Document:

ex10-1.htm

    

      

      

      

      

      

      HUGHES
NETWORK SYSTEMS, LLC

      LONG-TERM
CASH INCENTIVE RETENTION PROGRAM

      

      May
7, 2008

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      HUGHES
NETWORK SYSTEMS, LLC

      LONG-TERM
CASH INCENTIVE RETENTION PROGRAM

      

      This
Hughes Network Systems, LLC
Long-Term Cash Incentive Retention Program (the “Plan”) amends and
restates the Hughes Network Systems, LLC Long Term Cash Bonus Incentive Program
dated as of April 22, 2005, for eligible employees of Hughes Network Systems,
LLC (the “Company”) and its subsidiaries.  The plan is a long-term
cash incentive retention program designed to compensate a select group of
significant contributors chosen by the Company after a four-year performance
period.

      

      
        	
                ·  

              	
                Definitions.   Certain
      capitalized terms not otherwise defined herein shall have the definitions
      ascribed to such terms in Appendix A attached
      hereto.

              

      

      

      
        	
                ·  

              	
                Administration.  The
      Company has the full power, authority and discretion to construe,
      interpret and administer the Plan.  Any person who accepts any
      award hereunder agrees to accept as final, conclusive, and binding all
      determinations of the Company.  The Company may delegate
      authority to its Senior Vice President of Human Resources and
      Administration in respect to the day-to-day administration of the Plan,
      including, but not limited to, the
following:

              

      

      

      
        	
                (a)  

              	
                administrative,
      nondiscretionary functions with respect to documentation, record keeping
      and implementation,

              

      

      
        	
                (b)  

              	
                the
      enforcement of the terms of the Plan or of rights and obligations of the
      participants and the Company under the Plan or under agreements entered
      into pursuant to the Plan

              

      

      

      
        	
                ·  

              	
                Participation.  Subject
      to such additional limitations or restrictions as the Company may impose,
      the term “employees” shall mean:

              

      

       

      
        	
                o  

              	
                persons
      who are employed by the Company or any subsidiary
  thereof.

              

      

       

      For
purposes of the Plan, the term “subsidiary” means:

       

      
        	
                o  

              	
                a
      corporation in which the Company owns, directly or indirectly, capital
      stock having ordinary voting power to elect a majority of the board of
      directors, or

              

      

       

      
        	
                o  

              	
                any
      unincorporated entity in which the Company can exercise, directly or
      indirectly, comparable control.

              

      

       

      The
Company may determine the following:

       

      
        	
                o  

              	
                when,
      and under what circumstances, an employee shall be included as a
      Participant in the Plan,

              

      

       

      
        	
                o  

              	
                when,
      and under what circumstances, any individual has terminated employment for
      purposes of the Plan, and

              

      

       

      
        	
                o  

              	
                the
      extent to which the term “employees” includes former employees and any
      beneficiaries thereof.

              

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
        	
                ·  

              	
                Long
      Term Cash Incentive Bonus.  Subject to the terms and
      conditions of the Plan, each Participant who remains continuously employed
      by the Company through the Vesting Date shall be entitled to receive the
      long term incentive bonus in the amount set forth in such individual’s
      participation notice (the “Incentive Bonus”), provided the Company
      successfully attains its Adjusted EBITDA goal of $150 million in
      2008.  Subject to the terms and conditions of the Plan, in the
      event the Company attains Adjusted EBITDA for 2008 of less than its goal
      of $150 million but at least 85% of its goal ($127.5 million), then at
      least 10% of the Incentive Bonus would be payable.  The
      percentage of Incentive Bonus payable would increase lineraly from 10% to
      100% as the percentage of Adjusted EBITDA attained increases lineraly from
      85% to 100% of the Adjusted EBITDA goal.  A few examples are set
      forth in the following chart:

              

      

       

      
      

       

       

      
        	 	
                %
      of Adjusted EBITDA

                Achieved

              	
                $
      Adjusted EBITDA 

                Achieved

              	
                %
      of Incentive Bonus 

                Payment

              	 
	 	
                85%

              	
                $127.5M

              	
                10%

              	 
	 	
                90%

              	
                $135M

              	
                40%

              	 
	 	
                95%

              	
                $142.5M

              	
                70%

              	 
	 	
                100%

              	
                $150M

              	
                100%

              	 

      

      

       

      All
payments of an Incentive Bonus (in full or in part) shall be made in the form of
a lump-sum cash award on the Vesting Date or as soon as practicable thereafter,
but in no event more than 30 days after the Vesting Date.  No
Incentive Bonus shall be payable in the event the Company's Adjusted EBITDA for
2008 is less than $127.5 million.

       

      
        	
                ·  

              	
                Termination of
      Employment.

              

      

       

      
        	
                a)  

              	
                Voluntary Termination Before
      Vesting Date.  If prior to the Vesting Date a Participant
      retires or voluntarily terminates his or her employment, or his or her
      employment ceases for any reason or circumstance not identified in (b) or
      (c) below, the Participant shall not have any right to receive any portion
      of the long-term cash award.

              

      

       

      
        	
                b)  

              	
                Termination due to death or
      layoff.  If the Company or a subsidiary thereof
      terminates a Participant other than for cause, or the Participant dies, in
      each case prior to December 31, 2008, the Participant does not have any
      right to receive any portion of the long-term cash award.  If
      the Company or a subsidiary thereof terminates a Participant other than
      for cause, or the Participant dies, in each case after December 31, 2008,
      the Participant shall be entitled to receive the Incentive Bonus (or
      percentage thereof payable in accordance with the foregoing), payable in
      the form of a lump-sum cash payment as soon as practicable on or about the
      date on which Incentive Bonuses (or portions thereof) are paid to
      Participants who remain employed by the Company, provided the Company
      successfully attains Adjusted EBITDA for 2008 in an amount sufficient to
      cause payment of part or all of the Incentive
  Bonus.

              

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	
                c)  

              	
                Dismissal for
      Cause.  If the Company or a subsidiary thereof dismisses
      a Participant for cause prior to the Vesting Date, the Participant will
      forfeit the entire Incentive Bonus as of the date of such termination of
      employment.  Such Participant will not receive any consideration
      in respect of the cancellation of the Incentive
  Bonus.

              

      

       

      
        	
                ·  

              	
                No
      Right To Continued Employment.  Nothing contained in the
      Plan shall (i) confer upon any participant any right to continue in the
      employ of the Company, (ii) constitute any contract or agreement of
      employment, (iii) interfere in any way with the right of the Company to
      terminate a Participants employment at any time, with or without cause, or
      (iv) affect in any way a Participant’s rights under any plan or agreement
      with the Company, including, without limitation, any employment or
      severance agreement between the Participant and the
    Company.

              

      

       

      
        	
                ·  

              	
                Taxes.  All
      amounts payable hereunder shall be subject to applicable federal, state
      and local tax withholding.

              

      

       

      
        	
                ·  

              	
                Unsecured
      General Creditors.  Participants and their beneficiaries,
      heirs, successors, and assigns shall have no legal or equitable rights,
      interests or claims in any property or assets of the
      Company.  For purposes of the payment of benefits under the
      Plan, any and all of the Company’s assets shall be, and remain, the
      general, unpledged unrestricted assets of the Company.  The
      Company’s obligations under the Plan shall be merely that of an unfunded
      and unsecured promise to pay money in the
  future.

              

      

       

      
        	
                ·  

              	
                Effective
      Date.  The effective date of the Plan is April 22,
      2005.

              

      

       

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Appendix
A

       

      DEFINITIONS

       

      

       

      “Company” means Hughes Network
Systems, LLC and its subsidiaries.

       

      

       

      “Adjusted
EBITDA” means
EBITDA (earnings before interest, taxes, depreciation and amortization) further
adjusted to exclude certain adjustments consistent with the definitions used in
calculating the Company's covenant compliance under its credit agreements and
bond indenture.

       

      

       

      “Incentive
Bonus” means a
right granted to an eligible employee to receive the long-term incentive
compensation subject to the terms of the Plan.

       

      

       

      “Participant” means an employee designated
by the Company as a participant in the Plan.

       

      

       

      “Vesting
Date” means the
four year anniversary of the Effective Date.Exhibit
            10.1     

            

REVISED SEPARATION AGREEMENT AND COMPLETE RELEASE OF LIABILITY

 

	
            1.
 	
            PARTIES:
 

JAMES METZGER (“METZGER”), and Energy Conversion Devices, Inc., Ovonic Battery Company and United Solar Ovonic, LLC and their subsidiaries, divisions, affiliates and joint ventures (collectively referred to as “ECD”), have mutually agreed to change their employment relationship and to provide certain benefits when employment is to be terminated at a future date.

	
            2.
 	
            CONSIDERATION:
 

ECD will provide the following benefits as a result of the resignation of METZGER from his position of Executive Vice President of ECD, effective December 31, 2007.

	
             
 	
            A.
 	
            MANAGEMENT REPRESENTATIVE TO COBASYS:
 

METZGER will continue to provide services on behalf of ECD in the capacity as an ECD representative to the Management Committee of COBASYS LLC (“COBASYS”) and to assist management in connection with the potential sale or dissolution of COBASYS (in such capacity as the “ECD Representative”).  This representative position shall be without further compensation beyond the terms of this Agreement and METZGER will serve at the pleasure of the President and CEO of ECD.  METZGER will work out of his home in Connecticut and will be reimbursed for ordinary and necessary business expenses within the guidelines of ECD, including travel expenses.  Ordinary business expenses do not include home office expenses, cell phone expenses or first class travel expenses.  All expenses must be approved and reimbursement sought through submission of business expenses with required documentation to
ECD.  METZGER will resign his position of Executive Vice President with ECD effective December 31, 2007.

	
             
 	
            B.
 	
            STOCK OPTIONS AND STOCK AWARDS: 
 

Attached as Schedule A is a complete list of the stock options and stock awards granted to METZGER and outstanding as of the date hereof.   Subject to the vesting set forth below, such stock options and stock awards will continue in effect and be exercisable from and after December 31, 2007 and for so long as METZGER continues to serve as an ECD Representative, and such service shall be counted towards the vesting schedule of such stock options and stock awards, as provided in and pursuant to the terms of such stock options and stock awards; provided, however, that there is no guarantee that the vesting requirements will be met with continued service through the vesting 

 

period.  METZGER’s right to exercise his options shall expire 90 days following his termination as the ECD representative on the COBASYS Management Committee.

The parties acknowledge that on May 2, 2007 ECD awarded METZGER 8,352 shares of restricted stock under the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan (the “2007 Restricted Stock Award”).  ECD will vest 2,784 shares of the 2007 Restricted Stock Award effective as of the date of this Agreement.

	
             
 	
            C.
 	
            TERMINATION OF OTHER EMPLOYEE BENEFITS:
 

All other benefits, including but not limited to, Company-paid life insurance, supplemental life insurance, dependent life insurance, Company-paid accidental death and dismemberment insurance, short-term and long-term disability plans, vacation accrual, etc., cease on December 31, 2007.  The supplemental life insurance benefit may be subject to conversion rights.  These policies may be converted to individual policies.  Conversion forms will be sent to METZGER’S home by the insurance carrier if METZGER meets the eligibility requirements.  

	
             
 	
            D.
 	
            VACATION ACCRUAL:
 

METZGER will be paid accrued but unused vacation pay in the first payroll period in January 2008.  METZGER will not be eligible for further vacation pay during the period of his service as an ECD Representative.

	
            3.
 	
            RELEASE OF CLAIMS:
 

In consideration of the terms set forth in this Agreement, METZGER agrees to release ECD, including Ovonic Battery Company and United Solar Ovonic, LLC and all of their subsidiaries, divisions, affiliates, joint ventures, shareholders, officers, directors, employees, insurers and agents of ALL* liability in connection with METZGER’S employment, change in position or separation, including, but not limited to, any and all claims under federal or state laws for discrimination or wrongful discharge, including the Age Discrimination in Employment Act, (“ADEA”), the Worker Adjustment and Retraining Notification Act (“WARN”) (even if the WARN Act is triggered following METZGER’S termination).  METZGER waives all rights to file a Complaint under the ECD Mandatory Complaint Procedure.

 

_________________________

 

	
            *
 	
            A representative listing of potential laws governing the employment relationship which are being released by the employee is attached as Exhibit "A."  This is not intended to be an exhaustive list, but rather the types of claims and the extent to which they are being released.
 

 

 

4.        CONFIDENTIAL AND PROPRIETARY INFORMATION:

METZGER acknowledges that during the course of his employment, he has been entrusted with certain business, financial, technical, personnel and other proprietary information and materials that are the property of ECD.  METZGER agrees not to communicate or disclose to any third party or use for his own account, without written consent of ECD, any of the aforementioned information or material, except as required by law, unless and until such information or material becomes generally available to the public through sources other than METZGER.  METZGER will return to ECD the originals and all copies of any business records of ECD which are or were subject to his custody or control, regardless of the sources from which such records were obtained.  METZGER will certify that to the best of his knowledge and belief and after diligent search and inquiry, he has done so.  In addition, all business
equipment shall be returned unless specifically agreed in writing otherwise by ECD.

	
            5.
 	
            NON-DISPARAGEMENT:
 

METZGER will not disparage, discredit or otherwise treat in any detrimental manner, ECD or any of its division, subsidiaries, affiliates, joint ventures, officers, directors and employees.  METZGER will forfeit any right to receive the benefits described above if METZGER engages in deliberate conduct or makes public statements detrimental to the business or reputation of ECD.

	
            6.
 	
            REFERENCE REQUESTS:
 

Upon receipt of a reference request directed to the Human Resources Department, ECD will only release dates of employment, job positions held and salary if requested.

	
            7.
 	
            NON-SOLICITATION:
 

METZGER agrees that during the period he serves as an ECD Representative and for a period of twelve (12) months thereafter, METZGER will not, directly or indirectly, on behalf of himself or any other person or entity, without the prior written approval of ECD directly or indirectly (i) induce any person or entity to leave his or her employment with ECD, terminate an independent contractor relationship with ECD or terminate or reduce any contractual relationship with ECD; or (ii) induce or influence any customer, supplier or other person that has a business relationship with ECD or any subsidiary, division, affiliate or joint venture of ECD to discontinue or reduce the extent of such relationship.  The Parties agree that the determination of the amount of damages to ECD would be difficult to determine and, therefore, the Parties agree that should METZGER violate this Paragraph, METZGER will
pay as liquidated damages 33% of the solicited METZGER’S annualized base pay in a lump sum irrespective of the amount of time solicitated METZGER remains employed.  This provision for liquidated damages shall not preclude the right of ECD to seek equitable relief 

 

through the issuance of an injunction prohibiting employment of the solicited employee or further action by METZGER to interfere with the business relationship with any customer or supplier.

	
            8.
 	
            NON-COMPETITION:
 

METZGER agrees that for the period during the period in which he serves as an ECD Representative and for a period of twelve (12) months thereafter, he will not, directly or indirectly, on his behalf or any other person or entity, without the prior written approval of ECD, own, manage, operate, join, control, be employed by, assist, consult or participate in the ownership, management, operation or control of, or be connected in any manner, including but not limited to holding the positions of shareholder, director, officer, consultant, independent contractor, employee, partner or investor ( other than an investment of not more than five percent (5%) of the stock or equity of any corporation the capital stock of which is publicly traded or 5% of any limited partnership or other entity), with any Competing Enterprise without first getting prior written consent from ECD.  “Competing
Enterprise” means any person, corporation, partnership or other entity engaged in whole or in part in a business which is in competition with ECD and its divisions, subsidiaries, affiliates and joint ventures as of the date that employment with ECD terminates.

The restrictions in this Paragraph shall apply to the following geographic areas:  North America including the United States, Canada and Mexico.  METZGER agrees that the restrictions in this Paragraph are reasonable.  METZGER also agrees to provide any prospective employer with a copy of the non-competition paragraph of this Agreement.  In addition, the Parties agree that ECD shall be entitled to recover, as liquidated damages, all after-tax earnings of METZGER derived from violation of this Paragraph.  This provision for liquidated damages shall not preclude the right of ECD to seek equitable relief through the issuance of an injunction prohibiting employment of METZGER in violation of this Agreement.  In addition, the time period specified in this Non-competition paragraph shall be extended for the period of violation.

	
            9.
 	
            INDIVIDUAL AGREEMENT:
 

METZGER acknowledges that the consideration he is receiving pursuant to this Agreement is not part of a plan or program and has been individually negotiated between the Parties and that he is not entitled to additional severance pay beyond the terms of this Agreement.

	
            10.
 	
            TIME PERIOD FOR REVIEW OF AGREEMENT:
 

METZGER will have an opportunity of forty-five (45) calendar days to review this Agreement and is advised to consult with an attorney of METZGER’S choosing at his own expense.  If this Agreement is not signed by the end of the forty-five (45) day review period, the offer will expire.  No benefits provided by this 

 

Agreement will be made until the Agreement is signed and the seven (7) day revocation period has expired.  

	
            11.
 	
            UNDERSTANDING OF AGREEMENT:
 

METZGER acknowledges that he has read this entire Agreement, that he has had the opportunity to consult with counsel at his own expense, and that he understands all of its terms and knowingly and freely enters into the Agreement.  METZGER further acknowledges that he has been afforded forty-five (45) calendar days to consider this Agreement from the date of receipt of this Agreement, has been advised to seek review of this Agreement by an attorney at METZGER’S own expense, and that he has seven (7) calendar days after its execution to revoke the Agreement.

	
            12.
 	
            ENTIRE AGREEMENT:
 

This Revised Separation Agreement and Complete Release of Liability, together with any previously signed confidentiality, non-solicitation, patent and non-compete agreements, constitutes the complete and entire Agreements between the Parties relating to the termination of the employment relationship and supersedes any and all previous agreements, representations or understandings regarding termination of benefits.  These Agreements may not be changed, modified or terminated unless such changes are made in writing and signed by both Parties.  Any previously signed confidentiality, non-solicitation, patent, or non-compete agreement shall remain in effect following termination of the employment relationship and execution of this Agreement.

	
            13.
 	
            SEVERABILITY:
 

Should any portion of this Agreement be ruled invalid, it shall not affect the remaining provisions of this Agreement, which shall remain in full force and effect.

	
            14.
 	
            REAFFIRMATION OF AGREEMENT:
 

In order to receive the benefits of this Agreement METZGER will be required to re-sign the Agreement, including the full and complete release of liability, following his termination as an ECD Representative.

	
            15.
 	
            GOVERNING LAW:
 

The Parties agree that any disputes regarding this Revised Separation Agreement shall be governed by the laws of the State of Michigan.

 

	
            16.
 	
            ARBITRATION OF DISPUTES:
 

The Parties agree that any dispute over the terms of this Agreement or its enforcement shall be resolved exclusively by final and binding arbitration pursuant to the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association.  The award of the arbitrator may be filed in the appropriate federal or circuit court in the state in which the employee was employed.  ECD and METZGER retain the right to seek equitable relief pending the outcome of the arbitration proceedings with jurisdiction and venue agreed to by the Parties in Oakland County Circuit Court.

IN WITNESS WHEREOF, we have set our hands the day and year first written below.

 

	
                                                                                                            
 	
             
 	
            /s/ James Metzger
 
	
            Dated: 2/4/2008
 	
             
 	
            JAMES METZGER
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
            ENERGY CONVERSION DEVICES, INC.
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Art Roger
 
	
            Dated: 24 Jan. 2008
 	
             
 	
            Art Rogers
 
	
             
 	
            Its:
 	
            V.P., Human Resources & Administration

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]