Document:

orbc-ex102_346.htm

 

Exhibit 10.2

ORBCOMM INC.

2016 LONG-TERM INCENTIVES PLAN

PERFORMANCE UNIT AWARD

To:  [Name of Participant]

In accordance with the 2016 Long-Term Incentives Plan (the “Plan”), of ORBCOMM Inc. (the “Company”), you (the “Participant”), as a key employee of the Company, have been granted an award (the “Award”) of performance units (“Performance Units”).  Capitalized terms used in this Award and not otherwise defined herein will have the respective meanings ascribed to them in the Plan. 

The Performance Units have been awarded to you upon the following terms and conditions: 

1. Terms of Performance Units.

(a) Subject to the provisions of Section 2 of this Award, you shall be eligible to receive cash or shares of Stock as determined in accordance with Section 3 of this Award in respect of the Performance Units subject to this Award (the “Performance Unit Payout”) based on the Market Price (as defined below) of the Company’s Stock as of December 31 of each fiscal year for the Company’s [2017] through [2019] fiscal years (the “Performance Periods”). 

(b) Subject to the provisions of Section 2 of this Award, the maximum aggregate amount payable to the Participant pursuant to the Performance Unit shall equal [45% of the Participant’s 2017 base salary] and shall be allocated in three equal amounts to each of the Performance Periods.

 

 

 

 

2. Vesting and Payment.

(a) Performance Vesting.  Subject to Section 2(b), promptly following the end of each Performance Period and in any event by March 15 of the calendar year immediately following the calendar year in which the Performance Unit vests, the amount of cash (or the number of shares of Stock) payable to you in respect of the Performance Units subject to this Award shall be determined for such Performance Period by multiplying the number of Performance Units allocated to such Performance Period by the applicable percentage determined by the Committee in accordance with Attachment 1 hereto based on the Market Price of the Stock as of December 31 of such Performance Period compared to the target price of the Stock set forth on Attachment 1 hereto.  Any Performance Unit amounts allocated to a Performance Period and not earned in that Performance Period shall expire and be forfeited and shall not be carried over into any subsequent Performance Period.  For purposes of this Award the “Market Price” of the Stock on December 31 of each Performance Period will be determined by using the average of the daily closing prices per share of the Stock as reported on the Nasdaq Stock Market for the twenty (20) trading days immediately preceding such date. Any payout in respect of Performance Units subject to this Award may be in cash, in Stock or partly in cash and partly in Stock, as the Committee may determine. Any shares of Stock payable pursuant to this Section 2(a) will be calculated based upon the Fair Market Value of the Stock on the trading day immediately preceding the payout date (or such other date as the Committee shall determine in its sole discretion).  Payment of such cash or shares of Stock shall be paid by March 15th of the calendar year immediately following the calendar year in which each Performance Period ends (the “Performance Unit Payment Date”), provided that the Participant remains an Employee as of such Performance Unit Payment Date.

(b) Change of Control.  Subject to the other terms and conditions set forth herein, upon the effective date of a Change in Control, the vesting of all unvested Performance Units will be accelerated and the vesting of the Performance Units for each remaining Performance Period will be determined as if the Market Price of the Stock at the end of such Performance Period were the per share value of the Stock in the Change of Control transaction.  Payment of the cash or shares of Stock payable with respect to the Performance Units shall be made within thirty (30) days after the Change in Control, but in no event later than March 15th of the calendar year immediately following the calendar year in which the Change of Control occurs.

(c) Separation of Service.  Except as otherwise specifically provided in a written agreement between the Participant and the Company, if, prior to Performance Unit Payment Date  of the Performance Units pursuant to this Section 2, Participant ceases to be employed by the Company for any reason (voluntary or involuntary) including death or permanent long-term disability, which constitutes a “separation from service” under Internal Revenue Code Section 409A, as amended from time to time, including any regulations and other guidance issued thereunder by the Department of the Treasury and/or the Internal Revenue Service (collectively, “Section 409A”), then, subject to the other terms and conditions set forth herein, Participant’s rights to all of the unpaid  Performance Units will immediately expire and terminate as of the date of such cessation of employment.  

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3. Delivery of Cash or Shares. 

As promptly as practicable after (i) cash or shares of Stock have been determined by the Committee to be payable in accordance with Section 1 of this Award in respect of the Performance Units subject to this Award and (ii) the Company has been reimbursed for all required withholding taxes in respect of the Stock and/or cash payable in respect of such Performance Units, and in accordance with the time periods set forth in this Award, the Company shall deliver to you (or in the event of your death, to your estate or any person who acquires your interest in such Performance Units by bequest or inheritance) cash, shares of Stock or a combination thereof, as shall be determined by the Committee, in respect of such Performance Units.

4. Restriction on Transfer. 

The cash and/or Stock payable in respect of the Performance Units subject to this Award will be deliverable, during your lifetime, only to you and the Performance Units are not transferable by you other than (a) by will or by the laws of descent and distribution; or (b) by gift to your spouse or natural, adopted or step-children or grandchildren (“Immediate Family Members”) or to a trust for the benefit of one or more of your Immediate Family Members or to a family charitable trust established by you or a member of your family. 

5. Adjustments.  

In the event of any change in or affecting the outstanding shares of Stock by reason of a stock dividend or split, merger or consolidation on or after the date of the Award, or various other events, adjustments will be made as appropriate in connection with the Performance Units (including the performance measures set forth on Attachment 1 hereto) as contemplated in the Plan. Notwithstanding anything in this paragraph to the contrary, no adjustment will be made to the Award to the extent that the adjustment would constitute an additional deferral or acceleration of payment in violation of Section 409A. 

6. Income Tax Matters. 

The Company will have the right, in connection with the vesting of Performance Units under this Award, (a) to deduct from any payment otherwise due by the Company to Participant or any other person receiving delivery of cash or shares of Stock an amount equal to any taxes required to be withheld by law with respect to such delivery, (b) to require Participant or any other person receiving such delivery to pay to the Company an amount sufficient to provide for any such taxes so required to be withheld or (c) to sell such number of shares of Stock otherwise deliverable as may be necessary so that the net proceeds of such sale will be an amount sufficient to provide for any such taxes so required to be withheld. 

7. Section 409A. 

(a) This Award will be administered, interpreted and construed as exempt from or in compliance with Section 409A.  It is the intent of this Award that each payment hereunder will be exempt from Section 409A under the “short term deferral exemption” of Section 409A.  Each payment hereunder, including each installment payment, will be treated as a separate payment 

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for purposes of Section 409A.  The Participant acknowledges and agrees that the Company will not be liable for, and nothing provided or contained in this Award will obligate or cause the Company to be liable for, any tax, interest or penalties imposed on the Participant related to or arising with respect to any violation of Section 409A.  For purposes of this Award, any reference to “separation from service”, “termination of employment”, “termination” or similar reference will be construed to be a reference to “separation from service” within the meaning of Section 409A. 

(b) Notwithstanding any other provision of this Award to the contrary, to the extent that any amount payable or benefit to be provided under this Award constitutes non-qualified deferred compensation that is not exempt from Section 409A, and such amount or benefit is payable or to be provided as a result of separation from service, and the Participant is a “specified employee” (as defined and determined under Section 409A and any relevant procedures that the Company may establish) at the time of his separation from service, then such payment or benefit will not be made or provided to the Participant until the day after the date that is six (6) months following the Participant’s separation from service, at which time all payments or benefits that otherwise would have been paid or provided to the Participant under this Award during that six-month period, but were not paid or provided because of this Section 9(b), will be paid or provided, with any cash payment to be made in a single lump sum (without any interest with respect to that six-month period).  This six-month delay will cease to be applicable if the Participant’s separation from service due to death or if the Participant dies before the six-month period has elapsed, in which event any such payments or benefits will be paid or provided to the Participant’s estate within thirty (30) days of the date of death. 

8. Forfeiture in the Event of Competition and/or Solicitation. 

The Participant acknowledges that his or her continued employment with the Company and the Performance Units are sufficient consideration for the obligations contained in this Award, including, without limitation, the restrictions imposed upon the Participant by this Section 8. 

(a) Non-Competition.  The Participant expressly agrees and covenants that during the Participant’s employment and for the six (6)-month period immediately thereafter, the Participant will not, anywhere in the world, whether directly or indirectly, for himself or herself 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 (as defined below).  The Participant 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 Participant’s obligation under this Section 8(a) would be inappropriate and counter to the protections sought by the Company hereunder. 

(b) Non-Solicitation.  The Participant expressly agrees and covenants that during the Participant’s employment and for the one (1)-year period immediately thereafter, the Participant will not, anywhere in the world, whether directly or indirectly, for himself or herself or for any third party:  (i) solicit any business or contract, or enter into any business or contract, directly or 

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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 Participant’s employment, or (B) was a prospective supplier, licensee, customer, or partner of the Business at the time of the Participant’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 individual who was employed by the Company’s or its subsidiaries’ within six (6) months prior to the termination of the Participant’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 Participant 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 Participant’s obligation under this Section 8(b) would be inappropriate and counter to the protections sought by the Company hereunder.

(c) Forfeiture. If the Company determines that the Participant has violated any provisions of Section 8(a) or 8(b), then the Participant agrees and covenants that: 

(i)any portion of Performance Units (whether vested or unvested) that has not been paid to the Participant as of the date of such determination will be immediately rescinded; 

(ii)the Participant will automatically forfeit any rights the Participant may have with respect to the Performance Units as of the date of such determination; and 

(iii)if the Participant has received shares of Stock as payment with respect to vested Performance Units under the terms of this Award within the one (1) year period immediately preceding or following a violation of Section 8(a) or the one (1) year period immediately preceding a violation of Section 8(b), upon the Company’s demand, the Participant will immediately deliver to the Company a certificate or certificates for shares of Stock (1) equal to the number of shares paid to the Participant under this Award if any part of such payment was made in shares of Stock and/or (2) equal to the value paid to the Participant under the terms of this Award if any part of such payment was made in cash. 

(d) Definition of Business.  For purposes of Section 8(a) and Section 8(b), “Business” will 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 or terminals that operate on such services, or any other business in which the Company is materially engaged during the Participant’s period of employment or, with respect to any post-employment period, during the six (6) month period immediately preceding the Participant’s termination of employment.  

(e) Severability.  The Participant acknowledges and agrees that the period, scope and geographic areas of restriction imposed upon the Participant by the provisions of Section 8 are fair and reasonable and are reasonably required for the protection of the Company.  In the event that any part of this Award, including, without limitation, Section 8, is held to be unenforceable 

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or invalid, the remaining parts of Section 8 and this Award will nevertheless continue to be valid and enforceable as though the invalid portions were not a part of this Award.  If any one of the provisions in Section 8 is held to be excessively broad as to period, scope and geographic areas, any such provision will be construed by limiting it to the extent necessary to be enforceable under applicable law. 

(f) Additional Remedies.  The Participant acknowledges that breach by the Participant of this Award would cause irreparable harm to the Company and that in the event of such breach, the Company will have, in addition to the remedies set forth in Section 8(c), monetary damages and other remedies at law or in equity, the right to an injunction, specific performance and other equitable relief to prevent violations of the Participant’s obligations hereunder.

9. Miscellaneous. 

(a) This Award does not confer on Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time. 

(b) To the extent that any payment of any Performance Unit is made in shares of Stock pursuant to the terms of this Award, the Company will not be required to deliver any shares of Stock upon vesting of any Performance Units until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied, provided that in all cases the delivery of any shares of Stock will be made within such time frame following the scheduled payment date as is required to avoid a violation of the requirements of Section 409A. 

(c) To the extent there is any conflict between the terms contained in this Award and the Plan, the terms of the Plan will control.

(d) [This Award is also subject to the Company’s Executive Incentive Compensation Recoupment Policy, as in effect from time to time.]1

	
	 

	
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Include for executive officers and designated employees subject to the Executive Incentive Compensation Recoupment Policy.

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Please acknowledge your agreement to the terms and conditions of this Award by signing below and returning an executed copy of this Award to the Company.

 

	
ORBCOMM Inc.

	
 

	
By:
	
 
	
 

	
 
	
 
	
Christian G. Le Brun

	
 
	
 
	
Executive Vice President,

	
 
	
 
	
General Counsel and Secretary

 

Dated:

Acknowledged and Agreed:

	
 

	
Name:
	
 
	
 

	
Date:
	
 
	
 

 

 

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Fiscal Year [2017 -2018] Long-Term Incentives

 

	
Fiscal

Year
	
 
	
Minimum Market Price as of December 31
	
 
	
Minimum Market

Price Percentage
	
 
	
Target

Market Price as

of December 31
	
 
	
Market Price

Percentage

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[2017]
	
 
	
$(*)
	
 
	
50%
	
 
	
$(*)
	
 
	
100%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[2018]
	
 
	
$(*)
	
 
	
50%
	
 
	
$(*)
	
 
	
100%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[2019]
	
 
	
$(*)
	
 
	
50%
	
 
	
$(*)
	
 
	
100%

 

For Market Prices below the Minimum Market Price, the applicable percentage will be 0%.

For Market Prices between the Minimum Market Price and the Target Market Price, the applicable percentage will be interpolated on a straight line basis between 50% and 100%.

In no event shall the applicable percentage exceed 100% for any Performance Period.

 

(*)Minimum and Target Market Prices for fiscal 2017-2019 to be determined by the Compensation Committee on or before December 31, 2016.pri-ex101_134.htm

EXHIBIT 10.1 

 

AMENDMENT NO. 2

This AMENDMENT NO. 2, dated as of January 25, 2016 (this “Amendment”), amending the 10% Coinsurance Agreement, dated as of March 31, 2010, as amended by Amendment No. 1 thereto, dated as of October 5, 2015 (as the same may be amended, supplemented or otherwise modified from time to time, and at any time, the “Agreement”) between Prime Reinsurance Company, Inc., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated (the “Reinsurer”) and Primerica Life Insurance Company, a stock life insurance company domiciled in the Commonwealth of Massachusetts (the “Ceding Company”).  

W I T N E S S E T H:

WHEREAS, the Ceding Company and Reinsurer have entered into the Agreement; 

WHEREAS, on October 5, 2015, the Ceding Company and the Reinsurer entered into Amendment No. 1 to the Agreement (the “First Amendment”) reflecting the reduction of the Financing Charge to two percent (2.0%) on the Excess Reserves, conditioned upon the approval of the Vermont Department of Financial Regulation and the Massachusetts Division of Insurance, which approvals were subsequently received;

WHEREAS, the Ceding Company ceded 80% of its primary level term inforce life insurance business written prior to December 31, 2009 (the “Subject Business”), to the Reinsurer through the 80% Coinsurance Agreement, dated as of March 31, 2010 (as the same may be amended, supplemented or otherwise modified from time to time, and at any time, the “80% Coinsurance Agreement”);

WHEREAS, Citigroup Inc. (“Citi”), the 100% indirect owner of the Reinsurer, desires to divest (in whole or in part) the Subject Business, through the novation of the Subject Business to Pecan Re Inc., a Vermont corporation (“Pecan Re”), a wholly owned subsidiary of Swiss Re Life & Health America Inc., a life insurance company domiciled under the laws of Missouri (“SRLHA”), (such novation and related transactions, the “Transactions”) pursuant to the terms of a Master Transaction Agreement between the Reinsurer and SRLHA, dated the date hereof (the “Master Transaction Agreement”); and

WHEREAS, in order to further induce the Ceding Company to enter into the Transaction Cooperation Agreement, by and among the Reinsurer, the Ceding Company, Pecan Re Inc. and SRLHA, dated as of the date hereof (the “Transaction Cooperation Agreement”), the Ceding Company and Reinsurer desire to amend the Agreement pursuant to Section 21.2(a) thereof as set forth in this Amendment.

NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

Section 1.Amendment to the Agreement.  

a)Effective as of the Effective Date, Section 1.1(nn) of the Agreement is hereby amended by deleting such section in its entirety and inserting in lieu thereof:

“(nn)  “Finance Charge” means on and after the Lookback Date, an annual rate of return of one-half percent (0.5%) on the Excess Reserves.”  

b)Effective as of the Effective Date, the Agreement is hereby amended by adding the following section 1.1(qqqq):

“(qqqq)  “Lookback Date” means the earliest of (i) the first day of the calendar quarter in which the Closing (as defined in the Transaction Cooperation Agreement) occurs, (ii) any date on which the Master Transaction Agreement (a) is terminated pursuant to Section 8.01(a) thereof, (b) is otherwise terminated by mutual agreement, or (c) is terminated by SRLHA pursuant to Section 8.01(c) thereof, or (iii) any date on which the Transaction Cooperation Agreement is terminated (a) by PLIC pursuant to Section 9.02(b) thereof in respect of a failure or breach by Prime Re, or (b) by Pecan Re or SRLHA pursuant to Section 9.02(d) thereof in respect of a failure or breach by Prime Re.”  

Section 2.Conditions to Effectiveness.  The effectiveness of this Amendment shall be conditioned upon, and this Amendment shall not become effective until the earliest date and time on which (the “Effective Date”), (a)(i) the Vermont Department of Financial Regulation shall have approved  (A) the Supplement to the Amended and Restated Plan of Operations of Prime Re and (B) the Supplement to the Licensing Order pursuant to 8 V.S.A. § 6048d(b) of Prime Re, in each case, reflecting this Amendment, (ii) the Massachusetts Division of Insurance shall have approved this Amendment in accordance with Article IV.C of the Amended and Restated Plan of Operations of Prime Re and (iii) the closing of the Transactions takes place, (b) the Master Transaction Agreement is terminated pursuant to Section 8.01(a) thereof, is otherwise terminated by mutual agreement, or is terminated by SRLHA pursuant to Section 8.01(c) thereof, or (c) the Transaction Cooperation Agreement is terminated by (i) PLIC pursuant to Section 9.02(b) thereof in respect of a failure or breach by Prime Re, or (ii) Pecan Re or SRLHA pursuant to Section 9.02(d) thereof in respect of a failure or breach by Prime Re; provided, however, that if any settlement of amounts due under the 10% Coinsurance Agreement occurs after the Lookback Date, but before the Effective Date, the first such settlement occurring immediately following the Effective Date shall be appropriately adjusted to give effect to the retroactive change in the Finance Charge, with interest at the Prime Rate.  The Parties agree to use commercially reasonable efforts to obtain such amendments and approvals described in clauses (a)(i) and (a)(ii) above as promptly as practical following the date of this agreement.  For the avoidance of doubt, no party hereto shall be required under this Amendment to use efforts to facilitate the closing of the Transactions as described in clause (a)(iii) above or to obtain any amendments or approvals 

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required therefor.  The efforts to facilitate the closing of the Transactions will be subject to the terms and conditions of the Transaction Cooperation Agreement and any definitive transaction agreements, consents, waivers or other agreements that may be executed and delivered with respect to the Transactions on or after the date hereof, and each party hereto shall be bound only by the terms of the Transaction Cooperation Agreement and any such agreements, consents or waivers executed and delivered by them.

Section 3.Defined Terms; References.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.  From and after the Effective Date, references in the Agreement to the “Agreement” or any provision thereof shall be deemed to refer to the Agreement or such provision as amended hereby unless the context otherwise requires.

Section 4.Full Force and Effect.  Except as otherwise expressly provided herein, all of the terms and conditions of the Agreement remain unchanged and continue in full force and effect.  This Amendment is limited precisely as written and shall not be deemed to be an amendment to any other term or condition of the Agreement or any of the documents referred to therein.  

Section 5.Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to the principles of conflicts of law thereof.

Section 6.Assignment.  This Amendment will inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties.  No party may assign any of its duties or obligations hereunder without the prior written consent of the other parties.  Any assignment in violation of the foregoing shall be null and void and of no effect.

Section 7.Captions.  The captions contained in this Amendment are for reference only and are not part of the Amendment.

Section 8.Counterparts.  This Amendment may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties may execute this Amendment by signing such counterpart.  This Amendment shall become effective when each party hereto shall have received a counterpart hereof signed by the other party hereto.

Section 9.Third Party Beneficiary.  Nothing in this Amendment is intended to give any Person, other than the parties to this Amendment, their successors and permitted assigns, any legal or equitable right remedy or claim under or in respect of this Amendment.

Section 10.Incontestability.  In consideration of the mutual covenants and agreements contained herein, each party hereto does hereby agree that this Amendment, and each and every provision hereof, is and shall be enforceable by and between them according to its terms, and each party does hereby agree that it shall not contest the validity or enforceability hereof.

Section 11.Limitation on Obligations.  Nothing herein shall obligate or require the Ceding Company to grant any consent or waiver in connection with, or to proceed with, the 

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Transactions.  The Transactions will be subject to the terms and conditions of the Transaction Cooperation Agreement and any other definitive transaction agreements, consents or waivers executed and delivered with respect to the Transactions, each party hereto shall be bound only by the terms of any agreements, consents or waivers executed and delivered by them, and no party hereto is required to execute and deliver any such agreement, consent or waiver, except as provided in the Transaction Cooperation Agreement.  

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

PRIME REINSURANCE COMPANY, INC.

	
By:
	
/s/ Reza Shah

	
Name:
	
Reza Shah

	
Title: 
	
CEO

 

PRIMERICA LIFE INSURANCE COMPANY

	
By:
	
/s/ Dan Settle

	
Name:
	
Dan Settle

	
Title: 
	
Executive Vice President

 

 

[Signature Page to Amendment No. 2]

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