Space Communications will commission the Amos 5 satellite in Russia

In this way, Haval Communications is dissociating itself from the Aerospace Industry, which built the Amos 1, Amos 2, and Amos 3 satellites and is currently building Amos 4

Barat Rashtanev - Information Satellite Systems and the Israeli Space Company signed an agreement last Wednesday, July 30, according to which the Israeli company will purchase the Amos 5 satellite from the Russian supplier.

In its announcement to the stock exchange, the Space Communications Company stated that it plans to use the Amos 5 satellite for the purpose of providing satellite communication services by marketing and leasing the space segments on the satellite, just as the company currently does with the Amos 2 and Amos 3 satellites. And as the company intends to do with the Amos 4 satellite.

In this way, the space company is dissociating itself from the Aerospace Industry, which supplied its previous satellites and, as mentioned, is building Amos 4. Haaretz reported on Thursday that the offer received by Space Communications from the Russian company was much cheaper - about half - of the Aerospace Industry's offer. As you may recall, in July 2007 Chalel Communications signed an agreement with the Aerospace Industry to purchase the Amos 4 communications satellite for $365 million. Most of the capacity of Amos 4 is leased in advance to the government for 276 million dollars. The government will receive 20% of the satellite's annual income, over $35 million, and 50% of the satellite's annual income over $40 million.

The Russian supplier will produce the Amos 5 satellite for the company and will deliver it to the company's ownership in orbit, at a location after the end of orbit tests, no later than the turn-key date of the new sky project, on a 31.3.2011 basis, for a total of about 157 million dollars. The lifespan of the satellite is expected to be 15 years, with at least 14 of them being insurable. The company intends to purchase insurance for the launch of the satellite and its stay in the orbit which is not included in the purchase price. An advance in the amount of approximately 30 million dollars is to be paid by August 31.8.2008, XNUMX and the balance will be paid in accordance with milestones conditional on the implementation of the project until its completion upon the final acceptance of the satellite in orbit. Insubstantial sums will be paid annually for the support for operating the satellite in orbit. A delay in delivering the satellite to the company that is not due to a reason within the company will give the company the right to a price reduction according to the established formula, or to cancellation and return if the delay exceeds the agreed upon dates, as detailed in the description of the right to cancel the agreement until the launch date.

The Space Company plans to raise the necessary funding for the purchase of Amos 5 from various funding sources, including from the public and/or institutional bodies and/or banks, in Israel and/or abroad, during the period of construction of the satellite.

Until the launch date, the company has the right to cancel the agreement due to its violation by the supplier (and which does not arise from a reason rooted in the company or force majeure), among other things, if it is clear to the parties that the satellite will not be delivered to the company after the successful completion of its tests in orbit, and this is for a reason that is the responsibility of the supplier, And this is more than several months agreed after the planned delivery date. Also, in the event of defects in the satellite that are discovered in the ground tests prior to the launch and which are not repaired by the supplier, beyond the scope of defects established, as well as in the case of delays in its delivery, the company will be entitled to cancel the agreement. In the aforementioned cases of cancellation of the agreement due to its violation, the company will be entitled to receive back the funds paid by it, together with interest.

In addition to the company's rights to cancel the agreement due to its violation before launch, Space Communications has the right to cancel the agreement until the date agreed upon for reasons of convenience, and in this case, according to the choice of the supplier, the company will complete the payments due to the supplier for the work performed together with an agreed percentage of profit. From the moment the satellite is launched and after that, the company will not be entitled to cancel the agreement due to a violation by the supplier, including in the case of total loss of the satellite, damage, etc. and the company's remedy will be the insurance receipts.

The supplier has the right to stop the production of the satellite in the event of a delay in payment until it is completed, as well as to cancel the agreement due to its violation by the company if the company is in arrears of any payment for the agreement that exceeds a set period and prior notice was given, and the company has not corrected the violation.