Document:

exv10w1

 

EXHIBIT 10.1

EXECUTIVE RELOCATION AGREEMENT

August 7, 2003

Mr. Ronald J. Grabe

13302 East Country Shadows

Chandler, Arizona 85249

Dear Ron:

This letter agreement (the “Agreement’) sets forth certain compensation terms
described below that Orbital Sciences Corporation (the “Company”) agrees to
provide to you in connection with your temporary relocation to Chandler,
Arizona. This Agreement is not an employment contract nor does it alter your
status as an at-will employee of the Company who may resign or be terminated at
any time, with or without cause.

1.     Relocation. At the Company’s request, you have agreed to extend your
relocation assignment in Chandler, Arizona for a minimum period of two (2)
years commencing June 1, 2003. The monthly relocation benefits provided to you
pursuant to the relocation memorandum dated April 23, 2002 from J.R. Thompson
to you (the “Relocation Memorandum”) shall cease upon the effective date set
forth herein and be superceded by the terms and conditions of this Agreement.
The Relocation Memorandum shall expire in its entirety upon the sale of your
Chandler home and reimbursement to the Company of the initial down payment
pursuant to the terms of the memorandum.

2.     Term. This Agreement is effective as of the date written above and
shall remain in effect until the earlier of (i) the date on which your
relocation assignment to Chandler, Arizona is terminated by the Company, in its
sole discretion, or (ii) you are no longer employed as an executive officer of
the Company.

3.     Special Cash Bonuses. In connection with your extended relocation,
you shall receive the special cash bonuses outlined below, subject to the
approval of the Company’s Human Resources and Nominating Committee. This
Section 3 shall not become effective unless and until such consent has been
received.

       (a)    You shall receive a special cash bonus in the amount of $103,000.00
promptly following the effective date of this Section 3.

 

 

         
(b)    On June 1, 2005, you shall be entitled to receive a special cash bonus
in the amount of $65,000.00, provided, however, that you must be relocated and
employed by the Company in Chandler, Arizona on the date that the special cash
bonus is due under this Section 3 in order to receive it, unless your
employment was previously terminated under any of the following circumstances:

		
	 	     (i) by reason of death or Disability (as defined in your Executive
Employment Agreement),
	 
	 	     (ii) by the Company for any reason other than for Cause, as defined
in your Executive Employment Agreement,
	 
	 	     (iii) by you for Good Reason, as defined in your Executive
Employment Agreement, or
	 
	 	     (iv) immediately prior to or at any time after a Change in Control
(as defined in the Executive Employment Agreement) (A) by the Company
other than for Cause (as defined in the Executive Employment Agreement)
or (B) by you for Good Reason (as defined in the Executive Agreement).

       (c)      The special cash bonuses provided for in this Section 3 and Section 4
below shall not be taken into account when calculating any payments due under
your Executive Employment Agreement.

4.     Monthly Bonuses. Subject to the approval of the Company’s Human
Resources and Nominating Committee and your continued employment with the
Company, you shall receive a special monthly cash bonus in the amount of
$8,600.00 for each month in which you are relocated and employed, at the
Company’s request, in Chandler, Arizona.

5.     Taxes. All payments required to be made by the Company hereunder to
you shall be subject to the withholding of such amounts relating to federal,
state, local or foreign taxes as the Company reasonably may determine it should
withhold pursuant to any applicable law or regulation.

6.     Relocation Expenses. The Company shall reimburse you for relocation
expenses in accordance with Exhibit A hereto, which replaces in its
entirety Attachment A to the Relocation Memorandum.

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7.     Successors; Binding Agreement.

        (a)    This Agreement shall be binding upon and inure to the benefit of and
be enforceable by your personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees. If you
should die while any amount would still be payable to you hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to your devisee, legatee or other designee or if there
is no such designee, to your estate.

8.     Notice. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by registered mail,
return receipt requested, postage prepaid, addressed (i) if to the Company, to
Orbital Sciences Corporation, 21839 Atlantic Boulevard, Dulles, Virginia
20166, Attn: General Counsel, and (ii) if to you, to the address set forth on
the first page of this Agreement, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon receipt.

9.     Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in a writing that is signed by you and such officer as may be specifically
designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not expressly set forth in this Agreement.
Nothing contained herein shall be held to alter, vary, or affect any of the
terms, provisions, or conditions of your Executive Employment Agreement. The
validity, interpretation, construction and performance of this Agreement shall
be governed by the local laws of the Commonwealth of Virginia (regardless of
the laws that might otherwise govern under principles of conflicts of law).

10.     Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

11.     Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

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12.     Arbitration. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by final and
binding arbitration in Washington, D.C. in accordance with the domestic rules
of the American Arbitration Association (“AAA”) then in effect, and may be
consolidated with any arbitration proceeding under Section 10 of your Executive
Employment Agreement. Judgment may be entered on the arbitrator’s award in any
court having jurisdiction; provided, however, that you shall be entitled to
seek specific performance of your right to be paid your base salary until the
date of termination of your employment during the pendency of any dispute or
controversy arising under or in connection with this Agreement. The party
seeking arbitration of a dispute under this section must give specific written
notice of any claim to the other party within twelve (12) months of the event
giving rise to the dispute; otherwise the claim shall be void and deemed
waived, even if there is a federal or state statute of limitations which would
give more time to pursue the claim.

If this Agreement correctly sets forth our agreement on the subject matter
hereof, kindly sign both of the enclosed copies, keeping one for your files and
returning the other to the Company.

Sincerely,

ORBITAL SCIENCES CORPORATION

By: David W. Thompson

Chairman and Chief Executive Officer

Agreed to:

/s/ Ronald J. Grabe

Ronald J. Grabe

Date: August 10, 2003

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Exhibit A

RELOCATION

The Executive shall be entitled to reimbursement of or for:

1.     Disposition of Arizona residence purchased in 2002 – Orbital will reimburse
the Executive for the following:

	 	•	 	Reasonable and customary statutory costs imposed on the Executive
as the seller by federal, state or local laws;
	 
	 	•	 	Real estate brokerage fees; and
	 
	 	•	 	Attorney fees, mortgage fees, title search costs and title insurance.

2.     Purchase of a new Arizona home – Orbital will reimburse the Executive for
the following:

	 	•	 	Title insurance or guarantee;
	 
	 	•	 	Tax and title search;
	 
	 	•	 	Attorney fees;
	 
	 	•	 	Settlement fees;
	 
	 	•	 	Mortgage origination fees charged by a bank or other commercial
lender (up to two (2) percent of the amount of the loan); and
	 
	 	•	 	Fees for surveys, pest inspections, radon tests, etc.

3.     Movement of personal effects and household goods – Orbital will pay the
reasonable costs of transporting household goods and personal effects for
the Executive under the following conditions:

	 	•	 	Transportation of goods will be provided from the former Virginia and
Arizona residences to the new Arizona residence;
	 
	 	•	 	Orbital will provide for storage of household goods in Arizona during
Executive’s relocation period;
	 
	 	•	 	Moving services will include packing and unpacking of all goods;
	 
	 	•	 	Household goods will be insured for full value while in transit or for
the Company-

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	 	 	 	provided storage period. Additional insurance coverage is
the responsibility of the Executive. Orbital is not liable for loss of
or damage to items of extraordinary value (including, but not limited
to, artwork, collections, etc.), irreplaceable items or items of
sentimental value; and
	 
	 	•	 	Orbital will secure estimates for moving services and will contract
with the selected vendor. Every effort will be made to accommodate the
Executive’s preferences for arrangements, including desired pack, load
and delivery dates. Any deviation from the written authorization
provided by Orbital to the vendor must be pre-approved by the
appropriate Orbital Human Resources representative – payment for
unauthorized services or changes will be the responsibility of the
Executive.

4.     Disposition of Arizona residence purchased in 2003 – Upon completion of
Executive’s relocation assignment and provided he is still employed as an
executive officer of the Company, Orbital will reimburse the Executive for the
following:

	 	•	 	Reasonable and customary statutory costs imposed on the Executive
as the seller by federal, state or local laws;
	 
	 	•	 	Real estate brokerage fees; and
	 
	 	•	 	Attorney fees, mortgage fees, title search costs and title insurance.

5.     Movement of personal effects and household goods in connection with item
4 above – Orbital will pay the reasonable costs of transporting household
goods and personal effects for the Executive under the following
conditions:

	 	•	 	Transportation of goods will be provided from the former Arizona residence to the Executive’s Virginia residence;
	 
	 	•	 	Up to two cars may be shipped;
	 
	 	•	 	Orbital will provide for thirty (30) days of storage of household goods;
	 
	 	•	 	Moving services will include packing and unpacking of all goods;
	 
	 	•	 	Household goods will be insured for full value while in transit or for the Company-provided storage period. Additional
insurance coverage is the responsibility of the Executive. Orbital is not liable for loss of or damage to items of
extraordinary value (including, but not limited to, artwork, collections, etc.), irreplaceable items or items of sentimental
value; and
	 
	 	•	 	Orbital will secure estimates for moving services and will contract with the selected vendor. Every effort will be made to
accommodate the Executive’s preferences for arrangements, including desired pack, load and delivery dates. Any deviation
from

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	 	 	 	the written authorization provided by Orbital to the vendor must be pre-approved by the appropriate Orbital Human
Resources representative – payment for unauthorized services or changes will be the responsibility of the Executive.

All taxable payments or reimbursements that do not have a corresponding
deduction will be tax effected, i.e., the Company will pay an allowance to
offset the estimated tax liability, including the tax liability on the
allowance itself.

7exv10w2

 

EXHIBIT 10.2

FORM OF EXECUTIVE EMPLOYMENT AGREEMENT

May __, 2003

Mr.

Orbital Sciences Corporation

21839 Atlantic Blvd.

Dulles, Virginia 20166

Dear ____:

     Orbital Sciences Corporation and its subsidiaries (together, the
“Company”) consider the maintenance of a sound and vital management to be
essential to protecting and enhancing the best interests of the Company and its
stockholders. In this connection, the Company recognizes that the possibility
of a change in control may exist and that such possibility, and the uncertainty
and questions which it may raise among management, may result in the departure
or distraction of management personnel to the detriment of the Company and its
stockholders. Accordingly, the Company’s Board of Directors (the “Board”) has
determined that appropriate steps should be taken to reinforce and encourage
the continued attention and dedication of members of the Company’s management,
including yourself, to their assigned duties without distraction in the face of
the potentially disturbing circumstances arising from the possibility of a
change in control of the Company.

     This letter agreement (the “Agreement”) sets forth the severance benefits
that the Company agrees will be provided to you in the event your employment
with the Company terminates following a “Change in Control” (as defined in
Section 2 hereof) under the circumstances described below. This Agreement is
not an employment contract nor does it alter your status as an at-will employee
of the Company. No benefit shall be payable under this Agreement except on
termination of your employment with the Company as a result of a Change in
Control (as defined below).

     1.     Term.  This Agreement commences as of
                                , and
shall remain in effect so long as you are employed as an executive officer of
the Company, provided, however, that in the event of a Change in Control, this
Agreement shall remain in full force and effect for a 24-month period
commencing on the date of the Change in Control regardless of whether you
remain an executive officer of the Company during such 24-month period.

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 2

	 	2.	 	Change in Control. For purposes of this Agreement, a
Change in Control shall mean:
	 
	 	 	 	
(a) the acquisition by any individual, entity or
group (within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule
13d-3 of the Exchange Act) of 30% or more of either (i) the
then outstanding shares of common stock of the Company or (ii)
the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the
election of directors;

	 
	 	 	 	(b) within any 24-month period, the persons who were
directors of the Company immediately prior thereto (the
“Incumbent Board”) shall cease to constitute a majority of the
Board of Directors of the Company or of its successor by
merger, consolidation or sale of assets. For this purpose,
the Incumbent Board includes any new director whose (i)
election to the Board resulted from a vacancy caused by the
retirement, death or disability of a director and was approved
by a vote of at least two-thirds of the directors then still
in office who were directors at the beginning of the period,
or (ii) nomination to the Board was approved by a committee of
the Board whose majority consisted of directors who were
directors in office at the beginning of the period; or

	 
	 	 	 	(c) the consummation by the Company of a
reorganization, merger, consolidation or sale or disposition
of all or substantially all the assets of the Company (other
than any such transaction initiated by the action of the
Board) (a “Business Combination”), the result of which is that
(i) the stockholders of the Company at the time of the
execution of the agreement to effect the Business Combination
own less than 60% of the total equity of the surviving or
resulting entity entitled to vote generally in the election of
directors, (ii) a Person (excluding any corporation resulting
from the Business Combination) becomes the beneficial owner of
20% or more of the then outstanding shares of common stock of
the corporation resulting from such Business Combination or
(iii) at least a majority of the members of the board of
directors of the corporation resulting from such Business
Combination were not members of the Board of Directors of the
Company at the time of execution of the initial agreement or
other action of the Board that provided for such Business
Combination.

     Notwithstanding the above, a Change in Control shall not be deemed to
occur as a result of a transaction where either you, individually or as an
officer, director or 5% stockholder or partner of any entity, or any employee
benefit plan (or related trust) of the Company (a) becomes the beneficial owner
of securities representing 30% or more of the combined voting power of the

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 3

Company’s then outstanding securities, or (b) enters into an agreement with
the Company providing for the merger, consolidation, or sale or transfer of all
or substantially all the assets of the Company. In addition, a Change in
Control shall not be deemed to occur where you enter into an employment
agreement with the Company, any Person whose acquisition of the Company’s
securities resulted in the Change in Control or any entity resulting from a
Business Combination.

     3.     Termination Following Change in Control.  If a Change in Control
as described in Section 2 occurs, you shall be entitled to the benefits
provided in Section 4 of this Agreement if your employment is terminated by the
Company for Disability or Cause, as described below, or by you for Good Reason,
as described below.

     (i)  Disability.  If, as a result of your incapacity due to physical
or mental illness, you shall have been absent from your duties with the Company
on a full-time basis for nine consecutive months, and within 30 days after
written notice of termination is given you shall not have returned to the
full-time performance of your duties, the Company may terminate your employment
for “Disability.”

     (ii)  Cause.  Termination by the Company of your employment for
“Cause” shall mean termination on (A) the willful and continued failure by you
substantially to perform your duties with the Company in accordance with the
instructions of the Board or the executive officers to whom you report (other
than any such failure resulting from your incapacity due to physical or mental
illness), after a demand for substantial performance is delivered to you by the
Board which specifically identifies the manner in which the Board believes that
you have not substantially performed your duties, or (B) the willful engaging
by you in conduct which is demonstrably and materially injurious to the
Company, monetarily or otherwise. For purposes of this Subsection, no act, or
failure to act, on your part shall be considered “willful” unless done, or
omitted to be done, by you not in good faith and without reasonable belief that
your action or omission was in the best interest of the Company.
Notwithstanding the foregoing, you shall not be deemed to have been terminated
for Cause unless and until there shall have been delivered to you a copy of a
resolution duly adopted by the affirmative vote of not less than two-thirds of
the entire membership of the Board at a meeting of the Board called and held
for the purpose (after reasonable notice to you and an opportunity for you,
together with your counsel, to be heard before the Board), finding that in the
good faith opinion of the Board you were guilty of conduct set forth above in
clause (A) or (B) of the first sentence of this Subsection and specifying the
particulars thereof in detail.

     (iii)    Good Reason.  You shall be entitled to terminate your
employment for Good Reason in connection with a Change in Control. For
purposes of this Agreement, “Good Reason” shall mean:

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 4

		
	 	     (A)   without your written consent, the assignment to you of any
position (including status, offices, titles and reporting requirements),
authorities, duties and responsibilities, that are not at least
commensurate in all material respects with the most significant of those
held, exercised and assigned by you at any time during the 180-day period
immediately preceding a Change in Control, or any other action by the
Company that results in a diminution in such position, authority, duties
or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and that is
remedied by the Company promptly after receipt of notice thereof given by
you;
	 
	 	     (B)   a reduction by the Company in your annual base salary (“Annual
Base Salary”), which for the purposes of this Agreement shall mean an
amount at least equal to 12 times the highest monthly base salary paid or
payable, including any base salary that has been earned but deferred, to
you by the Company in respect of the 12-month period immediately
preceding the month in which the Change of Control occurs;
	 
	 	     (C)   the Company’s requiring you to be based anywhere other than the
office of the Company in which you are based prior to the Change in
Control or any office or location within a 50 mile radius of such office,
except for required travel on the Company’s business to an extent
substantially consistent with your present business travel obligations;
	 
	 	     (D)   the failure by the Company to continue in effect any
compensation plan in which you participate, or to provide you with plans
substantially similar, including but not limited to any stock purchase
plan, stock option plan, incentive compensation, bonus, and other plan in
which you were participating at the time of the Change in Control, or the
failure by the Company to continue your participation therein;
	 
	 	     (E)   the failure by the Company to continue to provide you with
benefits substantially similar to those enjoyed by you under any of the
Company’s retirement, pension, 401(k), deferred compensation, life
insurance, medical, health, accident, disability or other benefit plans
in which you were participating at the time of a Change in Control, the
taking of any action by the Company which would directly or indirectly
materially reduce any of such benefits enjoyed by you at the time of the
Change in Control, or the failure by the Company to provide you with the
number of paid vacation days to which you are entitled in accordance with
the Company’s normal vacation policy in effect at the time of the Change
in Control;
	 
	 	     (F)   the failure of the Company to obtain a satisfactory agreement
from any successor to assume and agree to perform this Agreement, as
contemplated in Section 5 hereof; or

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 5

		
	 	     (G)    any termination of your employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of
Section 3(iv) hereof (and, if applicable, Section 3(ii) hereof); and for
purposes of this Agreement, no such purported termination shall be
effective.

            (iv)    Notice of Termination. Any termination by the Company or by
you shall be communicated by written Notice of Termination to the other party
hereto in accordance with Section 6 hereof, and if by the Company for Cause,
shall not be effective unless such notice includes the information set forth in
Section 3(ii) hereof.

            (v)    Date of Termination, etc. “Date of Termination” shall mean (A)
if your employment is terminated by reason of death or Disability, the date of
your death or 30 days after Notice of Termination is given (provided that you
shall not have returned to the performance of your duties on a full-time basis
during such 30 day period), as the case may be, (B) if your employment is
terminated by the Company for Cause or for any other reason, the date specified
in the Notice of Termination which shall not be less than 30 days from the date
such Notice of Termination is given, and (C) if you terminate your employment
for “Good Reason,” the date such Notice of Termination is given or any later
date specified therein.

     4.      Benefits Upon Termination or During Disability.

          (i)    During any period that you fail to perform your duties hereunder as a
result of incapacity due to physical or mental illness, and in the event your
employment is terminated pursuant to Section 3(i) hereof, your benefits shall
be determined in accordance with the Company’s insurance and benefit programs
then in effect.

          (ii)    If your employment shall be terminated for Cause, the Company shall
pay you your full base salary through the Date of Termination at the rate in
effect at the time Notice of Termination is given, and the Company shall have
no further obligations to you under this Agreement.

          (iii)    If your employment shall be terminated immediately prior to or any
time after a Change in Control (a) by the Company for any reason other than for
Cause or Disability or (b) by you for Good Reason, then you shall be entitled
to all the benefits provided below:

		
	 	     (A)   The Company shall pay you on the Date of Termination your full
base salary through the Date of Termination at the rate in effect at the
time Notice of Termination is given.
	 
	 	     (B)   In lieu of any further salary payments to you for periods
subsequent to the Date of Termination, the Company shall pay to you, not
later than 15 days following the Date of Termination, a lump sum payment
equal to two times the sum of (a) your Annual

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 6

		
	 	Base Salary and (b) the sum
of any incentive, annual and other cash bonuses, paid to you for the
12-month period immediately preceding the month in which the Change in
Control occurred.
	 
	 	     (C)   The Company shall also immediately fully vest you in all your
account balances under the Company’s retirement, deferred compensation
and pension plans (the “Plans”); provided, however, that should the
Company be unable to provide for such vesting under the terms of any such
Plans, the Company shall pay to you in the manner and as directed by you,
an amount that equals on an after-tax basis the value of any amounts that
were not vested or would otherwise be forfeited by you under the Plans
upon your termination of employment with the Company.
	 
	 	     (D)   The Company shall also allow you the opportunity to surrender to
the Company any then outstanding vested and unvested options (whether
exercisable or not) to purchase Common Stock of the Company and any of
its subsidiaries and affiliates that you own and that you did not
previously surrender or convert in the transaction that resulted in the
Change in Control, and the Company shall promptly pay to you in
consideration therefor a cash payment equal to the difference between the
respective exercise price for such options and the higher of the (a)
highest price paid in connection with the transaction that resulted in
the Change in Control or (b) then current fair-market value.
	 
	 	     (E)   The Company shall also pay to you all reasonable legal fees and
expenses incurred by you as a result of such termination (including all
such fees and expenses, if any, incurred in contesting or disputing any
such termination or in seeking to obtain or enforce any right or benefit
provided by this Agreement) upon presentation to the Company of a
reasonably detailed invoice for such expenses, whether or not you have
already made payment for such expenses.
	 
	 	     (F)   For a 24-month period after such termination, the Company shall
arrange to provide you with life, disability, accident and health
insurance benefits substantially similar to those you were receiving
immediately prior to the Notice of Termination, provided, however, that
should the Company be unable to provide for any such benefits under the
terms of the benefit plans, or by law, the Company shall pay you an
amount equal to the premiums the Company would have paid for such
benefits under such plans.
	 
	 	     (G)   You shall not be required to mitigate the amount of any payment
provided for in this Section 4 by seeking other employment or otherwise,
nor shall the amount of any payment or benefit provided for in this
Section 4 be reduced by any compensation earned by you as the result of
employment by another employer or by retirement benefits after the Date
of Termination, or otherwise.

 

 

Mr.

Orbital Sciences Corporation

May __, 2003

Page 7

		
	 	     (H)   In addition to all other amounts payable to you under this
Section 4, you shall be entitled to receive all benefits payable to you
under any of the Company’s plans or agreements relating to retirement
benefits.

              (iv)  All payments required to be made by the Company hereunder to you
shall be subject to the withholding of such amounts relating to Federal, state,
local or foreign taxes as the Company reasonably may determine it should
withhold pursuant to any applicable law or regulation.

              (v)  Notwithstanding any other provision of this Agreement or of any other
agreement, contract, or understanding entered into by you with the Company,
except an agreement, contract, or understanding hereafter entered into that
expressly modifies or excludes application of this paragraph (an “Other
Agreement”), and notwithstanding any formal or informal employment agreement or
other arrangement for the direct or indirect provision of compensation to you
(including groups or classes of participants or beneficiaries of which you are
a member), whether or not such compensation is deferred, is in cash, or is in
the form of a benefit to or for you (a “Benefit Arrangement”), if you are a
“disqualified individual,” as defined in Section 280G(c) of the Internal
Revenue Code of 1986, as amended (the “Code”) (or any successor provision
thereto), any right to receive any payment or other benefit under this
Agreement shall not become exercisable or vested (A) to the extent that such
right to exercise, vesting, payment, or benefit, taking into account all other
rights, payments, or benefits to or for you under this Agreement, all Other
Agreements, and all Benefit Arrangements, would cause any payment or benefit to
you under this Agreement to be considered a “parachute payment” within the
meaning of Code Section 280G(b)(2) as then in effect (a “Parachute Payment”)
and (B) if, as a result of receiving a Parachute Payment, the aggregate
after-tax amounts received by you from the Company under this Agreement, all
Other Agreements, and all Benefit Arrangements would be less than the maximum
after-tax amount that could be received by you without causing any such payment
or benefit to be considered a Parachute Payment. In the event that the receipt
of any such right to exercise, vesting, payment, or benefit under this
Agreement, in conjunction with all other rights, payments, or benefits to or
for you under any Other Agreement or any Benefit Arrangement would cause you to
be considered to have received a Parachute Payment under this Agreement that
would have the effect of decreasing the after-tax amount received by you as
described in clause (B) of the preceding sentence, then you shall have the
right, in your sole discretion, to designate those rights, payments, or
benefits under this Agreement, any Other Agreements, and any Benefit
Arrangements that should be reduced or eliminated so as to avoid having the
payment or benefit to you under this Agreement be deemed to be a Parachute
Payment.

     5.     Successors; Binding Agreement.

              (i)  The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all its
business and/or assets

 

 

Mr.

Orbital Sciences Corporation

May      , 2003

Page 8

to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. Failure of the Company to
obtain such assumption and agreement no later than ten days prior to the
effectiveness of any such succession shall be a breach of this Agreement and
shall entitle you to compensation from the Company in the same amount and on
the same terms as you would be entitled under section 4(iii), except that for
purposes of implementing the foregoing, a date ten days prior to the date on
which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, “the Company” shall mean the Company,
as hereinbefore defined and any successor to its business and/or assets that
assumes and agrees to perform this Agreement by executing and delivering the
agreement provided for in this paragraph 5, by operation of law, or otherwise.

              (ii)  This Agreement shall inure to the benefit of and be enforceable by
your personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees, and legatees. If you should die while any
amount would still be payable to you hereunder, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to your devisee, legatee or other designee or if there is no such
designee, to your estate.

     6.     Notice. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by registered
mail, return receipt requested, postage prepaid, addressed (i) if to the
Company, to Orbital Sciences Corporation, 21839 Atlantic Boulevard, Dulles,
Virginia 20166, Attn: Secretary of the Company, and (ii) if to you, to the
address set forth on the first page of this Agreement, or to such other address
as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

     7.     Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by you and such officer as may be specifically designated
by the Board. No waiver by either party hereto at any time of any breach by
the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement, and this Agreement
supersedes all prior agreements between the Company and you with respect to the
subject matter herein. The validity, interpretation construction and
performance of this Agreement shall be governed by the local laws of the
Commonwealth of Virginia (regardless of the laws that might otherwise govern
under principles of conflicts of law).

 

 

Mr.

Orbital Sciences Corporation

May      , 2003

Page 9

     8.     Validity. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

     9.     Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     10.     Arbitration. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Washington, D.C. in accordance with the domestic rules of the American
Arbitration Association then in effect. Pending the resolution of such dispute
or controversy, the Company will continue to pay you your full base salary in
effect when the notice giving rise to the dispute was given and you will
continue as a participant in all incentive compensation, stock option,
retirement, deferred compensation, pension, life, disability, health and
accident plans in which you were participating when the notice giving rise to
dispute was given, unless you have already received all benefits payable under
Section 4(iii) of this Agreement. Judgment may be entered on the arbitrator’s
award in any court having jurisdiction; provided, however, that you shall be
entitled to seek specific performance of your right to be paid until the Date
of Termination during the pendency of any dispute or controversy arising under
or in connection with this Agreement.

     If this Agreement correctly sets forth our agreement on the subject matter
hereof, kindly sign both of the enclosed copies, keeping one for your files and
returning the other to the Company.

Sincerely,

ORBITAL SCIENCES CORPORATION

 

By:     David W. Thompson

           Chairman and Chief Executive Officer

Agreed to:

Name:

Date:

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