Document:

Exhibit 10.2

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED
AND RESTATED EMPLOYMENT AGREEMENT, dated this 10th day of October,
2005 (the “Amended Agreement”), among New Skies Satellites B.V., an
entity established under Dutch law (the “Company”), and Mr. Andrew
M. Browne (the “Employee”).

 

WHEREAS the
Company and the Employee have entered into that certain Employment Agreement
dated May 7, 1999, as amended and restated as of November 2004 (the “2004
Agreement”); and

 

WHEREAS, the
Company and the Employee desire to amend the 2004 Agreement in certain respects
effective on and after January 1, 2005 (the “Effective Date”) and
to restate the 2004 Agreement to read in its entirety as follows:

 

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                       Employment,
Duties, Authority and Agreements.

 

(a)  
The Company hereby agrees to employ the Employee as Chief Financial Officer (“CFO”)
and the Employee hereby accepts such position and agrees to serve the Company
in such capacity during the employment period fixed by Section 3 hereof
(the “Employment Period”).  In
addition, if requested, the Employee shall serve as the Vice President of New
Skies Satellites Holdings Ltd., an entity established under Bermuda law (the “Parent”).  The Employee shall report to the Chief
Executive Officer (the “CEO”) in respect of his duties to the Company
and the President of the Parent in respect of his duties to the Parent.  The Employee will have such duties,
responsibilities and authority as are customary for a CFO, including, without
limitation, the responsibility for the operation of the finance department of
the Company involving periodic financial reporting, preparation of annual and
long range budgets and financial plans, implementation of financial controls
and systems, establishment and maintenance of a general ledger system and books
of account for payroll, accounts receivable and payable, cash management and
tax reporting.  Additionally, the
Employee will advise and represent the Company with respect to all financing
activities including placement of bank or other debt facilities, any public
equity placement and the sale or acquisition of Company assets.  Finally, the Employee will be responsible
initially for management of the Human Resources and Management Information Systems
departments.

 

(b)  
During the Employment Period, excluding any periods of vacation and sick leave
to which the Employee is entitled, the Employee shall devote his full working
time, energy and attention to the performance of his duties and responsibilities
hereunder and shall faithfully and diligently endeavor to promote the business
and best interests of the Company and any entity that is a direct or indirect
wholly-owned subsidiary of Parent (such subsidiaries hereinafter referred to as
the “Affiliates”).

 

(c)  
During the Employment Period, the Employee may not, without the prior written
consent of the Company, operate, participate in the management, operations or
control of, or act as an employee, officer, consultant, agent or representative
of, any type of business or service (other than as an employee of the Company),
provided that it shall not be a violation of the

 

 

foregoing for the Employee to (i) act or serve as a director,
trustee or committee member of any civic or charitable organization, and (ii) manage
his personal, financial and legal affairs, so long as such activities
(described in clauses (i), and (ii)) do not interfere with the performance of
his duties and responsibilities to the Company as provided hereunder.  Except as described in this Section 1(c),
Employee shall not provide any services to any other entity during the term of
this Amended Agreement without the written consent of the Company.

 

2.                                       Compensation.

 

(a)  
As compensation for the agreements made by the Employee herein and the
performance by the Employee of his obligations hereunder, during the Employment
Period the Company shall pay the Employee, not less than once a month pursuant
to the Company’s normal and customary payroll procedures, a base salary at the
rate of U.S.$ 460,020 per annum (the “Base Salary”) payable in U.S.
dollars or in Dutch Guilders, at the Employee’s election, at an exchange rate
to be fixed annually by mutual agreement between Employee and the Company.  The Base Salary shall be reviewed annually and
be increased further in the absolute discretion of the Company.  Any such increased Base Salary shall then
become the Base Salary for all purposes hereunder.

 

(b)  
As compensation for the agreements made by the Employee herein and the
performance by the Employee of his obligations hereunder, beginning in calendar
year 1999 and for the remainder of the Employment Period (the “Bonus Period”),
the Employee shall have an opportunity to earn cash bonuses in accordance with
the following terms. For each calendar year following the Effective Date during
the Bonus Period, Employee shall be eligible to earn a cash bonus of up to 50%
of his Base Salary for that year, subject to the performance standards to be
approved by the Company and, except as otherwise provided in Section 5,
subject to the Employee’s employment with the Company on the last day of the
calendar year (the “Annual Bonus”). 
The Annual Bonus earned by the Employee with respect to each year shall
be paid to the Employee not later than ten (10) business days following
the determination of the amount of such Annual Bonus.

 

(c)  
During the Employment Period, the Employee shall be entitled to the following
benefits and perquisites, to the extent provided by the Company to senior
executives of the Company generally:

 

(i)            medical
(including for the Employee’s spouse and children under the age of 21), and
disability coverage equivalent to base salary subject to customary and
reasonable limits, co-payments, deductibles, employee contributions and
exclusions;

 

(ii)           at
Employee’s election, either a car provided by the Company suitable to Employee’s
position or the equivalent cost of such a car to the Company in cash; and

 

(iii)          any
other benefits and perquisites generally provided to other senior executives of
the Company, from time to time, provided that the Employee shall

 

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not be entitled to participate in any such plan providing for benefits
in the nature of severance pay.

 

(d)  
During the Employment Period, the Employee shall be entitled to paid vacation
of twenty five days per year.  The
ability to carry forward vacation time shall be subject to the Company’s
vacation policy applicable generally to executive officers of the Company as in
effect from time to time.  The Employee
is not entitled to holiday allowances.

 

(e)  
The Company shall promptly reimburse the Employee for all reasonable business
expenses upon the presentation of statements of such expenses in accordance
with the Company’s policies and procedures now in force or as such policies and
procedures may be modified with respect to all senior executive officers of the
Company.

 

3.                                       Employment
Period.

 

The Employment
Period commenced on 12 October 1998 and shall continue indefinitely,
provided that the Employment Period may be terminated during the Employment
Period upon the earliest to occur of the following events upon written notice
in accordance with Section 4 below (the “Termination Date”):

 

(a)  
Death.  The Employee’s employment
hereunder shall terminate upon his death.

 

(b)  
Urgent Cause.  The Company may
terminate the Employee’s employment hereunder for Urgent Cause, that is without
prior approval of a Dutch Court or government body as is authorized by Dutch
labor law.  By way of illustration, and
without limitation, for purposes of this Amended Agreement, the term “Urgent
Cause” shall mean: (i) a willful and material violation by the
Employee of either Section 1(c) or 7 of this Amended Agreement
(unless such violation is cured by the Employee within thirty (30) days of
receipt of a written notice from the board of the Company which specifically
identifies the facts and circumstances of such violation); (ii) the
willful failure by the Employee to substantially perform the duties reasonably assigned
to him within the scope of the Employee’s duties and authority as stated in Section 1(a) hereunder
(other than as a result of physical or mental illness or injury), after
delivery to the Employee of a written demand for substantial performance that
specifically identifies the manner in which the Employee has not substantially
performed the Employee’s duties and provides the Employee thirty (30) days to
begin to substantially perform, provided that the Company shall not have the
right to terminate the Employee’s employment hereunder for Urgent Cause if the
Employee begins to substantially perform within such thirty-day period; (iii) the
Employee’s willful misconduct, willful waste of corporate assets or gross
negligence which in any such event substantially and materially injures the
Company and its Affiliates; or (iv) the indictment of the Employee for a
felony or other serious crime involving moral turpitude.  In order for a termination to be considered
to be for Urgent Cause, the Notice of Termination (as defined below) must be
delivered within six (6) months of the date on which the Company first
knows of the event constituting Urgent Cause.

 

(c)  
Good Reason.  The Employee may
terminate his employment hereunder for Good Reason.  For purposes of this Amended Agreement, the
term “Good Reason” shall mean: (i) a reduction by the Company in
the Employee’s Base Salary; (ii) any failure by the Company to pay

 

3

 

any amounts due to the Employee within ninety (90) days of the date
such amount is due; (iii) any material diminution of the level of
responsibility or authority of the Employee. including the Employee’s reporting
duties; (iv) any adverse change in the Employee’s title or position; (v) the
failure by the Company to obtain from any successor an assumption of the
obligations of the Company as contemplated by Section 10(d) herein;
and (vi) the Company requiring the Employee to be based at any office or
location that is more than 50 kilometers from the Company’s current corporate
headquarters; provided that with respect to any such relocation the Employee
delivers a written notice of such Good Reason termination to the Company within
thirty (30) days after receiving written notice from the Company of the possibility
of such event; and provided further that the Employee delivers a written notice
to the Company within six (6) months of the occurrence of such an event
which specifically identifies the facts and circumstances claimed by Employee
to constitute Good Reason and the Company has failed to cure such facts and
circumstances within thirty (30) days after receipt of such notice.

 

(d)  
Without Good Reason.  The Employee
may terminate his employment hereunder without Good Reason.

 

4.                                       Termination
Procedure.

 

(a)  
Notice of Termination. 
Termination of the Employee’s employment by the Company for Urgent Cause
or by the Employee during the Employment Period (other than termination
pursuant to Section 3(a)) shall be communicated by written “Notice of
Termination” to the other party hereto in accordance with Section 10(a).  For purposes of this Amended Agreement, a
Notice of Termination shall mean a notice which shall indicate the specific
termination provision in this Amended Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Employee’s employment under the provision so indicated and
shall attach any prior notices required under Section 3.

 

(b)  
Date of Termination.  “Date of
Termination” shall mean (i) if the Employee’s employment is terminated by
his death, the date of his death, (ii) if the Employee’s employment is
terminated for any other reason, one month after the date on which a Notice of
Termination is given or any later date (agreed upon by the parties, after the
giving of such notice).

 

5.                                       Termination
Payments.

 

(a)  
Without Urgent Cause or for Good Reason. 
In the event of a termination of the Employee’s employment (a) by
the Company without Urgent Cause or (b) by the Employee for Good Reason,
the Company shall pay to (or in the case of business expenses pursuant to
clause (i), reimburse) the Employee, or his estate in the event of his death,
within thirty (30) days following the Date of Termination, (i) the Employee’s
Base Salary through the Date of Termination and outstanding business expenses
pursuant to Section 2(e) hereof (to the extent not theretofore paid)
and any other amounts due to the Employee but which have not been paid (the “Accrued
Obligations”), (ii) any earned but unpaid Annual Bonus in respect of a
calendar year during the Bonus Period ending prior to or coincident with the
Date of Termination, (iii) an Annual Bonus equal to the prior year’s
Annual Bonus pro-rated for the year in which the Date of Termination occurs
based on the number of days occurring in such year prior to the Date of
Termination, (iv) a

 

4

 

lump-sum payment equal to two times the sum of (x) the Employee’s Base
Salary (as in effect on the Date of Termination) and (y) the greater of the Annual
Bonuses for each of the two most recently completed calendar years preceding
the calendar year in which the Date of Termination occurs, (v) reimbursement
for outplacement services in an amount up to $25,000 upon the Employee’s
submission of receipts for such services, and (vi) continuation of medical
and dental benefits under the Company’s employee benefit plans providing for
such benefits, for two years following the Date of Termination, provided the
Company’s obligation to provide continued welfare benefits under this clause (vi) shall
be reduced to the extent that equivalent coverages and benefits (determined on
a coverage-by-coverage and benefit-by-benefit basis) are provided under the
plans, programs or arrangements of a subsequent employer; and provided further
that in the event that the Employee is precluded from continuing full
participation, in the Company’s welfare benefit plans that provide for the
benefits described and contemplated in this clause (vi) the Employee shall
be provided with the after-tax economic equivalent of any benefit or coverage
foregone. For this purpose, the economic equivalent of any benefit or coverage
foregone shall be deemed to be the total cost to the Employee of obtaining such
benefit or coverage himself on an individual basis.  Payment of such after-tax economic equivalent
shall be made quarterly.

 

The payments
provided in this Section 5(a) are (i) not subject to offset or mitigation and (ii) conditioned upon and
subject to the Employee executing a valid general release and waiver, waiving
all claims the Employee may have against the Company, its Affiliates, directors, officers and employees.  The Company shall have no additional
obligations under this Amended Agreement, except for (i) the indemnification obligations set forth in
Section 6 herein and (ii) any benefits (other than benefits in the nature of severance pay) to which the
Employee is entitled under the terms of any employee benefit plan in which he
is eligible to participate.

 

(b)  
Urgent Cause or without Good Reason. 
If the Employee’s employment is terminated during the Employment Period
by the Company for Urgent Cause or by the Employee without Good Reason, the
Company shall pay to the Employee, within thirty (30) days of the Date of
Termination, (i) the Accrued Obligations and (ii) any earned but
unpaid Annual Bonus in respect of a calendar year during the Bonus Period
ending prior to the Date of Termination, but only if the event constituting
Urgent Cause occurs after the end of such calendar year.  The Company shall have no additional
obligations under this Amended Agreement, except for the indemnification
obligations set forth in Section 6 herein.

 

(c)  
Death.  If the Employee’s
employment is terminated as a result of his death, the Company shall pay to the
Employee’s estate, within thirty (30) days of the Date of Termination, (i) the
Accrued Obligations, (ii) any earned but unpaid Annual Bonus in respect of
a calendar year during the Bonus Period ending prior to or coincident with the
Date of Termination, and (iii) an Annual Bonus equal to the prior year’s
Annual Bonus pro-rated for the year in which the Termination Date occurs based
on the number of days occurring in such year prior to the Termination
Date.  The Company shall have no
additional obligations under this Amended Agreement, except for the
indemnification obligations set forth in Section 6 herein.

 

6.                                       Indemnification.

 

The Company
shall indemnify, defend and hold the Employee harmless from and against any and
all liability or obligation arising from or relating to this Amended Agreement
or

 

5

 

the performance by the Employee of his
obligations hereunder, in accordance with the indemnification provisions set
forth in Article 14 of the Company’s Articles of Association, as in effect
on the date hereof, provided that this obligation to indemnify and defend shall
not extend to disputes between the Employee and the Company, if any, which
relate to the benefits or other amounts in the nature of compensation from the
Company to which the Employee believes he is entitled.

 

7.                                       Non-Solicitation;
Non-Disclosure; Workproduct: Non-Competition.

 

(a)  
During the Employment Period and for one year following the termination of
Employee’s employment with the Company for any reason the Employee agrees not
to offer employment to any employee of the Company or any of its Affiliates for
other than employment by the Company or attempt to induce any such employee to
leave the employ of the Company or any Affiliates of the Company and the
Employee further agrees not to solicit any clients or suppliers of the Company
to do business with any competing business of the Company or its Affiliates.

 

(b)  
Employee agrees that he will not appropriate for his own use, disclose,
divulge, furnish or make available to any person, unless in the normal course
of business or as authorized by the Company in writing, any confidential or
proprietary information concerning the Company and its Affiliates, including
without limitation any confidential or proprietary information concerning the
operations, plans or methods of doing business of the Company and its
Affiliates (the “Information”); provided that the term “Information”
shall not include such information which is or becomes generally available to
the public other than as a result of a disclosure by Employee in violation of
this Amended Agreement.  Notwithstanding
the foregoing, Employee may disclose Information to the extent he is compelled
to do so by lawful service of process, subpoena, court order, or as he is
otherwise compelled to do by law or the rules or regulations of any
regulatory body to which he is subject, including full and complete disclosure
in response thereto, in which event he agrees to provide the Company with a
copy of the documents seeking disclosure of such information promptly upon
receipt of such documents and prior to their disclosure of any such
information, so that the Company may, upon notice to Employee, take such action
as the Company deems appropriate in relation to such subpoena or request.

 

(c)  
Employee agrees that all right, title and interest to all works of whatever
nature generated in the course of his employment resides with the Company.  Employee agrees that he will return to the
Company, not later than the Date of Termination, all property, in whatever form
(including computer files and other electronic data), of the Company and its
Affiliates in his possession, including without limitation, all copies (in
whatever form) of all files or other information pertaining to the Company, its
officers, directors, shareholders, customers or Affiliates, and any business or
business opportunity of the Company and its Affiliates.

 

(d)  
Employee agrees not to engage in any aspect of the Satellite Business (as
hereinafter defined) during the Employment Period and for one year following
the termination of Employee’s employment with the Company for any reason, other
than a termination by the Company without Urgent Cause or a termination by the
Employee for Good Reason.  Employee shall
be deemed to be engaging in the Satellite Business if he directly or
indirectly, whether or not for compensation, renders personal services of any
kind in any capacity for any Competitor.

 

6

 

For purposes
of this Section 7(d):

 

(i)            The
“Satellite Business” shall mean the business of communication of
electronic video, data, voice or other information by transmission by satellite
for hire or any other business in which the Company is engaged from time to
time during the Employment Period.

 

(ii)           A
“Competitor” is any corporation, firm, partnership, proprietorship or
other entity which engages in the Satellite Business.

 

(e)  
The restrictions of Section 7(d) hereof shall be deemed to be
separate restrictions with respect to each geographic area, time period and
activity covered thereby.  Employee
hereby agrees that if, in any judicial proceeding, a court shall refuse to enforce
any such separate restriction, then such unenforceable restriction shall be
deemed eliminated from this Amended Agreement for the purpose of such
proceeding or any other judicial proceeding, but only to the extent necessary
to permit the remaining restrictions of Section 7(d) hereof to be
enforced.

 

(f)  
The parties hereto hereby declare that it is impossible to measure in money the
damages which will accrue to the Company by reason of a failure by Employee to
perform any of his obligations under this Section 7.  Accordingly, if the Company or any of its
Affiliates institutes any action or proceeding to enforce the provisions
hereof, to the extent permitted by applicable law, Employee hereby waives the
claim or defense that the Company or its Affiliates has an adequate remedy at
law, and Employee shall not urge in any such action or proceeding the claim or
defense that any such remedy at law exists.

 

(g)  
The restrictions in this Section 7 shall be in addition to any
restrictions imposed on Employee by statute or at common law.

 

8.                                       Tax-free
Allowance Subject to 30% Ruling.

 

(a)  
If and insofar as the Employee has received or may receive a tax-free allowance
for extra-territorial costs under Section 9 of the 1965 Payroll Tax
Implementation Decree (as further described in clause (ii) below), the
following shall apply:

 

(i)            The
originally agreed upon Wages from Current Employment shall be reduced for
employment law purposes so that 100/70 of the adjusted Wages from Current
Employment is equal to the originally agreed upon Wages from Current
Employment.  As used herein, “Wages
from Current Employment” are all income (in cash, cash equivalent, or
benefit in kind) that is subject to wage tax withholding in the Netherlands.

 

(ii)           The
Employee shall receive an allowance for extra-territorial costs from the
Company, equal to 30/70 of the adjusted Wages from Current Employment (the “Allowance”).

 

(iii)          The
Employee is aware of the fact that, in view of the applicable regulations, an
adjustment to the remuneration agreed under this Section may affect

 

7

 

ail considerations and benefits that are linked to Wages from Current
Employment, such as pension rights and social security benefits.

 

(iv)          The
intention of this Section is to automatically apply Section 9 of the
1965 Payroll Tax Implementation Decree to all elements of Wages from Current
Employment that can benefit from this
special provision.

 

(v)           The
Employee acknowledges and agrees that, as a result of the adjustments described
in clauses (i) and (ii), the Employee’s adjusted Base Salary (the “Adjusted
Base Salary”) shall equal 70/100 of the previously agreed Base Salary.  The Employee hereby consents to this
adjustment and agrees that it shall not
constitute a breach of this Amended Agreement or give rise to any rights
on the part of the Employee. Following any adjustment hereunder, all
references, in this Amended Agreement to Base Salary shall be deemed to refer
to the Employee’s Total Base Compensation, which shall equal the sum of the
Adjusted Base Salary and an allowance equal to 30/70 of the Adjusted Base
Salary.  For the avoidance of doubt, the
term “originally agreed upon Wages from Current Employment” shall refer
to the Wages from Current Employment in effect immediately prior to the
adjustments described in clauses (i) and (ii).

 

9.                                       Excise
Tax Matters. 

 

(a)           Anything in this
Amended Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the benefit
of the Employee, whether paid or payable or distributed or distributable
pursuant to the terms of this Amended Agreement or otherwise (a “Payment”),
would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999
of the United States Internal Revenue Code (the “Code”), then Employee
shall be entitled to receive an additional payment (a “Gross-Up Payment”)
in an amount equal to the lesser of (i) U.S.$1,000,000 and (ii) the
amount necessary such that after payment by Employee of all taxes (including
any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed
with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment,
Employee retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments; provided that, in the event it shall be
determined that, if in lieu of receiving the Gross-Up Payment, the Employee
would, if the amounts constituting “parachute payments” for purposes of Section 280G
of the Code which would otherwise be payable to the Employee were reduced (as
so reduced, the “Reduced Amount” ), be entitled to receive and retain,
on a net after-tax basis, an amount that is greater than the amount, on a net
after-tax basis, that the Employee would be entitled to retain upon his receipt
of the Gross-Up Payment, then Employee shall not be entitled to the Gross-Up
Payment but rather shall only be entitled to the Reduced Amount.

 

(b)           All determinations required to be made under
this Section 9, including whether and when a Gross-Up Payment is required
and the amount of such Gross-Up Payment (or whether there will be a Reduced
Amount and the amount of such Reduced Amount) and the assumptions to be
utilized in arriving at such determination, shall be made by a nationally
recognized accounting firm appointed by the Company and reasonably acceptable
to the

 

8

 

Employee (the “Accounting Firm”) which
shall provide detailed supporting calculations both to the Company and Employee
within ten business days of the receipt of notice from Employee that there has
been a Payment, or such earlier time as is requested by the Company; provided
that for purposes of determining the amount of any Gross-Up Payment, Employee
shall be deemed to pay federal income tax at the highest marginal rates
applicable to individuals in the calendar year in which any such Gross-Up
Payment is to be made and deemed to pay state and local income taxes at the highest
marginal rates applicable to individuals in the state or locality of Employee’s
residence and/or place of employment in the calendar year in which any such
Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes that can be obtained from deduction of such state and local taxes, taking
into account limitations applicable to individuals subject to federal income
tax at the highest marginal rates.  All
fees and expenses of the Accounting Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined pursuant
to this Section 9, shall be paid by the Company to Employee five days
prior to when due (or to the appropriate taxing authority on Employee’s behalf
when due).  If the Accounting Firm
determines that no Excise Tax is payable by Employee or that the Reduced Amount
will apply, it shall so indicate to Employee in writing.  Subject to the following sentence and Section 9(c) hereof,
any determination by the Accounting Firm shall be binding upon the Company and
Employee.  As a result of the uncertainty
in the application of Section 4999 of the Code, it is possible that the
amount of the Gross-Up Payment determined by the Accounting Firm to be due to
(or on behalf of) Employee was lower than the amount actually due (“Underpayment”).  In the event that the Company exhausts its
remedies pursuant to Section 9(c) and Employee thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of Employee.

 

(c)           Employee shall
notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of any Gross-Up
Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after Employee
is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be
paid.  Employee shall not pay such claim
prior to the expiration of the thirty day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies Employee prior to the
expiration of such period that it desires to contest such claim, Employee shall
(i) give the Company any information reasonably requested by the Company
relating to such claim, (ii) take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company, (iii) cooperate
with the Company in good faith in order to effectively contest such claim and (iv) permit
the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without
limitation on the foregoing provisions of this Section 9(c), the Company
shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may,

 

9

 

at its sole option, either
direct Employee to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and Employee agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, further, that if the Company directs
Employee to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to Employee, on an interest-free basis, and shall
indemnify and hold Employee harmless, on an after-tax basis, from any Excise
Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; provided, further, that if Employee is
required to extend the statute of limitations to enable the Company to contest
such claim, Employee may limit this extension solely to such contested
amount.  The Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and Employee shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

 

(d)           If, after the
receipt by Employee of an amount paid or advanced by the Company pursuant to
this Section 9, Employee becomes entitled to receive any refund with
respect to a Gross-Up Payment, Employee shall (subject to the Company’s
complying with the requirements of Section 9(c)) promptly pay to the
Company the amount of such refund received (together with any interest paid or
credited thereon after taxes applicable thereto).  If, after the receipt by Employee of an
amount advanced by the Company pursuant to Section 9(c), a determination
is made that Employee shall not be entitled to any refund with respect to such
claim and the Company does not notify Employee in writing of its intent to
contest such denial of refund prior to the expiration of thirty days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of the Gross-Up Payment required to be paid.

 

10.                                 Miscellaneous.

 

(a)  
Any notice or other communication required or permitted under this Amended
Agreement shall be effective only if it is in writing and delivered personally
or sent by registered or certified mail, postage prepaid, addressed as follows
(or if it is sent through any other method agreed upon by the parties):

 

If to the
Company:

 

New Skies
Satellites B. V.

Attention: Chief Executive Officer

P.O. Box 82197

2508 ED The Hague

The Netherlands

 

With a copy
to:

 

New Skies
Satellites B.V.

Attention:
General Counsel

P.O. Box
82197

 

10

 

2508 ED The
Hague

The Netherlands

 

If to the
Employee:

 

Mr. A. M.
Browne

Koninginnegracht 70 B

2514 AG The Hague

The Netherlands

 

or to such
other address as any party hereto may designate by notice to the others, and
shall be deemed to have been given upon receipt

 

(b)  
This Amended Agreement constitutes the entire agreement among the parties
hereto with respect to the Employee’s employment, and supersedes and is in full
substitution for any and all prior understandings or agreements with respect to
the Employee’s employment.

 

(c)  
This Amended Agreement may be amended only by an instrument in writing signed
by the parties hereto, and any provision hereof may be waived only by an
instrument in writing signed by the party or parties against whom or which
enforcement of such waiver is sought. 
The failure of any party hereto at any time to require the performance
by any other party hereto of any provision hereof shall in no way affect the
full right to require such performance at any time thereafter, nor shall the
waiver by any party hereto of a breach of any provision hereof be taken or held
to be a waiver of any succeeding breach of such provision or a waiver of the
provision itself or a waiver of any other provision of this Amended Agreement.

 

(d)  
(i)  This Amended Agreement is binding on and is for the benefit of the
parties hereto and their respective successors, heirs, executors,
administrators and other legal representatives. 
Neither this Amended Agreement nor any right or obligation under this
Amended Agreement may be assigned, transferred, pledged or encumbered by the
Company or by the Employee.

 

(ii)           The Company shall require any
successor (whether direct or indirect, by purchase, merger. consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company expressly to assume and agree to perform this Amended Agreement in the
same manner and to the same extent that the Company would have been required to
perform it if no such succession had taken place.  As used in this Amended Agreement, all references to “Company” shall mean
both the Company and any such successor that assumes and agrees to perform this Amended
Agreement by operation of law or otherwise.

 

(e)  
If any provision of this Amended Agreement or portion thereof is so broad, in
scope or duration, so as to be unenforceable, such provision or portion thereof
shall be interpreted to be only so broad as is enforceable.

 

(f)  
The Company may withhold from any amounts payable to the Employee hereunder all
taxes and other amounts that the Company may reasonably determine are required
to be withheld pursuant to any applicable law or regulation.

 

11

 

(g)  
This Amended Agreement shall be governed by and construed in accordance with
the laws of The Netherlands, without reference to its principles of conflicts
of law.

 

(h)  
Notwithstanding any provision in this Agreement to the contrary, any payment
otherwise required to be made hereunder to the Employee at any date as a result
of the termination of the Employee’s employment hereunder shall be delayed for
such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of
the Code. On the earliest date on which such payments can be made without
violating the requirements of Section 409A(a)(2)(B)(i) of the Code,
there shall be paid to Employee (or if Employee has died, to his estate), in a
single cash lump sum, an amount equal to the aggregate amount of all payments
delayed pursuant to the preceding sentence.

 

(i)  
This Amended Agreement may be executed in several counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.

 

(j)  
The headings in this Amended Agreement are inserted for convenience of
reference only and shall not he a part of or control or affect the meaning of
any provision hereof.

 

IN WITNESS
WHEREOF, the parties have executed this Amended Agreement, as of the date first written above.

 

	
   

  	
  NEW SKIES SATELLITES B. V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David Tolley

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Andrew M. Browne

  	
   

  
	
   

  	
  Andrew M. Browne

  
				

 

12Exhibit 10.3

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT is entered into this 10th day of October, 2005 (the “Amended
Agreement”) by and between New Skies Satellites B.V., an entity established
under Dutch law (the “Company”) and Mr. Scott J. Sprague (the “Employee”).

 

WHEREAS the Company and the Employee have entered into that certain
Employment Agreement on June 26, 2002 (the “2002 Agreement”), as
amended and restated as of November 2004 (the “2004 Agreement”);
and

 

WHEREAS, the Company and the Employee desire
to amend the 2004 Agreement in certain respects effective on and after January 1,
2005 (the “Effective Date”) and to restate the 2004 Agreement to read in
its entirety as follows.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS
FOLLOWS:

 

1.                                       Employment,
Duties, Authority and Agreements.

 

(a)  
The Company hereby agrees to employ the Employee as Senior Vice President
Global Sales and the Employee hereby accepts such position and agrees to serve
the Company in such capacity during the employment period fixed by Section 3
hereof (the “Employment Period”). 
The Employee shall report to the Chief Executive Officer (“CEO”),
or such other person as the Company shall designate. The Employee shall be
responsible for managing the Company’s global sales operations so as to
maximize the Company’s financial performance in terms of in-year sales,
long-term backlog, overall profitability, and such other targets as the Company
may establish. By way of example and without limitation, the Employee’s
responsibilities will include the following:

 

•                  Managing
global sales operations and ensuring that revenue forecasting is accurate and
up-to-date;

 

•                  Ensuring
that the CEO (or his designate) is frequently updated on sales operations,
plans, activities, results and forecasts;

 

•                  Coordinating
between regional Sales VPs and ensuring that cross-regional deals are
efficiently achieved and processed;

 

•                  Providing
input to the CEO (or his designate) for annual sales and revenue goals for
sales regions and developing, presenting and, upon approval by the CEO (or his
designate), implementing plans to meet these sales goals;

 

•                  Working
with regional Sales VPs and their teams on major deals;

 

•                  Representing
the views and interests of global Sales at NSS HQ;

 

•                  Preparing
long term sales plans and revenue projections;

 

•                  Handling
major customer complaints and dealing with special customer issues;

 

 

•                  Providing
input to the information system for tracking the status of global sales
operations and revenue achievement;

 

•                  Identifying
long term communications requirements of current and potential customers and
providing input to planning efforts to serve such requirements from current or
future system resources.

 

(b)  
The Employee shall devote his full working time, energy and attention to the
performance of his duties and responsibilities hereunder and shall faithfully
and diligently endeavor to promote the business and best interests of the
Company and any entity that is a direct or indirect wholly-owned subsidiary of
New Skies Satellites Holdings Ltd. (such subsidiaries hereinafter referred to
as the “Affiliates”).

 

(c)  
The Employee may not, without the Company’s prior written consent, operate,
participate in the management, operations or control of, act as an employee,
officer, consultant, agent or representative of, or provide any services to any
entity or any type of business or service, provided that it shall not be a
violation of the foregoing for the Employee to (i) act or serve as a
director, trustee or committee member of any civic or charitable organization,
and (ii) manage his personal, financial and legal affairs, so long as such
activities do not interfere with the performance of his duties and
responsibilities hereunder.

 

2.                                       Compensation.

 

(a)  
As compensation for the agreements made by the Employee herein and the
performance by the Employee of his obligations hereunder, during the employment
period the Company shall pay the Employee, not less than once a month pursuant
to the Company’s normal and customary payroll procedures, a base salary of U.S.
$265,000 gross per annum following the Effective Date (the “Base Salary”).
The Base Salary shall be payable in U.S. dollars or in Euros at the Employee’s
election. The US$-Euro exchange rate to be used for all purposes pursuant to
this Amended Agreement shall equal the average US$-Euro exchange rate for the
three full calendar months prior to the earlier of the signing of the 2002
Agreement or June 27, 2002. For the avoidance of doubt, the Base Salary is
inclusive of the “holiday pay” provided for under Dutch law. The Base Salary
shall be reviewed annually and may be increased further in the absolute
discretion of the Company. Any such increased Base Salary shall then become the
Base Salary for all purposes hereunder.

 

(b)  
As compensation for the agreements made by the Employee herein and the
performance by the Employee of his obligations hereunder, beginning on the
Effective Date and for the remainder of the Employment Period (the “Bonus
Period”), the Employee shall have an opportunity to earn an annual cash
bonus in accordance with the following terms. For each calendar year during the
Bonus Period following the Effective Date, Employee shall be eligible to earn
an on-target cash bonus of 60% of his Base Salary (or, if Section 2(c) applies,
of his Total Base Compensation as defined therein) for that year, subject to
the performance criteria to be approved by the Company and, except as otherwise
provided in Section 4, subject to the Employee’s employment with the
Company on the last day of the calendar year (the “Annual Bonus”). The
Annual Bonus shall be subject to the terms and conditions set forth in the New
Skies Sales Incentive Plan, as it may be amended from time to time.

 

2

 

(c)  
If and insofar as the employee may receive a tax-free allowance for
extra-territorial costs under Section 9 of the 1965 Payroll Tax
Implementation Decree (as further described in clause (ii) below), the
following shall apply:

 

(i)                                     The originally
agreed upon Wages from Current Employment shall be reduced for employment law
purposes so that 100/70 of the Adjusted Wages from Current Employment is equal
to the originally agreed upon Wages from Current Employment. As used herein, “Wages
from Current Employment” are all income (in cash, cash equivalent, or benefit
in kind) that is subject to wage tax withholding in the Netherlands.

 

(ii)                                  The Employee shall
receive an allowance for extra-territorial costs from the Company, equal to
30/70 of the Adjusted Wages from Current Employment (the “Allowance”).

 

(iii)                               The Employee is aware of
the fact that, in view of the applicable regulations, an adjustment to the
remuneration agreed upon under this section (c) may affect all
considerations and benefits that are linked to Wages from Current Employment,
such as pension rights and social security benefits.

 

(iv)                              The intention of this
provision is to automatically apply Section 9 of the 1965 Payroll Tax
Implementation Decree to all elements of Wages from Current Employment that can
benefit from this special provision.

 

(v)                                 As a result of the
adjustments described in clauses (i) and (ii), the Employee’s adjusted
Base Salary shall equal 70/100 of the previously agreed Base Salary (the “Adjusted
Base Salary”). The Employee hereby consents to this adjustment and agrees
that it shall not constitute a breach of this Amended Agreement or give rise to
any rights on the part of the Employee. Following any adjustment hereunder, all
references in this Amended Agreement to Base Salary shall be deemed to refer to
the Employee’s Total Base Compensation, which shall equal the sum of the
Adjusted Base Salary and the allowance associated therewith.

 

(d)  
During the Employment Period, the Employee shall be entitled to the following
benefits and perquisites, to the extent provided by the Company to employees of
the Company generally:

 

(i)                                     medical (including
for the Employee’s spouse and children under the age of 21, providing for
insurance coverage in the United States) subject to customary and reasonable
limits, co-payments, deductibles, employee contributions and exclusions;

 

(ii)                                  at Employee’s
election, either a car provided by the Company suitable to Employee’s position
(Category C) or the equivalent cost of such a car to the Company in cash;

 

3

 

(iii)                               any other benefits and
perquisites generally provided to other similarly senior staff of the Company,
from time to time, including without limitation any benefits provided to
similarly senior employees who were recruited from outside the Netherlands;
provided that the Employee shall not be entitled to participate in any such
plan providing for benefits in the nature of severance pay; and

 

(iv)                              participation in the New Skies
Satellites N.V. Headquarters Location Premium (HQLP) plan, as such plan may be
amended by the Company from time to time.

 

(e)  
During the Employment Period, the Employee shall be entitled to paid vacation
of twenty-five days per year. Accrual rights and the ability to carry forward
vacation time, if any, shall be subject to the Company’s vacation policy
applicable generally to employees of the Company as in effect from time to
time.

 

(f)  
The Company shall promptly reimburse the Employee for all reasonable business
expenses upon the presentation of statements of such expenses in accordance
with the Company’s policies and procedures now in force or as such policies and
procedures may be modified from time to time.

 

3.                                       Employment
Period.

 

The employment period commenced on June 27,
2002 and shall continue indefinitely. Either party may terminate Employee’s
employment by giving a written “Notice of Termination” to the other party at
the address specified in Section 8(a), in accordance with applicable law,
the parties shall provide at least one month’s notice unless otherwise agreed.
For purposes of this Amended Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this
Amended Agreement relied upon, shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Employee’s
employment under the provision so indicated and shall attach any prior notices
required under Section 4.

 

4.                                       Termination
Payments.

 

In the event
of a termination of the Employee’s employment (a) by the Company without
Cause or (b) by the Employee for Good Reason (as such terms are defined
below), the Company shall pay to (or in the case of business expenses pursuant
to clause (i), reimburse) the Employee, or his estate in the event of his
death, within thirty (30) days following the Date of Termination (as defined
below), (i) the Employee’s Base Salary through the Date of Termination and
outstanding business expenses (to the extent not theretofore paid), and any
other amounts due to the Employee but which have not been paid, (ii) any
earned but unpaid Annual Bonus in respect of a calendar year during the Bonus
Period ending prior to or coincident with the Date of Termination, (iii) an
Annual Bonus equal to the prior year’s Annual Bonus pro-rated for the year in
which the Date of Termination occurs based on the number of days occurring in
such year prior to the date of termination, (iv) a lump-sum payment equal
to two times the sum of (x) the Employee’s Base Salary (as in effect on the
Date of Termination) and (y) the greater of the 

 

4

 

Annual Bonuses for each of the two most
recently completed calendar years preceding the calendar year in which the Date
of Termination occurs, (v) reimbursement for outplacement
services in an amount up to $25,000 upon the Employee’s submission of receipts
for such services, and (vi) continuation of medical and dental benefits
under the Company’s employee benefit plans providing for such benefits, for two
years following the Date of Termination; provided the Company’s obligation to
provide continued welfare benefits under this clause (vi) shall be reduced
to the extent that equivalent coverages and benefits (determined on a
coverage-by-coverage and benefit-by-benefit basis) are provided under the
plans, programs or arrangements of a subsequent employer; and provided further
that in the event that the Employee is precluded from continuing full
participation in the Company’s welfare benefit plans that provide for the
benefits described and contemplated in this clause (vi), the Employee shall be
provided with the after-tax economic equivalent of any benefit or coverage
foregone. For this purpose, the economic equivalent of any benefit or coverage
foregone shall be deemed to be the total cost to the Employee of obtaining such
benefit or coverage himself on an individual basis. Payment of such after-tax
economic equivalent shall be made quarterly.

 

For purposes of this Amended Agreement, the term “Cause” shall mean: (i) a
willful and material violation by the Employee of either Section 1(c) or
6 of this Amended Agreement (unless such violation is cured by the Employee
within thirty (30) days of receipt of a written notice from the Company which
specifically identifies the facts and circumstances of such violation); (ii) the
willful failure by the Employee to substantially perform the duties reasonably
assigned to him within the scope of the Employee’s duties and authority as
stated in Section 1(a) hereunder (other than as a result of physical
or mental illness or injury), after the Company delivers to the Employee a written demand for
substantial performance that specifically identifies the manner in which the
Employee has not substantially performed the Employee’s duties and provides the
Employee thirty (30) days to begin to substantially perform, provided that the
Company shall not have the right to terminate the Employee’s employment
hereunder for Cause if the Employee begins to substantially perform within such
thirty-day period; (iii) the Employee’s willful misconduct, willful waste
of corporate assets or gross negligence which in any such event substantially
and materially injures the Company or its Affiliates; or (iv) the
indictment of the Employee for a felony involving moral turpitude. In order for
a termination to be considered to be for Cause, the Notice of Termination must
be delivered within six (6) months of the date on which the Company first
knows of the event constituting Cause.

 

For purposes of this Amended Agreement, the
term “Good Reason” shall mean: (i) a reduction by the Company in
the Employee’s Base Salary; (ii) any failure by the Company to pay any
amounts due to the Employee within ninety (90) days of the date such amount is
due; (iii) any material diminution of the level of responsibility or
authority of the Employee, including the Employee’s reporting duties (provided,
however, that any change in Employee’s reporting duties consistent with the
Company’s rights under Section 1(a) shall not be deemed to be “Good
Reason”); (iv) any adverse change in Employee’s title or position; (v) the
failure by the Company to obtain from any successor an assumption of the
obligations of the Company as contemplated by Section 7(d) herein; (vi) the
Company requiring the Employee to be based at any office or location that is
more than 50 kilometers from the Company’s current corporate headquarters;
provided that with respect to any such relocation the Employee delivers a written notice of such
Good Reason termination to the Company within thirty (30) days after receiving 

 

5

 

written notice
from the Company of the possibility of such event; and provided further that the
Employee delivers a written notice to the Company within six (6) months of
the date on which the Employee first knows of the event constituting Good
Reason which specifically identifies the facts and circumstances claimed by
Employee to constitute Good Reason and the Company has failed to cure such
facts and circumstances within thirty (30) days after receipt of such notice.

 

For purposes of this Amended Agreement, “Date
of Termination” shall mean one month after the date on which a Notice of
Termination is given or any later date (agreed upon by the parties, after the
giving of such notice).

 

The payments provided in this Section 4
are (i) not subject to offset or mitigation and (ii) conditioned upon
and subject to the Employee executing a valid general release and waiver,
waiving all claims the Employee may have against the Company, its Affiliates,
directors, officers and employees. The Company shall have no additional
obligations under this Amended Agreement except for (i) the
indemnification obligations set forth in Section 5 herein and (ii) any
benefits (other than benefits in the nature of severance pay) to which the
Employee is entitled under the terms of any employee benefit plan in which he
is eligible to participate.

 

5.                                       Indemnification.

 

The Company shall indemnify, defend and hold
the Employee harmless from and against any and all liability or obligation
arising from or relating to this Amended Agreement or the performance by the
Employee of his obligations hereunder, in accordance with the indemnification
provisions set forth in Article 14 of the Company’s Articles of
Association, as in effect on the date hereof, provided that this obligation to
indemnify and defend shall not extend to disputes between the Employee and the
Company, if any, which relate to the benefits or other amounts in the nature of
compensation from the Company to which the Employee believes he is entitled.

 

6.                                       Non-Solicitation;
Non-Disclosure; Workproduct; Non-Competition.

 

(a)  
During the Employment Period and for one year following the termination of
Employee’s employment with Company for any reason, the Employee agrees not to
offer employment to any employee of the Company or any of its Affiliates for
other than employment by the Company or its Affiliates or attempt to induce any
such employee to leave the employ of the Company or any its Affiliates and the
Employee further agrees not to solicit any clients or suppliers of the Company
or its Affiliates to do business with any competing business of the Company or
its Affiliates.

 

(b)  
Employee agrees that he will not appropriate for his own use, disclose,
divulge, furnish or make available to any person. unless in the normal course
of business or as authorized by the Company in writing, any confidential or
proprietary information concerning the Company or its Affiliates, including
without limitation any confidential or proprietary information concerning the
operations, plans or methods of doing business of the Company or its Affiliates
(the “Information”); provided that the term “Information” shall not
include such information which is or becomes generally available to the public
other than as a result of a disclosure by Employee in violation of this Amended
Agreement. Notwithstanding the 

 

6

 

foregoing, Employee may
disclose Information to the extent he is compelled to do so by lawful service
of process, subpoena, court order, or as he is otherwise compelled to do by law
or the rules or regulations of any regulatory body to which he is subject,
including full and complete disclosure in response thereto, in which event he
agrees to provide the Company with a copy of the documents seeking disclosure
of such information promptly upon receipt of such documents and prior to their
disclosure of any such information, so that the Company may, upon notice to
Employee, take such action as the Company deems appropriate in relation to such
subpoena or request.

 

(c)  
Employee agrees that all right, title and interest to all works of whatever nature
generated in the course of his employment resides with the Company and its
Affiliates. Employee agrees that he will return to the Company, not later than
the Date of Termination, all property, in whatever form (including computer
files and other electronic data), of the Company and its Affiliates in his
possession, including without limitation, all copies (in whatever form) of all
files or other information pertaining to the Company, its officers, directors,
shareholders, customers or Affiliates, and any business or business opportunity
of the Company and its Affiliates.

 

(d)  
Employee agrees not to engage in any aspect of the Satellite Business (as
hereinafter defined) during the Employment Period and for one year following
the termination of Employee’s employment with the Company for any reason, other
than a termination by the Company without Cause or by the Employee for Good
Reason. Employee shall be deemed to be engaging in the Satellite Business if he
directly or indirectly, whether or not for compensation, renders personal
services of any kind in any capacity for any Competitor.

 

For purposes of this Section 6(d):

 

(i)                                     The “Satellite
Business” shall mean the business of communication of electronic video,
data, voice or other information by transmission by satellite for hire or any
other business in which the Company or its Affiliates is engaged from time to
time during the Employment Period.

 

(ii)                                  A “Competitor”
is any corporation, firm, partnership, proprietorship or other entity which
engages in the Satellite Business.

 

(e)  
The restrictions of Section 6(d) hereof shall be deemed to be
separate restrictions with respect to each geographic area, time period and
activity covered thereby. Employee hereby agrees that if, in any judicial
proceeding, a court shall refuse to enforce any such separate restriction, then
such unenforceable restriction shall be deemed eliminated from this Amended
Agreement for the purpose of such proceeding or any other judicial proceeding,
but only to the extent necessary to permit the remaining restrictions of Section 6(d) hereof
to be enforced.

 

7

 

(f)  
The parties hereto hereby declare that it is impossible to measure in money the
damages which will accrue to the Company by reason of a failure by Employee to
perform any of his obligations under this Section 6. Accordingly, if the
Company or any of its Affiliates institutes any action or proceeding to enforce
the provisions hereof, to the extent permitted by applicable law, Employee
hereby waives the claim or defense that the Company or any of its Affiliates
has an adequate remedy at law, and Employee shall not urge in any such action
or proceeding the claim or defense that any such remedy at law exists.

 

(g)  
The restrictions in this Section 6 shall be in addition to any
restrictions imposed on Employee by statute or at common law.

 

7.                                       Excise
Tax Matters. 

 

(a)                                  Anything
in this Amended Agreement to the contrary notwithstanding, in the event it
shall be determined that any payment or distribution by the Company to or for
the benefit of the Employee, whether paid or payable or distributed or
distributable pursuant to the terms of this Amended Agreement or otherwise (a “Payment”),
would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999
of the United States Internal Revenue Code (the “Code”), then Employee
shall be entitled to receive an additional payment (a “Gross-Up Payment”)
in an amount equal to the lesser of (i) U.S.$1,000,000 and (ii) the
amount necessary such that after payment by Employee of all taxes (including
any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed
with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment,
Employee retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments; provided that, in the event it shall be
determined that, if in lieu of receiving the Gross-Up Payment, the Employee
would, if the amounts constituting “parachute payments” for purposes of Section 280G
of the Code which would otherwise be payable to the Employee were reduced (as
so reduced, the “Reduced Amount “ ), be entitled to receive and retain,
on a net after-tax basis, an amount that is greater than the amount, on a net
after-tax basis, that the Employee would be entitled to retain upon his receipt
of the Gross-Up Payment, then Employee shall not be entitled to the Gross-Up
Payment but rather shall only be entitled to the Reduced Amount.

 

(b)                                 All determinations
required to be made under this Section 7, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment (or
whether there will be a Reduced Amount and the amount of such Reduced Amount)
and the assumptions to be utilized in arriving at such determination, shall be
made by a nationally recognized accounting firm appointed by the Company and
reasonably acceptable to the Employee (the “Accounting Firm”) which
shall provide detailed supporting calculations both to the Company and Employee
within ten business days of the receipt of notice from Employee that there has
been a Payment, or such earlier time as is requested by the Company; provided
that for purposes of determining the amount of any Gross-Up Payment, Employee
shall be deemed to pay federal income tax at the highest marginal rates
applicable to individuals in the calendar year in which any such Gross-Up
Payment is to be made and deemed to pay state and local income taxes at the
highest marginal rates applicable to individuals in the state or locality of
Employee’s residence and/or place of employment in the calendar year in which
any such Gross-Up Payment is to be made, net of the maximum reduction in
federal income taxes that can be obtained from 

 

8

 

deduction of such state and local taxes,
taking into account limitations applicable to individuals subject to federal
income tax at the highest marginal rates. 
All fees and expenses of the Accounting Firm shall be borne solely by
the Company.  Any Gross-Up Payment, as
determined pursuant to this Section 7, shall be paid by the Company to
Employee five days prior to when due (or to the appropriate taxing authority on
Employee’s behalf when due).  If the
Accounting Firm determines that no Excise Tax is payable by Employee or that
the Reduced Amount will apply, it shall so indicate to Employee in
writing.  Subject to the following
sentence and Section 7(c) hereof, any determination by the Accounting
Firm shall be binding upon the Company and Employee.  As a result of the uncertainty in the
application of Section 4999 of the Code, it is possible that the amount of
the Gross-Up Payment determined by the Accounting Firm to be due to (or on behalf
of) Employee was lower than the amount actually due (“Underpayment”).  In the event that the Company exhausts its
remedies pursuant to Section 7(c) and Employee thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of Employee.

 

(c)                                  Employee
shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of any
Gross-Up Payment.  Such notification
shall be given as soon as practicable but no later than ten business days after
Employee is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  Employee shall not pay such claim
prior to the expiration of the thirty day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies Employee prior to the
expiration of such period that it desires to contest such claim, Employee shall
(i) give the Company any information reasonably requested by the Company
relating to such claim, (ii) take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company, (iii) cooperate
with the Company in good faith in order to effectively contest such claim and (iv) permit
the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without
limitation on the foregoing provisions of this Section 7(c), the Company
shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct Employee to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner,
and Employee agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided, further,
that if the Company directs Employee to pay such claim and sue for a refund,
the Company shall advance the amount of such payment to Employee, on an
interest-free basis, and shall indemnify and hold Employee harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; provided, further,

 

9

 

that if
Employee is required to extend the statute of limitations to enable the Company
to contest such claim, Employee may limit this extension solely to such
contested amount.  The Company’s control
of the contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and Employee shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

 

(d)           If, after the receipt by Employee of
an amount paid or advanced by the Company pursuant to this Section 7,
Employee becomes entitled to receive any refund with respect to a Gross-Up
Payment, Employee shall (subject to the Company’s complying with the
requirements of Section 7(c)) promptly pay to the Company the amount of
such refund received (together with any interest paid or credited thereon after
taxes applicable thereto).  If, after the
receipt by Employee of an amount advanced by the Company pursuant to Section 7(c),
a determination is made that Employee shall not be entitled to any refund with
respect to such claim and the Company does not notify Employee in writing of
its intent to contest such denial of refund prior to the expiration of thirty
days after such determination, then such advance shall be forgiven and shall
not be required to be repaid and the amount of such advance shall offset, to
the extent thereof, the amount of the Gross-Up Payment required to be paid.

 

8.                                       Miscellaneous.

 

(a)  
Any notice or other communication required or permitted under this Amended
Agreement shall be effective only if it is in writing and delivered personally
or sent by registered or certified mail, postage prepaid, addressed as follows
(or if it is sent through any other method agreed upon by the parties):

 

If to the Company:

 

New Skies Satellites B.V.

Attention: VP Human Resources

Rooseveltplantsoen 4

2517 KR Den Haag

The Netherlands

 

With a copy to:

 

New Skies Satellites B.V.

Attention: General Counsel

Rooseveltplantsoen 4

2517 KR Den Haag

The Netherlands

 

If to the Employee:

 

Mr. S.J. Sprague

Julianaweg 2

2243 HT Wassenaar

The Netherlands

 

10

 

or to such other address as any
party hereto may designate by notice to the others, and shall be deemed to have
been given upon receipt.

 

(b)  
This Amended Agreement constitutes the entire agreement among the parties
hereto with respect to the Employee’s employment, and supersedes and is in full
substitution for any and all prior understandings or agreements with respect to
the Employee’s employment.

 

(c)  
This Amended Agreement may be amended only by an instrument in writing signed
by the parties hereto, and any provision hereof may be waived only by an instrument
in writing signed by the party or parties against whom or which enforcement of
such waiver is sought. The failure of any party hereto at any time to require
the performance by any other party hereto of any provision hereof shall in no
way affect the full right to require such performance at any time thereafter,
nor shall the waiver by any party hereto of a breach of any provision hereof be
taken or held to be a waiver of any succeeding breach of such provision or a
waiver of the provision itself or a waiver of any other provision of this
Amended Agreement.

 

(d)                     (i)  This Amended Agreement is binding on and is
for the benefit of the parties hereto and their respective successors, heirs,
executors, administrators and other legal representatives. Neither this Amended
Agreement nor any right or obligation under this Amended Agreement may be
assigned, transferred, pledged or encumbered by the Company or by the Employee.

 

(ii)                                              The
Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company expressly to assume and agree to perform this
Amended Agreement in the same manner and to the same extent that the Company
would have been required to perform them if no such succession had taken place.
As used in this Amended Agreement, all references to “Company” shall mean both
the Company and any such successor that assumes and agrees to perform this
Amended Agreement by operation of law or otherwise.

 

(e)  
If any provision of this Amended Agreement or portion thereof is so broad, in
scope or duration, so as to be unenforceable, such provision or portion thereof
shall be interpreted to be only so broad as is enforceable.

 

(f)  
The Company may withhold from any amounts payable to the Employee hereunder all
amounts due from the Employee to the Company and all taxes and other amounts
that the Company may reasonably determine are required to be withheld pursuant
to any applicable law or regulation.

 

(g)  
This Amended Agreement shall be governed by and construed in accordance with
the laws of The Netherlands, without reference to its principles of conflicts
of law. At the Company’s request and subject to the Company’s compliance with Section 4
of this Amended Agreement, Employee agrees to take all steps necessary or
appropriate, including without limitation to execute all necessary or
appropriate documentation, to terminate this Amended Agreement as of the end of
the minimum statutory notice period on the terms and conditions set forth in
this Amended Agreement, by dissolution by the District Court, Cantonal
Division, location The Hague.

 

11

 

(h)  
Notwithstanding any provision in this Agreement to the contrary, any payment
otherwise required to be made hereunder to the Employee at any date as a result
of the termination of the Employee’s employment hereunder shall be delayed for
such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of
the Code. On the earliest date on which such payments can be made without
violating the requirements of Section 409A(a)(2)(B)(i) of the Code,
there shall be paid to Employee (or if Employee has died, to his estate), in a
single cash lump sum, an amount equal to the aggregate amount of all payments
delayed pursuant to the preceding sentence.

 

(i)  
This Amended Agreement may be executed in several counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.

 

(j)  
The headings in this Amended Agreement are inserted for convenience of
reference only and shall not be a part of or control or affect the meaning of
any provision hereof.

 

IN WITNESS WHEREOF, the parties have executed
this Amended Agreement, as of the date first written above.

 

	
   

  	
  NEW SKIES SATELLITES B.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel S. Goldberg

  	
   

  
	
   

  	
  Daniel S.
  Goldberg

  
	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Scott J. Sprague

  	
   

  
	
   

  	
  Scott J.
  Sprague

  

 

12

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