Document:

Exhibit 10.8

Translated from Hebrew

 

 

 

MANAGEMENT SERVICES AGREEMENT

 

Executed on this fifth day of the month of
October, 2006

 

	
  Between:

  	
  RRSat Global Communications Network Ltd.

  
	
  (Hereinafter – “the Company”)

  
	
   

  	
   

  
	
  and between:

  	
  Del-Ta Engineering Equipment Ltd.

  
	
  (Hereinafter – “Del-Ta”)

  
	
   

  	
   

  
	
  and between:

  	
  Kardan Communications Ltd.

  
	
  (Hereinafter – “Kardan”)

  

 

WHEREAS Del-Ta and
Kardan are prepared to continue to make different services available to the
Company from time to time, as detailed in this agreement hereinafter, and all
in accordance with the needs of the Company; and

 

WHEREAS The
parties intend to set out in writing the agreement reached by them in this
matter, and all in accordance with and subject to the terms of this agreement
hereinafter:

 

Therefore the parties declare,
confirm and agree as follows:

 

1.               The Introduction to this agreement forms part of
this agreement.

 

2.               Del-Ta will make the following services available
to the Company:

 

2.1                                                         Consultations and participation in meetings with
the Chief Executive Officer of the Company and its senior officers;

 

2.2                                                         Assistance in the selection of consultants,
defining areas of operation and associated processes;

 

2.3                                                         Consultation, support and assistance in effecting
transactions with customers and suppliers;

 

2.4                                                         Finding business opportunities for the Company;

 

 

2.5                                                         Providing financial and strategic consultation in
all matters connected to the operations of the Company;

 

2.6                                                         Assistance in negotiations with other parties in
implementing the commercial activities of the Company, whether in existing
areas of operation or in new areas;

 

2.7                                                         Assistance in raising capital for the purpose of
expansion; and

 

2.8                                                         Assistance in dealings with Government
authorities including Government ministries.

 

The range of services provided as mentioned
above will be agreed upon by the Company and Del-Ta from time to time, in
accordance with the needs of the Company.

 

3.               For the services specified above, the Company
will pay to Del-Ta a fixed annual amount of US$235,000 (plus VAT), or a pro
rata portion thereof for a period of less than a year, according to the
representative exchange rate of the US dollar on the day of the payment.

 

The amount specified in this clause 3 will be
paid by the Company in four equal quarterly installments. Each installment will
be paid at the end of each quarter.

 

4.               Kardan will make the following services available
to the Company:

 

4.1                                 Assistance in the selection of consultants,
defining areas of operation and associated processes;

 

4.2                                 Consultation, support and assistance in effecting
transactions with customers and suppliers;

 

4.3                                 Finding business opportunities for the Company;

 

4.4                                 Providing financial and strategic consultation in
all matters connected to the operations of the Company;

 

2

 

4.5                                 Assistance in negotiations with other parties in
implementing the commercial activities of the Company, whether in existing
areas of operation or in new areas;

 

4.6                                 Assistance in raising capital for the purpose of
expansion; and

 

4.7                                 Assistance in dealings with Government
authorities including Government ministries.

 

The range of services provided as mentioned
above will be agreed upon by the Company and Kardan from time to time, in
accordance with the needs of the Company.

 

5.               For the services specified above, the Company
will pay to Kardan a fixed annual amount of US$163,000 (plus VAT), or a pro
rata portion thereof for a period of less than a year, according to the
representative exchange rate of the US dollar on the day of the payment.

 

The amount specified in this clause 5 will be
paid by the Company in four equal quarterly installments. Each installment will
be paid at the end of each quarter.

 

6.               The agreement will come into effect on 1.1.2007,
and remain in effect until 31.12.2007. The agreement will automatically be
renewed for a further term of one year unless Del-Ta and Kardan provide a joint
notice to the Company or the Company provides notice to Kardan and Del-Ta, that
the agreement will not be renewed. Such notice must be provided at least 30
days prior to the end of the original agreement and/or at the end of the
agreement as extended from time to time. For the avoidance of doubt, it is
clarified that Del-Ta is not entitled to cancel and/or change the agreement
without Kardan’s approval, and Kardan is not entitled to cancel and/or change
the agreement without Del-Ta’s approval.

 

3

 

7.               For the avoidance of doubt, it is clarified that
the provision of services by Del-Ta and/or Kardan in accordance with this
Agreement will not create any liability whatsoever on Del-Ta and/or Kardan in
connection with the business and/or consequences of the operations of the
Company and/or affiliates of the Company, or any other business of the Company.

 

8.               As long as Del-Ta and Kardan each have a
representative on the Board of Directors of the Company, Del-Ta is hereby
obligated to Kardan and Kardan is hereby obligated to Del-Ta to vote against
the cancellation and/or non-renewal of the agreement in all votes by the
shareholders of the Company.

 

9.               The parties confirm that the capacity of the
Company to enter into this Agreement is in accordance with the law and approved
by the Board of Directors and the General Meeting of the Company according to
law.

 

10.         This agreement cancels all other agreements in relation to the provision
of management services, if any such agreements exist, between the parties to
this agreement, except for the management services agreement between the Company
and Kardan dated 29 April 2004 which remains in effect until 31 December 2006,
and the management services agreement between the Company and Del-Ta dated 29
April 2004 which remains in effect until 31 December 2006.

 

In Witness Hereof the Parties Have Hereto Set
Their Hands

 

-Signed-

RRSat Global Communications Network Ltd.

 

-Signed -

Del-Ta Engineering Equipment Ltd.

 

- Signed -

Kardan Communications Ltd.

 

4EXHIBIT 10.9

 

CERTAIN PORTIONS OF
THIS AGREEMENT HAVE BEEN REDACTED AND SUBMITTED SEPARATELY TO THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. THE REDACTED PORTIONS ARE
MARKED AS ASTERISKS.

 

 

EUTELSAT S.A.

 

AND

 

RR SATELLITE COMMUNICATIONS
LTD

 

ALLOTMENT AGREEMENT

 

 

Ref: HB6 125 31/10/05

 

 

THIS ALLOTMENT AGREEMENT (THE “ALLOTMENT
AGREEMENT”) IS MADE AS OF

 

THE 31ST OCTOBER 2005

 

Eutelsat S.A., a French joint-stock company (“société anonyme”), registered with the
Registry of Commerce of Paris under the number 422 551 176, whose registered
office is located at 70, rue Balard, F-75502 Paris Cedex 15, France, duly
represented for the purposes hereof by Giuliano Berretta, CEO,

 

 

(hereinafter referred to as “Eutelsat”)

 

 

OF THE FIRST PART

 

AND

 

RR Satellite Communications Ltd, an Israeli company, whose registered office is located
at 4 Hagoren St, Industrial Park, Omer 84965, Israel, duly represented for the
purposes hereof by David Rivel, General Manager,

 

(hereinafter referred to as the “Allottee or RR Sat”)

 

OF THE OTHER PART

 

(Eutelsat and the Allottee are sometimes hereinafter referred to
individually as a “Party” and collectively as the “Parties”).

 

WHEREAS, the Parties entered into an Allotment Agreement on 24th
August 2004, for the provision by Eutelsat of satellite telecommunication
capacity on the Hot BirdTM 6 satellite (transponder 125) (hereinafter referred
as “the AA”);

 

WHEREAS, the Parties also entered into a Telecommunications Services
Agreement dated 24th August 2004, for the provision by RR Satellite
to Eutelsat of multiplexing and uplinking services on the Hot BirdTM 6
satellite, transponder number 125 (hereinafter referred as “the TSA”);

 

WHEREAS, due to evolutions in their own obligations and commercial
opportunities, the Parties now wish to terminate these two agreement in order
simultaneously to enter into a new global agreement.

 

NOW, THEREFORE, THE PARTIES HAVE AGREED AS
FOLLOWS:

 

2

 

SECTION I - SECTION I - GENERAL PROVISIONS

 

ARTICLE 1 - Definitions – Incorporation of Annexes

 

1.1                               For the
purposes of this Allotment Agreement, the following terms shall have the
meanings ascribed to them hereinafter:

 

•                                          “Affiliate”
means, with respect to one of the Parties, a person or entity that directly, or
indirectly through one (1) or more intermediaries, controls, is controlled by,
or is under common control with that Party; provided that for the purpose of
the foregoing, “control” means the possession, direct or indirect, of the power
to direct or cause the direction of the management or policies of a person or
entity through the ownership of voting securities or otherwise;

 

•                                          “Allotted Capacity”
collectively refers to the space segment capacity having the technical
characteristics described in the Tables in Annex A as amended from time to
time, and more specifically defined in Article 1 section II below;

 

•                                          “Digital Platform”
means a common facility located in Israel, through which the Service is
provided, that permits the transmission of digital DVB/MPEG-2 signals via a
single 27.5Msymbols MPEG-2 digital transport stream, which is compatible with
Direct Home Equipment.

 

•                                          “Downlink Infrastructure”
means the equipment necessary for reception of data via a satellite based
communication system.

 

•                                          “Equipment”
means the equipment necessary for the provision of the Service, which RR Sat
represents and warrants shall be in good working order and in conformity with
all technical and regulatory requirements.

 

•                                          “Earth Station” means
the antennas, switching facilities and related equipment that form a link
between Eutelsat satellites and terrestrial networks;

 

•                                          “Eutelsat Space Segment” means
in-orbit satellites and all other related infrastructure owned, leased or
operated by or on behalf of Eutelsat to support the operation of the
satellites;

 

•                                          “Ground Infrastructure”
means either Downlink or Uplink Infrastructure.

 

•                                          “Ramp-Up” means
the incremental allotments of capacity according to the Ramp-Up Calendar set
out in Article 1 section II below.

 

3

 

•                                          “Satellite” means the HOT BIRDTM 6 satellite of the
Eutelsat Space Segment;

 

•                                          “Service Commencement Date” means 1st
October 2005;

 

•                                          “Service Terms &
Conditions” means the document setting forth the procedures,
conditions and tariffs for reserving, booking and contracting satellite
capacity from Eutelsat, as amended from time to time by Eutelsat.

 

•                                          “Uplink Infrastructure”
means the equipment necessary for the transmission of data to a satellite
communication system.

 

1.2                               The
Annexes to this Allotment Agreement are an integral part hereof.

 

1.3                               The
Allottee acknowledges and agrees having read, understood and accepted the
current version of the Service Terms and Conditions (version 1.2 dated November
2002), which are hereby entirely incorporated into this Agreement.  In the event of contradiction or discrepancy
between the terms of this Agreement and said version of the Service Terms and
Conditions, the terms of this Agreement shall prevail in all circumstances.  For the purposes of this Agreement, unless
otherwise defined herein, all capitalised terms shall have the meanings
ascribed to them in the Service Terms & Conditions.

 

ARTICLE 2 - Purpose

 

The purpose of this Agreement is to terminate the AA and the TSA and
simultaneously conclude the allotment to the Allottee of the Allotted Capacity
and the provision by the Allottee of the Service, and to define the respective
rights, obligations and liabilities of the Parties in respect thereof.  By concluding this new Allotment and Service
Agreement, all obligation regarding early termination of the previous AA and
TSA are cancelled.

 

ARTICLE 3
- Termination of the AA and the TSA and conclusion of the present contract

 

The Parties hereby mutually agree with no liability whatsoever for any
Party, to terminate the AA and the TSA with effect on 30th September
midnight and to enter simultaneously into the present contract with effect on 1st
October 0.00 (Paris time).  The
termination is subject to the conclusion of the present new contract.

 

ARTICLE 4 - Term

 

This Agreement shall enter into force on the 30th September
2005 and shall continue for the operational lifetime of the Satellite, (the “Term”)
which shall be a minimum period of 12 years commencing on 26

 

4

 

September 2002 (the “Minimum Lease Period”) unless otherwise terminated
in accordance with the terms hereof.  For
the avoidance of doubt, in the event that, after the expiration of the Minimum
Lease Period, the Satellite continues operating in stable orbit in accordance
with this Agreement, the Allottee’s commitment to lease the Allotted Capacity
shall continue until such time as the Satellite ceases operations in stable
orbit (the “End date”).  Eutelsat shall
provide the Allottee with reasonable notice of the End date.

 

ARTICLE 5 - Representations and Warranties

 

5.1                               Eutelsat
hereby represents and warrants to the Allottee as follows:

 

(i)                                     the execution, delivery and performance of this Agreement
have been duly authorised by all necessary corporate action on the part of
Eutelsat;

 

(ii)                                  this Agreement constitutes a legal, valid and binding
obligation on Eutelsat.

 

5.2                               The
Allottee hereby represents and warrants to Eutelsat as follows;

 

(i)                                     the execution, delivery and performance of this
Agreement have been duly authorised by all necessary corporate action on the
part of the Allottee;

 

(ii)                                  this Agreement constitutes a legal, valid and binding
obligation on the Allottee;

 

(iii)                               the Allottee has obtained and, in respect of the
Allotted Capacity, will have obtained prior to rendering any Services in
connection therewith, all applicable clearances, licences, consents and
approvals in order for the Allottee to operate its Earth Station(s); receive, distribute,
resell, promote, use and provide the Allotted Capacity and any Services related
thereto; and perform all of its other obligations hereunder;

 

(iv)                              in the event that the Allotted Capacity will be
utilised for broadcasting TV programs by a broadcaster not based in the
European Economic Area, and such program(s) may be received by the public in
the European Union, the said program(s) will have been duly licensed (“conventionné”)
by the French Conseil Supérieur de l’Audiovisuel if not already licensed by a
competent authority of a country of the European Economic Area, it being
specified that Eutelsat shall provide to the Allottee necessary information an
assistance in respect of the foregoing in order to facilitate the licensing
process.

 

5.3                               Each party
shall be liable to the other party, and shall indemnify and hold the other
party harmless from, any breach of their respective representations and
warranties set forth above.

 

5

 

ARTICLE 6
- TERMINATION 

 

6.                                      The parties have the option to terminate the agreement
after 5 years, as from 1st October 2010 with a 90 (ninety) days
advanced notice and without any Early Termination Charges. During the first
five years of this contract, no termination for convenience is allowed.  Therefore, any termination by the Allottee of
this contract before 1st October 2010 shall give rise to the payment
of an amount corresponding to all the sums due to Eutelsat before the
termination date 1st October 2010 + 90 days.

 

6.1                               In the
event of a breach by either party of a material condition of this Agreement
(each a “Material Breach,”), the injured party shall be entitled to notify the
other party of such Material Breach by registered or certified mail, return
receipt required, and require that the other party remedy such Material Breach
within fifteen (15) days of such notice.

 

6.2                               In the
event that the other party fails to remedy a Material Breach within fifteen
(15) days of the other party’s receipt of the notice provided for above, the
injured party shall be entitled to terminate this Agreement on ten (10) day’s
notice delivered by registered or certified mail, return receipt requested.

 

6.3                               In the
event that the Allottee Capacity is interrupted for a consecutive period of 72
(seventy-two) hours, and Eutelsat is unable to provide alternative capacity on
a HOT BIRDTM satellite (save for the HOT BIRDTM
satellite), the Allottee shall be entitled to terminate this Agreement by
written notification to Eutelsat.

 

6.4                               This
Agreement shall automatically terminate upon the termination of the provision
of the satellite capacity as per section II below (for any reason whatsoever),
unless if otherwise expressly agreed by Eutelsat in writing.

 

6.5                               Neither
Party shall be liable to the other for any loss or damage (including those for
direct or consequential damages or other loss of revenue or business injury)
sustained by the reason of termination of this Agreement under this Article.

 

ARTICLE 7 - Assignment –Resale - Succession

 

7.1                               Neither
Party may transfer or assign this Agreement or any of its rights or obligations
hereunder without the prior written approval of the other Party, provided that
Eutelsat shall be freely entitled to transfer or assign this Agreement to any
Affiliate of Eutelsat.

 

7.2                               The
Allottee shall have the right to resell or to allot all or any part of the
Services or Satellite Capacity to a third Party, provided that Allottee shall
be solely liable for this resale and shall

 

6

 

indemnify and hold harmless Eutelsat for any
claim, action or allegation made by any third party arising out of such resale.

 

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

 

ARTICLE 8 - Force Majeure

 

8.1                               Neither
Party shall be liable for failure to perform any obligation under this
Agreement due to a case of Force Majeure.

 

8.2                               Upon
removal or cessation of the case of Force Majeure,
all obligations under this Agreement shall resume.  However, in the event that Force Majeure exceeds thirty (30) consecutive days, then
following such thirty (30) day period, the Parties shall meet and negotiate,
inter alia, the conditions for the termination or modification of this
Agreement.

 

ARTICLE 9 - Amendments – Entire Agreement and Understanding of the
Parties

 

9.1                               Any
amendment of the terms and conditions of this Agreement shall be in writing and
signed by a duly authorised representative of both Eutelsat and the Allottee.

 

9.2                               This Agreement
and its annexes constitutes the entire agreement and understanding between the
Parties in respect of the subject-matter hereof, and expressly supersedes and
replaces any previous writings, understandings, accords, protocols, or
otherwise relating thereto.

 

ARTICLE 10 - Severability

 

Should any provision of this Agreement be found to be invalid, illegal
or unenforceable under the laws of any relevant jurisdiction, the invalid or
unenforceable provision shall be given no effect but the remaining provisions
of this Agreement shall remain in full force and effect.  The Parties shall forthwith enter into good
faith negotiations to amend the Agreement so that the invalid, illegal or
unenforceable provision is replaced by a valid, legal, and enforceable provision,
which conforms to the extent possible to the intended purpose of the former
provision.

 

ARTICLE 11 - Confidentiality

 

11.1                        Save for
the Parties’ respective personnel, who require certain information in
connection with the performance of this Agreement, each Party undertakes not to
disclose under whatever form, without the prior written consent of the other
Party, any Confidential Information (as said term is defined below) obtained,
directly or indirectly, during the negotiation and performance of this

 

7

 

Agreement.  Each Party undertakes and guarantees that said
personnel shall strictly comply with the foregoing obligation of
confidentiality.

 

11.2                        For the
purposes hereof “Confidential Information” shall mean any information or
material which is proprietary to the disclosing party or designated as
Confidential Information by the disclosing party, whether or not owned or
developed by the disclosing party, which is not generally known by
non-disclosing party personnel, and of which the receiving party may obtain
knowledge through or as a result of the relationship established hereunder with
the disclosing party, access to the disclosing party’s premises, or
communications with the disclosing party’s employees or independent
contractors.

 

11.3                        Confidential
Information includes, but is not limited to, the following types of
information: designs, concepts, drawings, ideas, inventions, specifications,
techniques, discoveries, models, data, source codes, object codes,
documentation, diagrams, flow charts, research, development, processes,
procedures, know-how, new product or new technology information, marketing
techniques and materials, marketing plans, timetables, strategies and
development plans (including prospective trade names or trademarks), customer
names and other information related to customers, pricing policies, and
financial information.

 

11.4                        Notwithstanding
anything contained herein to the contrary, Confidential Information shall not
include (i) information developed independently by the receiving Party or
lawfully received from a third party not under an obligation of
confidentiality, or (ii) information which has entered into the public domain
(save through the fault of either Party), or (iii) information disclosed
pursuant to law, judicial order or governmental regulation.

 

11.5                        The
obligations contained in this article shall survive the termination or
expiration of this Agreement for a period of three (3) years.  Upon termination or expiration of this
Agreement, the Parties shall each return to the other, if requested by the
disclosing party, destroy all Confidential Information belonging to the other
party.  Any destruction of documents must
be confirmed in writing to the disclosing party.

 

ARTICLE 12 - Intellectual and Industrial Property Rights

 

12.1                        Eutelsat
owns or benefits from certain intellectual and industrial property rights in
connection with, inter alia, Eutelsat operational procedures (including, but
not limited to, patents, know-how, trademarks, tradenames, trade secrets, and
copyrights) (hereinafter collectively referred to as “Intellectual Property
Rights”).  Eutelsat hereby grants the
Allottee the non-exclusive limited

 

8

 

right to use the Intellectual Property Rights
solely and exclusively to the extent necessary for the performance of the
Agreement.

 

12.2                        The
Intellectual Property Rights shall remain the entire and exclusive property of
Eutelsat. Any unauthorized use of the Intellectual Property Rights shall
constitute a material breach of this Agreement.

 

ARTICLE 13 - Branding - Advertising

 

13.1                        Eutelsat
shall have absolute discretion over the development, exploitation and
commercialization of Eutelsat’s brands.  The
Allottee shall strictly adhere to Eutelsat’s brand guidelines as communicated
to Allottee and amended from time to time.

 

13.2                        The
Allottee shall not advertise the fact that it uses Services or Satellite
Capacity from Eutelsat without the prior written approval of Eutelsat (which
approval shall not be unreasonably withheld or delayed).

 

ARTICLE 14 - Relationship of Parties

 

The Parties intend that the relationship created between them by this
Agreement shall be as independent contractors.  This Agreement is not to be construed in any
way as creating any partnership, principal-agent, master-servant, joint-venture
or other similar relationship between the Parties.

 

ARTICLE 15 - Press Releases

 

Neither Party nor the Allottee’s customer(s) may issue any press release
in connection with this Agreement without the prior written consent of the
other Party.

 

ARTICLE 16 - Notices

 

16.1                        Any
contractual notice served under this Agreement (including invoices and any
other written communications required under this Agreement) shall be in writing
and shall be given by any of the following methods: hand, fax, international
courier, certified or registered mail to the addresses specified below for each
Party, or such other address or fax number as may be notified by either Party
in writing to the other Party.  Each
notice which shall be delivered shall be deemed received at such time as it is
delivered to the addressee Party, with the return receipt, messenger receipt or
delivery receipt being deemed conclusive evidence of said receipt.

 

9

 

16.2        Eutelsat’s address
for the service of any notice by the Allottee under this Agreement shall be:

 

Eutelsat
SA

70, rue Balard

75502 Paris cedex 15

France

 

For
legal matters: 

Attention: Michael Freundlich, General Counsel

Fax number: +33 1 53 98 32 80

 

For
billing matters: 

Thierry Scheidwasser, Head of Customer Accounts and Billing Group

Fax number: +33 1 53 98 41 74

 

For
commercial matters: 

Serge Dray, Products and Projects Manager, Media & New Media

Fax number: +33 1 53 98 36 59

 

For
technical/operational matters: 

Jacques Baudu / ltplan@eutelsat.fr

Fax number: +33 1 53 98 30 00

 

16.3        The Allottee’s
address for the service of any notice by Eutelsat under this Agreement shall
be:

 

RR
Satellite Services Ltd

4 Hagoren St.

Industrial Park

 

Omer
84965

Israel

 

Telephone:
+972-8-6257500

Fax: +972-8-6257501

 

For
legal matters: David Rivel, General Manager, david@rrsat.com

For billing matters: Nurit Cohen, nurit@rrsat.com

For commercial matters: Lior Rival, VP Sales & Marketing, lior@rrsat.com

For technical/operational matters: Ziv Mor, Technical Director, zivmor@rrsat.com

 

10

 

ARTICLE 17 - Governing Law 

 

This Agreement and the relationship between the Parties shall be governed
by and construed in accordance with the laws of France, without regard to
conflicts of law provisions.

 

ARTICLE 18 - Settlement of Disputes

 

All disputes arising in connection with this Agreement which cannot be
settled amicably within thirty (30) days from notification by a Party shall be
submitted to the exclusive jurisdiction of the competent courts of Paris
(France).

 

ARTICLE 19 - Entire Agreement

 

This Agreement constitutes the entire agreement between the Parties and
supersedes all previous understandings, commitments or representations
concerning its subject matter.

 

11

 

SECTION II - SPECIFIC PROVISIONS RELATED TO THE ALLOTMENT OF CAPACITY

 

ARTICLE 1 - Allotment – Ramp-Up Calendar - Follow-On Capacity

 

1.1                               Allotment –
Ramp-Up Calendar

 

(i)                                     On the Service Commencement Date the Allottee leases
from Eutelsat ****(1) Mbit/s of space segment capacity via transponder 125 of
the Satellite.  During a one-year period
from Service Commencement Date, the Allottee hereby expressly undertakes to
lease between ****(1) Mbps and ****(1) Mbps.  The upgrade of the Allottee capacity from ****(1)
Mbit/s to throughput comprised between ****(1) Mbps and ****(1) Mbps will be no
latter than January 20, 2006, upon receipt of 15 days in advance notification
by Eutelsat of the availability of said capacity.

 

(ii)                                  From the 15th November 2005 to 1st
October 2006, the Allottee lease from Eutelsat ****(1) Mbps on Hot BirdTM
3, transponder n°72.  RR Sat will have
the right to terminate the allotment of these ****(1) Mbps as from 20th
January 2006 with 20 days advance notice.

 

(iii)                               From the 1st October 2007 throughout the
Term, the Allottee hereby expressly undertakes to lease from Eutelsat ****(1)Mbit/s
of space segment capacity via transponder 125 of the Satellite (hereinafter
referred to as the “****(1)Mbit/s Capacity”).

 

ARTICLE 2 - ****(1)

 

****(1).

 

ARTICLE 3 - Security Deposit - Utilisation Charges

 

3.1                               Security
Deposit

 

(i)                                     The Allottee shall pay to Eutelsat upon the signature
hereof the sum of ****(1) Euros (the “Security Deposit”) as security for the
payment of the Utilisation Charges and the performance of Allottee’s
obligations hereunder.  The security that
was already paid for the AA agreement will be used for this agreement.

 

(ii)                                  Subject to the terms of Article 13.5 below, the
Security Deposit will be returned to the Allottee upon the expiration of this
Agreement.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

12

 

3.2                               Utilisation
Charges

 

The Utilisation Charges that the Allottee shall pay for the Allotted
Capacity shall be calculated at the rate of ****(1) per Mbit/s per month.

 

ARTICLE 4 - Payment

 

Payment of the Utilisation Charges shall be made by the Allottee on a
monthly basis, in accordance with the following terms:

 

4.1                               Invoices
for Utilisation Charges shall be issued by Eutelsat on a monthly basis in
arrears.

 

4.2                               Invoices
to be issued by Eutelsat under this Agreement shall be sent by mail to the
following address:

 

RR Satellite Communications Ltd

Attn: Nurit Cohen

4 Hagoren St.

Industrial Park, Omer 84965

Israel

 

Phone number: +972-8-6257500

Fax number: +972-8-6257501

 

4.3                               Payments
shall be made at the latest ****(1) from the date of the corresponding invoice
(the “Payment Due Date”).

 

4.4                               Unless
otherwise instructed by Eutelsat in writing, payments shall be made by wire
transfer (all related costs being assumed by the payer) to the following
account (the “Designated Account”):

 

	
  Bank:

  	
   

  	
  ****(1)

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  ****(1)

  
	
   

  	
   

  	
   

  
	
  Bank Code:

  	
   

  	
  ****(1)

  
	
   

  	
   

  	
   

  
	
  Agency Code:

  	
   

  	
  ****(1)

  
	
   

  	
   

  	
   

  
	
  Account No:

  	
   

  	
  ****(1)

  

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

13

 

	
  Account Owner:

  	
   

  	
  ****(1)

  
	
  Swift Code:

  	
   

  	
  ****(1)

  
	
  IBAN No:

  	
   

  	
  ****(1)

  

 

4.5                               Payments
are deemed to have been made on the day when the relevant sum is credited to
the Designated Account.

 

4.6                               In the
event that full payment has not been made by the Payment Due Date interest
shall be charged on any unpaid amount as from said date.  This interest shall be calculated at a rate of
****(1) per cent (****(1)%) per annum for the first three months and ****(1)
per cent (****(1)%) per annum thereafter and charged on a daily basis.

 

4.7                               All sums
payable by the Allottee under this Agreement shall be exclusive of all
applicable taxes, levies, duties, costs, withholdings, deductions or any
charges of equivalent effect, which may be payable by the Allottee (“Taxes”).  Accordingly, the Allottee shall be financially
responsible for, and shall pay all Taxes imposed on or related to the
performance of this Agreement.

 

ARTICLE 5 - Conditions for Use or Provision of the Allotted Capacity

 

Throughout the Term, the Allottee must satisfy the following conditions,
it being specified that each of these conditions constitutes a material term (cause déterminante) of this Agreement, in the absence of
which the Parties would not have contracted:

 

(i)                                     procure and maintain all licenses, approvals, and
authorisations, required by applicable law and regulations, in order to
receive, lease, distribute, sub-lease, resell, promote, use and provide the
Allotted Capacity;

 

(ii)                                  comply with all technical specifications and
operational requirements of Eutelsat, and to ensure that the same are fully
complied with by user of the Allotted Capacity;

 

(iii)                               if applicable, install, license, operate and maintain
Earth Stations and/or terrestrial facilities necessary to communicate to and
from the relevant satellite of the Eutelsat Space Segment;

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

14

 

(iv)                              as a prerequisite for access to Eutelsat satellites,
each Earth Station must be approved in writing by Eutelsat and must be in
conformity with the technical requirements of the relevant Eutelsat Earth
Station Standard(s) (“EESS”) and the Eutelsat Systems Operational Guide (“ESOG”).
These documents (as amended from time to time) are freely available to the
Allottee upon request;

 

(v)                                 strictly comply with the purpose, destination and
usage specifications of the relevant category(ies) of the Allotted Capacity as
set out in the Service Terms and Conditions;

 

(vi)                              provide written evidence of Allottee’s financial
solvency promptly upon request by Eutelsat.

 

ARTICLE 6 - Compliance with Regulations

 

6.1                               The
Allottee shall comply with all applicable regulatory and licensing requirements
imposed by the relevant authorities.

 

6.2                               In respect
of any Earth Station which has been approved by Eutelsat for access to the
Eutelsat Space Segment, the Allottee shall ensure, throughout the period during
which this Earth Station is operated in connection with the Allotted Capacity,
that the Earth Station complies and is operated in accordance with the terms
and conditions specified in the approval documents.  The Allottee shall be liable for any damage or
interference resulting from a failure to comply with the foregoing provisions.

 

ARTICLE 7 - Service Interruptions – Liability – Indemnification –
Exclusions of Liability

 

7.1                               Eutelsat
is bound by a standard duty of care.  Accordingly,
save as expressly set out herein, Eutelsat shall not be liable for any damage
or loss sustained by the Allottee as a result of Eutelsat’s inability, despite
its reasonable efforts, to provide the Allotted Capacity or as a result of any
interruption of the availability of the Allotted Capacity or any degradation of
its technical characteristics.

 

7.2                               The
Allotted Capacity is optimised for on-board transponder performance
availability of 99.7% (ninety-nine point seven percent) per year (the “Annual
Availability Rate”).  The Annual
Availability Rate does not take into account interruptions or deterioration of
the supply of the Allotted Capacity resulting, directly or indirectly, from
atmospheric or extra-atmospheric conditions such as solar storms or flares,
meteorites, and/or solar conjunctions causing earth station outages (lasting a
few minutes per day during a maximum period of three to five days,

 

15

 

generally occurring at the beginning of March
and October); preventive maintenance operations carried out after prior
consultation of the Allottee.

 

7.3                               Any
interruption of the Allotted Capacity under this Agreement occurring during the
period between 99.7% and 100% total annual availability, shall give rise to a
credit for free capacity in accordance with the following terms:

 

(i)                                     The interruption must be caused by on-board
transponder under-performance, continue for at least fifteen (15) consecutive
minutes, provided that an interruption shall not be taken into account for
periods during which technical and operational measurements are being performed
under the relevant Technical Annex.

 

(ii)                                  The Allottee shall be entitled to credit for free
capacity equal to the duration of the interruption(s) as defined above, to be
offset against the next available invoice.

 

7.4                               Below the
Annual Availability Rate, Eutelsat will only be held liable for any interruptions
directly attributable to a breach by Eutelsat of its obligations under this
Agreement. In any case, sums which may be claimed by the Allottee to repair
damages suffered as a result of a breach by Eutelsat of its obligations to
provide the Allotted Capacity shall not exceed three (3) months’ utilisation
charges per annum, inclusive of any credits provided in accordance with the
terms of Article 7.3 above.

 

7.5                               Exclusions
of Liability

 

(i)                                     Eutelsat may only be held liable for damages directly
resulting from its breach of an obligation hereunder and arising out of an act
that Eutelsat has committed. Accordingly, Eutelsat shall not be liable for any
interruption or deterioration of the supply of the Allotted Capacity resulting,
inter alia, from:

 

•                                          failure, breakdown, loss or destruction of the
concerned satellite for reasons not attributable to Eutelsat or if the cause or
origin thereof is unknown;

 

•                                          failure, breakdown, malfunctioning, loss or
destruction of the equipment and/or the software used for monitoring,
maintaining or controlling the concerned satellite, if said failure, breakdown,
malfunctioning, loss or destruction is not attributable to Eutelsat or if the
cause or origin thereof is unknown;

 

•                                          interruption or deterioration of the supply of the Allotted
Capacity resulting, directly or indirectly, from atmospheric or
extra-atmospheric conditions (solar storms or flares, meteorites, etc.);

 

16

 

•                                          interruption or deterioration of the supply of the
Allotted Capacity resulting from the jamming, modification or modulation of the
emission frequencies of the concerned satellite, if said interruption or
deterioration is not attributable to Eutelsat or if the cause or origin thereof
is unknown.

 

(ii)                                  The Allottee shall be liable to Eutelsat, and shall
indemnify and hold harmless Eutelsat and/or any Affiliate of Eutelsat, from any
loss, damage and expenses (including outside attorney’s fees) suffered by
Eutelsat and/or any Affiliate of Eutelsat for loss or damage to the Satellites
or any equipment, material, or other element which is part of the Eutelsat
Space Segment, resulting, directly or indirectly, from any act or omission of
the Allottee or use of the Allotted Capacity or from the operation of Earth
Stations owned, controlled by, or registered under the name of the Allottee or
its customer(s).  Provided that its total
liability under this section shall not exceed the total sum of the Utilization
Charges paid to Eutelsat under this agreement in the last 6 months prior to the
indemnification event, unless the loss was caused by a deliberate act or
omission of the Allottee.

 

(iii)                               Indemnification under this agreement is subject to the
following (a) party notifying the other promptly in writing of the Claim or threat
thereof (b) the other party is given full and exclusive authority for the
conduct of the defense and settlement of the Claim and any subsequent appeal;
and (c) the notifying party is giving the other party all information and
assistance reasonably requested by it in connection with the conduct of the
defence and settlement of the Claim and any subsequent appeal.

 

(iv)                              Eutelsat shall not be liable for, and the Allottee
shall hold Eutelsat harmless from, any damages suffered by a third party,
including but not limited to any user of the Allotted Capacity.

 

ARTICLE 8 - Obligations and Liabilities of the Allottee

 

(i)                                     The Allottee shall be liable to Eutelsat, and shall
indemnify and hold harmless Eutelsat and/or any Affiliate of Eutelsat, from any
loss, damage and expenses (including outside attorney’s fees) suffered by any
third party as a result of the operation of Earth Stations owned, controlled
by, or registered under the name of the Allottee or its customer(s).  Provided that its total liability under this
section shall not exceed the total sum of the Utilisation Charges paid to
Eutelsat under this section in the last 6 months prior to the indemnification
event, unless the loss was caused by a deliberate act or omission of the
Allottee.

 

(ii)                                  The Allottee shall be liable to Eutelsat and shall
indemnify and hold harmless Eutelsat and/or any Affiliate of Eutelsat from any
loss, damage and expenses (including outside attorney’s fees)

 

17

 

suffered by Eutelsat and/or any Affiliate of
Eutelsat as a result of claims, actions, allegations or proceedings brought by
any third party against Eutelsat or any Affiliate of Eutelsat, for acts or
omissions of the Allottee or its customer(s) resulting, directly or indirectly,
in the degradation, interruption or corruption of any services, content or data
transmitted via the Eutelsat Space Segment or any telecommunications network.

 

(iii)                               Neither Eutelsat nor any Affiliate of Eutelsat shall
be liable to Allottee for any acts or omissions of third parties, including,
but not limited to, acts or omissions resulting, directly or indirectly, in the
degradation, deterioration, interruption or corruption of the Allotted Capacity
or the content transmitted via the Allotted Capacity.

 

(iv)                              The Allottee shall be liable to Eutelsat, and shall
indemnify and hold harmless Eutelsat and/or any Affiliate of Eutelsat from any
losses, damages and expenses (including outside attorney’s fees) suffered by
Eutelsat and/or any Affiliate of Eutelsat as a result of claims, actions,
allegations or proceedings based on an infringement or alleged infringement of
the intellectual property rights of any third party, and arising in connection
with the provision of the Allotted Capacity.

 

(v)                                 Eutelsat shall not be liable for the information sent
on its network by the Allottee. Furthermore, Eutelsat reserves the right to
temporarily suspend the Allottee’s access to Eutelsat’s network, without
incurring any liability, in order to prevent or to stop, inter alia, damage or
degradation of the network’s integrity, including, but not limited to,
spamming, hacking, preclusion of service to a third party caused by the
Allottee or anyone accessing Eutelsat network via the Allottee. Eutelsat shall
notify the Allottee within a reasonable period of its intention to suspend the
service, except in duly justified cases of emergency.  Access to the network shall only be reopened
by sufficient measures aiming at preventing or stopping damage to or
degradation of Eutelsat’s network.  During
any of said interruptions, the Allottee shall be liable for the payment of all
charges hereunder, it being specified for the avoidance of doubt that these
interruptions shall be deemed to be attributable to the Allottee.

 

(vi)                              The Allottee undertakes not to transmit or broadcast,
or cause to be transmitted or broadcast, via any Satellite, content which would
be deemed to be a violation of international public order or the laws of the
countries or territories to which such content is accessible.  Neither Eutelsat nor any Affiliate of Eutelsat
shall be liable to Allottee for the content transmitted via the Allotted
Capacity.  To the extent technically
feasible, the Allottee shall stop any transmission on the Allotted Capacity
within 1 hour of request of Eutelsat if this transmission is causing
interference or harm to the operation and provision of space segment capacity
within the Eutelsat satellite fleet, as justified by objective evidence
(including inter alia affidavits produced by a third party in

 

18

 

the satellite profession) and hereby holds
Eutelsat harmless from any and all liability arising therefrom, provided that
such interference and/or harm is not caused by the fault of Eutelsat. During
any of said interruptions, the Allottee shall be liable for the payment of all
charges hereunder, it being specified for the avoidance of doubt that these
interruptions shall be deemed to be attributable to the Allottee.

 

ARTICLE 9 - Termination – Default - Suspension

 

Eutelsat may suspend performance of its obligation to provide the
Allotted Capacity if any payment in respect of Utilisation Charges or otherwise
remains outstanding for more than two (2) months. Suspension shall be effective
ten (10) work days after receipt by the Allottee of formal notice requesting
payment of such unpaid sums and shall cease on receipt of the sums due. When
provision of the Allotted Capacity resumes, Eutelsat shall promptly provide
notification thereof. However, in the event that the period of suspension
exceeds thirty (30) days, this Allotment Agreement shall automatically be
terminated with no formality required and no liability whatsoever shall be
incurred by Eutelsat.

 

19

 

SECTION
III - SPECIFIC PROVISIONS RELATED TO THE PROVISION OF THE SERVICE

 

ARTICLE 1
- Description of the Telecommunication Service

 

The telecommunications services to be rendered by RR Sat hereunder (the “Service”)
consist of the following elements:

 

1.1                               Multiplexed
capacity

 

RR Sat shall reserve and place at the exclusive disposal of Eutelsat,
for use by Eutelsat and its customers, the following multiplexed capacity:

 

(i)                                     From the 1st October 2005 to 30th
September 2006 thereafter, up to ****(1)Mbit/s;

 

1.2                               Telecommunications
Uplink Services

 

Simultaneous delivery via satellite of programming for Direct to Home
transmission.  This includes:

 

(i)                                     Receiving the Programs from their original orbital
locations (as described in Annex 1),

 

(ii)                                  Re-multiplexing the Programs, not including videotext
(as described in Annex 1),

 

(iii)                               Multiplexing into one digital Transport Stream of ****(1)
Msymbols or ****(1) Mbps (as described in Annex 1),

 

(iv)                              Uplinking the signals to the HOT BIRD 6 satellite (as
described in Annex 1),

 

(v)                                 Uplinking the signals to any other satellite of the
Eutelsat space segment in orbit at the time, it being specified that RR Sat
shall accommodate all requests (including those for which the diligent order
and purchase of the relevant additional equipment may be required), provided
that any of such new elements that are introduced into the Service shall be
purchased by, and shall remain the property of, Eutelsat. Any additional costs
that may be incurred by RR Sat as a result of the foregoing shall be charged to
Eutelsat at the best market conditions.

 

(vi)                              Strict Monitoring and Control of the operations,
including the quality of the channels (as described in Annex 2).

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

20

 

1.3                               Reporting

 

RR Sat shall provide to Eutelsat a report at the latest on every fifth
(5th) working day (Israeli calendar) of each month concerning the operation of
the Service and specifically detailing the cause and remedial actions (if
applicable) in respect of any anomalies, failures or interruptions occurring
during the previous month.

 

ARTICLE 2
- Implementation of the Service

 

RR Sat expressly acknowledges and agrees that Eutelsat requires the
Service to start on 1st October 2005 and shall continue until the
end of the Allottee Agreement as per Section I.

 

ARTICLE 3
- Conditions for the implementation of new programs

 

Eutelsat shall communicate all the necessary information and special
requirements with sufficient notice to allow RR Sat to implement the Service
for each new customer of Eutelsat or new programming. RR Sat shall provide to
Eutelsat’s customer all necessary technical and operational information in
order to permit the efficient up-take of the Service. A contact number and
person shall be available for Eutelsat’s customers during working hours. No
bona fide customer proposed by Eutelsat shall be refused by RR Sat unless said
customer does not have the proper licences or authorisations or unless it is a
direct competitor of RR Sat.

 

ARTICLE 4
- Representations and warranties

 

RR Sat hereby represents and warrants to Eutelsat as follows:

 

(i)                                     RR Sat shall comply with all laws, regulations, or
professional codes or practices applicable in Israel and in particular, shall
satisfy any legal or regulatory conditions, filing, notices, proceedings or
otherwise, necessary for the performance of this Agreement.

 

(ii)                                  RR Sat shall bear and pay and hold Eutelsat harmless
from any and all liabilities or claims for any income taxes, profit taxes,
property taxes, stamp taxes, or surtaxes of whatever nature resulting from
their execution of or performance hereunder.

 

21

 

ARTICLE 5
- Price and payment 

 

Eutelsat shall pay to RR Sat, for the service described in article 1 of
this section III, a monthly fee of ****(1) Euro per month per Mbps used by RR
Sat on transponder 125 HB6 and transponder 72 HB3 (up to, respectively ****(1)
an ****(1) Mbps)

 

Invoice shall be issued by RR Sat at the end of each month, and shall be
payable within ****(1) of the date of the relevant invoice and shall
specifically state <<monthly fee for utilization and maintenance of
migration equipment according to the contract dated 31st October
2005>>.

 

Unless otherwise instructed by RR Sat in writing, payments shall be made
by wire transfer (all related costs being assumed by the payer) to the
following account (the “Designated Account”):

 

****(1)

 

Payments are deemed to have been made on the day when the relevant sum
is credited to the Designated Account. 
In the event that full payment has not been made by the Payment Due Date
interest shall be charged on any unpaid amount as from said date.  This interest shall be calculated at a rate of
****(1) per annum and charged on a daily basis.

 

ARTICLE 6 - Option to removal of the operations

 

RRSat agree that Eutelsat has the option, at its sole discretion, to
move the operation of the transponder to Stellar or to Eutelsat in France and
to provide RRSat with a contribution link on the W5 satellite (or any other
satellite) free of charge.  The operation
of the digital platform on transponder 125 will return to be operated from RR
Sat as soon as RR Sat leases ****(1) transponder and not later than 1st
October 2006.

 

ARTICLE 7
- Service level - Liability

 

RR Sat guarantees an availability of the Service of 99.9% per year,
except if otherwise requested by specific end-customers and notified to RR Sat
in writing, provided that an interruption of the satellite capacity not
resulting from an act or omission of RR Sat shall not be taken into account in
respect of the foregoing.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

22

 

When an interruption of the Service occurs or is likely to occur, RR Sat
will immediately inform Eutelsat in writing.  In the event that an interruption or a
discontinuous reception of the signal/service appears, RR Sat shall use all
available means to find a proper solution to cure such interruption and
discontinuous reception, implementing all measures of a first class
professional in the relevant industry and use its best efforts to mitigate any
damages which may result for Eutelsat.

 

Any interruption of the Service that is not caused by an interruption of
the satellite capacity (save if resulting from an act or omission of RR Sat),
shall give rise to a credit equal to the pro rata cost thereof and applied to
the next available invoice hereunder.  In
any event, any of said interruptions of the Service that continues for a period
of 24 hours or more and is not cured by adequate technical means within one
hour shall give rise to the right to terminate the Service immediately by fax.  Said termination shall be without prejudice to
legal redress.

 

Each party may only be held liable for damages directly resulting from
its breach of an obligation hereunder and arising out of an act that it has
committed.

 

Said liability of either party is expressly limited per annum to a sum
equal to the last six months of charges paid hereunder, save in the event of
gross negligence, fraud, or intentional misconduct.  Each party shall be liable to the other party,
and shall indemnify and hold harmless the other party and/or any Affiliate of
the other party, only from direct loss, damage and expenses (including outside
attorney’s fees) suffered by the other party.

 

Each party shall not be liable for, and the shall hold the other party
harmless from, any indirect, consequential damages and / or loss of data
suffered by the other party or a third party, including but not limited to any
user of the Services.

 

Indemnification under this agreement is subject to the following (a)
party notifying the other promptly in writing of the Claim or threat thereof
(b) the other party is given full and exclusive authority for the conduct of
the defence and settlement of the Claim and any subsequent appeal; and (c) the
notifying party provides the other party all information and assistance
reasonably requested by it in connection with the conduct of the defence and
settlement of the Claim and any subsequent appeal.

 

23

 

IN WITNESS WHEREOF the undersigned, duly authorised, have signed this
Agreement in two (2) originals of which this is one.

 

 

	
  Eutelsat S.A.

  	
   

  	
  RR Satellite Communications LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (-)

  	
   

  	
  (-)

  
	
  By: Giuliano Berretta

  	
   

  	
  By: David Rivel - CEO

  
	
  Chairman of the Management Board

  	
   

  	
  Date: 31/10/05

  
	
  Date:

  	
   

  	
   

  

 

24

 

Annex A

 

Technical and Operating Terms
and Conditions 

****(1) Transponder Lease for Operation of a Digital Platform Service

 

1.                                      INTRODUCTION

 

The
purpose of this Annex is to define the technical characteristics of the
satellite transponder that will be used to provide the Allotted Capacity, and
the service and operating conditions that need to be observed for the operation
of the Digital Platform Service.

 

The
Allotted Capacity will be provided by means of one transponder in a satellite
of the Eutelsat S.A. Space Segment, with major technical characteristics as
defined in Table 1 of this Annex. 
Other technical parameters, such as amplitude/group delay frequency
response, AM/PM transfer, etc. as may be necessary for a detailed system
definition, can be obtained from Eutelsat S.A. when needed and upon request.

 

2.                                      ****(1)
TRANSPONDER LEASE CAPACITY UTILISATION

 

The
Allotted Capacity shall exclusively be used for the transmission of a single
digital carrier complying with DVB-S standard EN 300 421, with major
parameters as defined in Table 2 of this Annex.

 

3.                                      TRANSMISSIONS
PLANS

 

The
utilization of the Allotted Capacity shall confirm to the Transmission Plan
approved by Eutelsat S.A.  This is to
ensure that the levels of interference that could be caused by the proposed
transmissions and/or transmit earth stations, to services carried via other
transponders of the same satellite and adjacent Eutelsat S.A. satellites or via
other satellite networks are within acceptable limits.

 

Before
the Allotted Capacity is actually utilized for transmissions, the Allottee
shall, in order to obtain approval of Eutelsat S.A., provide Eutelsat S.A. well
in advance with all relevant technical and operating parameters of the proposed
transmissions, including the earth stations that will transmit into the
Allotted Capacity.

 

Eutelsat
S.A. will then issue an approved Transmission Plan which will be provided to
the Allottee.  In issuing this approved
Transmission Plan Eutelsat S.A. reserves the right to make any modifications to
the technical and operational parameters proposed by the Allottee which may be
necessary to meet the above requirements.

 

Any
further change of the utilisation of the Allotted Capacity requested by the
Allottee shall in advance be approved by Eutelsat S.A. which will issue and
provide the allottee a new approved Transmission Plan.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

1

 

Furthermore,
in cases of a transmission of an entertainment DVB Multiplex for direct-to-home
receptions, Eutelsat S.A. will define in the approved Transmission Plan, the
Identification Descriptors for each DVB service and the Allottee will strictly
ensure that they are implemented in order to avoid potential tuning conflicts
for receivers and to additionally harmonize the numbering scheme for all the
entertainment DVB Multiplexes for direct-to-home reception.

 

4.                                      TECHNICAL
AND OPERATIONAL REQUIREMENTS FOR EARTH STATIONS ACCESSING THE ALLOTTED CAPACITY

 

Any
earth station accessing the Allotted Capacity shall confirm to the technical
and operational requirements specified in the Eutelsat Earth Station Standard L
(EESS 400, as amended or substituted from time to time), for the carrier
parameters as defined in Table 2 of this Annex.

 

Furthermore,
in cases where an earth station is operating with a low elevation angle (in
general close to 10o or less) tropospheric scintillation can occur during clear
weather conditions as well as during atmosphere perturbations (rain, snow, etc)
causing unacceptable interference to other services.  If such interference occurs the earth station
operating with a low elevation angle must immediately reduce its transmitted
power (EIRP) or immediately cease transmissions as directed by the Eutelsat
CSC.

 

These
requirements are necessary for ensuring an adequate level of protection to
other services carried via the Eutelsat S.A. Space Segment as well as to
services carried via other satellite networks.

 

5.                                      APPROVAL
OF EARTH STATIONS ACCESSING THE ALLOTTED CAPACITY

 

Any
earth station accessing the Allotted Capacity shall be approved by Eutelsat
S.A. prior to any access in accordance with the relevant procedures as set
forth in Volume 1 of the Eutelsat System Operations Guide (ESOG).

 

The
Allottee undertakes to operate the earth station in accordance with the
Eutelsat S.A. Transmission Plan and in compliance with the registered
performance characteristics of any earth station authorized to access the
Allotted Capacity as approved by Eutelsat S.A.

 

The
Allottee accepts responsibility for compliance with any national procedures
required by the relevant authority(ies) for the right to access the Allotted
Capacity, by any earth station having obtained the approval mentioned above and
operating in accordance with the approved Transmission Plan, from any territory
from where the transmission takes place and discharges Eutelsat S.A.
accordingly for all and any liability of whatever nature (including all and any
direct or indirect financial consequence) which may arise on this respect.

 

6.                                      OPERATIONAL
MANAGEMENT AND CONTROL

 

The
operational management and control of the Allotted Capacity shall be in
accordance with the procedures defined in Volume I of the Eutelsat System
Operations Guide (ESOG).

 

If,
in order to ensure the compliance with the provisions of this Annex, decryption
equipment that is not readily and openly available is required by Eutelsat
S.A., the Allottee shall give to Eutelsat S.A. all reasonable assistance in
procuring such equipment on terms and conditions to be agreed between them.

 

2

 

7.                                      IN-ORBIT
PERFORMANCE MONITORING

 

For
the purpose of verification of the Allotted Capacity, the Allottee shall permit
Eutelsat S.A. to perform measurements which are necessary to verify the major
technical characteristics of the Allotted Capacity, as shown in Table 1
contained in this Annex.

 

These
measurements shall only be performed after consultation with the Allottee and
in such a way as to avoid as far as possible interruption of the Permitted
Services.

 

8.                                      SATELLITE
CONTROL etc.

 

For
the purpose of monitoring, measuring and controlling the dedicated satellite,
but without adversely affecting the Allottee’s transmissions, the Allottee
shall permit the insertion by Eutelsat S.A. of signals into the Allotted
Capacity.

 

3

 

Table 1

 

The following describes the
principal technical characteristics of the Allotted Capacity, as defined in the
Allotment Agreement:

 

(i)            Type
of Allotment

 

	
  Satellite

  	
   

  	
  : Hot BirdTM 6

  
	
   

  	
   

  	
   

  
	
  Orbital position

  	
   

  	
  : 13° East

  
	
   

  	
   

  	
   

  
	
  Degree of protection

  	
   

  	
  : ****(1)

  

 

(ii)           Satellite
Lifetime and Orbital Stability

 

Hot
BirdTM 6 was launched in August 2002 with a planned minimum operational lifetime
of 12 years.

 

The
Hot BirdTM 6 satellite providing the Allotted Capacity shall, throughout its
lifetime defined above, be maintained by Eutelsat S.A. within + 0.1
degree of its nominal operational longitude position and shall be kept such
that the maximum angle between the equatorial plane and the orbital plane shall
not exceed + 0.1 degree.

 

(iii)         Technical
Parameters of the Assigned Capacity

 

	
  Allocated bandwidth

  	
   

  	
  : ****(1) MHz

  
	
   

  	
   

  	
   

  
	
  Figure of Merit (G/T) of
  the receive coverage area at defined locations

  	
   

  	
  : (See Note 1)

  
	
   

  	
   

  	
   

  
	
  Maximum IPFD required for
  saturation, with a single carrier, at the satellite input

  	
   

  	
  : ****(1) dBW/m2
  over the ****(1) dB/K contour

    (see Notes 1 and 3)

  
	
   

  	
   

  	
   

  
	
  Transponder Number

  	
   

  	
  : 125 (see Figure 1)

  
	
   

  	
   

  	
   

  
	
  Transponder Up-Link Center
  Frequency

  	
   

  	
  : ****(1) MHz (see Figure
  1)

  
	
   

  	
   

  	
   

  
	
  Transponder Down-Link
  Center Frequency

  	
   

  	
  : ****(1) MHz (see Figure
  1)

  
	
   

  	
   

  	
   

  
	
  Down-Link Polarization

  	
   

  	
  : X (see Figure 1)

  
	
   

  	
   

  	
   

  
	
  EIRP of the Transmit
  coverage area at transponder saturation and at defined locations

  	
   

  	
  : (See Note 2)

  

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

4

 

Note 1:                    Satellite Receive Coverage

 

Table
3 gives the minimum Figure of Merit (G/T) provided by the satellite at certain
defined locations within the satellite receive coverage area.  Where,

 

G
is the satellite receive antenna gain.

T is the satellite receive system noise temperature.

 

Other
locations, and their minimum G/T, may be defined upon request of the Allottee
and upon agreement of Eutelsat S.A.

 

Figure
2 illustrates the expected satellite receive coverage area.  This illustrated coverage is not contractual.

 

Note 2:                    Satellite Transmit Coverage

 

Table
4 gives the minimum EIRP at transponder saturation (with a single carrier at
transponder center frequency) at certain defined locations within the satellite
transmit coverage area.  Other locations,
and their minimum EIRP, may be defined upon request of the Allottee and upon
agreement of Eutelsat S.A.

 

Figure
3 illustrates the expected satellite transmit coverage area.  This illustrated coverage is not contractual.

 

Note 3:                    Provided operationally feasible, Eutelsat
S.A. and the Allottee may mutually agree to operate the transponder with
different gain settings.

 

5

 

Table 2

 

The following describes the
principal technical characteristics of the DVB-MPEG2 Digital Carrier to be
transmitted over the Allotted Capacity.

 

	
  Applicable Standard

  	
  :

  	
  DVB-S (ETSI EN 300 421)

  
	
   

  	
   

  	
   

  
	
  Symbol rate

  	
  :

  	
  ****(1) Mband

  
	
   

  	
   

  	
   

  
	
  FEC rate

  	
  :

  	
  ****(1)

  
	
   

  	
   

  	
   

  
	
  Modulation

  	
  :

  	
  QPSK

  
	
   

  	
   

  	
   

  
	
  IPFD received at the
  satellite

  	
  :

  	
  ****(1) dBW/m2,
  where G/T is the 

  satellite Figure of Merit in the direction

  of the uplink station

  
	
   

  	
   

  	
   

  
	
  Network ID

  	
  :

  	
  ****(1) (decimal)

  
	
   

  	
   

  	
   

  
	
  Transport Stream ID

  	
  :

  	
  ****(1) (decimal)

  
	
   

  	
   

  	
   

  
	
  Service ID range

  	
  :

  	
  ****(1) (decimal)

  

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

6

 

Table 2

 

Hot BirdTM
6 at 13° East

 

Receive Coverage

List of Locations and their G/T Values

 

	
  Location

  	
   

  	
  G/T
  (dB/K)

  
	
  Tel Aviv, Israel

  	
  32°04’N 34°46’E

  	
   

  	
  +2.0

  
				

 

7

 

Table 3

 

Hot BirdTM6 at 13° East

 

Transmit Coverage

List of Locations and their EIRP Values at Transponder Saturation

 

	
  Location

  	
   

  	
  EIRP
  (dBW)

  	
   

  
	
  Amsterdam, The Netherlands

  	
   

  	
  52°22’N 04°54’E

  	
   

  	
  52

  	
   

  
	
  Bastia, France

  	
   

  	
  42°42’N 09°27’E

  	
   

  	
  52

  	
   

  
	
  Lille, France

  	
   

  	
  50°38’N 03°04’E

  	
   

  	
  52

  	
   

  
	
  London, United Kingdom

  	
   

  	
  51°30’N 00°10’W

  	
   

  	
  52

  	
   

  
	
  Marseille, France

  	
   

  	
  43°18’N 05°24’E

  	
   

  	
  52

  	
   

  
	
  Napoli, Italy

  	
   

  	
  40°50’N 14°15’E

  	
   

  	
  52

  	
   

  
	
  Palermo, Italy

  	
   

  	
  38°07’N 13°22’E

  	
   

  	
  52

  	
   

  
	
  Roma, Italy

  	
   

  	
  41°54’N 12°29’E

  	
   

  	
  52

  	
   

  
	
  San Sebastian, Spain

  	
   

  	
  43°19’N 01°59’W

  	
   

  	
  52

  	
   

  
	
  Venezia, Italy

  	
   

  	
  45°27’N 12°21’E

  	
   

  	
  52

  	
   

  
	
  Brest, France

  	
   

  	
  48°24’N 04°29’W

  	
   

  	
  51

  	
   

  
	
  Cardiff, United Kingdom

  	
   

  	
  51°30’N 03°13’W

  	
   

  	
  51

  	
   

  
	
  Hamburg, Germany

  	
   

  	
  53°33’N 10°00’E

  	
   

  	
  51

  	
   

  
	
  Madrid, Spain

  	
   

  	
  40°24’N 03°41’W

  	
   

  	
  51

  	
   

  
	
  Edinburgh, United Kingdom

  	
   

  	
  55°57’N 03°13’W

  	
   

  	
  50

  	
   

  
	
  Gdansk, Poland

  	
   

  	
  54°23’N 18°40’E

  	
   

  	
  50

  	
   

  
	
  Riga, Latvia

  	
   

  	
  56°57’N 24°06’E

  	
   

  	
  50

  	
   

  
	
  Warszawa, Poland

  	
   

  	
  52°15’N 21°00’E

  	
   

  	
  50

  	
   

  
	
  Athínai, Greece

  	
   

  	
  37°59’N 23°44’E

  	
   

  	
  49

  	
   

  
	
  Chrisinau, Moldova

  	
   

  	
  46°59’N 28°52’E

  	
   

  	
  49

  	
   

  
	
  Istanbul, Turkey

  	
   

  	
  41°01’N 28°58’E

  	
   

  	
  49

  	
   

  
	
  Minsk, Belarus

  	
   

  	
  53°54’N 27°34’E

  	
   

  	
  49

  	
   

  
	
  Porto, Portugal

  	
   

  	
  41°09’N 08°37’W

  	
   

  	
  49

  	
   

  
	
  Ródhos, Greece

  	
   

  	
  36°26’N 28°13’E

  	
   

  	
  49

  	
   

  
	
  Sevilla, Spain

  	
   

  	
  37°23’N 05°59’W

  	
   

  	
  49

  	
   

  
	
  Sevastopol, Ukraine

  	
   

  	
  44°36’N 33°32’E

  	
   

  	
  47

  	
   

  

 

8

 

 

9

 

 

10

 

 

11

 

Annex 1

Technical Parameters and Service Requirements

 

Digital Platform Services to be rendered by R.R. Satellite
Communications

 

I.  DESCRIPTION OF THE
TELECOMMUNICATIONS SERVICES

 

The telecommunications
services to be rendered by R.R. Satellite Communications (RRSat) hereunder
(collectively, the “Service”) consist of the following elements:

 

•              Telecommunications
Uplink Services

 

Simultaneous delivery via
satellite of programming for Direct to Home transmission.  This includes:

 

•                                          Receiving
the Programs from their original orbital locations,

•                                          Re-multiplexing
the Programming, not including videotext,

•                                          Multiplexing
into one digital Transport Stream

•                                          Uplinking
the signals

•                                          Monitoring
and Control of the operations, including the quality of the channels

 

•              Reporting

 

Commencing in the month
following the first month after the implementation of the Service RRSat shall
provide to Eutelsat a report at the latest on every 5th working day of each
month concerning the operation of the Service and specifically detailing the
cause and remedial actions (if applicable) in respect of any anomalies failures
or interruptions occurring during the previous month.

 

II.  IMPLEMENTATION OF THE SERVICE

 

RRSat expressly acknowledges
and agrees that the Service shall commence upon written notification from
Eutelsat of the conclusion of an agreement between Eutelsat and its
end-customer.  The specific requirements
of the Service, including service start date, shall be stipulated by Eutelsat
in said notification.

 

III.  TECHNICAL, OPERATIONAL AND SERVICE
REQUIREMENTS

 

•              INTRODUCTION

 

This following provides the
minimum technical, operational and service requirements for rendering the
telecommunication service.  The purpose
of this service is to gather various analogue and digital contributions into a
DVB/MPEG2 programming for Direct to Home transmission by means of a digital TV
platform and to transmit the programming via Transponder 125 (the “Transponder”)
of the Hot Bird 6 satellite located at 13°E orbital position.

 

1

 

•              SCOPE
AND GENERAL REQUIREMENT OF THE SERVICE

 

RRSat shall:

 

•                                          be
capable of providing facilities and services to receive a wide range of
television, radio and multimedia signals from satellite or terrestrial networks
and to convert them, when necessary, into DVB/MPEG-2 ASI transport streams;

 

•                                          provide facilities to multiplex transport
streams into a digital DVB/MPEG-2 transport stream and to transmit this stream
to the Transponder.  The transmitted
transport stream shall be
compliant with the numeration scheme provided in the approved transmission plan
for the operation of the Transponder.

 

•                                          provide maintenance and trouble-shooting
service in order to maintain the specified service quality and availability.

 

•                                          provide service monitoring to monitor the
quality of the transmitted signals.

 

The availability of each
telecommunication service shall be better 99.95% in any twelve month period
excluding programmed maintenance interruptions.

 

Interruptions that lasts less than 15
minutes within 24 hours will not be considered in calculation of the annual
availability.

 

IV DESCRIPTION OF THE TELECOMMUNICATIONS SYSTEMS

 

The telecommunications
services to be rendered by RRSat consist of the following elements:

 

•              Satellite
programs reception

 

Standard receptions of
satellite feeds (i.e. standard contributions to digital platforms) are
performed in Ku band (10.700-12.750 GHz, linear polarisation) using a 1.8 meter
offset antenna equipped with a PLL LNB. 
Larger receive antennas in Ku-band (2.4 m, 3.8 m), as well as C-band
receive antennas (2.4 m. 3.8 m) must also be made available on request.  The LNB output supply a suitable L-band Inter
Facility Link (IFL) running between the antenna and the receiving subsystem
connection via a DVB-S IRD equipped with common interface, analogue audio and
video outputs and ASI transports stream output. 
The received BER should be at least 1x10-4.  There must be a redundant QPSK demodulation and
MPEG2 decoding.  Higher demodulation
schemes, like 8-PSK and 16 QAM, must be implemented on request.

 

•              Encoding

 

If requested by Eutelsat,
RRSat will provide MPEG2 encoding of television signals.  The encoding services will be performed in ****(1)
standard within the encoding rate range ****(1) Mbit/s to ****(1) Mbit/s.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

2

 

The audio processing will
handle up to two stereo audios and to encode them in MPEG1 Layer II
format.  The encoding radio rate range is
comprised between ****(1) and ****(1) Kbit/s mode depending.

 

The encoder-input signal
will be full resolution standard (D1) digital television with embedded audio delivered
as serial digital with electrical interface (SDI).  If required, analogue to digital conversion
of video and/or audio signals and embedding processing could be provided.

 

•              Multiplexing

 

All remux services are
provided in 1:1 redundant configuration. 
Each incoming transport stream supply a DVB-ASI splitter.  The splitter outputs feed the inputs of
on-line and backup multiplexers.

 

Two remux policy are
available:  Active and Component.

 

The Active remux is
performed at service level.  The incoming
service including all components is remapped into a service ID generated by the
multiplexer with the same components. 
The incoming PIDs are remapped within a range specified for that
service.  Changes in the components
number or PIDs are automatically managed by the multiplexer.

 

The Component remux is
performed at components level. 
Components of the incoming TS are specified on PID base.  The multiplexer generate an output service
where new PIDs are specified and the incoming PIDs are remapped to the new
PIDs.

 

The component list and
relevant PIDs are manually managed; unwanted components can be filtered.

 

PSI/SI (Program Specific
Information/Service Information) tables relevant to the satellite transmitted
services and the components/services hierarchical structure will be managed by
the multiplexer Monitor & Configuration system and included in the
multiplexed signal.

 

The incoming television
channel (the contribution from Customers) shall be fully MPEG2-DVB compliant
and shall not cause harmful interference with the other multiplex services.

 

The generated and
transmitted tables structure will be DVB complaint through the use of defined,
mandatory and optional tables foreseen by DVB (NIT, SDT, EIT, TDT) and by MPEG2
(PAT, CAT, PMT) standards.

 

Descriptors and private data
of the incoming transport streams will not be used in the remultiplexing
process.

 

•              Modulation
system

 

A redundant DVB modulation
system suited for Direct to Home application will provide Reed Solomon error
correction, interleaving, Forward Error Correction and QPSK modulation to a 70
MHz IF carrier according Operation to ETSI standard EN 300 421.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

3

 

QPSK modulation and FEC ****(1)
will be used at the beginning of the service contract.  At the end of the ramp-up period the symbol
rate should be ****(1) Msymbol/s.

 

The modulators will provide
easy to use front panel control and alarms and remote control method.

 

The two modulators IF output
will supply a redundancy switch.  The
switch output will be connected through a suitable IFL to the uplink system.

 

•              Uplinking
to the satellite

 

The transmit system allows
transmission of one digital modulated carrier to Transponder 124 of the Hot
BirdTM 6 satellite.

 

The transmit earth station
shall be compliant with all the technical and operational requirements
specified in the Eutelsat Earth Station Standard.

 

The EIRP level capability is
suitable to saturate the relevant satellite transponder.

 

The station provides also
EIRP capability adjustment below the maximum value specified above.

 

The transmitting system
comprises the antenna dish, antenna control unit, the HPA sub-system and the
upconverter sub-system.  Both the
upconverter and the HPA subsystem are in N:1 redundant configuration.

 

The transmit system
comprises a Monitor & Control subsystem to monitor and control the status
of the relevant equipment.

 

•              Monitoring
& Control

 

Monitoring and Control of
the Telecommunication Service is performed at various stages of the
transmission chain.

 

A Client application of the
Control & Monitor systems of the Multiplexing, Modulation, Up conversion, HPA
and Antenna system, providing Graphic User interface is available in the Video
Control room of Fucino in order to monitor the apparatus status, the redundancy
switches and to force manual switches overriding automatic mode if required.

 

A small dish TVRO supplying
a consumer IRD will monitor the downlink signal in the Video Room simulating
home reception.

 

A professional grade IRD
will be looped to modulation system in order to provide local monitoring of the
transmitted stream.

 

(1) Represents material that has been redacted
and submitted separately to the Securities and Exchange Commission pursuant to
a request for confidential treatment.

 

4

 

Contribution television
signals will be locally decoded to supply presence monitors in order to verify
their status.  The facility comprises
also a Transport Stream recorder with real time and deferred time analysis
capability to verify consistence and compliance of the contribution transport
streams and of the transmitted stream.

 

V.  OPERATIONS

 

•              Organization

 

RRSat, through the Video
Control Room supervises the operations of the Telecommunication Services.

 

The Video Control Room is
organized as follow:

 

•                                          Operation-Responsible
(OR) generally working with the work-schedule 8.00 / 17.00 from Monday to
Friday.

•                                          Operations
Staff (OS) organized on shifts with a 24 hour/days basis.

 

Both OR and OS are qualified
and experienced on systems alike and have sufficient competence in English.

 

OR acts as
follows:

 

•                                          Liaises with the customer in case of
technical-operational matters;

•                                          Is responsible of the statistical survey
concerning the evolution of the service provided.

 

OS acts as
follows:

 

•                                          Monitoring the quality of the services.

•                                          Co-ordinate any digital Platform activity.

 

The OS personnel keeps up to
date an electronic Logbook with the controlled activities and in particular
keeps recorded:

 

•                                          Anomalies occurred during the operational
phase.

•                                          All the actions taken to guarantee the
service provided.

•                                          Communications and messages related to the working
relationships happened with the customer.

•                                          Outage of the service.

 

For every single anomaly, a
Trouble Ticket will be archived in the company database which allows MCR to
keep recorded the historical situation of the anomaly of the service.

 

In case of unforeseen and
unexpected particular operational requirements related to the safeguard of the
equipment of the satellite or, for interference on its correct operation, the
MCR shall be entitled:

 

•                                          either to adjust the output power, or

 

5

 

•                                          remove the Hot Bird carrier.

 

•              Contact points

 

For the co-ordination of the
network activities will be provided some contact points as follows:

 

Eutelsat (for technical matters)

Eutelsat Control Centre:  +33 1 53
98 34 43 or +33 1 45 57 06 66

(24 hours per day - 7 days per week)

or

Mr. Nigel DEACON

tel + 33 1 53 98 3714

 

(for commercial matter)

Serge DRAY

tel + 33 1 53 98 39 20

fax +33 1 53 98 46 64

 

RRSat (for technical matters):

 

Attn: 

Tel. +

e-mail:

 

(24 hours per day - 7 days
per week)

Control centre

 

Attn: 

Tel. +

e-mail:

 

6

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