EMPLOYMENT AGREEMENT
Exhibit 10.11
EXECUTION COPY
The parties to this Employment Agreement (the “Agreement") are Xxxx Xxxxxxxxx (the
“Executive"), residing at 000 Xxxxxxxx Xxxx, Xxxxxxxx Xxxxx, Xxx Xxxxxx 00000, and ORBCOMM Inc.
(the “Company"), a company organized under the laws of Delaware, with principal offices located at
0000 Xxxxxxx Xxxxxx, Xxxxx 000, Xxxx Xxx, Xxx Xxxxxx 00000. Effective as of the Start Date (as
defined below), this Agreement amends, restates and supersedes in its entirety the Employment
Agreement between the Executive and the Company that was effective as of March 31, 2008 (the “2008
Agreement”), except as otherwise provided in Section 7(b) below.
The Company desires to provide for the Executive’s continued employment by the Company, and
the Executive desires to accept such continued employment under the terms and conditions contained
herein, and the parties hereto have agreed as follows:
1. Employment. The Company shall employ the Executive, and the Executive shall serve
the Company, as Chief Executive Officer, with duties and responsibilities compatible with that
position, as such compatible duties and responsibilities are adjusted from time to time in the
discretion of the Company’s Board of Directors (the “Board”). The Executive agrees to devote his
full time, attention, skill, and energy to fulfilling his duties and responsibilities hereunder.
The Executive’s services shall be performed principally at the Company’s headquarters or such other
principal location in the eastern United States as the Company shall determine. As set forth in
Section 3(g) below, the Company reserves the right to relocate the Executive to its offices in
Dulles, Virginia.
2. Term of Employment. The Executive’s employment under this Agreement shall commence
as of December 31, 2010 (the “Start Date") and shall continue through December 31, 2011 (the
“Initial Term"). Upon the expiration of the Initial Term or any extension thereof, the Initial
Term or the extended term, as applicable, shall be automatically extended by twelve (12) additional
calendar months through the next December 31st, unless either party hereto notifies the other party
in writing at least ninety (90) days in advance of such expiration that he or it does not want such
extension to occur (a “Notice of Non-Extension"), in which case the Initial Term or the extended
term, as applicable, will not be further extended and the Executive’s employment will terminate
upon such expiration. Notwithstanding the foregoing, the Executive’s employment with the Company
may be terminated prior to the expiration of the Initial Term or any extended term pursuant to the
provisions of Section 4 or 5 below. Hereinafter, the period of the Executive’s employment with the
Company is referred to as the “Term.”
3. Compensation. As full compensation for the services provided under this Agreement,
the Executive shall be entitled to receive the following compensation during the Term:
(a) Base Salary. The Executive shall be entitled to receive an annual base
salary (the “Base Salary”) of $379,600. Any Base Salary increase will be subject to the sole
discretion of the Board. Base Salary payments hereunder shall be made in arrears in substantially
equal installments (not less frequently than monthly) in accordance with the Company’s customary
payroll practices for its other executives, as those practices may exist from time to time.
(b) Bonus. For each calendar year beginning with the 2011 calendar year, the
Executive shall also be eligible to receive a bonus (the “Bonus") equal to up to 140% of Base
Salary, determined based on the achievement of performance targets (both financial and qualitative)
established each year by the Board. Further, if the Company establishes a bonus plan or program in
which the Company’s executives are generally permitted to participate, then the Executive shall be
entitled to participate in such plan or program. The terms and conditions of the Executive’s
participation in, and/or any award under, any such plan or program shall be in accordance with the
controlling plan or program documents.
Any Bonus hereunder will be paid during the year following the fiscal year for which the Bonus
is being paid, provided that the Bonus will be paid no earlier than the rendering of the Company’s
audited financial statements for that fiscal year and in any case no later than the earlier of (i)
30 days after such rendering of the Company’s audited financial statements for that fiscal year and
(ii) June 30th of the year following that fiscal year.
In order to receive any Bonus payment for a fiscal year, the Executive must be actively
employed on the last day of the fiscal year for which the Bonus is being paid and not have had his
employment terminated with “cause” pursuant to Section 4(d) below prior to the payment of such
Bonus.
(c) Employee Benefits. Subject to the Executive satisfying and continuing to satisfy
any plan or program eligibility requirements and other terms and conditions of the plan or program,
the Executive shall be entitled to receive Company-paid medical and disability insurance,
Company-paid term life insurance (which shall provide for a death benefit payable to the
Executive’s beneficiary), Company-paid holiday and vacation time, and other Company-paid employee
benefits (collectively, “Employee Benefits"), at least equivalent to those provided to other senior
executives of the Company, and the benefit payable under such term life insurance in any year will
not be less than three (3) times the Executive’s then-current Base Salary, subject to applicable
policy limitations and maximums. In addition, the Executive shall be entitled to participate in
any profit sharing plan and/or pension plan generally provided for the executives of the Company or
any of its subsidiaries, provided that the Executive satisfies any eligibility requirements for
participation in any such plan. Notwithstanding the foregoing, the Company reserves the right to
amend, modify, or terminate, in its sole discretion and consistent with applicable law, any
Employee Benefit and any Employee Benefit plan, program or arrangement provided to employees in
general.
- 2 -
(d) Equity Plan Participation. The Executive shall be entitled to participate in any
equity incentive plan established by the Company in which the Company’s senior executives generally
are permitted to participate. The terms and conditions of the Executive’s participation in, and/or
any award under, any such
plan shall be in accordance with the applicable controlling plan document and/or award
agreement. The number and/or price of any equity-based award granted to the Executive shall be
determined by the Board.
(e) Expenses. The Company shall reimburse the Executive for all reasonable expenses
incurred by him in connection with the performance of his duties under this Agreement, upon his
presentation of appropriate vouchers and/or documentation covering such expenses. Without limiting
the generality of the foregoing, the Company shall reimburse the Executive for all transportation,
lodging, food, and other expenses incurred by him in connection with traveling on Company business.
(f) Automobile. The Company shall reimburse the Executive for up to $1,200 per month
for automobile expenses, including lease, insurance, and maintenance costs.
(g) Relocation. In the event that the Company elects to relocate the Executive to its
offices in Dulles, Virginia, the Company will reimburse the Executive for his reasonable expenses
incurred as a result of such relocation (including, without limitation, brokerage fees incurred in
connection with selling the Executive’s primary residence), as reasonably approved by the Company,
provided that the total amount of such reimbursement will not exceed 50% of the Base Salary. Any
such reimbursement will be made by the Company within thirty (30) days of the Executive’s
submission of such expenses for reimbursement (including any supporting documentation requested by
the Company). The Executive agrees that he will submit any such reimbursement request, with
requested supporting documents, to the Company no later than February 13th of the year following
the year in which the underlying expense is incurred so that the Company may make such
reimbursement no later than March 15th of the year following the year in which the underlying
expense is incurred.
(h) Withholdings. All payments made under this Section 3, or any other provision of
this Agreement, shall be subject to any and all federal, state, and local taxes and other
withholdings to the extent required by applicable law.
4. Termination of Employment.
(a) Disability. If the Executive shall fail or be unable to perform his essential
duties under this Agreement for any reason, including a physical or mental disability, with or
without reasonable accommodation, for one hundred eighty (180) calendar days during any twelve (12)
month period or for one hundred (120) consecutive calendar days, then the Company may, by notice to
the Executive, terminate his employment under this Agreement as of the date of the notice. Any
such termination shall be made only in accordance with applicable law.
- 3 -
Nothing set forth in this
Section 4(a) shall be construed as a waiver by the Executive for seeking an extended leave of
absence in excess of said time-frame mentioned above, as a reasonable accommodation under
applicable state and/or federal anti-discrimination laws (or the Company’s obligation to provide
such). Further, nothing contained in this Section 4(a) is to be construed as an admission that any
such leave in excess of the said time frame mentioned above is not reasonable as an accommodation.
This Section is not to be construed as a waiver of the Executive’s right to pursue legal
action for any discharge that he deems improper based on a legally protected characteristic (i.e.,
disability and/or handicap).
(b) Death. The Executive’s employment under this Agreement shall terminate
automatically upon his death. However, any and all rights that may exist under this Agreement
and/or through any other pertinent plan documents, with respect to vested benefits and/or accrued
monetary amounts owed, shall be transitioned, in accordance with the law, to the Executive’s
beneficiaries.
(c) Material Change in the Executive’s Status. Subject to the notice and cure period
set forth in this Section 4(c), the Executive may elect to terminate his employment following (i) a
material adverse change in the Executive’s status, title, position, or scope of authority or
responsibilities (including reporting responsibilities), (ii) the assignment to the Executive of
any duties or responsibilities which are materially inconsistent with his status, title, position,
authorities, or responsibilities, or (iii) any removal of the Executive from, or failure to
reappoint or reelect him to, such position; except in connection with the termination of his
employment for “cause” (as defined below). Upon the occurrence of any such material adverse
change, but no later than sixty (60) days following the occurrence of any such material adverse
change, the Executive shall provide written notice to the Company, reasonably detailing the
material adverse change, and the Company shall have thirty (30) days from receipt of such written
notice to cure any such material adverse change. If the Company fails to cure such material
adverse change within the thirty (30) day cure period, then the Executive may elect to terminate
his employment under this Agreement within seven (7) days following the expiration of such cure
period.
(d) Termination by the Company. The Company shall have the right, exercisable at any
time in its sole discretion, to terminate the employment of the Executive for any reason whatsoever
with or without “cause” (as defined below). However, the Executive’s employment shall not be
deemed to have been terminated with “cause” unless he shall have received written notice from the
Board at or prior to the termination of employment advising him of the specific acts or omissions
alleged to constitute “cause” and, in the case of those acts or omissions that are reasonably
capable of being corrected, those acts or omissions continue uncorrected after he shall have had a
reasonable opportunity (not to exceed fifteen (15) calendar days) to correct them.
As used in this Agreement, termination with “cause” shall mean only the Executive’s
involuntary termination for reason of (i) the Executive’s breach of a fiduciary duty of
- 4 -
loyalty owed to the Company or any of its subsidiaries, (ii) the Executive’s conviction of
a crime or plea of guilty or no contest to a crime, (iii) the Executive’s gross negligence related
to the performance of his services under this Agreement, (iv) the Executive’s willful misconduct,
(v) the Executive’s material breach of this Agreement, or (vi) conduct by the Executive beyond the
scope of his authority as an officer and employee of the Company, which conduct gives rise to a
hearing before any governmental department or agency seeking termination or revocation of any
governmental license; but “cause” shall not include matters relating solely to the competence of
the Executive in the performance of his duties as an officer and employee. Notwithstanding the
foregoing, the Company’s failure to achieve any performance level or objective shall not, by
itself, constitute “cause” under this Agreement, even if the achievement of such performance level
or objective is contained in a directive of the Board.
(e) Termination by the Executive.
(i) The Executive shall have the right to terminate his employment with the Company, provided
that he provides the Company with at least two (2) months of advance written notice of such
decision. Upon the receipt of such notice from the Executive, the Company may withdraw any and all
duties from the Executive and exclude him from the Company’s premises during the notice period,
during which time the Executive shall continue to paid his Base Salary and continue to be eligible
for employee benefits for the remainder of the two-month notice period. The Executive’s employment
will be terminated formally upon the expiration of such two-month notice period.
(ii) Notwithstanding Section 4(e)(i) above, in the event that the Company elects to relocate
the Executive to its offices in Dulles, Virginia in accordance with Section 3(g) above, such
election to be communicated to the Executive in writing, and the Executive elects not to relocate,
such decision will be deemed to be a voluntary resignation of employment by the Executive to be
effective upon a date to be mutually agreed upon by the parties hereto or, failing such agreement,
two (2) months following the date on which the Executive notifies the Company of his decision not
to relocate.
(f) Severance. If the Company terminates the Executive’s employment without “cause”
pursuant to Section 4(d) above, the Executive’s employment terminates as a result of a Notice of
Non-Extension provided to the Executive by the Company pursuant to Section 2 above, or the
Executive terminates his employment under Section 4(c) above due to a material change in status,
then, subject to the Executive’s execution of the Release attached hereto as Exhibit A (or in a
substantially similar form as the Company deems necessary in order to comply with then applicable
law) (the “Release”) and the Release becoming effective in accordance with its terms not later than
the 60th day following the Executive’s termination of employment, the Executive shall be entitled
(i) to receive, as severance payments, one (1) year of his then Base Salary, payable in accordance
with the Company’s payroll schedule in effect from time to time (the “Severance Payments”), and
(ii) to the extent he is then a participant in the Company’s health insurance plan and eligible for
benefits under plan terms, and only if the
- 5 -
benefit under this clause (ii) does not cause the Company to fail to satisfy the requirements
of, or be in violation of, Section 2716 of the Public Health Service Act or Section 9815 of the
Internal Revenue Code, to continued health insurance coverage for one (1) year immediately
following such termination at then existing employee contribution rates, which the Executive shall
pay (such continued coverage to run concurrently with any continued coverage obligation under the
federal law known as COBRA or any state equivalent) (such severance payments and continued health
insurance coverage being the Executive’s sole entitlement upon any such termination). Subject to
the last paragraph of this Section 4(f), the Severance Payments will begin to be paid on the 60th
day following the Executive’s termination of employment. Subject only to the Executive’s delivery
of an executed Release and such Release becoming effective within the provided sixty-day period,
the Company’s obligation under this Section 4(f) shall be absolute and unconditional, and the
Executive shall be entitled to such severance benefits regardless of the amount of compensation and
benefits the Executive may earn or be entitled to with respect to any other employment he may
obtain during the period for which severance payments are payable.
If the Executive’s employment with the Company is terminated pursuant to Section 4(e)(ii)
above, the Executive shall be entitled to severance benefits in accordance with, and subject to the
Release requirement of, the preceding paragraph as if his employment were terminated by the Company
without “cause.” Notwithstanding the preceding sentence, (i) any severance payable as a result of
a termination pursuant to Section 4(e)(ii) above shall be in an amount equal to three (3) months of
Base Salary in lieu of the one (1) year of Base Salary set forth in the preceding paragraph and
shall be payable over a three-month period in accordance with the Company’s periodic payroll
schedule in effect from time to time, such payments to commence on the date set forth in the
preceding paragraph, and (ii) any continued health insurance coverage at then existing employee
contribution rates shall be for three (3) months in lieu of the one (1) year set forth in the
preceding paragraph.
If the Executive’s employment with the Company is terminated pursuant to Sections 4(a) or 4(b)
above, if the Company terminates the Executive’s employment with “cause” pursuant to Section 4(d)
above, if the Executive terminates his employment pursuant to Section 4(e)(i) above (but not
pursuant to Section 4(e)(ii) above), or if the Executive’s employment terminates as a result of a
Notice of Non-Extension provided to the Company by the Executive, then the Executive shall not be
entitled to any further payments under this Agreement, including Base Salary, Bonus, Employee
Benefits, or severance, except as otherwise required by applicable law, including the payment of
any amounts owed to the Executive and any obligation that the Company may have to offer the
Executive continued benefit plan participation.
To the extent that any amount payable under this Agreement constitutes an amount payable under
a “nonqualified deferred compensation plan” (as defined in Section 409A of the Internal Revenue
Code (hereinafter, “Code Section 409A”)) that is not exempt from Code Section 409A, and such amount
is payable as a result of a “separation from service” (as defined
- 6 -
in Code Section 409A), including
any amount payable under this Section 4 or Section 5 below, then, notwithstanding any other
provision in this Agreement to the
contrary, such payment will not be made to the Executive until the day after the date that is
six months following his separation from service (the “Specified Employee Payment Date"), but only
if, as of his separation from service, he is a “specified employee” under Code Section 409A and any
relevant procedures that the Company may establish. For the avoidance of doubt, on the Specified
Employee Payment Date, the Executive will be paid in a single lump sum all payments that otherwise
would have been made to him under this Agreement during the six-month period but were not because
of this paragraph. This paragraph will not be applicable after the Executive’s death.
5. Change of Control. If a “Change of Control” occurs, then the Executive shall be
entitled to severance benefits upon the termination of his employment thereafter in accordance
with, and subject to the Release requirement of, Section 4(f) above as if his employment were
terminated by the Company without “cause,” unless the successor or transferee entity continues the
Executive’s employment on substantially equivalent terms. Notwithstanding the preceding sentence,
(i) any severance payable as a result of this Section 5 shall be in an amount equal to eighteen
(18) months of Base Salary in lieu of the one (1) year of Base Salary set forth in Section 4(f)
above and shall be payable over an eighteen-month period in accordance with the Company’s periodic
payroll schedule in effect from time to time, such payments to commence on the date set forth under
Section 4(f) above, and (ii) any continued health insurance coverage at then existing employee
contribution rates shall be for eighteen (18) months in lieu of the one (1) year set forth under
Section 4(f) above. This Agreement shall be binding on any and all successors and/or assigns of
the Company, and the Company may assign its rights and obligations under this Agreement in
connection with a Change of Control to the successor or transferee entity without the Executive’s
consent.
“Change of Control” means (a) the Company’s merger or consolidation with another corporation
or entity, (b) the Company’s transfer of all or substantially all of its assets to another person,
corporation, or other entity, or (c) a sale of the Company’s stock in a single transaction or
series of related transactions that results in the holders of the outstanding voting power of the
Company immediately prior to such transaction or series of transactions owning less than a majority
of the outstanding voting securities for the election of directors of the surviving company or
entity immediately following such transaction or series of transactions (other than any registered,
underwritten public offering by the Company of the Company’s stock or pursuant to any stock-based
compensation plan of the Company).
6. Obligations of the Executive.
(a) Protectable Interests of the Company. The Executive acknowledges that he has
played and will continue to play an important role in establishing the goodwill of the Company and
its related entities, including relationships with clients, employees, and suppliers. The
Executive further acknowledges that over the course of his employment with the Company,
- 7 -
he has and
will continue to (i) develop special relationships with clients, employees, and/or suppliers,
and/or (ii) be privy to Confidential Information (as defined below). As such, the Executive agrees
to the restrictions below in order to protect such interests on behalf of the
Company, which restrictions the parties hereto agree to be reasonable and necessary to protect
such interests.
(b) Non-Competition. During the Executive’s employment and for the one (1) year
period immediately thereafter, the Executive shall not, anywhere in the world, whether directly or
indirectly, for himself or for any third party, (i) engage in any business activity, (ii) provide
professional services to another person or entity (whether as an employee, consultant, or
otherwise), or (iii) become a partner, member, principal, or stockholder having a 10% or greater
interest in any entity, but in each such case, only to the extent that such activity, person or
entity is in competition with the Business. For purposes of this Section 6(b) and Section 6(c)
below, “Business” shall mean the business of offering wireless data communication services,
including for the purpose of tracking and/or monitoring fixed or mobile assets, the business of
designing, manufacturing or distributing modems that operate on such services, or any other
business in which the Company is materially engaged during the six (6) month period immediately
preceding the Executive’s termination of employment. The Executive acknowledges and understands
that, due to the global nature of the Company’s business and the technological advancements in
electronic communications around the world, any geographic restriction of the Executive’s
obligation under this Section 6(b) would be inappropriate and counter to the protections sought by
the Company hereunder.
(c) Non-Solicitation. During the Executive’s employment and for the two (2) year
period immediately thereafter, the Executive shall not, anywhere in the world, whether directly or
indirectly, for himself or for any third party: (i) solicit any business or contracts, or enter
into any business or contract, directly or indirectly, with any supplier, licensee, customer, or
partner of the Company that (A) was a supplier, licensee, customer, or partner of the Company at,
or within six (6) months prior to, the termination of Executive’s employment, or (B) was a
prospective supplier, licensee, customer, or partner of the Business at the time of the Executive’s
termination of employment, and in either case, for purposes of engaging in an activity that is in
competition with the Business; or (ii) solicit or recruit, directly or indirectly, any of the
Company’s or its subsidiaries’ employees, or any individuals who were employed by the Company’s or
its subsidiaries’ within three (3) months prior to the termination of the Executive’s employment,
for employment or engagement (whether as an employee, consultant, or otherwise) with a person or
entity involved in marketing or selling products or services competitive with the Business. The
Executive acknowledges and understands that, due to the global nature of the Company’s business and
the technological advancements in electronic communications around the world, any geographic
restriction of the Executive’s obligation under this Section 6(c) would be inappropriate and
counter to the protections sought by the Company hereunder.
Notwithstanding prior paragraphs (b) and (c), the following shall not be deemed to be a
violation of the Executive’s non-competition and non-solicitation covenants: (i) the
- 8 -
Executive
becoming employed by an entity whose principal business is the retail sale of electronic equipment;
(ii) the Executive becoming employed by an entity that is a corporate affiliate of the Company; and
(iii) the Executive holding a minority position (less than 10% interest) in any private investment
or making any investment in public
securities.
(d) Confidential Information. The Executive acknowledges that during the course of
his employment with the Company, he has had and will continue to have access to information about
the Company, and its clients and suppliers, that is confidential and/or proprietary in nature, and
that belongs to the Company. As such, at all times, both during his employment and thereafter, the
Executive will hold in the strictest confidence, and not use or attempt to use except for the
benefit of the Company, and not disclose to any other person or entity (without the prior written
authorization of the Company) any Confidential Information (as defined below). Notwithstanding
anything contained in this Section 6(d), the Executive will be permitted to disclose any
Confidential Information to the extent required by validly issued legal process or court order,
provided that the Executive notifies the Company immediately of any such legal process or court
order in an effort to allow the Company to challenge such legal process or court order, if the
Company so elects, prior to the Executive’s disclosure of any Confidential Information.
For purposes of this Agreement, “Confidential Information” means any confidential or
proprietary information which belongs to the Company, or any of its clients or suppliers, including
without limitation, technical data, market data, trade secrets, trademarks, service marks,
copyrights, other intellectual property, know-how, research, business plans, product information,
projects, services, client lists and information, client preferences, client transactions, supplier
lists and information, supplier rates, software, hardware, technology, inventions, developments,
processes, formulas, designs, drawings, marketing methods and strategies, pricing strategies, sales
methods, financial information, revenue figures, account information, credit information, financing
arrangements, and other information disclosed to the Executive by the Company or otherwise obtained
by the Executive during the course of his employment, directly or indirectly, and whether in
writing, orally, or by electronic records, drawings, pictures, or inspection of tangible property.
“Confidential Information” does not include any of the foregoing information which has entered the
public domain other than by a breach of this Agreement or the breach of any other obligation to
maintain confidentiality of which the Executive is aware.
(e) Return of Company Property. Upon the termination of the Executive’s employment
with the Company (whether upon the expiration of the Term or otherwise), or at any time during such
employment upon request by the Company, the Executive will promptly deliver to the Company and not
keep in his possession, recreate, or deliver to any other person or entity, any and all property
which belongs to the Company, or which belongs to any other third party and is in the Executive’s
possession as a result of his employment with the Company, including without limitation, computer
hardware and software, palm pilots, pagers, cell phones, other electronic equipment, records, data,
client lists and
- 9 -
information, supplier lists and information, notes, reports, correspondence,
financial information, account information, product information, files, and other documents and
information, including any and all copies of the foregoing.
(f) Ownership of Property. The Executive acknowledges that all inventions,
innovations,
improvements, developments, methods, processes, programs, designs, analyses, drawings, reports
and all similar or related information (whether or not patentable) that relate to the Company’s or
any of its affiliates’ actual or anticipated business, research, and development, or existing or
future products or services, and that are conceived, developed, contributed to, made, or reduced to
practice by Executive (either solely or jointly with others) while engaged by the Company or any of
its affiliates (including any of the foregoing that constitutes any Confidential Information)
(“Work Product”) belong to the Company or such affiliate, and the Executive hereby assigns, and
agrees to assign, all of the above Work Product to the Company or such affiliate.
(g) Judicial Modification. The Executive acknowledges that it is the intent of the
parties hereto that the restrictions contained or referenced in this Section 6 be enforced to the
fullest extent permissible under the laws of the State of New Jersey. If any of the restrictions
contained or referenced in this Section 6 is for any reason held by a court to be excessively broad
as to duration, activity, geographical scope, or subject, then, for purposes of that jurisdiction,
such restriction shall be construed, “blue penciled” or judicially modified so as to thereafter be
limited or reduced to the extent required to be enforceable in accordance with the laws of the
State of New Jersey (or other applicable law in the event that New Jersey law is not being
applied).
(h) Equitable Relief. The Executive acknowledges that the remedy at law for his
breach of this Section 6 will be inadequate, and that the damages flowing from such breach will not
be readily susceptible to being measured in monetary terms. Accordingly, upon a violation of any
part of this Section 6, the Company shall be entitled to immediate injunctive relief (or other
equitable relief) from any court with proper jurisdiction and may obtain a temporary order
restraining any further violation. No bond or other security shall be required in obtaining such
equitable relief, and the Executive hereby consents to the issuance of such equitable relief.
Nothing in this Section 6(h) shall be deemed to limit the Company’s remedies at law or in equity
for any breach by the Executive of any of the parts of this Section 6 which may be pursued or
availed of by the Company.
7. Miscellaneous.
(a) Notices. Any notice or other communication under this Agreement shall be in
writing and shall be considered given when delivered personally or five days after mailed by
registered mail, return receipt requested, to the Executive and the Company at their respective
addresses set forth above (or at such other address as a party may specify by notice to the other).
- 10 -
(b) Entire Agreement; Amendment. This Agreement contains a complete statement of all
of the arrangements between the Executive and the Company with respect to the employment of the
Executive by the Company and the Executive’s compensation for such employment, and supersedes all
previous agreements, arrangements and understandings, written or oral, relating thereto other than
any existing equity award agreements previously executed by the parties hereto. Effective as of
the Start Date, this Agreement supersedes and replaces in its entirety the 2008 Agreement, provided
that any obligations of
the Executive under the 2008 Agreement applicable to the time period before the Start Date
(such as the Executive’s obligation to keep certain information confidential) shall survive and
remain enforceable. This Agreement may not be amended except by a written agreement signed by the
Company and the Executive.
The intent of the parties hereto is that payments and benefits under this Agreement comply
with or be exempt from Code Section 409A and, accordingly, to the maximum extent permitted, this
Agreement shall be interpreted to be in compliance therewith. Notwithstanding anything in this
Agreement to the contrary, in the event that amendments to this Agreement are necessary in order to
comply with Code Section 409A or to minimize or eliminate any income inclusion and penalties under
Code Section 409A (e.g., under any document or operational correction program), the Company and the
Executive agree to negotiate in good faith the applicable terms of such amendments and to implement
such negotiated amendments, on a prospective and/or retroactive basis, as needed. Further, a
termination of employment shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for the payment of any amounts that are payable under a “nonqualified
deferred compensation plan” (as defined in Code Section 409A) that is not exempt from Code Section
409A unless such termination of employment is also a “separation from service” within the meaning
of Code Section 409A and, for purposes of any such provision of this Agreement, references to a
“termination,” “employment termination,” “termination of employment,” “termination date,”
“employment termination date,” or like term shall mean “separation from service” or the date of the
“separation from service,” as applicable.
(c) Severability. In the event that any provision of this Agreement, or the
application of any provision to the Executive or the Company, is held to be unlawful or
unenforceable by any court or arbitrator, then the remaining portions of this Agreement shall
remain in full force and effect and shall not be invalidated or impaired in any manner.
(d) Waiver. No waiver by any party hereto of any breach of any term or covenant in
this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to
be or construed as a further or continuing waiver of any such breach, or a waiver of any other term
or covenant contained in this Agreement.
(e) Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of New Jersey applicable to agreements made and to be performed in New
Jersey.
- 11 -
(f) Jurisdiction and Venue. The courts of the State of New York located in New York
City and the United States District Court for the Southern District of New York shall have
exclusive jurisdiction over the parties with respect to any dispute or controversy between them
arising under or in connection with this Agreement and the parties agree that such courts are an
appropriate venue.
(g) Legal Costs. If either party commences legal action to enforce any of its or his
rights under this Agreement and substantially prevails (as determined by the trier of fact) in that
action, then the
non-prevailing party shall reimburse the prevailing party for the legal fees and other costs
and expenses incurred by the prevailing party in connection with the action, provided that (a) any
amount reimbursed to the Executive in any one year will not affect the amount reimbursed to the
Executive in any other year, (b) any amount reimbursed to the Executive may be made no later than
the end of the year following the year in which the underlying expense is incurred, and (c) this
right to reimbursement is not subject to liquidation by the Executive for cash or exchange by the
Executive for any other benefit. The Executive’s right to reimbursement set forth in the prior
sentence is limited to expenses incurred by him during his employment with the Company and during
the five-year period immediately thereafter. No damages or other amounts owing to the Executive
hereunder shall be reduced by any earnings from any subsequent employment.
IN WITNESS WHEREOF, the parties hereto have executed this document as of the ___ day of
November, 2010 to be effective as of the Start Date.
| ORBCOMM Inc. | Xxxx Xxxxxxxxx | |||
By: |
||||
Name:
|
||||
Title:
|
||||
- 12 -
EXHIBIT A — GENERAL RELEASE
FOR AND IN CONSIDERATION OF the severance benefits set forth in the employment agreement to
which this General Release is attached, I, Xxxx Xxxxxxxxx, agree, on behalf of myself, my heirs,
executors, administrators, and assigns, except as otherwise provided in this General Release, to
release and discharge ORBCOMM Inc. (the “Company”), and its current and former officers, directors,
employees, agents, owners, subsidiaries, divisions, affiliates, parents, successors, and assigns
(the “Released Parties”) from any and all manner of actions and causes of action, suits, debts,
dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever (“Losses”) which I, my heirs, executors, administrators, and assigns have, or may
hereafter have, against the Released Parties or any of them arising out of or by reason of any
cause, matter, or thing whatsoever from the beginning of the world to the date hereof, including
without limitation, my employment agreement, my employment by the Company and the cessation
thereof, and all matters arising under any federal, state, or local statute, rule, or regulation,
or principle of contract law or common law, including but not limited to, the Worker Adjustment and
Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et
seq., the National Labor Relations Act of 1935, as amended, 29 U.S.C. §§
151 et seq., the Family and Medical Leave Act of 1993, as amended,
29 U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. §§ 2000e et seq., the Age Discrimination in Employment
Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”), the
Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et
seq., the Genetic Information Nondiscrimination Act of 2008, as amended, 42
U.S.C. §§ 2000ff et seq., the Employee Retirement Income Security Act of 1974,
as amended, 29 U.S.C. §§ 1001 et seq., the Virginia Human Rights
Act, as amended, Va. Code Xxx. §§ 2.1-714 et seq., the Virginia
Persons with Disabilities Act, as amended, Va. Code Xxx. §§ 51.5-1 et
seq., the New Jersey Law Against Discrimination, as amended, N.J. Stat.
Xxx. §§ 10:5-1 et seq., the New Jersey Conscientious Employee Protection Act,
as amended, N.J. Stat. Xxx. §§ 34:19-8 et seq., any federal, state,
or local “whistleblower” law, and any other equivalent federal, state, or local statute; provided
that I do not release or discharge the Released Parties (1) from any Losses arising under the ADEA
which arise after the date on which I execute this General Release, or (2) from any rights that I
may have to be indemnified by the Company for any acts or omissions by me made in the course of my
role as an officer and employee of the Company. It is understood that nothing in this General
Release is to be construed as an admission on behalf of the Released Parties of any wrongdoing with
respect to me, any such wrongdoing being expressly denied.
I represent and warrant that I fully understand the terms of this General Release, that I have
had the benefit of advice of counsel or have knowingly waived such advice, and that I knowingly and
voluntarily, of my own free will, without any duress, being fully informed, and after due
deliberation, accepts its terms and sign the same as my own free act. I understand that as a
result of executing this General Release, I will not have the right to assert that the Company
violated any of my rights in connection with my employment agreement, my employment, or with the
termination of such employment.
- 13 -
I affirm that I have not filed, and agree, to the maximum extent permitted by law, not to
initiate or cause to be initiated on my behalf, any complaint, charge, claim, or proceeding against
the Released Parties before any federal, state, or local agency, court, or other body relating to
my employment agreement, my employment, or the cessation thereof, and agree not to voluntarily
participate in such a proceeding. Notwithstanding the prior sentence, to the extent that
applicable law does not permit me to waive my right to file such a complaint, charge, or claim, I
hereby waive my right to, and agree, to the maximum extent permitted by law, not to, seek, receive,
collect, or benefit from any monetary or other compensatory settlement, award, judgment, or other
resolution (including a resolution that would otherwise provide for my reinstatement to employment)
of any complaint, charge, or claim that any agency or other body pursues against any of the
Released Parties, whether pursued solely on my behalf or on behalf of a greater class of
individuals. However, nothing in this General Release shall preclude or prevent me from filing a
claim with the Equal Employment Opportunity Commission that challenges the validity of this General
Release solely with respect to my waiver of any Losses arising under the ADEA.
I acknowledge that I have twenty-one (21) days in which to consider whether to execute this
General Release. I understand that I may waive such 21-day consideration period. I understand
that upon my execution of this General Release, I will have seven (7) days after such execution in
which I may revoke my execution of this General Release. In the event of revocation, I must
present written notice of such revocation to the General Counsel at the Company by delivering such
written notice to him at _______________________. If seven (7) days pass without receipt of such
written notice of revocation, this General Release shall become binding and effective on the eighth
day (the “Release Effective Date”). This General Release shall be governed by the laws of the
State of New Jersey without giving effect to its conflict of laws principles.
| Xxxx Xxxxxxxxx | Date | |||||||||||
STATE OF
|
) | |||||||||||
| : | ss.: | |||||||||||
COUNTY OF
|
) | |||||||||||
On the ___ day of ___________________ in the year 201__, before me, the undersigned,
personally appeared XXXX XXXXXXXXX, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the within instrument, and
acknowledged to me that he executed the same in his capacity, and that by his signature on the
instrument he executed such instrument, and that such individual made such appearance before the
undersigned.
| Notary Public | ||||
- 14 -
