon such documentation shall not void this term sheet, which
shall then be implemented by each party in good faith. This term sheet,
definitive documentation, and all leases made under this term sheet or the
definitive documentation shall be subject to English law.

 

IN WITNESS WHEREOF, each of
the parties hereto has duly executed and delivered this term sheet effective on
February 17th, 2005.

 

 

	
  INTELSAT GLOBAL SALES &
  MARKETING LTD

  	
   

  	
  NEW SKIES SATELLITES B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Andrew Stimson

  	
   

  	
  By:

  	
  /s/ Daniel S. Goldberg

  
	
  Name:

  	
  Andrew Stimson

  	
   

  	
  Name:

  	
  Daniel S. Goldberg

  
	
  Title:

  	
  Director

  	
   

  	
  Title:

  	
  C.E.O.Exhibit 10.35

 

 

 

CERTAIN PORTIONS OF THIS
EXHIBIT HAVE BEEN OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL “XXX”
HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED.

 

 

AMENDMENT NUMBER 4

 

TO THE NSS-8 SPACECRAFT AND ASSOCIATED
EQUIPMENT AND SERVICES

CONTRACT (NSS-20-03-01)

 

BETWEEN

 

NEW SKIES SATELLITES B.V.

 

and

 

BOEING SATELLITE SYSTEMS INTERNATIONAL, INC.

 

 

This Amendment Number 4 to the
NSS-8 Spacecraft and Associated Equipment and Services Contract Number
NSS-20-03-01 dated and signed on 21 March 2001, as amended by Amendment Number
1 dated 15 January 2002, by Amendment Number 2 dated 12 February 2003, by
Amendment Number 3 dated 6 May 2003 and by a letter agreement dated 21 January
2004 (as so amended, hereinafter referred to as the “Original Contract”) is
made on this 22nd day of February, 2005 by and between:

 

NEW SKIES SATELLITES B.V.
(successor to New Skies Satellites N.V.), a Dutch corporation, with its principal
place of business located at Rooseveltplantsoen #4, 2517KR The Hague, The
Netherlands (hereinafter referred to as “NSS”); and

 

BOEING SATELLITE SYSTEMS
INTERNATIONAL, INC., a Delaware corporation, with its principal place of
business located at 2260 East Imperial Highway, El Segundo, CA, U.S.A.
(hereinafter referred to as “Contractor”).

 

 

WHEREAS:  NSS and Contractor have previously entered
into the Original Contract for provision of the NSS-8 communications satellite
and other items, and

 

WHEREAS:  NSS and Contractor entered into a Binding
Memorandum of Understanding dated 21 January 2005 (“MOU”) to modify certain
additional Original Contract Articles and Original Contract Exhibits, and

 

WHEREAS:  NSS and Contractor have agreed to substitute
for the Original Contract the attached Composite Compiled Satellite Contract
incorporating therein all previous amendments as well as the terms of the MOU,

 

NOW THEREFORE, in consideration
of the agreement between the Parties, the Parties agree as follows:

 

1.              The
Original Contract is amended, replaced and superseded in its entirety by the
Composite Compiled Satellite Contract attached hereto and the Exhibits to the
Original Contract are hereby amended as follows:

·        
Exhibit A, Spacecraft Performance
Specifications:  No Change

·        
Exhibit B, Statement of Work:  Amended and attached hereto

·        
Exhibit C, Product Assurance
Plan:  No Change

·        
Exhibit D, Test Plan:  Amended to include Annex 1, attached hereto

·        
Exhibit E, Milestone Payment
Plan:  Deleted and replaced in its
entirety with a new Exhibit E, Escrow Agreement, dated February 22, 2005 and
attached hereto

·        
Exhibit F, Criteria for
Conditional Acceptance:  Replaced in its
entirety with the revised Exhibit F, Method of Adjustment to Total Price, dated
February 2005 and attached hereto

·        
Exhibit G, Export Laws Compliance
Program:  No Change

·        
Exhibit H, Maximum Termination
Liability:  Deleted and replaced in its
entirety with a new Exhibit H, Agreement of Non-Possessory Pledge of Assets,
dated February 22, 2005 and attached hereto

·        
Exhibit I, Reserved:  Deleted and replaced in its entirety with a
new Exhibit I, Agreement of Undisclosed Pledge, dated February 22, 2005 and
attached hereto

 

2

 

·        
Exhibit J, Bill of Sale:  No Change

·        
XXX: Deleted

·        
Exhibit L, Launch Services XXX:   No Change
(except as may be made pursuant to Paragraph 3 below)

·        
Exhibit M, XXX
Spacecraft Baseline Specifications: 
Deleted and replaced in its entirety with a new Exhibit M, Pending RDWs,
dated February 22, 2005 and attached hereto

 

For clarity and continuity, the Contract pages have been marked
“Amendment 4” and “February 2005” in the upper right hand corner.

 

                 2.              The Parties’
rights and obligations shall henceforth be governed by the Composite Compiled
Satellite Contract.  The Parties’
performance under the terms of the Composite Compiled Satellite Contract shall
fully satisfy and discharge their respective rights, claims and obligations
under the Original Contract relating to the XXX,
and all legal and equitable rights, obligations and claims arising or existing
prior to the date of execution of this Amendment Number 4 shall be relinquished
and discharged, as follows:  (i) XXX and (ii) upon the occurrence of (i), Contractor
shall be deemed to have relinquished any claims by Contractor that XXX (as set forth in the Composite Compiled Satellite
Contract) or any other terms of the Original Contract or of the Composite
Compiled Satellite Contract have been modified by any waiver, agreement or
otherwise prior to the date of this Amendment Number 4 (unless otherwise
specified in Paragraph 3 below).  Unless
and until the events described in (i) and (ii) occur, the

 

3

 

rights, claims and obligations of the Parties shall be as currently
specified in the Original Contract.

 

                 3.              The Parties shall
use reasonable commercial efforts to conclude the following additional matters
within the thirty (30) days following the execution date of this Amendment to
do the following:

 

                                 a.     To update Exhibit D, Test Plan, to
incorporate the items included in Annex 1 thereto;

b.     To
review and, as appropriate in light of the amended terms regarding Launch in
the Composite Compiled Satellite Contract, delete or integrate into the
Composite Compiled Satellite Contract the terms and conditions currently set
forth in Exhibit L, Launch Services XXX.

c.     To
resolve XXX regarding whether the Warranty for
the Spacecraft as set forth in Article 15 of the Original Contract shall apply
to the Spacecraft XXX, in each
case in light of the terms and intent of the Original Contract and the
MOU.  XXX

 

                 4.              This Amendment
Number 4 may be signed in separate counterparts, each of which, together, will
constitute one agreement between the Parties.

 

4

 

IN WITNESS WHEREOF, this
Amendment Number 4 has been duly executed by the Parties on the date stated
above.

 

	
  NEW SKIES SATELLITES B.V.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (signed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (printed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NEW SKIES SATELLITES B.V.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (signed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (printed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BOEING SATELLITE SYSTEMS INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (signed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (printed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

5

 

 

 

 

COMPOSITE
COMPILED SATELLITE CONTRACT

 

 

between

 

 

NEW SKIES
SATELLITES B.V.

Rooseveltplantsoen
# 4

2517KR The
Hague

The
Netherlands

 

 

and

 

 

BOEING
SATELLITE SYSTEMS INTERNATIONAL, INC.

2260 East
Imperial Highway

El Segundo,
CA

U.S.A.

 

 

for

 

 

NSS-8
Spacecraft

and
Associated Equipment and Services

 

 

Contract
No.  NSS-20-03-01

 

 

Date:  March 21, 2001

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1.
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.
  SCOPE OF WORK/ORDER OF PRECEDENCE

  	
   

  
	
  A.

  	
  Scope
  of Work

  	
   

  
	
  B.

  	
  Order of Precedence

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.
  ITEMS TO BE DELIVERED AND DELIVERY SCHEDULE

  	
   

  
	
  A.

  	
  Items/Promised Delivery Dates

  	
   

  
	
  B.

  	
  Time
  of Essence

  	
   

  
	
  C.

  	
  Contractor Responsibility

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4. PRICES

  	
   

  
	
  A.

  	
  Total
  Price

  	
   

  
	
  B.

  	
  Taxes

  	
   

  
	
  C.

  	
  Adjustments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.
  METHOD OF PAYMENT

  	
   

  
	
  A.

  	
  Milestone Payment Refund

  	
   

  
	
  B.

  	
  Escrow

  	
   

  
	
  C.

  	
  Payment of Total Price

  	
   

  
	
  D.

  	
  Interest

  	
   

  
	
  E.

  	
  Disputed Payments

  	
   

  
	
  F.

  	
  Currency/Place of Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.
  DELIVERY, TITLE AND RISK OF LOSS OR DAMAGE

  	
   

  
	
  A.

  	
  Spacecraft Delivery

  	
   

  
	
  B.

  	
  Delivery of Other Items

  	
   

  
	
  C.

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.
  CERTIFICATION, INSPECTION, ACCEPTANCE, WAIVERS

  	
   

  
	
  A.

  	
  General Requirements

  	
   

  
	
  B.

  	
  Waivers

  	
   

  
	
  C.

  	
  Inspections

  	
   

  
	
  D.

  	
  Spacecraft
  Acceptance Procedure

  	
   

  
	
  E.

  	
  Acceptance
  Procedures for Other Items

  	
   

  
	
  F.

  	
  Remedy of Defects

  	
   

  
	
  G.

  	
  Post Acceptance Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.
  LAUNCH SERVICES PROCUREMENT

  	
   

  

 

i

 

	
  ARTICLE 9.
  INSURANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.
  SUBCONTRACTS

  	
   

  
	
  A.

  	
  Subcontracts

  	
   

  
	
  B.

  	
  Key Subcontracts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.
  PROPERTY ACCOUNTING

  	
   

  
	
  A.

  	
  Identification and
  Control

  	
   

  
	
  B.

  	
  Subcontractors

  	
   

  
	
  C.

  	
  Inventory

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.
  CHANGES REQUESTED BY CONTRACTOR OR NSS

  	
   

  
	
  A.

  	
  Contract Change Notice

  	
   

  
	
  B.

  	
  Acceptance of Change

  	
   

  
	
  C.

  	
  Non
  Refusal

  	
   

  
	
  D.

  	
  Price of Changes

  	
   

  
	
  E.

  	
  Compressed Time Periods

  	
   

  
	
  F.

  	
  Changes To Meet
  Specifications

  	
   

  
	
  G.

  	
  Pending RDWs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13.
  CONTRACT TECHNOLOGY

  	
   

  
	
  A.

  	
  Disclosure of
  Contract Technology

  	
   

  
	
  B.

  	
  Rights Granted
  in Contract Technology

  	
   

  
	
  C.

  	
  Limitations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14.
  RIGHT OF ACCESS, REPORTS, TESTING, MONITORING

  	
   

  
	
  A.

  	
  Access

  	
   

  
	
  B.

  	
  Reports

  	
   

  
	
  C.

  	
  Performance Testing

  	
   

  
	
  D.

  	
  Monitoring

  	
   

  
	
  E.

  	
  Export Laws Compliance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15. WARRANTY

  	
   

  
	
  A.

  	
  Warranty

  	
   

  
	
  B.

  	
  Remedies

  	
   

  
	
  C.

  	
  Warranty Period

  	
   

  
	
  D.

  	
  Disclaimer

  	
   

  
	
  E.

  	
  Not Exclusive Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16.
  DEFICIENCIES NOTED IN OTHER SPACECRAFT

  	
   

  
	
  A.

  	
  Qualification Heritage

  	
   

  
	
  B.

  	
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17.
  TERMINATION FOR CONVENIENCE

  	
   

  
	
  A.

  	
  Termination

  	
   

  

 

ii

 

	
  B.

  	
  Termination Expense

  	
   

  
	
  C.

  	
  Termination Charges

  	
   

  
	
  D.

  	
  Subcontractor Settlements

  	
   

  
	
  E.

  	
  Inventory

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18.
  TERMINATION FOR OTHER REASONS

  	
   

  
	
  A.

  	
  Termination by NSS for
  Cause

  	
   

  
	
  B.

  	
  Improper Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19. SECURITY

  	
   

  
	
  A.

  	
  Grant of Security
  Interest

  	
   

  
	
  B.

  	
  Representations
  and Warranties; Covenants

  	
   

  
	
  C.

  	
  Events of Default; Cure

  	
   

  
	
  D.

  	
  Contractor’s
  Remedies Following an Event of Default

  	
   

  
	
  E.

  	
  Termination
  of Security Interest and Substitution of Collateral

  	
   

  
	
  F.

  	
  Taxes

  	
   

  
	
  G.

  	
  Remedies Cumulative

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20. KEY
  PERSONNEL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21. DISPUTES

  	
   

  
	
  A.

  	
  Disputes

  	
   

  
	
  B.

  	
  Disagreements
  Regarding Technical Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22.
  INDEMNIFICATION

  	
   

  
	
  A.

  	
  General Indemnification

  	
   

  
	
  B.

  	
  Intellectual
  Property Indemnification

  	
   

  
	
  C.

  	
  Indemnification for Taxes

  	
   

  
	
  D.

  	
  Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23.
  LIMITATION OF LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24.
  DAMAGE TO PERSONS OR PROPERTY, ASSOCIATED WITH LAUNCH, INTERPARTY WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25.
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  A.

  	
  Mutual
  Representations and Warranties

  	
   

  
	
  B.

  	
  Contractor’s
  Special Representations and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26. ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27.
  CONFIDENTIALITY

  	
   

  
	
  A.

  	
  Identification
  of Proprietary Information

  	
   

  
	
  B.

  	
  Restrictions on Use,
  Disclosure

  	
   

  

 

iii

 

	
  C.

  	
  Company Restricted
  Information

  	
   

  
	
  D.

  	
  Standard of Care

  	
   

  
	
  E.

  	
  Property of Disclosing
  Party

  	
   

  
	
  F.

  	
  Confidential
  Treatment of MOU Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28.
  PUBLIC RELEASE OF INFORMATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29.
  NOTICES AND REPORTS, AUTHORIZED REPRESENTATIVES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30. OPTIONS

  	
   

  
	
  A.

  	
  Technical Support

  	
   

  
	
  B.

  	
  Replacement Spacecraft

  	
   

  
	
  C.

  	
  Optional Storage And
  Retest

  	
   

  
	
  D.

  	
  Intentionally Omitted

  	
   

  
	
  E.

  	
  In-Orbit Test Location

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31.
  NSS FURNISHED INFORMATION AND PROPERTY

  	
   

  
	
  A.

  	
  Title

  	
   

  
	
  B.

  	
  Risk of Loss

  	
   

  
	
  C.

  	
  Use

  	
   

  
	
  D.

  	
  Taxes

  	
   

  
	
  E.

  	
  Encumbrances

  	
   

  
	
  F.

  	
  Return

  	
   

  
	
  G.

  	
  Damages

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32.
  HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33.
  APPLICABLE LAWS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34. RESERVED

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35. RESERVED

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36. GENERAL

  	
   

  
	
  A.

  	
  Severability

  	
   

  
	
  B.

  	
  Cumulative Rights/Waivers

  	
   

  
	
  C.

  	
  Gender/Captions

  	
   

  
	
  D.

  	
  Relationship of the
  Parties

  	
   

  
	
  E.

  	
  Construction

  	
   

  
	
  F.

  	
  Including/Time

  	
   

  
	
  G.

  	
  Survival

  	
   

  
	
  H.

  	
  Entire Agreement

  	
   

  

 

iv

 

	
  Exhibit A

  	
  -

  	
  Spacecraft Performance Specifications (Rev B., dated January 2003)

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Statement of Work (Rev B., dated February 2005)

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Product Assurance Plan (dated March 2001)

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Test Plan (Rev B, dated February 2005) (including Annex 1
  thereto)

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Escrow Agreement (dated February 21, 2005)

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Method of Adjustment to Total Price (Rev B dated February 2005)

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Export Laws Compliance Program

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  -

  	
  Agreement of Non-Possessory Pledge of Assets (NSS-8) (dated February 22,
  2005)

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  -

  	
  Agreement of Undisclosed Pledge (NSS-8 Customer Accounts Receivable)
  (dated February 22, 2005)

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  -

  	
  Bill of Sale

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  -

  	
  Intentionally Omitted

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  -

  	
  Launch Services XXX

  
	
   

  	
   

  	
   

  
	
  Exhibit M

  	
  -

  	
  Pending RDWs (dated February 2005)

  

 

v

 

COMPOSITE
COMPILED CONTRACT FOR NSS-8 SPACECRAFT

 

AND
ASSOCIATED EQUIPMENT AND SERVICES

 

THIS COMPOSITE COMPILED CONTRACT (the “Contract”),
entered into as of this 22nd day of February, 2005, by and between Boeing
Satellite Systems International, Inc., a Delaware corporation, with its
principal place of business located at 2260 East Imperial Highway, El Segundo,
CA, U.S.A., (“Contractor”), and New Skies Satellites B.V., a Dutch corporation,
with its principal place of business located at Rooseveltplantsoen # 4, 2517KR
The Hague, The Netherlands (“NSS”), supersedes and replaces the Contract for
NSS-8 Spacecraft and Associated Equipment and Services between Contractor and
New Skies Satellites N.V. (predecessor of NSS) dated 21 March 2001, as
amended by Amendment Number 1 dated 15 January 2002, by Amendment Number 2
dated 12 February 2003, by Amendment Number 3 dated 6 May 2003 and by a
letter agreement dated 21 January 2004 (as so amended, hereinafter
referred to as “the Original Contract”).

 

W I T N E S
S E T H T H A T:

 

The Parties hereto mutually agree as follows:

 

ARTICLE 1.  DEFINITIONS

 

As used in this Contract:

 

A.            “Acceptance” with respect to any Item other
than the Spacecraft shall be as defined in Paragraph 7.E.  “Acceptance”
with respect to the Spacecraft shall be as defined in Paragraph 7.D.

 

B.            “Accounts Receivable” shall have the
meaning provided in the Receivables Pledge Agreement.

 

C.            “Alternative Launch Services Provider”
means either Arianespace, Boeing Delta Launch Services or International Launch
Services, which may be selected by Contractor pursuant to Article 8 to
Launch the Spacecraft.

 

 

D.            “Alternative Launch Vehicle” means either
the Ariane 5, the Atlas V, the Delta IV or the Proton/Breeze M launch vehicle,
which may be procured and provided by Contractor pursuant to Article 8.

 

E.             “Authorized Representative” shall have the
meaning set forth in Article 29.

 

F.             “Business Day” means any day that that is
not a Saturday or a Sunday or any other day on which commercial banks in New
York City, California, Illinois or The Netherlands are authorized or required
by law to remain closed.

 

G.            “Company Restricted Information” shall have
the meaning set forth in Paragraph 27.A.

 

H.            “Contract” shall have the meaning set forth
in the preamble.

 

I.              “Contract Change Notice” means a notice
proposing a change in any requirement of this Contract as described in the
Statement of Work and in accordance with Article 12.

 

J.             “Contract Data” means all Information,
including Deliverable Data, generated, developed, utilized, referenced, and/or
referred to in the performance of Work and/or relating to any Items.

 

K.            “Contract Intellectual Property” means all
Patents, U.S. and foreign patent applications and patent disclosures; all
patentable or unpatentable inventions, discoveries, improvements, and
innovations; all U.S. and foreign trademarks, trademark applications, and all
registrations and recordings thereof; all U.S. and foreign service marks,
service mark applications, and all registrations and recordings thereof; trade
names; all U.S. and foreign copyrights, copyright registrations, and
applications to register copyrights; confidential or proprietary technical and
business information and trade secrets; know-how; show-how; licenses (including
in the form of an immunity from suit) to use the intellectual property of third
parties (to the extent that the licensee can sublicense); software; technical
manuals and documentation used in connection with the foregoing; and other
intellectual property and proprietary information generated, developed, utilized,
referenced, and/or referred to in the performance of Work and/or relating to
any Items.

 

2

 

L.            “Contract Technology” means any and all
Contract Data and Contract Intellectual Property.

 

M.           “Contracted Orbital Maneuver Life” means an
Orbital Maneuver Life as set forth in Section 1.1.5 of the Spacecraft
Performance Specifications.

 

N.            “Contractor” shall have the meaning set
forth in the preamble.

 

O.            “Customer Contract” shall have the meaning
provided in the Receivables Pledge Agreement.

 

P.            “Customer Contract Coverage Maintenance”
shall have the meaning set forth in Paragraph 19.B.3(a).

 

Q.            “Deliverable Data” means all Information
required to be delivered to NSS under this Contract, including data and
information contained in reports, documents, computer programs, drawings and
graphs.

 

R.            “Deliverable Hardware” means all property
other than Deliverable Data required to be delivered to NSS under this
Contract, including Spacecraft, equipment, models, devices and the tangible
media on which Deliverable Data is delivered.

 

S.            “Delivery” for Items other than the
Spacecraft shall occur upon Acceptance as confirmed in writing by NSS as
described in Paragraph 6.B.  “Delivery” for the Spacecraft shall be as
described in Paragraph 6.A.

 

T.            “Disbursement Request” shall have the
meaning set forth in the Escrow Agreement.

 

U.            “Effective Date of Contract” or “EDC” means
21 March 2001.

 

V.            “Escrow Account” shall have the meaning
set forth in the Escrow Agreement.

 

W.           “Escrow Agent” means XXX.

 

X.            “Escrow Agreement” means the escrow
agreement among Contractor, NSS and XXX attached
hereto as Exhibit E.

 

Y.            “Escrow Amount” shall have the meaning set
forth in Paragraph 5.A.

 

3

 

Z.            “Event of Default” shall have the meaning
set forth in Paragraph 19.C.1.

 

AA.         “Excluded Judgments” means any judgments
(i) which are not final, (ii) which are covered by insurance, (iii) which
have been discharged or stayed or (iv) which aggregate less than
$20,000,000.

 

BB.         “Export Laws” shall have the meaning set
forth in Paragraph 3.C.

 

CC.         “Export Laws Compliance Program” means the
program described in Exhibit G that Contractor will implement to ensure that
Contractor obtains all governmental authorizations and approvals necessary to
permit NSS to have access to all Work, facilities, data, information,
documentation, books, records, testing and test results, and to take Delivery
of all Items, as required by this Contract.

 

DD.         “Failure” shall have the meaning set forth
in Exhibit F.

 

EE.          “Governmental Authority” means any
federal, state, local or foreign court or governmental agency, authority,
instrumentality or regulatory or legislative body.

 

FF.          “Information” means all data and
information, including data and information of a technical, business or
financial nature which has been documented on any tangible media, Including
writings, drawings, sound recordings, computer programs, pictorial
representations and graphs.

 

GG.         “In Service Date” means the date of
Acceptance of the Spacecraft.

 

HH.         “Intentional Ignition” means, XXX.

 

II.            “IOT” means in-orbit tests as specified in
the Test Plan, including Annex A thereto.

 

JJ.          “Items” means any and all Deliverable
Hardware and Deliverable Data.

 

KK.         “Key Subcontract” shall have the meaning
set forth in Paragraph 10.B.

 

4

 

LL.          “Key Subcontractor(s)” shall have the
meaning sot forth in Paragraph 10.B.

 

MM.        “Launch” means, XXX.

 

NN.         “Launch Services Provider” means Sea
Launch, an Alternative Launch Services Provider selected by Contractor in
accordance with Article 8, or another launch services provider selected by
Contractor and approved by NSS in accordance with Article 8, which will
Launch the Spacecraft.

 

OO.        “Launch Services” means those services to
be provided by the Launch Services Provider pursuant to the Launch Services
Agreement.

 

PP.          “Launch Services Agreement” means the
agreement between Contractor and the Launch Services Provider as described in Article 8.

 

QQ.        “Launch Site” means the location from which
the Launch of the Spacecraft will occur, as specified in the Launch Services
Agreement.

 

RR.         “Launch Vehicle” means the Sea Launch
launch vehicle, an Alternative Launch Vehicle or another launch vehicle
approved by NSS, which launch vehicle will be procured and provided by
Contractor pursuant to Article 8.

 

SS.          “License to Practice” means a right to
disclose, make, use, lease, offer for sale, market, advertise, promote, sell,
dispose of and otherwise practice.

 

TT.          “Liens” shall have the meaning set forth in
Paragraph 19.B.2(d).

 

UU.          “Lock-Box Account” shall have the meaning
set forth in Paragraph 19.B.3(a).

 

VV.         “Material Adverse Effect” means the
existence of events or conditions that have had or are reasonably likely to
have a material adverse effect on (i) the validity or enforceability of, or of
the material rights, remedies or benefits (including the aggregate

 

5

 

value to Contractor of the
collateral secured by the Pledge Agreements) available to Contractor under Article 19
or the Pledge Agreements or (ii) the ability of NSS to perform and comply with
its material obligations under Article 19 or the Pledge Agreements in
accordance with their terms (including, where applicable, the timetable within
which such performance or compliance is required), in each case taking into
consideration the amount of the Remaining Payments.

 

WW.      “MOU” means that certain Binding
Memorandum of Understanding Regarding the NSS-8 Spacecraft and Associated
Equipment and Services Contract (NSS-20-03-01) between NSS and Contractor dated
January 21, 2005.

 

XX.         “Nominal Launch Plan” shall have the
meaning set forth in Article 8.

 

YY.          “NPV Discount Rate” means the London
Interbank Offered Rate (London Quote) for three (3) months plus XXX percent XXX per annum net present value interest factor.

 

ZZ.          “NSS” shall have the meaning set forth in
the preamble.

 

AAA.      “NSS Credit Agreement” means the Credit
Agreement, dated as of November 2, 2004, among New Skies Holding B.V.,
NSS, the subsidiary revolving borrowers from time to time party thereto, the
lenders from time to time party thereto, Deutsche Bank AG, New York Branch, as
administrative agent, ABN Amro Bank N.V., as syndication agent, Deutsche Bank
Securities Inc. and ABN Amro Incorporated, as joint lead arrangers and joint
book running managers and BNP Paribas SA and ING Bank N.V., as co-documentation
agents, as the same may be amended, supplemented or otherwise modified from
time to time.

 

BBB.      “NSS Credit Agreement Acceleration” shall
have the meaning set forth in Paragraph 19.B.3.b.

 

CCC.      “NSS Credit Agreement Amendment” means the
First Amendment, dated as of February 22, 2004, to the NSS Credit
Agreement.

 

DDD.      “NSS-8 Customer” shall have the meaning
provided in the Receivables Pledge Agreement.

 

EEE.        “Orbital Design Life” means the orbital
design life of the Spacecraft as specified in Section 1.1.4. of the
Spacecraft Performance Specifications.

 

6

 

FFF.        “Orbital Maneuver Life” means the period of
time following the In Service Date for which the Spacecraft has sufficient fuel
to be operated at the Orbital Station, in accordance with stationkeeping
requirements set forth in the Spacecraft Performance Specifications, and
allowing sufficient fuel to deorbit the Spacecraft at the end of its life, also
in accordance with the standards set forth in the Spacecraft Performance
Specifications.

 

GGG.      “Orbital Station” means the orbital
location at which the Spacecraft is to be placed in geosynchronous orbit for
Delivery to be specified by NSS pursuant to the Statement of Work.

 

HHH.      “Original Contract” shall have the meaning
set forth in the preamble.

 

III.           “Patent” means a U.S. or foreign patent for
an invention or a similar form of statutory protection such as a utility model
or registered design.

 

JJJ.        “Party” or “Parties” means NSS and/or Contractor, who are the principals
to this Contract.

 

KKK.      “Payment Default” shall have the meaning
set forth in Paragraph 19.B.3(a).

 

LLL.       “Payment Start Date” XXX.

 

MMM.    “Permitted Liens” means any future (i)
Liens that are subordinated to Contractor’s interests under the Pledge
Agreements on terms that are reasonably satisfactory to Contractor (taking into
consideration the amount of the Remaining Payments), including reasonably
satisfactory inter-creditor arrangements between Contractor and the holder of
such other Lien, (ii) Liens arising by operation of law, (iii) Liens for taxes,
assessments, governmental charges or levies not yet delinquent or that are
being contested in good faith, provided that NSS will give Contractor notice of
any such Lien of which it has knowledge and which secures the payment of taxes
or charges in excess of $20 million, (iv) Liens securing judgments which are
not Excluded Judgments, provided that NSS will give Contractor notice of any
such Lien of which it has knowledge and which secures any judgment which is not
an Excluded Judgment in excess of $10 million, (v) other than with respect to
sale-leaseback transactions, interest of a lessor or lessee under any leases,
subleases, service agreements or other capacity

 

7

 

agreements entered into in the
ordinary course of business of NSS and (vi) Liens which would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

NNN.      “Permitted Receivables Disposals” means
(i) any compromise, settlement, discount, waiver, extension of payment or other
disposition of Accounts Receivable in the ordinary course of business and in a
manner consistent with NSS’s general business practices, (ii) any compromise,
settlement, discount, waiver, extension of payment or other disposition of
Accounts Receivable which would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, and (iii)
disposals which are consented to by Contractor, which consent shall not be
unreasonably withheld, conditioned or delayed if NSS provides alternative collateral
acceptable to Contractor in its reasonable discretion (taking into
consideration the amount of the Remaining Payments).

 

OOO.     XXX.

 

PPP.       “Pledge Agreements” means the Receivables
Pledge Agreement and the Spacecraft Pledge Agreement.

 

QQQ.     “Prepayments” shall have the meaning set
forth in Paragraph 5.D.

 

8

 

RRR.      “Price Adjustment” shall have the meaning
set forth in Paragraph 4.C.

 

SSS.       “PROCS” shall have the meaning set forth in
Paragraph 19.D.2(b).

 

TTT.       “Product Assurance Plan” means the product
assurance plan attached hereto as Exhibit C.

 

UUU.       “Promised Delivery Date” means the date
promised for Delivery of an applicable Item pursuant to Article 3.

 

VVV.      “Proprietary Information” shall have the
meaning set forth in Paragraph 27.A.

 

WWW.  “Receivables Pledge Agreement” means the
Agreement of Undisclosed Pledge to be executed by NSS and Contractor on the
date of this Contract, substantially in the form attached hereto as Exhibit H.

 

XXX.      “Remaining Payments” means the incentive
payments and interest remaining to be paid to Contractor under Paragraphs 5.C
and 5.D of this Contract through the term of the Contract.

 

YYY.       “Replacement Spacecraft” means the
replacement spacecraft that Contractor is obligated to deliver to NSS, if the
Spacecraft fails after Intentional Ignition and before Delivery and if NSS
exercises its option for such replacement spacecraft pursuant to Paragraph
30.B.

 

ZZZ.       “Right to Publish” means a right to make
public through any means and media whatsoever.

 

AAAA.   “Right to Use”
means a right to disclose, copy, duplicate, reproduce, modify and otherwise
use.

 

BBBB.   “Services”
means all services and labor required to be provided or arranged for under this
Contract by Contractor, including studies, development, research, design,
analysis, manufacture, product assurance, product integration, transportation,
launch and testing.

 

CCCC.   “Spacecraft”
means the satellite to be constructed by Contractor and launched and delivered
to NSS.

 

9

 

DDDD.   “Spacecraft
Performance Specifications” means the performance specifications
attached hereto as Exhibit A.

 

EEEE.      “Spacecraft
Pledge Agreement” means the Agreement of Non-Possessory Pledge of
Assets to be executed by NSS and Contractor on the date of this Contract,
substantially in the form attached here to as Exhibit I.

 

FFFF.      “Statement
of Work” means the statement of work attached hereto as Exhibit B.

 

GGGG.   “Subcontract”
means a subcontract including purchase orders, memoranda of understanding and
all similar forms of agreement at any tier under this Contract.

 

HHHH.   “Subcontractor”
means a contractor under any Subcontract.

 

IIII.          “Terminated
Ignition” means when, following Intentional Ignition, the first stage
engine of the Launch Vehicle has been shut down for any reason before release
of the hold down restraints and after Sea Launch officially declares the launch
platform safe.

 

JJJJ.      “Test Plan”
means the on-ground and in-orbit test plan attached hereto as Exhibit D.

 

KKKK.   XXX

 

LLLL.    “Total Loss”
shall have the meaning set forth in Exhibit F.

 

MMMM.  “Total
Price” shall have the meaning set forth in Paragraph 4.A.

 

NNNN.   “Total
Verified Termination Expense” shall have the meaning set forth in
Paragraph 17.B.

 

OOOO.  “TTC&M”
shall have the meaning set forth in Paragraph 19.D.2(b).

 

PPPP.    “Work”
means the production and Delivery of all Items and the provision of all
Services under this Contract by Contractor.

 

10

 

ARTICLE 2.  SCOPE OF WORK/ORDER OF PRECEDENCE

 

A.                                    Scope of Work

 

Contractor (i) shall provide the necessary
personnel, material, equipment, services and facilities to perform the Work
specified under the provisions of this Contract, including the Exhibits listed
below, (ii) shall perform such work and (iii) shall deliver to NSS those Items
listed under Article 3, in accordance with the Promised Delivery Dates
specified therein.  The Exhibits to this
Contract, which are attached hereto and hereby made a part of this Contract,
are as follows:

 

	
  Exhibit A

  	
  -

  	
  Spacecraft Performance Specifications

  
	
  Exhibit B

  	
  -

  	
  Statement of Work

  
	
  Exhibit C

  	
  -

  	
  Product Assurance Plan

  
	
  Exhibit D

  	
  -

  	
  Test Plan

  
	
  Exhibit E

  	
  -

  	
  Escrow Agreement

  
	
  Exhibit F

  	
  -

  	
  Method of Adjustment to Total Price

  
	
  Exhibit G

  	
  -

  	
  Export Laws Compliance Program

  
	
  Exhibit H

  	
  -

  	
  Agreement of Non-Possessory Pledge of Assets

  
	
  Exhibit I

  	
  -

  	
  Agreement of Undisclosed Pledge

  
	
  Exhibit J

  	
  -

  	
  Bill of Sale

  
	
  Exhibit K

  	
  -

  	
  Intentionally Omitted

  
	
  Exhibit L

  	
  -

  	
  Launch Services XXX

  
	
  Exhibit M

  	
  -

  	
  Pending RDWs

  

 

B.                                    Order of Precedence

 

In the event of conflict among the terms of this
Contract and the Exhibits, or in the event of conflicts among the terms of the
Exhibits, the following order of decreasing precedence shall apply:

 

	
  •      This Contract (Preamble and Articles 1
  through 36)

  
	
  •      Exhibit M

  	
   

  	
  Pending RDWs

  
	
  •      Exhibit B

  	
   

  	
  Statement of Work

  
	
  •      Exhibit A

  	
   

  	
  Spacecraft Performance Specifications

  
	
  •      Exhibit E

  	
   

  	
  Escrow Agreement

  
	
  •      Exhibit F

  	
   

  	
  Method of Adjustment to Total Price

  

 

11

 

	
  •      Exhibit H

  	
   

  	
  Agreement of Non-Possessory Pledge of Assets

  
	
  •      Exhibit I

  	
   

  	
  Agreement of Undisclosed Pledge

  
	
  •      Exhibit C

  	
   

  	
  Product Assurance Plan

  
	
  •      Exhibit D

  	
   

  	
  Test Plan

  
	
  •      Exhibit L

  	
   

  	
  Launch Services XXX

  
	
  •      Exhibit G

  	
   

  	
  Export Laws Compliance Program

  
	
  •      Exhibit J

  	
   

  	
  Bill of Sale

  

 

ARTICLE 3.  ITEMS TO BE DELIVERED AND DELIVERY SCHEDULE

 

A.                                    Items/Promised Delivery Dates

 

All Items and Services to be delivered and the
corresponding Promised Delivery Dates and points of Delivery are set forth below:

 

	
  Item No.

  	
   

  	
  Quantity

  	
   

  	
  Description

  	
   

  	
  Promised

  Delivery Date

  	
   

  	
  Point of

  Delivery

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  1

  	
   

  	
  Spacecraft as specified in Exhibit A and Exhibit B

  	
   

  	
  XXX

  	
   

  	
  Orbital Station

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  1 lot

  	
   

  	
  All Software Models, Databases, Analysis Tools or any other Data
  required to operate the Spacecraft

  	
   

  	
  Per Exhibit B

  	
   

  	
  NSS Headquarters

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  1 lot

  	
   

  	
  All other documentation, Software and Data as specified in Exhibit B

  	
   

  	
  Per Exhibit B

  	
   

  	
  Per Exhibit B

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  1 lot

  	
   

  	
  Launch Operations Support, Launch Services, Insurance (subject to Article 9),
  IOT, Mission Operations Support, Anomaly Investigation Support, and
  Visibility Services as specified in Exhibit B and all other Services as
  specified in Exhibit B (no Deliverable Hardware will be delivered under this
  category (Paragraph 3.A, Item 4))

  	
   

  	
  Per Exhibit B

  	
   

  	
  Per Exhibit B

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  1

  	
   

  	
  Spacecraft Simulator as specified in Exhibit B

  	
   

  	
  Per Exhibit B

  	
   

  	
  NSS Headquarters

  

 

12

 

Any optional Items ordered by NSS hereunder are
specified in Article 30 and would be delivered, if ordered, pursuant to
the terms of Article 30.

 

B.                                    Time of Essence

 

The Parties understand and agree that the time for
the Promised Delivery Date of the Spacecraft set forth above is of the essence
to this Contract.  Each Party shall use
its reasonable commercial efforts to promote the Delivery of the Spacecraft by XXX and in no event later than XXX days following a Launch on or before XXX. 
Contractor shall immediately notify NSS of any circumstance that will
cause or threaten to cause a delay in Delivery beyond the Promised Delivery
Date.  Contractor shall provide NSS, no
less frequently than quarterly, with Contractor’s best estimate of when
Delivery will occur.  XXX.

 

C.                                    Contractor
Responsibility

 

Delivery of all Items under this Contract shall be
at Contractor’s expense.  As provided in
Paragraph 14.E, Contractor shall be responsible for securing all necessary
export and import authorizations in a timely manner, including, as necessary to
deliver to NSS and its representatives and contractors, technical data under
all applicable laws, rules, and regulations, including the U.S. International
Traffic in Arms Regulations, as the same may be amended (collectively, “Export
Laws”).  Notwithstanding the foregoing,
Contractor shall not be responsible for the payment of any import duties
related to Items delivered to NSS, or Services performed for NSS, in The
Netherlands.

 

ARTICLE 4.  PRICES

 

A.                                    Total
Price

 

The Total Price for the Spacecraft and all other
Items, including all software, documentation, and Services described in items
numbered 1 through 5 in Paragraph 3.A., the IOT Option described in Paragraph
30.E, XXX, and the letter from NSS to Contractor dated May 4, 2004,
CTO/S2/04/04/012, for the scope of the Work detailed in the Statement of Work,
is XXX Dollars ($XXX) (the “Total Price”).

 

13

 

B.                                    Taxes

 

The Total Price and the prices for all other
deliverables (including optional deliverables) under this Contract include all
taxes, duties (except for import duties related to Items delivered to NSS, or
Services performed for NSS, in The Netherlands), transportation, insurance and
all other costs and charges associated with the performance of all Work.  Contractor shall be responsible for payment
of all taxes and duties (except for import duties related to Items delivered to
NSS or Services performed for NSS in The Netherlands) which may be required
under any present or future laws and which become due by reason of performance
of the Work, and shall comply with all requirements of said laws, including
payment of any interest or penalties related to or arising from such taxes and
duties.  For the purposes of this
Contract, the price of the Spacecraft authorized by NSS to be delivered shall
be FOB on station at the Orbital Station and the prices of all other Items
authorized by NSS to be shipped shall be FOB NSS headquarters in The
Netherlands, unless otherwise specified in writing by NSS.

 

C.                                    Adjustments

 

If, on or after the In Service Date, the Spacecraft
experiences one or more failures, degradations or anomalies as detailed in
Exhibit F, XXX shall be adjusted in the manner and in an
amount calculated in accordance with this Paragraph 4.C and Exhibit F (a “Price
Adjustment”).  NSS shall determine
against which future payment(s) due to Contractor pursuant to the term of this
Contract each Price Adjustment will be offset. 
If the sum of all future payments due to Contractor is less than a Price
Adjustment, Contractor shall promptly (and in any event within thirty (30)
days) refund to NSS the difference between the Price Adjustment and the sum of
all future payments due to Contractor. 
The total amount of any refunds and/or adjustments due to NSS under this
Paragraph 4.C and Exhibit F shall not exceed the XXX.

 

ARTICLE 5.  METHOD OF PAYMENT

 

A.                                    Milestone
Payment Refund

 

Subject to the provisions of Paragraph 5.B, on or
before February 22, 2005 Contractor shall refund to NSS the One Hundred
Sixty-Eight Million Dollars ($168,000,000) that NSS had paid toward the
Spacecraft under the terms of the Original Contract.

 

14

 

B.                                    Escrow

 

On or before February 22, 2005, NSS shall place
Thirty Million Dollars ($30,000,000)) (“Escrow Amount”) into escrow in NSS’
name pursuant to the Escrow Agreement attached hereto as Exhibit E, and shall
provide documentation to Contractor demonstrating that the Escrow Amount has
been deposited into the Escrow Account. 
If NSS fails to deposit the Escrow Amount into the Escrow Account,
Contractor shall either (as instructed by NSS) XXX
as soon as NSS has provided documentation to Contractor demonstrating that the
Escrow Amount has been deposited into the Escrow Account. In accordance with
the Escrow Agreement, interest accruing on the Escrow Amount until the XXX shall be paid to NSS and interest accruing thereafter
shall be paid to Contractor.  Contractor
may notify the Escrow Agent that Delivery has occurred pursuant to Section 2.3
of the Escrow Agreement only when Delivery has actually occurred pursuant to
and in accordance with this Agreement. 
NSS shall pay the Acceptance Fee and the Annual Administration Fee (each
as defined in the Escrow Agreement) for the first year of the Escrow
Agreement.  Contractor shall pay the
Annual Administration Fee for the second year of the Escrow Agreement.  The Parties shall pay an equal portion of all
other fees relating to the Escrow Account (including any Annual Administration
Fees for any subsequent period). The Escrow Amount shall be paid to Contractor,
or refunded to NSS, as applicable, in accordance with the Escrow Agreement, as
follows:

 

1.             Contract
Termination.  If at any point prior
to the In Service Date this Contract is terminated pursuant to Paragraph 18.A,
Contractor shall XXX

 

2.             Adjustment
to Total Price.  XXX

 

15

 

3.             Disbursement
to Contractor.  At any time after the
first XXX. NSS shall not protest any
Disbursement Request submitted by Contractor in accordance with this
Paragraph 5.B.2;

 

4.             Disputes.  Any disputes between the Parties regarding
distributions from the Escrow Account shall be resolved in accordance with
Paragraph 5.E and Article 21 hereof. 
Before filing a dispute with the Escrow Agent regarding any Disbursement
Request by Contractor, NSS shall use reasonable commercial efforts to provide
Contractor with prior notice of such dispute and the reason NSS believes that
the Disbursement Request was not submitted in accordance with this Contract.  In the event that NSS disputes any
Disbursement Request by Contractor, then Contractor shall submit a Disbursement
Request instructing the Escrow Agent to pay one-half (1/2) of the disputed
amount (together with any accrued interest or other investment earnings on such
amount) into an escrow account established in accordance with Paragraph 5.E and
to pay the remainder of the Escrow Amount (less any amounts previously paid or
payable to NSS under Paragraph 5.B.2) to Contractor.

 

C.                                    Payment
of Total Price

 

1.             Nature
of Payments.  The entire Total Price
shall be payable as at risk performance incentives XXX

 

2.             Timing
of Payments.  The first XXX

 

16

 

shall be made within thirty
(30) days after receipt by NSS of Contractor’s invoices therefore, the first of
which may be issued by Contractor no earlier than XXX.  In the event of a Price Adjustment pursuant
to Paragraph 4.C and Exhibit F, the amount of such Price Adjustment shall be
applied to future payments or refunded to NSS as set forth in Paragraph 4.C.

 

3.             Prepayments.  NSS may prepay the Total Price at any time,
in whole or in part (“Prepayments”).  The
initial XXX payment provided for by Paragraph
4.C.2 shall be deemed to be a Prepayment to the extent that it exceeds the
amount XXX to Contractor XXX.  Prepayments shall be refundable by Contractor
to NSS (in the amount specified below) if, after such Prepayment is made XXX.  Any such refund
shall be due within thirty (30) days after Contractor’s receipt of an invoice from
NSS in an amount equal to the sum of (x) the amount of any Prepayments that, if
not prepaid, would have become due after the date XXX,
plus (y) interest on each such amount at the NPV Discount Rate from the date
prepaid to the date of payment.

 

D.                                    Interest

 

Commencing on the XXX, NSS shall pay interest to Contractor on a
quarterly basis at the NPV Discount Rate on XXX. 
Interest payments shall be made within thirty (30) days after receipt by
NSS of Contractor’s invoices therefore, XXX. 
Interest shall be paid by NSS until the entire Total Price (as may be
adjusted) has been paid in full.

 

17

 

E.                                      Disputed
Payments

 

In the event of a dispute with respect to the
payment of any amount under this Contract (including as a result of a dispute
regarding the calculation of a Price Adjustment under Paragraph 4.C and Exhibit
F XXX, unless otherwise specified in the Contract, NSS or Contractor (as
applicable) shall pay the undisputed amount as and when due and, on or before
the payment due date, shall deposit XXX
percent (XXX%) of the disputed
amount into an interest-bearing escrow account to be established jointly by
Contractor and NSS promptly upon notice that a dispute exists at Bank of
America, Concord, California.  After the
dispute is settled, the Party entitled to the amount or part thereof in escrow
shall receive such amount together with all interest thereon and the costs and
fees associated with such escrow account shall be paid by each Party in inverse
proportion to the amounts received by each Party.  In the event that, after the dispute is
settled, a Party owes the other Party more than the amount placed in escrow,
then (i) such Party shall pay interest at the NPV Discount Rate on such amount
from the date the amount was due and (ii) such Party shall pay the entire
amount due to the other Party (including interest) within thirty (30) days of
the date on which the dispute is settled.

 

F.                                      Currency/Place
of Payment

 

All payments and/or refunds due from either Party to
the other shall be made in United States Dollars.  Payments and/or refunds to a Party shall be
made by wire transfer of funds to such place for payments and/or refunds as the
receiving Party’s Authorized Representative may designate from time to time in
writing.  Unless NSS otherwise notifies
Contractor, all invoices for payments to be made by NSS shall be addressed as
follows:

 

New Skies Satellites B.V.

Rooseveltplantsoen # 4

2517KR The Hague

The Netherlands

Attn: 
Accounts Payable / Mr. Adrien Bull

 

with a separate                                                                New Skies Satellites B.V.

copy to:                                                                                                    Rooseveltplantsoen # 4

2517KR The Hague

The Netherlands

Attention: 
Vice President, Space Segment Technology

Facsimile No.: 
+31 70 306 4285

 

18

 

NSS-8 Program Office

Building S01, M/S D381

c/o Boeing Satellite Systems, Inc.

P.O.  Box
92919

Los Angeles, CA 90009-2919

Attention: NSS-8 Program Manager

Facsimile No.: 
1-310-426-1443

 

Unless
Contractor otherwise notifies NSS, all payments to be made by NSS to Contractor
shall be made by wire transfer to the following account:

 

Bank of America

Los Angeles Main Office

Los Angeles, CA. 
USA

For deposit to the account of Boeing Satellite
Systems International, Inc.

Account No. XXX

 

ARTICLE 6.  DELIVERY, TITLE AND RISK OF LOSS OR DAMAGE

 

A.                                    Spacecraft
Delivery

 

Risk of loss or damage, and title, to the Spacecraft
shall transfer from Contractor to NSS upon Delivery.  Delivery of the Spacecraft shall occur upon
Acceptance in writing by NSS pursuant to Paragraph 7.D., and delivery of a bill
of sale for the Spacecraft in the form of Exhibit J.

 

B.                                    Delivery
of Other Items

 

Risk of loss or damage and title to all Items other
than the Spacecraft shall transfer from Contractor to NSS upon Delivery.  Delivery of such Items shall occur upon
Acceptance in writing by NSS pursuant to Paragraph 7.E., and delivery of a bill
of sale in the form of Exhibit J, except as otherwise provided in the Statement
of Work.

 

C.                                    Title

 

Contractor warrants that title to all Items
delivered hereunder shall be good, marketable and rightfully conveyed, and
shall be delivered free and clear of all liens, encumbrances, pledges and other
interests whatsoever, XXX

 

19

 

Furthermore,
Contractor agrees to execute and deliver all instruments reasonably required to
perfect or evidence such title in NSS.

 

ARTICLE 7.  CERTIFICATION, INSPECTION, ACCEPTANCE,
WAIVERS

 

A.                                    General
Requirements

 

Contractor is responsible for testing,
demonstrating, delivering, XXX the
Spacecraft and all other Deliverable Hardware and Deliverable Data meet all of
the requirements of this Contract, including the Spacecraft Performance
Specifications.  NSS’ right of inspection
or acceptance shall not be deemed a waiver of any defect, except as may be
expressly agreed in writing by NSS in accordance with Paragraph 7.B.
below.  Prior to asking NSS to accept any
Items and prior to Delivery, XXX.

 

B.                                    Waivers

 

Contractor shall immediately notify NSS at such time
that Contractor determines that it will not be able to meet a particular
Contract requirement or specification and seek a waiver from NSS.  Nothing herein shall be deemed to require NSS
to grant a waiver, but, if it is willing to consider doing so, and except for
adjustments which are addressed in other Articles of this Contract, NSS and
Contractor shall negotiate in good faith reasonable consideration (in the form
of a reduction in the Total Price of the Spacecraft) for any requested waiver
that represents a material deviation from Contract requirements or
specifications.  If the Parties cannot
agree on an appropriate amount, XXX
subject to a determination by binding arbitration under Article 21 of an
appropriate price adjustment.

 

C.                                    Inspections

 

Preliminary inspections of Items may be made by NSS
or its designated representatives at either Contractor’s or, subject to any
Subcontractor’s consent, a Subcontractor’s plant, as the case may be.  Contractor shall use reasonable efforts to
accommodate NSS’ inspection requests and to further request such inspections at
a Subcontractor’s plant when reasonable and appropriate.  All such inspections shall be in the company
of a Contractor’s representative; provided that, it after reasonable notice
(orally or in writing) of NSS’ inspection plans at a Subcontractor’s facility,
Contractor shall have failed to furnish such a representative, NSS may conduct
an unaccompanied inspection, subject to Subcontractor’s consent.  Without limiting Contractor’s own

 

20

 

responsibilities
in this respect, Contractor shall also remedy any and all defects identified by
NSS in the course of such inspections.

 

D.                                    Spacecraft
Acceptance Procedure

 

Following a successful completion of the pre-shipment inspection of the
Spacecraft, Contractor shall ship the Spacecraft to the Launch Site and proceed
with the further testing and Launch of the Spacecraft in accordance with the
Statement of Work and the Test Plan. 
Contractor shall notify NSS of the lOT schedule at least thirty
(30) days prior to the Launch of the Spacecraft.  The lOT shall be conducted In accordance with
the Statement of Work and the Test Plan, and NSS’ representatives shall be
permitted to observe all phases of the lOT. 
When the IOT is completed, Contractor shall submit to NSS the test
results and shall hold an acceptance review with NSS in accordance with the
requirements of the Statement of Work and the Test Plan.  At the conclusion of the acceptance review
and upon arrival of the Spacecraft at the Orbital Station, XXX NSS shall accept the Spacecraft, or, if
the Spacecraft is a Total Loss, NSS may, at its option, reject the Spacecraft
and terminate this Contract in accordance with Paragraph 18.A.1.  For the avoidance of doubt, the Spacecraft
shall be deemed not to meet XXX the
requirements of the Spacecraft Performance Specifications if, based on the IOT
results and any other information known to Contractor XXX, Contractor determines in good faith,
using sound technical judgment, that the Spacecraft has suffered a Failure and
will not meet the requirements of the Spacecraft Performance Specifications
throughout the Orbital Design Life.

 

E.                                      Acceptance
Procedures for Other Items

 

Except as specified in the Statement of Work,
Acceptance of Items to be Delivered under the Contract other than the
Spacecraft shall occur in accordance with the requirements of this Paragraph
7.E.  Contractor shall certify to NSS the
results of its inspection and tests of all such Items in a form acceptable to
NSS.  Based upon this certification, upon
which NSS shall be entitled to rely, and any inspection or testing that NSS may
conduct, NSS shall either accept the same in writing or notify Contractor in
writing of those defects in which the Items are unacceptable.  Upon receipt of a notice that any Item is
unacceptable to NSS, Contractor shall remedy such item.  Upon remedy of such defects XXX, the Item shall be accepted by NSS in
writing.

 

21

 

F.                                      Remedy
of Defects

 

Except as set forth in Paragraph 7.G. below with
respect to a Spacecraft after Delivery, remedy of any defects in an Item shall
be accomplished by Contractor at its expense, promptly upon receipt of notice
thereof.  Any Items found to be
non-conforming during or after testing required under this Contract, XXX and without charge to NSS, shall be
promptly re-tested (together with any other potentially affected parts or
systems) by Contractor both at the unit level, and, if NSS requests in its sole
discretion exercised in good faith, at a system level or of the entire
Spacecraft (XXX) after Contractor
has remedied such non-conformance.

 

G.                                    Post
Acceptance Remedies

 

After Acceptance by NSS of the Spacecraft,
Contractor shall fully cooperate with NSS and Contractor, at NSS’ request,
shall investigate and assist NSS in remedying, to the extent reasonably
practicable, any defects that are identified on the Spacecraft (including,
without limitation, through changes in operational procedures, software, or,
where possible, Spacecraft configurations) until the end of the Orbital
Maneuver Life.

 

ARTICLE 8.  LAUNCH SERVICES PROCUREMENT

 

Contractor’s current intention is to Launch the
Spacecraft on a Sea Launch Launch Vehicle with a minimum performance capability
of XXX, within a launch window of XXX (the “Nominal Launch Plan”).  Contractor may (at its sole cost, without any
adjustment to the Promised Delivery Date or the deadlines set forth in
Paragraph 18.A.1, and subject to its obligations under Paragraph 3.B) change
the Launch Vehicle to be used to Launch the Spacecraft, provided that
Contractor’s selection shall be subject to NSS’ prior written consent if the
selected Launch Vehicle is not a Sea Launch Launch Vehicle or an Alternate
Launch Vehicle.  XXX.  Contractor shall promptly notify NSS of any
changes to the

 

22

 

Nominal
Launch Plan and of any other circumstance that would give rise to NSS’ approval
rights hereunder.  Contractor shall be
responsible for entering into a Launch Services Agreement with the Launch
Services Provider (which shall comply with the requirements of Exhibit L) and
shall be responsible for all payments, launch campaign support and all other
requirements of and obligations to the Launch Services Provider arising under
the Launch Services Agreement and for any licenses or other authorizations that
may be required under the Export Laws in connection with the Launch.  Contractor shall be responsible for ensuring
that the performance capability of the selected Launch Vehicle and the design
and conduct of the launch campaign will enable Contractor to meet all of its
obligations to NSS under this Contract, including the Delivery of the
Spacecraft so that it will meet the Contracted Orbital Maneuver Life.  Contractor shall provide NSS and its consultants
with all reports, data and documentation generated by Contractor or provided to
Contractor by the Launch Services Provider with respect to the Launch of the
Spacecraft and provide NSS and its consultants complete access to all meetings,
reviews, Spacecraft/Launch Vehicle integration activities at the Spacecraft
factory and at the Launch Site, and Launch Vehicle anomaly or failure
investigation activities related to the Launch of the Spacecraft to the same
extent as Contractor has access thereto. 
Contractor shall use reasonable commercial efforts, acting on a
non-discriminatory basis vis-à-vis itself and its other customers, to protect
NSS’ interests in the conduct of the Launch by the Launch Services Provider,
including in maintaining the current launch window and, in the event that the
launch window must be changed due to a launch failure, in obtaining a prompt
replacement window.  In the event that
Contractor changes the Launch Vehicle to be used to Launch the Spacecraft in
accordance with this Article 8, the Parties shall agree on amended
definitions for Intentional Ignition, Launch, Terminated Ignition, and XXX to the
extent necessary to conform to the new Launch Services Agreement.  During construction, prior to and during
Launch and IOT, Contractor shall not intentionally take any action (or omit to
take any action) without NSS’ prior written consent where such action (or
omission) would reasonably be expected to reduce the Spacecraft’s anticipated
Orbital Maneuver Life.

 

ARTICLE 9.  INSURANCE

 

Contractor may procure, at its expense, insurance to
cover XXX

 

23

 

In
the event that either Party procures insurance in accordance with this Article 9,
such Party shall consult with the other Party before disclosing or
characterizing to insurance brokers or underwriters any information related to
the health or performance of the Spacecraft, whether during a procurement,
renewal, investigation or settlement of a failure or potential failure, or
otherwise.  Each Party shall consult with
the other Party before seeking to procure or authorizing another party to
procure insurance relating to the performance, or operation of the
Spacecraft.  Neither Party shall be
required to procure any insurance or to reimburse or otherwise compensate the
other Party for the cost of any insurance obtained by such other Party or to
consult with such other Party regarding the terms of any insurance that it
elects to procure.  Each Party shall use
reasonable commercial efforts, at the request of the other Party, to assist the
other Party in obtaining and maintaining any insurance and in investigating,
preparing, filing, administering and otherwise pursuing any claims or potential
claims thereunder, subject to reimbursement by the requesting Party of any
material costs and expenses incurred by such Party in providing such
assistance.

 

ARTICLE 10.  SUBCONTRACTS

 

A.                                    Subcontracts

 

Within ninety (90) days after the Effective Date of
Contract, Contractor shall provide a list of all Subcontracts with a value in
excess of Five Hundred Thousand Dollars ($500,000) and shall identify the work
to be provided in each such Subcontract. 
Changes to this list shall be detailed in each quarterly report, to be
provided by Contractor pursuant to the Statement of Work.

 

B.                                    Key
Subcontracts

 

Contractor agrees to enter into major Subcontracts
(hereinafter referred to as “Key Subcontracts”) for the Work specified below
with the persons or entities (hereinafter referred to as “Key Subcontractors”)
listed below.  Contractor further agrees
that the Key Subcontractors are necessary for the successful completion of the
Work to be performed hereunder. 
Contractor shall not change its key Subcontractors without NSS’ prior
written consent.

 

24

 

	
  Key Subcontractor

  	
   

  	
  Work

  
	
  1.       XXX

  	
   

  	
  Launch

  
	
  2.       XXX

  	
   

  	
  C/Ku TWTs

  
	
  3.       XXX

  	
   

  	
  Triple Junction GaAs Solar Cells

  
	
  4.       XXX

  	
   

  	
  Loop Heat Pipes

  
	
  5.       XXX

  	
   

  	
  Structure Assemblies

  
	
  6.       Reserved

  	
   

  	
   

  
	
  7.       XXX

  	
   

  	
  C/Ku Quad LNAs

  
	
  8.       XXX

  	
   

  	
  C Downconv/Ku Upconv

  
	
  9.       XXX

  	
   

  	
  Ku Downconv

  
	
  10.     XXX

  	
   

  	
  XIPS Thrusters/Passive Microwave

  
	
  11.     XXX

  	
   

  	
  Reflector Mirrors

  
	
  12.     XXX

  	
   

  	
  45” DGS Reflector

  
	
  13.     XXX

  	
   

  	
  C-band T/R CP Feed

  

 

ARTICLE 11.  PROPERTY ACCOUNTING

 

A.                                    Identification
and Control

 

Contractor shall be directly responsible for and accountable
for all XXX subsystems or systems
(whether in its possession or, where feasible, the possession of any of its
Subcontractors) which are designated to become the property of NSS pursuant to
the terms of this Contract, and which are part of the Items to be Delivered
under this Contract.  For this purpose,
Contractor shall establish and maintain a system to control, protect, preserve
and identify, at all times and until the Delivery and Acceptance of the last
Item to be delivered hereunder, all of the aforementioned property in its
possession XXX.

 

B.                                    Subcontractors

 

Contractor shall, where feasible, require
Subcontractors who are responsible for developing or manufacturing any of the
Items to be delivered under the terms of this Contract to comply with
provisions similar to the provisions of this Article.

 

25

 

C.                                    Inventory

 

Contractor shall maintain an inventory of all NSS
designated property in its possession that has been incorporated into the
Spacecraft.  Contractor shall retain and
shall use its reasonable efforts to cause Subcontractors to retain, inventory
records of property incorporated into the Spacecraft, until XXX. 
Contractor and Subcontractors shall have inventory records covering the
property incorporated into the Spacecraft available for NSS review and
inspection, upon reasonable notice.  If
there are no property inventories in Contractor’s or Subcontractors’
possession, notification shall also be provided to that effect to NSS.

 

ARTICLE 12.  CHANGES REQUESTED BY CONTRACTOR OR NSS

 

A.                                    Contract
Change Notice

 

Any changes requested during the performance of this
Contract which will add or delete Work, affect the design of the Spacecraft,
change the method of shipment or packing, or place or time of any Delivery, or
will affect any other requirement of this Contract, whether proposed by
Contractor or NSS, shall be reflected by Contractor in writing as a contract
change notice in accordance with the Statement of Work (“Contract Change Notice”)
issued at least thirty (30) days prior to the proposed date of the change.

 

B.                                    Acceptance
of Change

 

1.             Changes
in the Ordinary Course.  For all
Contract Change Notices other than those described in Paragraph 12.B.2, NSS
shall notify Contractor within ten (10) Business Days after receipt of a
Contract Change Notice whether or not it agrees with and accepts such
change.  If NSS agrees with and accepts
the change, Contractor shall proceed with the performance of the Contract as
changed, and an amendment to the Contract reflecting such change, and price
and/or schedule adjustments, if any, shall be issued.  If NSS does not agree to implement the
change, and the Parties are unable to reach any other agreement regarding such
change, Contractor shall proceed with the performance of the Contract, as
unchanged.  NSS shall be permitted to
refer any dispute as to the price of a change to arbitration and/or authorize
the change, subject to binding arbitration under Article 21 as to the
change order price.  In circumstances
where NSS authorizes Contractor to go forward pending arbitration, Contractor
shall proceed with the change, with the price effect to be so determined by

 

26

 

arbitration; provided that,
pending conclusion of such arbitration, Contractor shall be entitled to receive
partial payment from NSS in the amount of the undisputed portion of the price
of the change, within thirty (30) days after Contractor issues an invoice for
such amount.  NSS shall deposit the disputed
amount of the change price into an interest-bearing escrow account to be
allocated and distributed between the Parties at the conclusion of, and in
accordance with, the arbitration.

 

2.             Changes
Resulting from a Technical Disagreement. 
If, as a result of a technical disagreement, Contractor has issued a
Contract Change Notice pursuant to Paragraph 21.B, NSS shall notify Contractor
within five (5) Business Days after receipt of such Contract Change Notice
whether or not it agrees with and accepts such change.  If NSS agrees with and accepts the change,
Contractor shall proceed with the performance of the Contract as changed, and
an amendment to the Contract reflecting such change, and price and/or schedule adjustments,
it any, shall be issued.  If NSS disputes
the change, it shall either (i) instruct Contractor to proceed without making
the change or (ii) instruct Contractor to proceed with the change.  If NSS instructs Contractor to proceed with
the change, XXX.  NSS’ instruction to Contractor (whether to
proceed with Work under a Contract Change Notice or not to perform such Work),
shall not be deemed a waiver of NSS’ rights or remedies under the Contract, or
of NSS’ right to challenge Contractor’s proposed price for a Contract Change
Notice.  XXX

 

C.                                    Non
Refusal

 

Contractor may not refuse any change that may be
requested by NSS during the performance of this Contract as long as the
NSS-requested change is within the general scope of this Contract and is
technically feasible.

 

27

 

D.            Price
of Changes

 

All pricing determinations for changes shall be based on the materials
and efforts involved in implementing the change (which shall be described to
NSS in reasonable detail) and such materials and efforts previously required
that will no longer be required.  XXX Calculation of expense savings for Work
that is not required, regardless of who requested the change, shall include a
deduction for the applicable profit margin. 
In addition, if certain supplies or materials already acquired for the
Work are made obsolete or excess as a result of a change, NSS shall have the
right to prescribe the manner of disposition of such supplies or materials.

 

E.             Compressed
Time Periods

 

The time periods specified in this Article and in the Statement of Work
for proposing and approving changes may be shortened as necessary to
accommodate exigent circumstances.

 

F.             Changes
To Meet Specifications

 

For the avoidance of doubt, in no event shall NSS be required to pay
for any change, accept any deviation in performances or specifications, or
allow any delay to the extent that Contractor is required to remedy any
defects, including those that may become apparent through the testing or
operation of other spacecraft, all such Work to be performed by Contractor at its
sole cost and expense.

 

G.            Pending RDWs

 

NSS hereby agrees to disposition the requests for deviation and waiver
set forth in Exhibit M on a no-cost basis.

 

ARTICLE
13.  CONTRACT TECHNOLOGY

 

A.            Disclosure
of Contract Technology

 

From the Effective Date of Contract, and for a period of twenty-four
(24) months after the Delivery of the Spacecraft, Contractor shall maintain
copies of all Contract Technology (including Contract Data previously delivered
to NSS hereunder).  During such period,
and thereafter to the extent such Contract Technology is retained by
Contractor, NSS may have access to and/or request copies of such Contract

 

28

 

Technology to the extent reasonably required for preparing, launching, testing,
maintaining, operating, using or marketing capacity on or services that employ
the Spacecraft.  Within seven (7) days
after receipt of such request, Contractor shall furnish copies of the requested
Contract Technology.  The cost of
furnishing copies of such Contract Technology shall be borne by the requester
and shall include the cost of collecting, editing, duplicating, assembling and
shipping, to the extent not included in the Contract price, but shall not
include any amount associated with the value of such Contract Technology.  The Contractor may, by appropriate marking on
Contract Technology, indicate that such shall be used only in accordance with
the terms of this Contract.

 

B.            Rights
Granted in Contract Technology

 

1.             Contract
Data.  Contractor hereby grants to
NSS an irrevocable, non- exclusive, royalty free, worldwide Right to Use and
Right to Publish Contract Data in connection with XXX, launching, testing, maintaining, operating, XXX and XXX
the Spacecraft.

 

2.             Contract
Intellectual Property.  For all
Contract Intellectual Property owned by Contractor or under which Contractor
has rights, Contractor hereby grants to NSS an irrevocable, non-exclusive,
royalty free, worldwide License to Practice under such Contract Intellectual
Property in connection with preparing, launching, testing, maintaining,
operating, using, and marketing capacity on or services that employ the
Spacecraft.

 

C.            Limitations

 

NSS’ rights to receive and/or, disclose Contract Technology shall be
subject to the Export Laws and Article 27 of this Contract.

 

ARTICLE 14.  RIGHT OF ACCESS,
REPORTS, TESTING, MONITORING

 

A.            Access

 

Subject to compliance with the Export Laws Compliance Program, NSS
shall have the access rights specified below and as described in the Statement
of Work.

 

1.             Work.  NSS shall be allowed reasonable access to
Contractors facilities and to all Work and Work in progress, and all data and
information related to

 

29

 

this Contract, for purposes of
observation, inspection, examination and evaluation, at any reasonable time
prior to Acceptance of the relevant Item or termination of this Contract and
thereafter to the extent such data and information are of the type customarily
retained in the ordinary course of business.

 

2.             Subcontracts.  Contractor shall provide access rights to NSS
to the subject matter of the Key Subcontract with XXX to the same extent as access is provided to
Contractor.  For all other Key
Subcontracts, Contractor will use best efforts to negotiate terms that will
provide access rights to NSS to the subject matter of the Key Subcontracts to
the same extent as access is provided to Contractor.  For all other Subcontracts, Contractor shall
use reasonable efforts to negotiate terms that will provide access rights to
NSS to the subject matter of the Subcontracts to the same extent as access is
provided to Contractor.  Such NSS access
shall be coordinated through Contractor’s product assurance program interface.

 

B.            Reports

 

Subject to compliance with the Export Laws Compliance Program,
Contractor shall deliver to NSS written progress and status reports, test data,
and any final reports, in accordance with the requirements of the Statement of
Work.  All reports furnished pursuant to
this Paragraph may be used and distributed by NSS in accordance with the
provisions of this Contract.

 

C.            Performance
Testing

 

Subject to compliance with the Export Laws Compliance Program, NSS
shall have the rights with respect to testing set forth below and in the
Statement of Work.

 

1.             Witness
of Tests.  All developmental,
qualification and acceptance testing of Items required by this Contract may be
witnessed by NSS’ representatives at Contractor’s or Subcontractor’s plant
(subject to Subcontractor’s consent which Contractor shall use reasonable
efforts to obtain) or at such other place as the tests are conducted or test
results are monitored, and NSS shall be provided with access to and copies of
same to the extent specified in the Statement of Work or requested by NSS.

 

2.             Acceptance
Tests.  NSS shall have the right
reasonably to specify the times and places for the undertaking of final
acceptance testing of any Deliverable Hardware to be delivered in accordance
with the requirements of this Contract.

 

30

 

3.             Notice
of Tests.  If Contractor or any
Subcontractor establishes the time, date, or location of any testing required
under this Contract, Contractor shall provide, or cause the Subcontractor to
provide, NSS with the advance notice specified in this Contract, or if not
specified, with reasonable advance notice. 
Contractor reserves the right to perform any testing under this Contract
without NSS’ participation where such prior written notice was provided to NSS.

 

4.             Test
Plan.  All testing under this
Contract shall be undertaken in accordance with the Test Plan and the Statement
of Work.

 

D.            Monitoring

 

Subject to compliance with the Export Laws Compliance Program,
approximately four (4) of NSS’ personnel and consultants shall be located at
the manufacturing site of the Spacecraft for the purpose of monitoring the
progress of the Work as specified in the Statement of Work.  Contractor shall provide office and other
facilities to such personnel and consultants as described in the Statement of
Work.  In addition, Contractor shall
provide adequate parking spaces for NSS on-site personnel and consultants.  NSS personnel and consultants shall have
twenty-four (24)-hour access to the office space provided hereunder.  The witnessing of tests and the monitoring of
progress of Work under this Article 14 shall be subject to Contractor’s
personnel accompanying NSS personnel during such activities.  Contractor shall obtain from the Key
Subcontractors the rights for Contractor’s personnel and for NSS’ personnel and
consultants to access the Work in progress related to the Spacecraft at the Key
Subcontractors’ plants.  To the extent
Contractor has similar rights of access to the plants of other Subcontractors,
it shall permit NSS’ personnel and consultants to accompany Contractor’s
personnel to such plants, subject to the consent of the Subcontractor, if
required.

 

E.             Export
Laws Compliance

 

The export of any Items under this Contract is subject to the approval
of the United States government through its relevant agencies and bodies.  Contractor shall promptly implement the
Export Laws Compliance Program described in Exhibit G to obtain and maintain
all authorizations and consents under the Export Laws necessary to permit NSS
to take Delivery of all Items and to permit NSS, the Launch Services Provider,
the insurance underwriters or other third parties with a need to access to

 

31

 

information supplied by Contractor or Subcontractors under any of the
provisions of the Contract, and their respective personnel and consultants, to
have full access to the Work, reports, testing and monitoring and all
information, documents and data related thereto, as specified in this Contract.  Contractor shall use best efforts to obtain
such authorizations and consents prior to the Spacecraft system-level
preliminary design review as set forth in the Statement of Work.  Pending receipt of such authorizations and
consents, Contractor shall employ Satellite Consulting, Inc. as an independent
auditor who will provide a minimum of two (2) equivalent man - months per month
of auditor support.  Individuals provided
by Satellite Consulting, Inc. for this effort shall have access to all Items
and all Work, reports, testing and monitoring and all information, documents
and data related thereto, to which NSS’ and any necessary third parties’ access
is precluded by the Export Laws.  The
independent auditor will have full authority to exercise any and all access and
related rights under the Contract, with respect to the material and information
to which it is given access under the foregoing.  At the time of receipt of the authorizations
under the Export Laws Compliance Program, the independent auditor will
transition its access rights to NSS as permitted by the Export Laws, and NSS
shall assume full access rights with respect thereto.  For clarification purposes, the cost of
Satellite Consulting, Inc.’s services shall be borne by Contractor until 5
August 2001; after which, and until such time as Satellite Consulting, Inc.
obtains the proper export authorizations, NSS will reimburse Contractor for any
Satellite Consulting, Inc. costs incurred by Contractor under the NSS-8
program.  Contractor may invoice NSS for
these Satellite Consulting, Inc. costs on a monthly basis (with net 30 days
payment terms) commencing the month of December 2001.  Upon receipt by Satellite Consulting, Inc. of
proper export authorization, Contractor shall terminate its NSS-8 program
purchase order with Satellite Consulting, Inc. and invoice NSS for any
remaining amounts due.  NSS shall then
assume any future procurement responsibility for Satellite Consulting, Inc.’s
services under the NSS-8 program.  To the
extent any access by NSS specified in this Contract is not permitted by the
Export Laws, the independent auditor specified above shall continue to have
access and the authority to exercise access-related rights on behalf of
NSS.  Nothing in this Article 14 shall
preclude NSS and any necessary third parties, during the period when the Export
Laws Compliance Program is pending, from having access to any Items and all
Work, reports, testing and monitoring and all information, documents and data
related thereto, to the extent such access is not precluded by the Export Laws.

 

32

 

ARTICLE
15.  WARRANTY

 

A.            Warranty

 

Contractor warrants that, notwithstanding prior inspection or
Acceptance by NSS:

 

1.             All Deliverable
Hardware shall be in good working order and free from all defects in
workmanship and materials and shall conform with the requirements of this
Contract;

 

2.             All Deliverable Data
shall conform with the requirements of this Contract; and

 

3.             All Services shall be
performed in a skillful and workmanlike manner and shall conform with the
requirements of this Contract.

 

Contractor shall pass through to NSS any warranties regarding Launch
Services that Contractor obtains from the Launch Services Provider.

 

B.            Remedies

 

Promptly after receipt of written notification from NSS that Work is
defective or non-conforming, Contractor shall, XXX, either (i) correct, repair or replace, at Contractor’s
sole expense, any defective or non-conforming Work so as to comply with the
above warranties, or (ii) reimburse NSS for such portion of the price as is
equitable.  The remedies stated herein
shall not apply to the extent a defect results from willful misconduct or gross
negligence on the part of NSS, its employees, agents, consultants or representatives.

 

C.            Warranty
Period

 

XXX, the above
warranties shall continue for a period of XXX
years from the date of Acceptance of each Item, except, however, all
corrections, repairs and replacements made pursuant to this Article by
Contractor after Acceptance shall be so warranted for a period of XXX years from the date of Acceptance of
such corrections, repairs or replacements. 
XXX:

 

33

 

(i)                   XXX

 

(ii)                  XXX

 

(iii)                 XXX

 

(iv)                 XXX

 

D.            Disclaimer

 

Except as otherwise set forth herein and in other articles of this
Contract, Contractor expressly disclaims any express or implied warranties,
including without limitation, warranties of fitness for a particular purpose
and merchantability.

 

E.             Not
Exclusive Rights

 

XXX

 

ARTICLE 16.  DEFICIENCIES NOTED
IN OTHER SPACECRAFT

 

A.            Qualification
Heritage

 

XXX

 

B.            Notice

 

Whether before or after Acceptance of the Spacecraft, Contractor shall
immediately notify NSS of any circumstance, known to or suspected by Contractor
that

 

34

 

would make any statement set forth in Paragraph 16.A., if made at the
time, no longer the case, and of any other data available to it that indicates
(i) that conditions exist which affect or may affect adversely the Spacecraft
operation, or (ii) that the Spacecraft performance and/or operation depart or
may depart from that expected from the program documentation at any time during
the period of the Spacecraft’s Orbital Maneuver Life, or (iii) that the
Spacecraft does not meet all the requirements of the Spacecraft Performance
Specifications, or can not be reasonably predicted to be able to meet the
requirements of the Spacecraft Performance Specifications for the full Orbital
Maneuver Life.  Contractor shall take
prompt appropriate corrective measures at its sole cost in any Spacecraft that
has not been Launched so as to eliminate all the deficiencies so noted or
suspected, to NSS’ satisfaction.  NSS
shall have the right to reject, until Intentional Ignition any Spacecraft that
does not meet the requirements of this Article 16.  Thereafter, NSS’ obligations to complete
Delivery and Acceptance of the Spacecraft shall be governed by other provisions
of this Contract.

 

ARTICLE 17.  TERMINATION FOR
CONVENIENCE

 

A.            Termination

 

NSS may, prior to Contractor’s completion of all Work, by written
notice issued by NSS’ Authorized Representative, terminate this Contract
(except for any Items for which Delivery and Acceptance have been completed)
for its convenience, whereupon Contractor shall cease Work in accordance with
the terms of said notice.

 

B.            Termination
Expense

 

Contractor shall promptly submit to NSS a detailed written statement of
Contractor’s total out of pocket expense incurred in the performance of Work
and total out of pocket expenses resulting from such termination as determined
in accordance with Contractor’s standard accounting practices and, at NSS’
request and expense, verified to NSS by Contractor’s or other reputable
independent certified public accountants (hereinafter referred to as “Total
Verified Termination Expense”).

 

C.            Termination
Charges

 

Termination charges shall be negotiated by NSS and Contractor based
upon the Total Verified Termination Expense plus a profit margin of XXX percent (XXX%).

 

35

 

1.             Maximum
Charge.  In no event shall
termination charges exceed the lesser of (i) the Total Verified Termination
Expense plus the profit margin specified above or (ii) the Total Price.

 

2.             Payment.  Termination charges, as negotiated, less (I)
amounts previously paid by NSS pursuant to this Contract after the date of this
Composite Compiled Satellite Contract, if any, and (ii) amounts representing
termination charges attributable to Deliverable Hardware and the Launch
Services Agreement and other rights associated therewith (to the extent NSS
does not elect to retain same) which Contractor or any of its Subcontractors
elects to retain (which election Contractor shall make as to each item for
which it has another reasonably compatible use), shall be paid by NSS (or, if a
net refund is due, by Contractor) within sixty (60) days after receipt of
Contractor’s (or, if applicable, NSS’) invoice therefor.

 

D.            Subcontractor
Settlements

 

Contractor shall advise NSS of all proposed settlements with vendors
and Subcontractors in the event of termination, and Contractor further shall
not enter into any binding settlement until NSS has approved the proposed
settlement or until thirty (30) days have elapsed from the date when NSS was
advised of the proposed settlement, without approval or objection by NSS.

 

E.             Inventory

 

In the event of such a termination, all inventory generated under this
Contract, except that retained by Contractor or Subcontractors pursuant to
Paragraph 17.C.2, shall become the property of NSS.

 

ARTICLE 18.  TERMINATION FOR
OTHER REASONS

 

A.            Termination
by NSS for Cause

 

NSS may, by written notice issued by NSS’ Authorized Representative,
terminate this Contract, in whole or in part (except for any Items for which
Delivery and Acceptance have been completed) if:

 

1.             (A) the Spacecraft is
a Total Loss prior to Acceptance, or (B) the
Spacecraft has not been Launched by XXX,
or (C) the Spacecraft is not approved and authorized for shipment to the
Launch Site (with

 

36

 

no liens
thereon) by XXX, or
(D) Contractor determines in good faith that the Launch date in clause (B)
or the authorization to ship date in clause (C) will not be met (in which case
Contractor shall promptly notify NSS);

 

2.             XXX;

 

3.             Contractor commits a
material breach of this Contract or otherwise fails to perform any other
material provisions of this Contract, and such breach or failure is not cured
within thirty (30) days from the date of such notice; or

 

4.             Contractor shall (i)
apply for or consent to the appointment of a receiver, trustee, custodian,
intervenor or liquidator of itself or substantially all of its assets; (ii)
file a voluntary petition in bankruptcy, admitting, in writing, that it is
unable to pay its debts as they become due; (iii) make a general assignment for
the benefit of creditors; (iv) file a petition or answer seeking reorganization
or arrangement with creditors to take advantage of any bankruptcy or insolvency
laws; (v) file an answer admitting the material allegations of, or consent to,
or default in answering, a petition filed against it in any bankruptcy,
reorganization or insolvency proceeding where such action or failure to act
will result in a determination of bankruptcy or insolvency; or (vi) downsize or
discontinue its commercial communications spacecraft manufacturing business
such that Contractor’s ability to perform its obligations under this Contract
is impaired.

 

Contractor acknowledges and agrees that the deadlines contained in
Paragraph 18.A.1 are firm, fixed deadlines and are not subject to adjustment
for any reason, at law or in equity, regardless of the reason for the delay,
including but not limited for delays beyond the control of Contractor, Launch
delays (including Launch delays caused by a launch failure of the Spacecraft or
another satellite), delays caused by force majeure events, and otherwise, and
may be adjusted only by a written amendment signed by NSS.  Upon termination pursuant to this Paragraph
18.A., NSS shall receive, within thirty (30) days of termination, a full refund
of the Escrow Amount and all accrued interest thereon that has not previously
been paid to NSS and, upon such refund, NSS shall be relieved

 

37

 

of all further obligations under this Contract and NSS shall relinquish
all of its rights to Items for which Delivery and Acceptance have not been
completed, and return or destroy all Deliverable Data not related to Items for
which Delivery and Acceptance have been completed previously that is in
tangible form.

 

B.            Improper
Termination

 

If, after termination under the provisions of Paragraph 18.A, it is
determined for any reason that the Contract was terminated improperly under the
provisions of this Article, the rights and obligations of the Parties shall be
the same as if termination had been effected pursuant to Article 17.

 

ARTICLE
19.  SECURITY

 

A.            Grant
of Security Interest

 

As security for payment by NSS to Contractor of incentive payments and
interest due to Contractor under Paragraphs 5.C and 5.D (as may be adjusted
pursuant to Paragraph 4.C and Exhibit F), NSS and Contractor shall, on the date
of this Contract, execute the Pledge Agreements.

 

B.            Representations
and Warranties; Covenants

 

1.             Representations
and Warranties.  NSS represents and
warrants to Contractor that:

 

a.             the
performance by NSS of its obligations under this Article 19 and the execution,
delivery and performance by NSS of the Pledge Agreements and the Escrow
Agreement have been authorized by all necessary corporate and shareholder
action;

 

b.             upon
the effectiveness of the NSS Credit Agreement Amendment (which effectiveness is
conditioned only upon the application of a portion of the milestone payment
refund referred to in Paragraph 5.A of this Contract in prepayment of
outstanding term loans under the NSS Credit Agreement), the performance by NSS
of its obligations under this Article 19 and the execution, delivery and
performance by NSS of the Pledge Agreements and the Escrow Agreement will not be
in conflict with, result in a breach under or constitute a default under the
NSS Credit Agreement;

 

38

 

c.             the
Pledge Agreements and the Escrow Agreement, when executed and delivered by NSS
and Contractor (and, in the case of the Escrow Agreement, the other parties
thereto), will constitute legal, valid and binding obligations of NSS,
enforceable against NSS in accordance with their terms (subject to (i) the
effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent
conveyance or other similar laws affecting creditors’ rights generally, (ii)
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (iii) implied covenants of
good faith and fair dealing);

 

d.             no
action, consent or approval of, registration or filing with or any other action
by any Governmental Authority is or will be required to give effect to this
Article 19 or to the Pledge Agreements, other than (i) recordation of the
Pledge Agreements (which, if required, NSS shall do within ten (10) Business
Days after execution of the Pledge Agreements), (ii) such consents, approvals,
registrations, and filings as may be required in connection with Contractor’s
exercise of its rights under the Pledge Agreements following an Event of
Default and (iii) such actions, consents or approvals the failure of which to
be obtained or made could not reasonably be expected to have a Material Adverse
Effect;

 

e.             except
for any consents or approvals (i) required under the NSS Credit Agreement (all
of which consents and approvals shall have been obtained upon the effectiveness
of the NSS Credit Agreement Amendment (as described in clause (b) above) and
(ii) by any Governmental Authority, as referred to in clause (d) above, no
consents or approvals of any other person are required in connection with the
performance by NSS of its obligations under Article 19 and the execution,
delivery, performance, validity or enforceability of the Pledge Agreements and
the Escrow Agreement, other than consents or approvals the failure of which to
be obtained or made could not reasonably be expected to have a Material Adverse
Effect; and

 

f.              upon
the effectiveness of the NSS Credit Agreement Amendment (as described in clause
(b) above), the performance by NSS of its obligations under this Article 19 and
the execution, delivery and performance by NSS of the Pledge Agreements and the
Escrow Agreement will not be in conflict with, result in a breach under or
constitute a default under any agreement to which NSS is a party, where any
such conflict, breach or default could reasonably be expected to have a
Material Adverse Effect.

 

39

 

2.             General
Covenants.  NSS covenants and agrees
with Contractor that, from the date of this Contract and throughout the
Security Period (as defined in each Pledge Agreement), NSS will:

 

a.             not
sell, transfer, lease or otherwise dispose of the Spacecraft, except that this
provision shall not prohibit Permitted Spacecraft Disposals;

 

b.             not
voluntarily sell, lease, transfer, assign or otherwise dispose of the Orbital
Station without the prior written consent of Contractor, unless NSS has rights
to use (and will use) an alternative orbital location for the Spacecraft and
the operation of the Spacecraft from such other orbital location will not
constitute a Material Adverse Effect.

 

c.             not
sell, transfer, lease or otherwise dispose of, and not settle, compromise,
discount, waive or extend the payment dates in relation to, any Accounts
Receivable, except that this provision shall not prohibit Permitted Receivables
Disposals, subject to compliance with Paragraph 19.B.3;

 

d.             not
permit to exist any mortgage, deed of trust, lien, hypothecation, pledge, encumbrance,
charge of security interest (collectively, “Liens”) on the Spacecraft or the
Accounts Receivable other than Permitted Liens, subject to compliance with
Paragraph 19.B.3;

 

e.             use
reasonable commercial efforts to comply in all material respects with any
authorization necessary for the operation of the Spacecraft;

 

f.              use
reasonable commercial efforts to maintain and preserve the Spacecraft and any
property (including, but not limited to, data and software) required for the
operation of the Spacecraft in good repair, working order and condition and
furnish written notice to Contractor of any material loss of or damage to the
Spacecraft within one (1) Business Day following such material loss or damage;

 

g.             pay
and discharge promptly when due all material obligations that, if unpaid, could
reasonably be expected to give rise to a Lien upon the Spacecraft, other than
Liens permitted under clause (d) above;

 

40

 

h.             upon
request from Contractor, execute such further documents and take all such
further actions as may reasonably be required to perfect Contractor’s rights
under the Pledge Agreements;

 

i.              notify
Contractor (x) promptly of any events or circumstances which could reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect or (y) within one (1) Business Day of receipt, of any notice received by
NSS from the administrative agent under the NSS Credit Agreement following an
event of default under the NSS Credit Agreement of the administrative agent’s
intention to exercise any acceleration or enforcement remedies available to it
under the NSS Credit Agreement; and

 

j.              not
take any corporate action with a view to its being voluntarily resolved or
entering into a merger (fusie),
de-merger (splitsing) or division
(afsplitsing), except where such
action (i) could not reasonably be expected to have a Material Adverse Effect
or (ii) is consented to by Contractor (which consent shall not be unreasonably
withheld, conditioned or delayed), taking into consideration the amount of the
Remaining Payments.

 

3.             Covenants
Relating to “Lock-Box” Account; Direction of Accounts Receivable.

 

a.             Payments.  To the extent that NSS fails to make one (1)
or more payments as and when due under Paragraph 5.C.2 or 5.D which are
undisputedly due and payable or in dispute but due and payable into an escrow
account under Paragraph 5.E for an aggregate amount in excess of XXX Dollars ($XXX) within thirty (30) days following the date on which any
such payment or payments become due under this Contract (any such failure, a “Payment
Default”), Contractor may by written notice, at any time following the
occurrence and during the continuance of such Payment Default, instruct NSS to,
at Contractor’s option, either direct a sufficient number of NSS-8 Customers to
(i) make payments as and when due under one (1) or more Customer Contracts
directly into a bank account that is encumbered by a first right of pledge in
favor of Contractor (any such account, a “Lock-Box Account”) to the extent
necessary to cause the aggregate amount standing to the credit of such bank
account (plus any minimum balance required by the relevant banking institution)
to equal the amount of the Payment Default and from which Contractor can directly
deduct amounts necessary to cure such Payment Default or (ii) make
payments as and when due under

 

41

 

one (1) or more Customer
Contracts directly to Contractor in an aggregate amount equal to the amount of
the Payment Default.  NSS may revoke such
directions with respect to any particular Customer Contract so long as it has
given equivalent directions with respect to other Customer Contracts as
necessary to maintain compliance with its obligations under this clause (a)
(such maintenance of compliance, “Customer Contract Coverage Maintenance”).  Following receipt of any such written notice,
and to the extent necessary for Customer Contract Coverage Maintenance, NSS
shall promptly so instruct sufficient NSS-8 Customers.

 

b.             In
the event that NSS defaults under the NSS Credit Agreement and such default
results in the acceleration of the maturity of the loans under the NSS Credit
Agreement (an “NSS Credit Agreement Acceleration”), Contractor may by written
notice instruct NSS to direct all NSS-8 Customers to make payments as and when
due under the Customer Contracts into a Lock-Box Account, from which Contractor
can directly deduct amounts that are undisputedly due and payable as and when
due and payable under Paragraph 5.C.2 or 5.D, or transfer amounts that are in
dispute into an escrow account under Paragraph 5.E as and when due under
Paragraph 5.E.  Following receipt of any
such written notice, NSS shall promptly so instruct NSS-8 Customers.

 

4.             Enforcement
of Customer Contracts.  Following the
exercise by Contractor of its rights under Paragraph 19.B.3.a (and without
prejudice to NSS’s obligations thereunder), and, in the case of the exercise by
Contractor of its rights under Paragraph 19.B.3.a(i), for so long as any
Payment Default remains outstanding and, following a cure of such Payment
Default, until such time as four (4) quarterly payment dates have passed
without there occurring another Payment Default, NSS shall enforce each
Customer Contract required for Customer Contract Coverage Maintenance (or, in
the case of the exercise by Contractor of its rights under Paragraph
19.B.3.a(ii), all Customer Contracts) in a manner that is consistent with its
general business practices and shall not amend any Customer Contract required
for Customer Contract Coverage Maintenance (or, in the case of the exercise by
Contractor of its rights under Paragraph 19.B.3(a)(ii), any Customer Contracts)
or relieve any affected NSS-8 Customer of its obligations thereunder in a manner
that inequitably impairs Contractor’s right to receive payments under Paragraph
19.B.3(a), Paragraph 5.C.2 and Paragraph 5.D, as applicable.

 

42

 

5.             Rights
and Obligations Following a Cure. 
For the avoidance of doubt, when a Payment Default is no longer
outstanding and four (4) quarterly payment dates have passed without there
occurring another Payment Default, NSS’s obligations under this Paragraph
19.B.3 (other than its obligations under Paragraph 19.B.3.a(ii) and its
obligations under Paragraph 19.B.3.b, to the extent they relate to an exercise
by Contractor of its rights under Paragraph 19.B.3.a(ii)) shall cease to exist
and NSS may withdraw or otherwise use, in its sole discretion, any amounts
remaining in a Lock-Box Account; shall no longer be required to maintain a
Lock-Box Account; and, subject to compliance with the provisions of this
Article 19 and the Pledge Agreements, may deal with all NSS-8 Customers in such
manner as it determines in its sole discretion. 
Nothing in this clause (c) shall prejudice Contractor’s rights under
Paragraph 19.B.3(a) with respect to any subsequently occurring Payment Default.

 

6.             Covenant
Relating to Prepayment of Term Loans Under the NSS Credit Agreement.  NSS undertakes that, as soon as practicable
following its receipt from Contractor of the refunded amounts of the Milestone
Payment Plan referenced in Section 2.3(a) of the MOU, it shall apply such
portion thereof towards prepayment of outstanding term loans under the NSS
Credit Agreement as is required so as to ensure that the NSS Credit Agreement
Amendment becomes effective within twenty-four (24) hours of receipt by NSS of
such refunded amounts.

 

C.            Events
of Default; Cure

 

1.             Events
of Default.  Each of the following
shall constitute an Event of Default under this Article 19 and the Pledge
Agreements: NSS shall (i) fail to observe or perform in any material respect
its obligations under any covenant contained in Paragraph 19.B.3(a), Paragraph
19.B.3(b) or Paragraph 19.B.4 or (ii) fail to cure any Payment Default within XXX (XXX)
days by providing sufficient Customer Contract Coverage Maintenance;

 

b.             At
any time following the occurrence and during the continuance of a Payment
Default, there occurs an NSS Credit Agreement Acceleration;

 

c.             Any
representation or warranty made by NSS in Paragraph 19.B.1, in Paragraph 25.A
or in Clause 4.1 of either Pledge Agreement shall prove to have been false or
misleading in any material respect when so made by NSS and, in the case of the
representation and warranty set forth in Paragraph 19.B.1.(d), NSS shall

 

43

 

fail promptly to make or obtain
any required action, consent, approval, registration or filing upon becoming
aware of the need therefore and such failure shall have a Material Adverse
Effect;

 

d.             NSS
shall fail to observe or perform in any material respect its obligations under
any covenant contained in Paragraph 19.B.2 or Article 5 of either Pledge
Agreement or any of its other material obligations under this Article 19 (other
than any obligation referred to in clause (a) above) and the Pledge Agreements
and such failure, if capable of remedy, shall continue unremedied for a period
of thirty (30) days; provided that, in the case of a failure to observe
or perform in any material respect its obligations under Paragraph 19.B.2(f)
after the occurrence of an NSS Credit Agreement Acceleration, NSS shall provide
reasonable assurances that such failure is capable of remedy;

 

e.             an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed in a court of competent jurisdiction seeking (i) relief in respect of NSS
or of a substantial part of the property or assets of NSS, under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for NSS or for a substantial part of the
property or assets of NSS, (iii) the winding-up or liquidation of NSS or (iv)
the commencement of any proceedings in The Netherlands regarding the bankruptcy
(faillissement), suspension of
payments (surséance van betaling)
or dissolution (ontbinding) of
NSS; and such proceeding or petition shall continue undismissed for sixty (60)
days or an order or decree approving or ordering any of the foregoing shall be
entered;

 

f.              NSS
shall (i) voluntarily commence any proceeding or file any petition seeking
relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other federal, state or foreign bankruptcy,
insolvency, receivership or similar law, (ii) seek, or consent to, the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in paragraph (e) above,
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for NSS or for a
substantial part of the property or assets of NSS, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the

 

44

 

benefit of creditors or (vi)
become unable, admit in writing its inability or fail generally to pay its
debts as they become due.

 

; provided, with respect to (i) the events and circumstances
described in clauses XXX (other
than as provided in clause (ii) of this proviso) above, that within XXX (XXX)
days and (ii) the events and circumstances described in clause (XXX) above, XXX, that within XXX
(XXX) days, in each case after
receiving written notice from Contractor stating the nature and extent of the
claimed default and Contractor’s intent to exercise one or more of its remedies
hereunder as a result of the default (which notice may be given by Contractor
at any time following the occurrence of any of the events described in clauses
(a) through (f) above and shall specify which remedies Contractor intends to
exercise) NSS shall have failed to either (x) cure the default, (y) dispute the
existence of a default under Article 21 or (z) provide other comparable
security that is acceptable to Contractor in its reasonable discretion, taking
into consideration the amount of the Remaining Payments.  Notwithstanding any prior allocation by NSS
of Prepayments and Price Adjustments under Paragraph 4.C, NSS may cure an Event
of Default by re-allocating any Prepayments and/or Price Adjustments which
haven’t been previously effected to the past due amount.

 

D.            Contractor’s
Remedies Following an Event of Default

 

1.             Payment
and Exercise of Pledges.  At any time
following the occurrence and during the continuance of an Event of Default
(other than an event of default with respect to the events and circumstances
described in Paragraph 19.C.1(e) or Paragraph 19.C.1(f)), Contractor may
declare the sum of all future payments due to Contractor under Article 4 to be
forthwith due and payable in whole or in part (subject to refunds in the event
of a future Price Adjustment) and may, subject to Paragraph 19.D.4, exercise
any or all rights and remedies available under the Pledge Agreements and under
this Article 19.  Upon the occurrence of
an Event of Default under Paragraph 19.C.1(e) or Paragraph 19.C.1(f), the sum
of all future payments due to Contractor under Article 4 shall immediately
become due and payable in whole (subject to refunds in the event of a future
Price Adjustment) and Contractor may, subject to Paragraph 19.D.4, exercise any
or all rights and remedies under the Pledge Agreements and under this Article
19.

 

2.             Additional
Rights of Contractor following Enforcement of the Spacecraft Pledge Agreement.  At
any time following the exercise by Contractor of its

 

45

 

rights and remedies under the
Spacecraft Pledge Agreement, Contractor may by written notice instruct NSS to
do, and NSS shall use commercially reasonable efforts to do, any one or more of
the following in accordance with the instructions of Contractor:

 

a.             Continue
performing TT&C operations for the Spacecraft at the Orbital Station for a
fixed monthly fee based on the material and efforts involved in providing such
services plus a profit component of XXX
percent (XXX%).  NSS shall perform
TT&C operations on commercially reasonable terms and conditions;

 

b.             Subject
to the requirements set forth in Article 21 of the Spacecraft Pledge Agreement,
effect the transfer of operational control over the Spacecraft to Contractor or
to a qualified third-party designated by Contractor and transfer to Contractor
or such third party: (i) any access codes, command codes, command encryption
keys and related manuals and documentation reasonably necessary to establish
access to and perform tracking, telemetry, control and monitoring (“TTC&M”)
of the Spacecraft, including activation and control of any spacecraft
subsystems and payload components and the transponders thereon, taking into consideration NSS’s then-current
procedures and practices for performing TTC&M (and including, without
limitation NSS’s procedures for performing TTC&M of the Spacecraft, or “PROCS”);
and (ii) such Spacecraft’s configuration, loading and other information as may
be reasonably required by Contractor in order to continue providing services to
NSS-8 Customers, taking into consideration NSS’s then-current procedures and
practices for providing services to NSS-8 Customers.  NSS shall also grant to Contractor an irrevocable
(subject to the limitations
provided for herein), non-exclusive, royalty free, worldwide license (which
Contractor may sublicense to any qualified third party) to use the NSS codes,
documentation, procedures and information provided under this clause (b) solely
for the purpose of performing TTC&M of the Spacecraft and continuing to
provide services to NSS-8 Customers. 
For the avoidance of doubt, this provision shall apply only to codes,
documentation, procedures and information generated and maintained by NSS and
shall not apply to any hardware or to any third-party data, software or
documentation, XXX.  Any
codes, documentation, procedures and information provided pursuant to this
clause (b) shall be treated as NSS Proprietary Information under Article 27;
Contractor agrees to accept such codes, documentation, procedures and
information on an “as is” basis and NSS expressly disclaims any express or
implied warranties, including without limitation warranties of fitness for any
particular purpose and merchantability; and shall be subject to the
provisions of Article 31

 

46

 

hereof.  Notwithstanding anything in the foregoing to
the contrary, Contractor shall not be allowed to take any action, and NSS shall
not be required to take any action, that, in NSS’s sole opinion, would impair
or threaten to impair the continued operation of any other satellite owned or
operated by NSS or otherwise materially and adversely affect any asset of NSS
other than the Spacecraft.  As used
herein, a “qualified third party” shall mean any third party who (x) is
qualified, in Contractor’s reasonable discretion, to perform TTC&M for the
Spacecraft and provide services to the NSS-8 Customers and (y) is not an owner
and operator of a fixed satellite services (FSS);

 

c.             At
Contractor’s request, either (i) make available to Contractor through a
sublicense or other lawful arrangement NSS’s rights to make use of the orbital
location and associated radio frequencies at which the Spacecraft is then
operating for the shorter of the Spacecraft’s then-remaining Orbital Design
Life or until all incentive payments and interest due to Contractor under this
Contract have been paid in full, for an annual fee of no more than XXX ($XXX)
or (ii) assist Contractor in obtaining a license or other authorization from
the Government of The Netherlands pursuant to which Contractor would be able to
make use of the orbital location and associated radio frequencies at which the
Spacecraft is then operating during period set forth in clause (i).

 

3.             Additional
Rights of Contractor following Enforcement of the Receivables Pledge Agreement.  At any time following the exercise by
Contractor of its rights and remedies under the Receivables Pledge Agreement by
sending a Default Notice (as defined in the Receivables Pledge Agreement) (so
long as Contractor has not exercised its rights and remedies under the
Spacecraft Pledge Agreement), NSS shall, at Contractor’s written request, use
commercially reasonable efforts to, provide sales, marketing, billing,
collection and related services for NSS-8 Customers and prospective customers
at the orbital location.  Pricing for
such services shall be based on the material and efforts involved in providing
the services plus a profit component of XXX
percent (XXX%).

 

4.             Obligations
of Contractor.  Prior to exercising
the Spacecraft Pledge Agreement, Contractor must exercise the Receivables
Pledge Agreement by sending a Default Notice (as defined in the Receivables
Pledge Agreement).  Contractor shall have
the right to control the Spacecraft, including the right to relocate the
Spacecraft from the orbital location, only after Contractor has exercised its
enforcement rights under the Receivables Pledge Agreement and the Spacecraft Pledge
Agreement.

 

47

 

After exercising the Spacecraft
Pledge Agreement, (1) Contractor shall be solely responsible for the command
and control of the Spacecraft unless Contractor elects, pursuant to Paragraph
19.D.2(a), to have NSS continue to operate the Spacecraft, in which case NSS
shall continue to operate the Spacecraft pursuant to Paragraph 19.D.2(a) and
comply with its obligations under Customer Contracts; and (2) Contractor shall
be solely responsible for any decision to relocate the Spacecraft from the
orbital location; provided, that Contractor shall not be so responsible
if (x) NSS has not complied with its obligations under Paragraph 19.D.2(c) or
(y) such relocation is required pursuant to an order issued by the government
of The Netherlands or another Governmental Authority with jurisdiction over the
Spacecraft or the orbital location.

 

E.             Termination
of Security Interest and Substitution of Collateral  

 

1.             Termination
of Security Interest.  The provisions
of this Article 19 and the Pledge Agreements each shall terminate in their
entirety, and NSS shall have no further obligations hereunder or thereunder,
when NSS has unconditionally and irrevocably (other than as provided in
Paragraph 5.C.3) paid all but the last XXX Dollars
($XXX) in incentive payments
hereunder.

 

2.             Substitution
of Collateral.  At any time when XXX Dollars ($XXX) or less in incentive payments remains due to Contractor
under this Contract, NSS may seek Contractor’s consent to provide alternative
security, which consent may not be unreasonably withheld, conditioned or
delayed taking into consideration the amount of the Remaining Payments, the
adequacy of the alternative security offered to secure the remaining incentive
payments and interest, NSS’s general creditworthiness, and other commercially
reasonable factors.

 

F.             Taxes

 

Contractor
shall be solely responsible for any and all taxes, duties, spectrum use,
regulatory, licensing and other fees arising from its exercise of its rights
under this Article 19 or under the Pledge Agreements, including without
limitation import duties.

 

G.            Remedies
Cumulative

 

The
rights, powers and remedies of Contractor under this Article 19 are cumulative
and shall be in addition to, and without prejudice to, all rights, powers and
remedies available to Contractor pursuant to the Pledge Agreements and at law,
in 

 

48

 

equity or by statute.  All such rights, powers and remedies may be
exercised successively or concurrently without impairing the rights of
Contractor hereunder.

 

ARTICLE
20.  KEY PERSONNEL

 

It
is agreed that the following Contractor employees and positions are necessary
for the successful performance of this Contract:

 

	
  Key Personnel

  	
   

  	
  Position

  
	
  XXX

  	
   

  	
  Chief
  Engineer

  
	
  XXX

  	
   

  	
  Program
  Manager

  
	
  XXX

  	
   

  	
  Deputy
  Program Manager

  
	
  XXX

  	
   

  	
  Lead
  Payload Engineer

  
	
  XXX

  	
   

  	
  Systems
  Lead

  
	
  XXX

  	
   

  	
  Lead
  Bus Engineer

  
	
  XXX

  	
   

  	
  Contracts
  Manager

  
	
  XXX

  	
   

  	
  Ground
  Systems Lead

  
	
  XXX

  	
   

  	
  PA
  Manager

  
	
  XXX

  	
   

  	
  Antenna
  Lead

  

 

In
the event one (1) or more of the above-named personnel are no longer available
for the performance of this Contract, Contractor agrees to replace such
personnel with personnel of a comparable level of experience, qualifications
and ability, and such replacement shall be subject to NSS’ approval.

 

ARTICLE
21.  DISPUTES

 

A.            Disputes

 

Any
dispute or disagreement arising between Contractor and NSS in connection with
this Contract, which is not settled within thirty (30) days (or such longer
period as may be mutually agreed upon by the Parties) from the date that either
Party notifies the other in writing that such dispute or disagreement exists
(or within the time periods specified in Paragraph 21.B with respect to
technical matters), at the request of either Party shall be settled under the
Rules of Conciliation and Arbitration of the International Chamber of Commerce,
in effect on the date that such request is made, by three (3) arbitrators.  Each Party shall select one (1) arbitrator
and the two (2) arbitrators so selected shall select the third (3rd)
arbitrator; provided that if the two (2) arbitrators 

 

49

 

selected by the Parties cannot
agree on a third arbitrator within thirty (30) days of their selection by the
Parties, the third arbitrator shall be appointed in accordance with the Rules
of Conciliation and Arbitration.  The
arbitration proceedings shall be conducted in the United Kingdom.  The arbitration resolution shall be final and
binding upon the Parties and judgment may be entered thereon, upon the
application of either Party, by any court having jurisdiction.  Each Party shall bear the cost of preparing
and presenting its case; and the cost of arbitration, including the fees and
expenses of the arbitrators, will be shared equally by the Parties unless the
resolution otherwise provides.

 

B.            Disagreements
Regarding Technical Matters

 

The
Parties acknowledge their shared interest in ensuring that the Spacecraft is
delivered by the Promised Delivery Date and is constructed and tested so as to
ensure that it performs in accordance with the requirements of the Contract,
including the Exhibits hereto.  In
recognition of this shared interest, the Parties agree to cooperate in good
faith and to expedite, to the maximum extent technically and commercially
reasonable, the resolution of any dispute or disagreement arising between
Contractor and NSS related to the disposition of test or other anomalies or
other technical matters.  If there is a
disagreement between the Parties regarding the foregoing, the Parties shall
expedite resolution of a “go forward” plan as follows:

 

1.             Program
Managers.  Contractor’s program
manager shall discuss the issue (and shall provide sufficient relevant
technical information, including test data, and make available other relevant
personnel including the appropriate subject matter experts) with NSS’ on-site
program manager.  If the matter has not
been resolved to either Party’s satisfaction within twenty-four (24) hours, then

 

2.             Chief
Technology Officer.  Contractor or
NSS each may escalate the matter to Contractor’s Chief Engineer and to NSS’
Chief Technology Officer (and, as above, Contractor shall provide sufficient
relevant technical information, including test data, and make available other
relevant personnel including the appropriate subject matter experts).  If the matter has not been resolved to either
Party’s satisfaction within forty-eight (48) hours, then

 

3.             CEOs.  Contractor or NSS each may escalate the
matter to Contractor’s General Manager and to NSS’ Chief Executive Officer
(and, as above, Contractor shall provide sufficient relevant technical
information, including test data, and 

 

50

 

make available other relevant
personnel including the appropriate subject matter experts).  If the matter has not been resolved to either
Party’s satisfaction within forty-eight (48) hours, then (a) a dispute shall be
deemed to exist under the Contract and either Party may unilaterally submit the
matter to arbitration in accordance with Paragraph 21.A and (b) upon request
from NSS (which must be made, if at all, within five (5) Business Days),
Contractor shall provide a Contract Change Notice, which shall specify the
terms for performing the disputed work (including, but not limited to, price
and schedule impact).

 

ARTICLE
22.  INDEMNIFICATION

 

A.            General
Indemnification

 

XXX shall indemnify and hold XXX,
its officers, directors, agents, employees, owners, subsidiaries, affiliates,
successors and assigns, or any of them, harmless from any and all loss, damage,
liability or expense resulting from damage (excluding damage to the Spacecraft
caused after Acceptance) and injuries, including death, to all persons (natural
or juridical), arising from any occurrence caused by a material act or omission
of XXX or any of them, and XXX shall at its sole expense defend any
claims, actions, suits and proceedings, whether in law or equity, brought
against XXX, its officers,
directors, agents, employees, owners, subsidiaries, affiliates, successors and
assigns, or any of them, on account thereof, and shall pay all expenses,
including attorney’s fees, and satisfy all judgments as may be incurred by or
rendered against them, or any of them, in connection therewith, provided XXX is given prompt notice of any such
claim, action, suit or proceeding.  XXX shall provide, at XXX written request and sole expense, such
assistance and information as may be reasonably provided by XXX in connection with the defense of any
such action.  Notwithstanding the
foregoing, for the period commencing at Intentional Ignition through Spacecraft
separation from the Launch Vehicle, Contractor shall indemnify NSS for damages
caused by the nonperformance of the Launch Services only to the extent that the
Launch Services Provider provides such indemnity under the Launch Services
Agreement as long as (i) Contractor does not amend its Launch Services
Agreement with Sea Launch after the date of this Agreement to reduce or limit
the indemnity provided by Sea Launch thereunder and (ii) any new Launch
Services Agreement entered into by Contractor contains indemnification
provisions that are at least as favorable to Contractor (and NSS) as those
contained in Contractor’s Launch Services Agreement with Sea Launch as of the
date of this Contract.

 

51

 

B.            Intellectual
Property Indemnification

 

XXX shall, at its expense, defend, indemnify and hold XXX, its officers,
directors, agents, sublicensees, owners, subsidiaries, affiliates and employees,
successors or assigns or any of them harmless from and against any and all
claims, losses, actions, damages, expenses and all other liabilities, including
but not limited to costs and reasonable attorneys’ fees, resulting from any
claim against an indemnified party by any third party, for infringement or
other violation of any patent, copyright, trademark, trade secret rights, or
any other intellectual property rights arising from preparing, launching,
testing, maintaining, operating, using, and marketing capacity on or services
that employ the Spacecraft or in connection with any Item; the performance of
Work; or any Contract Technology owned by XXX
and/or licensed by XXX to XXX under this Contract.

 

If
an injunction or other order is obtained against the manufacture, preparation,
use, lease, sale or other disposition of any deliverable Item, Contractor
agrees to use its best efforts either to procure rights so that such
deliverable Item and the manufacture, preparation, use, lease, sale or other disposition
thereof is no longer infringing or to modify or replace such deliverable Item,
subject to NSS’ technical approval, so that it is no longer subject to such
injunction or order.  In the event that
neither of the foregoing alternatives is suitably accomplished, XXX shall be liable to XXX, its successors and assigns, or any of
them, for all additional costs and damages resulting from such injunction or
order.

 

C.            Indemnification
for Taxes

 

Contractor
shall assume responsibility for, and shall hold NSS harmless from all taxes,
duties (except for import duties related to Items delivered to NSS, or Services
performed for NSS, in The Netherlands), tariffs or similar charges, however
denominated, which may be required under any present or future law or laws, and
which become due by reason of the performance of Work under this Contract or
any Subcontract hereunder, and shall execute and deliver such other further
instruments, and comply with such requirements of said laws, as may be
necessary thereunder to confirm and effectuate this Contract, including making
of payment of any interest or penalties related to or arising from such taxes,
duties, tariffs or other charges.

 

52

 

D.            Procedures

 

In
the event XXX employs any
attorney, accountant, engineer or consultant to assist in defense of any matter
pursuant to this Article 22, such attorney, accountant, engineer or consultant
shall be reasonably satisfactory to the indemnified party.  If XXX
does not employ counsel to take charge of the defense, the indemnified party
shall, at the sole expense of XXX,
employ separate counsel and direct such defense on its own behalf.  No settlement of any claim, action,
proceeding or suit shall admit liability on the part of an indemnified party
without such indemnified party’s prior written consent, which may be given or
withheld in an indemnified party’s sole discretion.

 

ARTICLE 23.  LIMITATION OF
LIABILITY

 

NOTWITHSTANDING
ANY OTHER PROVISION HEREIN TO THE CONTRARY, NEITHER PARTY SHALL BE LIABLE,
WHETHER IN CONTRACT, TORT OR OTHERWISE, FOR SPECIAL, INCIDENTAL, INDIRECT OR
CONSEQUENTIAL DAMAGES OR FOR LOST PROFITS OR REVENUES, OTHER THAN FOR A WILLFUL
BREACH OR GROSS NEGLIGENCE.  THE FOREGOING
LIMITATIONS SHALL NOT APPLY TO A PARTY’S OBLIGATIONS TO INDEMNIFY A THIRD PARTY
CLAIM PURSUANT TO ARTICLE 22 OR ANY OTHER PROVISIONS OF THIS CONTRACT RELATING
TO INDEMNIFICATION OF A THIRD PARTY CLAIM.

 

ARTICLE 24.  DAMAGE TO PERSONS OR
PROPERTY, ASSOCIATED WITH LAUNCH, INTERPARTY WAIVER

 

Each
Party agrees to be bound to such interparty waiver as the Launch Services
Provider may set forth in the Launch Services Agreement, provided that the
waiver contains reciprocal rights for both Parties and is substantially
consistent with the standard provisions of such Launch Services Provider.

 

ARTICLE 25.  REPRESENTATIONS AND
WARRANTIES

 

A.            Mutual
Representations and Warranties

 

Each
Party represents, covenants and warrants to the other that:

 

1.             Existence.  It is a corporation, duly organized and validly
existing and with the power to undertake the obligations set forth in this
Contract.

 

53

 

2.             Authority.  All corporate action required to be taken by
it to execute, deliver and perform the terms of this Contract have been taken.

 

3.             Binding
Agreement.  The execution and
delivery of this Contract by it will cause this Contract to constitute a legal,
valid and binding obligation of it enforceable in accordance with its terms,
except where enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors
rights generally or general principles of equity.

 

B.            Contractor’s
Special Representations and Warranties

 

Contractor
represents, covenants and warrants to NSS that:

 

1.             Contract
Intellectual Property.  None of the
Contract Intellectual Property is, to the best of Contractor’s knowledge, the
subject of infringement or other violations of intellectual property
protections by any third party; and all of the Contract Intellectual Property
is free from any lien, claim or other encumbrance, including as a pledge of
collateral.  Contractor shall employ all
reasonable commercial efforts to retain all Contract Intellectual Property.

 

2.             Contract
Technology.  There are no claims
filed, or, to the best of Contractor’s knowledge, threatened that any of the
Contract Technology or the practice thereof infringe or violate in any way any
Patent or other intellectual property rights of any third party.  Contractor has the authority to grant to NSS
the licenses and rights to the Contract Technology according to the terms of
this Contract.

 

ARTICLE
26.  ASSIGNMENT

 

Neither
this Contract nor any of the rights, duties, and obligations of Contractor or
NSS under this Contract may be assigned or delegated by either Party without
the prior written consent of the other Party, not to be unreasonably withheld,
conditioned or delayed.  Any attempted
assignment or delegation, without such consent, shall be void and without
effect.  Notwithstanding the foregoing,
NSS may assign this Contract or any of its rights and obligations, including
but not limited to any warranties, security agreements and indemnities,
with a right to reassign, without Contractor’s consent: (i) to a subsidiary of
NSS, or (ii) to a joint venture in which NSS is a majority participant or holds
at least a twenty-five percent (25%) ownership interest; and either Party may
assign this Contract or any of its rights and obligations, including but not limited
to any 

 

54

 

warranties and indemnities,
with a right to reassign without consent of the other Party (x) to any entity
that acquires or succeeds, by merger or other vehicle, to all or substantially
all of the assigning Party’s assets, or (y) to a financial institution as
security in connection with a bona fide financing transaction in accordance
with the terms of Article 19 herein.  Any
assignment of the Contract shall not relieve the assignor of its obligations
hereunder unless the assignor provides the other Party with reasonable evidence
of the financial viability of the assignee, which evidence is reasonably
acceptable to such other Party, or unless such other Party otherwise agrees to
release the assignor of its obligations hereunder.  NSS shall not assign this Contract in any
manner that materially impairs Contractor’s rights under the Pledge Agreements.

 

This
Contract shall be binding upon and inure to the benefit of the Parties and
their respective permitted successors and assigns.

 

ARTICLE
27.  CONFIDENTIALITY

 

A.            Identification
of Proprietary Information

 

All
information, in whatever form, orally or in any written or electronic form,
that has been or may be disclosed in the future by one Party to the other in
connection with this Contract shall be deemed proprietary information, if
written, if marked “proprietary” or “confidential,” or if disclosed orally, if
so stated to the receiving Party by the disclosing Party at the time of
disclosure and reduced to writing no later than thirty (30) days after the
disclosure (together “Proprietary Information”).  In addition, and without limitation,
Contractor acknowledges and agrees that all information regarding NSS’ contemplated
use of or customers for the Spacecraft, areas of coverage or antenna plots,
potential types of traffic or related requirements, health and expected life of
existing satellites, the performance of the Spacecraft and any anomalies with
respect thereto, and all information that could be revealing of the foregoing,
shall be deemed NSS’ Proprietary Information and “Company Restricted
Information.”

 

B.            Restrictions
on Use, Disclosure

 

Neither
Party shall use the Proprietary Information of the other Party except for the
purpose of this Contract.  Neither Party
shall disclose the Proprietary Information of the other Party except:  (1) on a confidential and need-to-know (for
the purposes specified herein) basis to its employees, agents, and advisors
(and with respect to NSS, its insurance underwriters, launch service providers,
investors, lenders and TT&C 

 

55

 

operators), each of whom shall
be subject to comparable restrictions of confidentiality; (2) as to information
that is already rightfully in the possession of the receiving Party through
other means and without such confidentiality restrictions; (3) as to
information that is required to be disclosed under applicable law or by a valid
subpoena or other court or governmental order, decree, regulation or rule;
provided, however, that if disclosure is required under this provision, the
receiving Party shall advise the disclosing Party of the requirement to
disclose Proprietary Information prior to such disclosure and as soon as
reasonably practicable after the receiving Party becomes aware of such required
disclosure; and further provided that upon the request of the disclosing Party,
the receiving Party agrees to cooperate in good faith and at the expense of the
disclosing Party in any reasonable and lawful actions which the disclosing
Party takes to resist such disclosure, to limit the information to be disclosed
or to limit the extent to which the information so disclosed may be used or
made available to third parties; (4) as to information that is released for
public disclosure by the disclosing Party; (5) as to information that is
developed by the receiving Party independently of any Proprietary Information
of the disclosing Party.  Notwithstanding
any other rights of either Party, either Party may seek injunctive relief in
any court of competent jurisdiction against improper use or disclosure of
Proprietary Information.

 

C.            Company
Restricted Information

 

In
addition to the obligations set forth above, Contractor agrees that its
disclosure of Company Restricted Information under Paragraph 27.B. above shall
be limited to individuals within the Boeing Satellite Systems (BSS) business
unit of Contractor who have no responsibility for, or participation in, any
venture in which Contractor may have any interest that involves the direct
sales and/or leasing of satellite transponder capacity or the provision of any
satellite communications services, including any individuals who may have dual
roles.  Contractor employees outside
Contractor’s business unit who have responsibility for evaluation and oversight
of BSS’ operations will be provided Company Restricted Information only to the
extent required for performance of their duties and only after they are advised
of their responsibilities under this Contract.

 

56

 

D.            Standard
of Care

 

Each
Party agrees to exercise a level of care consistent with that employed by said
Party for its most highly restricted and proprietary Information to ensure
compliance with its obligations stated herein.

 

E.             Property
of Disclosing Party

 

Proprietary
Information shall be deemed the property of the disclosing Party and, upon
request, the receiving Party shall return or destroy all Proprietary
Information received from the disclosing Party, including any compilations
thereof, to the extent that either may be in tangible form.

 

F.             Confidential
Treatment of MOU Terms

 

Each
Party shall treat the terms of the MOU (as incorporated into this Contract) as
confidential and shall not disclose such terms to a third party (other than
such Party’s shareholders and to legal and financial advisors, on a
confidential basis, or as may be required to comply with a Party’s legal
reporting obligations) without the prior consent of the other Party.  To the extent permitted by law, prior to
making any disclosure of the terms or conditions of the MOU that is required to
comply with a Party’s legal reporting obligation (other than disclosures that
have previously been made in accordance with this Paragraph 27.F), the
disclosing Party shall provide at least twenty-four (24) hours’ prior notice of
the disclosure (together with draft text) to the other Party.  The Parties intend to use reasonable
commercial efforts to ensure that any permitted disclosures are as limited as
possible, subject to either Party’s legal reporting obligations.

 

ARTICLE 28.  PUBLIC RELEASE OF
INFORMATION

 

Each
Party shall use commercially reasonable efforts to obtain the prior written
approval of the other Party, which approval shall not be unreasonably withheld,
conditioned or delayed, concerning the content and timing of news releases and
other public disclosures (including in articles, brochures, advertisements,
prepared speeches and otherwise) of any material disclosure relating to the
health or performance of the Spacecraft, including any Failures affecting or
potentially affecting the Spacecraft.

 

57

 

ARTICLE 29.  NOTICES AND REPORTS,
AUTHORIZED REPRESENTATIVES

 

All
notices and reports to be provided to NSS or Contractor under this Contract
shall be in writing, in English, and sent to NSS or Contractor by courier, by
certified mail (postage prepaid) or by facsimile (with confirmation by courier
or certified mall) at the following addresses (or to such other address as each
Party may give the other by notice to the other in accordance with this
Article 29):

 

	
  NSS:

  	
  NSS-8
  Program Office

  
	
   

  	
  Building
  S01, M/S D381

  
	
   

  	
  c/o
  Boeing Satellite Systems, Inc.

  
	
   

  	
  P.O.
  Box 92919

  
	
   

  	
  Los
  Angeles, CA 90009-2919

  
	
   

  	
  Attention:
  NSS-8 Program Manager

  
	
   

  	
  Facsimile
  No.: 1-310-426-1443

  
	
   

  	
   

  
	
  with a separate

  	
  New
  Skies Satellites B.V.

  
	
  copy sent to:

  	
  Rooseveltplantsoen
  #4

  
	
   

  	
  2517KR
  The Hague

  
	
   

  	
  The
  Netherlands

  
	
   

  	
  Attention:
  Vice President, Space Segment Technology

  
	
   

  	
  Facsimile
  No.: +31 70 306 4285

  
	
   

  	
   

  
	
   

  	
  New
  Skies Satellites B.V.

  
	
   

  	
  Rooseveltplantsoen
  # 4

  
	
   

  	
  2517KR
  The Hague

  
	
   

  	
  The
  Netherlands

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
  Facsimile
  No.: +31 70 306 4289

  
	
   

  	
   

  
	
  CONTRACTOR:

  	
  Boeing
  Satellite Systems International, Inc.

  
	
   

  	
  P.O.
  Box 92919

  
	
   

  	
  Los
  Angeles, CA. 90009

  
	
   

  	
  Attention:
  XXX

  
	
   

  	
  Contracts Manager

  
	
   

  	
  Bldg.
  S01, Mail Sta. D324

  
	
   

  	
  Facsimile
  No.: (310) 364-8307

  

 

For
purposes of binding each Party under provisions of this Contract, the
“Authorized Representative” of NSS shall be its a) Chief Technology Officer,
currently Dr.  Stephen Stott, or b)
General Counsel, currently Thai Rubin, or c) Vice President, Space Segment
Technology Division, currently Mr. Leroy A. Argyle, and the Authorized
Representative of Contractor shall be its Contracts Manager, currently XXX.  

 

58

 

Each Party may change or add to
its list of Authorized Representatives by giving notice to the other Party
(signed by the notifying Party’s then-current Authorized Representative) pursuant
to the Contract notice provisions above.

 

ARTICLE
30.  OPTIONS

 

A.            Technical
Support

 

On
or before XXX, NSS may elect to
procure from Contractor up to XXX
labor months of technical support related to the control of unique Boeing 702
functionality.  This support would also
include consulting on NSS-developed PROC testing and participation in
associated post-test data analysis and resolution.  This support will be priced at a rate of XXX Dollars ($XXX) per month, which is equivalent to XXX Dollars ($XXX) per labor hour (in 2005 Dollars), plus any reasonable,
documented out-of-pocket costs or expenses, including without limitation
reasonable travel expenses.

 

B.            Replacement
Spacecraft

 

In
the event that after Launch and prior to Acceptance, the Spacecraft becomes a
Total Loss, NSS may, at its option exercisable within XXX days of the Total Loss event, elect to
procure a Replacement Spacecraft having the same design and specifications as
the Spacecraft.  The terms and conditions
related to the procurement of the Replacement Spacecraft shall be as set forth
in Paragraph 30.B of Amendment Number 2 to the Original Contract.

 

C.            Optional
Storage And Retest

 

1.             Storage
at Contractor’s Expense.  If the
Spacecraft has not been Launched by the Promised Delivery Date, at NSS’ option,
Contractor shall place the Spacecraft In storage at Contractor’s facilities, or
such other facilities as Contractor may arrange, which alternate facilities
must have been approved by NSS, for a period of up to XXX months. 
NSS may not terminate the Contract pursuant to Article 18 Paragraphs
1.B, 1.C, 1.D or the second clause of Paragraph 2 XXX after NSS has elected to store the Spacecraft.  Contractor shall continue to store, and
perform any necessary testing or refurbishment on, such Spacecraft, at
Contractor’s expense, until such Spacecraft is Launched, and Delivery and
Acceptance thereof has been completed under this Contract.

 

59

 

2.             Storage
at NSS’ Expense.  Following XXX storage of the Spacecraft by
Contractor, NSS may elect to direct Contractor to continue to store the
Spacecraft for an additional period of time provided that the total storage
period, including the earlier free period, does not exceed three (3) years.  The firm fixed prices for such storage shall
be as set forth in the table below:

 

	
   

  	
   

  	
  Storage Duration

  	
   

  
	
  Optional Storage Prices

  	
   

  	
  1 Year

  	
   

  	
  2 Years

  	
   

  	
  3 Years

  	
   

  
	
  Total Storage Price*

  	
   

  	
  $

  	
  XXX

  	
   

  	
  $

  	
  XXX

  	
   

  	
  $

  	
  XXX

  	
   

  
	
  Monthly Storage Fee Adjustment

  	
   

  	
  $

  	
  XXX

  	
   

  	
  $

  	
  XXX

  	
   

  	
  $

  	
  XXX

  	
   

  

 

* Total Storage Price adjusted downward by the Monthly Storage Fee
Adjustment if Spacecraft removed from storage before completion of applicable
year

 

The
price for any refurbishment and retest of the Spacecraft after storage is
included In the above prices.

 

In
the event that NSS elects to deliver the Spacecraft to storage for any reason,
NSS shall pay Contractor the Total Price in accordance with Article 5 as though
Acceptance had been achieved on the date the Spacecraft is put into storage,
subject to any adjustments or refunds if, after the Launch of the Spacecraft,
its performance is such that Price Adjustments are appropriate pursuant to
Paragraph 4.C and Exhibit F.

 

D.            Intentionally
Omitted

 

E.             In-Orbit
Test Location

 

NSS
has exercised an option set forth in the Original Contract to require
Contractor to supply all ground facilities necessary to conduct the lOT.  The price to supply such on ground facilities
has been included as part of the Total Price.

 

ARTICLE 31.  NSS FURNISHED
INFORMATION AND PROPERTY

 

Contractor
agrees, with respect to all Information and property, including but not limited
to equipment, models and devices, furnished by NSS under this Contract:

 

A.            Title

 

That
title to such Information and property shall remain exclusively in NSS.

 

60

 

B.            Risk of Loss

 

To
assume all risk of loss or damage, reasonable wear and tear excepted, to such
Information and property while in Contractor’s or any Subcontractor’s
possession or control.

 

C.            Use

 

To
ensure that such Information and property are used solely in the performance of
the Contract.

 

D.            Taxes

 

To
be responsible for payment of all taxes which become due by reason of
Contractor’s or any Subcontractor’s possession, control or use of such
Information and property, and to comply with all requirements of said laws,
including making payment of any interest or penalties related to or arising
from such taxes.

 

E.             Encumbrances

 

To
ensure that no lien, encumbrance, pledge or other interest whatsoever attaches
to such Information and property as a result of Contractor’s or any
Subcontractor’s acts or omissions.

 

F.             Return

 

Except
as may otherwise be provided in this Contract to return such Information and
property to NSS upon completion of all Work or termination of this Contract.

 

G.            Damages

 

That
in no event will NSS be liable for special, indirect or consequential damages
related to such Information and property or arising from the use thereof.

 

ARTICLE 32.  HAZARDOUS MATERIAL
IDENTIFICATION AND MATERIAL SAFETY DATA

 

Contractor
shall comply with applicable national, state, and local laws, codes,
ordinances, and regulations (including the acquisition of licenses and permits)
in connection with any hazardous material used during Launch processing.  Contractor 

 

61

 

agrees to provide the right to
use and disclose such data relating to hazardous materials as necessary to
comply with this Article.

 

ARTICLE
33.  APPLICABLE LAWS

 

This
Contract shall be interpreted, construed and governed by the laws of the State
of New York, U.S.A., except to the extent that the conflicts of laws rules of
New York would require the application of the laws of another
jurisdiction.  The United Nations
Convention on the International Sale of Goods does not apply to this Contract.

 

ARTICLE
34.  RESERVED

 

ARTICLE
35.  RESERVED

 

ARTICLE
36.  GENERAL

 

A.            Severability

 

If
any provision of this Contract is declared or found to be illegal,
unenforceable or void, the Parties shall negotiate in good faith to agree upon
a substitute provision that is legal and enforceable and as nearly as possible
consistent with the intentions underlying the original provision.  If the remainder of this Contract is not
materially affected by such declaration or finding and is capable of
substantial performance, then the remainder shall be enforced to the extent
permitted by law.

 

B.            Cumulative
Rights/Waivers

 

All
rights and remedies conferred hereunder or otherwise shall be cumulative and
may be exercised singly or concurrently. 
No delay or omission by either Party to exercise any right or power
shall impair such right or power or be construed to be a waiver thereof.  No payment of money by any person or entity
shall be construed as a waiver of any right or power under this Contract.  A waiver by any Party of any of the
covenants, conditions or contracts to be performed by the other or any breach
thereof shall not be construed to be a waiver of any succeeding breach thereof
or of any other covenants, conditions or contracts herein contained.  No change, waiver or discharge 

 

62

 

hereof shall be valid unless in
writing and signed by the Authorized Representative of the Party against which
such change, waiver or discharge is sought to be enforced.

 

C.            Gender/Captions

 

As
used herein, the singular shall include the plural and the plural may refer
only to the singular.  The use of any
gender shall be applicable to all genders. 
The captions contained herein are for purposes of convenience only and
are not a part of this Contract.

 

D.            Relationship
of the Parties

 

It
is expressly understood that Contractor, on the one hand, and NSS, on the other
hand, intend by this Contract to establish the relationship of independent
contractors and do not intend to undertake the relationship of principal and
agent or to create a joint venture or partnership between them or their
respective successors in interest. 
Neither Contractor, on the one hand, nor NSS, on the other hand, shall
have any authority to create or assume in the name or on behalf of the other
Party any obligation, expressed or implied, nor to act or purport to act as the
agent or the legally empowered representative of the other Party hereto for any
purpose whatsoever.

 

E.             Construction

 

This
Contract and the Exhibits and Schedules hereto, have been drafted jointly by
the Parties and in the event of any ambiguity in the language hereof, there
shall be no inference drawn in favor of or against either Party.

 

F.             Including/Time

 

Whenever
the terms “including” or “include” are used in this Contract in connection with
a single item or a list of items within a particular classification (whether or
not the term is followed by the phrase “but not limited to” or words of similar
effect) that reference shall be interpreted to be illustrative only, and shall
not be interpreted as a limitation on, or an exclusive enumeration of the items
within that classification.  The dates
for Delivery of Items and dates and times for all other purposes under this
Contract shall be defined in relation to Greenwich Mean Time.

 

63

 

G.            Survival

 

Termination
or expiration of this Contract for any reasons shall not release either Party
from any liabilities or obligations set forth in this Contract which (i) the
Parties have expressly agreed shall survive such termination or expiration,
including the obligations in Articles 9, 11, 13, 14, 15, 16, 17, 18, 21, 22,
23, 26, 27 and 28, or (ii) remain to be performed or by their nature would be
intended to be applicable following any such termination or expiration.  In the event of any purported termination or
expiration of this Contract prior to the termination of the Contractor’s
security interest in accordance with Paragraph 19.E, the provisions of Article
19 shall survive.

 

H.            Entire
Agreement

 

This
Contract:  (i) consists of this document
and the referenced Exhibits in Article 2 of this Contract and the Schedules
attached thereto and all RDWs and Contract Change Notices executed by the Parties
on or before the date hereof; (ii) constitutes the entire agreement of the
Parties with respect to the subject matter hereof; and (iii) supersedes all
prior correspondence, representations, proposals, negotiations, understandings,
and agreements of the Parties, oral or written, with respect to the subject
matter hereof, including without limitation the MOU and the Original
Contract.  No addition to, deletion of,
or deviation from the provisions of this Contract shall be binding against NSS
unless in writing and signed by an Authorized Representative of NSS or against
Contractor unless in writing and signed by an Authorized Representative of
Contractor.

 

64

EXHIBIT 
A

 

SPACECRAFT PERFORMANCE SPECIFICATIONS

 

 

[Entire Exhibit Redacted pursuant to 

 

U.S. International Traffic in Arms Regulation
(ITAR),

 

22 CFR 120-130]

 

 

EXHIBIT 
B

 

STATEMENT OF WORK

 

 

[Entire Exhibit Redacted pursuant to 

 

U.S. International Traffic in Arms Regulation
(ITAR),

 

22 CFR 120-130]

 

 

EXHIBIT 
C

 

PRODUCT ASSURANCE PLAN

 

 

[Entire Exhibit Redacted pursuant to 

 

U.S. International Traffic in Arms Regulation
(ITAR),

 

22 CFR 120-130]

 

 

EXHIBIT 
D

 

TEST PLAN

 

 

[Entire Exhibit Redacted pursuant to 

 

U.S. International Traffic in Arms Regulation
(ITAR),

 

22 CFR 120-130]

 

 

EXHIBIT 
E

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (the “Agreement”) is made and entered into as of
this 22nd day of February, 2005, by and among New Skies Satellites B.V. (“New
Skies”), Boeing Satellite Systems International, Inc. (“BSSI”), and XXX, a national banking association duly organized and
existing under the laws of the United States of America, with its principal
office in Chicago, Illinois (the “Escrow Agent”).

 

WHEREAS, New Skies and BSSI have entered into an amended and restated
Composite Compiled NSS-8 Spacecraft and Associated Equipment and Services
Contract (Number NSS-20-03-01) dated February 22, 2005 (the “NSS-8 Contract”)
pursuant to which, inter alia,
BSSI will provide to New Skies the NSS-8 satellite and certain related items;

 

WHEREAS, pursuant to Article 5 of the NSS-8 Contract, New Skies is to
place Thirty Million Dollars ($30,000,000.00) (the “Escrow Amount”) into escrow
pursuant to this Agreement;

 

WHEREAS, pursuant to Article 5 of the NSS-8 Contract, the Escrow Amount
is to be paid to BSSI XXX in
accordance with the NSS-8 Contract, on the conditions and subject to the
restrictions set forth in the NSS-8 Contract; and

 

WHEREAS, under certain circumstances set forth in the NSS-8 Contract
all or a portion of the Escrow Amount will be refunded to New Skies rather than
paid to BSSI.

 

NOW, THEREFORE, in consideration of the mutual
promises contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

ARTICLE I

ESTABLISHMENT OF ESCROW

 

1.1           New
Skies and BSSI hereby appoint the Escrow Agent, and the Escrow Agent hereby
agrees to serve, as the escrow agent and depositary subject to the terms and
conditions set forth herein.  The Escrow
Agent shall receive the Escrow Amount and agrees to hold the Escrow Amount in a
separate and distinct account (the “Escrow Account”) which, subject to the
terms and conditions of this Agreement, will be available for disbursement upon
a draw made by BSSI at the Escrow Agent’s office in Chicago, Illinois.  The Escrow Agent shall not distribute or
release any of the Escrow Fund except in accordance with the express terms and
conditions of this Agreement.

 

 

1.2           Subsequent
to the execution of this Agreement, New Skies will deposit the Escrow Amount
with the Escrow Agent, which shall be acknowledged by New Skies, BSSI, and the
Escrow Agent.  The Escrow Amount,
together with any investment earnings thereon, shall hereinafter collectively
be referred to as the “Escrow Fund.”

 

ARTICLE II

INVESTMENT OF ESCROW FUND; INTEREST PAYMENTS

 

2.1           The
Escrow Amount shall be held in a XXX, or as may
be jointly directed in writing by New Skies and BSSI. All income earned on the
Escrow Fund shall be taxable to New Skies until the Satellite Delivery Date (as
defined below) and to BSSI after the Satellite Delivery Date and shall be
credited to the Escrow Account until it is disbursed pursuant to Section 2.3.  The Escrow Agent shall have no responsibility
for the tax consequences of this Agreement. 

 

2.2           The
Escrow Agent shall not be responsible to New Skies, BSSI or any other person or
entity for any loss or liability arising in respect of any directed investment
in Section 2.1 except to the extent that such loss or liability arose from the
Escrow Agent’s gross negligence or willful misconduct.

 

2.3           BSSI
shall provide written notice to the Escrow Agent (with a copy to New Skies) XXX.  All payments of
interest and other investment earnings to New Skies and BSSI in accordance
herewith shall be made to such account as may be notified in writing by New
Skies or BSSI, respectively, to the Escrow Agent.  In the event of a dispute under Article III,
unless otherwise instructed in writing by BSSI and New Skies, the Escrow Agent
shall place interest and any other investment earnings on any disputed amount
into the Escrow Account.

 

ARTICLE III

DISBURSEMENTS FROM THE ESCROW ACCOUNT

 

3.1           Except to the extent
expressly permitted in Section 2.3 and Article IV hereof, the Escrow Agent
shall only disburse amounts held in the Escrow Account upon receipt of a
written notice (“Disbursement Request”) from BSSI specifying (i) the amount to
be disbursed, (ii) the date of disbursement, (iii) the recipient of the
disbursement, and (iv) the manner of disbursement and delivery
instructions.  Such Disbursement Request
shall be provided to the Escrow Agent no less than seven (7) Business Days
prior to the requested disbursement date.

 

3

 

3.2           The
Escrow Agent shall give New Skies at least five (5) Business Days’ prior
written notice before making any disbursement hereunder, which notice shall
include a copy of the Disbursement Request. XXX

 

3.3           Nothing
in Section 3.2 shall prohibit the Escrow Agent XXX.

 

ARTICLE IV

COMPENSATION; EXPENSES

 

4.1           As compensation for its
services to be rendered under this Agreement, for each year or any portion
thereof, the Escrow Agent shall receive a fee in the amount specified in Schedule A
to this Agreement and shall be reimbursed upon request for all expenses,
disbursements and advances, including reasonable fees of outside counsel, if
any, reasonably incurred or made by it in connection with the carrying out of
its duties under this Agreement.

 

4.2           New
Skies shall pay the Acceptance Fee and the Annual Administrative Fee for the
first one-year period as set forth in Schedule A upon execution of the Escrow
Agreement.  The Escrow Agent shall bill
the parties for each subsequent Annual Administrative Fee as it becomes
due.  New Skies and BSSI, jointly and
severally, shall be responsible for paying such amount.  Any fees or expenses not paid as provided,
prior to final termination of this Agreement, shall constitute a charge on the
deposits hereunder of the party or parties responsible for the payment of the
fees and expenses, and the Escrow Agent shall not be required to make final
distribution or delivery of said deposits until its outstanding fees and
expenses have been paid. The Administrative Fee shall be pro rated on a
six-month basis for any partial year period.

 

4.3           Subject
to Section 4.2, the Escrow Agent agrees that it will not deduct any amounts
from, or exercise set-off against any amounts in, the Escrow Fund, whether in
relation to amounts owing by New Skies, BSSI or any other party, hereunder or
otherwise.

 

ARTICLE V

EXCULPATION AND INDEMNIFICATION

 

5.1           The obligations and
duties of the Escrow Agent are confined to those specifically set forth in this
Agreement.  In the event that any of the
terms and provisions of any other agreement between any of the parties hereto
conflict or are inconsistent with any of the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall

 

4

 

govern and control the obligations and duties of the Escrow Agent in
all respects.  The Escrow Agent shall not
be subject to, nor be under any obligation to ascertain or construe the terms
and conditions of any other instrument, whether or not now or hereafter
deposited with or delivered to the Escrow Agent or referred to in this
Agreement, nor shall the Escrow Agent be obligated to inquire as to the form,
execution, sufficiency, or validity of any such instrument nor to inquire as to
the identity, authority, or rights of the person or persons executing or
delivering same; provided that in the event that New Skies and BSSI
settle any dispute arising out of or in connection with the NSS-8 Contract as
provided in that contract, the Escrow Agent shall comply with any decision
rendered by the arbitrators or by a court of law in accordance therewith.  The Escrow Agent is hereby expressly
authorized to comply with and obey awards of any such arbitrators and orders,
judgments or decrees of any such court of law, notwithstanding any notices,
warnings or other communications from any party or any other person to the
contrary.  In case the Escrow Agent obeys
or complies with any such award, order, judgment or decree, the Escrow Agent
shall not be liable to any of the parties hereto or to any other person by
reason of such compliance, notwithstanding any such award, order, judgment or
decree being subsequently reversed, modified, annulled, set aside, vacated or
found to have been entered without jurisdiction.

 

5.2           The Escrow Agent shall
not be personally liable for any act that it may do or omit to do hereunder in
good faith and in the exercise of its own best judgment.  Any act done or omitted to be done by the
Escrow Agent pursuant to the advice of its attorneys shall be deemed
conclusively to have been performed or omitted in good faith by the Escrow
Agent.

 

5.3           In the event the Escrow
Agent is notified of any dispute, disagreement or legal action between New
Skies and BSSI and any third party relating to or arising in connection with
the escrow, the Escrow Fund, or the performance of the Escrow Agent’s duties
under this Agreement, the Escrow Agent will not be required to determine the
controversy or to take any action regarding it. 
The Escrow Agent may hold all documents and funds and may wait for
settlement of any such controversy by final appropriate legal proceedings,
arbitration, or other means as, in the Escrow Agent’s discretion, it may
require.  In such event, the Escrow Agent
will not be liable for interest (other than interest and any other investment
earnings earned by the Escrow Amount during such period) or damage.  Furthermore, the Escrow Agent may, at its
option, file an action of interpleader requiring the parties to answer and
litigate any claims and rights among themselves, provided that such action must
be brought in accordance with Article XV hereof if the dispute involves solely
New Skies and BSSI.  The Escrow Agent is
authorized, at its option, to deposit with the Clerk of the Court or the
Arbitrator(s), as applicable, all documents and funds held in escrow, except
all costs, expenses, charges, and reasonable attorneys’ fees incurred by the
Escrow Agent due to the interpleader action and which New Skies and BSSI
jointly agree to pay.  Upon initiating
such action, the Escrow Agent shall be fully released and discharged of and
from all obligations and liability imposed by the terms of this Agreement.

 

5

 

5.4           New Skies and BSSI
hereby agree, jointly and severally, to indemnify and hold the Escrow Agent,
and its directors, officers, employees, and agents, harmless from and against
all costs, damages, judgments, reasonable attorneys’ fees (whether such
attorneys shall be regularly retained or specifically employed), expenses,
obligations and liabilities of every kind and nature which the Escrow Agent,
and its directors, officers, employees, and agents, may incur, sustain, or be
required to pay in connection with or arising out of this Agreement, unless the
aforementioned results from the Escrow Agent’s gross negligence or willful
misconduct, and to pay the Escrow Agent on demand the amount of all such costs,
damages, judgments, attorneys’ fees, expenses, obligations, and liabilities.
The costs and expenses of enforcing this right of indemnification also shall be
paid jointly by New Skies and BSSI.  The
foregoing indemnities in this paragraph shall survive the resignation or substitution
of the Escrow Agent or the termination of this Agreement.

 

ARTICLE VI

TERMINATION OF AGREEMENT

 

6.1           This
Agreement may be terminated at any time upon the receipt by the Escrow Agent of
three (3) Business Days prior written notice of termination executed jointly by
New Skies and BSSI directing the distribution of all assets then held by the
Escrow Agent under and pursuant to this Agreement.  This Agreement shall automatically terminate
if and when all amounts in the Escrow Account (including all the securities in
which any of the funds deposited into the Escrow Account shall have been
invested) shall have been distributed by the Escrow Agent in accordance with
the terms of this Agreement; provided, however, that the rights
and obligations of the parties hereto shall survive the termination hereof.

 

ARTICLE VII

RESIGNATION OF ESCROW AGENT

 

7.1           The
Escrow Agent may resign at any time upon giving at least thirty (30) days prior
written notice to New Skies and BSSI; provided, however, that no
such resignation shall become effective until the appointment of a successor
escrow agent which shall be accomplished as follows: New Skies and BSSI shall
use commercially reasonable efforts jointly to select a successor escrow agent
within thirty (30) days after receiving such notice.  If New Skies and BSSI fail to appoint a
successor escrow agent within such time, the Escrow Agent shall have the right
to appoint a successor escrow agent.  The
successor escrow agent shall execute and deliver an instrument accepting such
appointment and it shall, without further acts, be vested with all the estates,
properties, rights, powers, and duties of the predecessor escrow agent as if
originally named as escrow agent.  Upon
delivery of such instrument, the Escrow Agent shall be discharged from any
further duties and liability under this Agreement. The Escrow Agent shall pay
any interest or other investment income earned up to the date of transfer (less
any outstanding fees and

 

6

 

expenses) and
shall be paid any additional outstanding fees and expenses prior to
transferring assets to a successor escrow agent.

 

ARTICLE VIII

NOTICES

 

8.1           All notices required by this Agreement shall
be in writing and shall be deemed to have been received (a) immediately if sent
by facsimile transmission (with a confirming copy sent the same Business Day by
registered or certified mail), or by hand delivery (with signed return
receipt), or (b) the next Business Day if sent by nationally recognized
overnight courier, in any case to the respective addresses as follows:

 

If to New Skies:

New Skies Satellites B.V.

Rooseveltplantsoen #4

2517 KR The Hague

The Netherlands

Attention: Mr. Derek Simmons, Manager Financial Analysis

Telephone: 011-31-70-306-4132

Fax: +011-31-70-306-4288

 

With a copy to:

New Skies Satellites B.V.

Rooseveltplantsoen #4

2517 KR The Hague

The Netherlands

Attention: Mr. Thai Rubin, General Counsel

Telephone: 011-31-70-306-4116

Fax: +011-31-70-306-4289

 

If to Boeing Satellite Systems International, Inc.:

 

Boeing Satellite Systems International, Inc.

P.O. Box 92919

Los Angeles, CA  90009

Attention: XXX

Bldg. S01, Mail Sta. D324

Telephone:

Fax: (310) 364-8307

 

If to the Escrow Agent:

 

XXX

 

7

 

 

 

ARTICLE IX

GOVERNING LAW

 

9.1           This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York and the parties hereto consent to jurisdiction in the State
of Illinois and venue in any state or Federal court located in the City of
Chicago.  

 

ARTICLE X

AUTOMATIC SUCCESSION

 

10.1         Any bank or corporation
into which the Escrow Agent may be merged or with which it may be consolidated,
or any bank or corporation to whom the Escrow Agent may transfer a substantial
amount of its escrow business, shall (following written notice to New Skies and
BSSI) be the successor to the Escrow Agent without the execution or filing of
any paper or any further act on the part of any of the parties, anything herein
to the contrary notwithstanding.

 

ARTICLE XI

AMENDMENT AND MODIFICATION

 

11.1         New
Skies, BSSI and the Escrow Agent may amend, modify, and/or supplement this
Agreement as they may mutually agree in writing.

 

ARTICLE XII

COUNTERPARTS

 

12.1         This
Agreement may be executed in any number of counterparts, each of which shall be
an original and all of which taken together shall constitute one and the same
instrument.  In making proof of this
Agreement it shall be necessary to produce or account for only one such
counterpart signed by or on behalf of the party sought to be charged herewith.

 

ARTICLE XIII

INTERPRETATION

 

13.1         The headings used in this
Agreement are for convenience only and shall not constitute a part of this
Agreement.

 

13.2         As
used in this Agreement, “Business Day” means a day other than a Saturday,
Sunday, or other day when banking institutions in Chicago, Illinois are
authorized or required by law or executive order to be closed.

 

8

 

ARTICLE XIV

SEVERABILITY

 

 14.1        The
parties agree that if any provision of this Agreement shall under any
circumstances be deemed invalid or inoperative this Agreement shall be
construed with the invalid or inoperative provisions deleted and the rights and
obligations of the parties shall be construed and enforced accordingly.

 

ARTICLE XV

RESOLUTION OF DISPUTES

 

15.1         Any
controversy or claim arising out of or relating to this Agreement or the breach
hereof or any unilateral Disbursement Request (but excluding any dispute that
arises out of or relates to the NSS-8 Contract) shall be settled by arbitration
in accordance with commercial rules of the American Arbitration Association (“AAA”).  Arbitration proceedings conducted pursuant to
this Article XV shall be held in Chicago, Illinois.

 

15.2         Arbitrations shall be
conducted by a single arbitrator (the “Arbitrator”) selected at random
from a list of arbitrators maintained in the office of AAA in Chicago,
Illinois.  The Arbitrator must be a
person experienced in corporate law or the law of commercial finance and must
have served as an arbitrator in not less than three prior commercial
arbitrations involving primarily questions of commercial or corporate law
conducted under the AAA rules.  The
Arbitrator may not be a person who ever has been an affiliate of or attorney
for any party or for any of their respective affiliates.

 

15.3         The
parties shall allow and participate in discovery in accordance with the United
States Federal Rules of Civil Procedure for a period of 90 days after the
filing of an answer or other responsive pleading.  Unresolved discovery disputes may be brought
to the attention of the Arbitrator for resolution.

 

15.4         Any provisional remedy
that would be available from a court of law shall be available from the
Arbitrator to the parties pending arbitration. 
Any party may, without inconsistency with this Agreement, apply to any
court of proper jurisdiction and seek injunctive relief to maintain the status
quo until the arbitration award is rendered or the controversy is otherwise
resolved.

 

15.5         The Arbitrator’s award
shall be made in writing, but shall not make any findings of fact or
conclusions of law.  The Arbitrator shall
have no authority to award punitive or other damages not measured by the
prevailing party’s actual damages and may not, in any event, make any ruling,
finding, or award that does not conform to the terms and conditions of this
Agreement and the NSS-8 Contract. 
Judgment on any arbitration award may be entered by the Arbitrator or by
any party in any court having jurisdiction thereof.  No party or Arbitrator may disclose the
existence, content, or results of any arbitration or arbitration award without
the prior written consent of both parties except to the extent necessary to
enter and enforce a judgment based upon such award.

 

9

 

15.6         The award of the
Arbitrator shall be final and not subject to appeal.  Each party hereby waives the benefit of any
applicable law that would permit it to appeal the decision of the Arbitrator to
any court or other authority.

 

15.7         Any
Arbitration conducted pursuant to this Article XV shall relate solely to
controversies and claims arising under or relating to this Agreement or the
breach hereof.  New Skies and BSSI shall
resolve any dispute or disagreement arising under or relating to the NSS-8 Contract
in accordance with Article 21 thereof, including its arbitration provisions
(which currently provide for arbitration under the Rules of Conciliation and
Arbitration of the International Chamber of Commerce by three arbitrators in an
arbitration conducted in the United Kingdom).

 

15.8         All
fees and expenses of the arbitration shall be borne by the parties
equally.  However, each party shall bear
the expense of its own counsel, experts, witnesses, and preparation and
presentation of proofs.  Notwithstanding
the foregoing, the Arbitrator shall be entitled to tax and assess costs against
any party (including the fees of attorneys and arbitrators) to the extent that
the Arbitrator finds that such party delivered a unilateral Disbursement
Request or a protest of a Disbursement Request, or any portion thereof, on a
basis which was unreasonable, speculative or primarily for the purpose of
delaying the exercise of rights by the prevailing party.

 

15.9         The
provisions of this Article XV shall survive termination of this Agreement.  Any dispute regarding the applicability of
this Article XV to a particular claim or controversy shall be arbitrated as
provided in this Article XV.

 

[The next page is the
signature page]

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered this Agreement as of
the day and year first above written.

 

	
   

  	
  NEW SKIES SATELLITES B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOEING SATELLITE
  SYSTEMS

  
	
   

  	
  INTERNATIONAL,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

10

 

	
   

  	
  XXX, as Escrow Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

CHIDMS1/476030.3

 

11

 

SCHEDULE A

 

ESCROW AGENT

SCHEDULE OF FEES

 

	
  Acceptance Fee:

  	
  $

  	
  XXX

  
	
   

  	
   

  	
   

  
	
  Annual Administration Fee:

  	
  $

  	
  XXX

  

 

The
Acceptance and first year’s Annual Administration Fees are due upon execution
of the Escrow Agreement.

 

Any investment transaction not in a
money market fund or a XXX account
will incur a $125.00 per transaction fee. The parties to the Agreement understand
and agree that the Escrow Agent may receive certain revenue on certain mutual
fund investments.  These revenues take
one of two forms:

 

Shareholder Servicing Payments: The Escrow
Agent may receive Shareholder Servicing Payments as compensation for providing
certain services for the benefit of the Money Market Fund Company.  Shareholder Services typically provided by XXX include the maintenance of shareholder ownership
records, distributing prospectuses and other shareholder information materials
to investors and handling proxy-voting materials. Typically, Shareholder
Servicing payments are paid under a Money Market Fund’s 12b-1 distribution plan
and impact the investment performance of the Fund by the amount of the fee. The
shareholder servicing fee payable from any money market fund is detailed in the
Fund’s prospectus that will be provided to you.   

 

Revenue Sharing Payments: The Escrow Agent
may receive revenue sharing payments from a Money Market Fund Company. These
payments represent a reallocation to the Escrow Agent of a portion of the
compensation payable to the fund company in connection with your account’s
money market fund investment. Revenue Sharing payments constitute a form of fee
sharing between the fund company and the Escrow Agent and do not, as a general
rule, result in any additional charge or expense in connection with a money
market fund investment, are not paid under a 12b-1 plan, and do not impact the
investment performance of the Fund.  The
amount of any revenue share, if any, payable to Escrow Agent with respect to
your account’s investments is available upon request.

 

All out-of-pocket expenses will be billed at the Escrow Agent’s
cost.  Out-of-pocket expenses include,
but are not limited to, costs of professional services (e.g. legal or
accounting), postage (including express mail and overnight delivery charges),
and copying charges.

 

 

EXHIBIT  F

 

METHOD OF ADJUSTMENT TO TOTAL PRICE

 

 

Confidential Treatment Requested

 

For Entire Exhibit

 

2

 

EXHIBIT 
G

 

EXPORT LAWS COMPLIANCE PLAN
 
G.1          Export Licensing and Compliance, Management Resources and Process
 
During the period of this Contract, the Contractor shall maintain an Export Compliance Office to support the United States government licensing and export requirements related to the NSS-8 spacecraft program. The Contractor shall identify for NSS the title, responsibilities and the location of the unit of the Office that is responsible for particular export-licensing functions under this Contract and shall ensure that each such unit of the Office is staffed with export specialists who will carry out their functions by drawing upon the technical expertise of the Contractor.
 
The Contractor’s licensing and technical specialists shall be responsible for preparing, submitting, monitoring status and following up on processing of all applications that are required for the NSS-8 program under the International Traffic in Arms Regulations (“ITAR”) administered by the Office of Defense Trade Controls, U.S. Department of State (“ODTC”). The Contractor shall ensure that such license preparation begins in a timely manner with adequate lead-time for approval cycles, recognizing that NSS will be required to provide documents and review draft agreements in a timely manner, and that all license paperwork and technical documents meet the requirements of the provisions of the ITAR. The Contractor shall interface with all U.S. government offices that are involved in the processing and review of ITAR license applications including ODTC and the Defense Threat Reduction Agency (“DTRA”).
 
Contractor’s Export Compliance staff shall with the cooperation of

 

 

NSS respond expeditiously to any U.S. government questions or concerns regarding applications to ODTC under the ITAR or regarding the NSS-8 program with a view to resolving issues promptly to permit final processing of pending applications. Contractor’s export compliance staff shall also prepare, submit, monitor and support all administrative paperwork necessary for the mandatory Congressional notification for the sale of commercial communications satellites to non-U.S. buyers when such sales exceed a value of $50 million USD.
 
         Within 60 days of the signature of this Contract, the Export Compliance Office shall prepare and submit to NSS for prior approval an export license administrative plan that will identify export licensing requirements for the entire NSS-8 program, from program start to launch and final delivery. This plan shall show milestones for preparing, seeking and obtaining all required ODTC authorizations. The purpose of this plan shall be to minimize delay associated with seeking required authorization for the export of defense articles, including technical data, and defense services for the NSS 8 program. The Export Compliance Office will be responsible for updating this plan as and when circumstances require.
 
G.2          New Skies Networks Inc. and NSS Access to Program Information
 
For all purposes relating to the application of the ITAR to the export from the United States of defense articles, including technical data, and defense services, Contractor shall treat New Skies Networks Inc. (“NSNI”) as a “United States person” under the ITAR, provided that NSNI maintains its registration in good standing with ODTC. Contractor shall also treat as “United States persons” under the ITAR all United States citizens and U.S. permanent resident aliens who are employees of NSNI or that are consultants or independent contractors. Accordingly, Contractor shall without prior ODTC authorization furnish defense articles, including technical data, and defense services relating to the NSS-8 program to NSNI or to U.S. citizen employees, consultants and independent contractors of NSNI, provided that such articles or services are not subject to specific restriction for release to such persons under the terms and conditions of applicable ODTC export licenses issued to Contractor or NSS and provided also that NSNI has provided Contractor with appropriate written assurances that NSNI will not release such articles or services to foreign persons, as defined by the ITAR, without prior ODTC authorization. For the avoidance of doubt, from EDC until the date that an export license for the Spacecraft is obtained, Contractor agrees to treat NSNI, all U.S. citizens and U.S. permanent resident aliens who are employees of NSNI or that are consultants

 

2

 

or independent contractors of NSNI as U.S. persons under the ITAR.
 
G.3          NSS Program Licenses
 
                In accordance with the Statement of Work and Spacecraft Performance Specification herein and with this Exhibit G, Contractor anticipates various U.S. Government authorizations and licenses will be required to support the export of technical data and associated defense services during the period of performance of this Contract. These may include, but may not be limited to, the following authorizations and licenses for which Contractor will have the responsibilities set forth in Section G.1 above: Technical Assistance Agreements
 
a)             Program Services Technical Assistance Agreement (TAA) providing for export of the technical data and defense services for the full scope of the development and production Work under this Contract, including daily technical interactions, design reviews, test data reviews, technical meetings, initial mission/on-orbit support, and certain deliverable software.
 
b)            Launch Services TAA providing for export of the technical data and defense services to all the launch service providers as required in accordance with this Contract to cover activities related to launch vehicle interface definition and launch campaign support.
 
c)             Customer Service TAA providing for export of technical data and services for efforts associated with long-term, on-orbit support of the Spacecraft.
 
Manufacturing Licensing Agreements (MLAs)
 
MLAs to authorize the export of ITAR controlled technical data and defense services to support subcontracts for the manufacture of hardware components for the Spacecraft by non-U.S. suppliers.
 
DSP-5 Licenses
 
a)             DSP-5 licenses for the shipment of the Spacecraft and related fuel and spare parts, as well as any other defense articles required in connection with launches because of the nature of the launch vehicle or the launch location.
 
b)            DSP-5 licenses for shipment and presentation of specific data items associated with launch-related insurance briefings, and related DSP-83s to be executed by insurance underwriters.
 
c)             DSP-5 licenses for shipment of any satellite control software to NSS ground control facilities.

 

3

 

d)            DSP-5 licenses for shipment of the Dynamic Satellite Simulator software.
 
e)             DSP-5 licenses for the shipment of flight software source code.
 
f)             DSP-5 and other required approvals for encryption keys and technical data relating to the command encryption software.
 
DSP-73 Licenses
 
a)             DSP-73 licenses for the temporary import and/or export of launch campaign support equipment to the launch site including mechanical support equipment
 
b)            DSP-73 licenses for shipment of mission/in-orbit test support equipment to the relevant non-U.S. sites, including mission control centers and tracking sites.
 
DSP-61 Licenses
 
DSP-61 licenses to authorize the temporary import and re-export of hardware and data that may be required for the launch vehicle adapter in order to perform a fit check.
 
G.4          Alternative Launch Vehicle Licenses
 
Contractor shall maintain and/or apply for the required export licenses and agreements related to one alternative non-U.S. launch services provider in a manner consistent with the schedule requirements of Article 8.D, Option to Change Launch Services.
 
G.5          License Process Monitoring
 
Contractor shall during the performance of this Contract abide by the course of action and processes as described above and shall make every reasonable effort to ensure compliance with the procedures outlined in order to permit compliance with timetables established under this Contract. Contractor shall seek to have all export license applications processed expeditiously such that no NSS-8 program milestone is affected by any U.S. Government administrative processing delay including, in particular, action by ODTC. Contractor shall keep NSS informed by way of written weekly status reports of the progress of all export license applications and approvals, including the status of license applications both within the Contractor’s organization and within the U.S. Government until such time as all necessary export licenses are obtained.

 

4

 

EXHIBIT 
H

 

AGREEMENT OF NON-POSSESSORY PLEDGE OF ASSETS
(NSS-8)

 

(Dated 22 February 2005 attached)

 

5

 

AGREEMENT
OF NON-POSSESSORY PLEDGE OF ASSETS

 

between

 

NEW SKIES SATELLITES B.V.

 

as Pledgor 

 

and

 

BOEING SATELLITE SYSTEMS INTERNATIONAL, INC.

 

as Pledgee

 

 

NSS-8

 

 

 

6

 

INDEX

 

	
  1

  	
  DEFINITIONS
  AND INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  PLEDGE

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  ACCESSORY
  RIGHTS AND ANCILLARY RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  UNDERTAKINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  CONSENT

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  ENFORCEMENT
  AND POWER OF ATTORNEY

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  11

  	
  DISPUTES

  	
   

  
	
   

  	
   

  	
   

  
	
  12

  	
  COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  13

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  14

  	
  LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  15

  	
  LIMITATION;
  WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  16

  	
  SECURITY
  INTEREST ABSOLUTE

  	
   

  
	
   

  	
   

  	
   

  
	
  17

  	
  AMENDMENT
  OF THIS AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  18

  	
  GOVERNING
  LAW AND JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  19

  	
  SEVERABILITY
  OF PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  20

  	
  REMEDIES
  AND PREVALENCE

  	
   

  

 

7

 

	
  21

  	
  REGULATORY
  MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  22

  	
  REGISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  23

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX 1

  	
  LIST OF
  TT&C EQUIPMENT AND SOFTWARE

  	
   

  

 

8

 

THIS AGREEMENT OF NON-POSSESSORY PLEDGE OF ASSETS

 

IS DATED 22 FEBRUARY  2005,

 

BETWEEN:

 

1              New Skies Satellites B.V., a private
company with limited liability (besloten
vennootschap), incorporated and existing under the laws of The
Netherlands, with corporate seat in Amsterdam, The Netherlands, having its
registered address at Rooseveltplantsoen 4, 2517 KR The Hague, The Netherlands,
registered with the Commercial Register under number 30146277 (“New Skies” or
the “Pledgor”); and 

 

2              Boeing Satellite Systems International, Inc., a
company organized under the laws of Delaware with its principal place of
business located at 2260 East Imperial Highway, El Segundo, CA, U.S.A. (“BSSI”
or “Pledgee”).

 

WHEREAS:

 

(a)            Pursuant to the NSS-8 Contract
(as defined below), New Skies and BSSI, the parties thereto, amended their
previous agreement for the sale and purchase of the Spacecraft (as defined
below) to provide for, inter alia,  an amended delivery deadline and for changes
in the price, payment terms and certain other terms and conditions of the
contract

 

(b)           Under the NSS-8 Contract, the
entire purchase price for the Spacecraft is payable as incentive payments
during the fifteen years following the In Service Date;

 

(c)            As a condition to entering
into the NSS-8 Contract and in order to secure and provide for the payment by
New Skies of the Secured Obligations (as defined below), as and when due, on
the terms and subject to the conditions set forth herein and therein, the
Pledgor and the Pledgee have agreed that the Pledgor shall enter into this
Agreement of Non-Possessory Pledge of Assets; and

 

(d)           The parties intend to create a
sole and first ranking right of pledge on the Spacecraft (as defined below). In
that respect, the Spacecraft (as defined below) (i) has been released from the
non-possessory right of pledge on assets created in favour of the financial
institutions which are a party to the USD 535,000,000 Credit Agreement, dated 2
November 2004 (as amended from time to time) (the “Bank Pledge”),
amongst New Skies, Deutsche Bank AG, New York Branch and the other parties
named in it as a party, and (ii) has been excluded from the definition of “Assets
“ as contained in the Bank Pledge.

 

(e)           XXX

9

 

 

IT IS HEREBY AGREED as follows:

 

ARTICLE 1.  DEFINITIONS AND INTERPRETATION

 

1.1          All
capitalised terms used in this Agreement, including the recitals, and not
otherwise defined herein, shall have the meaning assigned to them in the NSS-8
Contract.

 

1.2          a.             Headings
are for convenience of reference only.

 

b.             Where the context so permits, the singular includes the
plural and vice versa. 

 

c.             Save
where the contrary is indicated, any reference in this Agreement to a party or
the parties to this Agreement shall be construed so as to include its or their
respective permitted successors, transferees and assigns from time to time and
any permitted successor of such a successor, transferee or assign in accordance
with their respective interests, and all in accordance with the terms of the
NSS-8 Contract.

 

d.             A “Clause” and a “sub clause” shall, subject
to any indication to the contrary, be construed as a reference to a clause and
subclause hereof.

 

e.             References to the NSS-8 Contract, this
Agreement or any other agreement or document shall, where applicable, be deemed
to be references to such NSS-8 Contract, this Agreement or such other agreement
or document as the same may have been, or may from time to time be, extended,
prolonged, amended, restated, supplemented, renewed or novated.

 

f.              A statute or statutory provision shall be
construed as a reference to such statute or statutory provision as the same may
have been, or may from time to time be, amended or re-enacted and all
instruments, orders, plans, regulations, by-laws, permissions and directions at
any time made thereunder.

 

g.             References to the Dutch Civil Code are
references to het Nederlands Burgerlijk
Wetboek.

 

1.3          In
this Agreement, including the recitals, the following words and expressions
shall have the following meaning:

 

“Agreement”
means this Agreement of Non-Possessory Pledge of Assets;

 

10

 

“Default Notice”
means the default notice substantially in the form provided by the Pledgee to
the Pledgor 30 days after the date of this Agreement at the latest and agreed
between the Parties (acting reasonably) within 10 days after that date, that is
issued following an Event of Default in accordance with Article 19 of the NSS-8
Contract and Article 7 hereof;

 

“Event of Default”
shall have the meaning set forth in the NSS-8 Contract;

 

“Export Laws” shall have the meaning set forth in the NSS-8 Contract;

 

“Governmental Authority” shall mean any federal, state, local or
foreign court or governmental agency, authority, instrumentality or regulatory
or legislative body;

 

“Material Adverse Effect” shall have the meaning set forth in the NSS-8 Contract;

 

“NSS-8 Contract” means the amended and restated NSS-8 Spacecraft and Associated
Equipment and Services Contract (Number NSS-20-03-01) made between BSSI and New
Skies and dated 22 February 22, 2005;

 

“Orbital Station” shall have the meaning set forth in the NSS-8
Contract;

 

“Permitted Lien” shall have the meaning set forth in the NSS-8
Contract;

 

“Permitted Spacecraft Disposal” shall have the
meaning set forth in the NSS-8 Contract;

 

“Right of Pledge” means the right of pledge
created under this Agreement;

 

“Secured Obligations” means the monetary payment obligations
(verbintenissen tot betaling van een geldsom)
of the Pledgor to the Pledgee with respect to the incentive payments and
interest due to the Pledgee under Paragraphs 5.C and 5.D of the NSS-8 Contract,
including upon acceleration thereof pursuant to and in accordance with Article
19 of the NSS-8 Contract;

 

“Security Period” means the period beginning
on the date hereof and ending on the earlier date upon which (a) all but the
last XXX Dollars ($XXX) of incentive payments constituting
Secured Obligations have been irrevocably (other than as provided in Paragraph
5.3.C of the NSS-8 Contract) paid to the Pledgee and discharged in full or have
ceased to exist, all in accordance with the terms of the NSS-8 Contract, and
(b) the Right of Pledge has been released and discharged by the Pledgee in
accordance with Clause 8.2 below;

 

“Spacecraft” means the NSS-8 satellite to be manufactured and delivered by BSSI to
New Skies pursuant to the NSS-8 Contract;

 

“TT&C” means telemetry, tracking, command and control operations.

 

11

 

ARTICLE 2.  PLEDGE

 

2.1          The Pledgor hereby agrees with the Pledgee and hereby
undertakes that the Pledgor shall grant to the Pledgee the right of pledge
purported to be granted under and pursuant to this Agreement.

 

2.2          As security for the payment and discharge in full, as and
when due (whether at stated maturity, by acceleration or otherwise), of the
Secured Obligations, the Pledgor hereby grants, for the duration of the
Security Period, to the Pledgee a first ranking non-possessory right of pledge
(stil pandrecht eerste in rang), over the Spacecraft and the Pledgee hereby accepts such
right of pledge.

 

2.3          The Pledgor irrevocably and unconditionally undertakes to
take such action (including the execution of documents to be made up in form
and substance satisfactory to the Pledgee) as and when the Pledgee deems
necessary in its reasonable opinion from time to time to create, perfect and
maintain a valid and enforceable first priority right of pledge or other
equivalent right under any applicable law (if and to the extent, in the
reasonable opinion of the Pledgee, it would appear that, contrary to the
expectations of the parties, another law would be more appropriate (from a
private international law perspective) to govern a
security right such as contemplated hereby) in favour of the Pledgee with
respect to the Spacecraft, including the registration and filing of this
Agreement with the
Belastingdienst Amsterdam Afdeling Registratie Unit promptly upon execution
thereof, and in any event no later than 10 business days after the date of such
execution, and the payment of any stamp,
registration, notary or other taxes and fees in connection therewith. As soon
as reasonably practicable after such registration or filing, the Pledgee will
be provided with a copy of this Agreement together with proof of registration
or filing, as the case may be.

 

2.4          This Right of Pledge is one and indivisible (één en ondeelbaar). Partial fulfilment of
the Secured Obligations shall not extinguish the Right of Pledge
proportionally.

 

ARTICLE 3.  ACCESSORY RIGHTS AND ANCILLARY RIGHTS

 

The Right of Pledge includes all accessory rights (afhankelijke rechten) and all ancillary rights (nevenrechten) attached to the Spacecraft.

 

ARTICLE 4.  REPRESENTATIONS AND WARRANTIES

 

The Pledgor represents and warrants that the following is true and
correct on the date of this Agreement:

 

(i)            subject to delivery of the Spacecraft by the
Pledgee to the Pledgor in accordance with Article 6 of the NSS-8 Contract, the
Pledgor holds full and exclusive title to the Spacecraft and is authorised (beschikkingsbevoegd) to create a right of
pledge thereover;

 

12

 

(ii)           except for the Right of Pledge created
pursuant to this Agreement and any Permitted Liens, the Spacecraft has not been
encumbered with any attachment (beslag)
or any rights in rem (beperkte rechten),
and has not been transferred or pledged in advance;

 

(iii)          it has the corporate power to enter into, and
to perform its obligations under, this Agreement;

 

(iv)          all necessary corporate execution has been
taken by it in respect of entering into, and the performance of its obligations
under, this Agreement;

 

(v)           it has validly executed this Agreement; 

 

(vi)          it does not violate any provision of its
articles of association by entering into, or by performing its obligations
under, this Agreement; and

 

(vii)         this Agreement creates, subject to recital
(e) and without prejudice to the obligation of the Pledgor in the last sentence
of recital (e), a valid first ranking Right of Pledge, which is enforceable in
accordance with its terms and applicable law and its contractual obligations
under this Agreement are its legal, valid and binding obligations, enforceable
in accordance with their terms and applicable law.

 

ARTICLE 5.  UNDERTAKINGS

 

5.1          Except to the extent permitted under this Agreement or the
NSS-8 Contract with respect to Permitted Spacecraft Disposals and Permitted
Liens, the Pledgor undertakes not to waive without the prior written consent of
the Pledgee (not to be unreasonably withheld, conditioned or delayed) any
accessory rights (afhankelijke rechten)
or ancillary rights (nevenrechten)
attached to the Spacecraft and in general not to perform any acts which could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, including a material reduction of the value of the Spacecraft.

 

5.2          Except to the extent permitted under this Agreement or the
NSS-8 Contract with respect to Permitted Spacecraft Disposals and Permitted
Liens, the Pledgor shall not, without the prior written consent of the Pledgee
(not to be unreasonably withheld, conditioned or delayed) transfer or further
pledge or otherwise encumber the Spacecraft or agree to a court settlement or
an out-of-court settlement (gerechtelijk or
buitengerechtelijk akkoord) in
respect of the Spacecraft.

 

5.3          Upon the occurrence of a Payment Default and the exercise
by the Pledgee of its rights under Paragraph 19.B.3 of the NSS-8 Contract or
the occurrence of an Event of Default, the Pledgor shall, at the Pledgee’s
first request, provide in the English language to the Pledgee all information
and supporting documentation relating to the Spacecraft and allow an
independent third party designated by the Pledgee (and acceptable to the
Pledgor in its reasonable discretion), following reasonable prior notice and
during office hours, to inspect relevant administrative records of the Pledgor,
in each case to the extent required by the Pledgee (acting reasonably) for

 

13

 

the purpose of
confirming that the Pledgor has created, perfected and is maintaining a valid
and enforceable first priority right of pledge in favour of the Pledgee with
respect to the Spacecraft. The reasonable fees (up to an amount separately
agreed with both Parties acting reasonably), cost and expenses of any such
independent third party designated by the Pledgee shall be borne by the
Pledgor.

 

5.4          The Pledgor
shall forthwith inform the Pledgee of any attachment (beslag) over the
Spacecraft with an individual or joint value of EUR 50,000 or more. The Pledgor
shall:

 

(i)            send the Pledgee a copy of the relevant
attachment or seizure documentation as well as all other documents required
under applicable law for challenging the attachment or seizure (if and to the
extent possible);

 

(ii)           notify the third party or the court process
server acting on behalf of such third party in writing of the Pledgee’s
interest over the Spacecraft; and

 

(iii)          take such measures as may reasonably be
required to protect the Pledgee’s interest over the Spacecraft. 

 

5.5          The Pledgor covenants for the benefit of the Pledgee
throughout the Security Period that it will co-operate with the Pledgee in the
collection and recovery of the Spacecraft and render all reasonable assistance
as may be required pursuant to any exchange regulations and/or foreign
statutory rules or other rules, including the taking of any legal action that
the Pledgee may deem necessary in connection therewith, in each case after the
issuance of a Default Notice to it

 

5.6          In addition and without prejudice to the obligations of the
Pledgor pursuant to Clauses 5.3 and 5.4 above, the Pledgor shall notify the
Pledgee promptly of any event or circumstance which could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect,
including a material reduction of the value of the Spacecraft or otherwise
cause an Event of Default.

 

5.7          The Pledgor shall, at its own expense, in accordance with
the terms of this Agreement, (i) keep and maintain the Spacecraft in good
condition (reasonable wear and tear excepted), take care of and handle the same
in a careful and diligent manner, using normal operating procedures in
accordance with, including but not limited to, the Recommended Operating Procedures
(ROPs) provided by the Pledgee (as may be modified and changed from time to
time by the Pledgee) and procure that its staff and other persons to whom it
delegates its duties and responsibilities in respect of the Spacecraft, shall
do likewise, and (ii) not intentionally perform any act which could reasonably
be expected to result in a material reduction of the value of the Spacecraft.

 

14

 

ARTICLE 6.  CONSENT

 

The Pledgee hereby revocably authorises the Pledgor to (i) use the
Spacecraft and (ii) to sell, transfer or otherwise dispose of the Spacecraft in
a Permitted Spacecraft Disposal under Article 19 of the NSS-8 Contract, but not
otherwise, provided, that in
doing so, the Pledgor complies with the provisions thereof.  In respect of any Permitted Spacecraft
Disposal pursuant to and in accordance with the foregoing authorisation, the
Pledgee waives, renounces and relinquishes all its security rights hereunder
and pursuant thereto as of such moment of disposal. The foregoing authorisation
and waiver, renouncement and relinquishment may be immediately terminated by
the Pledgee with respect to the Pledgor upon the issuance of a Default Notice
to the Pledgor.

 

ARTICLE 7.  ENFORCEMENT AND POWER OF ATTORNEY

 

7.1          Without prejudice to any other right or remedy available to
the Pledgee, the Pledgee may issue to the Pledgor a Default Notice upon the
occurrence of an Event of Default, wherein it may declare the Right of Pledge
immediately enforceable against the Pledgor without any further notice of
default being required and the Pledgee may subject to the requirements of
Paragraph 19.D.4 of the NSS-8 Contract, immediately exercise in respect of the
Spacecraft any and all of its rights and powers set out in this Agreement
(subject to restrictions following from mandatory provisions of law). 

 

7.2          To the extent necessary, the Pledgor agrees for the benefit
of the Pledgee that upon an Event of Default, it shall be deemed to be in
default (verzuim) in respect
of the Secured Obligations within the meaning of section 3:248 (1) and 6:81 of
the Dutch Civil Code without any further notice or action being necessary. 

 

7.3          Upon the issuance of the Default Notice, the Pledgee shall
be authorised to take immediate possession and control of the Spacecraft or
have possession and control transferred to a qualified third party designated
by Pledgee, subject to compliance with the requirements of this Agreement and
the NSS-8 Contract (including without limitation the requirements set forth in
Article 21 hereof and Paragraph 19.D.3 thereof) and applicable law. The Pledgee
shall be entitled to sell or procure the sale of the Spacecraft forthwith, all
to the extent permitted by applicable laws.

 

7.4          To the fullest extent permitted by law, the Pledgor waives
(which waiver the Pledgee hereby accepts) any right it may have (i) pursuant to
section 3:234 of the Dutch Civil Code to demand, in the event that the Pledgee
enforces the Right of Pledge, that the Pledgee shall also enforce any other security
interests (zekerheidsrechten) granted by any other party and (ii) of requiring the
Pledgee to firstly proceed against or claim payment from any person or entity
or enforce any guarantee or security granted by any other person or entity
before enforcing the Right of Pledge and/or any other rights under this
Agreement.

 

7.5          Annex 1, which will be provided by the Pledgor to the Pledgee 30
days after the date of this Agreement at the latest, lists the TT&C equipment and software, which as at
the date of this Agreement, the Pledgor anticipates using in connection with
TT&C operations for the Spacecraft (excluding discretionary items not
required in order to perform such TT&C operations).  On request from Pledgee (which request may be

 

15

 

made up to
once annually and at any time following any Event of Default), Pledgor shall
update Annex 1.

 

7.6          The
Pledgor will not be entitled to request the summary proceedings judge (voorzieningenrechter) of the district court to order that
the Spacecraft shall be sold in a manner deviating from the provision of
section 3:250 of the Dutch Civil Code.

 

 

7.7          In the event that the Pledgee forecloses or intends to
foreclose the Right of Pledge, it will not be obliged to give notice (thereof)
(as provided in section 3:249 subsection (1) and section 3:252 of the Dutch
Civil Code) to the Pledgor or any person having the benefit of an encumbrance
on Spacecraft comprised in such Right of Pledge.

 

7.8          The Pledgee shall apply the proceeds of the Spacecraft and
the foreclosure of the Right of Pledge or any of them in satisfaction of the
Secured Obligations subject to applicable provisions of Dutch law.  To the extent that any proceeds remain after
the satisfaction of the Secured Obligations, the Pledgee shall promptly (and in
any event within thirty (30) days after receipt of the proceeds) pay the
surplus to the Pledgor.

 

7.9          In addition
to the undertakings contained in Clause 2.3 above, the Pledgor shall at any
time, upon written request of the Pledgee execute and cause to be filed at the
expense of the Pledgor, such documents and instruments, and do such other acts
and things, as the Pledgee may reasonably deem desirable in obtaining the full
benefits of this Agreement (including the protection and preservation of its
rights hereunder) and of the rights and powers granted hereunder or granted to
a pledgee under the laws of the Netherlands.

 

7.10         THE PLEDGOR HEREBY GRANTS TO THE PLEDGEE (AND ANY OF
ITS DELEGATES) AN IRREVOCABLE POWER OF ATTORNEY IN ACCORDANCE WITH SECTION 3:74
(1) OF THE DUTCH CIVIL CODE TO, FOLLOWING THE ISSUANCE OF A DEFAULT NOTICE TO
IT AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, PERFORM ALL ACTS AND
EXECUTE ALL DOCUMENTS IN ORDER TO PERFECT OR IMPLEMENT THIS AGREEMENT ON ITS
BEHALF, AND TO TAKE ALL ACTIONS WHICH ARE NECESSARY FOR THE PLEDGEE (AND ANY OF
ITS DELEGATES) TO CREATE, MAINTAIN, PROTECT, PRESERVE AND EXERCISE ITS RIGHTS
UNDER THIS AGREEMENT (ACTING REASONABLY). THE PARTIES AGREE THAT SECTION 3:68
(SELBSTEINTRITT) OF THE DUTCH CIVIL CODE WILL NOT APPLY AND TO THE EXTENT
NECESSARY, THE PLEDGOR HEREBY WAIVES ANY RIGHTS IT MAY HAVE UNDER SECTION 3:68
OF THE DUTCH CIVIL CODE, WHICH WAIVER THE PLEDGEE HEREBY ACCEPTS.

 

16

 

ARTICLE 8.  TERMINATION

 

8.1          The Pledgee is entitled to terminate (opzeggen) in whole or in part any Right of
Pledge and the contractual arrangements set forth herein. Notice of termination
must be given in writing by the Pledgee to the Pledgor.

 

8.2          The Right of
Pledge or any of them shall terminate by operation of law when all but the last
XXX
Dollars ($XXX) of
incentive payments constituting Secured Obligations have been unconditionally
and irrevocably (other than as provided in Paragraph 5.3.C of the NSS-8
Contract) paid to the Pledgee and discharged in full or have ceased to exist in
accordance with the NSS-8 Contract. At the request of the Pledgor, the Pledgee
shall confirm such termination to the Pledgor in writing and will execute all
documents reasonably requested by the Pledgor in relation thereto and all
reasonable costs in relation thereto shall be at the Pledgor’s expense.

 

However, if any payment or
discharge is subsequently avoided or must be restored on bankruptcy,
liquidation or otherwise without limitation, the Right of Pledge created hereby
and pursuant hereto shall continue as if there had been no such payment or
discharge. The Pledgee (acting reasonably) shall be entitled to concede or
compromise any claim that any such payment or discharge is subject to
avoidance.

 

ARTICLE 9.  ASSIGNMENT

 

9.1          Subject to applicable law, the Pledgee and the Pledgor
shall each be entitled to assign and/or transfer all or part of its rights and
obligations under this Agreement to any assignee and/or transferee to the
extent, and subject to the limitations, set forth in Article 26 of the NSS-8
Contract.

 

9.2          The Pledgor
and the Pledgee each hereby in advance gives its irrevocable consent to (geeft toestemming bij voorbaat) within the meaning of section 6:156 of the Dutch Civil
Code and hereby in advance irrevocably co-operates with (verleent bij voorbaat medewerking aan), within the meaning of sections 6:159 and 6:156 of the
Dutch Civil Code, any such assignment and/or transfer executed in accordance
with the relevant provisions of Article 26 of the NSS-8 Contract.

 

ARTICLE 10.  CONFIDENTIALITY

 

The Pledgee and the Pledgor shall be entitled to impart any
confidential or proprietary information arising under or relating to this
Agreement to the same extent, and under the same conditions, as are set forth
in Article 27 of the NSS-8 Contract.

 

17

 

ARTICLE 11.  DISPUTES

 

Determinations
regarding the existence and amount of the Secured Obligations shall be made in
accordance with Paragraph 5.E of the NSS-8 Contract.  Any dispute arising under this Agreement
(including without limitation any dispute regarding the existence and amount of
the Secured Obligations and the Secured Obligations or the existence of an
Event of Default) shall be resolved in accordance with Article 21 of the NSS-8
Contract.

 

ARTICLE 12.  COSTS

 

Subject to any
provision to the contrary herein, each party shall bear all costs incurred by
it in connection with the creation of the Right of Pledge (which, for the
avoidance of doubt, in relation to the Pledgor, includes any cost incurred in
connection with Clause 2. hereof) and the performance by the parties of their
rights and obligations under this Agreement. Any reasonable cost incurred by
the Pledgee in connection with the enforcement of any rights under this
Agreement are for the account of the Pledgor.

 

ARTICLE 13.  NOTICES

 

Any notices and other
communications under or in connection with this Agreement shall be given in
accordance with Article 29 of the NSS-8 Contract.

 

ARTICLE 14.  liability

 

NOTWITHSTANDING ANY OTHER
PROVISION HEREIN TO THE CONTRARY, NEITHER PARTY SHALL BE LIABLE, WHETHER IN
CONTRACT, TORT OR OTHERWISE, FOR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL
DAMAGES OR FOR LOST PROFITS OR REVENUES, OTHER THAN FOR A WILFUL BREACH OR
GROSS NEGLIGENCE.

 

ARTICLE
15.  LIMITATION; WAIVER

 

The Pledgor waives, to the fullest extent permitted by law, its right
(i) to dissolve this Agreement, pursuant to section 6:265 of the Dutch Civil
Code or on any other ground or (ii) to avoid this Agreement, including but not
limited to error (dwaling), which waiver the Pledgee hereby accepts.

 

ARTICLE 16.  SECURITY INTEREST ABSOLUTE

 

All rights of the Pledgee, the Right of Pledge and all obligations of
the Pledgor hereunder shall be absolute and unconditional irrespective of:

 

(i)            any change in the time, manner or place of
payment of the Secured Obligations or any change of or amendment to the NSS-8
Contract and any other document related thereto, or any other agreement or
instrument relating to any of them; or

 

(ii)           any exchange, release or non perfection of
any other collateral, or any release or amendment or waiver of or consent to
any departure from any other collateral for the Secured Obligations.

 

18

 

ARTICLE 17.  AMENDMENT OF THIS AGREEMENT

 

This Agreement may only be amended by a written agreement between the
Pledgor and the Pledgee.

 

ARTICLE 18.  GOVERNING LAW AND JURISDICTION

 

18.1        This Agreement shall be governed by and construed in
accordance with the laws of The Netherlands.

 

18.2        The Pledgor consents to the exclusive jurisdiction of the
courts of Amsterdam, The Netherlands. The Pledgor hereby waives any objection
that it may now or hereafter have to the jurisdiction of such courts, which
waiver the Pledgee hereby accepts. This Clause is for the benefit of the
Pledgee only and shall not limit its right to bring proceedings against the
Pledgor in connection with this Agreement or the NSS-8 Contract in any other
court of competent jurisdiction or (to the extent allowed by law) concurrently
in more than one jurisdiction.

 

ARTICLE 19.  SEVERABILITY OF PROVISIONS

 

19.1        Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

19.2        The parties hereto agree that they will negotiate in good
faith to replace any provision hereof held invalid, illegal or unenforceable as
set out in Clause 19.1 above with a valid provision which is as similar as
possible in substance to the invalid, illegal or unenforceable provision.

 

ARTICLE 20.  REMEDIES AND PREVALENCE

 

20.1        The rights and remedies of the Pledgee herein, and the
obligations, representations and warranties of the Pledgor herein, are
cumulative and are not exclusive of any rights or remedies of the Pledgee, or
obligations, representations or warranties of the Pledgor, conferred or imposed
by law or the NSS-8 Contract. 

 

20.2        To the extent
there is a conflict between the provisions of the NSS-8 Contract and the
provisions of this Agreement, the provisions of the NSS-8 Contract shall
prevail (but only to the extent that the validity and enforceability of the
pledges created pursuant this Agreement and the powers of attorney given
pursuant this Agreement are not affected as a consequence).

 

ARTICLE 21.  REGULAR MATTERS

 

21.1        Notwithstanding anything to the contrary contained in this
Agreement or in the NSS-8 Contract, the rights of the Pledgee hereunder and
under Article 19 of the NSS-8

 

19

 

Contract are subject
to all applicable rules and regulations of the Government of the Netherlands,
the United States Department of State and other Governmental Authorities with
jurisdiction over the Pledgor, the Pledgee, their respective subsidiaries or
the Spacecraft.  Without limiting the foregoing, the Pledgee will not take
any action (or authorize any other party to take any action on its
behalf) which (i) would constitute or result in an assignment or change of
control of any governmental permits, licenses, or other authorizations,
including without limitation those issued by the Government of the Netherlands,
now held by or to be issued to Pledgor or any of its subsidiaries, which would
require prior notice to or approval from any Governmental Authority, (ii) would
constitute an export or a re-export of any defense article (including technical
data) or the provision of any defense service unless such export, re-export or
provision of defense services has been authorized, to the extent required by
law (including without limitation to the extent required pursuant to the Export
Laws) or (iii) otherwise take action hereunder which would require prior notice
to or approval from any Governmental Authority, in each case without first
providing such notice or obtaining such prior approval of the relevant
Governmental Authorities.

 

21.2        Upon
and after the issuance of a Default Notice, the Pledgor shall take any action
that the Pledgee may reasonably request in the exercise of its rights and
remedies under this Agreement in order to transfer or assign the Spacecraft to
the Pledgee or to such qualified third party as the Pledgee may designate.  To enforce the provisions of this Clause 21,
upon and after the issuance of a Default Notice, the Pledgee is empowered to
seek from the Government of the Netherlands, the U.S. Department of State and
any other Governmental Authority, to the extent required, consent to or
approval of any involuntary assignment or a transfer of control of the NSS-8
Satellite or of any export or re-export of any defense articles (including
technical data) or the provision of defense services.  Pledgor agrees to use reasonable commercial
efforts to cooperate with any such purchaser and with the Pledgee in the
preparation, execution and filing of any applications and other documents, to
provide any information that may be necessary or helpful in obtaining the
consents described herein, and to consent to any involuntary transfer of
control upon the request of the Pledgee upon and after the issuance of a
Default Notice.

 

21.3        The Pledgor hereby acknowledges and agrees that the
Spacecraft is a unique asset and that a violation of the Pledgor’s covenant to
cooperate with respect to any regulatory consents would result in irreparable
harm to the Pledgee for which monetary damages are not readily
ascertainable.  The Pledgor further
agrees that, because of the unique nature of its undertaking in this subclause
21.3, the same may be specifically enforced, and it hereby waives, and agrees
to waive, any claim or defense that the Pledgee would have an adequate remedy
at law for the breach of this undertaking.

 

21.4        Without limiting the obligations of the Pledgor hereunder
in any respect, the Pledgor further agrees that if the Pledgor, upon and after
the issuance of a Default Notice, should fail or refuse to execute any
application or other document necessary or

 

20

 

appropriate
to obtain any governmental consent necessary or appropriate for the exercise of
any right of the Pledgee hereunder, the Pledgor agrees, to the extent
consistent with applicable law, that such application or other document may be
executed on the Pledgor’s behalf by the Pledgee without notice to the Pledgor.

 

ARTICLE 22.  REGISTRATION

 

The Pledgee is irrevocably authorised to present this Agreement and any
agreement pursuant hereto for registration to the relevant Belastingdienst Amsterdam Afdeling Registratie Unit in
The Netherlands.

 

ARTICLE 23.  COUNTERPARTS

 

23.1        This Agreement may be executed in any number of
counterparts and by way of facsimile exchange or email of executed signature
pages, all of which taken together shall constitute one and the same agreement.

 

23.2        This Agreement has been entered into on this 22nd
day of February 2005.

 

[remainder of this page intentionally left blank]

 

21

 

 

	
  THE PLEDGOR

  	
  the pledgee

  
	
   

  	
   

  
	
   

  	
   

  
	
  NEW SKIES
  SATELLITES B.V.

  	
  BOEING
  SATELLITE SYSTEMS INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  By:

  
	
   

  	
   

  
	
  Title:

  	
  Title:

  
				

 

22

 

ANNEX 1

 

LIST OF
TT&C EQUIPMENT AND SOFTWARE

 

AS OF              ,
20    

 

[to be agreed and attached
separately]

 

23

EXHIBIT 
I

 

AGREEMENT OF UNDISCLOSED PLEDGE 

 

(NSS-8 Customer Accounts Receivable)

 

 

AGREEMENT
OF UNDISCLOSED PLEDGE  

 

between

 

NEW SKIES SATELLITES B.V.

 

as Pledgor 

 

and

 

BOEING SATELLITE SYSTEMS
INTERNATIONAL, INC.

 

as Pledgee

 

 

NSS-8
Customer Accounts Receivable

 

 

 

INDEX

 

	
  1

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  PLEDGE

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  ACCESSORY RIGHTS AND ANCILLARY RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  UNDERTAKINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  CONSENT

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  ENFORCEMENT AND POWER OF ATTORNEY

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  11

  	
  DISPUTES

  	
   

  
	
   

  	
   

  	
   

  
	
  12

  	
  COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  13

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  14

  	
  LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  15

  	
  LIMITATION; WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  16

  	
  SECURITY INTEREST ABSOLUTE

  	
   

  
	
   

  	
   

  	
   

  
	
  17

  	
  AMENDMENT OF THIS AGREEMENT

  	
   

  

 

 

	
  18

  	
  GOVERNING LAW AND JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  19

  	
  SEVERABILITY OF PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  20

  	
  REMEDIES AND PREVALENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  21

  	
  REGISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  22

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX 1

  	
  FORM OF SUPPLEMENTAL
  AGREEMENT

  	
   

  

 

 

THIS AGREEMENT OF

UNDISCLOSED PLEDGE OF NSS-8 CUSTOMER ACCOUNTS
RECEIVABLES

 

is dated 22 February
2005,

 

BETWEEN:

 

1                                          New Skies Satellites B.V., a private company
with limited liability (besloten vennootschap),
incorporated and existing under the laws of The Netherlands, with corporate
seat in Amsterdam, The Netherlands, having its registered address at
Rooseveltplantsoen 4, 2517 KR The Hague, The Netherlands, registered with the
Commercial Register under number 30146277 (“New Skies” or the “Pledgor”); and 

 

2                                          Boeing Satellite Systems
International, Inc.,
a company organized under the laws of Delaware with its principal place of
business located at 2260 East Imperial Highway, El Segundo, CA, U.S.A. (“BSSI”
or “Pledgee”).

 

WHEREAS:

 

(a)                                  Pursuant to the NSS-8 Contract (as
defined below), New Skies and BSSI, the parties thereto, amended their previous
agreement for the sale and purchase of the Spacecraft (as defined below) to
provide for, inter alia,  an amended delivery deadline and for changes
in the price, payment terms and certain other terms and conditions of the
contract;

 

(b)                                 Under the NSS-8 Contract, the entire
purchase price for the Spacecraft is payable as incentive payments during the
fifteen years following the In Service Date;

 

(c)                                  As a condition to entering into the NSS-8
Contract and in order to secure and provide for the payment by New Skies of the
Secured Obligations (as defined below), as and when due, on the terms and
subject to the conditions set forth herein and therein, the Pledgor and the
Pledgee have agreed that the Pledgor shall enter into this Agreement of
Undisclosed Pledge of NSS-8 Customer Accounts Receivable.

 

(d)                                 The parties intend to create a sole and
first ranking right of pledge on the Accounts Receivable (as defined below). In
that respect, the Accounts Receivable (as defined below) (i) have been released
from the undisclosed right of pledge on receivables created in favour of the
financial institutions 

 

 

which
are a party to the USD 535,000,000 Credit Agreement, dated 2 November 2004 (as
amended from time to time) (the “Bank Pledge”), amongst New Skies, Deutsche
Bank AG, New York Branch and the other parties named in it as a party, and (ii)
have been excluded from the definition of “Third Party Receivables” as
contained in the Bank Pledge. 

 

IT IS HEREBY AGREED AS FOLLOWS:

 

ARTICLE 1.  DEFINITIONS
AND INTERPRETATION

 

A.                                    All capitalised terms used in this Agreement, including the
recitals, and not otherwise defined herein, shall have the meaning assigned to
them in the NSS-8 Contract.

 

B.                                    Headings are for convenience of reference only.

 

C.                          Where the context so permits, the singular includes the
plural and vice versa. 

 

 

D.                        Save where the contrary is indicated, any reference in this
Agreement to a party or the parties to this Agreement shall be construed so as
to include its or their respective permitted successors, transferees and
assigns from time to time and any permitted successor of such a successor,
transferee or assign in accordance with their respective interests, and all in
accordance with the terms of the NSS-8 Contract.

 

E.                          A “Clause” and a “sub clause” shall, subject to any
indication to the contrary, be construed as a reference to a clause and
subclause hereof.

 

F.                          References to the NSS-8 Contract, this Agreement, or any
other agreement or document shall, where applicable, be deemed to be references
to such NSS-8 Contract, this Agreement or such other agreement or document as
the same may have been, or may from time to time be, extended, prolonged,
amended, restated, supplemented, renewed or novated.

 

G.                        A statute or statutory provision shall be construed as a
reference to such statute or statutory provision as the same may have been, or
may from time to time be, amended or re-enacted and all instruments, orders,
plans, regulations, by-laws, permissions and directions at any time made
thereunder.

 

H.                        References to the Dutch Civil Code are references to het Nederlands Burgerlijk Wetboek.

 

I.                                         In this Agreement, including the recitals, the following
words and expressions shall have the following meaning:

 

“Accounts Receivable” means any and all
claims (including, but not limited to rights to receive payments or to claim
performance judicially and extra-judicially) of the Pledgor against any
customer under any Customer Contract, whether now existing or hereafter created
or arising, in each case if or to the extent that these rights are capable of
being pledged under the laws of the Netherlands at the time of execution of
this Agreement or any Supplemental Agreement, as the case may be;

 

“Agreement” means this Agreement of Undisclosed Pledge NSS-8
Customer Accounts Receivable;

 

“Attorney-in-Fact” has the meaning ascribed thereto in Clause
2.6 below;

 

“Customer Contract” means any present or future contract for
capacity on or services employing the Spacecraft.  In the event that a contract provides for
capacity on or services employing the Spacecraft and any other capacity or
services, including ground-based capacity or services, capacity or services on
another satellite, or otherwise, the relevant Contract (a “Mixed Contract”)
shall be deemed to include only that portion of 

 

 

the
contract that is relevant to the capacity on or services employing the
Spacecraft.  If no allocation of the
payments due from the NSS-8 Customer is set forth in the Mixed Contract, New
Skies shall allocate the payments on an equitable basis, consistent with New
Skies’ general business practices;

 

“Default Notice” means the default notice substantially in
the form provided by the Pledgee to the Pledgor 30 days after the date of this
Agreement at the latest and agreed between the Parties (acting reasonably)
within 10 days after that date, that is issued following an Event of Default in
accordance with Article 19 of the NSS-8 Contract and Article 7 hereof;

 

“Equivalent Sum” has the meaning ascribed thereto in Clause
6.3 below;

 

“Event of Default” shall have the meaning set forth in the NSS-8 Contract; 

 

“Governmental Authority” shall mean any federal, state, local
or foreign court or governmental agency, authority, instrumentality or
regulatory or legislative body;

 

“Material Adverse Effect” shall have the meaning set forth in the NSS-8 Contract;

 

“NSS-8 Contract” means the amended and restated NSS-8
Spacecraft and Associated Equipment and Services Contract (Number NSS-20-03-01)
made between BSSI and New Skies and dated 22 February 2005;

 

“NSS-8 Customer” means
any third party who has a Customer Contract;

 

“Original Payment” has the meaning ascribed thereto in Clause
6.3 below;

 

“Payment Default” shall have the meaning set forth in the NSS-8 Contract;

 

“Permitted Lien”
shall have the meaning set forth in the NSS-8 Contract;

 

“Permitted Receivables Disposals” shall have the meaning set forth in the
NSS-8 Contract;

 

“Pledge List” has the meaning ascribed
thereto in Clause 2.3 below;

 

“Power of Attorney” has the meaning ascribed
thereto in Clause 2.6 below;

 

“Rights of Pledge” means the rights of
pledge created under this Agreement, which includes, for the avoidance of
doubt, any and all pledges created pursuant to any Supplemental Agreement (as
defined below);

 

“Secured Obligations” means the monetary payment obligations
(verbintenissen tot betaling van een geldsom)
of the Pledgor to the Pledgee with respect to the incentive 

 

 

payments
and interest due to the Pledgee under Paragraphs 5.C and 5.D of the NSS-8
Contract, including upon acceleration thereof pursuant to and in accordance
with Article 19 of the NSS-8 Contract;

 

“Security Period” means the period beginning
on the date hereof and ending on the earlier date upon which (a) all but the
last XXX Dollars ($XXX) of incentive payments constituting
Secured Obligations have been irrevocably (other than as provided in
Paragraph 5.3.C of the NSS-8 Contract) paid to the Pledgee and discharged in full or have ceased to exist, all
in accordance with the terms of the NSS-8 Contract, and (b) all Rights of Pledge
have been released and discharged by the Pledgee in accordance with Clause 8.2
below;

 

“Spacecraft” means the NSS-8 satellite to be manufactured and
delivered by BSSI to New Skies pursuant to the NSS-8 Contract; and

 

“Supplemental Agreement” means a
Supplemental Agreement of Undisclosed Pledge of NSS-8 Customer Accounts
Receivable substantially in the form attached hereto as Annex 1.

 

ARTICLE 2.  PLEDGE

 

A.                                    The Pledgor hereby agrees with the Pledgee and hereby
undertakes that the Pledgor shall grant to the Pledgee the rights of pledge
purported to be granted under and pursuant to this Agreement.

 

B.                                    As security for the payment and discharge in full, as and
when due (whether at stated maturity, by acceleration or otherwise), of the
Secured Obligations, the Pledgor hereby grants, for the duration of the
Security Period, to the Pledgee a first ranking undisclosed right of pledge (stil pandrecht eerste in rang), over all Accounts Receivable and, to the extent it
concerns future Accounts Receivable, hereby grants in advance (verpandt bij voorbaat) to the Pledgee a first ranking right of pledge over such
future Accounts Receivable and the Pledgee hereby accepts such rights of
pledge. 

 

C.                                    Upon the occurrence of a Payment Default and the exercise
by the Pledgee of its rights under Paragraph 19.B.3 of the NSS-8 Contract or
the occurrence of an Event of Default, the Pledgor shall send to the Pledgee,
at the Pledgee’s first request (acting reasonably), a computer print out
of the books of the Pledgor (each such computer print out referred to as a “Pledge
List”) stating, inter alia, the names of all NSS-8 Customers, their contact details
and the outstanding amounts of the Accounts Receivable.

 

 

D.                                    The Pledgor irrevocably and unconditionally undertakes to
take such action (including the execution of documents to be made up in form
and substance satisfactory to the Pledgee) as and when the Pledgee deems
necessary in its reasonable opinion from time to time to create, perfect and
maintain a valid and enforceable first priority right of pledge in favour of
the Pledgee with respect to the Accounts Receivable, including the registration
and filing of this Agreement and any Supplemental Agreement with the Belastingdienst Amsterdam Afdeling Registratie
Unit promptly upon
execution thereof, and in any event no later than 10 business days after the
date of such execution or the date of such Supplemental Agreement, and the payment of any stamp, registration, notary or
other taxes and fees in connection therewith. As soon as reasonably practicable
after such registration or filing, the Pledgee will be provided with a copy of
this Agreement or a Supplemental Agreement, as the case may be, together with
proof of registration or filing, as the case may be.

 

E.                                      In addition to the undertakings contained in Clause 2.4
above, the Pledgor irrevocably and unconditionally undertakes to pledge to the
Pledgee on a quarterly basis any and all Accounts Receivable it will acquire
after the date hereof. To the extent necessary, in the reasonable opinion of
the Pledgee, for the creation of a pledge on any and all Accounts Receivable
acquired by the Pledgor after the date hereof, the Pledgor and the Pledgee
shall enter into a Supplemental Agreement within 30 days after the last day of
each quarter as of the date of this Agreement.

 

F.                                      The Pledgee hereby grants to the Pledgor (the “Attorney-in-Fact”)
a power of attorney (the “Power of Attorney”) which is revocable upon written
notice, to represent the Pledgee and to sign and execute on behalf of and in
the name of the Pledgee any Supplemental Agreement materially in the form as
attached hereto as Annex 1. The parties agree that section 3:68 (Selbsteintritt) of the
Dutch Civil Code will not apply and to the extent necessary, the Pledgee hereby
waives any rights it may have under section 3:68 of the Dutch Civil Code, which
waiver the Pledgor hereby accepts. This Power of Attorney is to be construed
and interpreted as a limited power of attorney. Nothing contained in this Power
of Attorney shall be construed to grant the Attorney-in-Fact the power to
initiate or defend any suit, litigation or proceeding in the name of the
Pledgee.

 

G.                                    Each of the Rights of Pledge is one and indivisible (één en ondeelbaar). Partial fulfilment of
the Secured Obligations shall not extinguish the Rights of Pledge
proportionally.

 

 

ARTICLE 3.  ACCESSORY RIGHTS AND ANCILLARY RIGHTS

 

A.            The Rights of Pledge include all accessory rights (afhankelijke rechten) and all ancillary rights (nevenrechten) attached to the Accounts Receivable.

 

ARTICLE 4.  REPRESENTATIONS AND WARRANTIES

 

A.            The Pledgor represents and warrants that the following is
true and correct on the date of this Agreement:

 

1.                             the Pledgor holds full and
exclusive title to the Accounts Receivable existing at the time the
representation is made and is authorised (beschikkingsbevoegd) to create a right of
pledge thereover and no Customer Contract contains or will contain a
prohibition or a restriction for the Pledgor to assign or pledge any claim
thereunder;

 

2.                             except for the Rights of Pledge created pursuant to this Agreement and
any Permitted Liens, the Accounts Receivable have not been encumbered with any
attachment (beslag) or any rights in rem (beperkte rechten), none of
the Accounts Receivable have been assigned or pledged in advance and all
Accounts Receivable can be pledged to the Pledgee;

 

3.                             it has the
corporate power to enter into, and to perform its obligations under, this
Agreement;

 

4.                             all necessary corporate execution
has been taken by it in respect of entering into, and the performance of its
obligations under, this Agreement;

 

5.                             it has validly executed this
Agreement; 

 

6.                             it does not
violate any provision of its articles of association by entering into, or by
performing its obligations under, this Agreement; and

 

7.                             this Agreement creates a valid first ranking Right of Pledge, which is
enforceable in accordance with its terms and applicable law and its contractual
obligations under this Agreement are its legal, valid and binding obligations,
enforceable in accordance with their terms and applicable law.

 

ARTICLE 5.  UNDERTAKINGS

 

A.                                    Except to the extent permitted under this Agreement or the
NSS-8 Contract with respect to Permitted Receivables Disposals and Permitted
Liens, the Pledgor undertakes not to waive without the prior written 

 

 

consent of the
Pledgee (not to be unreasonably withheld, conditioned or delayed), any
accessory rights (afhankelijke rechten)
or ancillary rights (nevenrechten)
attached to the Accounts Receivable and in general not to perform any acts
which could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

B.                                    Except to the extent permitted pursuant to this Agreement
or the NSS-8 Contract with respect to Permitted Receivables Disposals and Permitted
Liens, the Pledgor shall not, without the prior written consent of the Pledgee
(not to be unreasonably withheld, conditioned or delayed), transfer or further
pledge or otherwise encumber any of the Accounts Receivable, or agree to a
court settlement or an out-of-court settlement (gerechtelijk or buitengerechtelijk
akkoord) in respect of the Accounts Receivable.

 

C.                                    Upon the occurrence of a Payment Default and the exercise
by the Pledgee of its rights under Paragraph 19.B.3 of the NSS-8 Contract or the
occurrence of an Event of Default, the Pledgor shall, at the Pledgee’s first
request, provide in the English language to the Pledgee all information and
supporting documentation relating to the Accounts Receivable and allow an
independent third party designated by the Pledgee (and acceptable to the
Pledgor in its reasonable discretion), following reasonable prior notice and
during office hours, to inspect relevant administrative records of the Pledgor,
in each case to the extent required by the Pledgee (acting reasonably) for the
purpose of confirming that the Pledgor has created, perfected and is
maintaining a valid and enforceable first priority right of pledge in favour of
the Pledgee with respect to the Accounts Receivable and that the Pledgor is in
compliance with Paragraph 19.B.3 of the NSS-8 Contract. The reasonable fees (up
to an amount separately agreed with both Parties acting reasonably), cost and
expenses of any such independent third party designated by the Pledgee shall be
borne by the Pledgor.

 

D.                                    The Pledgor shall forthwith inform the Pledgee of any
attachment (beslag) over any of the Accounts Receivable with an individual or
joint value of EUR 50,000 or more. The Pledgor shall:

 

1.                                       send the Pledgee a copy of the
relevant attachment or seizure documentation as well as all other documents
required under applicable law for challenging the attachment or seizure (if and
to the extent possible);

 

2.                                                       notify the third party or the
court process server acting on behalf of such third party in writing of the
Pledgee’s interest over the Accounts Receivable; and 

 

 

3.                                       take such measures as may
reasonably be required to protect the Pledgee’s interest over the Accounts
Receivable. 

 

E.                                      The Pledgor covenants for the benefit of the Pledgee
throughout the Security Period that it will co-operate with the Pledgee in the
collection and recovery of the Accounts Receivable consistently with its
general business practice and render all reasonable assistance as may be
required pursuant to any exchange regulations and/or foreign statutory rules or
other rules, including the taking of any legal action that the Pledgee may deem
necessary in connection therewith, in each case after the issuance of a Default
Notice to it.

 

F.                                      In addition and without prejudice to the obligations of the
Pledgor pursuant to Clauses 5.3 and 5.4 above, the Pledgor shall notify the
Pledgee promptly of any event or circumstance which could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
or otherwise cause an Event of Defualt.

 

ARTICLE 6.  CONSENT

 

A.                                    In accordance with section 3:246 of the Dutch Civil Code,
following an Event of Default and issuance by the Pledgee of a Default Notice,
the Pledgor is entitled to demand the performance judicially and extra-judicially
of and to receive payment with respect to, the Accounts Receivable until the
NSS-8 Customers under the Accounts Receivable have been notified of the Rights
of Pledge. Upon the occurrence of an Event of Default and the issuance of the
Default Notice to the Pledgor, the Pledgee is irrevocably authorised to notify
the NSS-8 Customers under the Accounts Receivable of the Rights of Pledge by
sending a notification substantially in a form provided by the Pledgee to the
Pledgor 30 days after the date of this Agreement at the latest and agreed
between the Parties (acting reasonably) within 10 days after that date. The
Pledgor shall give its prompt and full co-operation in connection herewith and
it shall immediately send to the Pledgee a Pledge List as stipulated in Clause
2.3 above. Upon such notification of the NSS-8 Customers, the Pledgee shall be
entitled to demand the performance judicially and extra-judicially of, and to
receive payment with respect to, the Accounts Receivable and to exercise the other
rights granted to a pledgee under section 3:246 of the Dutch Civil Code in
respect thereof.

 

B.                                    If the Pledgee has the right to demand the performance
judicially and extra-judicially of and to receive payment with respect to, an
Account Receivable pursuant to Clause 6.1 above, it shall also have the right
to 

 

 

enter into court
settlement or out-of-court settlement (gerechtelijk
of buitengerechtelijk akkoord) regarding such
Accounts Receivable with the NSS-8 Customer concerned. 

 

C.                                    If a NSS-8 Customer makes any payment (the “Original
Payment”) to the Pledgor in respect of an Accounts Receivable after it has been
notified of the Rights of Pledge, the Pledgor shall (to the extent permitted by
law) immediately transfer to the Pledgee a sum equal to the amount paid by the
NSS-8 Customer to the Pledgor (the “Equivalent Sum”), without prejudice to any
remedy which the Pledgee may have against the NSS-8 Customer concerned,
provided, however, that to the extent the Pledgee has received payment of any
part of the Equivalent Sum from the Pledgor, the NSS-8 Customer will as a
result be released for such part of its payment obligation towards the Pledgee
in respect of the Original Payment.

 

ARTICLE 7.  ENFORCEMENT AND POWER OF ATTORNEY

 

A.                                    Without prejudice to any other right or remedy available to
the Pledgee, the Pledgee may issue to the Pledgor a Default Notice upon the
occurrence of an Event of Default, wherein it may declare the Rights of Pledge
immediately enforceable against the Pledgor without any further notice of
default being required and the Pledgee may immediately exercise in respect of
the Accounts Receivables any and all of its rights and powers set out in this
Agreement (subject to restrictions following from mandatory provisions of law).

 

B.                                    To the extent necessary, the Pledgor agrees for the benefit
of the Pledgee that upon an Event of Default it shall be deemed to be in
default (verzuim) in respect
of the Secured Obligations within the meaning of section 3:248 (1) and 6:81 of
the Dutch Civil Code without any further notice or action being necessary.

 

C.                                    To the fullest extent permitted by law, the Pledgor waives
(which waiver the Pledgee hereby accepts) any right it may have (i) pursuant to
section 3:234 of the Dutch Civil Code to demand, in the event that the Pledgee
enforces the Rights of Pledge, that the Pledgee shall also enforce any other
security interests (zekerheidsrechten) granted by any other party and (ii) of requiring the
Pledgee to firstly proceed against or claim payment from any person or entity
or enforce any guarantee or security granted by any other person or entity
before enforcing the Rights of Pledge and/or any other rights under this
Agreement.

 

 

D.                                    The Pledgor will not be entitled to request (i) the summary
proceedings judge (voorzieningenrechter)
of the district court to order that the Accounts Receivable shall be sold in a
manner deviating from the provision of section 3:250 of the Dutch Civil Code or
(ii) the cantonal judge (kantonrechter)
to order that is entitled to exercise its rights with respect to the Accounts
Receivable pursuant to section 3:246 (4) of the Dutch Civil Code.

 

E.                                      In the event that the Pledgee forecloses or intends to
foreclose the Rights of Pledge, it will not be obliged to give notice (thereof)
(as provided in section 3:249 and section 3:252 of the Dutch Civil Code) to the
Pledgor or any person having the benefit of an encumbrance on Accounts
Receivable comprised in such Rights of Pledge. 

 

F.                                      The Pledgee shall apply the proceeds of the Accounts
Receivables and the foreclosure of the Rights of Pledge or any of them in
satisfaction of the Secured Obligations subject to applicable provisions of
Dutch law.  To the extent that any
proceeds remain after the satisfaction of the Secured Obligations, the Pledgee shall
promptly (and in any event within thirty (30) days after receipt of the
proceeds) pay the surplus to the Pledgor.

 

G.                                    In addition to the undertakings contained in Clause 2.4
above, the Pledgor shall at any time, upon written request of the Pledgee execute
and cause to be filed, at the expense of the Pledgor, such documents and
instruments, and do such other acts and things, as the Pledgee may reasonably
deem desirable in obtaining the full benefits of this Agreement (including the
protection and preservation of its rights hereunder) and of the rights and
powers granted hereunder or granted to a pledgee under the laws of the
Netherlands.

 

H.                                    The Pledgor hereby grants to the Pledgee (and any of its
delegates) an irrevocable power of attorney in accordance with section 3:74 (1)
of the Dutch Civil Code to, following the issuance of a Default Notice to it
and during the continuance of an Event of Default, perform all acts and execute
all documents in order to perfect or implement this Agreement on its behalf,
and to take all actions which are necessary for the Pledgee (and any of its
delegates) to create, maintain, protect, preserve and exercise its rights under
this Agreement (acting reasonably). The parties agree that section 3:68 (Selbsteintritt) of the Dutch
Civil Code will not apply and to the extent necessary, the Pledgor hereby
waives any rights it may have under section 3:68 of the Dutch Civil Code, which
waiver the Pledgee hereby accepts.

 

 

ARTICLE 8.  TERMINATION

 

A.                                    The Pledgee is entitled to terminate (opzeggen) in whole or in part any Right of
Pledge and the contractual arrangements set forth herein. Notice of termination
must be given in writing by the Pledgee to the Pledgor.

 

B.                                      The Right of
Pledge or any of them shall terminate by operation of law when all but the last
XXX Dollars ($XXX) of
incentive payments constituting Secured Obligations have been unconditionally
and irrevocably (other than as provided in Paragraph 5.3.C of the NSS-8
Contract) paid to the Pledgee and discharged in full or have ceased to exist in
accordance with the NSS-8 Contract. At the request of the Pledgor, the Pledgee
shall confirm such termination to the Pledgor in writing and will execute all
documents reasonably requested by the Pledgor in relation thereto and all reasonable
costs in relation thereto shall be at the Pledgor’s expense.

 

However, if any payment or discharge is subsequently
avoided or must be restored on bankruptcy, liquidation or otherwise without
limitation, the Rights of Pledge created hereby and pursuant hereto shall
continue as if there had been no such payment or discharge.  The Pledgee (acting reasonably) shall be
entitled to concede or compromise any claim that any such payment or discharge
is subject to avoidance.

 

ARTICLE 9.  ASSIGNMENT

 

A.                                    Subject to applicable law, the Pledgee and the Pledgor
shall each be entitled to assign and/or transfer all or part of its rights and
obligations under this Agreement to any assignee and/or transferee to the
extent, and subject to the limitations, set forth in Article 26 of the NSS-8
Contract.

 

B.                                    The Pledgor and the Pledgee each hereby in advance gives
its irrevocable consent to (geeft
toestemming bij voorbaat) within the meaning of section 6:156 of the
Dutch Civil Code and hereby in advance irrevocably co-operates with (verleent bij voorbaat medewerking aan),
within the meaning of sections 6:159 and 6:156 of the Dutch Civil Code, any
such assignment and/or transfer executed in accordance with the relevant
provisions of Article  26 of the NSS-8
Contract.

 

ARTICLE 10.  CONFIDENTIALITY

 

A.            The Pledgee and the Pledgor shall be entitled to impart any
confidential or proprietary information arising under or relating to this
Agreement to the same 

 

 

extent, and under the same conditions, as are set forth in Article 27
of the NSS-8 Contract.

 

ARTICLE 11.  DISPUTES

 

A.            Determinations regarding the existence and amount of the
Secured Obligations shall be made in accordance with Paragraph 5.E of the NSS-8
Contract.  Any dispute arising under this
Agreement (including without limitation any dispute regarding the existence and
amount of the Secured Obligations and the Secured Obligations or the existence
of an Event of Default) shall be resolved in accordance with Article 21 of the
NSS-8 Contract.

 

ARTICLE 12.  COSTS

 

Subject to any provision to the contrary
herein, each party shall bear all costs incurred by it in connection with the
creation of the Rights of Pledge (which, for the avoidance of doubt, in
relation to the Pledgor, includes any cost incurred in connection with Clause
2. hereof) and the performance by the parties of their rights and obligations
under this Agreement. Any reasonable cost incurred by the Pledgee in connection
with the enforcement of any rights under this Agreement are for the account of
the Pledgor.

 

ARTICLE 13.  NOTICES

 

Any notices and other communications under or
in connection with this Agreement shall be given in accordance with Article 29
of the NSS-8 Contract.

 

ARTICLE 14.  liability

 

NOTWITHSTANDING ANY OTHER PROVISION HEREIN TO
THE CONTRARY, NEITHER PARTY SHALL BE LIABLE, WHETHER IN CONTRACT, TORT OR
OTHERWISE, FOR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR FOR
LOST PROFITS OR REVENUES, OTHER THAN FOR A WILFUL BREACH OR GROSS NEGLIGENCE. 

 

ARTICLE 15.  LIMITATION; WAIVER

 

A.                                    The Pledgor waives, to the fullest extent permitted by law,
its right (i) to dissolve this Agreement, pursuant to section 6:265 of the
Dutch Civil Code or on any other ground or (ii) to avoid this Agreement,
including but not limited to error (dwaling), which waiver the Pledgee hereby accepts.

 

 

ARTICLE 16.  SECURITY INTEREST ABSOLUTE

 

A.                                    All rights of the Pledgee, the Rights of Pledge and all
obligations of the Pledgor hereunder shall be absolute and unconditional
irrespective of:

 

1.                             any change in the time, manner or place of payment of the Secured
Obligations or any change of or amendment to the NSS-8 Contract and any other
document related thereto, or any other agreement or instrument relating to any
of them; or

 

2.                             any
exchange, release or non perfection of any other collateral, or any release or
amendment or waiver of or consent to any departure from any other collateral
for the Secured Obligations.

 

ARTICLE 17.  AMENDMENT OF THIS AGREEMENT

 

A.            This Agreement may only be amended by a written agreement between
the Pledgor and the Pledgee.

 

ARTICLE 18.  GOVERNING LAW AND JURISDICTION 

 

A.                                    This Agreement shall be governed by and construed in
accordance with the laws of The Netherlands.

 

B.                                    The Pledgor consents to the exclusive jurisdiction of the
courts of Amsterdam, The Netherlands. The Pledgor hereby waives any objection
that it may now or hereafter have to the jurisdiction of such courts, which
waiver the Pledgee hereby accepts. This Clause is for the benefit of the
Pledgee only and shall not limit its right to bring proceedings against the
Pledgor in connection with this Agreement or the NSS-8 Contract in any other
court of competent jurisdiction or (to the extent allowed by law) concurrently
in more than one jurisdiction.

 

ARTICLE 19.  SEVERABILITY OF PROVISIONS

 

A.                                    Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

B.                                    The parties hereto agree that they will negotiate in good
faith to replace any provision hereof held invalid, illegal or unenforceable as
set out in Clause 19.1 above with a valid provision which is as similar as
possible in substance to the invalid, illegal or unenforceable provision.

 

 

ARTICLE 20.  REMEDIES AND PREVALENCE

 

A.                                    The rights and remedies of the Pledgee herein, and the
obligations, representations and warranties of the Pledgor herein, are
cumulative and are not exclusive of any rights or remedies of the Pledgee, or
obligations, representations or warranties of the Pledgor, conferred or imposed
by law or the NSS-8 Contract. 

 

B.                                    To the extent there is a conflict between the provisions of
the NSS-8 Contract and the provisions of this Agreement, the provisions of the
NSS-8 Contract shall prevail (but only to the extent that the validity and
enforceability of the pledges created pursuant this Agreement and the powers of
attorney given pursuant this Agreement are not affected as a consequence).

 

ARTICLE 21.  REGISTRATION

 

A.                                    The Pledgee is irrevocably authorised to present this
Agreement and any agreement pursuant hereto for registration to the relevant Belastingdienst Amsterdam Afdeling Registratie Unit in The
Netherlands.

 

 

ARTICLE 22.  COUNTERPARTS

 

A.                                    This Agreement may be executed in any number of
counterparts and by way of facsimile exchange or email of executed signature
pages, all of which taken together shall constitute one and the same agreement.

 

B.                                    This Agreement has been entered into on this 22nd
day of February 2005.

 

[remainder of this page intentionally left
blank]

 

 

	
  THE
  PLEDGOR

  	
  THE
  PLEDGEE

  
	
   

  	
   

  
	
  NEW SKIES SATELLITES B.V.

  	
  BOEING
  SATELLITE SYSTEMS 

  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  By:

  
	
  Title:

  	
  Title:

  
				

 

 

ANNEX 1

 

FORM OF
SUPPLEMENTAL AGREEMENT

 

THIS SUPPLEMENTAL
AGREEMENT OF UNDISCLOSED PLEDGE OF NSS-8 CUSTOMER ACCOUNTS RECEIVABLE is dated
[•] 

 

BETWEEN:

 

1. New
Skies Satellites B.V., a
private company with limited liability (besloten vennootschap),
incorporated and existing under the laws of The Netherlands, with corporate
seat in Amsterdam, The Netherlands, having its registered address at
Rooseveltplantsoen 4, 2517 KR The Hague, The Netherlands, registered with the
Commercial Register under number 30146277 (the 
“Pledgor”); and

 

2. Boeing Satellite Systems
International, Inc., a company organized under the laws of Delaware with
its principal place of business located at 2260 East Imperial Highway, El
Segundo, CA, U.S.A. (“BSSI” or “Pledgee”);

 

WHEREAS:

 

pursuant to
Clause 2.5 of the Master Agreement (as defined below), the Pledgor must pledge
on a quarterly basis its newly acquired Accounts Receivable  (as defined below) by entering into a supplemental
agreement of undisclosed pledge of NSS-8 Customer Accounts Receivable;

 

1              DEFINITIONS AND
INTERPRETATION

 

1.1           All
capitalised terms used in this Supplemental Agreement of Undisclosed Pledge of
NSS-8 Customer Accounts Receivable (the “Agreement”),
including the recitals, and not otherwise defined herein shall have the meaning
assigned to them in the Master Agreement (as defined below).

 

1.2                                 In this Agreement the following words and
expressions shall have the following meaning:

 

“Accounts Receivable” means any and all Accounts Receivable (vorderingen op naam) of the Pledgor not
already comprised in the Rights of Pledge; and

 

“Master Agreement” means the Agreement of Undisclosed Pledge of
NSS-8 Customer Accounts Receivable dated [ ] 200   between the
Pledgor and the Pledgee.

 

 

2              PLEDGE

 

2.1           The Pledgor
hereby agrees with the Pledgee and hereby undertakes that the Pledgor shall
grant to the Pledgee the rights of pledge purported to be granted under and
pursuant to this Agreement.

 

2.2           As security for
the payment and discharge in full, as and when due (whether at stated maturity,
by acceleration or otherwise), of the Secured Obligations, the Pledgor hereby
grants, for the duration of the Security Period, to the Pledgee a first ranking
undisclosed right of pledge (stil pandrecht
eerste in rang), over all Accounts Receivable and, to
the extent it concerns future Accounts Receivable, hereby grants in advance (verpandt bij voorbaat) to the Pledgee a first ranking right of pledge over such
future Accounts Receivable and the Pledgee hereby accepts such rights of
pledge. 

 

3              INCORPORATION OF ALL PROVISIONS OF THE MASTER AGREEMENT

 

3.1           All provisions of the Master Agreement, with the exception
of Clause 2.1, 2.2 and 4 of the Master Agreement, are included in this
Agreement by way of reference. 

 

3.2           References in the Master Agreement to ‘this Agreement’
shall be read as references to this Agreement. References to ‘Accounts
Receivable’ shall be read as references to ‘Accounts Receivable’ as defined in
this Agreement.

 

4              REPRESENTATIONS AND
WARRANTIES

 

4.1                                The Pledgor represents and warrants that the following is true and
correct on the date of this Agreement and each time any future Accounts
Receivable will be pledged to the Pledgee:

 

(i)                                     the
Pledgor holds full and exclusive title to the Accounts Receivable existing from
time to time and is authorised (beschikkingsbevoegd)
to create a right of pledge thereover;

 

(ii)                                  except for the Rights of Pledge created pursuant to
this Agreement and any Permitted Liens, the Accounts Receivable have not been
encumbered with any attachment (beslag) or any rights in rem (beperkte rechten),
none of the Accounts Receivable have been assigned or pledged in advance and
all Accounts Receivable can be pledged to the Pledgee;

 

(iii)                               it has the corporate power to enter in to, and to
perform its obligations under, this Agreement;

 

(iv)                              all necessary corporate execution has been taken by
it in respect of entering into, and the performance of its obligations under,
this Agreement;

 

(v)                                 it has validly executed this Agreement; 

 

 

(vi)                              it does not violate any provision of its articles
of association by entering into, or by performing its obligations under, this
Agreement; and

 

(vii)                           this Agreement creates a valid first ranking Right
of Pledge, which is enforceable in accordance with its terms and applicable law
and its contractual obligations under this Agreement are its legal, valid and
binding obligations, enforceable in accordance with their terms and applicable
law.

 

This Agreement has been entered into on [•].

 

New Skies Satellites B.V.

 

 

	
   

  	
   

  
	
  By:

  
	
   

  
	
  Title

  
	
   

  
	
  Boeing Satellite Systems
  International, Inc.

  
	
   

  
	
   

  	
   

  
	
   

  
	
  Represented by:

  
	
   

  
	
  Title: Attorney-in-Fact

  
			

 

 

EXHIBIT 
J

 

BILL OF SALE

 

 

EXHIBIT 
K

 

INTENTIONALLY OMITTED

 

 

EXHIBIT 
L

 

LAUNCH SERVICES XXX

 

Confidential Treatment Requested

 

For Entire Exhibit

 

 

EXHIBIT 
M

 

PENDING RDWs

 

Confidential Treatment Requested

 

For Entire Exhibit

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]