Exhibit 10.3


 


  


GLOBALSTAR, INC.


 


2012 KEY EMPLOYEE CASH BONUS PLAN


 


 


Section 1. Purposes of the Plan


 


The purposes of this
Key Employee Bonus Plan (“Plan”) of Globalstar, Inc. (“Company”) are:


 


	 	·	to reward designated key employees’ successful efforts to exceed the Company’s 2012 financial performance goals,


 


	 	·	to align these employees’ financial interests with those of the Company’s stockholders, and


 


	 	·	to provide these employees with a competitive, success-based bonus package.


 


Section 2. Bonus Pool; Amounts Payable


 


(a) The pool available
for bonus distribution shall be determined based on the Company’s Adjusted EBITDA performance in excess of budget during
calendar year 2012 (“Plan Year”). The aggregate amount to be distributed under the Plan shall be 25% of the
Company’s Adjusted EBITDA in excess of the $9,000,000 forecasted in the Company’s 2012 budget, as approved by the Board
of Directors on March 6, 2012. For Plan purposes, Adjusted EBITDA means EBITDA adjusted on a basis consistent with adjusted
EBITDA previously reported by the Company, with further adjustments, if necessary, for Thales arbitration net costs or benefits,
spectrum sale or lease proceeds, asset write-offs and other similar items impacting EBITDA during the Plan Year as determined at
the sole discretion of the Compensation Committee of the Board of Directors (“Committee”).


  


(b) The portion of
the pool payable to each participant shall be as recommended by the Chief Executive Officer and approved by the Compensation Committee,
acting in its sole discretion.


  


Section 3. Participants; Eligibility;
Payment


 


(a) The Compensation
Committee (the Chairman of the Board of Directors and CEO being also Chairman of the Committee) shall designate the participants
in the Plan promptly after approval of the Plan by the Board, and will report the roster of participants to the Board. The Plan,
and participation of initially-designated key employees, shall be effective retroactive to January 1, 2012. The CEO, with approval
of the Committee, may also designate additional key employee participants from time to time with participation to be effective
from date of designation.


 


(b) In order to be
eligible to receive this bonus, a participant must be employed by the Company or any of its subsidiaries throughout the Plan Year
and until the first business day that is 15 days after the Company files its annual report on Form 10-K for the Plan
Year (such day the “Payment Date”). Failure of a participant to remain employed through the Payment Date for
any reason whatsoever will terminate all entitlements under the Plan; provided, however, that the Committee may, but shall
not be required to, on a case-by-case basis, approve payments under the Plan of a prorated bonus for employees who, during the
Plan Year, are hired as, or who replace, designated participants. The Committee may also, but shall not be required to, make case-by-case
exceptions to termination of Plan participation resulting from termination of service, either during the Plan Year or before the
Payment Date, because of death, disability, or retirement of a participant.


 


(c) The Company shall
make payments on the Payment Date. All payments shall be made in cash or in common stock of the Company as determined by the Committee.
If payments are made in stock, the shares shall be distributed accordance with the stock distribution provisions of Company’s
Amended and Restated 2006 Equity Incentive Plan and shall be fully vested, registered and marketable at the time distributed.


 


Section 4. Committee


 


(a) This Plan shall
be administered by the Committee, which shall have full authority and discretion to interpret the Plan, to establish, amend and
rescind rules relating to the Plan that are not inconsistent with this document, and to make all other determinations that may
be necessary or advisable for the Plan’s administration.


 






    	 



    	 



    

 


(b) Any interpretation
of the Plan by the Committee and any decision by it relating to the Plan shall be final and binding on all persons.


 


Section 5. Liability for Repayment


 


In the event that,
after the Payment Date, but before April 10, 2014, discovered fraud or misrepresentation (as determined by the Committee) should
result in a need for the Company to restate its 2012 annual financial statements in a manner that reduces the adjusted EBITDA figure
that was used to determine the amount available for distribution under the Plan, then participants who have received distributions
under the Plan in excess of the amounts they would have been entitled to receive, but for the fraud or misrepresentation, shall
be liable to repay such excess to the Company, without interest, on demand.


 


Section 6. Plan Not Exclusive


 


This Plan shall not
be construed as limiting the ability or discretion of the Committee to award additional compensation, including without limitation
other bonuses, separate and apart from this Plan, to individual participants based upon subjective or other criteria.


 


 


 




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