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Employment Agreement

 

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Title:

Employment Agreement

Entities:

Orbcomm Inc.

Date:

2006

Size:

Preview shows 4KB of 44KB total

Price:

$50

ID:

#2560979

 

 

► Employment ► Employment Agreements

 

 

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                              EMPLOYMENT AGREEMENT


The parties to this Employment Agreement (the "AGREEMENT") are Robert G.
Costantini (the "EXECUTIVE"), residing at 5 Nash Lane, Westport, CT 06880, and
ORBCOMM Inc. (the "COMPANY"), a company organized under the laws of Delaware,
with offices located at 2115 Linwood Avenue, Fort Lee, NJ 07024.

The Company desires to provide for the Executive's employment by the
Company, and the Executive desires to accept such employment under the terms and
conditions contained herein, and the parties hereto have agreed as follows:

1. EMPLOYMENT. The Company shall employ the Executive, and the
Executive shall serve the Company, as Executive Vice President and Chief
Financial Officer, with duties and responsibilities compatible with that
position. The Executive shall report to the Chief Executive Officer of the
Company. The Executive agrees to devote his full time, attention, skill, and
energy to fulfilling his duties and responsibilities hereunder. The Executive's
services shall be performed principally at the Company's New Jersey office. The
Executive understands and acknowledges that he will be required to travel
periodically to the Company's offices in Dulles, Virginia.

2. TERM OF EMPLOYMENT. The Executive's employment under this Agreement
shall commence as soon as possible after execution of this Agreement (the "START
DATE") and shall continue until September 30, 2009, unless sooner terminated
pursuant to the provisions of Section 4 (the "TERM"). The parties hereto may
extend the Term by a written agreement, signed by both parties, that
specifically references this Agreement. Upon the natural expiration of the Term
(or any extended Term), (a) the Executive's employment will become "at-will" and
will be terminable by either party hereto for any reason not prohibited by law
or for no reason, and with or without notice, (b) Section 4(e) below shall no
longer be applicable and (c) the post-employment restrictions on the Executive
under Section 7(b) below will no longer be applicable. Further, the failure of
the parties to extend this Agreement or reach a new Agreement shall not be
deemed as a "material breach" of this Agreement by the Executive.

3. COMPENSATION. As full compensation for the services provided under
this Agreement, the Executive shall be entitled to receive the following
compensation during the Term:

(a) Base Salary. The Executive shall be entitled to receive an annual
base salary (the "BASE SALARY") of $270,000. Any Base Salary increase will be
subject to the sole discretion of the Company's Board of Directors (the
"Board"). Base Salary payments hereunder shall be made in arrears in
substantially equal installments (not less frequently than monthly) in
accordance with the Company's customary payroll practices for its other
executives, as those practices may exist from time to time.

(b) Bonus. For each fiscal year during the Term, beginning with a pro
rata bonus for the 2006 fiscal year, the Executive shall also be eligible to
receive a bonus (the "BONUS"), which shall be payable in cash or cash
equivalent.

No Bonus will be paid unless the Company meets or exceeds 90% of the

{PAGE}

applicable performance targets for that fiscal year (the "Targets"). If the
Company achieves 90% of the Targets, the Bonus will be equal to 18% of the
Executive's base salary then in effect. If the Company achieves 100% of the
Targets, the Bonus will be equal to 80% of the Executive's base salary then in
effect. If the Company achieves or exceeds 125% of the Targets, the Bonus will
be equal to 100% of the Executive's base salary then in effect.

If the Company achieves between 90% and 100% of the Targets, the Bonus
will be equal to a percentage of the Executive's base salary then in effect,
with such percentage being between 18% and 80%, calculated on a straight line

 

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