Document:

Exhibit 10.2

 

NEW SKIES
SATELLITES HOLDINGS LTD.

2005 STOCK INCENTIVE PLAN

 

1.                                       Purpose
of the Plan

 

The purpose of the Plan (as defined below) is
to aid the Company (as defined below) and its Affiliates (as defined below) in
recruiting and retaining employees, directors or consultants of outstanding
ability and to motivate such employees, directors or consultants to exert their
best efforts on behalf of the Company and its Affiliates by providing
incentives through the granting of Awards (as defined below).  The Company expects that it will benefit from
the added interest which such employees, directors or consultants will have in
the welfare of the Company as a result of their proprietary interest in the
Company’s success.

 

2.                                       Definitions

 

The following capitalized terms used in the
Plan have the respective meanings set forth in this Section:

 

(a) Affiliate:  With respect to any Person, any other Person,
directly or indirectly, controlling, controlled by or under common control with
such Person or any other Person designated by the Committee in which any Person
has an interest.

 

(b) Award:  Any Option, Stock Appreciation Right, or
Other Stock-Based Award granted pursuant to the Plan.

 

(c) Award Agreement:  Any written agreement, contract, or other
instrument or document evidencing any Award, which may, but need not, be
executed or acknowledged by a Participant.

 

(d) Blackstone:  Blackstone Capital Partners (Cayman) IV L.P.,
Blackstone Capital Partners (Cayman) IV-A L.P., Blackstone Family Investment
Partnership (Cayman) IV-A L.P., Blackstone NSS Communications Partners (Cayman)
L.P. and Blackstone Family Communications Partnership (Cayman) L.P.

 

(e) Board:  The Board of Directors of the Company.

 

(f) Change in Control:  (i) the sale or disposition, in one or a
series of related transactions, of all or substantially all of the assets of
the Company to any “person” or “group” (as such terms are defined in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than
Blackstone or its affiliates; (ii) any person or group, other than
Blackstone or its affiliates, is or becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly,
of more than 50% of the total voting power of the voting stock of the Company,
including by way of merger, amalgamation, consolidation or otherwise and
Blackstone ceases to control the Board; or (iii) during any consecutive
two-year period, individuals who at the beginning of such period constituted
the Board (together with any new directors whose election by the Board or whose
nomination for election by the shareholders of the Company was approved by a
vote of a majority of the directors then still in office who were

 

 

either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board then in office

 

(g) Code:  The Internal Revenue Code of 1986, as
amended, or any successor thereto.

 

(h) Committee:  A committee of the Board designated by the
Board.

 

(i) Company:  New Skies Satellites Holdings Ltd., an
exempted company registered in Bermuda.

 

(j) Effective Date:  The date the Board adopts the Plan.

 

(k) Employment: (i) a Participant’s
employment if the Participant is an employee of the Company or any of its
Affiliates, (ii) a Participant’s services as a consultant, if the
Participant is a consultant to the Company or any of its Affiliates and (iii) a
Participant’s services as an non-employee director, if the Participant is a non-employee
member of the Board or the board of directors of an Affiliate; provided however
that unless otherwise determined by the Committee, a change in a Participant’s
status from employee to non-employee (other than a director of the Company or
an Affiliate) shall constitute a termination of employment hereunder.

 

(l) Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder, or any
successor statute thereto.

 

(m) Fair Market Value:  On a given date, (i) if there is a
public market for the Shares on such date, the average of the high and low
closing bid prices of the Shares on such stock exchange on which the Shares are
principally trading on the date in question, or, if there were no sales on such
date, on the closest preceding date on which there were sales of Shares or (ii) if
there is no public market for the Shares on such date, the fair market value of
the Shares as determined in good faith by the Board.

 

(n) ISO:  An Option that is also an incentive stock
option granted pursuant to Section 6(d) of the Plan.

 

(o) Option:  A stock option granted pursuant to Section 6
of the Plan.

 

(p) Option Price:  The purchase price per Share of an Option, as
determined pursuant to Section 6(a) of the Plan.

 

(q) Other Stock-Based Award:  Any award granted under Section 8 of the
Plan.

 

(r) Participant:  An employee, director or consultant of the
Company or its Affiliates who is selected by the Committee to participate in
the Plan.

 

(s) Person:  Any individual, firm, corporation,
partnership, limited liability company, trust, incorporated or unincorporated
association, joint venture, joint stock company, governmental body or other
entity of any kind.

 

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(t) Plan:  New Skies Satellites Holdings Ltd. 2005 Stock
Incentive Plan.

 

(u) Shares:  Shares of common stock of the Company.

 

(v) Stock Appreciation Right:  Any right granted under Section 7 of the
Plan.

 

(w) Subsidiary:  A subsidiary corporation, as defined in Section 424(f) of
the Code.

 

3.                                       Shares
Subject to the Plan

 

The total number of Shares which may be
issued under the Plan is 4,500,000, subject to adjustment pursuant to Section 9
of the Plan.  The issuance of Shares or
the payment of cash upon the exercise of an Award shall reduce the total number
of Shares available under the Plan, as applicable.  Shares which are subject to Awards (or
portion thereof) that terminate or lapse may be granted again under the Plan.

 

4.                                       Administration

 

(a) The Plan shall be administered by
the Committee, which may delegate its duties and powers in whole or in part as
it determines; provided, however, that the Board may, in its sole
discretion, take any action designated to the Committee under this Plan as it
may deem necessary.

 

(b) The Committee shall have the full
power and authority to make, and establish the terms and conditions of, any
Award to any person eligible to be a Participant, consistent with the
provisions of the Plan and to waive any such terms and conditions at any time
(including, without limitation, accelerating or waiving any vesting
conditions).  Awards may, in the
discretion of the Committee, be made under the Plan in assumption of, or in
substitution for, outstanding awards previously granted by the Company or its
Affiliates or a company acquired by the Company or with which the Company
combines.  The number of Shares
underlying such substitute awards shall be counted against the aggregate number
of Shares available for Awards under the Plan.

 

(c) The Committee is authorized to
interpret the Plan, to establish, amend and rescind any rules and
regulations relating to the Plan, and to make any other determinations that it
deems necessary or desirable for the administration of the Plan, and may
delegate such authority, as it deems appropriate.  The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan in the manner
and to the extent the Committee deems necessary or desirable.  Any decision of the Committee in the interpretation
and administration of the Plan, as described herein, shall lie within its sole
and absolute discretion and shall be final, conclusive and binding on all
parties concerned (including, but not limited to, Participants and their
beneficiaries or successors).

 

(d) The Committee shall require payment
of any amount it may determine to be necessary to withhold for federal, state,
local, or other taxes as a result of the exercise, grant or vesting of an
Award.  Unless the Committee specifies
otherwise, the Participant may elect to pay a portion or all of such
withholding taxes by having Shares withheld by the Company with a Fair

 

3

 

Market Value equal to the
minimum statutory withholding rate from any Shares that would have otherwise
been received by the Participant in connection with (i) the exercise of an
Option or Stock Appreciation Right or (ii) the delivery of Shares pursuant
to an Other Stock-Based Award.

 

5.                                       Limitations

 

No Awards may be granted under the Plan after
the tenth anniversary of the Effective Date, but Awards theretofore granted may
extend beyond that date.

 

6.                                       Options

 

Options granted under the Plan shall be, as
determined by the Committee, non-qualified stock options or ISOs for federal
income tax purposes, as evidenced by the related Award Agreements, and shall be
subject to the following terms and conditions as well as the terms and
conditions set forth in the applicable Award Agreement:

 

(a) Option Price.  The Option Price shall be determined by the
Committee, but, with respect to ISOs, shall not be less than 100% of the Fair
Market Value of the Shares on the date an Option is granted.

 

(b) Exercisability.  Options granted under the Plan shall be
exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.

 

(c) Exercise of Options.  Except as otherwise provided in the Plan or
in an Award Agreement, an Option may be exercised for all, or from time to time
any part, of the Shares for which it is then exercisable.  For purposes of this Section 6, the
exercise date of an Option shall be the date a notice of exercise is received
by the Company, together with payment (or to the extent permitted by applicable
law, provision for payment) of the full purchase price in accordance with this Section 6(c).  The purchase price for the Shares as to which
an Option is exercised shall be paid to the Company as designated by the
Committee, pursuant to one or more of the following methods: (i) in cash,
or its equivalent (e.g., by check), (ii) in Shares having a Fair Market
Value equal to the aggregate Option Price for the Shares being purchased to the
Company and satisfying such other requirements as may be imposed by the
Committee; provided that such Shares have been held by the Participant
for no less than six months (or such other period as established from time to
time by the Committee or generally accepted accounting principles); (iii) partly
in cash and partly in such Shares; (iv) by having Shares that would
otherwise have been delivered to the Participant upon exercise of an Option
withheld by the Company; (v) if there is a public market for the Shares at
such time, subject to such rules as may be established by the Committee,
through delivery of irrevocable instructions to a broker to sell the Shares
otherwise deliverable upon the exercise of the Option and to deliver promptly
to the Company an amount equal to the aggregate Option Price for the shares
being purchased or (vi) such other method as approved by the
Committee.  Except as expressly set forth
in an Award Agreement, no Participant shall have any rights to dividends or
other rights of a stockholder with respect to Shares subject to an Option until
the Participant has given written notice of exercise of the Option, paid in
full for such Shares, the Shares are registered in the name of the Participant
in

 

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the Share Register of the
Company and, if applicable, the Participant has satisfied any other conditions
imposed by the Committee pursuant to the Plan.

 

(d) ISOs.  The Committee may grant Options under the
Plan that are intended to be ISOs.  Such
ISOs shall comply with the requirements of Section 422 of the Code.  No ISO may be granted to any Participant who
at the time of such grant is not an employee of the Company or of any of its
Subsidiaries.  In addition, no ISO may be
granted to any Participant who at the time of such grant owns more than 10% of
the total combined voting power of all classes of stock of the Company or of
any of its Subsidiaries, unless (i) the Option Price for such ISO is at
least 110% of the Fair Market Value of a Share on the date the ISO is granted
and (ii) the date on which such ISO terminates is a date not later than
the day preceding the fifth anniversary of the date on which the ISO is
granted.  Any Participant who disposes of
Shares acquired upon the exercise of an ISO either (I) within two years
after the date of grant of such ISO or (II) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition.  All Options granted under the Plan are intended
to be non-qualified stock options, unless the applicable Award Agreement
expressly states that the Option is intended to be an ISO.  If an Option is intended to be an ISO, and if
for any reason such Option (or portion thereof) shall not qualify as an ISO,
then, to the extent of such nonqualification, such Option (or portion thereof)
shall be regarded as a non-qualified stock option granted under the Plan; provided
that such Option (or portion thereof) otherwise complies with the Plan’s
requirements relating to non-qualified stock options.  In no event shall any member of the
Committee, the Company or any of its Affiliates (or their respective employees,
officers or directors) have any liability to any Participant (or any other
Person) due to the failure of an Option to qualify for any reason as an ISO.

 

(e) Attestation.  Wherever in this Plan or any Award Agreement
a Participant is permitted to pay the Option Price or taxes relating to the
exercise of an Option by delivering Shares, the Participant may, subject to
procedures satisfactory to the Committee, satisfy such delivery requirement by
presenting proof of beneficial ownership of such Shares, in which case the
Company shall treat the Option as exercised without further payment and shall
withhold such number of Shares from the Shares acquired by the exercise of the
Option.

 

7.                                       Stock
Appreciation Rights

 

(a) Grants.  The Committee may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation
Right in connection with an Option, or a portion thereof.  A Stock Appreciation Right granted pursuant
to clause (ii) of the preceding sentence (A) may be granted at
the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of
Shares covered by an Option (or such lesser number of Shares as the Committee
may determine) and (C) shall be subject to the same terms and conditions
as such Option except for such additional limitations as are contemplated by
this Section 7 (or such additional limitations as may be included in an
Award agreement).

 

(b) Terms.  The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the Fair Market Value of a Share on the
date the Stock Appreciation Right is granted; provided, however,

 

5

 

that notwithstanding the
foregoing in the case of a Stock Appreciation Right granted in conjunction with
an Option, or a portion thereof, the exercise price may not be less than the
Option Price of the related Option.  Each
Stock Appreciation Right granted independent of an Option shall entitle a
Participant upon exercise to an amount equal to (i) the excess of (A) the
Fair Market Value on the exercise date of one Share over (B) the exercise
price per Share, times (ii) the number of Shares covered by the Stock
Appreciation Right.  Each Stock
Appreciation Right granted in conjunction with an Option, or a portion thereof,
shall entitle a Participant to surrender to the Company the unexercised Option,
or any portion thereof, and to receive from the Company in exchange therefor an
amount equal to (i) the excess of (A) the Fair Market Value on the
exercise date of one Share over (B) the Option Price per Share, times (ii) the
number of Shares covered by the Option, or portion thereof, which is
surrendered.  Payment shall be made in
Shares or in cash, or partly in Shares and partly in cash (any such Shares valued
at such Fair Market Value), all as shall be determined by the Committee.  Stock Appreciation Rights may be exercised
from time to time upon actual receipt by the Company of written notice of
exercise stating the number of Shares with respect to which the Stock
Appreciation Right is being exercised. 
The date a notice of exercise is received by the Company shall be the
exercise date.  No fractional Shares will
be issued in payment for Stock Appreciation Rights, but instead cash will be
paid for a fraction or, if the Committee should so determine, the number of
Shares will be rounded downward to the next whole Share.

 

(c) Limitations.  The Committee may impose, in its discretion,
such conditions upon the exercisability or transferability of Stock Appreciation
Rights as it may deem fit.

 

8.                                       Other
Stock-Based Awards.

 

The Committee, in its sole discretion, may
grant the right to purchase Shares, Awards of Shares, Awards of restricted
Shares, Awards of phantom stock units and other Awards that are valued in whole
or in part by reference to, or are otherwise based on the Fair Market Value of,
Shares (“Other Stock-Based Awards”). 
Such Other Stock-Based Awards shall be in such form, and dependent on
such conditions, as the Committee shall determine, including, without
limitation, the right to receive one or more Shares (or the equivalent cash
value of such Shares) upon the completion of a specified period of service, the
occurrence of an event and/or the attainment of performance objectives.  Other Stock-Based Awards may be granted alone
or in addition to any other Awards granted under the Plan.  Subject to the provisions of the Plan, the
Committee shall determine: (a) the number of Shares to be awarded under
(or otherwise related to) such Other Stock-Based Awards; (b) whether such
Other Stock-Based Awards shall be settled in cash, Shares or a combination of
cash and Shares; and (c) all other terms and conditions of such Other
Stock-Based Awards (including, without limitation, the vesting provisions
thereof and provisions ensuring that all Shares so awarded and issued shall be
fully paid and non-assessable).

 

9.                                       Adjustments
Upon Certain Events

 

Notwithstanding any other provisions in the
Plan to the contrary, the following provisions shall apply to all Awards granted
under the Plan:

 

6

 

(a) Generally.  In the event of any change in the outstanding
Shares after the Effective Date by reason of any Share dividend or split,
amalgamation, reorganization, recapitalization, merger, consolidation,
spin-off, combination or transaction or exchange of Shares or other corporate
exchange, or any distribution to shareholders of Shares (other than regular
cash dividends) or any transaction similar to the foregoing, the Committee in its
sole discretion and without liability to any person may make such substitution
or adjustment, if any, as it deems to be equitable (consistent with Section 409A
of the Code), as to (i) the number or kind of Shares or other securities
issued or reserved for issuance pursuant to the Plan or pursuant to outstanding
Awards, (ii) the Option Price or exercise price of any Stock Appreciation
Right and/or (iii) any other affected terms of such Awards.

 

(b) Change in Control.  In the event of a Change in Control after the
Effective Date, the Committee may, in its sole discretion, provide for the (i) termination
of an Award upon the consummation of the Change in Control, but only if such
Award has vested and been paid out, (ii) acceleration of all or any
portion of an Award, (iii) payment of an amount (in cash or, in the
discretion of the Committee, in the form of consideration paid to shareholders
of the Company in connection with such Change in Control) in exchange for the
cancellation of an Award, which, in the case of Options and Stock Appreciation
Rights, may equal the excess, if any, of the Fair Market Value of the Shares
subject to such Options or Stock Appreciation Rights over the aggregate Option
Price or grant price of such Option or Stock Appreciation Rights, and/or (iv) issuance
of substitute Awards that will substantially preserve the otherwise applicable
terms of any affected Awards previously granted hereunder.

 

10.                                 No
Right to Employment or Awards

 

The granting of an Award under the Plan shall
impose no obligation on the Company or any of its Affiliates to continue the
Employment of a Participant and shall not lessen or affect the Company’s or its
Affiliates’ rights to terminate the Employment of such Participant.  No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants or holders or beneficiaries of Awards.  The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant (whether or not such Participants are
similarly situated).

 

11.                                 Successors
and Assigns

 

The Plan shall be binding on all successors
and assigns of the Company and a Participant, including without limitation, the
estate of such Participant and the executor, administrator or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.

 

12.                                 Nontransferability
of Awards

 

Unless otherwise determined by the Committee,
an Award shall not be transferable or assignable by the Participant other than
by will or by the laws of descent and distribution.  An Award exercisable after the death of a
Participant may be exercised by the legatees, personal representatives or
distributees of the Participant.

 

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13.                                 Awards
Subject to the Plan.

 

In the event of a conflict between any term
or provision contained in the Plan and a term or provision in any Award
Agreement, the applicable terms and provisions of the Plan will govern and
prevail.

 

14.                                 Severability.

 

If any provision of the Plan or any Award is,
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person or Award and the remainder of the
Plan and any such Award shall remain in full force and effect.

 

15.                                 Amendments
or Termination

 

(a) Amendments or Termination of the
Plan.  The Committee may amend, alter
or discontinue the Plan, but no amendment, alteration or discontinuation shall
be made, without the written consent of a Participant, if such action would
diminish any of the rights of the Participant under any Award theretofore
granted to such Participant under the Plan; provided, however,
that the Committee may amend the Plan in such manner as it deems necessary to
permit the granting of Awards meeting the requirements of the Code or other
applicable laws.

 

(b) Amendments to Awards.  The Committee may waive any conditions or
rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively; provided
that no waiver, amendment, alteration, suspension, discontinuation,
cancellation or termination shall impair the rights of any Participant or any
holder or beneficiary of any Award theretofore granted without the consent of
the affected Participant, holder or beneficiary.

 

16.                                 Other
Benefit Plans

 

All Awards shall constitute a special
incentive payment to the Participant and shall not be taken into account in
computing the amount of salary or compensation of the Participant for the
purpose of determining any benefits under any pension, retirement,
profit-sharing, bonus, life insurance or other benefit plan of the Company or
under any agreement between the Company and the Participant, unless such plan
or agreement specifically provides otherwise.

 

17.                                 Choice
of Law

 

The Plan shall be governed by and construed
in accordance with the laws of the State of Delaware without regard to
conflicts of laws.

 

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18.                                 Effectiveness
of the Plan

 

The Plan shall be effective as of the
Effective Date.

 

9Exhibit 10.3

 

FORM OF

 

NEW SKIES SATELLITES HOLDINGS LTD.

2005 STOCK INCENTIVE PLAN

 

NONQUALIFIED STOCK OPTION AGREEMENT

 

THIS AGREEMENT, is made effective as of
[             ],
2005 (the “Date of Grant”)
at [                                                                                 ]
(the “Time of Grant”),
between New Skies Satellites Holdings Ltd. (the “Company”) and
[                     ]
(the “Participant”).

 

R  E  C  I  T  A
L  S:

 

WHEREAS, the Company has adopted the Plan (as
defined below), the terms of which are hereby incorporated by reference and
made a part of this Agreement; and

 

WHEREAS, the Committee has determined that it
would be in the best interests of the Company and its stockholders to grant the
Options provided for herein to the Participant pursuant to the Plan and the
terms set forth herein;

 

NOW, THEREFORE, in consideration of the
mutual covenants hereinafter set forth, the parties agree as follows:

 

1.                                       Definitions.  Whenever
the following terms are used in this Agreement, they shall have the meanings
set forth below.  Capitalized terms not
otherwise defined herein shall have the same meanings as in the Plan.

 

(a)                                  Blackstone
Percentage:  the quotient of (i) the
number of Shares Blackstone sells in connection with a Liquidity Event divided
by (ii) the total number of Shares Blackstone holds immediately
prior to such Liquidity Event.  In the
case of a Distribution Event, the Blackstone Percentage shall equal the
quotient of (x) the aggregate amount to be received by Blackstone in
connection with such Distribution Event divided  by (y) the
Fair Market Value of the Shares of the Company held by Blackstone immediately
prior to such Distribution Event.

 

(b)                                 Cause:  “Cause” or “Urgent Cause” as defined in an
employment agreement between the Company or its subsidiaries and the
Participant or, if not defined therein or if there is no such agreement, “Cause”
means (i) Participant’s continued failure substantially to perform
Participant’s duties (other than as a result of total or partial incapacity due
to physical or mental illness) for a period of ten days following written notice
by the Company to Participant of such failure, (ii) dishonesty in the
performance of Participant’s duties, (iii) an act or acts on Participant’s
part constituting (x) a felony under the laws of the United States or any
state thereof or (y) a misdemeanor involving moral turpitude, (iv) Participant’s
willful malfeasance or willful misconduct in connection with Participant’s
duties or any act or omission which is injurious to the financial condition or
business reputation of the Company or any of its subsidiaries or

 

 

affiliates or (v) the
Participant’s breach of the provisions of any confidentiality, noncompetition
or nonsolicitation to which the Participant is subject.

 

(c)                                  Distribution
Event:  the record date of any
dividend or distribution made by the Company to Blackstone (subject to Section 5(b)),
other than any dividend or distribution by the Company with a record date prior
to, or as of, an IPO.

 

(d)                                 Exit
Performance Option:  An Option to
purchase the number of Shares set forth on Schedule A attached
hereto.

 

(e)                                  Expiration
Date:  The tenth anniversary of the
Date of Grant.

 

(f)                                    Good
Reason:  “Good Reason” as defined in
an employment agreement between the Company or its subsidiaries and the
Participant or, if not defined therein or if there is no such agreement, “Good
Reason” means (i) the failure of the Company to pay or cause to be paid
Participant’s base salary or annual bonus, when due or (ii) any
substantial and sustained diminution in Participant’s authority or
responsibilities; provided that either of the events described in
clauses (i) and (ii) shall constitute Good Reason only if the
Company fails to cure such event within 30 days after receipt from
Participant of written notice of the event which constitutes Good Reason; provided,
further, that “Good Reason” shall cease to exist for an event on the 60th day
following the later of its occurrence or Executive’s knowledge thereof, unless
Participant has given the Company written notice thereof prior to such date.

 

(g)                                 IPO:  An underwritten public offering of Shares
pursuant to an effective registration statement under the Securities Act of
1933, as amended, other than pursuant to a registration statement on Form S-4
or Form S-8 or other limited purpose form.

 

(h)                                 Liquidity
Event:  (i) the sale by
Blackstone of all or any portion of its Shares to another entity (other than an
Affiliate of Blackstone) in which Blackstone receives cash or marketable
securities or (ii) any Distribution Event.

 

(i)                                     Operating
Performance Option:  An Option to
purchase the number of Shares set forth on Schedule A attached
hereto.

 

(j)                                     Options:  Collectively, the Time Option, the
Performance Options, the Tier I IPO Vested Option and the Tier II Vested Option
to purchase Shares granted under this Agreement.

 

(k)                                  Performance
Options:  Collectively, the Operating
Performance Option and the Exit Performance Option.

 

(l)                                     Plan:  The New Skies Satellites Holdings Ltd. 2005
Stock Incentive Plan, as from time to time amended.

 

(m)                               Tier
I IPO Vested Option:  An Option to
purchase the number of Shares set forth on Schedule A attached
hereto.

 

2

 

(n)                                 Tier
II Vested Option:  An Option to
purchase the number of Shares set forth on Schedule A attached
hereto.

 

(o)                                 Time
Option:  An Option to purchase the
number of Shares set forth on Schedule A attached hereto.

 

(p)                                 Vested
Portion:  At any time, the portion of
an Option which has become vested, as described in Section 3 of this
Agreement; provided, that an Option whose aggregate Option Price is not
paid by the withholding of Shares shall vest with respect to whole Shares only,
with partial Shares being rounded up to the nearest whole integer.

 

2.                                       Grant of Options.  The
Company hereby grants to the Participant the right and option to purchase, on
the terms and conditions hereinafter set forth, the number of Shares subject to
the Time Option, the Tier I IPO Vested Option, the Tier II Vested
Option, the Operating Performance Option and the Exit Performance Option set
forth on Schedule A attached hereto, subject to adjustment as set
forth in the Plan and this Agreement. 
The exercise price of the Shares subject to the Time Option, the
Operating Performance Option and the Exit Performance Option shall be $[      ]
per Share and the exercise price subject to the Tier I IPO Vested Option
and the Tier II Vested Option shall be $[     ] per
Share, subject to adjustment as set forth in the Plan and this Agreement (the “Option Price”).  The Options are intended to be nonqualified
stock options, and are not intended to be treated as ISOs that comply with Section 422
of the Code.

 

3.                                       Vesting of the Options.

 

(a)                                  Vesting
of the Time Option.

 

(i)                                     In
General.  Subject to the Participant’s
continued Employment with the Company and its Affiliates, the Time Option shall
vest and become exercisable on each of the first four anniversaries of November 2,
2004 (each anniversary, a “Time Vesting Date”)
with respect to the number of Shares subject to the Time Option equal to the
number of Shares subject to the Time Option immediately prior to each such Time
Vesting Date divided  by the number of Time Vesting Dates
remaining, including such Time Vesting Date.

 

(ii)                                  Change
in Control.  Notwithstanding the
foregoing, upon a Change in Control, the Time Option shall, to the extent not
previously cancelled or expired, immediately become one hundred
percent (100%) vested and exercisable.

 

(b)                                 Vesting
of the Performance Options.

 

(i)                                     In
General.  Subject to the Participant’s
continued Employment with the Company and its Affiliates, the Performance
Options, to the extent not previously canceled or expired, shall become fully
vested and exercisable with respect to one hundred percent (100%) of the
Shares subject to the Performance Options on November 2, 2011 if on such
date the annually compounded internal rate of return to Blackstone is at least
twenty percent (20%) (determined based on the Fair Market Value

 

3

 

of the Shares
on, and all dividends and other proceeds paid upon such Shares through, such
date).

 

(ii)                                  Acceleration
Events.

 

(A)                              upon
any Liquidity Event that generates an annually compounded internal rate of
return to Blackstone of at least twenty percent (20)% (determined based on
the Fair Market Value of the Shares on, and all dividends and other proceeds
upon such Shares (including proceeds to be received in the Liquidity Event)
through such Liquidity Event), in which case the Performance Options shall vest
immediately prior to such Liquidity Event as follows:  (a) the number of Shares subject to the
Exit Performance Option outstanding on the date of such Liquidity Event multiplied
by the Blackstone Percentage and (b) the number of Shares subject
to the Operating Performance Option immediately prior to such Liquidity Event multiplied
by the Blackstone Percentage; and/or

 

(B)                                with
respect to the Operating Performance Option, on the February 15 following
the attainment of annual performance targets established by the Board for each
calendar year beginning with calendar year 2005 and ending with calendar year
2008 (the “Performance Period”), as
determined by the Board, a number of 
Shares subject to the Operating Performance Option shall vest and become
exercisable equal to the number of Shares subject to the Operating Performance Option
outstanding immediately prior to the vesting date divided  by the
number of years remaining, including such calendar year, in the Performance
Period.

 

(iii)                               Catch-Up.  Notwithstanding the foregoing and subject to
the Participant’s continued Employment with the Company and its Affiliates, if
the annual performance targets for a calendar year during the Performance
Period are not achieved (a “Missed Year”),
the Board shall provide that the Shares subject to the Operating Performance
Option that were eligible to vest and become exercisable in such Missed Year
shall vest and become exercisable on the February 15 following the end of
the subsequent calendar year through and including calendar year 2008 that the
cumulative annual performance targets for the Missed Year and the subsequent
calendar year are achieved.

 

(iv)                              Change
in Control.  Notwithstanding the
foregoing, upon a Change in Control, the Performance Options shall, to the
extent not previously cancelled or expired, immediately become one hundred percent (100%)
vested and exercisable, if the annually compounded internal rate of return to
Blackstone is at least twenty percent (20%) as of such Change in Control
(determined based on the Fair Market Value of the Shares on, and all dividends and
other proceeds paid upon such Shares through, the date of such Change in
Control).

 

(v)                                 Termination
of Performance Options.  If, in
connection with a Change in Control or otherwise, Blackstone disposes of all
its equity interest in the Company, then the Performance Options (other than
the Operating Performance Options if such Change in Control or disposition
occurs prior to December 31, 2009) that do not

 

4

 

become vested
and exercisable in connection with such Change in Control or other disposition
shall expire and be immediately canceled by the Company without consideration
as of the consummation of such Change in Control or other disposition.

 

(c)                                  Vesting
of the Tier I IPO Vested Option and Tier II Vested Option.  Subject to the Participant’s continued
Employment with the Company and its Affiliates, the Tier I IPO Vested Option
and the Tier II Vested Option shall vest and become exercisable with respect to
one hundred percent (100%) of the Shares subject to such Options on the
Date of Grant at the Time of Grant.

 

(d)                                 Termination
of Employment.

 

(i)                                     General.  Other than as described in Sections 3(d)(ii) and
(iii), if the Participant’s Employment with the Company and its Affiliates
terminates for any reason, the Option, to the extent not then vested and
exercisable, shall expire and be immediately canceled by the Company without
consideration.

 

(ii)                                  Time
Option.  Notwithstanding Section 3(a) and
3(d)(i), (x) in the event that the Participant’s Employment is terminated (A) by
the Company without Cause or (B) by the Participant with Good Reason, to
the extent not previously cancelled or expired, the Time Option shall
immediately become one hundred percent (100%) vested and exercisable or
(y) in the event that the Participant’s Employment is terminated due to
the Participant’s death or Disability, the Time Option shall immediately become
vested and exercisable as to the Shares subject to the Time Option that would
have otherwise vested and become exercisable in the calendar year in which such
termination of Employment occurs.

 

(iii)                               Performance
Options.

 

(A)                              Notwithstanding
Section 3(b) and 3(d)(i), (x) in the event that (a) the
Participant’s Employment is terminated (1) by the Company without Cause or
(2) by the Participant with Good Reason and (b) the annual
performance targets are achieved with respect to the Operating Performance
Option for the year of such termination of Employment, to the extent not
previously cancelled or expired, the Operating Performance Option shall become
vested and exercisable with respect to the Shares subject to the Operating
Performance Option that would have vested and become exercisable upon the
achievement of such annual performance targets as if the Participant’s
Employment continued through the February 15 following the end of such
year and (y) in the event that (a) the Participant’s Employment is
terminated (1) by the Company without Cause or (2) by the Participant
with Good Reason and (b) Liquidity Events (other than a Distribution
Event) occurs during the twelve (12) months following such termination of
Employment, then the Performance Options shall vest and become exercisable as
to the Shares that would have vested and become exercisable had the Participant
remained employed through such Liquidity Events.

 

5

 

Notwithstanding Section 3(b) and
3(d)(i), (x) in the event that (a) the Participant’s Employment is
terminated (A) by the Company without Cause or (B) by the Participant
with Good Reason and (b) the annual performance targets are achieved with
respect to the Operating Performance Option for the year of such termination of
Employment, to the extent not previously cancelled or expired, (1) the
Operating Performance Option shall become vested and exercisable with respect
to (a) the Shares subject to the Operating Performance Option that were
eligible to vest and become exercisable for the calendar year of such
termination of Employment and (b) the Shares subject to the Operating
Performance Option that were eligible to vest and become exercisable in the
year following such termination of Employment and (2) the Exit Performance
Option shall be deemed to be vested and exercisable with respect to a number of
Shares equal to the number of Shares subject to the Exit Performance Option multiplied
by a fraction (not to exceed one),
the numerator of which is the number of calendar years that have lapsed since
the Date of Grant plus two (2) and the denominator of which is
seven (7) and (y) in the event that (a) the Participant’s
Employment is terminated (1) by the Company without Cause or (2) by
the Participant with Good Reason and (b) Liquidity Events (other than a
Distribution Event) occur during the twenty-four (24) months following
such termination of Employment, then the Performance Options shall vest and
become exercisable as to the Shares that would have vested and become
exercisable had the Participant remained employed through such Liquidity
Events.

 

(B)                                Notwithstanding
Section 3(b) and 3(d)(i), in the event that the Participant’s
Employment is terminated due to the Participant’s death or Disability,
(x) if the annual performance targets are achieved with respect to the
Operating Performance Option for the year of such termination of Employment,
the Operating Performance Option shall become vested and exercisable with
respect to the Shares subject to the Operating Performance Option that would
have vested and become exercisable upon the achievement of such annual
performance targets as if the Participant’s Employment continued through the February 15
following such calendar year and (y) the Exit Performance Option shall be
deemed to be vested and exercisable with respect to a number of Shares equal to
the number of Shares subject to the Exit Performance Option multiplied  by a fraction (not to exceed one), the numerator
of which is the number of full calendar years that have lapsed since the Date
of Grant and the denominator of which is seven (7).

 

4.                                       Exercise of Options.

 

(a)                                  Method
of Exercise.

 

(i)                                     The
Vested Portion of an Option shall be immediately exercised; provided,
that if the Fair Market Value of a Share is less than the Option Price on the
date the Option vests and becomes exercisable, the Vested Portion of the Option
shall be cancelled by the Company without consideration.  Payment of the aggregate Option Price shall
be made by having Shares that would otherwise have been delivered to the
Participant upon exercise of the Option having a Fair Market Value equal to the
aggregate Option Price for the Shares being purchased withheld by the Company; provided,
that, if such exercise is in connection with acceleration of vesting pursuant
to a Distribution Event, then the Fair Market Value of a Share shall include
the distribution payable on a Share in connection with such Distribution Event;
provided, further, that

 

6

 

sixty (60)
days following an IPO, the Participant may elect to pay the aggregate Option
Price (A) in cash, or its equivalent (e.g., a check), (B) by
transferring to the Company Shares having a Fair Market Value equal to the
aggregate Option Price for the Shares being purchased and satisfying such other
requirements as may be imposed by the Committee; provided that such
Shares have been held by the Participant for no less than six (6) months
(or such other period as established from time to time by the Committee or
generally accepted accounting principles), (C) if there is a public market
for the Shares at the time of payment, subject to such rules as may be
established by the Committee, through delivery of irrevocable instructions to a
broker to sell the Shares otherwise deliverable upon the exercise of the Option
and deliver promptly to the Company an amount equal to the aggregate Option
Price or (D) by a combination of (A) and (B) above or such other
method as approved by the Committee.  The
Participant shall have rights to any dividends or other rights of a stockholder
with respect to the Shares subject to an Option at such time as the Participant
has paid in full for such Shares or otherwise completed the exercise
transaction as described in the preceding sentence and, if applicable, has
satisfied any other conditions imposed pursuant to this Agreement.  If the aggregate Option Price is paid by the
withholding of Shares, only whole Shares shall be issued, with partial Shares
being rounded up to the nearest whole integer.

 

(ii)                                  Notwithstanding
any other provision of the Plan or this Agreement to the contrary, absent an
available exemption to registration or qualification, an Option may not be
exercised prior to the completion of any registration or qualification of the
Option or the Shares under applicable state and federal securities or other
laws, or under any ruling or regulation of any governmental body or national
securities exchange that the Committee shall in its sole reasonable discretion
determine to be required by such laws, rulings or regulations.

 

(iii)                               Upon
the Company’s determination that an Option has been validly exercised as to any
of the Shares, the Company shall issue certificates in the Participant’s name
for such Shares.  However, the Company
shall not be liable to the Participant for damages relating to any reasonable
delays in issuing the certificates to the Participant or any loss by the
Participant of the certificates.

 

5.                                       Adjustments.

 

(a)                                  General.  In the event of any change in the outstanding
Shares after the Effective Date by reason of any Share split, reorganization,
recapitalization, merger, consolidation, spin-off, combination or transaction
or exchange of Shares or other corporate exchange, or any transaction similar
to the foregoing, the Committee in its sole discretion and without liability to
any person may make such substitution or adjustment, if any, as it deems to be
equitable, to the Option.

 

(b)                                 Distributions.  Notwithstanding the foregoing, upon a
Distribution Event, the Option, to the extent outstanding after such
Distribution Event, will be adjusted (a “Distribution Event Option
Adjustment”), such that the Option Price for the Option will

 

7

 

become equal to the Option
Price of the Option immediately prior to the Distribution Event divided  by the Dividend Adjustment Amount (as defined
below) and the number of Shares subject to the Option after the Distribution
Event will equal the number of Shares subject to Option immediately prior to
the Distribution Event (excluding Shares that vest and become exercisable as a
result of the Distribution Event), multiplied  by the Dividend Adjustment Amount.  The Dividend Adjustment Amount shall equal
(x) one plus (y) the amount of the distribution paid to
shareholders of the Company divided  by the difference between (A) the value of the Company’s equity
immediately prior to the distribution, as determined by the Board less (B) the
amount of such distribution.  Only for
purposes of adjusting the Option Price pursuant to this Section 5(b), a
dividend from the proceeds of an underwriters’ exercise of its over-allotment
option in connection with an IPO shall be deemed to be a Distribution Event.

 

6.                                       No Right to Continued Employment.  Neither the Plan nor this Agreement shall be
construed as giving the Participant the right to be retained in the employ of,
or in any consulting relationship to, the Company or any Affiliate.  Further, the Company or its Affiliate may at
any time terminate the Participant or discontinue any consulting relationship,
free from any liability or any claim under the Plan or this Agreement, except
as otherwise expressly provided herein.

 

7.                                       Legend on Certificates. 
The certificates representing the Shares purchased by exercise of an
Option shall be subject to such stop transfer orders and other restrictions as
the Committee may determine is required by the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which such Shares are listed, any applicable federal or state laws and the
Company’s Certificate of Incorporation and Bylaws, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

 

8.                                       Transferability. 
Unless otherwise determined by the Committee, an Option may not be
assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by the Participant otherwise than by will or by the laws of descent
and distribution, and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Affiliate; provided that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment,
sale, transfer or encumbrance.  During
the Participant’s lifetime, an Option is exercisable only by the Participant.

 

9.                                       Withholding.  The
Participant may be required to pay to the Company or its Affiliate and the
Company or its Affiliate shall have the right and is hereby authorized to
withhold from any payment due or transfer made under the Option or under the
Plan or from any compensation or other amount owing to a Participant the amount
(in cash, Shares, other securities, other Awards or other property) of any
applicable withholding taxes in respect of the Option, its exercise, or any
payment or transfer under the Option or under the Plan and to take such action
as may be necessary in the option of the Company to satisfy all obligations for
the payment of such taxes.  The
Participant may elect to pay a portion or all of such withholding taxes by
having Shares withheld by the Company with a Fair Market Value equal to the
minimum statutory withholding rate from any Shares that would have otherwise
been received by the Participant in connection with the exercise of the Option;
provided, that, if such

 

8

 

withholding is in connection
with acceleration of vesting pursuant to a Distribution Event, then the Fair
Market Value of a Share shall include the distribution payable on a Share in
connection with such Distribution Event; provided, further, that
until sixty (60) days following an IPO, Participants are required to
satisfy all withholding requirements by the Company withholding Shares
otherwise deliverable upon the exercise of the Option.

 

10.                                 Securities Laws.  Upon
the acquisition of any Shares pursuant to the exercise of an Option, the
Participant will make or enter into such written representations, warranties
and agreements as the Committee may reasonably request in order to comply with
applicable securities laws or with this Agreement.

 

11.                                 Notices.  Any notice
under this Agreement shall be addressed to the Company in care of its General
Counsel, addressed to the principal executive office of the Company and to the
Participant at the address last appearing in the personnel records of the
Company for the Participant or to either party at such other address as either
party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective
upon receipt thereof by the addressee.

 

12.                                 Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without regard to the conflicts of laws provisions thereof.

 

13.                                 Signature in Counterparts. 
This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

9

 

IN WITNESS WHEREOF, this Agreement has been
executed and delivered by the parties hereto.

 

	
   

  	
  NEW SKIES SATELLITES HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Its 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Participant

  
					

 

 

Schedule A

 

The number of
Shares subject to each Option is set forth below:

 

Time Option:

 

Operating
Performance Option:

 

Exit
Performance Option:

 

Tier I IPO Vested
Option:

 

Tier II Vested
Option:

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