Document:

Exhibit

Exhibit 10.2

McKESSON CORPORATION
Supplemental Retirement Savings Plan

Amended and Restated July 30, 2019

	
			
	 
	 
	 

    

TABLE OF CONTENTS
	
				
	A.
	PURPOSE
	1
	

	B.
	ERISA PLAN
	1
	

	C.
	PARTICIPATION
	2
	

	D.
	AMOUNTS OF DEFERRAL
	3
	

	E.
	COMPANY CONTRIBUTIONS
	4
	

	F.
	PAYMENT OF DEFERRED COMPENSATION
	5
	

	G.
	BENEFICIARY DESIGNATION
	9
	

	H.
	SOURCE OF PAYMENT
	9
	

	I.
	MISCELLANEOUS
	10
	

	J.
	ADMINISTRATION OF THE PLAN
	11
	

	K.
	AMENDMENT OR TERMINATION OF THE PLAN
	11
	

	L.
	CLAIMS AND APPEALS
	11
	

	M.
	DEFINITIONS
	13
	

	N.
	SUCCESSORS
	16
	

	O.
	EXECUTION
	17
	

	 
	 
	 

	        APPENDIX A  EXAMPLE OF DEFERRALS UNDER PLAN
	A-1
	

 

	
			
	 
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McKESSON CORPORATION 
Supplemental Retirement Savings Plan
Amended and Restated July 30, 2019

		
	A.
	PURPOSE

		
	1.
	This Plan is established to allow certain executives of the Company to elect to defer compensation which cannot be deferred under the McKesson Corporation 401(k) Retirement Savings Plan (“401(k) Plan”) because of limitations of tax laws and to provide for a Monthly Company Match and an Additional Company Match on those deferrals at a rate equivalent to the 401(k) Plan’s “Matching Employer Contribution” and “Additional Matching Employer Contribution.”

		
	2.
	This Plan is the successor plan to the Supplemental PSIP, as in effect on December 31, 2004 (the “Prior Plan”).  Effective December 31, 2004, the Prior Plan was frozen and no new deferrals shall be made to it nor shall any matching contributions be allocated or vested under it after such date; provided, however, that any deferrals that were made to the Prior Plan or matching contributions that were allocated and vested under the Prior Plan before January 1, 2005 shall continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31, 2004.

		
	3.
	Any deferrals made to or matching contributions that were allocated or vested under the Prior Plan after December 31, 2004 are deemed to have been made or allocated under this Plan and all such deferrals and matching contributions shall be governed by the terms and conditions of this Plan as it may be amended from time to time.

		
	4.
	This Plan is intended to comply with the requirements of Code Section 409A.

		
	5.
	Capitalized terms used in this Plan shall have the meaning set forth in Section M hereof.

		
	B.
	ERISA PLAN

This Plan is an unfunded deferred compensation program for a select group of management or highly compensated employees of the Company.  The Plan, therefore, is covered by Title I of ERISA except that it is exempt from Parts 2, 3, and 4 of Title I of ERISA.

	
			
	 
	1
	 

    

		
	C.
	PARTICIPATION

		
	1.
	Eligibility to Participate.  The Administrator may, at his or her discretion, and at any time, and from time to time, select executives of an Employer who may elect to participate in this Plan (“Eligible Executives”).  Selection of Eligible Executives may be evidenced by the terms of the executive’s employment contract with the Company, or by inclusion among the persons specified in writing by the Administrator.  The Administrator may, at its discretion, and at any time, and from time to time, provide that executives previously designated as Eligible Executives are no longer Eligible Executives.  If the Administrator determines that an executive is no longer an Eligible Executive, he or she shall remain a Participant in the Plan until all amounts credited to his or her Account prior to such determination are paid out under the terms of the Plan (or until death, if earlier).

		
	2.
	Election to Participate by Eligible Executives and Deferral Election.  Each Eligible Executive may become a Participant in the Plan by electing to defer Compensation, or by the Company crediting a Discretionary Contribution to an Account on behalf of an Eligible Executive, in accordance with the terms of this Plan.  An election to defer shall be in writing and shall be made at the time and in the form specified by the Administrator.  On electing to defer Compensation (or by accepting a Discretionary Contribution credited by the Company to an Account on behalf of an Eligible Executive) under this Plan, the Eligible Executive shall be deemed to accept all other terms and conditions of this Plan.

		
	(a)
	Timing of Elections.  All elections to defer amounts under this Plan shall be irrevocable and shall be made pursuant to an election executed and filed with the Administrator before the amounts so deferred are earned.  An election to defer Compensation shall be made prior to the beginning of the Plan Year in which it is earned and shall become irrevocable on the December 31 preceding such Plan Year.  

		
	(b)
	Newly Eligible Executive Elections.  However, if an executive becomes an Eligible Executive after the beginning of a Plan Year, he or she may make an election to defer Compensation for that Plan Year no later than 30 days after the date he or she becomes an Eligible Executive, which election shall become irrevocable at the end of the 30-day period or an earlier date that the Administrator prescribed; provided, however, such election shall apply only to Compensation earned after the election becomes irrevocable or at such later time the Administrator prescribes.  

	
			
	 
	2
	 

    

		
	(c)
	Modification of Elections.  An election filed in accordance with the provisions of the preceding paragraphs (a) and (b) shall be applicable to the Plan Year with respect to which it is made and shall continue for subsequent Plan Years until suspended or modified in a writing delivered by the Participant to the Administrator, as described in this paragraph (c).  An election to suspend further deferrals or to increase or decrease the amount deferred under the Plan shall apply only to Compensation otherwise payable to the Participant after the end of the Plan Year in which the election is delivered to the Administrator and such election shall become irrevocable on the date that the Administrator prescribes, but in no event later than December 31 of the Plan Year in which such election is made.

		
	3.
	Relation to Other Plans.

		
	(a)
	Other Plans.  An Eligible Executive may participate in this Plan and may also participate in DCAP III or any successor plan.  No amounts may be deferred under this Plan which have been deferred under any other plan of the Company and the Administrator may modify or render invalid a Participant’s election prior to such election becoming irrevocable to accommodate deferrals made under other plan(s).

		
	(b)
	Effect on Other Plans.  For all other benefit programs maintained by the Company, amounts deferred by an Eligible Executive under this Plan may result in a reduction of benefits payable under the Social Security Act, the McKesson Corporation Retirement Plan, the 401(k) Plan and the McKesson Corporation Executive Benefit Retirement Plan.

		
	D.
	AMOUNTS OF DEFERRAL

		
	1.
	401(k) Plan Supplement.  This Plan allows an Eligible Executive to defer Compensation, and receive credit for a Monthly Company Match and Additional Company Match, to the extent that such deferrals (and corresponding Monthly Company Match and Additional Company Match) cannot be made under the 401(k) Plan because of the limitations in Code Section 401(a)(17) (limiting the amount of annual compensation to be taken into account under the 401(k) Plan to $280,000 in 2019, as adjusted from time to time under the Code).

		
	2.
	Amount of Deferrals.  As illustrated in Appendix A, an Eligible Executive may elect to defer under this Plan up to an amount equal to (a) minus (b), where:

		
	(a)
	is the maximum rate of deferral for “Basic Contributions” under the 401(k) Plan multiplied by the Eligible Executive’s Compensation, and

		
	(b)
	is the maximum amount that the Eligible Executive is able to defer as a “Basic Contribution” under the 401(k) Plan, taking into account the limits of Code Section 401(a)(17).

	
			
	 
	3
	 

    

		
	E.
	COMPANY CONTRIBUTIONS

		
	1.
	Company Match.

		
	(a)
	Eligibility.

		
	(i)
	Monthly Company Match.  A Monthly Company Match shall be credited, with respect to each calendar month, to the Accounts of Eligible Executives who actually defer Compensation under this Plan for such calendar month.

		
	(ii)
	Additional Company Match.  An Additional Company Match may be credited, with respect to each 401(k) Plan plan year, to the Accounts of Eligible Executives who actually defer Compensation under this Plan.

		
	(b)
	Amount of Match.

		
	(i)
	Monthly Company Match.  The amount of the Monthly Company Match to be credited to the Account of an Eligible Executive for any calendar month shall be a percentage of the Eligible Executive’s deferrals under this Plan for the calendar month.  This percentage shall be the same percentage as the “Matching Employer Contribution” (as defined in the 401(k) Plan) percentage that would have been credited to the Eligible Executive’s 401(k) Plan account if the Eligible Executive’s deferrals under this Plan had been made under the 401(k) Plan.  In determining this amount, the Administrator shall take into account the different “Matching Employer Contribution” rates that may apply.

		
	(ii)
	Additional Company Match.  The amount of the Additional Company Match to be credited to the Account of an Eligible Executive for any 401(k) Plan plan year shall be a percentage of the Eligible Executive’s deferrals under this Plan for the 401(k) Plan plan year.  This percentage shall be the same percentage as the “Additional Matching Employer Contribution” (as defined in the 401(k) Plan) percentage that would have been credited to the Eligible Executive’s 401(k) Plan account if the Eligible Executive’s deferrals under this Plan had been made under the 401(k) Plan.  In determining this amount, the Administrator shall take into account the different “Additional Matching Employer Contribution” rates that may apply.

	
			
	 
	4
	 

    

		
	2.
	Discretionary Contribution.  The Compensation Committee shall have the sole discretion to determine an amount credited to an Eligible Executive’s Account as a “Discretionary Contribution.”  A Discretionary Contribution may be subject to such terms or conditions, including but not limited to vesting, as the Compensation Committee may specify in its discretion at the time the Discretionary Contribution is credited to a Participant’s Account.  Except with respect to the Company’s executive officers, the Compensation Committee may delegate its authority under this Section E.2 to the Administrator.  

		
	F.
	PAYMENT OF DEFERRED COMPENSATION

		
	1.
	Book Account and Interest Credit.  Both Compensation deferred by a Participant and any Monthly Company Match, Additional Company Match or vested Discretionary Contribution for the benefit of a Participant shall be credited to a separate bookkeeping account maintained for such Participant (the “Account”).  Interest or earnings shall be credited to each Account for each Plan Year at a rate (i) determined by reference to the return choice(s) selected by the Participant from among the alternatives that are selected and made available by the Plan Administrator from time to time (the “Investment Alternatives”), which alternatives will consist of all or a subset of the investment alternatives available under the 401(k) Plan from time to time, excluding the 401(k) Plan’s brokerage window or (ii) if no such Investment Alternative has been chosen, the default rate of 120% of the long-term applicable federal rate, compounding monthly, applicable for the end of the immediately preceding year ((i) or (ii) as applicable, the “Declared Rate”).   Notwithstanding the foregoing, if a Change in Control occurs, for the two calendar years immediately following the year in which the Change in Control occurs, Participants shall continue to be able to select from among the Investment Alternatives, or other return choices, in each case, that are substantially similar to the Investment Alternatives in effect immediately prior to the Change in Control.  Interest or earnings on each Account balance shall be compounded daily on each business day within the Plan Year to yield the Declared Rate for the Plan Year.  Interest or earnings shall be credited to each Account as of the end of each business day.  

		
	2.
	Vesting.

		
	(a)
	A Participant shall be 100% vested at all times in the value of the Participant’s elective deferrals and earnings thereon credited to the Participant’s Account.

	
			
	 
	5
	 

    

		
	(b)
	A Participant shall vest in the amounts of Monthly Company Match and the Additional Company Match and earnings thereon credited to the Participant’s Account at the same time and in the same manner as if these amounts were “Matching Employer Contributions” or “Additional Matching Employer Contributions” under the 401(k) Plan and as if the rules of the 401(k) Plan concerning vesting applied to such amounts.  For this purpose, any Monthly Company Match shall be deemed to be credited to an Account as of the last day of the calendar month with respect to which such Monthly Company Match is determined and any Additional Company Match shall be deemed to be credited to an Account as of the March 31 with respect to which such Company Match is determined.  Any amounts that would be forfeited under the rules of the 401(k) Plan applicable to “Matching Employer Contributions” or “Additional Matching Employer Contributions” under the 401(k) Plan shall be forfeited hereunder.  Any forfeiture under this Plan of any portion of the Monthly Company Match or the Additional Company Match credited to a Participant’s Account shall eliminate any obligation of the Company to pay the forfeited amount hereunder.

		
	(c)
	Unless the Compensation Committee determines otherwise, a Participant’s Discretionary Contribution will be forfeited at the time of Participant’s Separation from Service for any reason, if such Participant has not satisfied the applicable terms and conditions, including vesting requirements, that the Compensation Committee imposed on the Discretionary Contribution under Section E.2.  Any forfeiture under this Plan of any portion of the Discretionary Contribution credited to a Participant’s Account shall eliminate any obligation of the Company to pay the forfeited amount hereunder.

		
	3.
	Election of Methods of Payment.  A Participant shall elect in writing, and file with the Administrator, a method of payment of benefits under this Plan from the following methods based upon the nature of the Payment Event.  This election must be made no later than the later of (i) December 31, 2007 or (ii) 30 days after the date the Participant first becomes an Eligible Executive.  

	
			
	 
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	(a)
	Retirement or Disability.  If the Payment Event is due to the Participant’s Retirement or Disability, the Participant may choose one of the following payment methods:

		
	(i)
	Payment of the vested amounts credited to the Participant’s Account in any specified number of approximately equal annual installments, not in excess of the number of whole years remaining of the Participant’s life expectancy, determined as of his or her Retirement or Disability and based upon the mortality tables then in use under the McKesson Corporation Retirement Plan, the first installment to be paid at a designated interval following the Payment Event.  For purposes of the Plan, installment payments shall be treated as a single distribution under Code Section 409A.

		
	(ii)
	Payment of the vested amounts credited to the Participant’s Account in a single lump sum upon the occurrence of the Retirement or Disability.

		
	(iii)
	If a Participant does not make any election with respect to the payment of the Participant’s Account, then such benefit shall be payable in a lump sum upon the occurrence of Participant’s Retirement or Disability, whichever is applicable.

Payment under this paragraph (a) pursuant to Participant’s Retirement, is subject to Section 5.
		
	(b)
	Death.  Each Participant shall make an election of the manner in which any amount remaining in the Participant’s Account at the time of the Participant’s death shall be paid to his or her Beneficiary if such Participant has not yet received or begun receiving a distribution under the Plan.  At the election of the Participant, benefits shall be paid in a lump sum or in up to ten annual installments; provided, however, if a Participant is in-pay status at the time of death, distribution of the Account, or portion of the Account, that is in-pay shall continue to be distributed to the Beneficiary as Participant elected to receive such distribution.  A Beneficiary may not elect to accelerate, change the form of the payments pursuant to the Participant’s election, or further defer the payment of the Participant’s Account as described in Section F.4.

		
	(c)
	Separation from Service Not Due to Retirement or Death.  If the Payment Event occurs as a result of the Participant’s Separation from Service, and such separation is not due to the Participant’s death or Retirement, payment of the vested amounts credited to the Participant’s Account shall be made in a single lump sum upon the occurrence of the Participant’s Separation from Service, subject to Section 5.

	
			
	 
	7
	 

    

(If any Monthly Company Match or Additional Company Match is payable under Section E hereunder, that amount or first installment amount, whichever is applicable, may be paid separately and at a later date as provided in such section but not later than the end of the calendar year in which the Monthly Company Match or Additional Company Match is credited to the Participant’s Account.)
		
	4.
	Subsequent Change in Form of Payment.  Once an election is made as to the form of payment upon a Payment Event, a Participant may alter the form of payment of amounts deferred under the Plan by a writing filed with the Administrator; provided that such alteration is made at least one year prior to the earliest Payment Event and does not provide for the receipt of such amounts earlier than five years from the previously scheduled Payment Event.  A change to the form of a distribution may be modified or revoked until one year prior to the time a distribution is originally scheduled to be made, at which time such change shall become irrevocable.  The last valid election accepted by the Administrator shall govern the payout.  A change to the form of distribution may be modified or revoked until 12 months prior to the earliest scheduled Payment Event, at which time any such modification or revocation shall become irrevocable.  The last valid election accepted by the Administrator shall govern the form of payment.  

		
	5.
	Deminimis Cashout.  Notwithstanding the Participant’s election, the Administrator in its sole discretion may distribute an Account to a Participant or a Beneficiary in a single payment if the value of the Account, and any other plan or arrangement with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treasury Regulation section 1.409A-1(c)(2), is less than the Code Section 402(g)(1)(B) limit.

		
	6.
	Special Distribution Election on or before December 31, 2006.  Participants who are identified by the Compensation Committee, in its sole discretion, may make a special distribution election to receive a distribution of their Account in calendar year 2007 or later; provided that the distribution election is made at least twelve months in advance of the newly elected distribution date (and the previously scheduled distribution date, if any) and the election is made no later than December 31, 2006.  An election made pursuant to this Section F.6 shall be subject to any special administrative rules imposed by the Compensation Committee including rules intended to comply with Code Section 409A.  No election under this Section F.6 shall (i) change the payment date of any distribution otherwise scheduled to be paid in 2006 or cause a payment to be paid in 2006, or (ii) be permitted after December 31, 2006.

	
			
	 
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	7.
	Date Payment Occurs.  Payment shall be made or commence not later than ninety (90) days following the date the earliest Payment Event occurs.  Notwithstanding the foregoing, a distribution scheduled to be made upon Separation from Service to a Participant who is identified as a Specified Employee as of the date he or she Separates from Service shall be delayed for a minimum of six months following the Participant’s Separation from Service.  Any payment that otherwise would have been made pursuant to this Section F during such six-month period, if any, shall be paid on the first day of the seventh month following the Participant’s Separation from Service.  The identification of a Participant as a Specified Employee shall be made by the Administrator in his or her sole discretion in accordance with Section M.28 of the Plan and Code Sections 416(i) and 409A and the regulations promulgated thereunder.

		
	8.
	Prohibition on Acceleration.  Notwithstanding any other provision of the Plan to the contrary, no distribution will be made from the Plan that would constitute an impermissible acceleration of payment as defined in Code Section 409A(a)(3) and the regulations promulgated thereunder.

		
	G.
	BENEFICIARY DESIGNATION

A Participant may designate any person or entity as his or her Beneficiary, but may not designate more than one person or any person that is not a natural person without the approval of the Administrator.  Designation shall be in writing and shall become effective only when filed with McKesson.  Such filing must occur before the Participant’s death.  A Participant may change the Beneficiary, from time to time, by filing a completed beneficiary designation with McKesson in the manner prescribed by McKesson in its sole discretion.  If the Participant fails to effectively designate a Beneficiary in accordance with the Administrator’s procedures or the person designated by the Participant is not living at the time the distribution is to be made, then his or her Beneficiary shall be his or her beneficiary under the 401(k) Plan.
		
	H.
	SOURCE OF PAYMENT

Amounts paid under this Plan shall be paid from the general funds of McKesson, and each Participant and his or her Beneficiaries shall be no more than unsecured general creditors of McKesson with no special or prior right to any assets of the Company for payment of any obligations hereunder.  Nothing contained in this Plan shall be deemed to create a trust of any kind for the benefit of any Participant or Beneficiary or create any fiduciary relationship between an Employer and any Participant or Beneficiary with respect to any assets of the Company.

	
			
	 
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	I.
	MISCELLANEOUS

		
	1.
	Withholding.  Each Participant and Beneficiary shall make appropriate arrangements with McKesson for the satisfaction of any federal, state, or local income tax withholding requirements and Social Security or other employment tax requirements applicable to the payment of benefits under this Plan.  If no other arrangements are made, McKesson may provide, at its discretion, for such withholding and tax payments as may be required.

		
	2.
	No Assignment.  Except as otherwise provided in this Section I.2 or by applicable law, the benefits provided under this Plan may not be alienated, assigned, transferred, pledged, or hypothecated by any person, at any time.  These benefits shall be exempt from the claims of creditors or other claimants and from all orders, decrees, levies, garnishments or executions.

If a court of competent jurisdiction determines pursuant to a judgment, order or approval of a marital settlement agreement that all or any portion of the benefits payable hereunder to a Participant constitute community property of the Participant and his or her spouse or former spouse (hereafter, the "Alternate Payee") or property which is otherwise subject to division by the Participant and the Alternative Payee, a division of such property shall not constitute a violation of this Section I.2, and any portion of such property may be paid or set aside for payment to the Alternate Payee.  The preceding sentence, however, shall not create any additional rights and privileges for the Alternate Payee (or the Participant) not already provided under the Plan; in this regard, the Administrator shall have the right to refuse to recognize any judgment, order or approval of a martial settlement agreement that provides for any additional rights and privileges already not already provided under the Plan, including without limitation with respect to form and time of payment.
		
	3.
	Applicable Law; Severability.  The Plan hereby created shall be construed, administered, and governed in all respects in accordance with ERISA and the laws of the State of Texas to the extent that the latter are not preempted by ERISA.  If any provision of this instrument shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereunder shall continue to be effective.

		
	4.
	No Right to Continued Employment, Etc.  Neither the establishment or maintenance of the Plan nor the crediting of any amount to any Participant’s Account, nor the designation of an executive as an Eligible Executive, shall confer upon any individual any right to be continued as an employee of an Employer or shall affect the right of an Employer to terminate any executive’s employment or change any terms of any executive’s employment at any time.

	
			
	 
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	J.
	ADMINISTRATION OF THE PLAN

		
	1.
	In General.  The Plan Administrator shall be the Company’s Employee Benefits Management Committee.  If any of the members of the Employee Benefits Management Committee is a Participant, any discretionary action taken as Plan Administrator which directly affects such member of the Employee Benefits Management Committee as a Participant shall be specifically approved by the Compensation Committee; provided that the Plan Administrator shall at all times have the authority to specify the Investment Alternatives from time to time.   The Plan Administrator shall have the authority and responsibility to interpret the Plan and shall adopt such rules and regulations for carrying out the Plan as it may deem necessary or appropriate.  Decisions of the Plan Administrator or Compensation Committee shall be final and binding on all parties who have or claim any interest in the Plan.  The Plan Administrator or Compensation Committee shall have the authority to delegate its authority under the Plan to an officer or group of officers of McKesson.

		
	2.
	Elections and Notices.  All elections and notices made under this Plan shall be in writing and filed with the Administrator at the time and in the manner specified by him or her.  

		
	K.
	AMENDMENT OR TERMINATION OF THE PLAN

		
	1.
	Amendment.  The Compensation Committee may at any time, and from time to time, amend the Plan; provided that the Plan Administrator may also amend the Plan for any administrative or any other change that would be required under applicable law and that does not affect benefits under the Plan.  Unless otherwise specified, such action shall be prospective only and shall not adversely affect the rights of any Participant or Beneficiary to any benefit previously earned under the Plan.

		
	2.
	Termination.  The Board in its discretion may at any time terminate the Plan in accordance with Treasury Regulation section 1.409A-3(j)(4)(ix).

		
	L.
	CLAIMS AND APPEALS

		
	1.
	Informal Resolution of Questions.  Any Participant or Beneficiary who has questions or concerns about his or her benefits under the Plan is encouraged to communicate with the Human Resources Department of McKesson.  If this discussion does not give the Participant or Beneficiary satisfactory results, a formal claim for benefits may be made in accordance with the procedures of this Section L.

	
			
	 
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	2.
	Formal Benefits Claim – Review by Executive Vice President, Chief Human Resources Officer.  A Participant or Beneficiary may make a written request for review of any matter concerning his or her benefits under this Plan.  The claim must be addressed to the Executive Vice President, Chief Human Resources Officer, McKesson Corporation, 6555 State Hwy 161, Irving, Texas, 75039.  The Executive Vice President, Chief Human Resources Officer or his or her delegate (“CHRO”) shall decide the action to be taken with respect to any such request and may require additional information if necessary to process the request.  The CHRO shall review the request and shall issue his or her decision, in writing, no later than 90 days after the date the request is received, unless the circumstances require an extension of time.  If such an extension is required, written notice of the extension shall be furnished to the person making the request within the initial 90-day period, and the notice shall state the circumstances requiring the extension and the date by which the CHRO expects to reach a decision on the request.  In no event shall the extension exceed a period of 90 days from the end of the initial period.

		
	3.
	Notice of Denied Request.  If the CHRO denies a request in whole or in part, he or she shall provide the person making the request with written notice of the denial within the period specified in Section L.2.  The notice shall set forth the specific reason for the denial, reference to the specific Plan provisions upon which the denial is based, a description of any additional material or information necessary to perfect the request, an explanation of why such information is required, and an explanation of the Plan's appeal procedures and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

		
	4.
	Appeal to CHRO.

		
	(a)
	A person whose request has been denied in whole or in part (or such person's authorized representative) may file an appeal of the decision in writing with the CHRO within 60 days of receipt of the notification of denial.  The appeal must be addressed to:  Executive Vice President, Chief Human Resources Officer, McKesson Corporation, 6555 State Hwy 161, Irving, Texas, 75039.  The CHRO, for good cause shown, may extend the period during which the appeal may be filed for another 60 days.  The appellant and/or his or her authorized representative shall be permitted to submit written comments, documents, records and other information relating to the claim for benefits.  Upon request and free of charge, the applicant should be provided reasonable access to and copies of, all documents, records or other information relevant to the appellant's claim.

	
			
	 
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	(b)
	The CHRO's review shall take into account all comments, documents, records and other information submitted by the appellant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The CHRO shall not be restricted in his or her review to those provisions of the Plan cited in the original denial of the claim.

		
	(c)
	The CHRO shall issue a written decision within a reasonable period of time but not later than 60 days after receipt of the appeal, unless special circumstances require an extension of time for processing, in which case the written decision shall be issued as soon as possible, but not later than 120 days after receipt of an appeal.  If such an extension is required, written notice shall be furnished to the appellant within the initial 60-day period.  This notice shall state the circumstances requiring the extension and the date by which the CHRO expects to reach a decision on the appeal.

		
	(d)
	If the decision on the appeal denies the claim in whole or in part, written notice shall be furnished to the appellant.  Such notice shall state the reason(s) for the denial, including references to specific Plan provisions upon which the denial was based.  The notice shall state that the appellant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits.  The notice shall describe any voluntary appeal procedures offered by the Plan and the appellant's right to obtain the information about such procedures.  The notice shall also include a statement of the appellant's right to bring an action under Section 502(a) of ERISA.

		
	(e)
	The decision of the CHRO on the appeal shall be final, conclusive and binding upon all persons and shall be given the maximum possible deference allowed by law.

		
	5.
	Exhaustion of Remedies.  No legal or equitable action for benefits under the Plan shall be brought unless and until the claimant has submitted a written claim for benefits in accordance with Section L.2, has been notified that the claim is denied in accordance with Section L.3, has filed a written request for a review of the claim in accordance with Section L.4, and has been notified in writing that the CHRO has affirmed the denial of the claim in accordance with Section L.4.

		
	M.
	DEFINITIONS

For purposes of the Plan, the following terms shall have the meanings indicated:
1.    “401(k) Plan” shall mean the McKesson Corporation 401(k) Retirement Savings Plan.
		
	2.
	 “Account” shall mean the “Account” specified in Section F.l.

	
			
	 
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	3.
	“Additional Company Match” shall mean, with respect to any Plan Year, the amount credited to the Account of an Eligible Executive in accordance with Section E.l(a)(ii).

		
	4.
	“Administrator” shall mean the person specified in Section J.1.

		
	5.
	“Beneficiary” shall mean the person or entity described by Section G.

		
	6.
	“Board” shall mean the Board of Directors of McKesson.

		
	7.
	“Code” shall mean the Internal Revenue Code of 1986, as amended.

		
	8.
	“Company” shall mean McKesson and any affiliate that would be considered a service recipient for purposes of Treasury Regulation section 1.409A-1(g).

		
	9.
	“Compensation” shall mean “Compensation” as defined in Section 15.17 of the 401(k) Plan; provided, however, that Compensation for purposes of this Plan shall be determined without regard to the limit of Code Section 401(a)(17).

		
	10.
	“Compensation Committee” shall mean the Compensation Committee of the Board.

		
	11.
	“DCAP III” shall mean the McKesson Corporation Deferred Compensation Administration Plan III and predecessor or successor plans, if applicable.

		
	12.
	“Disability” shall mean that an individual is determined to be totally disabled by the Social Security Administration.

		
	13.
	“Discretionary Contribution” shall mean a Company contribution to a Participant’s Account made in the Compensation Committee’s discretion pursuant to Section E.2.

		
	14.
	“Eligible Executive” shall mean an employee of the Employer, or its affiliate or subsidiary, who is eligible to participate in this Plan under Section C.

		
	15.
	“Employer” shall mean McKesson and any other affiliate that would be considered a service recipient or employer for purposes of Treasury Regulation section 1.409A-1(h)(3).

		
	16.
	 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

		
	17.
	“Identification Date” shall mean each December 31.

		
	18.
	“McKesson” shall mean McKesson Corporation, a Delaware corporation.

	
			
	 
	14
	 

    

		
	19.
	“Monthly Company Match” shall mean, with respect to a calendar month, the amount credited to the Account of an Eligible Executive in accordance with Section E.1(a)(i).

		
	20.
	“Participant” shall be any Eligible Executive or former Eligible Executive for whom amounts are credited to an Account under this Plan.  Upon a Participant’s death his or her Beneficiary shall be a Participant until all amounts are paid out of the decedent-Participant’s Account.

		
	21.
	“Payment Event” shall mean the earliest of the following:  Retirement, death, Separation from Service other than due to Retirement or death, or Disability.

		
	22.
	“Plan” shall mean the McKesson Corporation Supplemental Retirement Savings Plan.

		
	23.
	“Plan Year” shall mean the calendar year.

		
	24.
	“Prior Plan” shall mean the McKesson Corporation Supplemental PSIP.

		
	25.
	“Retirement” shall mean Separation from Service from the Employer after the date on which the Participant has attained age 50 and has at least five Years of Service.

		
	26.
	“Separation from Service” shall mean termination of employment with the Employer, except in the event of death or Disability, as provided under Treasury Regulation section 1.409A-1(h)(1)(ii).  A Participant shall be deemed to have had a Separation from Service if the Participant’s service with the Employer is reduced to an annual rate that is equal to or less than twenty percent of the services rendered, on average, during the immediately preceding three years of service with the Employer (or if providing service to the Employer less than three years, such lesser period).

		
	27.
	“Service” shall mean an Eligible Executive’s employment with the Company, commencing with the first day of such employment and ending on the day the Eligible Executive has a Separation from Service. 

		
	28.
	“Specified Employee” shall mean a Participant who, on an Identification Date, is:

		
	(a)
	An officer of the Company having annual compensation greater than the compensation limit in Section 416(i)(1)(A)(i) of the Code, provided that no more than fifty officers of the Company shall be determined to be Specified Employees as of any Identification Date;

		
	(b)
	A five percent owner of the Company; or

		
	(c)
	A one percent owner of the Company having annual compensation from the Company of more than $150,000.

	
			
	 
	15
	 

    

For purposes of determining whether a Participant is a Specified Employee, Treasury Regulation section 1.415(c)-2(d) shall be used to calculate compensation.  If a Participant is identified as a Specified Employee on an Identification Date, then such Participant shall be considered a Specified Employee for purposes of the Plan during the period beginning on the first April 1 following the Identification Date and ending on the next March 31.
		
	29.
	“Year of Service” shall mean a period of 365 aggregate days of Service (including holidays, weekends and other non-working days).

N.    SUCCESSORS
This Plan shall be binding on the Company and any successors or assigns thereto.

	
			
	 
	16
	 

    

O.    EXECUTION
To record the adoption of the amended and restated Plan by the Compensation Committee of the Board of Directors of McKesson Corporation at a meeting held on July [●], 2019, effective as of such date.

McKESSON CORPORATION

	
		
	By:
	/s/ Jorge L. Figueredo

	 
	Name:  Jorge L. Figueredo
Title:   Executive Vice President, Human Resources

	
			
	 
	17
	 

    

APPENDIX A 
 
EXAMPLE OF DEFERRALS UNDER PLAN

The following example illustrates the extent to which a Participant could make deferrals under this Plan.  The example assumes that the applicable compensation limit under Code Section 401(a)(17) is $280,000.
E’s Compensation is $400,000.  E elects to make Basic Contributions under the 401(k) Plan at the rate of 5% of his Compensation.  Because Code Section 401(a)(17) limits the amount of E’s compensation which may be considered by the 401(k) Plan to $280,000 (for 2019), E’s Basic Contributions for the year are limited to $14,000 (5% of $280,000).  Accordingly, E may defer $6,000 (5% of his Compensation in excess of $280,000) into this Plan.  This deferral will then be eligible for a Monthly Company Match and an Additional Company Match based on the 401(k) Plan’s “Matching Employer Contribution” and “Additional Matching Employer Contribution” for the relevant 401(k) Plan calendar months and plan year.

	
			
	 
	A-1orbc-ex102_252.htm

 

Exhibit 10.2

 

 

EMPLOYMENT AGREEMENT

 

The parties to this Employment Agreement (the "Agreement") are Constantine Milcos (the "Executive") and ORBCOMM Inc. (the "Company"), a company organized under the laws of Delaware. 

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 Executive Vice President and Chief Financial 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 offices in New Jersey or such other location in the eastern United States as the Company shall determine.

2.Term of Employment.  The term of this Agreement shall commence as of November 1, 2019 (the "Effective Date") and shall continue through December 31, 2019 (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 $280,000.  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 during the Term, beginning with the 2019 calendar year, the Executive shall also be eligible to receive a bonus (the "Bonus") with a target opportunity equal to up to 75% of Base Salary (the "Target Bonus"), and subject to a maximum bonus payment in an amount, 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 in any case no later than the earlier of (i) 30 days after the completion 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 by the Company 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(c) 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"), equivalent to those benefits provided to the Company's executives generally, 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.  To the extent the Company maintains a director's and officer's liability insurance policy, the Executive shall be covered by such policy to the same extent as the Company's other senior officers (however, nothing in this Agreement shall require the Company to maintain such a policy).  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. 

(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 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 in accordance with the Company’s policies as in effect from time to time.

(f)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.  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 timeframe 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) shall be construed as an admission that any such leave in excess of the said timeframe mentioned above is not reasonable as an accommodation.  This Section 4(a) shall not 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)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 and until (a) he shall have received written notice from the Company advising him of the specific acts or omissions alleged to constitute "cause" and (b) in the case of (i) negligence by the Executive in the performance of his duties, or (ii) the Executive's material breach of this Agreement, and in the case of those acts or omissions that are reasonably capable of being corrected, those acts or omissions continue uncorrected for fifteen (15) days after he shall have received written notice to correct them.

As used in this Agreement, termination with "cause" shall mean only the Executive's involuntary termination for reason of: (i) negligence by the Executive in the performance of his services under this Agreement; (ii) embezzlement by the Executive from the Company; (iii) conviction of, or plea of guilty or no contest to, a felony; (iv) any action or 

3

 

omission by the Executive that is injurious to the financial condition or business reputation of the Company; or (v) the Executive's material breach of this Agreement.

(d)Termination by the Executive.  The Executive shall have the right to terminate his employment with the Company by providing at least two (2) months of advance written notice of such decision.  Upon the receipt of such notice from the Executive, the Company may in its sole discretion accelerate such two-month period in order to make such termination effective sooner, and/or may withdraw any and all duties from the Executive and exclude him from the Company's premises during the notice period.

(e)Severance.  If the Company terminates the Executive's employment without "cause" pursuant to Section 4(c) above (other than following a Change of Control, which is subject to Section 5) or 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, 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 sixtieth (60th) day following the Executive's termination of employment, the Executive shall be entitled to receive the following severance benefits: (i) as severance payments, the sum of (A) one (1) year of his then Base Salary and (B) the amount equal to the Executive's Target Bonus for the calendar year in which the Executive's termination of employment occurs, payable over a twelve (12) month period 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 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 of 1986, as amended (the "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) (the "COBRA Payments").  If the Company terminates the Executive's employment pursuant to Section 4(a) above, then, subject to the  Executive's execution of the Release and the Release becoming effective in accordance with its terms not later than the sixtieth (60th) day following the Executive's termination of employment, the Executive shall be entitled to receive the following severance benefits: (i) one (1) year of his then Base Salary, payable over a twelve (12) month period in accordance with the Company's payroll schedule in effect from time to time (the "Disability Severance Payments"), and (ii) the COBRA Payments.  Such Severance Payments, Disability Severance Payments, and COBRA Payments shall be the Executive's sole entitlement upon termination of employment pursuant to Sections 4(a) or 4(c) above, as applicable. Notwithstanding the foregoing, if the Company's payments under Section 4(e)(ii) (and under Section 5(ii) below) would violate the nondiscrimination rules applicable to non-grandfathered, insured group plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the parties agree to reform Section 4(e)(ii) (and Section 5(ii) below) in a manner as is necessary to comply with the ACA.

4

 

Subject to the last paragraph of this Section 4(e), the Severance Payments or the Disability Severance Payments, and the COBRA Payments or the Enhanced COBRA Payments (as defined in Section 5 below) will commence on the sixtieth (60th) day following the Executive's termination of employment with the first payment inclusive of any payments that would have been otherwise payable during such initial sixty (60)-day period.  Subject only to the Executive's delivery of an executed Release and such Release becoming effective within the provided sixty (60)-day period, the Company's obligation under this Section 4(e) 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(b) above, if the Company terminates the Executive's employment with "cause" pursuant to Section 4(c) above, if the Executive terminates his employment pursuant to Section 4(d) 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, Severance Payments, Disability Severance Payments, COBRA Payments, Enhanced Severance Payment (as defined in Section 5 below), or Enhanced COBRA Payments (as defined in Section 5 below) 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 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 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 (6) 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 (6)-month period but were not made 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 and the Executive's employment with the Company is terminated by the Company without "cause" pursuant to Section 4(c) above within the eighteen (18) month period immediately following such Change of Control, then, subject to the Release requirement of Section 4(e) above and the Release becoming effective in accordance with its terms not later than the sixtieth (60th) day following the Executive's termination of employment, the Executive shall be entitled to receive the following severance benefits as a result of this Section 5: (i) as severance payments, an amount equal to one and one-half (1-1/2) times the sum of the Executive's then Base Salary and Target Bonus for the calendar year in which the Executive's termination of employment occurs (the "Enhanced Severance Payment") in lieu of the Severance Payments set forth in Section 4(e) 

5

 

above and (ii) to the extent the Executive timely elects continuation of coverage, the continued health insurance coverage at then existing employee contribution rates described in Section 4(e)(ii) for a period of eighteen (18) months in lieu of the one (1) year period set forth under Section 4(e)(ii) above (the "Enhanced COBRA Payments"). The Enhanced Severance Payment shall be payable in a lump sum on the sixtieth (60th) day following the Executive's termination of employment.  The Enhanced COBRA Payments will commence on the date and in the manner set forth under Section 4(e) 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" has the meaning set forth under the ORBCOMM Inc. 2016 Long Term Incentives Plan. 

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, suppliers and shareholders.  The Executive further acknowledges that over the course of his employment with the Company, he has and will continue to (i) develop special relationships with clients, employees, suppliers, and/or shareholders 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 contract, or 

6

 

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 the 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 or its subsidiaries within six (6) 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.

(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) to the contrary, (i) 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 and (ii) the Executive (or the Executive's attorney) will be permitted to respond to any inquiry about this Agreement or its underlying facts and circumstances by the Securities and Exchange Commission ("SEC"), the Financial Industry Regulatory Authority ("FINRA"), any other self-regulatory organization or governmental entity, and to make other disclosures that are protected under the whistleblower provisions of federal law or regulation, in each case of this clause (ii), without the prior authorization of the Company to make any such reports or disclosures and without any requirement to notify the Company that the Executive has made such reports or disclosures; provided that the Executive shall not receive any recovery of funds under such whistleblower provisions.

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 

7

 

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, mobile devices, other electronic equipment, records, data, client lists and 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, past or future products or services, and that are conceived, developed, contributed to, made, or reduced to practice by the 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 each jurisdiction in which enforcement is sought.  If any of the restrictions contained or referenced in this Section 6 is for any reason held by an arbitrator or a court to be excessively broad as to duration, activity, geographical scope, or subject, then, 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 applicable law.

(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.  In addition, upon a material breach by the Executive of any part of this Section 6, without limiting any other remedies available to the Company, the Company will not have any obligation to pay or provide the Severance Payments, 

8

 

the Enhanced Severance Payment, the Disability Severance Payments, the COBRA Payments, and the Enhanced COBRA Payments, as applicable.  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.

(i)Severance Payments.  If the Company fails to make severance payments to the Executive that are required under Section 4(e) and Section 5 above, then the provisions of Sections 6(b) and 6(c) above shall automatically terminate and shall no longer be binding upon the Executive after the date that the Company fails to make any severance payments required under Section 4(e) and Section 5 above.  Nothing in this Section 6(i) shall be deemed to limit the Executive's remedies at law or equity for any breach by the Company of its obligation to make severance payments pursuant to Section 4(e) and Section 5 above.

(j)Company Policies.  (i) The Executive agrees to comply with the terms of the Company's policies and practices, including the Company's Employee Handbook, as it exists from time to time, and (ii) all amounts payable under this Agreement shall be subject to any compensation recoupment policy adopted by the Company to comply with applicable law or to comport with good corporate governance practices, as determined by the Board in its sole discretion, including, but not limited to, the Executive Incentive Compensation Recoupment Policy, as such policy or policies may be amended from time to time. 

7.Arbitration.  Except as provided in Section 6(h) above, any dispute or controversy between the parties hereto, whether during the Term or thereafter, including without limitation, any and all matters relating to this Agreement, the Executive's employment with the Company and the cessation thereof, shall be settled by arbitration administered by the American Arbitration Association ("AAA") in New York, NY pursuant to the AAA's National Rules for the Resolution of Employment Disputes (or their equivalent), which arbitration shall be confidential, final, and binding to the fullest extent permitted by law.  The parties agree to waive their right to a trial by jury and agree that they will not make a demand, request or motion for a trial by jury or court.  This agreement to arbitrate shall be binding upon the heirs, successors, and assigns and any trustee, receiver, or executor of each party.  A party shall initiate the arbitration process by delivering a written notice of such party's intention to arbitrate to the other party at the address set forth above and by filing the appropriate notice with the AAA.  The parties shall select an arbitrator by mutual agreement, within thirty (30) days after the written notice of intention to arbitrate is received, from a list of eligible arbitrators received from the AAA who are on its Employment Dispute Resolution roster (or the equivalent thereof).  If the parties fail to agree on an arbitrator, the AAA Administrator or his/her delegate shall select an arbitrator, who is a member of the AAA's Employment Dispute Resolution roster (or the equivalent thereof). There shall be one arbitrator.  The arbitrator shall have the authority to resolve all issues in dispute, including the arbitrator's own jurisdiction, whether any dispute must be arbitrated hereunder, and whether this Section 7 is void or voidable, and to award compensatory remedies and other remedies permitted by law.  The arbitrator shall decide the matters in dispute in accordance with the governing law provisions of this Agreement, except that the parties agree that this agreement to arbitrate shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1, et 

9

 

seq.  The award of the arbitrator shall be final and shall be the sole and exclusive remedy between the parties regarding any claims, counterclaims, issues, or accountings.  The arbitrator in any such dispute shall have discretion to award attorneys’ fees and costs as part of any resolution of a claim arising under this Agreement.  Except as otherwise provided by the arbitrator or applicable law, each party hereto shall be responsible for paying its own attorneys’ fees and costs incurred in connection with any dispute between the parties.  To the extent inconsistent with the form of arbitration agreement that the Company's employees generally are required to enter into, including the Executive, the arbitration provisions of this Section 7 shall control.  Otherwise, to the extent compatible, effect shall be given to both the arbitration provisions of this Section 7 and the Company's form of arbitration agreement that the Executive has executed or will be required to execute. 

8.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 (5) 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).

(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.

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. 

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(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 the State of New Jersey, without giving effect to its conflict of laws principles.

(f)Section 280G.  Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment or benefits received in connection with a Change of Control or the Executive's termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement, or otherwise) (all such payments collectively referred to herein as the "280G Payments") constitute "parachute payments" within the meaning of Section 280G of the Code and will be subject to the excise tax imposed under Section 4999 of the Code (the "Excise Tax"), the Company shall either (i) reduce (but not below zero) such payments or benefits received or to be received by the Executive so that the aggregate present value of the payments and benefits received by the Executive is $1.00 less than the amount which would otherwise cause the Executive to incur an Excise Tax, or (ii) be paid in full, whichever results in the greatest net after-tax payment to the Executive.  All calculations and determinations under this Section 8(f) shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the "Tax Counsel") whose determinations shall be conclusive and binding on the Company and the Executive for all purposes. For purposes of making the calculations and determinations required by this Section 8(f), the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and the Executive shall furnish the Tax Counsel with such information and documents as the Tax Counsel may reasonably request in order to make its determinations under this Section 8(f). The Company shall bear all costs the Tax Counsel may reasonably incur in connection with its services. 

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this document as of the 29th day of October, 2019 to be effective as of the Effective Date.

		
	
ORBCOMM INC.
	
/s/ Constantine Milcos

	
By: /s/ Christian Le Brun
	
Constantine Milcos

	
Name: Christian Le Brun
	
 

	
Title: EVP & General Counsel
	
 

 

 

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EXHIBIT A -- GENERAL RELEASE

FOR AND IN CONSIDERATION OF the severance benefits set forth in the employment agreement (the "Employment Agreement") to which this General Release is attached, I, Constantine Milcos, 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 Equal Pay Act of 1963 as amended, 29 U.S.C. §§ 206 et seq., the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq., the Civil Rights Act of 1991, as amended, the Uniform Services Employment and Reemployment Rights Act, as amended, the Immigration Reform and Control Act, as amended, the Virginia Human Rights Act, as amended, Va. Code Ann. §§ 2.1-714 et seq., the Virginia Persons with Disabilities Act, as amended, Va. Code Ann. §§ 51.5-1 et seq., the New Jersey Law Against Discrimination, as amended, N.J. Stat. Ann. §§ 10:5-1 et seq., the New Jersey Conscientious Employee Protection Act, as amended, N.J. Stat. Ann. §§ 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 acknowledge and agree to abide by the continuing obligations set forth in Section 6 of the Employment Agreement; provided that I  (or my attorney) will be permitted to respond to any inquiry about the Employment Agreement or its underlying facts and circumstances by the Securities and Exchange Commission ("SEC"), the Financial Industry Regulatory Authority ("FINRA"), any other self-regulatory organization or governmental entity, and to make other disclosures that are protected under the whistleblower provisions of federal law or regulation, without the prior authorization of the Company to make any such reports or disclosures and 

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without any requirement to notify the Company that I have made such reports or disclosures; provided that I shall not receive any recovery of funds under such whistleblower provisions.

 

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; provided, however, that this General Release does not release or discharge any claims that I may have against the Company for breach of its obligation to make severance payments to me after the termination of my employment in accordance with Section 4(e) and Section 5 of the Employment Agreement to which this General Release is attached. 

 

Except as to any claims that I may file for any breach by the Company of Section 4(e) or Section 5 of the Employment Agreement to which this General Release is attached, 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 __________________________________. 

 

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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.

 

_______________________________________________

Constantine MilcosDate

 

					
	
STATE OF __________________
	
)
	
 
	
	
 
	
:
	
ss.: _______________________
	
	
COUNTY OF _______________
	
)
	
 
	
	
On the ___ day of ___________________ in the year 20__, before me, the undersigned, personally appeared Constantine Milcos, 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

 

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