Document:

Exhibit 10.28

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Amended
Agreement”) is entered into this 1st day of
November, 2004, by and between NEW SKIES SATELLITES N.V., an entity established
under Dutch law (“New Skies” or the “Employer”) and Michael C.
Schwartz (the “Employee”).

 

WHEREAS the Employer and the Employee have entered into that certain
Employment Agreement on or about August 2003 (the “2003 Agreement”);
and

 

WHEREAS, the Employer and the Employee desire to amend the 2003
Agreement in certain respects and to restate the 2003 Agreement to read in its
entirety as follows.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                      EMPLOYMENT AND PERFORMANCE OF DUTIES

 

(a) New Skies will employ the Employee in the
position of Senior Vice President of Marketing and Corporate Development. The
Employee will report to the CEO or COO (or the functional equivalent thereof).
During the term of this Amended Agreement, the Employee shall perform such
duties as may be requested by New Skies from time to time. These
responsibilities may include, by way of example and without limitation, those
set forth in the attached job description.

 

(b) The Employee shall devote his full
working time, energy and attention to the performance of his duties and
responsibilities and shall diligently and faithfully endeavor to promote the
business and best interests of the Employer. In performing his job duties, the
Employee will comply with New Skies policies, procedures and instructions.

 

(c) The Employee’s normal work location will
be New Skies’ headquarters office in The Hague. The Employee will be employed
on a full-time basis with normal working hours as specified by the Employee’s
manager. The Employer may instruct the Employee to temporarily perform his
duties at another location or on an amended work schedule, or may charge the
Employee temporarily or for longer periods with other duties, in a reasonable
manner and consistent with Employee’s overall duties and level of responsibility.

 

(d) The Employee may not operate, participate
in the management, operation or control of, act as an employee, officer,
consultant, agent or representative of, or provide any services to any entity
or any type of business or service, in each case without New Skies’ prior
written consent. It shall not be a violation of this subsection for the
Employee to (i) act or serve as a director, trustee or committee member of any
civic or charitable organization, or (ii) manage his personal, financial and
legal affairs, and Employer consents to Employee’s serving on the Board of
Directors of Big Buddy Performance, Inc., and SoftVault Systems, Inc.; provided
in each case that such activities,

 

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in New Skies’ judgment, do not interfere with the Employee’s
performance of his duties and responsibilities hereunder.

 

(e) The Employee may not accept from any
third party any gift of any nature arising from or relating to Employee’s
employment, without New Skies’ prior written consent or as permitted under any
written company policy.

 

2.                                      EFFECTIVE
DATE

 

The effective date of this Amended Agreement
is the date hereof (the “Effective Date”). The Employee’s employment commenced
on 1st October 2003.

 

3.                                      COMPENSATION

 

As compensation for the agreements made by
the Employee herein and the performance by the Employee of his obligations
hereunder, during the employment period the Employer shall pay the Employee a
base salary of $277,279 gross per annum (the “Base Salary”), payable in accordance
with Employer’s payroll policies and procedures then in effect. The Base Salary
is inclusive of the “holiday pay” provided for under Dutch law. Compensation
for overtime work is included as part of the Employee’s Base Salary and will
not be separately compensated. The Base Salary may be increased in the future
in New Skies’ absolute discretion. Any such increased Base Salary shall then
become the Base Salary for all purposes hereunder. Payment of the Base Salary
shall be made in US$. Translations to Euro for all purposes hereunder
(including, without limitation, for payroll, withholding and related purposes)
shall be made using the average US$-Euro exchange rate for the three calendar
months prior to the effective date of the 2003 Agreement.

 

4.                                      ANNUAL
BONUS

 

(a) As compensation for the agreements made
by the Employee herein and the performance by the Employee hereunder
(including, without limitation, the performance of annual bonus objectives
established by the Employer), the Employee may be entitled to an annual cash
bonus pursuant to the terms and under the conditions set forth in the New Skies
Annual Bonus Plan, as such Bonus Plan may be amended from time to time. With
respect to each such year, the target cash bonus shall be 40% of the Employee’s
Base Salary for that year, subject to the attainment of certain targets
established by the Employer in good faith for that year (the “Annual Bonus”).
It is agreed that the target 40% bonus level is a target and not a minimum
bonus amount. Except as otherwise provided in Section 6 and Section 7(e), no bonus
shall be payable for any year in which the Employee’s employment is terminated
prior to December 31. The Employer and the Employee agree that the Annual
Bonus for 2004 shall be paid at the target level subject to Section 7(e).

 

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5.                                      TAX-FREE
ALLOWANCE SUBJECT TO 30% RULING

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                                       DURATION OF THE AMENDED AGREEMENT AND TERMINATION

 

(a) This Amended Agreement shall be in force for an indefinite period
of time. Employer and Employee each may terminate this Amended Agreement by providing
at least one month’s prior written notice in a “Notice of Termination” to the
other party hereto in accordance with Section 16 (or such longer notice as
may be required by law). Employer shall be entitled to provide pay in lieu of
notice where permitted by applicable law. No notice shall be required in the
event of a termination for urgent cause (“dringende reden”). For purposes of
this Amended Agreement, a “Notice of Termination” shall mean a notice
which shall indicate the specific termination provision

 

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in this
Amended Agreement relied upon, shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Employee’s
employment under the provision so indicated and shall attach any prior notices
required under this Section 6.

 

(b) Except as provided in Section 6(c), in the event the Employee’s
employment is terminated by or at the initiative of the Employer, other than
for: (i) urgent cause (“dringende
reden”); (ii) due to the Employee’s failure to perform his
job duties; or (iii) due to any breach by the Employee of this Amended
Agreement that is material or is not cured by Employee promptly following
notice from the Employer (including, without limitation, any breach of Sections
1 (Employment and Performance of Duties), 9 (Non-Solicitation and
Non-Competition), or 11 (Confidentiality; Intellectual Property and Ownership
of Work Product), Employer shall pay Employee within a reasonable period of
time a severance payment equal to (a) the Employee’s Base Salary through the
Date of Termination and outstanding business expenses (to the extent not
theretofore paid) and any other amounts due to the Employee but which have not
been paid, (b) any earned but unpaid Annual Bonus in respect of a calendar year
ending prior to or coincident with the Date of Termination, and (c) the greater
of (1) the minimum additional amount required by Dutch law or (2) twelve months’
salary (which shall include the Employee’s Base Salary plus the average Annual
Bonus paid by the Employer to the Employee under Section 4 over the
preceding three-year period; provided, however, that if such three year period
requires that the Annual Bonus for 2003 be used in calculating the average Annual
Bonus, then for purposes of this calculation only the Annual Bonus for 2003
shall be increased on a proportional basis to adjust for the fact that the
Employee only worked for a portion of 2003). In addition, irrespective of the
length of Employee’s employment with the Employer, the Employer shall provide
the repatriation benefits set forth in Section 8 (Repatriation) of the
HQLP attached hereto during the six-month period following Employee’s Date of
Termination. For purposes of this Amended Agreement, “Date of Termination”
shall mean the date on which a Notice of Termination is given or any later date
set forth in such Notice of Termination. The Employer shall have no additional
obligations arising from or relating to the termination of Employee’s employment.

 

(c) Notwithstanding the foregoing, in the event of a termination of the
Employee’s employment within a two year period following the date of a Change
in Control (as defined in Section 7(e)) (1) by the Employer without Cause
or (2) by the Employee for Good Reason (as such terms are defined below), the
Employer shall pay to (or in the case of business expenses pursuant to clause
(i), reimburse) the Employee, or his estate in the event of his death, within
thirty (30) days following the Date of Termination, (i) the Employee’s Base
Salary through the Date of Termination and outstanding business expenses (to
the extent not theretofore paid) and any other amounts due to the Employee but
which have not been paid, (ii) any earned but unpaid Annual Bonus in respect of
a calendar year ending prior to or coincident with the Date of Termination,
(iii) an Annual Bonus equal to the prior year’s Annual Bonus pro-rated for the
year in which the Date of Termination occurs based on the number of days
occurring in such year prior to the Date of Termination, provided that
all payments made under Section 7(e)(i) relating to the year in which the
Date of Termination occurs will be

 

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credited
towards the satisfaction of the Employer’s obligation to pay under this clause
(iii) for the same period, (iv) a lump-sum payment equal to two times the sum
of (x) the Employee’s Base Salary (as in effect on the Date of Termination) and
(y) the average Annual Bonus earned by the Employee with respect to the two
years preceding the Date of Termination, provided that if the Date of
Termination is in 2004 or 2005, the Annual Bonus earned by the Employee in 2003
will be increased, for purposes of this calculation only, on a proportional
basis to adjust for the fact that the Employee only worked for a portion of
2003, (v) reimbursement for outplacement services in an amount up to $25,000
upon the Employee’s submission of receipts for such services, and (vi)
continuation of medical and dental benefits under the Employer’s employee
benefit plans providing for such benefits, for two years following the Date of
Termination; provided the Employer’s obligation to provide continued
welfare benefits under this clause (vi) shall be reduced to the extent that
equivalent coverages and benefits (determined on a coverage-by-coverage and
benefit-by-benefit basis) are provided under the plans, programs or
arrangements of a subsequent employer; and provided  further that
in the event that the Employee is precluded from continuing full participation
in the Employer’s welfare benefit plans that provide for the benefits described
and contemplated in this clause (vi), the Employee shall be provided with the
after-tax economic equivalent of any benefit or coverage foregone. For this
purpose, the economic equivalent of any benefit or coverage foregone shall be
deemed to be the total cost to the Employee of obtaining such benefit or
coverage himself on an individual basis. Payment of such after-tax economic
equivalent shall be made quarterly.

 

For purposes of this Amended Agreement, the term “Cause” shall
mean: (i) a willful and material violation by the Employee of any of Sections
1(d), 9 or 11 of this Amended Agreement (unless such violation is cured by the
Employee within thirty (30) days of receipt of a written notice from the
Employer which specifically identifies the facts and circumstances of such
violation); (ii) the willful failure by the Employee to substantially perform
the duties reasonably assigned to him within the scope of the Employee’s duties
and authority as stated in Section 1(a) hereunder (other than as a result
of physical or mental illness or injury), after the Employer delivers to the
Employee a written demand for substantial performance that specifically
identifies the manner in which the Employee has not substantially performed the
Employee’s duties and provides the Employee thirty (30) days to begin to
substantially perform, provided that the Employer shall not have the
right to terminate the Employee’s employment hereunder for Cause if the
Employee begins to substantially perform within such thirty-day period; (iii)
the Employee’s willful misconduct, willful waste of corporate assets or gross
negligence which in any such event substantially and materially injures the
Employer; or (iv) the indictment of the Employee for a felony involving moral
turpitude. In order for a termination to be considered to be for Cause, the
Notice of Termination must be delivered within six (6) months of the date on
which the Employer first knows of the event constituting Cause.

 

For purposes of this Amended Agreement, the term “Good Reason”
shall mean: (i) a reduction by the Employer in the Employee’s Base Salary; (ii)
any failure by the Employer to pay any amounts due to the Employee within
ninety (90) days of the date

 

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such amount is
due; (iii) any material diminution of the level of responsibility or authority
of the Employee, including the Employee’s reporting duties (provided, however,
that any change in Employee’s reporting duties consistent with Employer’s
rights under Section 1(a) shall not be deemed to be “Good Reason”); (iv)
any adverse change in Employee’s title or position; (v) the failure by the
Employer to obtain from any successor an assumption of the obligations of the
Employer as contemplated by Section 14(c) herein; (vi) the Employer
requiring the Employee to be based at any office or location that is more than
50 kilometers from the Employer’s current corporate headquarters; provided
that with respect to any such relocation the Employee delivers a written notice
of such Good Reason termination to the Employer within thirty (30) days after
receiving written notice from the Employer of the possibility of such event;
and provided  further that the Employee delivers a written notice
to the Employer within six (6) months of the date on which the Employee first
knows of the event constituting Good Reason which specifically identifies the
facts and circumstances claimed by Employee to constitute Good Reason and the
Employer has failed to cure such facts and circumstances within thirty (30)
days after receipt of such notice.

 

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

 

7.                                          ANNUAL LEAVE; OTHER BENEFITS

 

(a) Annual Leave. The Employee shall be entitled to twenty-five (25) days annual leave per year,
which shall be pro-rated during any partial year of employment. The Employee’s
leave entitlement, the ability to carry forward vacation time (if any), and the
conditions under which leave may be taken shall be subject to New Skies’
policies and procedures then in effect.

 

(b) Company Car. The Employer shall make available to Employee
during the employment period, under the policies and procedures then in effect,
a car determined by New Skies to be suitable to Employee’s position. The
Employee may elect to receive a cash payment in lieu of such car, in an amount
to be determined by New Skies.

 

(c) HQLP. The Employee shall be entitled to participate in the
New Skies Satellites N.V. Headquarters Location Premium plan, as such plan may
be amended by New Skies from time to time.

 

(d) Other Benefits. The Employee shall be entitled to
participate in medical and dental plans and other benefits and perquisites
generally provided to other senior executives of the Employer employed in The
Netherlands. The Employee shall be entitled to participate in any plan
providing for benefits in the nature of severance pay only to the extent set
forth in a written agreement validly entered into by the Employer.

 

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(e) Payments upon a Change in Control. In addition to the
payments above, the Employer shall pay the Employee:

 

(i)                                        (A)
in the event that a Change in Control occurs in 2004 (unless otherwise noted,
all references to 2004 and 2005 are to calendar years), in lieu of the Annual
Bonus for 2004 to which the Employee would be entitled under Section 4,
(I) provided that the Employee is employed on the date of the Change in
Control, not later than five (5) business days following the Change in Control,
an amount equal to the target Annual Bonus for 2004 (determined pursuant to Section 4)
pro-rated based on the number of days occurring in such year prior to the
Change in Control and (II) provided that the Employee is employed on December 31,
2004, not later than March 1, 2005, an amount equal to the balance of the
target Annual Bonus for 2004 over the amount described in the preceding clause
(I); or (B) in the event that the Change in Control occurs in 2005, provided
that the Employee is employed on the date of the Change in Control, an amount
equal to the sum of (I) if the Annual Bonus for 2004 has not theretofore been
paid pursuant to Section 4, the target Annual Bonus for 2004 (determined
pursuant to Section 4), in lieu of payment of such amount pursuant to Section 4,
and (II) the target Annual Bonus for 2005 pro-rated based on the number of days
occurring in such year prior to the Change in Control. With respect to a Change
in Control in 2005, the Annual Bonus for the remainder of the calendar year
after the Change in Control shall be calculated using the formula set forth in Section 4
applied pro rata based on the number of days remaining in such calendar year
following the Change in Control and shall otherwise be subject to the terms of
this Amended Agreement; and

 

(ii)                                     (A)
in the event that a Change in Control occurs in 2004, in lieu of any equity
award that the Employee may be entitled to receive under the 1999 New Skies
Satellites N.V. Stock Option Plan, as amended (the “Option Plan”) and/or the
New Skies Satellites N.V. 2002 Restricted Stock Plan (the “Restricted Stock
Plan”), (I) provided that the Employee is employed on the date of the
Change in Control, not later than five (5) business days following the Change
in Control, an amount in cash equal to one-third of 133% of the value of the
equity award made to the Employee on or about February 2004, increased on
a proportional basis to adjust for the fact that the Employee only worked for a
portion of 2003, pro-rated based on the number of days occurring in 2004 prior
to the Change in Control and (II) provided that the Employee is employed on December 31,
2004, not later than March 1, 2005, an amount in cash equal to the balance
of one-third of 133% of the value of the equity award made to the Employee on
or about February 2004, increased on a proportional basis to adjust for
the fact that the Employee only worked for a portion of 2003, over the amount
described in the preceding clause (I); or (B) in the event that the Change in
Control occurs in 2005, provided that the Employee is employed on the date of
the Change in Control, not later than five (5) business days following the Change in Control, (I) in lieu
of any equity award that the Employee may be entitled to receive under the
Option Plan or the Restricted Stock Plan, and provided that no equity award has
been made for February 2005 prior to the Change in Control, an

 

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amount in cash equal to one-third of 133% of the value of the equity
award made to the Employee on or about February 2004, increased on a
proportional basis to adjust for the fact that the Employee only worked for a
portion of 2003, and (II) an amount in cash equal to one-third of 133% of the
value of the equity award made to the Employee on or about February 2004,
increased on a proportional basis to adjust for the fact that the Employee only
worked for a portion of 2003, pro-rated based on the number of days occurring
in 2005 prior to the Change in Control. With respect to a Change in Control in
2005, such stock incentives for the remainder of the calendar year after the
Change in Control shall be determined by the Employer subject to any applicable
agreement between the Employee and the Employer applied pro rata based on the
number of days remaining in such calendar year following the Change in Control
and shall otherwise be subject to the terms of this Amended Agreement.

 

(iii)                                  For
purposes of this Amended Agreement, the term “Change in Control” means a “change
in control” as defined in the Restricted Stock Plan, or a sale of all or
substantially all of the assets of the Employer, or a liquidation of the
Employer.

 

8.                                      PERSONAL INFORMATION

 

The Employee will provide the Employer with personal data as and when
requested by the Employer for administrative, tax and other reasons and will
promptly notify the Employer of any change to such data. Without limiting the
generality of the previous sentence, the Employee shall provide all data that
may be required under the Act Advancement Proportional Participation Work
Aliens (Wet Bevordering Evenredige
Arbeidsdeelname Allochtonen),
the Obligation to Carry Identification Papers Act (Wet op de Identificatieplicht), and other
applicable laws and regulations.

 

9.                                           NON-SOLICITATION AND NON-COMPETITION

 

(a) During the employment period and for one year following the
termination of Employee’s employment with the Employer, the Employee agrees not
to offer employment to any employee of the Employer (or any of Employer’s
affiliates), not to attempt to induce any such employee to leave the employ of
the Employer or any of its affiliates, and not to solicit any clients or
suppliers of the Employer or its affiliates to do business with any competing
business of the Employer or its affiliates.

 

(b) Employee agrees not to engage in any aspect of the Satellite
Business (as defined below) for six months following the termination of
Employee’s employment. Employee shall be deemed to be engaging in the Satellite
Business if he, directly or indirectly and whether or not for compensation,
renders personal services of any kind in any capacity for any Competitor. As
used herein, a “Competitor” shall mean any corporation, firm,
partnership, proprietorship, or other entity which engages in the Satellite
Business; and the “Satellite Business” shall mean the business of
communication of electronic video, data, internet/internet protocol, voice, or
other information (individually and collectively, “Information”) by transmission
via satellite operating in

 

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the Fixed
Satellite Service frequencies for hire (“Satellite Transmission”), or
any other business that is the same or substantially the same as any line or
lines of business engaged in by the Employer at the time of termination of
employment or that Employer has begun making material preparations to enter
prior to the termination of Employee’s employment. Notwithstanding anything to
the contrary in the previous sentence, “Satellite Business” shall not include
the business of communication of Information by transmission via means other
than via Satellite Transmission unless Employer is engaged in, at the time of
termination of employment, or has begun making material preparations to enter
prior to the termination of Employee’s employment, communication of Information
by transmission via such means of non-Satellite Communication. Notwithstanding
the foregoing, the Employee shall not be subject to the restrictions of this Section 9(b)
in the event that a termination of employment occurs within two years following
the date of a Change in Control (i) by the Employee for Good Reason or (ii) by
the Employer without Cause.

 

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

 

(d) The parties hereby declare that it is impossible to measure in
money the damages which will accrue to the Employer by reason of a failure by
Employee to perform any of his obligations under this Section or under Section 11
(Confidentiality; Intellectual Property and Ownership of Work Product). If
Employer or any of its affiliates institutes any action or proceeding to
enforce the provisions hereof, to the maximum extent permitted by applicable
law, Employee hereby waives the claim or defence that Employer or its affiliate
has an adequate remedy at law, and Employee shall not urge in any such action
or proceeding the claim or defence that any such remedy at law exists. In the
event this subsection is not enforced, in whole or in part, Employer
reserves the right to seek costs and damages for any breach of this Section.
Contrary to which is stipulated in article 7:650, section 3, Dutch
Civil Code, the penalty will be to the advantage of Employer.

 

(e) The restrictions in this Section shall be in addition to any
restrictions imposed on the Employee by statute or at common law and shall
survive any termination of this Amended Agreement.

 

10.                                DAMAGES

 

Contrary to the proviso of articles 6:170 paragraph 3 and 7:661
paragraph 1 Civil Code of The Netherlands, if an Employee is insured and is
covered by such insurance for damages caused to the Employer in the performance
of his duties, the Employee will pay the Employer (or a third party to whom the
Employer is liable) for such damages up to

 

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the amount of
the insurance coverage. This provision shall apply even if the damages are not
the result of malice aforethought or conscious recklessness of the Employee.

 

11.                               CONFIDENTIALITY;  INTELLECTUAL PROPERTY  AND OWNERSHIP OF WORK PRODUCT

 

(a) The Employee shall not appropriate for his own use, disclose,
divulge, furnish, or make available to any person, unless in the normal course
or business or with the Employer’s prior written consent, any confidential or
proprietary information concerning the Employer, including without limitation
any confidential or proprietary information concerning the operations, plans or
methods of doing business of the Employer (the “Information”); provided
that the term “Information” shall not include such information which is or
becomes generally available to the public other than as a result of a
disclosure by Employee in violation of this Amended Agreement. Notwithstanding
the foregoing, the Employee may disclose Information to the extent he is
compelled to do so by law or the rules or regulations of any regulatory body to
which he is subject, provided that the Employee must use commercially
reasonable efforts to provide the Employer with a copy of all relevant
documents promptly upon receipt (and prior to making any disclosure) and must
assist New Skies, as and when reasonably requested and as permitted by law
and/or applicable judicial or administrative order, in taking such action as
New Skies deems appropriate in relation to such subpoena or request.

 

(b) The Employee agrees that all right, title and interest in and to
all works of whatever nature generated in whole or in part in the course of or
as a direct or indirect result of his employment or in the one year period
following any termination of such employment (collectively, “Work Product”),
including all rights of intellectual property according to Netherlands or
applicable foreign law, reside with and will fully accrue to the Employer. Work
Product shall include, without limitation: patents, registered models, designs,
copyrights, inventions, improvements, discoveries, processes, programs,
systems, performances in the field of industrial design, methodologies,
computer programmes and educational systems. It is the Employer’s absolute
discretion to apply or not for protection of the rights falling to it, such as
patents, under this Section. The Employee shall inform the Employer of all
achievements obtained by him that may lead to the creation of Work Product.
Work Product shall not include any works that the Employee can demonstrate have
been developed entirely by him on his own time and outside of working hours,
without the use of the Employer’s facilities, supplies, equipment, Information,
materials or trade secrets and that did not result, directly or indirectly from
work performed by the Employee on behalf of the Employer.

 

(c) Insofar as necessary, the Employee hereby assigns all rights
mentioned in subsection (b) to the Employer, who hereby accepts such
assignment. The Employee will, throughout the duration of this Amended
Agreement and after the termination hereof, render such assistance as may be
reasonably requested by the Employer, free of charge, to obtain and perfect
these rights, to register these rights in the name of Employer, and to exercise
these rights against third parties; provided, however, that the Employer
shall pay the Employee for assistance in excess of five hours on an hourly

 

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basis,
determined on a pro rata basis
with reference to the Employee’s Base Salary. The Employee hereby grants the
Employer an irrevocable power of attorney to perform the above-mentioned
actions in the name of the Employee. The Employee hereby waives any rights he
may have to assert moral rights with respect to any Work Product and renounces
any possible claims to payments for such Work Product (other than the Base
Salary) to the maximum extent permitted by law.

 

(d) The obligations set forth in this Section shall be in addition
to any restrictions or obligations imposed on Employee by statute or at common
law and shall survive any termination of this Amended Agreement.

 

(e) Each of the rights and restrictions in this Section shall be
enforceable by Employer independently.

 

(f) Employer reserves the right to seek costs and damages for any
breach of this Section. Contrary to which is stipulated in article 7:650, section 3,
Dutch Civil Code, the penalty will be to the advantage of Employer.

 

12.                                RETURN
OF COMPANY PROPERTY AND CONFIDENTIAL INFORMATION

 

At the end of the employment period, or earlier, at the Employer’s
request, the Employee shall return to the Employer all materials and property
belonging to the Employer (and, in the case of data, documents, and other
Information, all Information relating to Employer, its business and business
opportunities, or its officers, directors, employees, shareholders, customers,
and affiliates), including without limitation and where applicable, company
car, mobile telephone, credit cards, computers and computer peripherals,
computer programs, files, other electronic data and software, all documents, in
whatever form, and all copies (in whatever form) thereof. All property shall be
returned in good repair and working order, subject only to ordinary and
reasonable wear and tear.

 

13.                               DATA
CARRIERS, MATERIALS, TOOLS AND RESTITUTION

 

The Employee will be permitted to make use of certain New Skies
instruments, materials, information and data processing systems when performing
Employee’s duties. The Employee may not publish, copy, or alter in any way any
such materials, information, software, systems, or data, other than as
instructed by New Skies in writing.

 

14.                               AMENDMENT;
ASSIGNMENT

 

(a) Pursuant to article 613 book 7 of the Dutch Civil Code, New
Skies reserves the right to amend this Amended Agreement unilaterally to the
maximum extent permitted by applicable law (including, without limitation, if
the Employer’s interests in introducing the amendment concerned are so
significant that, in accordance with the principles of reasonableness and
fairness, they must take precedence over any interests of the Employee that
could be harmed by the amendment). Where the Employee’s consent is required by
applicable law, the Employee agrees to accept reasonable proposals made

 

11

 

by the
Employer regarding changes in the employment conditions, either primary or
secondary, should the Employer decide that such is necessary in view of the
circumstances. Notwithstanding anything to the contrary in this Section, the
Employer may not unilaterally lower the Employee’s Base Salary or reduce the
level of Employee’s annual on-target bonus eligibility below 40% of Employee’s
Base Salary.

 

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

 

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

 

15.                                WITHHOLDING

 

The Employer may withhold from any amounts payable to Employee
hereunder any taxes or other amounts that the Employer may reasonably determine
are required to be withheld pursuant to any applicable law, regulation, or
benefit plan. In addition, upon the termination of Employee’s employment,
subject to Section 6(c), the Employer may withhold from any final payment
to Employee any amounts that are legally due from Employee to Employer.

 

16.                               NOTICE

 

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

 

If to the Employer:

 

New Skies Satellites N.V.

Rooseveltplantsoen 4

2517 KR The Hague

The Netherlands

 

12

 

Attention: Human Resources

 

with a copy
to:

 

New Skies Satellites N.V.

Rooseveltplantsoen 4 

2517 KR The Hague 

The Netherlands 

Attention: General Counsel

 

If to the Employee:

 

Michael Schwartz 

Statenlaan 20 

2582 GM The Hague 

The Netherlands

 

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

 

17.                                  ENTIRE
AGREEMENT; SEVERABILITY; APPLICABLE LAW; DISSOLUTION PROCESS; COUNTERPARTS

 

This Amended Agreement constitutes the entire agreement between the
parties with respect to Employee’s employment and supersedes any prior
understandings or agreements. This Amended Agreement shall be governed by the
laws of the Netherlands. If any provision of this Amended Agreement is so broad
as to be unenforceable, such provision shall be interpreted to be only so broad
as is enforceable. At Employer’s request and subject to Employer’s compliance
with applicable law and this Amended Agreement, the Employee agrees to take all
steps necessary or appropriate to terminate this Amended Agreement as of the
end of the minimum applicable notice period on the terms and conditions set
forth in this Amended Agreement, by dissolution by the District Court, Cantonal
Division, location The Hague. This Amended Agreement may be executed in several
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same instrument.

 

13

 

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

 

	
   

  	
  NEW SKIES
  SATELLITES N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel
  S. Goldberg

  
	
   

  	
  Daniel S.
  Goldberg

  
	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael
  C. Schwartz

  
	
   

  	
  Michael C.
  Schwartz

  

 

14Exhibit
10.29

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT, dated this 1st day of November, 2004 (the “Amended Agreement”), among New Skies Satellites N.V., a Dutch
company (Chamber of Commerce registration #33302535) with seat at The
Hague (the “Employer”),  and Mr. Stephen J. Stott (the “Employee”).

 

WHEREAS
the Employer and the Employee have entered into that certain Employment
Agreement dated March 2, 1999 (the “1999
Agreement”);  and

 

WHEREAS, the Employer and
the Employee desire to amend the 1999 Agreement in certain respects effective
on and after the date hereof (the “Effective
Date”)  and to restate the 1999
Agreement to read in its entirety as follows.

 

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

 

1.   Employment,
Duties, Authority and Agreements.

 

(a)   The
Employer hereby agrees to employ the Employee as Chief Technical Officer (“CTO”) and the Employee hereby accepts such position and
agrees to serve the Employer in such capacity during the employment
period fixed by Section 3 hereof (the “Employment
Period”). The Employee shall report to the Chief Executive Officer (the “CEO”). The Employee will have such duties,
responsibilities and authority as
are customary for a CTO, including, without limitation, establishing standards
for and supervising the performance of the following areas: satellite
communications operations; capacity planning and inventory management;
satellite procurement; and TT&C operations.
In addition to the above responsibilities, the Employee shall be responsible
for: (i) participating in all areas of the frequency coordination process,
including representing Employer before the ITU and the government of the
Netherlands and supervising the coordination of Employer’s satellite fleet with
other satellite operators, (ii) identifying
and analyzing potential strategic acquisitions and joint ventures, commercial
opportunities, and product development prospects or matters affecting the Employer’s
interests, (iii) recruiting, training and managing a technical support team which shall be responsible for all aspects of
satellite operations, (iv) assisting in cooperation with the sales, marketing
and business development departments in the strategic development of new
products or services in response to customer requirements, and (v) any
other duties and/or responsibilities as the Employer may assign from time to time.

 

(b)   During
the Employment Period, excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee shall devote
his full working time, energy and attention to the performance of his duties
and responsibilities hereunder and shall faithfully and diligently endeavor to
promote the business and best interests of the Employer.

 

 

1

 

(c)   During
the Employment Period, the Employee may not, without the prior written consent of the Employer, operate, participate in the
management, operations or control of, or act as an
employee, officer, consultant, agent or representative of, any type of
business or service (other than as an employee of the Employer), provided  that it shall not be a
violation of the foregoing for the Employee to (i) act or serve as a director, trustee or
committee member of any civic or charitable organization, and (ii) manage his personal, financial and legal affairs, so long as
such activities (described in clauses (i)
and (ii)) do not interfere with the performance of his
duties and responsibilities to the Employer as provided hereunder. Except
as described in this Section 1(c), Employee shall not provide any services to any other entity
during the Employment Period without the
written consent of the Employer.

 

2.   Compensation.

 

(a)   As
compensation for the agreements made by the Employee herein and the performance
by the Employee of his obligations hereunder, during the Employment Period the
Employer shall pay the Employee, not less than once a month pursuant to the
Employer’s normal and customary payroll procedures, a base salary at the rate
of US $356,055 per annum (the “Base Salary”) payable in U.S. dollars or in Dutch Guilders, at the Employee’s
election, at an exchange rate to be fixed annually by mutual agreement between Employee and Employer. The Base
Salary shall be reviewed annually and be increased further in the
absolute discretion of the Employer. Any such increased
Base Salary shall then become the Base Salary for all purposes hereunder.

 

(b)   As
compensation for the agreements made by the Employee herein and the performance
by the Employee of his obligations hereunder, beginning in calendar year 1999
and for the remainder of the Employment Period (the “Bonus Period”), the Employee
shall have an opportunity to earn cash bonuses in accordance with the following
terms. For each calendar year during the Bonus Period, Employee shall be eligible to earn a cash bonus of up to 25% of his
Base Salary for that year, subject to the performance standards to be approved by the Employer and, except as
otherwise provided in Sections 2(g) and 5, subject to the Employee’s
employment with the Employer on the last day of the calendar year (the “Annual Bonus”).  The Employer and the Employee agree that the Annual Bonus for 2004 shall be paid at the
target level subject to Section 2(g). Except
as provided in Section 2(g), the Annual Bonus earned by the Employee with respect to each year shall be
paid to the Employee not later than ten (10) business days following the
determination of the amount of such Annual Bonus.

 

(c)   As
compensation for the agreements made by the Employee herein and the performance by the Employee of his
obligations hereunder, during the Employment Period the Employee shall be
entitled to participate in the New Skies Satellites N.V. 1999 Stock
Option Plan, as amended (the “Option Plan”).
The number of shares subject to options
granted to the Employee, and the terms and conditions of such options, shall be established by the Employer in
its absolute discretion from time to time. The Employee received an initial grant of options in the amount and
subject to the terms and conditions set forth on Exhibit A attached hereto.

 

 

2

 

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

 

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

 

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

 

(iii)   any other benefits and perquisites
generally provided to other senior executives of
the Employer, from time to time, provided that the Employee
shall not be entitled to participate in any such plan providing for benefits in
the nature of severance pay.

 

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

 

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

 

(g)   In
addition to the payments above, the Employer shall pay the Employee:

 

(i)            (A)   in the
event that a Change in Control occurs in 2004 (unless otherwise noted, all
references to 2004 and 2005 are to calendar years), in lieu of the Annual Bonus
for 2004 to which the Employee would be entitled under Section 2(b),
(I) provided that the Employee is employed on the date of the Change in Control, not later than five (5)
business days following the Change in Control, an amount equal to the target
Annual Bonus for 2004 (determined pursuant
to Section 2(b)) pro-rated based on
the number of days occurring in such year
prior to the Change in Control and (II) provided that the Employee is employed on December 31, 2004, not later than
March 1, 2005, an amount equal to the balance of the target Annual Bonus for
2004 over the amount described in the preceding clause (I); or (B) in the event that the Change in Control
occurs in 2005, provided that the Employee is employed on the date of the
Change in Control, an amount equal to the sum of (I) if the Annual Bonus for
2004 has not theretofore been paid pursuant to Section 2(b), the target Annual Bonus for 2004

 

 

3

 

(determined pursuant to
Section 2(b)), in lieu of payment of such
amount pursuant to Section 2(b),
and (II) the target Annual Bonus for 2005
pro-rated based on the number of days occurring in such year prior to
the Change in Control. With respect to a
Change in Control in 2005, the Annual Bonus for the remainder of the calendar year after the Change in Control shall
be calculated using the formula set forth
in Section 2(b) applied pro rata based on the number of days remaining in such calendar year following the Change in Control
and shall otherwise be subject to the terms of this Amended Agreement;
and

 

(ii)           (A)   in
the event that a Change in Control occurs in 2004, in lieu of any equity
award that the Employee may be entitled to receive under the Option Plan and/or the Restricted Stock Plan, (I)
provided that the Employee is employed on
the date of the Change in Control, not later than five (5) business days
following the Change in Control, an amount in cash equal to one-third of the value of the equity award made to the Employee,
on or about February 2003 pro­rated based on the number of days occurring in
2004 prior to the Change in Control and (II) provided that the Employee
is employed on December 31, 2004, not later
than March 1, 2005, an amount in cash equal to the balance of one-third of
the value of the equity award made to the Employee on or about February 2003 over the amount described in the preceding clause
(I); or (B) in the event that the Change
in Control occurs in 2005, provided that the Employee is employed on the date of the Change in Control, not later than five
(5) business days following the Change in Control, (I) in lieu of any
equity award that the Employee may be entitled
to receive under the Option Plan or the Restricted Stock Plan, and provided
that no equity award has been made for February 2005 prior to the Change in Control, an amount in cash equal to
one-third of the value of the equity award
made to the Employee, on or about February 2003, and (II) an amount in cash equal to one-third of the value of the
equity award made to the Employee on or about February 2003 pro-rated based on
the number of days occurring in 2005 prior to the Change in Control.
With respect to a Change in Control in 2005, such stock incentives for the remainder of the calendar year after the Change
in Control shall be determined by the Employer, subject to any
applicable agreement between the Employee
and the Employer, applied pro rata based on the number of days remaining in such calendar year following the
Change in Control and shall otherwise be subject to the terms of this Amended
Agreement.

 

For purposes of this Amended
Agreement, a “Change in Control”
means a “change in control” as defined in
the Restricted Stock Plan, or a sale of all or substantially all of the assets of the Employer, or a liquidation of the
Employer.

 

3.   Employment
Period.

 

The
Employment Period commenced on or about March 2, 1999 and shall continue indefinitely, provided that the Employment Period may be terminated during the Employment
Period upon the earliest to occur of the following events upon written notice
in accordance with Section 4 below (the “Date of Termination”):

 

 

4

 

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

 

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

 

(c)   Good Reason.   The Employee may terminate his employment hereunder
for Good Reason. For purposes of this Amended Agreement, the term “Good Reason”  shall mean: (i)
a reduction by the Employer in the Employee’s Base
Salary; (ii) any failure by the Employer to pay any amounts due
to the Employee within ninety (90) days of
the date such amount is due; (iii) any material diminution of the level of responsibility
or authority of the Employee, including the Employee’s reporting duties; (iv) any adverse change in the Employee’s title
or position; (v) the failure by the Employer
to obtain from any successor an assumption of the obligations of the Employer as
contemplated by Section 9(d) herein; and (vi) the Employer requiring the
Employee to be based at any office or location that is more than 50 kilometers
from the Employer’s current corporate headquarters; provided  that with respect
to any such relocation the Employee
delivers a written notice of such Good Reason termination to the Employer within
thirty (30) days after receiving written notice from the Employer of the
possibility of such event; and provided
further  that the Employee delivers a
written notice to the Employer within six (6) months of the occurrence of such
an event which specifically identifies the facts and circumstances claimed by
Employee to constitute Good Reason and the Employer has failed to cure such
facts and circumstances within thirty (30) days after receipt of such notice.

 

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

 

 

5

 

4.   Termination
Procedure.

 

(a)   Notice of Termination.   Termination of the Employee’s employment by the Employer for Urgent Cause or by the
Employee during the Employment Period (other than termination pursuant to
Section 3(a)) shall be communicated by written “Notice of Termination”  to
the other party hereto in accordance with Section 9(a). For purposes
of this Amended Agreement, a Notice of Termination shall mean a notice which
shall indicate the specific termination provision in this Amended Agreement
relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Employee’s employment under the provision so indicated
and shall attach any prior notices required
under Section 3.

 

(b)   Date of Termination.   “Date of Termination” shall mean (i) if the Employee’s
employment is terminated by his death, the date of his death, (ii) if the
Employee’s employment is terminated for any other reason, the date on which a
Notice of Termination
is given or any later date (within thirty (30) days, or any alternative time period agreed upon by the parties, after the
giving of such notice) set forth in such Notice of Termination.

 

5.   Termination Payments.

 

(a)(i)   For Good Reason Other than in Connection With a Change in  Control.   Except as
provided in Section 5(a)(ii), in the
event of the termination of the Employee’s
employment during the Employment Period by the Employee for Good Reason,
the Employee shall be entitled to a payment, within thirty (30) days following the Date of Termination, of (i) the Employee’s Base
Salary through the Date of Termination and outstanding business expenses
pursuant to Section 2(f) hereof (to the extent not theretofore paid), and any other amounts
due to the Employee but which have not been
paid (the “Accrued Obligations”),
(ii) any earned but unpaid Annual Bonus in
respect of a calendar year during the Bonus Period ending prior to or
coincident with the Date of Termination, (iii) an Annual Bonus equal to
the prior year’s Annual Bonus pro­rated for the year in which the Date of
Termination occurs based on the number of days occurring in such year prior to
the Date of Termination and (iv) a lump-sum payment equal to one time Employee’s Base Salary (as in effect on the Date of
Termination).

 

(ii)   Without
Urgent Cause or for Good Reason in Connection with a Change in Control.   Notwithstanding the foregoing, in the event of a
termination of the Employee’s employment within a two year period following the
date of a Change in Control (a) by
the Employer without Urgent Cause or (b) by the Employee for Good Reason, the
Employer shall pay to (or in the case of business expenses pursuant to clause (i), reimburse) the
Employee, or his estate in the event of his death, within thirty (30) days
following the Date of Termination, (i)
the Accrued Obligations, (ii) any earned but unpaid Annual Bonus in respect of a calendar year during the Bonus
Period ending prior to or coincident with the Date of Termination, (iii) an
Annual Bonus equal to the prior year’s
Annual Bonus pro-rated for the year in which the Date of Termination occurs based on the number of days occurring in such
year prior to the Date of Termination; provided  that all payments made under Section 2(g)(i)
relating to the year in which the

 

 

6

 

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

 

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

 

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

 

(c)   Death.   If the Employee’s employment is terminated as a
result of his death, the Employer shall pay to the Employee’s estate,
within thirty (30) days of the Date of
Termination, (i) the Accrued Obligations; (ii) any earned but unpaid Annual Bonus in
respect of a calendar year during the Bonus Period ending prior to or
coincident with the Date of Termination; and (iii) an Annual
Bonus equal to the prior year’s Annual Bonus
pro-rated for the year in which the Date of Termination occurs based on the number of days
occurring in such year prior to the Date of Termination. The Employer

 

 

7

 

shall have no
additional obligations under this Amended Agreement, except for the indemnification
obligations set forth in Section 6 herein.

 

6.   Indemnification.

 

The Employer shall indemnify,
defend and hold the Employee harmless from and against any and all liability or obligation
arising from or relating to this Amended Agreement or the performance by the
Employee of his obligations hereunder, in
accordance with the indemnification provisions set forth in Article 21 of the Employer’s
Articles of Association, as in effect on the date hereof, provided  that this obligation to
indemnify and defend shall not extend to disputes between the Employee and the
Employer, if any, which relate to the benefits or other amounts in the nature
of compensation from the Employer to which the Employee believes he is
entitled.

 

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

 

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

 

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

 

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

 

 

8

 

customers or
affiliates, and any business or business opportunity of Employer and its
affiliates.

 

(d)   Employee agrees not to engage in
any aspect of the Satellite Business (as hereinafter defined) during the
Employment Period and for one year following the termination of Employee’s employment with Employer. Employee shall be
deemed to be engaging in the Satellite Business if Employee directly or
indirectly, whether or not for compensation, renders personal services of any
kind in any capacity for any Competitor.

 

For purposes of this Section 7(d):

 

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

 

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

 

Notwithstanding the
foregoing, the Employee shall not be subject to the restrictions of this
Section 7(d) in the event that a termination of employment occurs within two
years following the date of a Change in Control (i)
by the Employee for Good Reason or (ii) by the Employer without Urgent
Cause.

 

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

 

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

 

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

 

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

 

If and insofar as the
Employee has received or may receive a tax-free allowance for extra-territorial costs under Section 9 of the 1965
Payroll Tax

 

 

9

 

Implementation Decree (as further described
in clause (ii) below), the following shall apply:

 

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

 

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

 

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

 

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

 

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

 

 

10

 

9.   Miscellaneous.

 

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

 

	
   

  	
  If to the Employer:

  
	
   

  	
   

  
	
   

  	
  New Skies Satellites N.V.

  
	
   

  	
  Rooseveltplantsoen 4

  
	
   

  	
  2517 KR The Hague

  
	
   

  	
  The Netherlands

  
	
   

  	
   

  
	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  New Skies Satellites N.V.

  
	
   

  	
  Rooseveltplantsoen 4

  
	
   

  	
  2517 KR The Hague

  
	
   

  	
  The Netherlands

  
	
   

  	
   

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  
	
   

  	
  If to the Employee:

  
	
   

  	
   

  
	
   

  	
  Mr. Stephen J. Stott

  
	
   

  	
  ________________

  
	
   

  	
  ________________

  
	
   

  	
  The Netherlands

  

 

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

 

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

 

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

 

 

11

 

succeeding breach of
such provision or a waiver of the provision itself or a waiver of any other provision of this Amended Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

12

 

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

 

	
   

  	
  NEW SKIES SATELLITES N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel S. Goldberg

  
	
   

  	
  Daniel S. Goldberg, Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Stephen J. Stott

  
	
   

  	
  Stephen J. Stott

  

 

 

13

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