Document:

exv4w5

Exhibit 4.5

ILLUMINA, INC.

AMENDED AND RESTATED 2005 STOCK AND INCENTIVE PLAN

(as of April 22, 2010)

     1. Purposes of the Plan. The purposes of this 2005 Stock and Incentive Plan are to
attract and retain the best available personnel for positions of substantial responsibility, to
provide additional incentive to Service Providers, and to promote the success of the Company’s
business. Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock Awards (including Stock
Grants, Stock Units and Stock Appreciation Rights) and Cash Awards may also be granted under the
Plan.

     2. Definitions. As used herein, the following definitions shall apply:

	 	(a)	 	“Administrator” means the Board or any of its Committees as shall be
administering the Plan, in accordance with Section 4 hereof.
	 
	 	(b)	 	“Applicable Laws” means the requirements relating to the administration of
stock option and restricted stock plans, the grant of options and the
issuance of shares under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any Nasdaq National Market, stock exchange or quotation system on which the
Common Stock is listed or quoted and the applicable laws of any other country or
jurisdiction where Options or Awards are granted under the Plan, as such laws, rules,
regulations and requirements shall be in place from time to time.
	 
	 	(c)	 	“Award” means an Option, a Stock Award or a Cash Award granted in accordance
with the terms of the Plan.
	 
	 	(d)	 	“Award Agreement” means a Stock Award Agreement, Cash Award Agreement and/or
Option Agreement, which may be in written or electronic format, in such form and with
such terms and conditions as may be specified by the Administrator, evidencing the
terms and conditions of an individual Award. Each Award Agreement is subject to the
terms and conditions of the Plan.
	 
	 	(e)	 	“Board” means the Board of Directors of the Company.
	 
	 	(f)	 	“Cash Award” means a bonus opportunity awarded under Section 15 pursuant to
which a Participant may become entitled to receive an amount based on the satisfaction
of such performance criteria as are specified in the agreement or other documents
evidencing the Award (the “Cash Award Agreement”).
	 
	 	(g)	 	“Code” means the Internal Revenue Code of 1986, as amended.

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	 	(h)	 	“Committee” means a committee of Directors appointed by the Board in
accordance with Section 4 hereof.
	 
	 	(i)	 	“Common Stock” means the common stock of the Company.
	 
	 	(j)	 	“Company” means Illumina, Inc., a Delaware corporation.
	 
	 	(k)	 	“Consultant” means any natural person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.
	 
	 	(l)	 	“Corporate Transaction” means any of the following, unless the Administrator
provides otherwise:

	 	(i)	 	any merger or consolidation in which the Company shall not be the
surviving entity (or survives only as a subsidiary of another entity whose
stockholders did not own all or substantially all of the Common Stock in
substantially the same proportions as immediately prior to such transaction),
	 
	 	(ii)	 	the sale of all or substantially all of the Company’s assets to any
other person or entity (other than a wholly-owned subsidiary),
	 
	 	(iii)	 	the acquisition of beneficial ownership of a controlling interest
(including, without limitation, power to vote) in the outstanding shares of
Common Stock by any person or entity (including a “group” as defined by or
under Section 13(d)(3) of the Exchange Act),
	 
	 	(iv)	 	a contested election of Directors, as a result of which or in
connection with which the persons who were Directors before such election or
their nominees (the “Incumbent Directors”) cease to constitute a majority of
the Board; provided, however, that if the election, or nomination for election
by the Company’s stockholders, of any new Director was approved by a vote of
at least fifty percent (50%) of the Incumbent Directors, such new Director
shall be considered as an Incumbent Director, or
	 
	 	(v)	 	any other event specified by the Board or a Committee, regardless of
whether at the time an Award is granted or thereafter.

	 	(m)	 	“Director” means a member of the Board.
	 
	 	(n)	 	“Disability” means total and permanent disability as defined in Section 21
(e)(3) of the Code.
	 
	 	(o)	 	“Effective Date” means the date on which the Company’s stockholders approve
the Plan.

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	 	(p)	 	“Employee” means any person, including Officers and Inside Directors,
employed by the Company or any Parent or Subsidiary of the Company. An Employee shall
not be deemed to cease Employee status by reason of (i) any leave of absence approved
by the Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive
Stock Options, no such leave may exceed ninety days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon
expiration of a leave of absence approved by the Company is not so guaranteed, then
three (3) months following the 91st day of such leave any Incentive Stock Option held
by the Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option. Neither service as Director
nor payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company.
	 
	 	(q)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 
	 	(r)	 	“Fair Market Value” means, as of any date, the value of a Share determined as
follows:

	 	(i)	 	if the Common Stock is listed on any established stock exchange or
traded on a national market system, including without limitation the Nasdaq
National Market or the Nasdaq SmallCap Market of The Nasdaq Stock Market, the
Fair Market Value of a Share shall be the closing selling price for such stock
(or the closing bid, if no sales were reported) as quoted on such exchange or
system on the day of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;
	 
	 	(ii)	 	if the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, the Fair Market Value of a Share
shall be the mean between the high bid and low asked prices for the Common
Stock on the day of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable; or
	 
	 	(iii)	 	in the absence of an established market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Administrator.

	 	(s)	 	“Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder and as designated in the applicable Option Agreement.
	 
	 	(t)	 	“Inside Director” means a Director who is an Employee.

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	 	(u)	 	“Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option and/or as designated in the applicable Option Agreement.
	 
	 	(v)	 	“Notice of Grant” means a written or electronic notice evidencing certain
terms and conditions of an individual Option grant. The Notice of Grant is part of
the Option Agreement.
	 
	 	(w)	 	“Officer” means a person who is an executive officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.
	 
	 	(x)	 	“Option” means a stock option granted pursuant to the Plan.
	 
	 	(y)	 	“Option Agreement” means an agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option
Agreement is subject to the terms and conditions of the Plan.
	 
	 	(z)	 	“Optioned Shares” means the Shares subject to an Option.
	 
	 	(aa)	 	“Optionee” means the holder of an outstanding Option granted under the Plan.
	 
	 	(bb)	 	“Outside Director” means a Director who is not an Employee.
	 
	 	(cc)	 	“Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code or any successor provision.
	 
	 	(dd)	 	“Participant” means any holder of one or more Options, Stock Awards or Cash
Awards, or the Shares issuable or issued upon exercise of such Awards, under the Plan.
	 
	 	(ee)	 	“Plan” means this 2005 Stock and Incentive Plan.
	 
	 	(ff)	 	“Predecessor Plan” means the Illumina, Inc. 2000 Stock Plan, as amended.
	 
	 	(gg)	 	“Qualifying Performance Criteria” means any one or more of the following
performance criteria, either individually, alternatively or in any combination,
applied to either the Company as a whole or to a business unit, Parent, Subsidiary or
business segment, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute basis
or relative to a pre-established target, to previous years’ results or to a designated
comparison group, in each case as specified by the Committee in the Award: (i) cash
flow; (ii) earnings (including gross margin, earnings before interest and taxes,
earnings before taxes, and net earnings); (iii)

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	 	 	 	earnings per share; (iv) growth in earnings or earnings per share; (v) stock price;
(vi) return on equity or average stockholders’ equity; (vii) total stockholder
return; (viii) return on capital; (ix) return on assets or net assets; (x) return
on investment; (xi) revenue; (xii) income or net income; (xiii) operating income or
net operating income; (xiv) operating profit or net operating profit; (xv)
operating margin; (xvi) return on operating revenue; (xvii) market share; (xviii)
contract awards or backlog; (xix) overhead or other expense reduction; (xx) growth
in stockholder value relative to the moving average of the S&P 500 Index or a peer
group index; (xxi) credit rating; (xxii) strategic plan development and
implementation (including individual performance objectives that relate to
achievement of the Company’s or any business unit’s strategic plan); (xxiii)
improvement in workforce diversity, and (xxiv) any other similar criteria as may be
determined by the Administrator. The Committee may appropriately adjust any
evaluation of performance under a Qualifying Performance Criteria to exclude any of
the following events that occurs during a performance period: (A) asset
write-downs; (B) litigation or claim judgments or settlements; (C) the effect of
changes in tax law, accounting principles or other such laws or provisions
affecting reported results; (D) accruals for reorganization and restructuring
programs; and (E) any gains or losses classified as extraordinary or as
discontinued operations in the Company’s financial statements.
	 
	 	(hh)	 	“Rule 16b-3” means Rule 16b-3 of the Exchange Act, as the same may be
amended from time to time, or any successor to Rule 16b-3, as in effect when
discretion is being exercised with respect to the Plan.
	 
	 	(ii)	 	“Service Provider” means (i) an individual rendering services to the Company
or any Parent or Subsidiary of the Company in the capacity of an Employee or
Consultant or (ii) an individual serving as a Director.
	 
	 	(jj)	 	“Share” means a share of the Common Stock, as adjusted in accordance with
Section 17 hereof.
	 
	 	(kk)	 	“Stock Appreciation Right” means a right to receive cash and/or Shares based
on a change in the Fair Market Value of a specific number of Shares granted under
Section 14.
	 
	 	(ll)	 	“Stock Award” means a Stock Grant, a Stock Unit or a Stock Appreciation
Right granted under Sections 13 or 14 below or other similar awards granted under the
Plan (including phantom stock rights).
	 
	 	(mm)	 	“Stock Award Agreement” means a written agreement, the form(s) of which
shall be approved from time to time by the Administrator, between the Company and a
holder of a Stock Award evidencing the terms and conditions of an individual Stock
Award grant. Each Stock Award Agreement shall be subject to the terms and conditions
of the Plan.

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	 	(nn)	 	“Stock Grant” means the award of a certain number of Shares granted under
Section 13 below.
	 
	 	(oo)	 	“Stock Unit” means a bookkeeping entry representing an amount equivalent to
the Fair Market Value of one Share, payable in cash, property or Shares. Stock Units
represent an unfunded and unsecured obligation of the Company, except as otherwise
explicitly provided for by the Administrator.
	 
	 	(pp)	 	“Subsidiary” means a “subsidiary corporation,” whether now or hereafter
existing, as defined in Section 424(f) of the Code, or any successor provision.
	 
	 	(qq)	 	“Withholding Taxes” means the federal, state and local income and employment
withholding taxes, or any other taxes required to be withheld, to which the holder of
an Award may be subject in connection with the grant, exercise, or vesting of an Award
or the issuance or transfer of Shares issued or issuable pursuant to an Award.

     3. Stock Subject to the Plan.

	 	(a)	 	Subject to the provisions of Section 17 hereof, the maximum aggregate number
of Shares that may be issued and sold under the Plan is 11,542,358 Shares. This
maximum number of Shares reserved and available for issuance under the Plan consists
of Shares reserved for issuance under the Predecessor Plan that as of May 2, 2005 were
either (i) available for grant pursuant to awards that may be made under the
Predecessor Plan or (ii) subject to outstanding options granted under the Predecessor
Plan which Shares might be returned to the Predecessor Plan but such Shares shall
become available for issuance hereunder only if and to the extent the options granted
under the Predecessor Plan to which they are subject terminate or expire or become
unexercisable for any reason without having been exercised in full.
	 
	 	(b)	 	An annual increase in the number of Shares reserved for issuance hereunder
shall automatically occur on the first day of each fiscal year of the Company,
beginning with fiscal year 2006 and ending with fiscal year 2010, equal to the lesser
of (i) 1,200,000 Shares (subject to adjustment under Section 17), (ii) 5% of the
outstanding Shares as of the last day of the immediately preceding fiscal year or
(iii) a number of Shares determined by the Board. The Shares may be authorized, but
unissued, or reacquired Shares, including Shares repurchased by the Company on the
open market.
	 
	 	(c)	 	If an outstanding Award expires or terminates for any reason prior to
exercise in full, or without the Shares subject thereto having been issued in full,
the unpurchased or unissued Shares which were subject thereto shall

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	 	 	 	become available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan pursuant to an Award shall not be returned to the Plan and shall not
become available for future distribution under the Plan, except that if unvested
Shares are repurchased by the Company at their original purchase price or otherwise
forfeited to the Company in connection with termination of a Participant’s status
as a Service Provider, such Shares shall become available for future grant under
the Plan. Should the exercise or purchase price of an Award under the Plan be paid
with Shares (including by withholding Shares from the Award) or should Shares
otherwise issuable under the Plan be withheld by the Company in satisfaction of the
Withholding Taxes incurred in connection with the exercise, purchase or issuance of
Shares under an Award, then the number of Shares available for issuance under the
Plan shall be reduced by the gross number of Shares issued in connection with the
Award, and not by the net number of Shares issued to the holder of such Award.

     4. Administration of the Plan.

	 	(a)	 	Procedure.

	 	(i)	 	Multiple Administrative Bodies. Different Committees with respect to
different groups of Service Providers may administer the Plan.
	 
	 	(ii)	 	Section 162(m). To the extent that the Administrator determines it
to be desirable to qualify Awards granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the Plan shall
be administered by a Committee of two or more “outside directors” within the
meaning of Section 162(m) of the Code.
	 
	 	(iii)	 	Rule 16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule
16b-3.
	 
	 	(iv)	 	Other Administration. Other than as provided above, the Plan shall
be administered by (A) the Board, (B) a Committee, which committee shall be
constituted to satisfy Applicable Laws or (C) subject to the Applicable Laws,
one or more officers of the Company to whom the Board or Committee has
delegated the power to grant Awards to persons eligible to receive Awards
under the Plan provided such grantees may not be officers or Directors.

	 	(b)	 	Powers of the Administrator. Subject to the provisions of the Plan, and in
the case of a Committee, subject to the specific duties delegated by the

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	 	 	 	Board to such Committee, the Administrator shall have the authority, in its
discretion:

     (A) to determine the Fair Market Value of the Common Stock in
accordance with Section 2(r) of the Plan;

     (B) to select the Service Providers to whom Awards may be granted
hereunder;

     (C) to determine the number of Shares or amount of cash to be covered
by each Award granted hereunder;

     (D) to approve forms of Award Agreements for use under the Plan;

     (E) to determine the terms and conditions, not inconsistent with the
terms of the Plan, of any Award granted hereunder, which terms and
conditions include, but are not limited to, the exercise price and/or
purchase price (if applicable), the time or times when Awards may be
exercised (which may be based on performance criteria), the vesting
schedule, any vesting and/or exercisability acceleration or waiver of
forfeiture restrictions, the acceptable forms of consideration, the term
and any restriction or limitation regarding any Award or the Shares
relating thereto, based in each case on such factors as the Administrator,
in its sole discretion, shall determine and may be established at the time
an Award is granted or thereafter;

     (F) to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan;

     (G) to prescribe, amend and rescind rules and regulations relating to
the Plan, including rules and regulations relating to sub-plans
established for the purpose of satisfying applicable foreign laws;

     (H) to modify or amend each Award (subject to Section 19 hereof),
including the discretionary authority to extend the post-termination
exercisability or purchase period of Awards longer than is originally
provided for in the Award Agreement;

     (I) to allow Participants to satisfy Withholding Tax obligations by
electing to have the Company withhold from the Shares to be issued upon
exercise or settlement of an Award that number of Shares having a Fair
Market Value equal to the minimum amount required to be withheld. The
Fair Market Value of the Shares to be withheld shall be determined on the
date that the amount of Withholding Tax is to be determined. All
elections

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by a Participant to have Shares withheld for this purpose shall be
made in such form and under such conditions as the Administrator may deem
necessary or advisable;

     (J) to authorize any person to execute on behalf of the Company any
instrument required to effect the grant of an Award previously granted by
the Administrator;

     (K) to make all other determinations deemed necessary or advisable
for administering the Plan.

	 	(c)	 	Effect of Administrator’s Decision. The Administrator’s decisions,
determinations and interpretations shall be final and binding on all Participants and
any other holders of Options, Stock Awards, Cash Awards or Shares issued under the
Plan.

     5. Eligibility. Nonstatutory Stock Options and Stock Awards may be granted to
Service Providers. Incentive Stock Options and Cash Awards may be granted only to Employees.

     6. Limitations.

	 	(a)	 	Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding
designation as an Incentive Stock Option, no installment under such an Option shall
qualify for favorable tax treatment as an Incentive Stock Option if (and to the
extent) the aggregate Fair Market Value of the Shares (determined at the date of
grant) for which such installment first becomes exercisable hereunder would, when
added to the aggregate value (determined as of the respective date or dates of grant)
of the Shares or other securities for which such Option or any other Incentive Stock
Options granted to Optionee prior to the date of grant (whether under the Plan or any
other plan of the Company or any Parent or Subsidiary of the Company) first become
exercisable during the same calendar year, exceed One Hundred Thousand Dollars
($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000)
limitation be exceeded in any calendar year, the Option shall nevertheless become
exercisable for the excess Optioned Shares in such calendar year as a Nonstatutory
Stock Option. For purposes of this Section 6(a), Incentive Stock Options shall be
taken into account in the order in which they were granted.
	 
	 	(b)	 	Neither the Plan nor any Award shall confer upon a Participant any right with
respect to continuing the Participant’s relationship as a Service Provider with the
Company, nor shall they interfere in any way with the Participant’s right or the
Company’s right to terminate such relationship at any time, with or without cause.

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	 	(c)	 	The following limitations shall apply to grants of Options and Stock Awards:

	 	(i)	 	No Service Provider shall be granted, in any fiscal year of the
Company, Awards covering more than 500,000 Shares, subject to adjustment as
provided in Section 17 below.
	 
	 	(ii)	 	However, in connection with his or her commencement of Service
Provider status, an individual may be granted Awards covering up to an
additional 1,000,000 Shares during the fiscal year in which such commencement
occurs, which shall not count against the limit set forth in subsection (i)
above and subject to adjustment as provided in Section 17 below.

     7. Term of Plan. The Plan shall become effective on the Effective Date. Unless the
Plan is terminated earlier pursuant to Section 19 hereof, the Plan shall terminate upon the
earliest to occur of (a) June 28, 2015, (b) the date on which all Shares available for issuance
under the Plan shall have been issued as fully vested Shares or (c) the termination of all
outstanding Awards in connection with a dissolution or liquidation pursuant to Section 17(b) hereof
or a Corporate Transaction pursuant to Section 17(c) hereof. Should the Plan terminate on June 28,
2015, then all Awards outstanding at that time shall continue to have force and effect in
accordance with the provisions of the applicable Award Agreement.

     8. Term of Option. The term of each Option shall be stated in the Option Agreement;
provided, however, that the term shall be no more than ten (10) years from the date of grant or
such shorter term as may be provided in the Option Agreement. Moreover, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock
Option shall be five (5) years from the date of grant or such shorter term as may be provided in
the Option Agreement.

     9. Option Exercise Price and Consideration.

	 	(a)	 	Exercise Price. The per Share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be determined by the Administrator, subject to
the following:

     (i) In the case of an Incentive Stock Option

     (A) granted to an Employee who, at the time the Incentive Stock
Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant.

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     (B) granted to any Employee other than an Employee described in
paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

	 	(ii)	 	In the case of a Nonstatutory Stock Option, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the
date of grant.

	 	(b)	 	Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall
determine any conditions (including any vesting conditions) that must be satisfied
before the Option may be exercised.
	 
	 	(c)	 	Form of Consideration. The Administrator shall determine the acceptable form
of consideration for exercising an Option, including the method of payment. Such
consideration may consist entirely of:

	 	(i)	 	cash;
	 
	 	(ii)	 	check; 
	 
	 	(iii)	 	other Shares which, in the case of Shares acquired directly or
indirectly from the Company, (A) have been owned by the Optionee for more than
six (6) months on the date of surrender (if it is required to eliminate or
reduce accounting charges incurred by the Company in connection with the
Option, or such other period (if any) required to so eliminate or reduce such
charges), and (B) have a Fair Market Value on the date of surrender equal to
the aggregate exercise price of the Shares as to which said Option shall be
exercised;
	 
	 	(iv)	 	consideration received through a special sale and remittance
procedure pursuant to which the Optionee shall concurrently provide
irrevocable instructions to (A) a Company-designated brokerage firm to effect
the immediate sale of the purchased Shares and remit to the Company, out of
the sale proceeds available on the settlement date, sufficient funds to cover
the aggregate exercise price payable for the purchased Shares plus all
Withholding Taxes required to be withheld by the Company by reason of such
exercise and (B) the Company to deliver the certificates for the purchased
Shares directly to such brokerage firm in order to complete the sale;
	 
	 	(v)	 	a reduction in the amount of any Company liability to the Optionee,
including any liability attributable to the Optionee’s participation in any
Company-sponsored deferred compensation program or arrangement;

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	 	(vi)	 	any combination of the foregoing methods of payment; or
	 
	 	(vii)	 	such other consideration and method of payment for the issuance of
Optioned Shares as determined by the Administrator and to the extent permitted
by Applicable Laws.

	 	(d)	 	No Option Repricings. Other than in connection with a change in the
Company’s capitalization (as described in Section 17(a) of the Plan), the exercise
price of an Option may not be reduced without stockholder approval.

     10. Exercise of Option.

	 	(a)	 	Procedure for Exercise; Rights as a Stockholder.

	 	(i)	 	Any Option granted hereunder shall be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by
the Administrator and set forth in the Option Agreement. Unless the
Administrator provides otherwise, vesting of Options granted hereunder shall
be suspended during any unpaid leave of absence. An Option may not be
exercised for a fraction of a Share.
	 
	 	(ii)	 	An Option shall be deemed exercised when the Company receives: (A)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (B) full
payment for the Optioned Shares with respect to which the Option is exercised
and (C) satisfaction of any Withholding Taxes. Full payment may consist of
any consideration and method of payment authorized by the Administrator and
permitted by the Plan and shall be set forth in the Option Agreement. Shares
issued upon exercise of an Option shall be issued in the name of the Optionee
or, if requested by the Optionee, in the name of the Optionee and his or her
spouse. Until the Shares are issued (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Optioned Shares, notwithstanding
the exercise of the Option. The Company shall issue (or cause to be issued)
such Shares promptly after the Option is exercised. No adjustment will be
made for a dividend or other right for which the record date is prior to the
date the Shares are issued, except as provided in Section 17 hereof.
	 
	 	(iii)	 	Exercising an Option in any manner shall decrease the number of
Optioned Shares thereafter available, both for purposes of the Plan

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	 	 	 	and for sale under the Option, by the number of Shares as to which the
Option is exercised.

	 	(b)	 	Termination of Relationship as a Service Provider. If an Optionee ceases to
be a Service Provider, other than upon the Optionee’s death or Disability, such
Optionee may exercise his or her Option for a period of three (3) months measured from
the date of termination, or such longer period of time as specified in the Option
Agreement, to the extent that the Option is vested on the date of termination (but in
no event later than the expiration of the term of the Option as set forth in the
Option Agreement); provided, however, that, unless otherwise provided by the
Administrator in the Option Agreement, any Officer or Outside Director (as of the date
of termination) may exercise his or her Option for a period of twelve (12) months
measured from the date of termination, or such longer period of time as specified in
the Option Agreement, to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option as
set forth in the Option Agreement). If, on the date of termination, the Optionee is
not vested as to his or her entire Option, the Option shall immediately terminate as
to all the Optioned Shares covered by the unvested portion of the Option, and those
Optioned Shares shall revert immediately to the Plan. To the extent the Optionee does
not, within the post-termination time period determined pursuant to this
Section 10(b), exercise the Option for the Optioned Shares in which Optionee is vested
at the time of such termination of Service Provider status, the Option shall terminate
with respect to those vested Optioned Shares at the end of such period, and those
Optioned Shares shall revert to the Plan.
	 
	 	(c)	 	Disability of Optionee. If an Optionee ceases to be a Service Provider as a
result of the Optionee’s Disability, the Optionee may exercise his or her Option
within twelve (12) months of termination, or such longer period of time as specified
in the Option Agreement, to the extent the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set forth in
the Option Agreement). If, on the date of termination, the Optionee is not vested as
to his or her entire Option, the Option shall immediately terminate as to the Optioned
Shares covered by the unvested portion of the Option, and those Optioned Shares shall
revert immediately to the Plan. To the extent the Optionee does not, within the
post-termination time period determined pursuant to this Section 10(c), exercise the
Option for the Optioned Shares in which Optionee is vested at the time of such
termination of Service Provider status, the Option shall terminate with respect to
those vested Optioned Shares at the end of such period, and those Optioned Shares
shall revert to the Plan.
	 
	 	(d)	 	Death of Optionee. If an Optionee dies while a Service Provider, the Option
may be exercised within twelve (12) months following Optionee’s

13

 

	 	 	 	death, or such longer period of time as specified in the Option Agreement, to the
extent that the Option is vested on the date of death (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement) by
the Optionee’s designated beneficiary, provided such beneficiary has been
designated prior to Optionee’s death in a form acceptable to the Administrator. If
no such beneficiary has been designated by the Optionee, then such Option may be
exercised by the personal representative of the Optionee’s estate or by the
person(s) to whom the Option is transferred pursuant to the Optionee’s will or in
accordance with the laws of descent and distribution. If, at the time of death,
the Optionee is not vested as to his or her entire Option, the Option shall
immediately terminate as to the Optioned Shares covered by the unvested portion of
the Option, and those Optioned Shares shall immediately revert to the Plan. To the
extent the Option is not, within the post-termination time period determined
pursuant to this Section 10(d), exercised for the Optioned Shares in which Optionee
is vested at the time of such termination of Service Provider status, the Option
shall terminate with respect to those vested Optioned Shares, and those Optioned
Shares shall revert to the Plan.

     11. Awards to Outside Directors. Outside Directors shall automatically be granted
Options and/or Stock Units as determined by the Board in accordance with the following provisions:

	 	(a)	 	The number of Shares subject to each Option or Stock Unit granted pursuant to
this Section 11, or the formula pursuant to which such number shall be determined, the
date of grant, and the vesting, expiration, and other terms applicable to such Option
or Stock Unit shall be specified from time to time by the Board, subject to the terms
of this Plan.
	 
	 	(b)	 	All Options granted pursuant to this Section shall be Nonstatutory Stock
Options and, except as otherwise provided in this Section 11, shall be subject to the
other terms and conditions of the Plan.
	 
	 	(c)	 	Each individual who becomes an Outside Director after the Effective Date
shall automatically be granted an Option to purchase, and/or a Stock Unit with respect
to, such number of Shares, as determined from time to time by the Board (the “First
Award”), on the date such individual is elected as a Director, whether through
election by the stockholders of the Company or appointment by the Board to fill a
vacancy; provided, however, that an Inside Director who ceases to be an Inside
Director but who remains a Director shall not receive a First Award.
	 
	 	(d)	 	On each annual stockholder meeting commencing with the Effective Date, each
Outside Director who continues to serve in such capacity immediately after such annual
stockholder meeting shall automatically be granted an Option to purchase, and/or a
Stock Unit with respect to, such

14

 

	 	 	 	number of Shares, as determined from time to time by the Board (a “Subsequent
Award”); provided that the Outside Director has served on the Board for at least
six calendar months prior to the date of such annual stockholder meeting.
	 	(e)	 	The terms of a First Award or a Subsequent Award granted pursuant to this
Section shall be as follows:

	 	(i)	 	The term of the Option shall be ten (10) years measured from the date
of grant.
	 
	 	(ii)	 	The Option shall be exercisable only during the time that the
Outside Director remains a Director and, with respect to Optioned Shares
vested on the last day of service as a Director, for the twelve (12) month
period following the date of the Optionee’s cessation of service as a
Director, provided, however, that the Option cannot be exercised after the
expiration of the term of the Option. If, at the time of Optionee’s cessation
of service as a Director, the Optionee is not vested as to his or her entire
Option, the Option shall immediately terminate as to the Optioned Shares
covered by the unvested portion of the Option, and those Optioned Shares shall
immediately revert to the Plan. To the extent the Option is not, within the
post-termination time period determined pursuant to this Section 11(d)(ii),
exercised for the Optioned Shares in which the Optionee is vested at the time
of his or her cessation of Director status, the Option shall terminate with
respect to those vested Optioned Shares, and those Optioned Shares shall
revert to the Plan.
	 
	 	(iii)	 	The exercise price per Share shall be 100% of the Fair Market Value
per Share on the date of grant of the Option.
	 
	 	(iv)	 	If an Outside Director dies or ceases to serve as a Director as a
result of the Outside Director’s Disability while holding any outstanding
Option under this Section 11, then that Option may be exercised within twelve
(12) months following such Outside Director’s death or termination, or such
longer period of time as specified in the Option Agreement, to the extent that
the Option is vested on the date of death or termination (but in no event
later than the expiration of the term of such Option as set forth in the
Option Agreement) by the Outside Director or the Outside Director’s designated
beneficiary, provided such beneficiary has been designated, prior to the death
of the Outside Director, in a form acceptable to the Administrator. If no
such beneficiary has been designated by the Outside Director, then such Option
may be exercised by the personal representative of such Outside Director’s
estate or by the person(s) to whom the Option is transferred

15

 

	 	 	 	pursuant to such Outside Director’s will or in accordance with the laws of
descent and distribution. If, at the time of death or termination as a
result of Disability, the Outside Director is not vested as to such
Outside Director’s entire Option, the Option shall immediately terminate
as to the Optioned Shares covered by the unvested portion of the Option,
and those Optioned Shares shall immediately revert to the Plan. To the
extent the Option is not, within the post-termination time period
determined pursuant to this Section 11(d)(vi), exercised for the Optioned
Shares in which the Outside Director is vested at the time of death or
termination as a result of Disability, the Option shall terminate with
respect to those vested Optioned Shares, and those Optioned Shares shall
revert to the Plan.
	 
	 	(v)	 	In the event of a Corporate Transaction, all Options and Stock Units
granted pursuant to this Section 11 shall be subject to the terms and
conditions of Section 17(c); provided that in the event that the successor
corporation does not assume or substitute each First Award and Subsequent
Award, the Optionee shall fully vest in each Award and shall have the right to
exercise the Option as to all of the Optioned Shares, including Shares as to
which it would not otherwise be vested or exercisable.

	 	(f)	 	The Board shall have sole and exclusive authority to establish, maintain,
amend, suspend, and terminate any program by which Outside Directors are automatically
granted Nonstatutory Stock Options pursuant to this Section 11.

     12. Limited Transferability of Options. An Option generally may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only
by the Optionee; provided however that Nonstatutory Stock Options may be transferred by instrument
to an inter vivos or testamentary trust in which the Nonstatutory Stock Options are to be passed to
beneficiaries upon the death of the trustor (settlor) or by gift or pursuant to domestic relations
orders to “Immediate Family Members” (as defined below) of the Optionee. “Immediate Family” means
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law (including adoptive relationships), a trust in which these persons have more than
fifty percent of the beneficial interest, a foundation in which these persons (or the Optionee)
control the management of assets, and any other entity in which these persons (or the Optionee) own
more than fifty percent of the voting interests. The Optionee may designate one or more persons as
the beneficiary or beneficiaries of his or her outstanding Options, and those Options shall, in
accordance with such designation, automatically be transferred to such beneficiary or beneficiaries
upon the Optionee’s death while holding those Options. Such beneficiary or beneficiaries shall
take the transferred Options subject to all the terms and conditions of the applicable agreement

16

 

evidencing each such transferred Option, including (without limitation) the limited time
period during which the Option may be exercised following the Optionee’s death.

     13. Stock Grants and Stock Unit Awards. Each Stock Award Agreement reflecting the
issuance of a Stock Grant or Stock Unit shall be in such form and shall contain such terms and
conditions as the Administrator shall deem appropriate. The terms and conditions of such
agreements may change from time to time, and the terms and conditions of separate agreements need
not be identical, but each such agreement shall include (through incorporation of provisions hereof
by reference in the agreement or otherwise) the substance of each of the following provisions:

	 	(a)	 	Consideration. A Stock Grant or Stock Unit may be awarded in consideration
for such property or services as is permitted under Applicable Law, including for past
services actually rendered to the Company or a Subsidiary for its benefit.
	 
	 	(b)	 	Vesting. Shares of Common Stock awarded under an agreement reflecting a
Stock Grant and a Stock Unit award may, but need not, be subject to a share repurchase
option, forfeiture restriction or other conditions in favor of the Company in
accordance with a vesting or lapse schedule to be determined by the Administrator.
	 
	 	(c)	 	Termination of Participant’s Relationship as a Service Provider. In the
event a Participant’s relationship as a Service Provider terminates, the Company may
reacquire any or all of the Shares held by the Participant which have not vested or
which are otherwise subject to forfeiture or other conditions as of the date of
termination under the terms of the agreement.
	 
	 	(d)	 	Transferability. Except as determined by the Board, no rights to acquire
Shares under a Stock Grant or a Stock Unit shall be assignable or otherwise
transferable by the Participant except by will or by the laws of descent and
distribution.

     14. Stock Appreciation Rights.

	 	(a)	 	General. Stock Appreciation Rights may be granted either alone, in addition
to, or in tandem with other Awards granted under the Plan. The Administrator may
grant Stock Appreciation Rights to eligible Participants subject to terms and
conditions not inconsistent with this Plan and determined by the Administrator. The
specific terms and conditions applicable to the Participant shall be provided for in
the Stock Award Agreement. Stock Appreciation Rights shall be exercisable, in whole
or in part, at such times as the Administrator shall specify in the Stock Award
Agreement.
	 
	 	(b)	 	Exercise of Stock Appreciation Right. Upon the exercise of a Stock
Appreciation Right, in whole or in part, the Participant shall be entitled to a
payment in an amount equal to the excess of the Fair Market Value on

17

 

	 	 	 	the date of exercise of a fixed number of Shares covered by the exercised portion
of the Stock Appreciation Right, over the Fair Market Value on the grant date of
the Shares covered by the exercised portion of the Stock Appreciation Right (or
such other amount calculated with respect to Shares subject to the award as the
Administrator may determine). The amount due to the Participant upon the exercise
of a Stock Appreciation Right shall be paid in such form of consideration as
determined by the Administrator and may be in cash, Shares or a combination
thereof, over the period or periods specified in the Stock Award Agreement. A
Stock Award Agreement may place limits on the amount that may be paid over any
specified period or periods upon the exercise of a Stock Appreciation Right, on an
aggregate basis or as to any Participant. A Stock Appreciation Right shall be
considered exercised when the Company receives written notice of exercise in
accordance with the terms of the Stock Award Agreement from the person entitled to
exercise the Stock Appreciation Right.
	 
	 	(c)	 	Transferability. Except as determined by the Board, no Stock Appreciation
Rights shall be assignable or otherwise transferable by the Participant except by will
or by the laws of descent and distribution.

     15. Cash Awards. Each Cash Award will confer upon the Participant the opportunity
to earn a future payment tied to the level of achievement with respect to one or more performance
criteria established for a performance period of not less than one (1) year.

	 	(a)	 	Cash Award. Each Cash Award shall contain provisions regarding (i) the
target and maximum amount payable to the Participant as a Cash Award, (ii) the
Qualifying Performance Criteria and level of achievement versus these criteria which
shall determine the amount of such payment, (iii) the period as to which performance
shall be measured for establishing the amount of any payment, (iv) the timing of any
payment earned by virtue of performance, (v) restrictions on the alienation or
transfer of the Cash Award prior to actual payment, (vi) forfeiture provisions, and
(vii) such further terms and conditions (including, without limitation, the effect
that a termination as a Service Provider shall have on any Cash Award) in each case
not inconsistent with the Plan, as may be determined from time to time by the
Administrator. The maximum amount payable as a Cash Award may be a multiple of the
target amount payable, but the maximum amount payable pursuant to that portion of a
Cash Award granted under this Plan for any fiscal year to any Participant shall not
exceed U.S. $1,000,000.
	 
	 	(b)	 	Performance Criteria. The Administrator shall establish the Qualifying
Performance Criteria and level of achievement versus these criteria which shall
determine the target and the minimum and maximum amount payable under a Cash Award.
The Administrator may specify the

18

 

	 	 	 	percentage of the target Cash Award that is intended to satisfy the requirements
for “performance-based compensation” under Section 162(m) of the Code.
Notwithstanding anything to the contrary herein, the performance criteria for any
portion of a Cash Award that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall be a
measure established by the Administrator based on one or more Qualifying
Performance Criteria selected by the Administrator and specified in writing not
later than 90 days after the commencement of the period of service to which the
performance goals relates, provided that the outcome is substantially uncertain at
that time (or in such other manner that complies with Section 162(m)).
	 
	 	(c)	 	Timing and Form of Payment. The Administrator shall determine the timing of
payment of any Cash Award. The Administrator may provide for or, subject to such
terms and conditions as the Administrator may specify and Applicable Laws, may permit
a Participant to elect for the payment of any Cash Award to be deferred to a specified
date or event. The Administrator may specify the form of payment of Cash Awards,
which may be cash or other property, or may provide for a Participant to have the
option for his or her Cash Award, or such portion thereof as the Administrator may
specify, to be paid in whole or in part in cash or other property. Cash Awards shall
be structured to comply with the “short-term deferral” rules of Section 409A of the
Code.

     16. Section 162(m) Compliance. Any Stock Award (other than an Option or any other
Stock Award having a purchase price equal to 100% of the Fair Market Value on the date such award
is made) or Cash Award that is intended as “qualified performance-based compensation” within the
meaning of Section 162(m) of the Code must vest or become exercisable or payable contingent on the
achievement of one or more Qualifying Performance Criteria. Notwithstanding anything to the
contrary herein, the Committee shall have the discretion to determine the time and manner of
compliance with Section 162 (m) of the Code as required under applicable regulations and to conform
the procedures related to the Award to the requirements of Section 162(m) and may in its discretion
reduce the number of Shares granted or amount of cash or other property to which a Participant may
otherwise have been entitled with respect to an Award designed to qualify as performance-based
compensation under Section 162(m).

     17. Adjustments Upon Changes in Capitalization, Dissolution or Corporate
Transaction.

	 	(a)	 	Changes in Capitalization. Subject to any required action by the
stockholders of the Company, (i) the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Award, (ii) the number
of Shares that may be added annually to the Plan pursuant to Section 3(b) hereof,
(iii) the number of

19

 

	 	 	 	Shares subject to each First Award and Subsequent Award under Section 11 hereof,
(iv) the maximum numbers of Shares that may be granted under Awards to any Service
Provider within any fiscal year as set forth in Section 6(c) and (v) the number of
Shares as well as the price per Share subject to each outstanding Award, shall be
proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued Shares effected without receipt of consideration
by the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose
determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number or
price of Shares.
	 
	 	(b)	 	Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Participant as soon as
practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may (but need not) provide for a Participant to have
the right to exercise his or her Option or Stock Award until ten (10) days prior to
such transaction as to all of the Shares covered thereby, including Shares as to which
the Option or Stock Award would not otherwise be exercisable. In addition, the
Administrator may (but need not) provide that any Company repurchase option applicable
to any unvested Shares purchased upon exercise of an Option or issued under a Stock
Award shall lapse as to all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the extent it
has not been previously exercised, an Award will terminate immediately prior to the
consummation of such proposed action.
	 
	 	(c)	 	Corporate Transaction.

	 	(i)	 	In the event of a Corporate Transaction, as determined by the Board
or a Committee, the Board or Committee may, in its discretion, (i) provide for
the assumption or substitution of, or adjustment to, each outstanding Award;
(ii) accelerate the vesting of Options and terminate any restrictions on Cash
Awards or Stock Awards; and/or (iii) provide for termination of Awards as a
result of the Corporate Transaction on such terms and conditions as it deems
appropriate, including providing for the cancellation of Awards for a cash
payment to the Participant. For the purposes of this paragraph, the Award
shall be considered assumed if, following the Corporate Transaction, the Award
confers the right

20

 

	 	 	 	to purchase or receive, for each Share or amount of cash covered by the
Award immediately prior to the Corporate Transaction, the consideration
(whether stock, cash, or other securities or property) received in the
Corporate Transaction by holders of Common Stock for each Share held on
the effective date of the Corporate Transaction (and if holders were
offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that
if such consideration received in the Corporate Transaction is not solely
common stock of the successor corporation or its Parent, the Administrator
may, with the consent of the successor corporation, provide for the
consideration to be received upon the exercise of the Award, for each
Share covered by the Award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share
consideration received by holders of Shares in the Corporate Transaction.
	 
	 	(ii)	 	Each Option or Stock Award which is assumed pursuant to this Section
17(c) shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have
been issuable to the Participant in consummation of such Corporate Transaction
had the Option or Stock Award been exercised immediately prior to such
Corporate Transaction. Appropriate adjustments to reflect such Corporate
Transaction shall also be made to (A) the exercise or purchase price payable
per share under each outstanding Option or Stock Award, provided the aggregate
exercise or purchase price payable for such securities shall remain the same,
(B) the maximum number and/or class of securities available for issuance over
the remaining term of the Plan, (C) the maximum number and/or class of
securities for which any one person may be granted Options or Stock Awards
under the Plan per year, (D) the maximum number and/or class of securities by
which the share reserve is to increase automatically each year and (E) the
number and/or class of securities subject to the Options granted under Section
11.
	 
	 	(iii)	 	Notwithstanding the foregoing, as may be determined by the
Administrator, any such adjustment shall not (i) cause an Award which is
exempt from Section 409A of the Code to become subject to Section 409A of the
Code or (ii) cause an Award subject to Section 409A of the Code not to comply
with the requirements of Section 409A of the Code.

     18. Date of Grant. The date of grant of a First Award or Subsequent Award shall be
the date on which it was automatically granted pursuant to Section 11 hereof. The date of grant of
any other Award shall be, for all purposes, the date on which the

21

 

Administrator grants such Award. Notice of the grant shall be provided to each Participant
within a reasonable time after the date of such grant.

     19. Amendment and Termination of the Plan. The Board may at any time amend, alter,
suspend or terminate the Plan. However, the Company shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws. In addition, no
amendment, alteration, suspension or termination of the Plan shall impair the rights of any
Participant under any grant theretofore made, unless mutually agreed otherwise between the
Participant and the Administrator, which agreement must be in writing and signed by the Participant
and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date
of such termination. In addition, unless approved by the stockholders of the Company, no amendment
shall be made that would result in a repricing of Options by (x) reducing the exercise price of
outstanding Options or (y) canceling an outstanding Option held by a Participant and re-granting to
the Participant a new Option with a lower exercise price, in either case other than in connection
with a change in the Company’s capitalization pursuant to Section 17(a) of the Plan.

     20. Conditions Upon Issuance of Shares.

	 	(a)	 	Awards shall not be granted and Shares shall not be issued pursuant to the
exercise of an Award unless the grant of the Award, the exercise or settlement of such
Award and the issuance and delivery of such Shares shall comply with Applicable Laws
and shall be further subject to the approval of counsel for the Company with respect
to such compliance.
	 
	 	(b)	 	No Shares or other assets shall be issued or delivered under the Plan unless
and until there shall have been compliance with all applicable requirements of Federal
and state securities laws, including the filing and effectiveness of the Form S-8
registration statement for the Shares, and all applicable listing requirements of any
stock exchange (or the Nasdaq National Market, if applicable) on which Common Stock is
then listed for trading.

     21. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction (including under Section 20), which authority is
deemed by the Company’s counsel to be necessary to the lawful grant of Awards and issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
grant such Awards or issue or sell such Shares as to which such requisite authority shall not have
been obtained.

     22. Reservation of Shares. The Company, during the term of this Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

22

 

     23. Stockholder Approval. If required by Applicable Laws, continuance of the Plan
shall be subject to approval by the stockholders of the Company within twelve (12) months after the
date the Plan is adopted or after any amendment requiring stockholder approval is made. Such
stockholder approval shall be obtained in the manner and to the degree required under Applicable
Laws.

23Exhibit 10.1

EXHIBIT 10.1

SPACE EXPLORATION TECHNOLOGIES CORPORATION

FALCON 1e COMMERCIAL LAUNCH SERVICES AGREEMENT

This Launch Services Agreement, including all appendices, exhibits and attachments referenced
herein, (“Agreement”) is entered into as of August 28, 2009 (“Effective Date of Agreement”) by and
between Space Exploration Technologies Corp., a Delaware corporation with headquarters at 1 Rocket
Road, Hawthorne, California 90250 (“SpaceX”) and ORBCOMM Inc., a Delaware corporation with
headquarters at 2115 Linwood Avenue, Fort Lee, New Jersey 07024 (“Customer”). SpaceX and Customer
are hereinafter also referred to individually as “Party” and collectively as the “Parties.”

WHEREAS, SpaceX provides launch services using the Falcon 1e launch vehicle (“Falcon 1e”); and

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

 

 

WHEREAS, Customer desires to purchase launch services for its eighteen (18) ORBCOMM Generation 2
Spacecraft (“OG2 Spacecraft”) into low Earth orbit within the parameters set forth in Appendix 1,
Statement of Work, and Appendix 2, Interface Requirements Document, utilizing multiple Falcon 1e
launch vehicles to launch up to [***...***] OG2 Spacecraft per flight mission;

WHEREAS, SpaceX and Customer have executed a Letter Agreement Relating to the Procurement of Falcon
1e Commercial Launch Services, dated as of July 13, 2009, as amended (the “Letter Agreement”), and
wish to memorialize in further detail the prospective terms and conditions contained therein;

NOW THEREFORE, the Parties hereby agree as follows:

1. Definitions.

“Additional Services” means the optional services identified in Section 7 of the Statement of Work
that may be procured by Customer and furnished by SpaceX in accordance with Section 2.1 of this
Agreement.

“Affiliate” means, in relation to a Party, any other entity that directly or indirectly Controls
(as defined below), is Controlled by, or is under direct or common Control with, such Party from
time to time. For purposes of this definition, Control and its derivatives mean, with respect to
an entity: (i) the legal, beneficial, or equitable ownership, directly or indirectly, of fifty
percent (50%) or more of the capital stock (or other ownership interest if not a corporation) of
such entity ordinarily having voting rights; or (iii) the power to direct, directly or indirectly,
the management policies of such entity, whether through the ownership of voting stock, by contract,
or otherwise.

“Analogous Mission” shall have the meaning set forth in Section 7 of this Agreement.

“Bank Holiday” means any Day on which United States national banks located in New York, New York
are authorized to be closed.

“Best Efforts” means, with respect to a Party, a duty to act in good faith and with all due
diligence and prudence consistent with applicable law in accordance with best practices and the
highest professional standards in a commercially reasonable manner adhered to by a launch services
provider or commercial satellite owner, as the case may be.

“Business Day“ means any Day other than Saturday, Sunday, or a Bank Holiday.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

2

 

“Change Order” shall have the meaning set forth in Section 21 of this Agreement.

“Commercial Space Launch Act” means 49 U.S.C. §§ 70101-70121.

“Confidential Information” shall have the meaning set forth in Section 13.3 of this Agreement.

“Constructive Total Failure” means that, due to a Falcon 1e Launch Vehicle Deviation (and not
attributable to the Payload or Customer-provided separation system), the following situations
occur, as reasonably determined by available flight data telemetry or other objective evidence,
either: (i) the Payload’s ability to operate in accordance with its performance specifications and
for its intended commercial purposes is reduced by [***...***]. For purposes of the Launch and
In-Orbit Insurance policy, if any (and not for any other purpose hereunder), this definition shall
be modified to reflect the meaning ascribed to the concept of “constructive total loss” in
Customer’s policy of Launch and In-Orbit Insurance, if any, in place at the time of Launch.

“Contract Price” shall have the meaning set forth in Section 3.1 of this Agreement.

“Day” means a calendar day.

“Dispenser(s)” means the hardware, including the strongback adaptor, to be integrated with the
Launch Vehicle (including all embedded firmware and software) to interface with, integrate the OG2
Spacecraft as the Payload, and separate and deploy the OG2 Spacecraft into their designated
orbit(s), as specified in Appendix 1, Statement of Work, and Appendix 2, Interface Requirements
Document. In the event that SpaceX supplies the Dispenser for any Launch Services hereunder, such
Dispenser shall be considered an integral component of the corresponding Falcon 1e Launch Vehicle.

“Deviation” means non-compliance with the specifications included in the Interface Requirements
Document [***...***], including its reference documents, applicable documents and annexes, with
respect to: [***...***].

“DO/DX” Launch shall have the meaning set forth in Section 4.2.1 of this Agreement.

“Down Payment” means Payment One (1) in the Payment and Milestone Schedule.

“Excusable Delays” means a delay by a Party in the performance of its obligations or commitments
under this Agreement that is beyond the control of such Party and not due to its fault or
negligence in reasonably anticipating and avoiding such delays, including acts of God, acts of
government in its sovereign capacity, launch range unavailability for Launch, acts or threat of
terrorism, earthquake, riot, revolution, hijacking, fire, strike (other than a strike involving the
employees of SpaceX or Customer), embargo, sabotage, or interruption of essential public services
such as electricity, natural gas, fuels and/or water. Notwithstanding the above,
failure by either Party timely to obtain any required governmental license, permit or authorization
shall not be deemed an Excusable Delay.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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“Failure Review Board” shall have the meaning set forth in Section 19 of this Agreement.

“Gain Sharing Option” shall have the meaning set forth in Section 2.4 of this Agreement.

“Insured Launch Activities” shall have the meaning set forth in Section 9.1 of this Agreement.

“Intentional Ignition” means the time during the Launch countdown sequence when the engine ignition
command signal is initiated causing ignition of the first stage engine of the Launch Vehicle.

“Interface Control Document” means [***...***].

“Interface Requirements Document” means that document attached as Appendix 2 to this Agreement,
[***...***].

“Inventions” shall have the meaning set forth in Section 12 of this Agreement.

“ITAR” shall have the meaning set forth in Section 17 of this Agreement.

“Launch” means Intentional Ignition followed by either (i) Lift-Off or (ii) a Launch Failure.

“Launch Activities” means the activities authorized by the launch license issued by the Federal
government pursuant to the Commercial Space Launch Act.

“Launch and In-Orbit Insurance” means insurance purchased by Customer or any Affiliate, or Related
Third Party of Customer covering either or both of: (i) the risks of loss with respect to the
Payload, including one or more OG2 Spacecraft on the Launch Vehicle; and (ii) the value of the
Launch Service.

“Launch Failure” means either a Total Failure or Constructive Total Failure.

“Launch Interval” means [***...***] period of time during which a Launch Date is to occur, as
established by the Parties in accordance with Section 4.1 of this Agreement.

“Launch Range” means the U.S. Government entity with authority over the Launch Site and its related
operations, as well as the associated property and facilities.

“Launch Service” and “Launch Services” shall have the meanings set forth in Section 2.1.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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“Launch Site” means the SpaceX launch facility at Ronald Reagan Ballistic Missile Defense Test
Site, United States Army Kwajalein Atoll (RTS-USAKA) or another SpaceX launch facility mutually
agreed upon in writing by the Parties.

“Launch Slot” means a [***...***] period of time during which a Launch Date is to occur, as
established by the Parties under this Agreement in accordance with Section 4.1.

“Launch Vehicle” means, in each instance, the Falcon 1e launch vehicle, utilized by SpaceX to
perform the Launch of the respective Payload.

“Licenses” shall have the meaning set forth in Section 17 of this Agreement.

“Lift-Off” means physical separation of the Launch Vehicle from the launch pad and ground support
equipment and release of the hold-down restraints for the purpose of Launch.

“Milestone” shall have the meaning set forth in Section 5.1.2.

“Milestone Payment” shall have the meaning set forth in Section 5.1.2.

“Payload” means [***...***] OG2 Spacecraft, individually or in the aggregate, which are, or are
intended to be, integrated with a single Falcon 1e for the purpose of Launch.

“Payment and Milestone Schedule” means the schedule provided in Appendix 3.

“Profit” shall have the meaning set forth in Section 2.2 of this Agreement.

“Pro Rata Launch Price” means [***...***].

“Reasonable Efforts” means, with respect to a Party, standards, practices, methods, and procedures
consistent with applicable law and that degree of effort, skill, diligence, prudence, and foresight
that would reasonably and ordinarily be expected from a launch services provider or commercial
satellite owner, as the case may be.

“Reflight Launch Services” shall have the meaning set forth in Section 8.1.4 of this Agreement.

“Reflight Option” shall have the meaning set forth in Section 8.1 of this Agreement.

“Related Third Parties” means (i) the Parties’ respective contractors and subcontractors at every
tier that are involved in activities relating to the performance of this Agreement; (ii) the
Parties’ respective directors, officers, employees, and agents; and (iii) any entity or person with
any valid right, title or interest in the Launch Services or the Payload or the Falcon 1e or ground
support equipment.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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“Statement of Work” or “SOW” means Appendix 1 and any other attached document or additional
document which has been expressly referenced or incorporated into the SOW (including by Agreement
amendment) and which reflects the scope of work to be performed by SpaceX under this Agreement and
which specifies each Party’s programmatic and technical performance requirements and obligations,
under this Agreement.

“Termination Fee” shall have the meaning set forth in Section 16.2(a) of this Agreement.

“Terminated Ignition” means Intentional Ignition not followed by Lift-Off.

“Third Party” means an individual or legal entity other than the Parties, its Affiliates or Related
Third Parties.

“Total Failure” means that due to a Falcon 1e Deviation (and not attributable to the Payload or
Customer-provided separation system), the Payload is completely destroyed, permanently lost or
unable to be physically separated from the Falcon 1e, resulting in the total loss of the Payload,
as reasonably determined by available flight data telemetry or other objective evidence.

2. Services to be Provided.

2.1 SpaceX hereby agrees to furnish to Customer multiple dedicated (except as expressly provided
for in Section 2.2) Launches utilizing the Falcon 1e from the Launch Site, as well as Payload
integration services, and third party launch liability insurance coverage in the amount required by
any applicable U.S. Government launch license, for the carriage of eighteen (18) OG2 Spacecraft
(except as expressly provided for in Section 2.4) as multiple Payloads on multiple Falcon 1e Launch
Vehicles in accordance with and subject to the terms and conditions of this Agreement (each
individually a “Launch Service”; or, collectively, the “Launch Services”). Additional Services may
be contracted for and provided by SpaceX on a time and materials basis, subject to the mutual
agreement of the Parties evidenced in a writing signed by both Parties in accordance with Section
30. Fees for such Additional Services are not included in the Contract Price.

2.2 [***...***]

2.3 Except as provided in Section 2.4, the Launch Services shall be considered complete upon Launch
of eighteen (18) OG2 Spacecraft. Each Launch Service, individually, shall be considered complete
upon Launch of the corresponding Payload assigned to such Launch mission.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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2.4 [***...***].

3. Contract Price.

3.1 The contract price for the Launch Services shall be the firm fixed price of Forty-Six Million
Six Hundred Thousand U.S. Dollars ($46,600,000), paid in accordance with the payment schedule set
forth in the Payment and Milestone Schedule as provided in Appendix 3 (“Contract Price”). For the
avoidance of any doubt, the Contract Price does not include any Additional Services that may be
procured by Customer, the cost of any options that may be exercised by Customer under this
Agreement, and is subject to adjustment in accordance with the terms of this Agreement. Any
Reflight Launch Services provided in accordance with Section 8 are in addition to, and not in lieu
of, the Launch Services provided in accordance to Section 2.1.

3.2 [***...***]

4. Launch Schedule and Manifest Policy.

4.1 Each Launch Service provided for under this Agreement shall occur within a [***...***] period
(each, a “Launch Period”), with the first Launch Period beginning [***...***], 2010 and ending
[***...***]; and with each subsequent Launch Period beginning no earlier than [***...***] following
the end of the preceding Launch Period (or preceding Launch Date, whichever is later), in
accordance with the following anticipated schedule, which may be amended by mutual written
agreement of the Parties:

	 	 	 
	Launch Period No. 1
	 	[***...***], 2010 - [***...***]
	 
	 	 
	Launch Period No. 2
	 	[***...***] - [***...***]
	 
	 	 
	Launch Period No. 3
	 	[***...***] - [***...***]
	 
	 	 
	Launch Period No. 4
	 	[***...***] - [***...***]
	 
	 	 
	Launch Period No. 5
	 	[***...***] - [***...***], 2014

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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The Parties shall determine in writing: (i) no later than [***...***] prior to the start of each
Launch Period, a [***...***] period during which the Launch Date will fall (the “Launch Slot”);
(ii) no later than [***...***] prior to the start of the Launch Slot, the Launch Interval; and
(iii)
no later than [***...***] prior to the Launch Interval, the actual Day of the Launch (“Launch
Date”). The Launch Date shall be within each Launch Period, Launch Slot and Launch Interval and
shall be determined by mutual written agreement of the Parties in accordance with this Section and
based on Launch Site and Launch Range availability, Falcon 1e readiness and Payload readiness.

Customer shall have access to SpaceX’s integration facility located at the Launch Site for a
minimum period of [***...***] prior to the applicable Launch Date, and, if reasonably determined
possible by SpaceX based on availability, up to [***...***] prior to the applicable Launch Date.
In order to provide sufficient time for necessary Payload to Launch Vehicle integration activities
and related testing and check-out procedures, Customer shall deliver the Payload to the Launch Site
no later than [***...***] prior to the Launch Date having completed all pre-shipment testing
requirements and ready for Launch Site processing and integration. SpaceX shall not be responsible
for storage costs for the Payload or Customer equipment in the event of early delivery or a delayed
Launch attributable to Customer; however, SpaceX shall reasonably assist Customer in mitigating
such costs to the extent feasible.

For the avoidance of doubt, in the event that a Launch Date is delayed for any reason by either
Party beyond the end of its corresponding Launch Period, the subsequent Launch Period shall be
rescheduled, to begin no earlier than [***...***] following the preceding Launch Date, provided
that, in the event SpaceX’s launch manifest allows for an earlier than [***...***] start of the
rescheduled Launch Period, at Customer’s request, SpaceX shall reschedule the applicable Launch
Period accordingly. Pursuant to Section 11.4, delays associated with any distinct Launch Service
shall cease accumulating upon the respective Launch.

4.2 Manifest Policy. SpaceX and Customer shall comply with the launch schedule prioritization
policy set forth in this Section 4.2 in the event of a delay caused by either Customer or SpaceX.

4.2.1 Subject to Section 4.2.2, SpaceX agrees and acknowledges that, consistent with its manifest
policy, Customer’s Launch Service (including any Reflight Launch Services) will not be displaced
from the Launch Period, Launch Slot, or Launch Date, as established in accordance with Section 4.1,
by another customer of SpaceX with a contract executed subsequent to the Effective Date of
Agreement, or option exercise date occurring subsequent to the Effective Date of Agreement, with
the following exceptions: (i) Customer has notified SpaceX that the Payload shall be unavailable
with respect to the agreed upon Launch Period, Launch Slot, Launch Interval or Launch Date; (ii) a
Third Party launch is designated by the U.S. Government as a DO or DX rated order and such rating
order is invoked in connection with an imperative national need in accordance with the Commercial
Space Launch Act (“DO/DX Launch”); (iii) planetary,
science or International Space Station servicing missions with time critical launch windows; (iv)
reflight missions, if optioned, for other customers following a failed SpaceX launch service; (v)
displacement due to Launch Range unavailability; or (vi) [***...***].

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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4.2.2 In the event of a SpaceX delay of either Customer’s Launch or prior Third Party launch
service, the pre-existing order of manifested launches shall remain in effect as of the date of the
SpaceX delay, unless the other mission is a DO/DX Launch, planetary, science or International Space
Station servicing mission with time critical launch windows or a Third Party customer reflight
mission, if optioned, following a failed launch. Such missions shall be given special
consideration (and their place in the Launch order may change) in order to support their required
launch timeframe.

4.2.3 In the event of a Customer delay that would significantly affect subsequent SpaceX
Third-Party customer Launch schedules, Customer’s next Launch will be re-sequenced to the next open
Launch Period opportunity, taking into account the commercial requirements and interests of
Customer and SpaceX.

4.2.4 In the event of a SpaceX Third-Party customer delay that would significantly affect
Customer’s schedule, the Third-Party customer will be re-sequenced to the next open launch
opportunity unless the Third-Party customer’s mission is a DO/DX Launch or a planetary, science or
International Space Station servicing mission with a time critical launch window. Such missions
shall be given special consideration (for example, their place in the firing order could change) in
order to support their required launch timeframe.

5. Payment Terms.

5.1 Payment Schedule. The Contract Price shall be paid by Customer to SpaceX in accordance with
the payment plan set forth in the Payment and Milestone Schedule, including the Down Payment and
Milestone Payments, the former to be invoiced pursuant to Section 5.1.1 and the latter to be
invoiced pursuant to Section 5.2 below.

5.1.1 Down Payment. The Down Payment specified in the Payment and Milestone Schedule provided in
Appendix 3 shall be due upon receipt of the corresponding invoice from SpaceX following execution
of this Agreement and will be paid in accordance with Section 5.2 herein. The Parties acknowledge
that the Four Million Five Hundred Thousand dollar ($4,500,000) deposit payment made by Customer to
SpaceX pursuant to the Letter Agreement shall be the Down Payment for purposes hereunder.

5.1.2 Milestone Payments. Upon the completion of any milestone set forth in Appendix 3 (each a
“Milestone” and collectively, the “Milestones”) in accordance with the Milestone completion
criteria set forth in the SOW, SpaceX shall be entitled to the payment (each a “Milestone Payment”)
identified in the Payment and Milestone Schedule provided in Appendix 3, and Customer shall pay the
applicable invoice issued by SpaceX in accordance with Section 5.2.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

9

 

5.1.3 Payment Dates. If a payment falls due on a Day other than a Business Day, then such payment
shall be due on the following Business Day.

5.1.4. Disputed Payments. If, in the reasonable judgment of Customer, a Milestone has not been
completed in accordance with the requirements of this Agreement and the relevant Milestone
completion criteria in the SOW, Customer shall so notify SpaceX in writing within fifteen (15) Days
of receipt of the applicable invoice issued in accordance with Section 5.2, and within ten (10)
Days thereafter provide in reasonable detail the requirements associated with the applicable
Milestone that has not been met. In the event SpaceX disputes Customer’s contention that the
applicable Milestone has not been completed in accordance with the requirements of this Agreement
and the Milestone completion criteria in the SOW, the Parties shall attempt to resolve such dispute
by escalating the matter to their respective executives who are at a higher level of management
than the persons with direct responsibility for administration of this Agreement. If it is
determined that the applicable Milestone had been timely completed by SpaceX in accordance with the
requirements of this Agreement, Customer shall immediately pay the applicable Milestone Payment, to
include late payment interest in accordance with Section 5.3. If, however, it is determined that
the applicable Milestone had not been completed by SpaceX as originally claimed, the Milestone
Payment for the corresponding Milestone shall not be due and payable by Customer until such time
the Milestone is successfully completed in accordance with the requirements of this Agreement and
the Milestone completion criteria in the SOW. Notwithstanding the foregoing, if the dispute cannot
be resolved within [***...***] of Customer’s initial notification pursuant to this Section 5.1.4,
then either Party may immediately begin dispute resolution proceedings in accordance with Section
22.

5.2 Invoices. For the Down Payment and each Milestone Payment, SpaceX shall submit to Customer an
invoice for payment after completion of a Milestone consistent with the SOW, on or after the
corresponding Milestone Payment due date listed in the Payment and Milestone Schedule, including
SpaceX’s certification that the applicable Milestone completion criteria have been met in
accordance with the Milestone completion criteria in the SOW. For the avoidance of doubt, no
invoice for a Milestone Payment may be submitted by SpaceX until the later of: (i) all requirements
of the applicable Milestone having been met; and (ii) the applicable Milestone Payment due date.
Payment shall be made by Customer to SpaceX, for any Milestone Payment within [***...***] of
submission of an invoice by SpaceX in accordance with the requirements of this Section 5. All
invoices delivered under this Agreement shall be complete and reasonably
detailed in order to provide Customer with sufficient information to ascertain the nature and scope
of the charges included therein.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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5.2.1 Upon the occurrence of each Launch, regardless of outcome, any payments made under this
Agreement to the extent directly attributable to the corresponding Launch Service as set forth in
Appendix 3 (whether received by SpaceX or due and owing to SpaceX) shall be considered earned and
nonrefundable by SpaceX and shall not be subject to the provisions of Section 16.2.

5.3 Subject to Section 5.1.4, if any undisputed payments due and owing by Customer to SpaceX under
this Agreement shall remain unpaid after the payment due date and if SpaceX has provided Customer
written notice thereof and [***...***] period to cure, then Customer shall pay interest to SpaceX
at a rate of [***...***] of such undisputed payment, compounded annually. Interest will be
computed commencing as of the Business Day after the original due date until and including the date
payment is actually made, unless paid during the cure period, in which case no interest shall be
due. If a payment is withheld because of a bona fide dispute and that dispute is later settled in
favor of SpaceX, interest will be computed commencing as of the Business Day after the original due
date until and including the date payment is actually made.

5.4 Invoice Address. SpaceX shall invoice Customer at the following address:

ORBCOMM Inc.

2115 Linwood Avenue

Fort Lee, NJ 07024

Attn: [***...***]

with a copy sent to the following e-mail address:

[***...***]

and a separately delivered copy to:

ORBCOMM Inc.

22270 Pacific Boulevard

Dulles, VA 20166

Attn: [***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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with a copy sent to the following e-mail address:

[***...***]Payment shall be made by Customer via electronic deposit of funds into the following
SpaceX corporate bank account:

[***. . .***]

6. Taxes. After due inquiry and investigation, SpaceX represents and warrants that on the Effective
Date of this Agreement, no taxes, duties and other levies imposed by the United States government
or any political subdivision thereof are due for the activities and transactions contemplated by
this Agreement, including any Launch Services (“Taxes”). However, should such Taxes be imposed,
SpaceX shall, on a Best Efforts basis, challenge the validity and imposition of such Taxes via all
available remedies at the time. If SpaceX is unable to successfully challenge the validity and
imposition of any Taxes, and such Taxes remain due and payable, the Parties shall in good faith
consult with each other and agree to a fair and equitable compromise as regards the payment of the
Taxes.

7. [***...***]

8. Reflight Option.

8.1. [***...***]

8.2 The Reflight Option provided for in this Section 8 shall not include the cost of any
replacement of all or any portion of the Payload or its related value, which shall be the exclusive
responsibility of Customer. Launch and In-Orbit Insurance shall be purchased independently by the
Customer and shall expressly waive rights of subrogation as to SpaceX and its Related Third
Parties.

8.3 [***...***]

8.4 Customer agrees that the Reflight Launch Services shall be its sole and exclusive remedy for
any Launch Failure, howsoever caused, and regardless of the theory of liability, provided, however,
that this remedy shall be available only when Customer has purchased the Reflight Option in
accordance with the terms of this Agreement and Customer has reasonably complied with all of its
other obligations, including the obligation to make payment, under this Agreement.

In the event a Launch Service for which a Reflight Option has been purchased does not result in a
Launch Failure, then SpaceX shall be deemed to have earned the Reflight Option fee without further
obligation or liability to Customer.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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9. Insurance.

9.1 Third Party Liability Insurance. SpaceX shall procure and maintain in effect third party launch
liability insurance to provide for the payment of claims resulting from property loss or damage or
bodily injury, including death, sustained by Third Parties caused by an occurrence resulting from
such launch activities as are prescribed by the Commercial Space Launch Act and supporting
regulations and the terms of the Federal launch license issued to SpaceX pursuant thereto (“Insured
Launch Activities”). The insurance shall have limits in amounts required by the Office of the
Federal Aviation Administration’s Associate Administrator for Commercial Space Transportation as
set forth in the applicable license issued to SpaceX pursuant to the Commercial Space Launch Act
and supporting regulations, and shall be subject to standard industry exclusions and/or
limitations. Duration of coverage for damage, loss or injury sustained by Third Parties arising in
any manner in connection with Insured Launch Activities shall be in accordance with the Commercial
Space Launch Act, its supporting regulations, and the applicable launch license. The third party
liability insurance shall at a minimum designate as named insured SpaceX and as additional insured
Customer and the respective Related Third Parties of the Parties as identified by each Party, the
U.S. Government and its contractors and subcontractors involved in Launch Services, and SpaceX’s
contractors and subcontractors involved in Launch Services. Such insurance shall provide that the
insurers shall waive all rights of subrogation that may arise by contract or at law against any
additional insured. Third-party launch liability insurance does not cover any loss of or damage to
the Payload even if such claim is brought by any Third Party or Related Third Parties. The cost of
third party launch liability insurance, up to the extent required by the Commercial Space Launch
Act and its supporting regulations, is included within the Contract Price.

9.2 Excess Third Party Liability for Launch Activities. To the extent not covered by the third
party launch liability insurance or eligible for payment by the United States Government pursuant
to the Commercial Space Launch Act, SpaceX shall be exclusively liable to third parties for any
death, injury, loss or damage to any Third Party arising from the Launch Activities caused solely
by SpaceX or its equipment, including the Falcon 1e or parts or components thereof. To the extent
not covered by the third party launch liability insurance or eligible for payment by the United
States Government pursuant to the Commercial Space Launch Act, Customer shall be exclusively liable
to Third Parties for any death, injury, loss or damage arising from the Launch Activities caused
solely by Customer or its equipment, including the Payload or parts or components thereof.

9.3 Insurance Required by Launch License. SpaceX shall provide such insurance as is required by
the launch license issued by the United States Department of Transportation for loss of or damage
to United States Government property. The cost of insurance as required by the launch license is
included in the Contract Price.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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9.4 Launch and In-Orbit Insurance. Customer shall obtain a waiver of subrogation and release of any
right of recovery against SpaceX and its Related Third Parties from any insurer providing Launch
and In-Orbit Insurance coverage. Subject to the limitations of U.S. export control laws and
regulations, SpaceX shall provide customary and normal support to assist Customer in obtaining
Launch and In-Orbit Insurance, including: (i) supporting Customer with all necessary presentations
(oral, written or otherwise), including attendance and participation in such presentations where
reasonably requested by Customer; (ii) providing on a timely basis all reasonable and appropriate
technical information, data and documentation; and (iii) providing documentation and answers to
insurer inquiries.

9.5 [***...***]

9.6 Cooperation with Regard to Insurance. Each Party agrees to cooperate with the other Party in
obtaining relevant reports and other information in connection with the presentation by either
Party of any claim under insurance required by this Section 9. A Party seeking indemnification
under this Section 9 shall, subject to U.S. export control laws and regulations: (i) promptly
advise the indemnitor of any damage or injury incurred, or the filing of any suit or any written or
oral claim against it; (ii) provide the indemnitor with copies of all relevant documentation; and
(iii) cooperate with the indemnitor and its insurers in every reasonable manner in making or
defending against such claim. A Party seeking indemnification shall not make any admission nor
shall it reach a compromise or settlement without the prior written approval of the indemnitor.

9.7 Assistance with Claims for Insurance Recovery. Subject to U.S. export control laws and
regulations, including any applicable provisos or conditions imposed by the U.S. Government in
DSP-5 or Technical Assistance Agreement authorizations, as well as reasonable technology export
security measures, each Party shall cooperate with and provide reasonable support to the other, in
making and perfecting claims for insurance recovery and as to any legal proceeding associated with
any claim for insurance recovery. As may be requested in writing by Customer from time-to-time,
such support may include: (i) providing on-site inspections as required by Customer’s insurers and
underwriters; (ii) participating in review sessions with a competent representative selected by the
insurers and underwriters to discuss any continuing issue relating to such occurrence, including
information conveyed to either Party; (iii) using commercially Reasonable Efforts to secure access
for the insurers and underwriters to certain information used in or resulting from any
investigation or review of the cause or effects of such occurrence; (iv) making available for
inspection and copying certain information reasonably available that is necessary to establish the
basis of a claim; and (v) supporting Customer in establishing the basis of any loss under its
Launch and In-Orbit Insurance policy. Customer agrees to reimburse
SpaceX for any necessary and documented out-of-pocket expenses in connection with any insurance
claim or recovery assistance provided by SpaceX in accordance with this Section 9.7.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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9.8 Evidence of Insurance and Waivers of Subrogation. For any of the insurance policies or waivers
required under this Agreement (to include waivers of subrogation), each Party shall provide the
other Party with a certificate evidencing such insurance or waiver within thirty (30) Days of a
written request by the other Party.

10. Cross Waivers of Liability.

10.1 Waivers. SpaceX and Customer hereby agree to a reciprocal waiver of claims and release of
liability pursuant to which each Party agrees to assume the risk and agrees not to sue or otherwise
bring a claim against the other Party or that Party’s Related Third Parties or against the U.S.
Government and its contractors and subcontractors, for any property loss or damage, including loss
of or damage to the Payload or the Falcon 1e, or other financial loss it sustains, or for any
injury, death, property loss or damage or other financial loss sustained by its employees,
officers, directors or agents, arising in any manner out of or in connection with activities
relating to the performance of this Agreement, or other related activities in or around the Launch
Site or Payload processing area, or the operation or performance of the Launch Vehicle or the
Payload. Such waiver of liability applies to all damages of any sort or nature, including but not
limited to any direct, indirect, special, incidental or consequential damages or other loss of
revenue or business injury or loss such as costs of effecting cover, lost profits, lost revenues,
or costs of recovering a payload or the Payload, from damages to the Payload before, during or
after Launch or from the failure of the Payload to reach their planned orbit or operate properly.

10.2 Extension of Waivers. SpaceX and Customer shall each extend the waiver of claims and release
of claims of liability as provided in Section 10.1 to its Related Third Parties (other than
employees, directors and officers) by requiring them to waive and release all claims of liability
they may have against the other Party, that Party’s Related Third Parties or the U.S. Government
and its contractors and subcontractors at every tier and to agree to be responsible for any
property loss or damage, including loss of or damage to the Payload or the Falcon 1e, or other
financial loss they may sustain, or for any injury, death, property loss or damage or other
financial loss sustained by their employees, officers, directors or agents, arising in any manner
out of or in connection with activities relating to the performance of this Agreement, or other
related activities in or around the Launch Site or Payload processing area, or the operation or
performance of the Launch Vehicle or the Payload.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

15

 

10.3 Indemnification. SpaceX and Customer hereby agree to defend, indemnify and hold harmless the
other Party and its Related Third Parties from and against any liabilities, costs and
expenses (including attorneys’ fees, costs and expenses), arising as a result of claims brought by
the indemnifying Party’s Related Third Parties for any property loss or damage, including loss of
or damage to the Payload, or other financial loss it sustains or for any personal injury or bodily
injury, including death, property loss or damage or other financial loss sustained by such Related
Third Parties, arising in any manner out of or in connection with activities carried out pursuant
to this Agreement, other activities in and around the Launch Site or the Payload processing area,
or the operation or performance of the Launch Vehicle or the Payload. Such indemnification applies
to any claim for direct, indirect, special, incidental or consequential damages or other loss of
revenue or business injury or loss, including but not limited to costs of effecting cover, lost
profits or lost revenues, resulting from any loss of or damage to the Payload before, during, or
after Launch or from the failure of the Payload to reach its planned orbit or operate properly.

10.4 Applicability. Claims of liability are waived and released regardless of whether loss, damage
or injury arises from the acts or omissions, negligent or otherwise, of either Party or its Related
Third Parties. The waivers of liability shall apply regardless of the theory of liability, whether
based in contract or tort, including negligence, product liability, and strict liability, or any
other theory of liability. In no event shall this waiver of liability prevent or encumber
enforcement of the Parties’ contractual rights and obligations to each other as specifically
provided in this Agreement. The waiver and release by each Party and its Related Third Parties of
claims of liability against the other Party and the Related Third Parties of the other Party
extends to the successors and assigns, whether by subrogation or otherwise, of the Party and its
Related Third Parties. Each Party shall obtain a waiver of subrogation and release of any right of
recovery against the other Party and its Related Third Parties from any insurer providing coverage
for the risks of loss for which the Party hereby waives claims of liability against the other Party
and its Related Third Parties. Nothing in this Section 10 shall preclude SpaceX from suing or
otherwise bringing a claim against its own Related Third Parties, nor shall it preclude Customer
from suing or otherwise bringing a claim against its own Related Third Parties. The Parties agree
to further memorialize the rights and obligations described in this Section 10 in any agreement
that may be advised or required by the U.S. Government, to include execution of cross-waivers
substantially in the form of Exhibit 1 to this Agreement. Notwithstanding anything in this Section
10 to the contrary, in the event of a conflict between the requirements of Section 440.17 of the
Commercial Space Transportation Regulations (14 C.F.R. §440.17) and any provision of this Section
10 of the Agreement, the requirements of 14 C.F.R. §440.17 shall take precedence.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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11. Delays.

11.1 Excusable Delays.

	 	(a)	 	Neither Party shall be liable for any delay in the performance of its obligations under
this Agreement in the event such delay or failure to perform is due to an Excusable Delay
and provided that the affected Party seeking to invoke this Section 11.1 notifies the other
Party in writing within five (5) Business Days of the occurrence of an Excusable Delay,
including a reasonable description of the causes thereof and such Parties’ efforts to avoid
the Excusable Delay or mitigate the impact thereof. If the Excusable Delay occurs during
the Launch Slot for any Launch Service to be provided under this Agreement, the affected
Party seeking to invoke this Section 11.1 shall notify the other Party immediately, and as
soon as possible thereafter, provide the information detailed in the immediately preceding
sentence. Failure by either Party timely to obtain any required governmental license,
permit or authorization shall not be deemed an Excusable Delay.

	 	(b)	 	Subject to Section 16, the period of performance under this Agreement with respect to
the affected Launch Service(s) shall be extended by the duration of the Excusable Delay and
Customer’s obligation to make payments hereunder with respect to Launch Services due during
the period of an Excusable Delay shall be extended for a period equal to the duration of
the Excusable Delay without late payment interest. Such extension period will be reasonably
agreed to by both Parties in writing.

11.2 Customer Delays. Customer shall be entitled to request a delay or postponement to the Launch
Date up through [***...***], but subject to the delay liability fees provided for in this Section
11.2. If Customer’s request for a delay or postponement to the Launch Date occurs following
[***...***]. Regardless of the request for delay or postponement by Customer, with the exception
of the final payment owed to SpaceX for Launch under Section 5.1, Customer payments shall continue
in accordance with the Payment Schedule established in Section 5.1. If Customer causes or requests
any delay to the Launch Date for any particular Launch Service that is not an Excusable Delay as
provided in Section 11.1, whether with respect to the Payload or otherwise, including delays due to
Customer’s contractors or subcontractors, exceeding three hundred sixty-five (365) Days beyond the
last Day of the Launch Period for such Launch Service, or beyond any subsequent Launch Date for
such Launch Service as duly established by the Parties or the last Day of any subsequent Launch
Period for such Launch Service, whichever is earlier, separate and distinct from any necessary and
documented expense reimbursement as provided for in this Section 11.2, Customer agrees pay to
SpaceX delay liability fees based on the following schedule:

	 	(a)	 	Except as otherwise set forth above with respect to a delay following [***...***],
nothing for the first three hundred sixty-five (365) Days;

	 
	 	(b)	 	[***...***]; and

	 
	 	(c)	 	[***...***].

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

17

 

Nothing in this Section 11 shall be construed as allowing for non-payment of prior existing and
outstanding invoice payments owed by Customer.

11.3 SpaceX Delays. If SpaceX causes or requests any delay or postponement to the Launch Date
(other than an Excusable Delay), Customer’s payment obligations as established in Section 5.1 for
the relevant Launch Service shall be suspended on a day-for-day basis commensurate with the period
of delay or postponement of the relevant Launch Service requested by SpaceX. Furthermore, if such
delays or postponements associated with the Falcon 1e (other than an Excusable Delay) cause delays
or postponements beyond the last Day of the Launch Period for such Launch Service, or beyond any
subsequent Launch Date for such Launch Service as duly established by the Parties or the last Day
of any subsequent Launch Period for such Launch Service, whichever is earlier, then SpaceX agrees
to pay Customer delay liability fees based on the following schedule:

	 	(a)	 	[***...***];

	 
	 	(b)	 	[***...***]; and

	 
	 	(c)	 	[***...***].

11.4 No “Domino Effect.” Calculation of delays under this Section 11 shall be construed to apply
to each distinct Launch Service under this Agreement. In the event that a delay by Customer or
SpaceX results in a Launch Date occurring after the last Day of the corresponding Launch Period,
the Parties agree that subsequent Launch Periods for the subsequent Launch Services shall be
rescheduled, as necessary based on available SpaceX launch opportunities in accordance with Section
4, subject to SpaceX’s Reasonable Efforts to mitigate any delays to the applicable Launch Service,
based on the actual date of the preceding Launch. With respect to any delays caused or requested
by SpaceX, Customer’s payment obligations as established in Section 5.1 for the relevant Launch
Service shall be suspended on a day-for-day basis commensurate with the period of delay or
postponement. Accordingly, any liability either Party may incur for delays associated with one
Launch Period shall not extend to subsequent rescheduled Launch Periods and Launch Services. Any
liability for delays associated with each Launch Service shall end upon the relevant Launch.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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12. Intellectual Property. At no time shall either Party have any ownership rights or any other
rights or license to any Inventions of the other Party or of the other Party’s Related Third
Parties
including, without limitation, any Inventions conceived and first actually reduced to practice in
the course of performance of this Agreement by such other Party. The Parties do not intend to
jointly develop any Inventions under this Agreement. As used in this Section 12, “Inventions” means
all ideas, designs, concepts, techniques, inventions, discoveries, works of authorship,
modifications, improvements, or derivative works, regardless of patentability.

13. Confidentiality.

13.1 Confidentiality of this Agreement. Subject to Section 13.5, neither Party shall disclose any
of the terms of this Agreement to any third party without the prior written consent of the other
Party, except as necessary in the reasonable judgment of a Party to comply with any judicial or
other governmental requirement, or when disclosure is required by a governmental agency or under
applicable laws, including by the U.S. Securities and Exchange Commission or any securities
exchange on which the securities of a Party or its Affiliate are then trading, or as otherwise
expressly provided for herein, and with reasonable notice provided in writing to the affected Party
at least five (5) Days in connection with an 8K filing and ten (10) Business Days in advance of any
other written disclosure (provided that such notice periods are possible in connection with any
disclosures required or compelled by a governmental agency or under applicable laws).

13.2 Announcements. No public announcement, release, or other disclosure of information relating to
this Agreement, including the existence of this Agreement, shall be made except by prior written
agreement of the Parties on the specific content of such disclosure; however, such agreement may
not be unreasonably be withheld. Notwithstanding the foregoing, either Party shall be permitted to
make disclosures necessary or in good faith determined to be reasonably necessary under the
Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

13.3 Confidential Information. SpaceX and Customer each agree to retain in confidence all
non-public information, trade secrets, and know-how disclosed pursuant to this Agreement which is
designated as proprietary and/or confidential or information which the receiving Party should
understand from the nature of the information is confidential to the disclosing Party
(“Confidential Information”). Each Party agrees to: (1) preserve and protect the confidentiality of
the other Party’s Confidential Information; (2) refrain from using the other Party’s Confidential
Information except as contemplated in this Agreement; (3) disclose the Confidential Information
only to its directors, officers, employees or agents as is reasonably required in connection with
the exercise of that Party’s rights and obligations under this Agreement and subject to a binding
non-disclosure agreement that is at least as protective as this Section 13; and (4) not disclose
Confidential Information to any third party, provided, however, that either Party may disclose
Confidential Information of the other Party that is: (a) already in the public domain through no
fault of the disclosing Party; (b) discovered or created by the receiving Party without reference
to the Confidential Information of the disclosing Party; (c) otherwise made known to the receiving
Party through no wrongful conduct of the receiving Party or the entity providing the information to
the receiving Party; or (d) required to be disclosed by judicial or other governmental action,
order or regulation. The confidentiality obligations of this Section 13 shall survive the
expiration or termination of this Agreement for a period of five (5) years.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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13.4 Notwithstanding any provision of this Section 13 to the contrary, either Party may disclose
the Confidential Information, including the terms of this Agreement: (1) in confidence, to legal
counsel; (2) in confidence, to accountants, banks, and financing sources and their advisors solely
for the purposes of securing financing; (3) in confidence, to its insurance broker and prospective
insurers solely for the purposes of securing insurance for the Payload and Launch Services and in
settling any claim for loss; (4) in connection with the enforcement of this Agreement or rights
under this Agreement; or (5) in confidence, in connection with an actual or proposed merger,
acquisition, or similar transaction solely for use in the due diligence investigation in connection
with such transaction.

13.5 Notwithstanding any other provision within this Section 13, but nevertheless subject to U.S.
export control laws and regulations, Customer may disclose the terms of this Agreement or the
Confidential Information (or both), to its Affiliates, provided that the Affiliate agrees in
writing to confidentiality terms at least as protective for SpaceX as the terms of this Section 13.
Customer shall be fully responsible for any breach of these confidentiality provisions by any
Affiliate.

14. LIMITATION OF LIABILITY.

14.1 NO CONSEQUENTIAL DAMAGES. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND, FOR THE COST OF PROCUREMENT
OF SUBSTITUTE PRODUCTS OR SERVICES, WITH THE EXCLUSION OF THE REFLIGHT LAUNCH SERVICES TO THE
EXTENT THE REFLIGHT OPTION IS PURCHASED BY CUSTOMER, OR FOR LOST REVENUES OR PROFITS, ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT, HOWSOEVER CAUSED AND REGARDLESS OF THE THEORY OF
LIABILITY, WHETHER BASED IN CONTRACT OR TORT, INCLUDING NEGLIGENCE, PRODUCT LIABILITY, AND STRICT
LIABILITY, OR ANY OTHER THEORY OF LIABILITY.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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14.2 TOTAL LIABILITY. EXCEPT IN INSTANCES OF WILLFUL MISCONDUCT, SPACEX’S TOTAL AND CUMULATIVE
LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT HOWSOEVER CAUSED AND REGARDLESS OF
THE THEORY OF LIABILITY, WHETHER BASED IN CONTRACT OR TORT, INCLUDING NEGLIGENCE, PRODUCT
LIABILITY, AND STRICT LIABILITY, OR ANY OTHER THEORY OF LIABILITY, SHALL IN NO EVENT EXCEED
[***...***].

14.3 WARRANTIES. EXCEPT FOR AND TO THE EXTENT OF THE REFLIGHT OPTION (IF PURCHASED BY CUSTOMER),
SPACEX HAS NOT MADE, NOR DOES IT MAKE, ANY REPRESENTATION OR WARRANTY, WHETHER WRITTEN OR ORAL,
WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF DESIGN, OPERATION,
QUALITY, WORKMANSHIP, SUITABILITY, RESULT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE
WITH RESPECT TO THE FALCON 1E, LAUNCH SERVICES, OR ASSOCIATED EQUIPMENT AND SERVICES. ANY IMPLIED
WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE
HEREBY EXPRESSLY DISCLAIMED.

14.4 Application. The limitations set forth in this Section 14 shall apply even if SpaceX has been
advised of the possibility of such losses or damages, and notwithstanding any failure of essential
purpose of any limited remedy set forth in this Agreement. The Parties acknowledge that the amounts
payable hereunder are based in part on the limitations of this Section 14 and that such limitations
are a bargained-for and essential part of this Agreement.

14.5 Destruction of the Falcon 1e and Payload. The range safety officer or equivalent is authorized
to destroy the Falcon 1e and Payload, without liability to either Party or either Party’s Related
Third Parties, if, after Intentional Ignition, in the range safety officer’s or equivalent’s sole
discretion, such destruction is essential to prevent bodily injury, including death, or property
loss or damage.

15. Custody and Control of Payload and Related Equipment. Customer or its contractor shall
exclusively retain the risk of damage to the Payload and related equipment, including ground
support equipment or Dispensers, from delivery to SpaceX through Payload integration and Launch. In
the event Customer, in its sole discretion, procures insurances to cover any loss of or damage to
the Payload, such insurance shall expressly waive subrogation rights against SpaceX and its Related
Third Parties. At the request of SpaceX, Customer shall provide SpaceX with a certificate (or
certificates, as applicable) of insurance evidencing such waiver(s) of subrogation.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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16. Termination.

16.1 Mutual Agreement. This Agreement may be terminated by mutual consent of the Parties in
writing signed by the duly authorized representatives of both Parties.

16.2 Customer’s Right to Terminate. Customer may terminate this Agreement upon thirty (30) Days
prior written notice to SpaceX, as follows:

	 	(a)	 	Termination for Convenience. Customer may terminate for its convenience at any time,
for any reason or no reason, this Agreement in whole or in part, or any Launch Service
remaining to be performed under this Agreement, subject to a termination for convenience
fee retained by SpaceX as specified in either: (i) Appendix 5 in the case where each and
every Launch Service as of the date of termination is not a Launch Failure, or (ii)
Appendix 6 in the case where one or more Launch Service as of the date of termination is a
Launch Failure, which amounts SpaceX shall retain without further obligation or liability
to Customer, and subject to retention by SpaceX of all amounts previously earned hereunder.

	 
	 	 	 	SpaceX shall refund amounts, if any, owed to Customer within thirty (30) Days of
receiving its written notice of termination for convenience. In the event that payments
received by SpaceX as of the date of Customer termination hereunder are less than the
amount reflected in Appendix 5 or 6 as applicable, Customer shall, within thirty (30)
Days, remit to SpaceX any balance owed. The applicable amount set forth as a
termination fee in this Section 16.2 is the fee charged to excuse Customer’s
non-performance. Customer and SpaceX agree that the applicable amount set forth above
does not constitute a penalty or estimate of future damages, but is a reasonable fee for
SpaceX excusing Customer non-performance at various points in time (“Termination Fee”).
For the avoidance of doubt, calculation of the Termination Fee is limited to the
applicable Launch Service(s) and: (i) does not include the payments earned by SpaceX for
previous Launch Services performed under this Agreement (as consistent with, Section
5.2.1 of this Agreement); (ii) once calculated, will be reduced by offsetting any
amounts paid by Customer and received by SpaceX in connection with any Launch Services
yet to be performed; and (iii) applies to cancel the remaining Launch Services to be
performed under this Agreement, and shall not apply or affect Customer’s option and
SpaceX’s obligation with respect to performance of any Reflight Launch Service.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

22

 

	 	(b)	 	With respect to each Launch Service, in the event SpaceX has claimed one or more
Excusable Delays under Section 11.1 and such Excusable Delays have continued for
a continuous or cumulative period exceeding [***...***] Customer shall have the option
to either substitute the Payload with a substantially similar payload or apply all
payments made under this Agreement with respect to the particular Launch Service to a
future mission to be contracted by the Parties within thirty (30) Days of written
notice. Notwithstanding the foregoing, if SpaceX has claimed one or more Excusable
Delays under Section 11.1 and such Excusable Delays have continued for a continuous or
cumulative period exceeding [***...***], Customer shall be entitled to terminate any
Launch Services not performed by SpaceX and receive a refund of all payments made under
this Agreement for the particular remaining Launch Service(s) (excluding any payments
earned by SpaceX pursuant to Section 5.2.1 for having completed a Launch Service),
within thirty (30) Days of corresponding notice of termination.

	 	(c)	 	With respect to each Launch Service, in the event SpaceX has postponed or provided
notice of postponement of the Launch Services, other than for Excusable Delays, for a
continuous or cumulative period exceeding [***...***] beyond the Launch Date for the first
Launch Service, and [***...***] beyond the Launch Date for subsequent Launch Services,
Customer shall have the option to either substitute the Payload with an alternative payload
or receive a refund of all payments made under this Agreement for the particular Launch
Service (excluding any payments earned by SpaceX pursuant to Section 5.2.1 for having
completed a Launch Service), within thirty (30) Days of notice of termination, as the case
may be;

	 	(d)	 	In the event of a material breach by SpaceX of its obligations under this Agreement,
and if, after having been given written notice of the same by Customer, SpaceX fails to
cure such material breach within [***...***]of receipt of such notice, SpaceX shall refund
all payments made by Customer under this Agreement, except for the payments earned by
SpaceX pursuant to Section 5.2.1 for having completed a Launch;

	 	(e)	 	[***...***]

	 	(f)	 	[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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16.3 SpaceX’s Right to Terminate.

	 	(a)	 	SpaceX shall have the right to terminate this Agreement or any Launch Service(s) not
yet provided under this Agreement and retain all payments made hereunder without further
obligation or liability to Customer if Customer fails to comply with any of its
material obligations set forth in this Agreement or the SOW, to include non-payment of
outstanding invoices, after Customer is given written notice of noncompliance and a
[***...***] period to cure such non-compliance and fails to cure such non-compliance
within such period.

	 	(b)	 	SpaceX shall have the right to terminate this Agreement and retain all payments made in
accordance with the terms of this Agreement, without further obligation or liability to
Customer upon thirty (30) Days prior written notice to Customer in the event that Customer
fails to deliver the Payload for the subsequent Launch to the Launch Site within
[***...***] of the corresponding Launch Date as initially scheduled.

16.4 Survival. The following Sections shall survive any expiration or termination of this
Agreement: 1, 6, 8, 9, 10, 12, 13, 14, 17, 18, 20, 22 and 23 to 32. Furthermore, Section 3.2 will
survive expiration (but not termination) of this Agreement.

17. Licenses. Each Party shall be responsible for obtaining any licenses, authorizations,
clearances, approvals or permits (“Licenses”) necessary to carry out its obligations under this
Agreement. Each Party agrees to provide reasonable assistance to the other Party as necessary to
obtain such Licenses. SpaceX shall be responsible for obtaining any Licenses required to carry out
the Launch Services, and SpaceX and Customer agree to provide information and to execute any
documentation needed to obtain such Licenses pursuant to applicable U.S. laws and regulations,
including but not limited to, the United States International Traffic in Arms Regulations, 22
C.F.R. Parts 120-130 (“ITAR”), and Regulations for the Importation of Arms, Ammunition and
Implements of War, 27 C.F.R. Part 447.

18. Compliance with Government Requirements.

18.1 SpaceX and Customer shall comply with their respective national, federal, state and local laws
and regulations, and any government licenses issued in connection with the performance of this
Agreement. In addition, Customer shall comply with all U.S. export and import laws, regulations,
rules, licenses and agreements related to the launch of Customer’s Payload, including but not
limited to the ITAR.

18.2 Customer shall be responsible for arranging for registration of each Payload, and SpaceX shall
be responsible for arranging for registration of each Falcon 1e, pursuant to the Convention on
Registration of Space Objects Launched Into Outer Space, done January 14, 1975, T.I.A.S. 8480.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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19. Failure Review Board. If the Falcon 1e or Falcon 9 experience a Launch Failure (and the Falcon
9 Launch Failure is attributable to a first stage engine, but not the result of the clustering
of the engines), then SpaceX shall only perform subsequent Launch Services under this Agreement
once the most probable cause of the Launch Failure has been identified and corrective actions have
been implemented to the satisfaction of the applicable failure review board (the “Failure Review
Board”) convened by SpaceX to evaluate the root cause of such Launch Failure. If SpaceX has not
already convened a Failure Review Board to evaluate such failure or underperformance, then Customer
may give written notice to SpaceX requesting that a Failure Review Board be convened. The Failure
Review Board shall consist of those technical disciplines necessary to assess the failure, its
cause and necessary corrective action, if any, required for future launch services. SpaceX shall
present to Customer the results of the final investigation by the Failure Review Board including
probable cause of failure, corrective action and impact on the Launch Services subject to the
confidentiality obligations under this Agreement and applicable export control laws and
regulations.

20. Notices.

20.1 Transmittal. All notifications and other data transmittals under this Agreement shall be in
writing and shall be hand-delivered or sent via express mail, first class mail, or electronic mail
to the addresses specified below with confirmation of receipt.

20.2 Effective Date for Future Correspondence. The date upon which any such communication is
hand-delivered or, if such communication is sent by mail or by electronic transmission, the date
upon which the addressee receives it, as confirmed by return receipt or other evidence of receipt,
shall be the effective date of such communication.

20.3 Change of Address. Each Party shall promptly notify the other in the event of any change in
their respective addresses.

For correspondence sent to SpaceX:

Space Exploration Technologies Corp.

1 Rocket Road

Hawthorne, CA 90250

Attn: [***...***]

PH.: [***...***]

Fax: [***...***]

Email: [***...***]

With a separately delivered copy to:

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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Space Exploration Technologies Corp.

1030 15th Street, NW

Suite 450

Washington, DC 20005

Telephone: [***...***]

Fax: [***...***]

E-mail: [***...***]

For correspondence sent to Customer:

ORBCOMM Inc.

2115 Linwood Avenue

Fort Lee, NJ 07024

Attn: [***...***]

PH.: [***...***]

Fax: [***...***]

Email: [***...***]

With a separately delivered copy to:

ORBCOMM Inc.

22270 Pacific Boulevard

Dulles, VA 20166

Attn: [***...***]

PH.: [***...***]

Fax: [***...***]

Email: [***...***]

21. Changes. Customer may, at any time request a change within the general scope of this Agreement
(“Change Order”).

21.1 Prior to initiating a Change Order, Customer shall issue a written request to SpaceX for a
proposal. [***...***] of receipt of Customer’s request (or such longer period as Customer may
reasonably agree to based on the scope of the Change Order), SpaceX shall provide Customer a
written proposal for implementation of the contemplated Change Order, including any adjustment to
the Contract Price, Launch Slot or Launch Date for the relevant Launch Service, the Milestones,
Milestone Payments or the SOW. For the avoidance of doubt, any adjustments to the Contract Price
shall account only for the [***...***]. [***...***].

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

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21.2 After receipt of Customer’s written approval of SpaceX’s proposal submitted pursuant to
Section 21.1, SpaceX shall immediately proceed with the Change Order, and as applicable, the
Parties shall execute any necessary amendment to this Agreement in accordance with Section 30 of
this Agreement within thirty (30) Days of Customer’s initiation of a Change Order. For the
avoidance of doubt, if a Change Order is not ultimately agreed to between the Parties, it shall not
otherwise alter the obligations of the Parties hereunder.

22. Dispute Resolution. The Parties shall attempt in good faith to resolve any dispute arising out
of or relating to this Agreement promptly by negotiation between executives who have authority to
settle the controversy and who are at a higher level of management than the persons with direct
responsibility for administration of this Agreement. If the dispute cannot be timely resolved, then
all disputes, claims or controversies of every kind and nature arising out of or relating to this
Agreement including the existence, construction, validity, interpretation, performance,
nonperformance, enforcement or breach of any provision of this Agreement, shall be settled by a
panel of three (3) arbitrators designated in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. The findings of such arbitrators shall be final, conclusive
and binding upon all parties, and the execution thereof may be entered in any court having
jurisdiction. Any award of arbitration shall include attorney fees and costs of arbitration,
including but not limited to expert witness fees, payable to the prevailing party in the
arbitration, as determined by the Arbitrator. Notwithstanding the foregoing, any award in an
arbitration initiated under this Section 22 shall be limited to monetary damages and shall include
no injunction or similar equitable relief or direction to any Party other than the direction to pay
a monetary amount. Should a Party seek injunctive relief, such Party is free to bring those
equitable claims before any federal or state court of competent jurisdiction in the United States.

Notwithstanding any other provision, expressed or implied in this Agreement, and without prejudice
to SpaceX’s rights under Section 5.3 of this Agreement, pending resolution of any such dispute,
SpaceX shall continue to perform its obligations under this Agreement (provided Customer continues
to perform its obligations under this Agreement) unless otherwise directed by Customer or as far as
such performance is not prevented by the nature or cause of the dispute itself.

23. Appendices.

23.1 Incorporation by Reference. The following appendices are incorporated into this Agreement by
reference and shall be an integral part of this Agreement:

Exhibit 1 Form of Cross-Waiver Required by the U.S. Licensing Authority

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

27

 

Appendix 1, Statement of Work;

Appendix 2, Interface Requirements Document

Appendix 3, Payment and Milestone Schedule

Appendix 4, Space Exploration Technologies Corporation Launch Certificate

Appendix 5, Termination for Convenience Schedule

Appendix 6, Risk-Based Termination for Convenience Schedule

[***...***]

23.2 Precedence. In the event of conflict between the terms and conditions of this Agreement and
any of its appendices, exhibits or attachments, the terms and conditions of this Agreement shall
govern. In the event of a conflict between the appendices, exhibits or attachments, the sequence of
precedence shall be as listed below.

	1.	 	Articles 1 to 32

	 
	2.	 	[***...***]

	 
	3.	 	[***...***]

	 
	4.	 	[***...***]

	 
	5.	 	[***...***]

	 
	6.	 	All other Appendices and Exhibits to this Agreement.

24. Severability. If any portion of this Agreement is held invalid, the Parties agree that such
invalidity shall not affect the validity of the remaining portions of this Agreement, unless
applying such remaining portions would frustrate the purpose of this Agreement.

25. Waiver. Waiver on the part of either SpaceX or Customer of any term, provision, or condition of
this Agreement shall only be valid if made in writing and accepted by the other Party. The failure
of either Party, at any time, to exercise any right granted in this Agreement or to require any
performance of any term of this Agreement or the waiver by either Party of any breach of this
Agreement shall not prevent a subsequent exercise or enforcement of, or be deemed a waiver of any
subsequent breach of, the same or any other term of this Agreement.

26. No Joint Venture or Agency. Nothing in this Agreement shall constitute or create a joint
venture, partnership, or any other similar arrangement between the Parties. No Party is authorized
to act as agent for the other Party hereunder except as expressly stated in this Agreement.

27. Assignment. Neither Party may assign, delegate or otherwise transfer this Agreement or any
rights or obligations under this Agreement, whether voluntary, by operation of law or otherwise,
without the prior written consent of the other Party. Such consent shall not be unreasonably
withheld or delayed.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

28

 

27.1 Assignment by Customer. Notwithstanding the foregoing, Customer may assign or transfer this
Agreement or all its rights, duties, or obligations hereunder without SpaceX’s approval: (i) to an
Affiliate, provided that such Affiliate has equivalent or greater financial resources as Customer
to fulfill Customer’s obligations under this Agreement and subject to any export control
regulations applicable to the work performed under this Agreement; (ii) to any entity which, by way
of merger, consolidation, or any similar transaction involving the acquisition of substantially all
the stock, equity or the entire business assets of Customer relating to the subject matter of this
Agreement, succeeds to the interests of Customer or in connection with obtaining financing for the
payment of SpaceX’s invoices and any and all other fees, charges or expenses payable under this
Agreement under any financing agreement; provided in the first case only that, prior to such
assignment or transfer, the assignee, transferee, or successor to Customer has expressly assumed
all the obligations of Customer and all terms and conditions applicable to Customer under this
Agreement; (iii) to any designee or customer of Customer or any Affiliate thereof provided that
Customer remains primarily liable to SpaceX for any payment obligation hereunder; (iv) to Sierra
Nevada Corporation, provided that it has expressly assumed in writing all such rights, duties and
obligations hereunder and notice has been provided to SpaceX of the same.

27.2 Assignment by SpaceX. Notwithstanding the foregoing, SpaceX may assign, delegate or otherwise
transfer this Agreement, or any rights or obligations under this Agreement, without Customer’s
approval: (i) to any Affiliate of SpaceX that has equivalent or greater financial resources as
SpaceX; or (ii) any person or entity which, by way of merger, acquisition or sale of all or
substantially all of the assets relating to the performance of this Agreement, succeeds to the
interests of SpaceX provided the financial condition of such successor is at least equal to that of
SpaceX at the time of such merger, acquisition or sale and provided further that, prior to such
assignment or transfer, such successor has expressly assumed all the obligations of SpaceX and all
terms and conditions applicable to SpaceX under this Agreement.

27.3 Security Interests. Customer, upon prior written notice to SpaceX, may grant security
interests in its rights hereunder to lenders that provide financing for the performance by Customer
of its obligations under this Agreement or for the subject matter hereof. In the event that either
Party is sold to or merged into another entity, its responsibilities under this Agreement shall not
be altered and the successor organization shall be liable for performance of such Party’s
obligations under this Agreement. If requested by Customer, SpaceX shall provide its written
consent to such assignment on terms and conditions as may be requested by Customer’s lenders.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

29

 

27.4 Notwithstanding anything in this Section 27 to the contrary, any assignment, delegation, or
transfer of this Agreement shall be subject to: (i) the condition that the financial condition of
the
assignee, delegate, or transferee is at least equal to that of the assignor, delegator, or
transferor, as the case may be; and (ii) any and all required or applicable governmental
notification, legislative sanction, or regulatory approval, including without limitation ITAR
approval.

27.5 Any assignment, delegation, or transfer of this Agreement made in contravention of the terms
hereof shall be null and void. Subject to the foregoing, this Agreement shall be binding on and
inure to the benefit of the Parties’ respective successors and permitted assigns.

28. Governing Law. This Agreement and its performance by the Parties hereunder shall be construed
in accordance with the laws of the State of New York, U.S.A., without regard to provisions on the
conflicts of laws. The provisions of the United Nations Convention for the International Sale of
Goods shall not be applicable to this Agreement.

29. Entire Agreement. This Agreement, and all appendices, exhibits and attachments hereto,
supersedes all prior communications, transactions, and understandings, whether oral or written,
with respect to the subject matter hereof, including the Letter Agreement, and constitutes the sole
and entire agreement between the Parties pertaining to the subject matter hereof. Neither Party
shall be bound by the conditions, warranties, definitions, statements, or documents previous to the
execution of this Agreement, unless this Agreement makes express reference thereto.

30. Modification. No modification or amendment to, or addition, deletion or waiver of any of the
terms and conditions of this Agreement, including but not limited to launch requirements, changes
in quantity or schedule adjustments, shall be binding on either Party unless understood and agreed
by both Parties and evidenced by a written agreement signed by a duly authorized representative of
each Party, which agreement shall expressly state that it is an amendment to this Agreement.

31. Certification. Prior to each Launch and upon request by Customer, SpaceX agrees to issue a
written certification to Customer in the form attached hereto as Appendix 4 confirming that the
Launch Vehicle has passed all qualification and proof or acceptance tests consistent with SpaceX
mission assurance processes and practices, including a launch readiness review.

32. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original and all of which together shall constitute one instrument. This Agreement may
be executed by facsimile or other equivalent electronic signature. Facsimile signatures, or
signatures delivered by other equivalent electronic means, shall constitute original signatures.

[SIGNATURE PAGE FOLLOWS]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

30

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly authorized
officers as of the Effective Date of Agreement:

	 	 	 	 	 	 	 	 	 	 	 
	Space Exploration Technologies Corp.	 	 	 	ORBCOMM Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ [Gwynne Shotwell]
 

Name: Gwynne Shotwell
	 	 
	 	By:
	 	/s/ [Marc Eisenberg]
 

Name: Marc Eisenberg
	 	 
	 

	 	Title: President
	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 	 	Date: 8/28/2009	 	 	 	 	 	Date: 8/28/2009	 	 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

31

 

EXHIBIT 1

Form of Cross-Waiver Required by the U.S. Licensing Authority

Waiver of Claims and Assumption of Responsibility for Licensed Launch, including Suborbital Launch

THIS AGREEMENT is entered into this
 _____ 
day of
 _____, by and among [Licensee] (the “Licensee”),
[Customer] (the “Customer”) and the Federal Aviation Administration of the Department of
Transportation, on behalf of the United States Government (collectively, the “Parties”), to
implement the provisions of section 440.17(c) of the Commercial Space Transportation Licensing
Regulations, 14 CFR Ch. III (the “Regulations”). This agreement applies to the launch of [Payload]
payload on a [Launch Vehicle] vehicle at [Location of Launch Site]. In consideration of the mutual
releases and promises contained herein, the Parties hereby agree as follows:

1. Definitions

Contractors and Subcontractors means entities described in §440.3 of the Regulations.

Customer means the above-named Customer on behalf of the Customer and any person described in
§440.3 of the Regulations.

License means License No.
 _____ 
issued on
 _____, by the Associate Administrator for Commercial Space
Transportation, Federal Aviation Administration, Department of Transportation, to the Licensee,
including all license orders issued in connection with the License.

Licensee means the Licensee and any transferee of the Licensee under 49 U.S.C. Subtitle IX, ch.
701.

United States means the United States and its agencies involved in Licensed Activities.

Except as otherwise defined herein, terms used in this Agreement and defined in 49 U.S.C. Subtitle
IX, ch. 701— Commercial Space Launch Activities, or in the Regulations, shall have the same
meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, respectively.

2. Waiver and Release of Claims

(a) Licensee hereby waives and releases claims it may have against Customer and the United States,
and against their respective Contractors and Subcontractors, for Property Damage it sustains and
for Bodily Injury or Property
Damage sustained by its own employees, resulting from Licensed Activities, regardless of fault.

(b) Customer hereby waives and releases claims it may have against Licensee and the United States,
and against their respective Contractors and Subcontractors, for Property Damage it sustains and
for Bodily Injury or Property Damage sustained by its own employees, resulting from Licensed
Activities, regardless of fault.

(c) The United States hereby waives and releases claims it may have against Licensee and Customer,
and against their respective Contractors and Subcontractors, for Property Damage it sustains, and
for Bodily Injury or Property Damage sustained by its own employees, resulting from Licensed
Activities, regardless of fault, to the extent that claims it would otherwise have for such damage
or injury exceed the amount of insurance or demonstration of financial responsibility required
under sections 440.9(c) and (e), respectively, of the Regulations.

3. Assumption of Responsibility

(a) Licensee and Customer shall each be responsible for Property Damage it sustains and for Bodily
Injury or Property Damage sustained by its own employees, resulting from Licensed Activities,
regardless of fault. Licensee and Customer shall each hold harmless and indemnify each other, the
United States, and the Contractors and Subcontractors of each Party, for Bodily Injury or Property
Damage sustained by its own employees, resulting from Licensed Activities, regardless of fault.

(b) The United States shall be responsible for Property Damage it sustains, and for Bodily Injury
or Property Damage sustained by its own employees, resulting from Licensed Activities, regardless
of fault, to the extent that claims it would otherwise have for such damage or injury exceed the
amount of insurance or demonstration of financial responsibility required under sections 440.9(c)
and (e), respectively, of the Regulations.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

32

 

4. Extension of Assumption of Responsibility and Waiver and Release of Claims

(a) Licensee shall extend the requirements of the waiver and release of claims, and the assumption
of responsibility, hold harmless, and indemnification, as set forth in paragraphs 2(a) and 3(a),
respectively, to its Contractors and Subcontractors by requiring them to waive and release all
claims they may have against Customer and the United States, and against the respective Contractors
and Subcontractors of each, and to agree to be responsible, for Property Damage they sustain and to
be responsible, hold harmless and indemnify Customer and the United States, and the respective
Contractors and Subcontractors of each, for Bodily Injury or Property Damage sustained by their own
employees, resulting from Licensed Activities, regardless of fault.

(b) Customer shall extend the requirements of the waiver and release of claims, and the assumption
of responsibility, hold harmless, and indemnification, as set forth in paragraphs 2(b) and 3(a),
respectively, to its Contractors and Subcontractors by requiring them to waive and release all
claims they may have against Licensee and the United States, and against the respective Contractors
and Subcontractors of each, and to agree to be responsible, for Property Damage they sustain and to
be responsible, hold harmless and indemnify Licensee and the United States, and the respective
Contractors and Subcontractors of each, for Bodily Injury or Property Damage sustained by their own
employees, resulting from Licensed Activities, regardless of fault.

(c) The United States shall extend the requirements of the waiver and release of claims, and the
assumption of responsibility as set forth in paragraphs 2(c) and 3(b), respectively, to its
Contractors and Subcontractors by requiring them to waive and release all claims they may have
against Licensee and Customer, and against the respective Contractors and Subcontractors of each,
and to agree to be responsible, for any Property Damage they sustain and for any Bodily Injury or
Property Damage sustained by their own employees, resulting from Licensed Activities, regardless of
fault, to the extent that claims they would otherwise have for such damage or injury exceed the
amount of insurance or demonstration of financial responsibility required under sections 440.9(c)
and (e), respectively, of the Regulations.

5. Indemnification

(a) Licensee shall hold harmless and indemnify Customer and its directors, officers, servants,
agents, subsidiaries, employees and assignees, or any of them, and the United States and its
agencies, servants, agents, subsidiaries, employees and assignees, or any of them, from and against
liability, loss or damage arising out of claims that Licensee’s Contractors and Subcontractors may
have for Property Damage sustained by them and for Bodily Injury or Property Damage sustained by
their employees, resulting from Licensed Activities.

(b) Customer shall hold harmless and indemnify Licensee and its directors, officers, servants,
agents, subsidiaries, employees and assignees, or any of them, and the United States and its
agencies, servants, agents, subsidiaries, employees and assignees, or any of them, from and against
liability, loss or damage arising out of claims that Customer’s Contractors and Subcontractors, or
any person on whose behalf Customer enters into this Agreement, may have for Property Damage
sustained by them and for Bodily Injury or Property Damage sustained by their employees, resulting
from Licensed Activities.

(c) To the extent provided in advance in an appropriations law or to the extent there is enacted
additional legislative authority providing for the payment of claims, the United States shall hold
harmless and indemnify Licensee and Customer and their respective directors, officers, servants,
agents, subsidiaries, employees and assignees, or any of them, from and against liability, loss or
damage arising out of claims that Contractors and Subcontractors of the United States may have for
Property Damage sustained by them, and for Bodily Injury or Property Damage sustained by their
employees, resulting from Licensed Activities, to the extent that claims they would otherwise have
for such damage or injury exceed the amount of insurance or demonstration of financial
responsibility required under sections 440.9(c) and (e), respectively, of the Regulations.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

33

 

6. Assurances Under 49 U.S.C. 70112(e)

Notwithstanding any provision of this Agreement to the contrary, Licensee shall hold harmless and
indemnify the United States and its agencies, servants, agents, employees and assignees, or any of
them, from and against liability, loss or damage arising out of claims for Bodily Injury or
Property Damage, resulting from Licensed Activities, regardless of fault, except to the extent
that: (i) As provided in section 7(b) of this Agreement, claims result from willful misconduct of
the United States or its agents; (ii) claims for Property Damage sustained by the United States or
its Contractors and Subcontractors exceed the amount of insurance or demonstration of financial
responsibility
required under section 440.9(e) of the Regulations; (iii) claims by a Third Party for Bodily Injury
or Property Damage exceed the amount of insurance or demonstration of financial responsibility
required under section 440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as adjusted
for inflation after January 1, 1989) above such amount, and are payable pursuant to the provisions
of 49 U.S.C. 70113 and section 440.19 of the Regulations; or (iv) Licensee has no liability for
claims exceeding $1,500,000,000 (as adjusted for inflation after January 1, 1989) above the amount
of insurance or demonstration of financial responsibility required under section 440.9(c) of the
Regulations.

7. Miscellaneous

(a) Nothing contained herein shall be construed as a waiver or release by Licensee, Customer or the
United States of any claim by an employee of the Licensee, Customer or the United States,
respectively, including a member of the Armed Forces of the United States, for Bodily Injury or
Property Damage, resulting from Licensed Activities.

(b) Notwithstanding any provision of this Agreement to the contrary, any waiver, release,
assumption of responsibility or agreement to hold harmless and indemnify herein shall not apply to
claims for Bodily Injury or Property Damage resulting from willful misconduct of any of the
Parties, the Contractors and Subcontractors of any of the Parties, and in the case of Licensee and
Customer and the Contractors and Subcontractors of each of them, the directors, officers, agents
and employees of any of the foregoing, and in the case of the United States, its agents.

(c) In the event that more than one customer is involved in Licensed Activities, references herein
to Customer shall
apply to, and be deemed to include, each such customer severally and not jointly.

(d) This Agreement shall be governed by and construed in accordance with United States Federal law.

In witness whereof, the Parties to this Agreement have caused the Agreement to be duly executed by
their respective
duly authorized representatives as of the date written above.

Licensee

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

Customer

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

Federal Aviation Administration of the Department of Transportation on Behalf of the United States
Government

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

Associate Administrator for Commercial Space Transportation

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

34

 

APPENDIX 1

STATEMENT OF WORK

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

35

 

APPENDIX 2

INTERFACE REQUIREMENTS DOCUMENT

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

36

 

APPENDIX 3

PAYMENT AND MILESTONE SCHEDULE

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

37

 

APPENDIX 4

SPACE EXPLORATION TECHNOLOGIES CORPORATION

LAUNCH CERTIFICATE

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

38

 

APPENDIX 5

TERMINATION FOR CONVENIENCE SCHEDULE

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

39

 

APPENDIX 6

RISK-BASED TERMINATION FOR CONVENIENCE SCHEDULE

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

40

 

[***...***]

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED [***. . .***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

41

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