Document:

Exhibit 10.5

 

Execution Version

 

VECTOR ACQUISITION CORPORATION II

One Market Street, Steuart Tower, 23rd Floor

San Francisco, California 94105

 

March 9, 2021

 

Vector Acquisition Partners II, L.P.

One Market Street, Steuart Tower, 23rd Floor

San Francisco, California 94105

 

Ladies and Gentlemen:

 

This letter will confirm our agreement that,
commencing on the effective date (the “Effective Date”) of the registration statement (the “Registration
Statement”) for the initial public offering (the “IPO”) of the securities of Vector Acquisition
Corporation II (the “Company”) and continuing until the earlier of (i) the consummation by the Company
of an initial business combination and (ii) the Company’s liquidation (in each case as described in the Registration Statement)
(such earlier date hereinafter referred to as the “Termination Date”), Vector Acquisition Partners II,
L.P. (the “Sponsor”) shall take steps directly or indirectly to make available to the Company certain
office space, secretarial and administrative services as may be required by the Company from time to time, situated at One Market
Street, Steuart Tower, 23rd Floor, San Francisco, California 94105 (or any successor location). In exchange therefor, the Company
shall pay Sponsor a sum of $10,000 per month on the Effective Date and continuing monthly thereafter until the Termination Date.
Sponsor hereby agrees that it does not have any right, title, interest or claim of any kind (a “Claim”)
in or to any monies that may be set aside in a trust account (the “Trust Account”) that may be established
upon the consummation of the IPO and hereby irrevocably waives any Claim it may have in the future as a result of, or arising out
of, any negotiations, contracts or agreements with the Company and will not seek recourse against the Trust Account for any reason
whatsoever.

 

This letter agreement constitutes the entire
agreement and understanding of the parties hereto in respect of its subject matter and supersedes all prior understandings, agreements,
or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter
hereof or the transactions contemplated hereby.

 

This letter agreement may not be amended,
modified or waived as to any particular provision, except by a written instrument executed by the parties hereto.

 

The parties may not assign this letter agreement
and any of their rights, interests, or obligations hereunder without the consent of the other party.

 

This letter agreement shall be governed
by, construed in accordance with, and interpreted pursuant to the laws of the State of New York, without giving effect to its choice
of laws principles that will apply the laws of another jurisdiction.

 

This letter agreement may be executed in
one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute
one and the same agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced
to evidence the existence of this letter agreement.

 

[Signature Page Follows]

 

    

     

    

 

	 	Very truly yours,
	 	 
	 	VECTOR ACQUISITION CORPORATION II
	 	 
	 	By:	/s/ David Baylor
	 	Name:	David Baylor
	 	Title:	Chief Financial Officer
	 	 	 

 

	AGREED TO AND ACCEPTED BY:	 
	 	 
	VECTOR ACQUISITION PARTNERS II, L.P.	 
	 	 
	By:	Vector Capital Partners V, Ltd., its General Partner
	 	 
	By:	/s/ David Baylor	 
	Name:	David Baylor	 
	Title:	Officer	 

 

[Signature Page to Administrative Services
Agreement]Document

EXHIBIT 10.1
Summary of Annual Incentive Plan for 2021
Annual 2021 Incentive Plan. Effective March 10, 2021, the Company adopted its annual incentive plan for 2021. The plan provides for possible cash incentive awards and restricted stock awards in the form of Long-Term Incentive Share Awards and Career Share Awards, as in prior years. Any such awards, if earned, would be paid, in the case of the cash award, or granted, in the case of the restricted stock awards, by March 15, 2022. As described below, awards may be granted by the Compensation Committee upon satisfaction of both a performance condition (as determined in the discretion of the Committee) and a service condition, and which (in the case of the potential cash incentive and the potential award of Long Term Incentive Shares) is further subject to increase or decrease by the Committee based upon an assessment of individual goals and objectives adopted for each Participant. Vesting of an award of Long-Term Incentive Shares or Career Shares, if granted, is subject to meeting a further service condition, as described more fully below.

Potential Cash Incentive Awards. The CEO and all Executive Officers whose responsibilities relate primarily to corporate level administration (Staff Officers) have the opportunity to earn a cash award ranging from 15% to no more than 105% of such executive’s base salary (from 45% to 105% for the Chief Executive Officer and Chief Operating Officer, and from 15% to 75% for other officers). Sixty percent of the amount of the potential cash award is based on achievement of specified levels of Operating Income from Continuing Operations for the Company, as Adjusted for unusual items, 30% of the amount is based on achievement of specified levels of Operating Income from Continuing Operations of the Company’s residential business operations, as Adjusted for unusual items, and 10% of the amount is based on achievement of specified levels of Operating Income from Continuing Operations of the Company’s commercial business operations, as Adjusted for unusual items, as determined by the Committee.

Executive Officers whose responsibilities primarily relate to one of the Company’s brands or business units (Line Officers), have the opportunity to earn a cash payment ranging from 15% to no more than 75% of such participant’s base salary. Sixty percent of the amount is based on achievement of specified levels of their business unit’s Operating Income from continuing Operations, as Adjusted for unusual items, 30% is based on the achievement of specified levels of the Company’s Operating Income from Continuing Operations, as Adjusted for unusual items, and 10% is based on achievement of specified levels of the annual Operating Income, as Adjusted for unusual items, of the Company’s other business units, as determined by the Committee.

Maximum potential awards are determined by formula; to be eligible for any award, the participant must be employed by the Company as of the date of determination, which is anticipated to be no later than March 15, 2022. The Compensation Committee must determine achievement of the relevant performance and service conditions. The Committee is authorized to exercise fully its discretion in determining achievement of the relevant performance conditions and individual goals and objectives.

As noted, the Compensation Committee retains the discretion to reduce or increase any award by up to 30% of the amount otherwise earned based on the participant’s level of achievement of certain individual goals and objectives, which in some cases are less quantifiable and more subjective in nature than the formula goals otherwise set by the plan. Individual goals have been set by the Committee for each participant applicable to 2021.

Any cash award will be paid out to the participants by March 15, 2022.

Primary Long-Term Incentive Share Awards and Career Share Awards.

The incentive plan provides for two potential awards of restricted stock: Primary Long-Term Incentive Share Awards and Career Share Awards.

The Primary Long-Term Incentive Share Award is a possible award of restricted shares, in value equal to no more than 35% of the Executive’s base salary as of the beginning of 2021 plus any cash incentive award paid for such year. To be eligible for an award of Primary Long-term Incentive Shares the Company must achieve an Operating Income from Continuing Operations, as Adjusted of at least the threshold level set for determining the potential cash award. If such threshold level of operating income is attained, the Participant will receive an award of restricted shares equal in value to 35% of his base salary as of the beginning of 2021 plus any cash incentive paid for the year. Primary Long-Term Incentive Shares will be granted if the Threshold Corporate Operating Performance level is reached; however, at Threshold, only 50% of PLTI will be earned. Proration of PLTI shares will occur between Threshold and Target performance with 100% of PLTI shares earned at Target Performance. The Compensation Committee must determine whether achievement of the threshold level of Operating Income as Adjusted for unusual 
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or extraordinary items, has occurred. The Committee will exercise its discretion in making such determination. The Participant must be employed by the Company as of the date of determination in order to receive any award. If earned, the Awards will be granted no later than March 15, 2022.

Vesting. If earned and granted, the Primary Long-Term Incentive Shares vest equally over 3 years from the potential award date (March 15, 2022). Upon vesting, each ratable portion of the award becomes unrestricted and must be paid or made available by March 15 of the year following vesting. That portion of the award that has been expensed by the Company (as of its most recent year-end financial statements), and which has not previously become unrestricted and paid or made available to the Participant, vests upon a Participant’s attaining age 65 (or upon a termination without cause, if sooner). For Participants age 65 or older, the vested portion becomes unrestricted and is paid or made available by March 15 of the year immediately following the year of vesting. Shares subject to the award vest on the Participant’s death, disability or upon a change of control, as defined in the plan. In no event will shares subject to the Award become unrestricted and paid and made available later than March 15th of the year following the year in which the shares are no longer subject to a substantial risk of forfeiture, as defined under relevant IRC regulations.

The Career Share Award is a possible award of restricted shares, in value equal to 20% of each Participant’s base salary at the beginning of 2021, for all executive officers other than the Chief Operating Officer; for the Chief Operating Officer, the award is equal in value to 35% of his base salary at the beginning of 2021. To be eligible for an award of Career Shares, the Company must have achieved a profitable level of Operating Income from Continuing Operations, as Adjusted. The Compensation Committee must determine whether achievement of the minimum level of Operating Income from continuing Operations, as Adjusted, has occurred. The Committee will exercise its discretion in making such determination. The Participant must be employed by the Company as of the date of determination in order to receive any award.

Vesting. If earned and granted, the Career Share award vests ratably over two years for participants age 60 or older on the date of grant. For participants under age 61, shares vest ratably over 5 years beginning with such executive officer’s 61st birthday. That cumulative portion of the award that has been expensed by the Company (as of its most recent year ending financial statements) and which has not become unrestricted and paid or made available to the Participant, vests upon a Participant’s attaining age 65. The vested portion of each award becomes unrestricted and is paid or made available March 15 of the year immediately following the year of vesting. In no event will shares subject to the Award become unrestricted and be paid and made available later than March 15th of the year following the year in which the shares are no longer subject to a substantial risk of forfeiture, as defined under relevant IRC regulations.
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