Document:

exv10w7

 

EXHIBIT 10.7

ORBIMAGE INC.

2003 EQUITY COMPENSATION PLAN

EXECUTIVE RESTRICTED STOCK AGREEMENT

     ORBIMAGE
Inc., a Delaware corporation (the “Company”), hereby grants
shares of its common stock, $.01 par value (the “Stock”), to the Grantee named
below, subject to the vesting conditions set forth in the attachment.
Additional terms and conditions of the grant are set forth in this cover sheet,
in the attachment and in the Company’s 2003 Employee Stock Incentive Plan, as
amended (the “Plan”).

Grant Date: December 31, 2003

Name of Grantee: Matthew M. O’Connell

Number of Shares of Stock Covered by Grant: 275,454

     By signing this cover sheet, you agree to all of the terms and conditions
described in the attached Agreement and in the Plan, a copy of which is also
attached. You acknowledge that you have carefully reviewed the Plan, and agree
that the Plan will control in the event any provision of the attached Agreement
or this cover sheet should appear to be inconsistent.

	 	 	 	 	 	 
	Grantee:
	 	 	 	 
	 	 	
 
	 	 	(Signature)

	 
	 	 	 	 
	Company:
	 	 	 	 
	 	 	
 
	 	 	(Signature)

	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	
 

Attachment

     This is not a stock certificate or a negotiable instrument.

 

 

ORBIMAGE INC.

2003 EMPLOYEE STOCK INCENTIVE PLAN

EXECUTIVE RESTRICTED STOCK AGREEMENT

Restricted Stock/ Nontransferability

This grant is an award of Stock in the number of shares set forth on the
cover sheet, at the purchase price set forth on the cover sheet, and
subject to the vesting conditions described below
(“Restricted Stock”).
To the extent not yet vested, your Restricted Stock may not be
transferred, assigned, pledged or hypothecated, whether by operation of
law or otherwise, nor may the Restricted Stock be made subject to
execution, attachment or similar process; provided, however, that the
Restricted Stock may be transferred in accordance with the section below
labeled “Family Transfers.”

Issuance and Vesting

The Company will issue your Restricted Stock in your name as of the Grant
Date.

Your Stock subject to restriction under this Restricted Stock Agreement
(the “Restricted Shares”) vests in accordance with the following:

(i) 45,909 shares (the “Initial Tranche”) covered by this grant, as shown
on the cover sheet, shall vest on the earlier of (a) June 30, 2004, or
(b) the date the Company’s registration statement for its Stock on Form
10 or Form S-1 is declared effective by the Securities and Exchange
Commission, provided you are then in service with the Company;

(ii) 137,727 shares (the “Second Tranche”) covered by this grant, as
shown on the cover sheet, shall vest on January 3, 2005, provided you are
then in service with the Company; and

(iii) 91,818 shares (the “Third Tranche”) covered by this grant, as shown
on the cover sheet, shall vest on January 3, 2006, (the “Final Vesting
Date”) provided you are then in service with the Company.

The phrase “in service with the Company” shall mean employed with the
Company, any successor thereto, or any Subsidiary thereof.

Acceleration of Vesting

In addition to, and not in lieu of, any vesting pursuant to the vesting
schedule set forth above:

	•	 	if your employment is terminated by the Company (for any reason or for
no reason) in anticipation of or within the six month period following a
“Change in Control” (as defined below), all Stock subject to this
Restricted Stock Agreement that has not yet vested as of the date of such
termination of your employment shall become immediately and fully vested
upon such termination of your employment; provided, however, that such
vesting shall not occur if your Service was terminated as a result of a
termination for “Cause” (as such term is defined in the Employment
Agreement you

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	 	 	entered into with the Company (the “Employment
Agreement”)); and

	•	 	if your employment is terminated involuntarily by the Company as a
result of a termination without “Cause” or a termination by you for “Good
Reason” (as defined below), prior to the first anniversary of the Grant
Date, then upon such termination of your employment (i) to the extent the
Initial Tranche of Stock has not yet vested, the Initial Tranche shall
accelerate and become immediately and fully vested, (ii) one half of the
Second Tranche of Stock (i.e., 45,909 shares) shall accelerate and become
immediately and fully vested, and (iii) the remaining one half of the
Second Tranche of Stock and the Third Tranche of Stock shall be
forfeited.

	•	 	if your employment terminates as a result of death or if you are unable
to work as a result of Disability (as such term is defined in the
Employment Agreement), prior to the first anniversary of the Grant Date,
then upon such termination of your employment (i) to the extent the
Initial Tranche of Stock has not yet vested, the initial Tranche shall
accelerate and become immediately and fully vested, (ii) one half of the
Second Tranche of Stock (i.e., 45,909 shares) shall accelerate and become
immediately and fully vested, and (iii) the remaining one half of the
Second Tranche of Stock and the Third Tranche of Stock shall be
forfeited.

	•	 	if your employment terminates for any reason or for no reason prior to
the second anniversary of the Grant Date, other than in anticipation of
or within the six month period following a Change in Control as noted
above, the Third Tranche shall be forfeited.

The term “Change of Control” shall have the meaning set forth in the Plan.

The term “Good Reason” means (i) a material breach of a material term of
the Employment Agreement by the Company; (ii) any material adverse change
in your job title, duties, responsibilities or authority or requirement
that you relocate your permanent residence; (iii) failure of the Company
to pay your salary or bonus compensation when due; or (iv) at such time
as you shall cease, without your consent, to be a member of the Board of
Directors; provided, however, that none of the events described in the
foregoing shall constitute Good Reason unless you shall have notified the
Company in writing describing the events which constitute Good Reason and
then only if the Company shall have failed to cure such event within ten
(10) days after the Company’s receipt of such written notice.

No additional shares of Stock subject to this Restricted Stock Agreement
will vest after your employment has terminated for any reason other than
those enumerated above.

The foregoing provisions shall be binding upon any acquiror of, or
successor to,

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the Company in any Change of Control.

Forfeiture

Any shares of Stock subject to this Restricted Stock Agreement which do
not vest as provided herein shall be forfeited upon your termination of
Service with the Company.

Obligation to Repurchase Vested Stock Prior to Public Trading

In the event that your service terminates other than for Cause (as such
term is defined in the Employment Agreement) at any time prior to the
earlier of the Final Vesting Date or a Listing Event for the Stock occurs
as described in the following paragraph, the Company shall have the
obligation to purchase at their Fair Market Value (as defined below) all
of the shares of Stock subject to this Restricted Stock Agreement that
have vested prior to or as of the date of termination (due to the
acceleration of vesting upon certain events as provided herein),
including those that you have transferred to a Family Member as permitted
here under in a not for value transfer (collectively the “Vested Stock
Repurchase Obligation”). The Company will consummate the purchase within
90 days of termination of your employment. If the Company fails to
purchase such Stock within 90 days of termination of your employment, you
shall then have the right, beginning on the 91st day after termination of
employment, to put all shares of Stock subject to this Restricted Stock
Agreement that have then vested at the purchase price per share set forth
herein. For purposes hereof, the term “Fair Market Value” shall have the
meaning set forth in the Plan; it being understood that in the event that
you disagree with the Administrator’s (as such term is defined in the
Plan) determination of the fair market value, the Board of Directors
shall, at the Company’s cost and expense, obtain an independent valuation
of the shares by a recognized investment bank or appraisal firm that is
reasonably acceptable to both you and the Company and any such valuation
shall be final and determinative, provided that if the resulting
appraisal is not more than 10% greater than the fair market value
determined by the Administrator, you agree to reimburse the Company for
the costs of the third party appraisal.

To the extent not earlier exercised or terminated, the Vested Stock
Repurchase Obligation shall terminate in the event that the Stock is
listed on an established national or regional stock exchange, is admitted
for quotation on The Nasdaq Stock Market, Inc., or is publicly traded in
an established securities market (in any case, a “Listing Event for the
Stock”).

Escrow

The certificates for the Restricted Stock shall be deposited in escrow
with the Secretary of the Company (or an Assistant Secretary if you are
serving as Secretary) to be held in accordance with the provisions of
this paragraph. Each deposited certificate shall be accompanied by a
duly executed Assignment Separate from Certificate in the form attached
hereto as Exhibit A. The deposited certificates shall remain in escrow
until such time or times as the certificates are to be released or
otherwise surrendered for cancellation as discussed below. Upon delivery
of the certificates to the Company, you shall be issued an instrument of
deposit acknowledging the number of shares of

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Stock delivered in escrow to the Secretary of the Company.

All dividends or other distributions on the vested Stock (or other
securities at the time held in escrow) shall be paid directly to you and
shall not be held in escrow. Any cash dividends on the Restricted Stock
(or other restricted securities at the time held in escrow) shall remain
in escrow with the Secretary of the Company (or an Assistant Secretary)
until such restrictions lapse as provided herein on the underlying Stock,
or if such restrictions fail to lapse shall be returned to the Company
upon termination of your employment. In the event of any stock dividend,
stock split, recapitalization or other change affecting the Company’s
outstanding common stock as a class effected without receipt of
consideration or in the event of a stock split, a stock dividend or a
similar change in the Company Stock, any new, substituted or additional
securities or other property which is by reason of such transaction
distributed with respect to the Restricted Stock shall be immediately
delivered to the Secretary of the Company (or Assistant Secretary) to be
held in escrow hereunder, and such securities shall be subject to the
same vesting and forfeiture provisions hereunder as shall apply to the
underlying Restricted Stock.

The shares of Stock held in escrow hereunder shall be subject to the
following terms and conditions relating to their release from escrow or
their surrender to the Company for repurchase and cancellation:

	•	 	As your shares vest as described above, the certificates for such
vested shares shall be released from escrow and delivered to you or to
your custodian, at your request, as soon as is practicable.

	•	 	Upon termination of your employment, any escrowed shares in which you
are at the time vested shall be promptly released from escrow.

	•	 	Any escrowed certificates for vested shares of Stock subject to the
Vested Stock Repurchase Obligation shall, concurrently with the payment
by the Company of the purchase price for such shares of Stock, be
surrendered to the Company for cancellation, and you shall have no
further rights with respect to such shares of Stock.

Withholding Taxes

You agree, as a condition of this grant, that you will make acceptable
arrangements to pay any withholding or other taxes that may be due as a
result of this grant. In the event that the Company determines that any
federal, state, local or foreign tax or withholding payment is required
relating to this grant, the Company shall have the right to require such
payments from you, or withhold such amounts from other payments due to
you from the Company.

Family Transfers

You may transfer, not for value, all or part of the Restricted Stock
acquired under this grant to an immediate family member(s) or to a trust
solely for the benefit of an immediate family member(s) or descendants
thereof (each, a “Family Transfer”).

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A “not for value” transfer is a transfer which is (i) a gift, (ii) a
transfer under a domestic relations order in settlement of marital
property rights, or (iii) unless applicable law does not permit such
transfers, a transfer to an entity in which more than fifty percent of
the ownership interests are owned by immediate family members (or you) in
exchange for an interest in that entity.

Following a Family Transfer, such Restricted Stock shall continue to be
subject to the same restrictions and rights as would have applied to you,
including the forfeiture of unvested shares, the vesting schedule and the
acceleration of vesting as provided herein, and the Company’s obligations
under the Vested Stock Repurchase Obligation. Subsequent transfers of
transferred Restricted Stock are prohibited except to immediate family
members of the original holder of such Restricted Stock or by the laws of
descent and distribution.

In the event you transfer shares of Restricted Stock pursuant to a Family
Transfer, you shall retain voting control over any such transferred
shares unless otherwise approved by the Board.

Section 83(b) Election

Under Section 83 of the Internal Revenue Code of 1986, as amended (the
“Code”), the difference between the purchase price paid for the shares of
Stock and their fair market value on the date any forfeiture restrictions
applicable to such shares lapse will be reportable as ordinary income at
that time. For this purpose, “forfeiture restrictions” include the
Company’s obligations under the Vested Stock Repurchase Obligation
described above. You may elect to be taxed at the time the shares are
acquired rather than when such shares cease to be subject to such
forfeiture restrictions by filing an election under Section 83(b) of the
Code with the Internal Revenue Service within 30 days after the Grant
Date. You will have to make a tax payment to the extent the purchase
price is less than the fair market value of the shares on the Grant Date.
No tax payment will have to be made to the extent the purchase price is
at least equal to the fair market value of the shares on the Grant Date.
The form for making this election is attached as Exhibit B hereto.
Failure to make this filing within the 30-day period will result in the
recognition of ordinary income by you (in the event the fair market value
of the shares increases after the date of grant) as the forfeiture
restrictions lapse.

YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF YOU
REQUEST THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON YOUR
BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE
DECISION AS TO WHETHER OR NOT TO FILE ANY 83(b) ELECTION.

Market Stand-off Agreement

In connection with any underwritten public offering by the Company of its

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equity securities pursuant to an effective registration statement filed
under the Securities Act of 1933 (the “Securities Act”), including the
Company’s initial public offering, if any, you agree not to sell, make
any short sale of, loan, hypothecate, pledge, grant any option for the
purchase of, or otherwise dispose or transfer for value or agree to
engage in any of the foregoing transactions with respect to any shares of
vested Stock without the prior written consent of the Company or its
underwriters, for such period of time after the effective date of such
registration statement as may be requested by the Company or the
underwriters (not to exceed 180 days in length).

Investment Representation

You hereby agree and represent, as a condition of this grant of
Restricted Stock, that (i) you are acquiring the shares of Restricted
Stock for investment for your own account and not with a view to, or
intention of, or otherwise for resale in connection with, any
distribution to any person or entity, (ii) neither the offer nor sale of
the shares of Restricted Stock hereunder, or the shares of Restricted
Stock themselves, have been registered under the Securities Act or
registered or qualified under any applicable state securities laws and
that the shares of Restricted Stock are being offered and sold to you by
reason of and in reliance upon a specific exemption from the registration
provisions of the Securities Act and exemptions from registration or
qualification provisions of such applicable state or other jurisdiction’s
securities laws which depend upon, among other things, the bona fide
nature of the investment intent as expressed herein and the truth and
accuracy of your representations, warranties, agreements, acknowledgments
and understandings as set forth herein, (iii) no public market now exists
for any of the securities issued by the Company and that there can be no
assurance that a public market will ever exist for the shares of
Restricted Stock, (iv) you must, and are able to, bear the economic risk
of your investment in the shares of Restricted Stock for an indefinite
period of time and can afford a complete loss of your investment in the shares of Restricted Stock, (v) you are sophisticated in financial
matters and have such knowledge and experience in financial and business
matters as to be capable of evaluating the risks and benefits of your
investment in the shares of Restricted Stock, (vi) you are as of the date
hereof an “accredited investor” as such term is defined under Rule 501 of
the Securities Act, (vii) your principal place of residence is in the
State of New York, and (viii) the Company has made available to you all
documents that you have requested relating to the Company, the shares of
Restricted Stock and your purchase of the shares of Restricted Stock, and
you have had an opportunity to ask questions and receive answers
concerning the Company and the terms and conditions of the offering and
sale of the shares of Restricted Stock pursuant to this Restricted Stock
Agreement and have had full access to such other information concerning
the Company and the shares of Restricted Stock as you deemed necessary or
desirable.

Retention Rights

This Agreement does not give you the right to be retained by the Company
(or any parent, subsidiaries or affiliates) in any capacity. The Company
(and any parent, subsidiaries or affiliates) reserves the right to
terminate your

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employment at any time and for any reason or no reason.

Adjustments

In the event of a stock split, a stock dividend or a similar change in
the Company stock, the number of shares covered by this grant may be
adjusted (and rounded down to the nearest whole number) pursuant to the
Plan. Your Restricted Stock shall be subject to the terms of the
agreement of merger, liquidation or reorganization in the event the
Company is subject to such corporate activity.

Legends

All certificates representing the Stock issued in connection with this
grant shall, where applicable, have endorsed thereon the following
legends:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN
AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE
PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN
REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE
SHARES REPRESENTED BY THIS CERTIFICATE.”

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED, OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION OR QUALIFICATION
THEREOF UNDER SUCH ACT AND SUCH APPLICABLE STATE OR OTHER JURISDICTION’S
SECURITIES LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND
ITS COUNSEL, THAT SUCH REGISTRATION AND QUALIFICATION IS NOT REQUIRED.”

Applicable Law

This Agreement will be interpreted and enforced under the laws of the
State of Delaware, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of
this Agreement to the substantive law of another jurisdiction.

The Plan

The text of the Plan is incorporated in this Agreement by reference.
Certain capitalized terms used in this Agreement are defined in the Plan,
and have the meaning set forth in the Plan.
This Agreement and the Plan constitute the entire understanding between
you and the Company regarding this grant of Restricted Stock. Any prior
agreements, commitments or negotiations concerning this grant are
superseded.

Other Agreements

You agree, as a condition of this grant of Restricted Stock, that you
will execute such document(s) as necessary to become a party to any
shareholder agreement

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or voting trust as the Company may require.

By signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan

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ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED, Matthew M. O’Connell hereby sells, assigns and
transfers unto Orbital Imaging Corporation, a Delaware corporation (the
“Company”),                    (                   )shares of common stock of the Company
represented by Certificate No.                    herewith and does hereby irrevocable
constitute and appoint                    Attorney to transfer the said stock on
the books of the Company with full power of substitution in the premises.

     Dated: 
                 , 200_

	 	 	 
	
	 	
 
	
	 	Print Name
	
	 	 
	
	 	
 
	
	 	Signature

Spouse Consent (if applicable)

                        (Purchaser’s spouse) indicates by the execution of
this Assignment his or her consent to be bound by the terms herein as to his or
her interests, whether as community property or otherwise, if any, in the
shares of common stock of the Company.

	 	 	 
	
	 	
 
	
	 	Signature

INSTRUCTIONS: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE.
THE PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO EXERCISE ITS
“REPURCHASE OBLIGATION” SET FORTH IN THE AGREEMENT WITHOUT REQUIRING ADDITIONAL
SIGNATURES ON THE PART OF PURCHASER.

 

 

EXHIBIT B

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

     The undersigned hereby makes an election pursuant to Section 83(b) of the
Internal Revenue Code with respect to the property described below and supplies
the following information in accordance with the regulations promulgated
thereunder:

     1. The name, address and social security number of the undersigned:

Name:                                                                                                                                                        

Address:                                                                                                                                                        
                                                                                                                                                                           

Social Security No. :                                                                                                                                     

     2. Description of property with respect to which the election is being
made:

                   shares of common stock, par value $.01 per share, Orbital
Imaging Corporation, a Delaware corporation, (the “Company”).

     3. The
date on which the property was transferred is      
             ,
200_.

     4. The taxable year to which this election relates is calendar year 200_.

     5. Nature of restrictions to which the property is subject:

     The shares of stock are subject to the provisions of a Restricted
Stock Agreement between the undersigned and the Company. The shares of
stock are subject to forfeiture under the terms of the Agreement.

     6. The fair market value of the property at the time of transfer
(determined without regard to any lapse restriction) was $                   per share,
for a total of $                   .

     7. The amount paid by taxpayer for the property was $                   .

     8. A copy of this statement has been furnished to the Company.

Dated:                    ,200_

	 	 	 
	

	 	
 
	

	 	Taxpayer’s Signature
	

	 	 
	

	 	
 
	

	 	Taxpayer’s Printed Name

 

 

PROCEDURES FOR MAKING ELECTION

UNDER INTERNAL REVENUE CODE SECTION 83(b)

               The following procedures must be followed with respect to the attached
form for making an election under Internal Revenue Code section 83(b) in order
for the election to be effective:1

               1. You must file one copy of the completed election form with the IRS
Service Center where you file your federal income tax returns within 30 days
after the Grant Date of your Restricted Stock.

               2. At the same time you file the election form with the IRS, you must also
give a copy of the election form to the Secretary of the Company.

               3. You must file another copy of the election form with your federal
income tax return (generally, Form 1040) for the taxable year in which the
stock is transferred to you.

	1 Whether or not to make the election is your decision and may create tax
consequences for you. You are advised to consult your tax advisor if you are
unsure whether or not to make the election.exv10w8

 

EXHIBIT 10.8

EMPLOYMENT-AT-WILL AND RETENTION AGREEMENT

between

ORBIMAGE Inc.

and

TIMOTHY J. PUCKORIUS

Effective as of October 27, 2003

To Timothy J. Puckorius:

1. Employment By The Company.

     1.1 Subject to terms set forth herein, the Company agrees to continue to
employ you as an employee-at-will in the capacity of Senior Vice President,
Worldwide Marketing and Sales. In this position, you will report to the
Company’s Chief Executive Officer, and be charged with leading the
international marketing, business development and sales programs of the
Company. This Agreement replaces in its entirety that certain
Employment-At-Will and Retention Agreement, dated as of November 1, 2001,
between the Company and you.

2. Compensation.

	 	2.1	 	Salary. You will receive a base annual salary of $200,000,
retroactively as of July 1, 2003, which will be paid in accordance
with the terms of your current salary (other than amount).
	 
	 	2.2	 	Standard Company Benefits.

(a) You will be entitled to all rights and benefits for which you
are eligible under the terms and conditions of the standard Company
benefits and compensation practices which may be in effect from
time to time and provided by the Company to its employees in senior
executive positions (the “Company Benefits”).

(b) The Company will pay up to $1,500 in premiums annually toward
your company provided life insurance coverage. Such coverage will
be $800,000, subject to the continuing approval of the Company’s
life insurance carrier.

	 	2.3	 	Severance. You will be entitled to the severance benefits
(“Severance Benefits”) described in Section 6 below, subject to the
other terms and conditions of this Agreement.
	 
	 	2.4	 	Bonuses. You will be eligible to receive up to 35% at plan
of your base salary based on your performance, the performance of
the sales and marketing

 

 

	 	 	 	department, and the Company’s performance as
a whole as determined by the Company’s Chief Executive Officer and
the Board of Directors. Your annual bonus will be at least 20% in
common stock of the Company and the remainder in cash, such
proportion (if different than 80% to 20%) to be as elected by you.
For the purpose of calculating the number of shares of common stock
to be issued, the value of such shares of common stock shall be the
“Fair Market Value” of such shares as defined in the Company’s 2003
Employee Stock Incentive Plan.
	 
	 	2.5	 	Stock Options. You will be eligible for award grants under
the Company’s 2003 Employee Stock Incentive Plan as determined by
the Compensation Committee of the Company’s Board of Directors.

3. Proprietary Information Obligations.

	 	3.1	 	Confidentiality. You agree that all Confidential Information
will be held in complete confidence and that you will not, during
your employment with the Company, except in the performance of your
duties to the Company, or at any time after the termination of your
employment with the Company, disclose to any person (other than the
Company or its affiliates), or use for your own account, without the
prior written consent of the Company, any Confidential Information.
For purposes of this Agreement, the term “Confidential Information”
shall mean information relating to the business and affairs of the
Company or any of its affiliates that is of a confidential nature.
	 
	 	3.2	 	Ownership of Trade Secrets, etc.

(a) All written materials, records and documents made by you or
coming into your possession during your employment with the Company
concerning the business or affairs of the Company or any of its
affiliates shall be the sole property of the Company and its
affiliates. Upon the termination of your employment with the
Company or upon the earlier request of the Company during your
employment with the Company, you shall promptly deliver the same to
the Company (or its designee).

(b) You agree that any trade secret, invention, improvement,
patent, patent application or writing, and any program, system or
novel technique (whether or not capable of being trademarked,
copyrighted or patented) conceived, developed or otherwise obtained
by you during your employment with the Company relating to the
business, property, methods, suppliers or customers of the Company
or any of its affiliates shall be the property of the Company and
its affiliates; and you agree to give the Company prompt written
notice of your conception, invention, authorship, development or
acquisition of any such trade secret, invention,
improvement, patent, patent application or writing, and any
program, system or novel technique and to execute such instruments
of transfer, assignment, conveyance or confirmation and such other
documents and to do all appropriate lawful acts as may be required
by the Company to transfer, assign, confirm and

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perfect in the
Company all legally protectible rights in any such trade secret,
invention, improvement, patent, patent application, writing,
program, system or novel technique.

(c) You represent and warrant that the execution and delivery by
you of this Agreement and the performance by you of your
obligations hereunder will not, with or without the giving of
notice or the passage of time, (i) to the best of your knowledge,
violate any judgment, writ, injunction or order of any court,
arbitrator or governmental agency applicable to you or (ii)
conflict with, result in the breach of any provisions of or the
termination of, or constitute default under, any agreement to which
you are a party or by which you are or may be bound, including, but
not limited to, any employment, confidentiality, non-competition or
non-solicitation agreement entered into between you and any
previous employer. You agree to indemnify and hold the Company
harmless from and against any and all claims for losses,
liabilities, damages, costs and expenses which may arise or result
from the violation of any such judgment, writ, injunction or order
or the breach of any such agreement referred to in the immediately
preceding sentence. You have heretofore provided the Company with
copies of any agreement referred to in (ii) above to which you are
bound.

	 	3.3	 	Remedies. Your duties under this Section 3 shall survive
termination of your employment with the Company. You acknowledge
that a remedy at law for any breach or threatened breach by you of
the provisions of this Section would be inadequate, and you agree
that the Company shall be entitled to injunctive relief in case of
any such breach or threatened breach.

4. Continuation Of Employment/Restrictive Covenant. During the term of your
employment and for a period of six (6) months immediately following your
termination, you shall not, without first obtaining the prior written approval
of the Company, directly or indirectly engage or prepare to engage, in any
activities in competition with the Company, or accept employment or establish a
business relationship with a business that directly competes with the Company
or solicit, induce or otherwise cause any customers of the Company to terminate
or reduce their relationship with the Company. Such approval shall not be
unreasonably withheld.

5. Nonsolicitation. While employed by the Company, and for six (6) months
immediately following your termination, you agree not to interfere with the
business of the Company by soliciting, attempting to solicit, inducing, or
otherwise causing any employees of the Company to terminate his or her
employment.

6. Termination Of Employment.

(a) Either you or the Company may terminate your employment relationship
at any time for any reason whatsoever, or for no reason, with or without
Cause or advance notice. This at-will employment relationship cannot be
changed except in a writing approved by the Board. If the Company
terminates your employment without Cause at any time, you will receive as
Severance Benefits: (i) regular bi-weekly payments equal

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to your usual
base salary, less payroll deductions and required withholdings, for six
(6) months (the “Severance Period”), (ii) a payment of that portion of
the bonus, if any, you are entitled to for the calendar year based upon
performance for such year pro-rated based upon the number of full months
you were employed in such year, payable at the time such amount would
otherwise have been due ((i) and (ii) are sometimes collectively referred
to as the “Severance Payments”), and (iii) continuation of all group
health and life insurance benefits during the Severance Period, in
exchange for the execution of a release of all claims against the Company
in form satisfactory to the Company. If you resign voluntarily or if
your employment is terminated for Cause, all compensation and benefits
will cease immediately, and you will receive no Severance Benefits. Your
“qualifying event” for purposes of Section 4980B of the Internal Revenue
Code of 1986, as amended (or any successor provision thereto), shall be
your termination of employment.

For purposes of this Agreement, “Cause” shall mean misconduct, including:
(i) commission of any felony or any crime involving moral turpitude or
dishonesty; (ii) participation in a fraud or act of dishonesty against
the Company; (iii) willful breach or gross negligence of the Company’s
policies; (iv) intentional damage to the Company’s property; (v) material
breach of this Agreement; (vi) your failure or refusal in a material
respect to follow the reasonable policies or directions of the Company as
specified by the Chief Executive Officer or Board of Directors after
being provided with notice of such failure and an opportunity to cure
within seven (7) days of receipt of such notice; (vii) any other act or
omission which subjects the Company to substantial public disrespect,
scandal or ridicule or (viii) your failure to carry out the duties of
your position after being provided with notice of such failure and a
reasonable opportunity to cure. Disability shall not constitute Cause.
For purposes of this Agreement, “Disability” shall mean a disability that
prevents you from substantially performing your duties under this
Agreement for a period of at least 45 consecutive days or 90
non-consecutive days within any 365-day period.

(b) In the event of death, the Company shall pay you any earned but
unpaid salary at the time of your death and, at the time such amount
would otherwise have been due, a pro rata portion of the bonus, if any,
which may otherwise have been paid to you with respect to the annual
period in which the death occurs.

7. General Provisions.

     7.1 Employment At-Will. Please understand that your employment with the
Company is “at will,” meaning that you may terminate your employment with the
Company at
any time and for any reason whatsoever simply by notifying the Company.
Likewise, the Company may terminate your employment at any time and for any
reason, or for no reason, with or without Cause or advance notice. This
at-will relationship cannot be changed, nor may this Agreement be amended,
except in a writing signed by the President, Chief Executive Officer or Board
of Directors of the Company.

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     7.2 Notices. Any notices provided hereunder must be in writing and shall
be deemed effective upon the earlier of personal delivery (including by
telecopy) or the third day after mailing by first class mail, to the Company at
its primary office location and to you at your address as listed on the
Company’s then current payroll records.

     7.3 Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provisions had never been contained herein.

     7.4 Waiver. If either party should waive any breach of any provisions of
this Agreement, he, she or it shall not thereby be deemed to have waived any
preceding or succeeding breach of the same or any other provision of this
Agreement.

     7.5 Complete Agreement. Please also understand that your acceptance of
this Agreement should not be based on any promises or representations other
than those contained in this Agreement. Any promises contrary to the terms
specified in this Agreement are superceded by this Agreement. This Agreement
and any written option agreements between you and the Company constitute the
entire agreement between you and the Company and supercede any prior agreements
between you and the Company.

     7.6 Successors and Assigns. This Agreement is intended to bind and inure
to the benefit of and be enforceable by you and the Company, and each party’s
respective successors, assigns, heirs, executors and administrators, except
that you may not assign any of your duties hereunder and neither party may
assign any of its rights hereunder without the written consent of the other
party, which shall not be withheld unreasonably. The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization or otherwise) to all or substantially all of the business and/or
assets of the Company to execute an agreement pursuant to which the successor
expressly assumes all of the liabilities and obligations of the Company
hereunder and agrees to perform this Agreement in the same manner and to the
same extent the Company would be required to perform if no such succession had
taken place. If any successor declines to offer you employment, refuses to
assume this Agreement or fails to perform its obligations hereunder, you will
be deemed terminated without Cause and will be entitled to the Severance
Payments.

     7.7 Choice of Law. All questions concerning the construction, validity
and interpretation of this Agreement will be governed by the law of the
Commonwealth of Virginia.

     7.8 Survival. The following provisions of this Agreement shall survive
the termination of your employment and the assignment of this Agreement by the
Company to any successor in interest or other assignee: Section 2; Section 3;
Section 4 and Section 5.

5

 

     7.9 Injunctive Relief. You acknowledge that the restrictions set forth in
Sections 3, 4 and 5 above are necessary to protect the Company’s confidential
proprietary information and other legitimate business interests and are
reasonable in all respects, including duration, territory and scope of activity
restricted. You further acknowledge that the provisions of Sections 3, 4 and 5
hereof are essential to the Company, that the Company would not enter into this
Agreement if it did not include these provisions and that damages sustained by
the Company as a result of a breach of these provisions cannot be adequately
remedied by damages, and You agree that the Company, in addition to any other
remedy it may have under this Agreement or at law, shall be entitled to
injunctive and other equitable relief to prevent or curtail any breach of
Sections 3, 4, and 5 of this Agreement. You agree that the existence of any
claim or cause of action by you against the Company or its affiliates, whether
predicated on this Agreement or otherwise, shall not constitute a defense to
the enforcement by the Company of any of the provisions of Sections 3, 4, and 5
hereof.

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     In Witness Whereof, the parties have executed this Agreement as of the day
and year first above written.

ORBITAL IMAGING CORPORATION

	 	 	 
	By:
	 	 
	

	 	

	

	 	Name: Matthew M. O’Connell
	

	 	Title: Chief Executive Officer

EMPLOYEE:

	 	 	 
	By:
	 	 
	

	 	

	

	 	Timothy J. Puckorius

7

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