PANAMSAT CORP /NEW/
EXHIBIT 10.17
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<DESCRIPTION>EXHIBIT 10.17
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.17</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PANAMSAT
CORPORATION ANNUAL INCENTIVE PLAN 200</font></b><font size="2" style="font-size:10.0pt;">0</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amended and Restated as of July 28,
2004</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 1.&#160;
ESTABLISHMENT AND PURPOSE</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1&#160; <u>Establishment of the Plan</u>.&#160; PanAmSat Corporation, a Delaware
corporation, hereby establishes an annual incentive compensation plan to be
known as the PanAmSat Corporation Annual Incentive Plan 2000.&#160; The Plan permits the awarding of annual cash
bonuses to Employees of the Company, based on the achievement of pre-established
performance goals.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon approval by
the Board of Directors, subject to approval by the shareholders of the Company,
the Plan shall become effective as of January 1, 2000 and continue until
December 31, 2005, as set forth in Section 10.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160; <u>Purpose</u>.&#160; The purposes of the Plan are (i) to provide competitive total
cash compensation opportunities based on corporate and individual performance,
(ii) to reinforce the communication of the Company&#146;s mission, objectives and
goals, and (iii) to enhance the Company&#146;s ability to attract, retain, and motivate
the highest caliber employees.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The purposes of
the Plan shall be carried out by the payment to Participants of annual
incentive cash awards, subject to the terms and conditions of the Plan.&#160; The Plan also is intended to secure the full
deductibility of incentive awards payable to the Executive Officers. All
compensation payable under this Plan to Executive Officers is intended to be
deductible by the Company under Section 162(m) of the Code.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">.</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 2.&#160;
DEFINITIONS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As used in the
Plan, the following terms shall have the meanings set forth below (unless
otherwise expressly provided).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Award
Opportunity</font></i>&#148; means the various levels of incentive awards which a
Participant may earn under the Plan, as established by the Committee pursuant
to Section 5.1.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Base Salary</font></i>&#148;
shall mean the regular base salary earned by a Participant during the Plan Year
prior to any salary reduction contributions made to the Company Retirement
Savings Plan or any other Company deferred compensation plans;<i><font style="font-style:italic;"> provided,
however</font></i>, that Base Salary shall not include awards under this Plan,
pay for unused accrued vacation, any bonus or profit sharing benefits, the
Company matching contribution under any plan providing such, overtime,
relocation allowances, severance payments, any premium allowances for overseas
service, moving allowances, or any other special awards as determined by the
Committee.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Beneficial
Owner</font></i>&#148; shall have the meaning ascribed to such term in Rule 13d-3
of the General Rules and Regulations under the Exchange Act.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-indent:1.0in;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Board</font></i>&#148;
or &#147;<i><font style="font-style:italic;">Board
of Directors</font></i>&#148; means the Board of Directors of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Code</font></i>&#148;
means the Internal Revenue Code of 1986, as amended.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Committee</font></i>&#148;
means the Compensation Committee of the Board, provided that the committee
shall consist of two (2) or more individuals, appointed by the Board to
administer the Plan, pursuant to Section 3, who are &#147;outside directors&#148; to the
extent required by and within the meaning of Section 162(m) of the Code, as
amended from time to time.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Company</font></i>&#148;
means PanAmSat Corporation, a Delaware corporation (including any and all
subsidiaries), and any successor thereto.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Disability</font></i>&#148;
shall have the meaning ascribed to such term in the Company&#146;s long term
disability plan.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Effective
Date</font></i>&#148; means the date the Plan becomes effective, as set forth in
Section 1.1 herein.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Employee</font></i>&#148;
means an employee of the Company who is recommended by the Chief Executive
Officer of the Company, and is approved by the Committee for participation in
the Plan, or is included in the Plan under administrative guidelines adopted by
the Committee.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Exchange Act</font></i>&#148;
means the Securities Exchange Act of 1934, as amended from time to time.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Executive
Officers</font></i>&#148; shall mean an executive officer as set forth in Section
162(m) of the Code or any other executive officer designated by the Committee
for purposes of exempting distributions under the Plan from Section 162(m)(3)
of the Code.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Final Award</font></i>&#148;
means the actual award earned during a Plan Year by a Participant, as
determined by the Committee at the end of such Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Financial</font></i>&#148;
shall mean the corporate financial performance of the Company and its
subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Non-financial</font></i>&#148;
shall mean the non-financial performance of a specified segment of the
Company&#146;s operations designated as such by the Chief Executive Officer and
approved by the Committee for purposes of the Plan, such as a business unit,
organizational unit, division or other such segmentation.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Participant</font></i>&#148;
means an Employee who is participating in the Plan pursuant to Section 4.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Person</font></i>&#148;
shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange
Act and used in Sections 13(d) and 14(d) thereof, including a &#147;group&#148; as
defined in Section 13(d).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Plan</font></i>&#148;
means the PanAmSat Corporation Annual Incentive Plan 2000, as amended from time
to time.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Plan Year</font></i>&#148;
means the Company&#146;s fiscal year, commencing on each January 1 and ending on
December 31.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Retirement</font></i>&#148;
means a termination of employment by a Participant on or after the date on
which such Participant attains age sixty-two; <i><font style="font-style:italic;">provided, however</font></i>, that on
the date of such termination, the Company does not have grounds to terminate
the Participant&#146;s employment for Cause.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i><font style="font-style:italic;">Target
Incentive Award</font></i>&#148; means the award to be paid to a Participant when
performance measures are achieved, as established by the Committee.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 3.&#160;
ADMINISTRATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Plan shall be
administered by the Committee.&#160; Except
with respect to the matters that under Section 162(m) of the Code and Treasury
Regulation Section 1.162-27(e) are required to be determined or
established by the Committee to qualify awards under the Plan as qualified
performance-based compensation, the Committee shall have the power to
delegate to any officer or employee of the Company the authority to administer
and interpret the procedural aspects of the Plan, subject to the Plan&#146;s terms,
including adopting and enforcing rules to decide procedural and administrative
issues.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Committee
shall be entitled to rely in good faith upon any report or other information
furnished to it by any officer or employee of the Company or from the
financial, accounting, legal or other advisers of the Company.&#160; Each member of the Committee, each
individual designated by the Committee to administer the Plan and each other
person acting at the direction of or on behalf of the Committee shall not be
liable for any determination or anything done or omitted to be done in good
faith by him or by any other member of the Committee or any other such
individual in connection with the Plan, except for his own willful misconduct
or as expressly provided by statute, and to the extent permitted by law and the
bylaws of the Company, shall be fully indemnified and protected by the Company
with respect to such determination, act or omission.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the
limitations set forth in the Plan, the Committee shall: (i) select from the
Employees of the Company, those who shall participate in the Plan, (ii) grant
Award Opportunities in such forms and amounts as it shall determine, (iii)
impose such limitations, restrictions, and conditions upon such awards as it
shall deem appropriate, (iv) interpret the Plan</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and adopt, amend, and
rescind administrative guidelines and other rules and regulations relating to
the Plan, (v) make any and all factual determinations in connection with the
administration and interpretation of the Plan, (vi) correct any defect or
omission or reconcile any inconsistency in this Plan or in any Award
Opportunity granted hereunder, and (vii) make all other necessary
determinations and take all other actions necessary or advisable for the
implementation and administration of the Plan.&#160;
The Committee&#146;s determinations on matters within its authority shall be
conclusive and binding upon all parties.</font></p>

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<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 4.&#160;
ELIGIBILITY AND PARTICIPATION</font></b></p>

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<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1&#160; <u>Eligibility</u>.&#160; Each Employee (as defined in Section 2
herein) who is recommended by the Chief Executive Officer of the Company to
participate in the Plan, and who is approved by the Committee, or is included
in the Plan under administrative guidelines adopted by the Committee, shall be
eligible to participate in the Plan for such Plan Year, subject to the
limitations of Section 7 herein.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2&#160; <u>Participation</u>.&#160; Participation in the Plan shall be
determined annually by the Committee based upon the criteria set forth in the
Plan.&#160; Employees who are eligible to
participate in the Plan shall be notified of the performance goals and related
Award Opportunities for the relevant Plan Year, as soon as practicable.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3&#160; <u>Partial Plan Year Participation</u>.&#160; Except as provided in Section 9, in the
event that an Employee becomes eligible to participate in the Plan subsequent
to the commencement of a Plan Year, then such Employee&#146;s Final Award shall be
based on the Base Salary earned as an eligible Employee, providing that the
Employee has participated in the Plan for at least three months.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4&#160; <u>No Right to Participate</u>.&#160; No Participant or other Employee shall at
any time have a right to participate in the Plan for any Plan Year, despite
having participated in the Plan during a prior Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 5.&#160; AWARD
DETERMINATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1&#160; <u>Performance Goals</u>.&#160; Prior to the beginning of each Plan Year, or
as soon as practicable thereafter (but in no event more than ninety days from
the beginning of such Plan Year), the Committee shall approve or establish in
writing the performance goals for that Plan Year.&#160; For any performance period that is less than twelve months, the
performance goals shall be established before 25% of the relevant performance
period has elapsed.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as provided
in Section 9, the performance goals may include, without limitation, any
combination of Financial, Non-financial and individual performance
goals.&#160; Performance measures and their
relative weight may vary by job classification.&#160; After the performance goals are established, the Committee will
align the achievement of the performance </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">goals with the Award
Opportunities (as described in Section 5.2 herein), such that the level of
achievement of the preestablished performance goals at the end of the Plan Year
will determine the amount of the Final Award.&#160;
Except as provided in Section 9, the Committee also shall have the
authority to exercise subjective discretion in the determination of Final
Awards, as well as the authority to delegate the ability to exercise subjective
discretion in this respect.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Committee also
may establish one or more Company-wide performance goals which must be
achieved for any Participant to receive an award for that Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The performance
period with respect to which awards may be payable under the Plan shall
generally be the Plan Year; <i><font style="font-style:italic;">provided, however,</font></i> that the Committee
shall have the authority and discretion to designate different performance
periods under the Plan.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2&#160; <u>Award Opportunities</u>.&#160; Prior to the beginning of each Plan Year, or
as soon as practicable thereafter (but in no event more than ninety days from
the beginning of such Plan Year),&#160; the
Committee shall establish an Award Opportunity for each Participant.&#160; Such Award Opportunity shall vary in
relation to the job classification of each Participant. Except as provided in
Section 9, in the event a Participant changes job levels during a Plan Year,
the Participant&#146;s Award Opportunity may be adjusted to reflect the amount of
time at each job level during the Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3&#160; <u>Adjustment of Performance Goals</u>.&#160; Except as provided in Section 9, the
Committee shall have the right to adjust the performance goals and the Award
Opportunities (either up or down) during a Plan Year, to the extent permitted
by Code Section 162(m) and the regulations and interpretative rulings
thereunder, if it determines that external changes or other unanticipated
business conditions have materially affected the fairness of the goals and have
unduly influenced the Company&#146;s ability to meet them.&#160; Further, in the event of a Plan Year of less than twelve (12)
months, the Committee shall have the right to adjust the performance goals and
the Award Opportunities accordingly, at its sole discretion.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4&#160; <u>Final Award Determinations</u>.&#160; At the end of each Plan Year, Final Awards
shall be computed for each Participant as determined by the Committee.&#160; Except as provided in Section 9, each
individual award shall be based upon (i) the Participant&#146;s Target Incentive
Award percentage, multiplied by his Base Salary, (ii) the satisfaction of Financial,
Non-financial and individual performance, and (iii) the satisfaction of
individual performance (if applicable).&#160;
Final Award amounts may vary above or below the Target Incentive Award,
based on the level of achievement of the preestablished Financial, Non-financial,
and individual performance goals.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.5&#160; <u>Limitations</u>.&#160; The amount payable to a Participant for any
calendar year shall not exceed $3,000,000.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION
6.&#160; PAYMENT OF FINAL AWARDS</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160; <u>Form and Timing of Payment</u>.&#160; As soon as practicable after the end of each
Plan Year, the Committee shall certify in writing the extent to which the
Company and each Participant has achieved the performance goals for such Plan
Year, including the specific target objective(s) and the satisfaction of any
other material terms of the awards, and the Committee shall calculate the
amount of each Participant&#146;s incentive award for the relevant period.&#160; Final Award payments shall be payable to the
Participant, or to his estate in the case of death, in a single cash payment,
as soon as practicable after the end of each Plan Year, after the Committee, in
its sole discretion, has certified in writing that the specified performance
goals were achieved.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160; <u>Payment of Partial Awards</u>.&#160; In the event a Participant no longer meets
the eligibility criteria as set forth in the Plan during the course of a
particular Plan Year, the Committee may, in its sole discretion, compute and
pay a partial award for the portion of the Plan Year that an Employee was a
Participant.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3&#160; <u>Unsecured Interest</u>.&#160; No Participant or any other party claiming
an interest in amounts earned under the Plan shall have any interest whatsoever
in any specific asset of the Company.&#160;
To the extent that any party acquires a right to receive payments under
the Plan, such right shall be equivalent to that of an unsecured general
creditor of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 7.&#160;
TERMINATION OF EMPLOYMENT</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1&#160; <u>Termination of Employment Due to Death,
Disability, Retirement, or Transfer to an Affiliate Not Included in the Plan</u>.&#160; In the event a Participant&#146;s employment is
terminated by reason of death, Disability, Retirement, or transfer to an
affiliated company not participating in the Plan, the Final Award determined in
accordance with Section 5.4 herein shall be reduced to reflect participation
prior to such termination only.&#160; The
reduced award shall be based upon the amount of Base Salary earned during the
Plan Year prior to termination.&#160; In the
case of a Participant&#146;s Disability, the employment termination shall be deemed
to have occurred on the date the Committee determines that the requirements of
Disability have been satisfied.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Final Award
thus determined shall be payable as soon as practicable following the end of
the Plan Year in which employment termination occurred, or sooner (except with
respect to Executive Officers), as determined by the Committee in its sole
discretion.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2&#160; <u>Termination of Employment for Other
Reasons</u>.&#160; In the event a
Participant&#146;s employment is terminated for any reason other than death,
Disability, Retirement or transfer to an affiliated company not participating
in the Plan (of which the Committee shall be the sole judge), all of the
Participant&#146;s rights to a Final Award for the Plan Year then in progress shall
be forfeited.&#160; However, the Committee,
in its sole discretion, may pay a partial award for the portion </font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of that Plan Year that
the Participant was employed by the Company, computed as determined by the
Committee.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION
8. &#160;RIGHTS OF PARTICIPANTS</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1&#160; <u>Employment</u>.&#160; Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate any Participant&#146;s
employment at any time, nor confer upon any Participant any right to continue
in the employ of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2&#160; <u>Nontransferability</u>.&#160; No right or interest of any Participant in
the Plan shall be assignable or transferable, or subject to any lien, directly,
by operation of law, or otherwise, including, but not limited to, execution,
levy, garnishment, attachment, pledge, and bankruptcy.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION
9.&#160; EXECUTIVE OFFICERS</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.1&#160; <u>Applicability
.</u>&#160; The provisions of this Section 9
shall apply only to Executive Officers.&#160;
In the event of any inconsistencies between this Section 9 and the other
Plan provisions, the provisions of this Section 9 shall control.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.2&#160; <u>No Partial Plan Year Participation</u>.&#160; An Executive Officer who becomes eligible
after the beginning of a Plan Year may participate in the Plan for the
succeeding Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.3&#160; <u>Award Determination</u>.&#160; Prior to the beginning of each Plan Year, or
as soon as practicable thereafter, the Committee shall establish the Target
Incentive Award percentage for each Executive Officer and performance goals for
that Plan Year.&#160; Performance goals to be
used shall be chosen from among any combination of the Financial and
Non-financial performance goals set forth in Schedule A and such individual
performance goals as established by the Committee.&#160; The Committee may select one or more of the performance goals
specified from Plan Year to Plan Year which need not be the same for each
Executive Officer in a given year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the end of the
Plan Year and prior to payment, the Committee shall certify in writing the
extent to which the performance goals and any other material terms were
satisfied.&#160; Final Awards shall be
computed for each Executive Officer based on (i) the Participant&#146;s Target
Incentive Award multiplied by his Base Salary, and (ii) Financial, Non-financial
and individual performance (if applicable).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Final Award amounts
may vary above or below the Target Incentive Award based on the level of
achievement of the pre-established Financial, Non-financial and
individual performance goals.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=7,EFW="2146362",CP="PANAMSAT CORPORATION",DN="23",CHK=263153,FOLIO='7',FILE="DISK021:[04NYC7.04NYC9317.EDGAR]EXH10-17_9317.CHC",USER="MKEANE",CD='Sep 10 04:21 2000' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.4&#160; <u>Non-adjustment of Performance Goals</u>.&#160; Once established, performance goals shall
not be changed during the Plan Year.&#160;
Participants shall not receive any payout when the Company or Non-financial
segment (if applicable) does not achieve at least minimum performance goals.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.5 <u>Discretionary
Adjustments</u>.&#160; The Committee retains
the discretion to eliminate or decrease the amount of the Final Award otherwise
payable to a Participant.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.6&#160; <u>Possible Modification</u>.&#160; If, on advice of the Company&#146;s tax counsel,
the Committee determines that Code Section 162(m) and the regulations
thereunder will not adversely affect the deductibility for federal income tax
purposes of any amount paid under the Plan by applying one or more of Section
2, 4.3, 5.1, 5.2, 5.3 or 5.4 to an Executive Officer without regard to the
exceptions to such Section or Sections contained in this Section 9, then the
Committee may, in its sole discretion, apply such Section or Sections to the
Executive Officer without regard to the exceptions to such Section or Sections
that are contained in this Section 9.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION
10.&#160; AMENDMENT AND MODIFICATION</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Committee, in
its sole discretion, without notice, at any time and from time to time, may
modify or amend, in whole or in part, any or all of the provisions of the Plan,
or suspend or terminate it entirely; <i><font style="font-style:italic;">provided, however,</font></i> that no such
modification, amendment, suspension, or termination may, without the consent of
a Participant (or his or her beneficiary in the case of the death of the
Participant), reduce the right of a Participant (or his or her beneficiary, as
the case may be) to a payment or distribution hereunder to which he or she has
already earned and is otherwise entitled.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION 11.&#160;
MISCELLANEOUS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.1&#160; <u>Governing Law</u>.&#160; The Plan, and all agreements hereunder,
shall be governed by and construed in accordance with the laws of the State of
Delaware.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.2&#160; <u>Withholding Taxes</u>.&#160; The Company shall have the right to deduct
from all payments under the Plan any Federal, state, or local income and
employment taxes required by law to be withheld with respect to such payments.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.3&#160; <u>Gender and Number</u>.&#160; Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.4&#160; <u>Severability</u>.&#160; In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.5&#160; <u>Costs of the Plan</u>.&#160; All costs of implementing and administering
the Plan shall be borne by the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.6&#160; <u>Successors</u>.&#160; All obligations of the Company under the Plan shall be binding
upon and inure to the benefit of any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


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<!-- ZEQ.=1,SEQ=9,EFW="2146362",CP="PANAMSAT CORPORATION",DN="23",CHK=911283,FOLIO='9',FILE="DISK021:[04NYC7.04NYC9317.EDGAR]EXH10-17_9317.CHC",USER="MKEANE",CD='Sep 10 04:21 2000' -->
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE A</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="109%" style="border-collapse:collapse;width:109.1%;">
 <tr>
  <td width="664" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:498.35pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Financial
  Performance Measures</font></u></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="664" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:498.35pt;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Earnings before
  interest, taxes, depreciation, and amortization</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash value added</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Return on
  investment</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Economic value
  added</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Return on net
  assets</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Earnings before
  interest and taxes</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Return on
  invested capital</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Profit before
  taxes</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Return on equity</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net operating
  profit after taxes</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Backlog &#151; value
  of leases under contract before operation</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Profit margin</font></p>
  </td>
 </tr>
 <tr>
  <td width="385" valign="top" style="padding:0in 0in 0in 0in;width:288.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash-flow return
  on investment</font></p>
  </td>
  <td width="280" valign="top" style="padding:0in 0in 0in 0in;width:209.95pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue growth</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="79%" style="border-collapse:collapse;width:79.64%;">
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Non-Financial
  Performance Measures</font></u></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Expense
  management</font></p>
  </td>
 </tr>
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Customer
  satisfaction</font></p>
  </td>
 </tr>
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quality</font></p>
  </td>
 </tr>
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Human resources
  management</font></p>
  </td>
 </tr>
 <tr>
  <td width="498" valign="top" style="padding:0in 0in 0in 0in;width:373.5pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in 2.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development and
  execution of strategic initiatives</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


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