Document:

Exhibit 10.16

 

AGREEMENT OF DISCLOSED PLEDGE

 

between

 

NEW
SKIES SATELLITES B.V.

 

as
Pledgor

 

and

 

 

DEUTSCHE BANK AG, NEW YORK BRANCH

 

as
Pledgee

 

 

Intercompany

Accounts Receivable

 

 

Stibbe
N.V.

Strawinskylaan
2001

Amsterdam

 

 

INDEX

 

	
  1

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
  2

  	
  PLEDGE

  	
   

  
	
  3

  	
  ACCESSORY RIGHTS
  AND ANCILLARY RIGHTS

  	
   

  
	
  4

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
  5

  	
  UNDERTAKINGS

  	
   

  
	
  6

  	
  CONSENT

  	
   

  
	
  7

  	
  ENFORCEMENT AND POWER
  OF ATTORNEY

  	
   

  
	
  8

  	
  TERMINATION

  	
   

  
	
  9

  	
  ASSIGNMENT AND INFORMATION

  	
   

  
	
  10

  	
  RECORDS OF PLEDGEE

  	
   

  
	
  11

  	
  COSTS

  	
   

  
	
  12

  	
  NOTICES

  	
   

  
	
  13

  	
  SUSPENSION OF RIGHTS
  AND INDEMNITY

  	
   

  
	
  14

  	
  LIABILITY

  	
   

  
	
  15

  	
  LIMITATION; WAIVER

  	
   

  
	
  16

  	
  SECURITY INTEREST ABSOLUTE

  	
   

  
	
  17

  	
  AMENDMENT OF THIS AGREEMENT

  	
   

  
	
  18

  	
  GOVERNING LAW AND
  JURISDICTION

  	
   

  
	
  19

  	
  SEVERABILITY OF PROVISIONS

  	
   

  
	
  20

  	
  REMEDIES AND PREVALENCE

  	
   

  
	
  21

  	
  REGULATORY
  MATTERS

  	
   

  
	
  22

  	
  REGISTRATION

  	
   

  
	
  23

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX 1

  	
  FORM OF DEFAULT NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX 2

  	
  FORM OF NOTIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX 3

  	
  FORM OF THIRD
  PARTY NOTICE

  	
   

  
				

 

2

 

THIS
AGREEMENT OF DISCLOSED PLEDGE OF INTERCOMPANY ACCOUNTS RECEIVABLE IS DATED 2
NOVEMBER 2004

 

BETWEEN:

 

1                                          New Skies Satellites B.V., a
private company with limited liability (besloten vennootschap),
incorporated and existing under the laws of The Netherlands, with corporate
seat in Amsterdam, The Netherlands, having its registered address at Rokin 55,
1012 KK Amsterdam, The Netherlands, registered with the Commercial Register
under number 30146277 (the “Pledgor”);

 

2                                          Deutsche
Bank AG, New York Branch,
with its principal place of business at 60 Wall Street, New York, New York
10005, United States of America, acting as
Collateral Agent pro se in its capacity as
creditor under the Parallel Debt Obligations (as defined below) and also for
the Secured Parties, as such term is defined in the Credit Agreement (as
defined below), pursuant to the terms of the Credit Agreement (the “Pledgee”).

 

WHEREAS:

 

(a)                                  on 2 November 2004,
amongst others, New Skies Holding B.V., the Pledgor, the Lenders party thereto,
the Pledgee (as Administrative Agent and as Collateral Agent for the Secured
Parties), ABN AMRO Bank N.V. (as Syndication Agent) and Deutsche Bank
Securities Inc. and ABN AMRO Incorporated (as Joint Lead Arrangers) entered
into a USD 535,000,000 Credit Agreement (the “Credit
Agreement”);

 

(b)                                 on the terms and
subject to the conditions set forth in the Credit Agreement the Lenders are
willing to extend senior secured credit to the Borrowers (as defined in the
Credit Agreement); and

 

(c)                                  as a condition to the
(continuing) availability of such credit and in order to secure and provide for
the payment and discharge of, inter alia,
the Parallel Debt Obligations (as defined below), the Pledgor and the Pledgee
have agreed that the Pledgor shall enter into this Agreement of Disclosed
Pledge of Intercompany Accounts Receivable.

 

IT
IS HEREBY AGREED AS FOLLOWS:

 

1                                          DEFINITIONS AND INTERPRETATION

 

1.1                                 All capitalised terms
used in this Agreement of Disclosed Pledge of Intercompany Accounts Receivable
(the “Agreement”), including the recitals,
and not otherwise defined herein shall have the meaning assigned to them in the
Credit Agreement.

 

3

 

1.2                                 a              Headings are for
convenience of reference only.

 

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

 

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

 

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

 

e.                                       References to the Credit Agreement, the
Facility, the (other) Loan Documents, this Agreement, the Swap Agreements or
any other agreement or document shall, where applicable, be deemed to be
references to such Credit Agreement, the Facility, the (other) Loan Documents,
this Agreement, the Swap Agreements or such other agreement or document as the
same may have been, or may from time to time be, extended, prolonged, amended,
restated, supplemented, renewed or novated, as persons may accede thereto as a
party or withdraw therefrom as a party in part or in whole or be released thereunder
in part or in whole, and as facilities and financial services are or may from
time to time be granted, extended, prolonged, increased, reduced, cancelled,
withdrawn, amended, restated, supplemented, renewed or novated thereunder.

 

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

 

g.                                      References
to the Dutch Civil Code are references to het Nederlands Burgerlijk
Wetboek, references to the Dutch Bankruptcy Act are references to de Nederlandse Faillissementswet.

 

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

 

“Accounts Receivable” means any and all
intercompany accounts receivable of the Pledgor against any Debtors whether now
existing or hereafter created or arising;

 

“Debtors” means the Group Companies of the
Pledgor from time to time including but not
limited to the companies that sign this Agreement;

 

“Default Notice” means the default notice substantially in
the form of Annex 1 hereto;

 

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

 

“Group Company” has the meaning ascribed thereto in section
2:24b of the Dutch Civil Code;

 

4

 

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

 

“Parallel Debt Obligations” has the meaning ascribed thereto
in section 9.19 of the Credit Agreement;

 

“Pledged Collateral” means the Accounts Receivable;

 

“Rights of Pledge” means the rights of pledge
created under this Agreement;

 

“Secured Obligations” means the Parallel Debt Obligations (of
each of the Loan Parties); and

 

“Security Period” means the period beginning
on the date hereof and ending on the earlier date upon which (a) all Secured
Obligations have been irrevocably paid and discharged, or have ceased to exist,
no Swap Agreements are outstanding and all Commitments under the Credit
Agreement have been terminated and (b) all Rights of Pledge have been released
and discharged by the Pledgee in accordance with Clause 8.2 below.

 

2                                          PLEDGE

 

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

 

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

 

2.3                                 The Pledgee hereby
notifies the Debtors which are party hereto of the Right of Pledge required
pursuant to section 3:236 (2) in conjunction with section 3:94 of the Dutch
Civil Code and such notification is acknowledged by the Debtors by
countersigning this Agreement.

 

2.4                                 In order to perfect
the Right of Pledge, the Pledgor (also on behalf of the Pledgee) shall
forthwith notify each Debtor (i) with which it has business generating intercompany
Accounts Receivable and (ii) which (a) has not countersigned this Agreement or
(b) becomes a Group Company of the Company in the future, of the Right of
Pledge by sending a notification (mededeling)
pursuant to section 3:236 (2) in conjunction with section 3:94 of the Dutch
Civil

 

5

 

Code
to such Debtors by registered mail substantially in the form of Annex 2 hereto with a copy to the Pledgee.

 

2.5                                 The Pledgee hereby
revocably authorises the Pledgor to send the notifications as referred to in
Clause 2.4 above also on its behalf and to accept on behalf of the Pledgee, for
the duration of the Security Period, a right of pledge on the terms of this
Agreement over Accounts Receivable acquired by the Pledgor after the date
hereof, which authorisation permits the Pledgee to (also) act as the Pledgor’s
counterparty within the meaning of section 3:68 (Selbsteintritt)
of the Dutch Civil Code.

 

2.6                                 If no notice has been
given by the Pledgor to one or more Debtors in respect of the Accounts
Receivable owed to the Pledgor by such Debtors, this pledge shall constitute an
undisclosed pledge over those Accounts Receivable (stil pandrecht) until the moment notice has been given to
the relevant Debtors.

 

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

 

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

 

3                                          ACCESSORY
RIGHTS AND ANCILLARY RIGHTS

 

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

 

4                                          REPRESENTATIONS
AND WARRANTIES

 

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

 

6

 

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

 

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

 

5                                          UNDERTAKINGS

 

5.1                                 Except to the extent
permitted pursuant to the Credit Agreement, the Pledgor undertakes not to waive
without the prior written consent of the Pledgee (not to be unreasonably
withheld or delayed), any accessory rights (afhankelijke rechten)
or ancillary rights (nevenrechten)
attached to the Accounts Receivable and in general not to perform any acts
which result or could result in a material reduction of the value of the
Accounts Receivable.

 

5.2                                 Except to the extent
permitted pursuant to the Credit Agreement, the Pledgor shall not, without the
prior written consent of the Pledgee (not to be unreasonably withheld or
delayed), transfer or further pledge or otherwise encumber any of the Accounts
Receivable, or agree to a court settlement or an out-of-court settlement (gerechtelijk or buitengerechtelijk akkoord)
in respect of the Accounts Receivable.

 

5.3                                 The Pledgor shall, at
the Pledgee’s first request (acting reasonably), provide in the English
language the Pledgee all information and supporting documentation relating to
the Accounts Receivable and allow the Pledgee to inspect its administrative
records during office hours, all of the foregoing to the extent required by the
Pledgee (acting reasonably) for the purpose of this Agreement.

 

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

 

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

 

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

 

7

 

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

 

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

 

5.6                                 In addition and
without prejudice to the obligations of the Pledgor pursuant to Clauses 5.3 and
5.4 above, the Pledgor shall notify the Pledgee promptly of any event or
circumstance which could reasonably be of importance to the Pledgee with a view
to the preservation and exercise of the Pledgee’s rights under or pursuant to
this Agreement.

 

6                                          CONSENT

 

6.1                                 In accordance with
section 3:246 of the Dutch Civil Code, the Pledgee is entitled to demand the
performance judicially and extra-judicially of and to receive payment with
respect to, the Accounts Receivable. The Pledgee hereby revocably authorises
the Pledgor to demand the performance judicially and extra-judicially of and to
receive payment from each Debtor with respect to, the Accounts Receivable. The
Pledgee shall after execution of this Agreement inform the relevant Debtors of
this authorisation.

 

6.2                                 Upon the issuance of
the Default Notice to the Pledgor, the authorisation granted to the Pledgor to
demand the performance judicially and extra-judicially of and to receive
payment will terminate. In such case, the Pledgee will notify each relevant
Debtor by written notice substantially in the form of Annex 3 hereto.
The Pledgor shall give its prompt and full co-operation in connection herewith.

 

6.3                                 If the Pledgee has the
right to demand the performance judicially and extra-judicially of and to
receive payment with respect to, an Account Receivable, it shall also have the
right to enter into court settlement or out-of-court settlement (gerechtelijk of buitengerechtelijk akkoord)
regarding such Accounts Receivable with the Third Party concerned.

 

6.4                                 If a Debtor makes any
payment (the “Original Payment”) to the Pledgor
in respect of an Account Receivable after it has been notified by the Pledgee
that the authorisation granted pursuant to Clause 6.1 above has terminated, the
Pledgor shall immediately transfer to the Pledgee a sum equal to the amount
paid by the Debtor (the “Equivalent Sum”)
to the Pledgor, without prejudice to any remedy which the Pledgee may have
against the Debtor concerned,

 

8

 

provided,
however, that to the extent the Pledgee has received payment of any part of the
Equivalent Sum from the Pledgor, the Debtor will as a result be released for
such part of its payment obligation towards the Pledgee in respect of the
Original Payment.

 

7                                          ENFORCEMENT
AND POWER OF ATTORNEY

 

7.1                                 Without prejudice to
any other right or remedy available to the Pledgee, the Pledgee, by issuing the
Default Notice upon the occurrence of an Event of Default to the Pledgor, may
declare the Rights of Pledge immediately
enforceable against the Pledgor without any notice of default being required
and the Pledgee may immediately exercise in respect of any and all of the
Accounts Receivable any and all of its rights and powers set out in this
Agreement (subject to restrictions following from mandatory provisions of law)
irrespective of whether the Pledgee or any of the Secured Parties shall have
proceeded against or claimed payment from any party liable for any of the
Corresponding Obligations.

 

7.2                                 To the extent
necessary, the Pledgor agrees for the benefit of the Pledgee that upon a default in the performance of any of the
Corresponding Obligations, it shall be deemed to be in default (verzuim) in respect of its Secured
Obligations within the meaning of section 3:248 (1) and 6:81 of the Dutch Civil
Code without any further notice or action being necessary. For the avoidance of doubt, a default in the performance of the
Corresponding Obligations shall have occurred, inter alia,
upon the taking by the Administrative Agent of any of the actions referred to
in the final paragraph of section 7.01 of the Credit Agreement.

 

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

 

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

 

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

 

9

 

Receivable
comprised in such Rights of Pledge (save as may be otherwise provided in the
Credit Agreement).

 

7.6                                 The Pledgee shall
apply the proceeds of the Accounts Receivable and the foreclosure of the Rights
of Pledge or any of them in satisfaction of the Secured Obligations and/or the
Corresponding Obligations, in each case in accordance with Section 9.23 of the
Credit Agreement and applicable provisions of Dutch law.

 

7.7                                 In addition to the
undertakings contained in Clause 2.7 above, the Pledgor shall at any time, upon
written request of the Pledgee after the issuance of a Default Notice to the
Pledgor, execute and cause to be filed, at the Pledgor’s expense, such
documents and instruments, and do such other acts and things, as the Pledgee
may reasonably deem desirable in obtaining the full benefits of this Agreement
(including the protection and preservation of its rights) and of the rights and
powers granted hereunder or granted to a pledgee under the laws of the
Netherlands.

 

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

 

8                                          TERMINATION

 

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

 

8.2                                 The Rights of Pledge
or any of them shall terminate by operation of law when all Secured Obligations
have been unconditionally and irrevocably paid and discharged in full, no
Letters of Credit or Swap Agreements are outstanding and all Commitments under
the Credit Agreement have terminated. At the request of the Pledgor, the
Pledgee shall confirm such termination to the Pledgor in writing and will
execute all documents reasonably requested by the Pledgor in relation thereto
(at the expense of the Pledgor).

 

10

 

9                                          ASSIGNMENT
AND INFORMATION

 

9.1                                 Subject to the
relevant provisions of the Credit Agreement, the Pledgee (but not, for the
avoidance of doubt, the Pledgor) shall be entitled to assign and/or transfer
all or part of its rights and obligations under this Agreement to any assignee
and/or transferee.

 

9.2                                 The Pledgor hereby in
advance gives its irrevocable consent to (geeft
toestemming bij voorbaat) within the meaning of section 6:156 of the
Dutch Civil Code and hereby in advance irrevocably co-operates with (verleent bij voorbaat medewerking aan),
within the meaning of sections 6:159 and 6:156 of the Dutch Civil Code, any
such assignment and/or transfer executed in accordance with the relevant
provisions of the Credit Agreement, including by means of an assumption of debt
(schuldoverneming) or transfer of
agreement (contractsoverneming),
as the case may be, hereunder.

 

9.3                                 The Pledgee shall be
entitled to impart any information concerning the Pledgor to any successor or
proposed successor, subject to the confidentiality provisions of the Credit
Agreement.

 

10                                    RECORDS
OF PLEDGEE

 

Subject
to proof to the contrary, the records of the Pledgee shall be conclusive
evidence (dwingend bewijs) of the
existence and amount of the Secured Obligations and the Corresponding
Obligations, subject to and in accordance with the terms of the Credit
Agreement.

 

11                                    COSTS

 

Subject
to any provision to the contrary herein, all costs incurred in connection with
the creation of the Rights of Pledge and the performance by the parties of
their rights and obligations under this Agreement shall be for the account of
the persons or entities designated in clause 9.05 of the Credit Agreement and
shall be settled in accordance therewith.

 

12                                    NOTICES

 

Any
notices and other communications under or in connection with this Agreement
shall be given in accordance with clause 9.01 of the Credit Agreement.

 

13                                    SUSPENSION
OF RIGHTS AND INDEMNITY

 

13.1                           Throughout the
Security Period, the Pledgor shall not:

 

11

 

(i)                                     receive, claim or have
the benefit of any payment, distribution or security from or on account of any
Loan Party under any indemnity or otherwise or exercise its rights of defence,
suspension, retention, set off or counter claim as against any Loan Party;

 

(ii)                                  take recourse (verhaal) or take any other step to enforce any right against
any Loan Party or its respective assets; and

 

(iii)                               claim or vote in
competition with the Pledgee or any of the other Secured Parties in the
bankruptcy, suspension of payment or liquidation or analogous circumstance of
any Loan Party,

 

in
each case, except in such manner and upon such terms as the Pledgee, acting
reasonably, may require. Any payment, distribution or security received by the
Pledgor contrary to the provisions of this Agreement shall be received and held
by the Pledgor as custodian (bewaarnemer)
(or, if possible under applicable law, on trust) for the benefit of the Pledgee
and the other Secured Parties and shall, pending payment or transfer to the
Pledgee, to the extent legally possible, be segregated from the other assets of
the Pledgor and shall be forthwith paid over or transferred to the Pledgee. If
notwithstanding the above the Pledgor exercises any right of defence,
suspension, retention, set off or counter claim in respect of any amount, it
shall forthwith pay an amount equal to such amount to the Pledgee.

 

14                                    LIABILITY

 

The
Pledgee shall not be liable to the Pledgor under or pursuant to this Agreement
except for its wilful misconduct (opzet)
or gross negligence (grove schuld).

 

15                                    LIMITATION;
WAIVER

 

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

 

16                                    SECURITY
INTEREST ABSOLUTE

 

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

 

12

 

(i)            any change in the time, manner or place of payment of the
Parallel Debt Obligations and/or the Corresponding Obligations or any change of
or amendment to any other Loan Document and any other document related thereto,
or any other agreement or instrument relating to any of them; or

 

(ii)           any exchange, release or non perfection of any other
collateral, or any release or amendment or waiver of or consent to any
departure from any other collateral for the Parallel Debt Obligations and/or
the Corresponding Obligations.

 

17                                    AMENDMENT
OF THIS AGREEMENT

 

This
Agreement may only be amended by a written agreement between the Pledgor and
the Pledgee (with the consent of the Required Secured Parties).

 

18                                    GOVERNING
LAW AND JURISDICTION

 

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

 

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

 

19                                    SEVERABILITY
OF PROVISIONS

 

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

 

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

 

13

 

20                                    REMEDIES
AND PREVALENCE

 

20.1                           The rights and
remedies of the Pledgee herein, and the obligations, representations and
warranties of the Pledgor herein, are cumulative and are not exclusive of any
rights or remedies of the Pledgee, or obligations, representations or warranties
of the Pledgor, conferred or imposed by law, the Credit Agreement or any other
Loan Document.

 

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

 

21                                    REGULATORY MATTERS

 

21.1                           Notwithstanding
anything to the contrary contained in this Agreement or any of the other
Security Documents, the rights of the Pledgee and the other Secured
Parties hereunder and under the other Security Documents are subject to all
applicable rules and regulations of the FCC and other Governmental Authorities
with jurisdiction over Pledgor and its subsidiaries.  Without limiting the
foregoing, the Pledgee will not take any action (or authorize any other party
to take any action on its behalf) which would constitute or result in an
assignment or change of control of any governmental permits, licenses, or other
authorizations, including without limitation those issued by the FCC, now held
by or to be issued to Pledgor or any of its subsidiaries which would require
prior notice to or approval from any Governmental Authority, or otherwise take
action hereunder which would require prior notice to or approval from any
Governmental Authority, in each case without first providing such notice
or obtaining such prior approval of the relevant Governmental Authorities.

 

21.2                           Upon and after the
issuance of a Default Notice, the Pledgor shall take any action which the
Pledgee may reasonably request in the exercise of its rights and remedies under
this Agreement in order to transfer or assign the Collateral to the Pledgee or
to such one or more third parties as the Pledgee may designate, or to a
combination of the foregoing.  To enforce
the provisions of this Clause 21, upon and after the issuance of a Default
Notice, the Pledgee is empowered to seek from the FCC and any other
Governmental Authority, to the extent required, consent to or approval of any
involuntary assignment or transfer of control of any entity whose Collateral is
subject to this Agreement for the purpose of seeking a bona fide purchaser to
whom the Collateral will be assigned and control will ultimately be
transferred.  Pledgor agrees to cooperate
with any such purchaser and with the Pledgee in the preparation, execution and
filing of any applications and other documents and providing any information
that may be necessary or helpful in obtaining the FCC’s or such other
Governmental Authority’s consent to the assignment to such purchaser of the
Collateral.  Pledgor hereby agrees to
consent to any such an involuntary transfer of control upon the request of the
Pledgee upon and after the issuance of a Default Notice and, without limiting
any rights of the Pledgee under this Agreement, to authorize the Pledgee to
nominate a trustee or receiver to assume control of the Collateral, subject
only to required judicial, FCC or other consent required by

 

14

 

Governmental Authorities, in order to
effectuate the transactions contemplated in this Clause 21. Such trustee or receiver
shall have all the rights and powers as provided to it by law or court order,
or to the Pledgee under this Agreement. 
Pledgor shall cooperate fully in obtaining the consent of the FCC and
the approval or consent of each other Governmental Authority required to
effectuate the foregoing.

 

21.3                           Upon and after the
issuance of a Default Notice, Pledgor shall use its best efforts to assist in
obtaining consent or approval of the FCC and any other Governmental Authority,
if required, for any action or transactions contemplated by this Agreement,
including, without limitation, the preparation, execution and filing with the
FCC of the transferor’s or assignor’s portion of any application or
applications for consent to the transfer of control or assignment necessary or
appropriate under the FCC’s rules and regulations for approval of the transfer
or assignment of any portion of the Collateral.

 

21.4                           Pledgor hereby
acknowledges and agrees that the Collateral is a unique asset and that a
violation of Pledgor’s covenant to cooperate with respect to any regulatory
consents would result in irreparable harm to the Pledgee for which monetary
damages are not readily ascertainable. 
Pledgor further agrees that, because of the unique nature of its
undertaking in this subclause 21.4, the same may be specifically enforced, and
it hereby waives, and agrees to waive, any claim or defense that the Pledgee
would have an adequate remedy at law for the breach of this undertaking.

 

21.5                           Without limiting the
obligations of Pledgor hereunder in any respect, Pledgor further agrees that if
Pledgor, upon and after the issuance of a Default Notice, should fail or refuse
to execute any application or other document necessary or appropriate to obtain
any governmental consent necessary or appropriate for the exercise of any right
of the Pledgee hereunder, Pledgor agrees, to the extent consistent with
applicable law, that such application or other document may be executed on
Pledgor’s behalf by the clerk of any court or other forum in any competent
jurisdiction without notice to the Pledgor.

 

22                                    REGISTRATION

 

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

 

15

 

23                                    COUNTERPARTS

 

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

 

[remainder of this page intentionally left blank]

 

16

 

This
Agreement has been entered into on 2 November 2004.

 

	
  THE
  PLEDGOR

  	
   

  
	
   

  	
   

  
	
  NEW SKIES SATELLITES
  B.V.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ David
  Viëtor

  	
   

  	
   

  
	
  By: David
  Viëtor

  	
   

  
	
  Title:
  attorney in fact

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE
  PLEDGEE

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG, NEW YORK BRANCH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Pieter Schütte

  	
   

  	
   

  
	
  By: Pieter
  Schütte

  	
   

  
	
  Title:
  attorney in fact

  	
   

  

 

17Exhibit 10.17

 

	
  AGREEMENT AND DEED OF PLEDGE
  OF SHARES

  	
  MMH/6001933/232182

  
	
  NEW SKIES SATELLITES B.V.

  	
  01-11-2004

  
	
   

  	
  4

  

 

Today,

, appeared before me,

Paul Hubertus Nicolaas Quist, civil-law notary
in Amsterdam:

 

in the present matter acting as holder of a
written power of attorney of:

 

1.              the company with
limited liability (besloten vennootschap met
beperkte aansprakelijkheid) New
Skies Holding B.V., having its seat in Amsterdam, its address at
1012 KK Amsterdam, Rokin 55 and filed at the Trade Register under number
34134365, (the ‘Pledgor’);

 

2.              Deutsche
Bank AG, New York Branch, with its principal place of business at 60
Wall Street, New York, New York 10005, United States of America, in this
present matter acting:

(i) for itself;

 

(ii) as collateral agent for
the Secured Parties, as such term is defined in the Credit Agreement (as
defined below), pursuant to the terms of the Credit Agreement,

(the ‘Pledgee’);

 

3.              the company with
limited liability (besloten vennootschap met
beperkte aansprakelijkheid) New
Skies Satellites B.V., having its seat in Amsterdam, its address at
1012 KK Amsterdam, Rokin 55, filed at the Trade Register under number 30146277,

(‘New Skies’).

 

Powers of attorney

 

The powers of attorney are evidenced by three
(3) private deeds, which will be attached to this deed.

 

The appearing person declared:

 

A.      on the
second day of November two thousand and four, amongst others, New Skies
Holding B.V., the Pledgor, the Lenders party thereto, the Pledgee (as
Administrative Agent and as Collateral Agent for the Secured Parties), ABN AMRO
Bank N.V. (as

 

1

 

Syndication Agent) and
Deutsche Bank Securities Inc. and ABN AMRO Incorporated (as Joint Lead
Arrangers) entered into a five hundred thirty-five million American Dollars
(USD 535,000,000) Credit Agreement (the ‘Credit
Agreement);

 

B.        on the terms and
subject to the conditions set forth in the Credit Agreement the Lenders are
willing to extend senior secured credit to the Borrowers (as defined in the
Credit Agreement);

 

C.        as a condition to the
(continuing) availability of such credit the Pledgor and the Pledgee have entered
into the Holdings Guarantee (the ‘Guarantee’)
dated [*] November two thousand and four pursuant to which the Pledgor
guarantees the Guaranteed Obligations (as defined in the Guarantee) in favour
of the Pledgee (as Collateral Agent; and

 

D.       in order to secure
and provide for the payment and discharge of, inter
alia, the obligations of the Pledgor under or pursuant to the
Guarantee, the Pledgor and the Pledgee have agreed that the Pledgor shall grant
a first right of Pledge (een eerste recht
van pand) on the Shares (as defined below) (the “Pledge”).

Consequently, the appearing
person declared:

 

It is hereby agreed as
follows:

 

1.              Definitions
and interpretation

 

1.1.                           All
capitalised terms used in this agreement and deed of pledge of shares (the ‘Agreement’) including the recitals, and not
otherwise defined herein shall have the meaning assigned to them in the Credit
Agreement or the Guarantee.

 

1.2.                           a.              Headings are for
convenience of reference only.

 

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

 

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

 

d.             A ‘clause’ and a
‘subclause’ shall, subject to any indication to the contrary, be construed as a
reference to a clause and subclause hereof.

e.              References to the
Credit Agreement, the Facility, the (other) Loan Documents, the Guarantee, this
Agreement, the Swap Agreements or any

 

2

 

other agreement or document shall, where
applicable, be deemed to be references to such Credit Agreement, the Facility,
the (other) Loan Documents, the Guarantee, this Agreement, the Swap Agreements
or such other agreement or document as the same may have been, or may from time
to time be, extended, prolonged, amended, restated, supplemented, renewed or
novated, as persons may accede thereto as a party or withdraw therefrom as a
party in part or in whole or be released there under in part or in whole, and
as facilities and financial services are or may from time to time be granted,
extended, prolonged, increased, reduced, cancelled, withdrawn, amended,
restated, supplemented, renewed or novated there under.

 

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

 

g.             References to the
Dutch Civil Code are references to het
Nederlands Burgerlijk Wetboek, references to the Dutch Bankruptcy
Act are references to de Nederlandse Faillissementswet.

 

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

 

•                 Collateral’ means (i) the Shares and (ii) the Rights;

•                 ‘Default Notice’ means the default notice,
to be given upon the occurrence of an Event of Default, substantially in the
form of Annex 1 hereof;

•                 ‘Future Rights’ means any and all Rights in
respect of Future Shares;

•                 ‘Future Shares’ means all shares in the
capital of New Skies which the Pledgor may hold at any time, which may be
issued to or acquired by the Pledgor after the date of this Agreement;

•                 ‘Present shares’ means one hundred percent
(100%) of the registered and paid-up shares in the capital of New Skies, being
one hundred eighty-two thousand (182,000) shares, each with a nominal value of
one euro (EUR 1.-), numbered 1 to 182,000 inclusive;

•                 ‘Pledge’ means the right of pledge as
created in clause 2.2;

•                 ‘Pledged  Collateral’
means the Collateral;

 

3

 

•                 ‘Rights’ means any and all rights to or
under dividends, other distributions, proceeds, options, warrants, claim rights
and other similar rights, other than shares in the capital of New Skies,
currently existing or in the future arising or received with respect to or out
of the Shares but excluding the Voting Rights;

•                 ‘Rights of Pledge’ means each of the rights
of pledge created under this Agreement;

•                 ‘Secured Obligations’ means any and all
(monetary) obligations of the Pledgor under or pursuant to the Guarantee
(whether now existing or hereafter created or arising) together with all monies
and liabilities payable or to be discharged by the Pledgor pursuant to the
terms of this Agreement;

•                 ‘Security Period’ means the period beginning
on the date hereof and ending on the earlier date upon which (a) all Secured
Obligations have been irrevocably paid and discharged, or have ceased to exist,
no Swap Agreements are outstanding and all Commitments under the Credit
Agreement have been terminated and (b) all Rights of Pledge have been released
and discharged by the Pledgee in accordance with clause 8.2 below;

•                 ‘Shares’ means the Present Shares and the
Future Shares;

•                 ‘Voting Rights’ means all voting rights
attached to the Shares.

 

2.              Pledge
of the Shares and the other Collateral

 

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

 

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

2.3.                           Subject to
clause 3.2 with respect to dividends and other distributions, the Pledgor, to
the extent such pledge is not included in the Pledge, and to the

 

4

 

fullest extent possible as permitted by
applicable law, hereby pledges the Rights in favour of the Pledgee as security
for the full and prompt payment and discharge of its Secured Obligations and
the Pledgee accepts such pledge.

 

To the extent no valid pledge on the Rights is
created hereunder, the Pledgor, irrevocably and unconditionally undertakes,
immediately on demand by the Pledgee, to pledge in favour of the Pledgee and to
assign to the Pledgee the Rights subject to suclause 3.2. under the same terms
and the same conditions as set forth in this Agreement.

 

2.4.                           The
Pledgor irrevocably and unconditionally undertakes to take such action (including
the execution of documents to be made up in form and substance satisfactory to
the Pledgee) as and when the Pledgee deems necessary in its reasonable opinion
from time to time to create, perfect and maintain a valid and enforceable first
priority right of pledge in favour of the Pledgee with respect to the Shares
(and thereupon the Shares shall become subject to a right of pledge as provided
in this Agreement).

 

2.5.                           Each of
the Rights of Pledge is one and indivisible (één
en ondeelbaar).

Partial fulfilment of the Secured Obligations
shall not extinguish the Rights of Pledge proportionally.

 

2.6.                           The Rights
of Pledge include all accessory rights (afhankelijke
rechten) and all ancillary rights (neven
rechten) attached to the Collateral.

 

3.              Rights
in respect of the Collateral

 

3.1.                           The Voting
Rights are hereby vested to the Pledgee subject to the condition precedent (opschortende voorwaarde) of the Default
Notice being issued by the Pledgee to the Pledgor.

Therefore, provided that no
Default Notice shall have been issued, the Pledgor shall remain entitled and
authorized to exercise the Voting Rights.

Provided that no Default
Notice shall have been issued, the Pledgee shall not have the rights which are
granted to the holders of depositary receipts issued for shares with the
cooperation of a company.

 

3.2.                           The
Pledgor shall be entitled to receive, retain and utilize any and all dividends
and other distributions received in cash or other payment of money in respect
of the Collateral until the Default Notice has been issued.

 

5

 

4.              Voting
rights, dividends and other distributions upon issuance of Default Notice

 

Upon the Default Notice being issued:

 

(i)           the Pledgee shall be
fully entitled, to the exclusion of the Pledgor, to exercise the Voting Rights
pertaining to the Shares;

 

(ii)        all rights of the
Pledgor to receive dividends and other distributions pursuant to the Rights
shall automatically cease, and thereupon the Pledgee shall have the sole right
to receive and hold as Collateral such dividends and other distributions and
such dividends or other distributions must be paid directly to the Pledgee or
as it may direct;

 

(iii)     the Pledgee shall be
entitled to collect any repayment on the Shares (terugbetaling op aandelen) and all liquidation proceeds, if
any, which are to be distributed in respect of the Shares upon dissolution and
liquidation of New Skies or otherwise;

 

(iv)    all payments which
are received by the Pledgor contrary to the provisions of this clause 4 shall
be received on behalf of and for the benefit of the Pledgee, shall be
segregated from the other assets of the Pledgor and shall be immediately paid
over or delivered (with any necessary endorsements) to the Pledgee or its
authorized designee or as the Pledgee may otherwise direct as Collateral in the
exact form as received, to be held by the Pledgee as Collateral and as further
collateral security for the Secured Obligations.

 

This is without
prejudice to any right the Pledgee may have against the person who made the
payment.

 

5.              Representations
and warranties

 

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

 

(i)           the Present Shares
are and each Future Share will be, fully paid-up and the Collateral is free and
clear of any lien, charge, encumbrance with any restricted rights (beperkte rechten), attachment (beslag), or any other right or security
interest whatsoever, other than those created under this Agreement and any encumbrances
permitted under the Credit Agreement;

 

(ii)        the Pledgor holds
full and exclusive title to the Collateral and is authorised (beschikkingsbevoegd) to create a right of
pledge there over;

 

(iii)     the Pledgor has
acquired the Present Shares by deed of purchase and transfer

 

6

 

of shares, executed by deed on the first day of
October two thousand and four before W.H. Bossenbroek, civil-law notary in
Amsterdam;

 

(iv)    no depositary
receipts (certificaten van aandelen)
have been issued for the Present Shares or will be issued for the Future Shares
with the concurrence of New Skies; and

 

(v)       all information
provided by the Pledgor with regard to this deed is correct and complete.

 

6.              Undertakings

 

6.1.                           Except to
the extent permitted pursuant to the Credit Agreement, the Pledgor undertakes
not to waive without the prior written consent of the Pledgee (not to be
unreasonably withheld or delayed), any accessory rights (afhankelijke rechten) or ancillary rights
(nevenrechten) attached to the
Collateral and in general not to perform any acts which result or could result
in a material reduction of the value of the Shares.

 

6.2.                           Except to
the extent permitted pursuant to the Credit Agreement, the Pledgor shall not,
without the prior written consent of the Pledgee (not to be unreasonably
withheld or delayed), transfer or further pledge or otherwise encumber any of
the Shares or agree to a court settlement or an out-of-court settlement (gerechtelijk or buitengerechtelijk akkoord)
in respect of the Shares.

 

6.3.                           The
Pledgor shall, at the Pledgee’s first request, provide in the English language
the Pledgee all information and supporting documentation relating to the
Collateral and allow the Pledgee to inspect its administrative records during
office hours, all of the foregoing to the extent required by the Pledgee
(acting reasonably) for the purpose of this Agreement.

 

6.4.                           The
Pledgor shall forthwith inform the Pledgee of any attachment (beslag) over any part of the Collateral
exceeding an amount of fifty thousand euro (EUR 50,000.-).

 

The Pledgor shall:

 

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

 

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

 

7

 

and

 

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

 

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

 

6.6.                           In
addition and without prejudice to the obligations of the Pledgor pursuant to
clauses 6.3 and 6.4 above, the Pledgor shall notify the Pledgee promptly of any
event or circumstance which could reasonably be of importance to the Pledgee
with a view to the preservation and exercise of the Pledgee’s rights under or
pursuant to this Agreement.

 

7.              Enforcement
and power of attorney

 

7.1.                           Without
prejudice to any other right or remedy available to the Pledgee, the Pledgee,
by issuing the Default Notice upon
the occurrence of an Event of Default to the Pledgor, may declare the
Rights of Pledge, immediately enforceable against the Pledgor without any
(further) notice of default being required and the Pledgee may immediately
exercise in respect of any and all of the Shares any and all of its rights and
powers set out in this Agreement (subject to restrictions following from
mandatory provisions of law) irrespective of whether the Pledgee or any of the
Secured Parties shall have proceeded against or claimed payment from any party
liable for any of the Guaranteed Obligations.

 

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

 

For the avoidance of doubt,
a default in the performance of the Guaranteed Obligations shall have occurred,
inter alia, upon the taking by the Administrative Agent of any of the actions
referred to in the final paragraph of section 7.01 of the Credit
Agreement.

 

8

 

7.3.                           Upon the
issuance of the Default Notice the Pledgee shall be entitled to sell or procure
the sale of the Collateral forthwith, all to the extent permitted by applicable
laws.

 

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

 

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

 

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

 

7.6.                           The
Pledgee shall apply the proceeds of the Collateral and the foreclosure of the
Rights of Pledge or any of them in satisfaction of the Secured Obligations
and/or the Guaranteed Obligations, in each case in accordance with
section 9.23 of the Credit Agreement and applicable provisions of Dutch
law.

 

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

 

7.8.                           The
Pledgor hereby grants to the Pledgee (and any of its delegates) an irrevocable

 

9

 

power of attorney (the “Power of Attorney”) in
accordance with section 3:74 (1) Dutch Civil Code to, following the issuance
of a Default Notice to it and during the continuance of an Event of Default,
perform all acts and execute all documents in order to perfect or implement this
Agreement on its behalf, and to take all actions which are necessary for the
Pledgee (and any of its delegates) to create, maintain, protect, preserve and
exercise its rights under this Agreement (acting reasonably).

 

The parties agree that section 3:68 (Selbsteintritt) Dutch Civil Code will not
apply and to the extent necessary, the Pledgor hereby waives any rights it may
have under section 3:68 Dutch Civil Code, which waiver the Pledgee hereby
accepts.

 

8.              Termination

 

8.1.                           The
Pledgee is entitled to terminate (opzeggen)
in whole or in part any Right of Pledge on all or part of the Collateral and
the contractual arrangements set forth herein.

Notice of termination must be given in writing
by the Pledgee to the Pledgor.

 

8.2.                           The Rights
of Pledge or any of them shall terminate by operation of law when all Secured
Obligations have been unconditionally and irrevocably paid and discharged in
full, no Letters of Credit or Swap Agreements are outstanding and all
Commitments under the Credit Agreement have terminated.

At the request of the Pledgor, the Pledgee
shall confirm such termination in writing and will execute all documents reasonably
requested by the Pledgor in relation thereto (at the expense of the Pledgor).

 

9.              Assignment
and information

 

9.1.                           Subject to
the relevant provisions of the Credit Agreement, the Pledgee (but not, for the
avoidance of doubt, the Pledgor) shall be entitled to assign and/or transfer
all or part of its rights and obligations under this Agreement to any assignee
and/or transferee.

 

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

 

10

 

means of an assumption of debt (schuldoverneming) or transfer of agreement
(contractsoverneming), as the
case may be, hereunder.

 

9.3.                           If the
Pledgee assigns and transfers its rights or obligations, the Pledgor must
promptly ensure that the conditional transfer of voting rights to that person
will be effected in accordance with section 2:198 (3) Dutch Civil Code.

 

9.4.                           The
Pledgee shall be entitled to impart any information concerning the Pledgor to
any successor or proposed successor, subject to the confidentiality provisions
of the Credit Agreement.

 

10.        Records
of pledgee

 

Subject to proof to the contrary, the records
of the Pledgee shall be conclusive evidence (dwingend
bewijs) of the existence and amount of the Secured Obligations and
the Guaranteed Obligations, subject to and in accordance with the terms of the
Credit Agreement.

 

11.        Costs

 

Subject to any provision to the contrary
herein, all costs incurred in connection with the creation of the Rights of
Pledge and the performance by the parties of their rights and obligations under
this Agreement shall be for the account of the persons or entities designated
in section 9.05 of the Credit Agreement and shall be settled in accordance
therewith.

 

12.        Notices

 

Any notices and other communications under or
in connection with this Agreement shall be given in accordance with
section 9.01 of the Credit Agreement.

 

13.        Suspension
of rights and indemnity

 

13.1.                     Throughout
the Security Period, the Pledgor shall not:

(i)                                  receive,
claim or have the benefit of any payment, distribution or security from or on
account of any Loan Party under any indemnity or otherwise or exercise its
rights of defence, suspension, retention, set off or counter claim as against
any Loan Party;

 

(ii)                               take
recourse (verhaal) or take any
other step to enforce any right against any Loan Party or their respective assets;
and

 

(iii)                            claim or
vote in competition with the Pledgee or any of the other Secured Parties in the
bankruptcy, suspension of payment or liquidation or analogous circumstance of
any Loan Party,

except in each case, in such manner and upon
such terms as the Pledgee,

 

11

 

acting reasonably, may require.

 

Any payment, distribution or security received
by the Pledgor contrary to the provisions of this Agreement shall be received
and held by the Pledgor as custodian (bewaarnemer)
(or, if possible under applicable law, on trust) for the benefit of the Pledgee
and the Secured Parties and shall, pending payment or transfer to the Pledgee,
to the extent legally possible, be segregated from the other assets of the
Pledgor and shall be forthwith paid over or transferred to the Pledgee.

If notwithstanding the above the Pledgor
exercises any right of defence, suspension, retention, set off or counter claim
in respect of any amount, it shall forthwith pay an amount equal to such amount
to the Pledgee.

 

13.2.                     The
Pledgee shall not be liable to the Pledgor under or pursuant to the Guarantee
except  for its
wilful misconduct (opzet) or
gross negligence (grove schuld).

 

14.        Limitation,
waiver

 

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

 

15.        Security
interest absolute

 

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

 

(i)           any change in the
time, manner or place of payment of the Guaranteed Obligations and/or the
Secured Obligations or any change of or amendment to any other Loan Document
and any other document related thereto, or any other agreement or instrument
relating to any of them; or

 

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

 

16.        Amendment
of this agreement

 

This Agreement may only be amended by a written
agreement between the Pledgor and the Pledgee (with the consent of the Required Secured
Parties), to the extent required by Dutch law, executed before a Dutch civil-law
notary.

 

12

 

17.         Governing
law and jurisdiction

 

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

 

17.2.                     The
Pledgor consents to the exclusive jurisdiction of the courts of Amsterdam, the
Netherlands.

 

The Pledgor hereby
waives any objection that it may now or hereafter have to the jurisdiction of
such courts, which waiver the Pledgee hereby accepts.  This clause is for the benefit of the Pledgee
only and shall not limit its right to bring proceedings against the Pledgor in
connection with this Agreement or any other Loan Document in any other court of
competent jurisdiction or concurrently in more than one jurisdiction.

 

18.        Severability
of provisions

 

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

 

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

 

19.        Remedies
and prevalence

 

19.1.                     The rights
and remedies of the Pledgee herein, and the obligations, representations and
warranties of the Pledgor herein, are cumulative and are not exclusive of any
rights or remedies of the Pledgee, or obligations, representations or warranties
of the Pledgor, conferred or imposed by law, the Credit Agreement, the
Guarantee or any other Loan Document.

 

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

 

20.        Regulatory
Matters

 

20.1                        Notwithstanding
anything to the contrary contained in this Agreement or any of the other
Security Documents, the rights of the Collateral Agent and the

 

13

 

other Secured Parties
hereunder and under the other Security Documents are subject to all applicable
rules and regulations of the FCC and other Governmental Authorities with
jurisdiction over Parent and its subsidiaries.  Without limiting the foregoing, (i) the
Collateral Agent will not take any action (or authorize any other party to take
any action on its behalf) which would constitute or result in an
assignment or change of control of any governmental permits, licenses, or other
authorizations, including without limitation those issued by the FCC, now held
by or to be issued to Parent or any of its subsidiaries which would require
prior notice to or approval from any Governmental Authority, or otherwise take
action hereunder which would require prior notice to or approval from any
Governmental Authority, in each case without first providing such notice
or obtaining such prior approval of the relevant Governmental Authorities;
(ii) voting rights with respect to any Collateral consisting of pledged
capital stock will remain with Parent upon and after the issuance of a Default
Notice unless and until any required prior approvals of the FCC or other
Governmental Authority shall have been obtained; (iii) upon and after the
issuance of a Default Notice, if required by applicable law, any foreclosure by
the Collateral Agent upon Collateral consisting of pledged capital stock shall
be effected either through public auction or a private arms-length sale; and
(iv) prior to the exercise of voting rights by any purchaser of any Collateral
consisting of pledged capital stock at a private or public sale, the prior
consent of the FCC or applicable Governmental Authorities shall have been
obtained.

 

20.2                        Upon and
after the issuance of a Default Notice, the Parent shall take any action which
the Collateral Agent may reasonably request in the exercise of its rights and
remedies under this Agreement in order to transfer or assign the Collateral to
the Collateral Agent or to such one or more third parties as the Collateral
Agent may designate, or to a combination of the foregoing.

 

To enforce the provisions of
this clause 20, upon and after the issuance of a Default Notice, the Pledgee is
empowered to seek from the FCC and any other Governmental Authority, to the
extent required, consent to or approval of any involuntary assignment or
transfer of control of any entity whose Collateral is subject to this Agreement
for the purpose of seeking a bona fide purchaser to whom the Collateral will be
assigned and control will ultimately

 

14

 

be transferred.

 

Parent agrees to cooperate
with any such purchaser and with the Collateral Agent in the preparation,
execution and filing of any applications and other documents and providing any
information that may be necessary or helpful in obtaining the FCC’s or such
other Governmental Authority’s consent to the assignment to such purchaser of
the Collateral.

 

Parent hereby agrees to
consent to any such an involuntary transfer of control upon the request of the
Collateral Agent after the issuance of a Default Notice and, without limiting
any rights of the Collateral Agent under this Agreement, to authorize the
Collateral Agent to nominate a trustee or receiver to assume control of the
Collateral, subject only to required judicial, FCC or other consent required by
Governmental Authorities, in order to effectuate the transactions contemplated
in this clause 20.

 

Such trustee or receiver
shall have all the rights and powers as provided to it by law or court order,
or to the Collateral Agent under this Agreement.

 

Parent shall cooperate fully
in obtaining the consent of the FCC and the approval or consent of each other
Governmental Authority required to effectuate the foregoing.

 

20.3                        Upon or
after the occurrence of a Default Notice, Parent shall use its best efforts to
assist in obtaining consent or approval of the FCC and any other Governmental
Authority, if required, for any action or transactions contemplated by this
Agreement, including, without limitation, the preparation, execution and filing
with the FCC of the transferor’s or assignor’s portion of any application or
applications for consent to the transfer of control or assignment necessary or
appropriate under the FCC’s rules and regulations for approval of the transfer
or assignment of any portion of the Collateral.

 

20.4                        Parent
hereby acknowledges and agrees that the Collateral is a unique asset and that a
violation of Parent’s covenant to cooperate with respect to any regulatory
consents would result in irreparable harm to the Collateral Agent for which
monetary damages are not readily ascertainable.

 

Parent further agrees that,
because of the unique nature of its undertaking in this subclause 4, the same
may be specifically enforced, and it hereby waives, and agrees to waive, any
claim or defense that the Collateral Agent would have an adequate remedy at law
for the breach of this undertaking.

 

15

 

20.5                        Without
limiting the obligations of Parent hereunder in any respect, Parent further
agrees that if Parent, upon or after the issuance of a Default Notice, should
fail or refuse to execute any application or other document necessary or appropriate
to obtain any governmental consent necessary or appropriate for the exercise of
any right of the Collateral Agent hereunder, Parent agrees, to the extent
consistent with applicable law, that such application or other document may be
executed on Parent’s behalf by the clerk of any court or other forum in any
competent jurisdiction without notice to the Parent.

 

21.        Final
Provisions

 

21.1                        With due
observance of article 15 paragraph 4 of the articles of association of New
Skies, the Pledgor, having given the members of the Management Board of New
Skies the opportunity to cast their advisory vote, as holder of all of the
shares in the share capital of New Skies herewith resolves, without holding a
meeting of shareholders, to approve this Agreement including, without
limitation, the Rights of Pledge and the transfer of the Voting Rights on the
Shares subject to the condition precedent
(opschortende voorwaarde) of the issuance of the Default Notice.

 

21.2                        New Skies
hereby acknowledges the Pledge on the Present Shares.

 

21.3.                     Regulation Board of the Royal Notarial Regulatory Body (Verordening Koninklijke Notariële Beroepsorganisatie)

 

The Pledgor and New Skies
declare that they are aware of the fact that Paul Hubertus Nicolaas Quist,
civil-law notary in Amsterdam, is one of the partners of the law firm of Stibbe
N.V. in Amsterdam, which acts as the external legal advisor of the Pledgee.

 

With reference to the
provisions of articles 19, 20, 21 and 22 of the ‘Code of Conduct (Verordening Beroeps- en Gedragsregels)’ as
determined by the Board of the Royal Notarial Regulatory Body (Koninklijke Notariële Beroepsorganisatie),
the Pledgor and the Companies explicitly declare that they consent to the fact
that the Pledgee will be assisted by Stibbe in all cases connected with this
deed and all potential conflicts arising therefrom

 

This deed was executed today
in Amsterdam.

 

The substance of this deed
was stated and explained to the appearing person.

 

The appearing person
declared not to require a full reading of the deed, to have taken note of the
contents of this deed and to consent to it.

 

16

 

Subsequently, this deed was
read out in a limited form, and immediately thereafter signed by the appearing
person and myself, civil-law notary, at five hours seven minutes post meridiem.
(signed): M.M. Hemmers, I.J.C. van straten, Paul Quist

 

17

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