Attached files
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EX-31.1 - EX-31.1 - ORBCOMM Inc. | orbc-ex311_8.htm |
10-Q - 10-Q - ORBCOMM Inc. | orbc-10q_20200930.htm |
EX-32.1 - EX-32.1 - ORBCOMM Inc. | orbc-ex321_7.htm |
EX-31.2 - EX-31.2 - ORBCOMM Inc. | orbc-ex312_9.htm |
EX-32.2 - EX-32.2 - ORBCOMM Inc. | orbc-ex322_6.htm |
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EXECUTION VERSION
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Exhibit 99.1
Certain confidential portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K and marked with “[***]”. The omitted information is (i) not material and (ii) would likely cause competitive harm to ORBCOMM Inc. if publicly disclosed.
AGREEMENT RELATING TO IDP AND OGX
THIS AGREEMENT is made on October 21 2020 (the “Effective Date”)
BETWEEN
(2) |
ORBCOMM INC, a company established under the laws of Delaware and whose registered office is at 395 W. Passaic Street, Rochelle Park, New Jersey 07662 (“ORBCOMM”), |
(each a “Party” and together, the “Parties”).
RECITALS
(A) |
Inmarsat and ORBCOMM are parties to various agreements governing their relationship in respect of IDP. |
(B) |
Inmarsat and ORBCOMM wish to enter into this Agreement to revise, replace and supersede the existing agreements in place between them relating to IDP (including by terminating those agreements and provisions which are no longer required) and to set out the commercial terms for the launch of OGX Service. |
1.1. |
In addition to capitalised terms defined elsewhere in this Agreement, the following capitalised terms have the respective meanings given below. |
“Anti-Corruption Laws” means any and all laws and regulations of any jurisdiction relating to the prevention of corruption or bribery, including, without limitation, the UK Bribery Act 2010 and the U.S. Foreign Corrupt Practices Act of 1977, each as amended from time to time.
“APCA” means the Asset Purchase and Cooperation Agreement between Inmarsat and ORBCOMM dated 20 October 2014.
“ATA” means the Asset Transfer Agreement between Inmarsat and ORBCOMM dated 11 June 2020.
“Affected Party” has the meaning given in Clause 9.3.
“Affiliate” means a person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with, another person.
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“Agreement” means this Agreement, including the General Terms and Conditions and Schedules, in each case as may be amended from time to time.
“Business Day” means a day other than a Saturday or Sunday or public holiday in England or a federal public holiday in the United States.
"Confidential Information" means: (i) the terms and substance of this Agreement; and (ii) all information disclosed in connection with this Agreement, whether before or after the date of this Agreement, including information relating to a Party’s business affairs, products, operations, processes, plans or intentions, product information, know-how, design rights, trade secrets and market opportunities, provided in each case that either (a) such information has been identified as confidential, whether in writing, orally or by another means and whether disclosed directly or indirectly, or (b) a person should reasonably recognise such information as being of a confidential nature.
“Commercially Available” has the meaning given in Clause 4.7.
“Control” means, with respect to any person, the possession, directly or indirectly, of power to direct or cause the direction of the management of such person, whether through ownership of voting securities, by contract or other agreement or otherwise (and the terms “change of Control”, “Controlling,” “Controlled by,” and “under common Control with” shall be construed accordingly).
“Dual Mode Services” means service offerings that combine (i) two or more modes of connectivity provided by ORBCOMM or its Affiliates in which the IDP Service is the back-up mode of communication, including IDP satellite airtime and cellular airtime services; or (ii) IDP satellite airtime and ORBCOMM’s VHF satellite airtime services.
“Dual Mode Services Revenue Share Amount” has the meaning given in Clause 3.18.
“Effective Date” means the date stated in the first paragraph of this Agreement, or if no date is stated, the latest date written on the signature blocks of this Agreement.
“Force Majeure Event” has the meaning set out in Clause 9.1.
“General Terms and Conditions” means the terms and conditions contained in Clauses 1 (Definitions and Interpretation) through 12 (General), inclusive, of this Agreement.
“IDP” means the IsatData Pro product line.
“IDP Airtime” means Network Services using IDP Service other than through an IDP Solution or Dual Mode Service.
“IDP Airtime Revenues” means recurring service revenues received by ORBCOMM or Inmarsat (as applicable) in respect of IDP Airtime directly related to network use including activation and subscription charges and ongoing data use and overage charges (but excludes charges relating to value added services or IDP Solutions or Dual Mode Services) calculated in a manner consistent with past practices. For the avoidance of doubt, IDP Airtime Revenues shall exclude portions of the recurring revenue not attributable to Network Services, including amounts allocable to any hardware costs financed, warranty expense, installation services or interest expense.
“IDP Airtime Revenue Share Amount” has the meaning set out in Clause 3.8(a).
“IDP Airtime Revenue Share Applicable Percentage” means [***]%, beginning 1 January 2022.
“IDP DA” means the IDP Distribution Agreement between Inmarsat and Skywave (an Affiliate of ORBCOMM) dated 26 June 2013, as amended.
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“IDP Service” means any communications service over Inmarsat satellites communicating with terminals incorporating IDP Technology.
“IDP Solutions” means service offerings that combine both IDP satellite airtime and application services provided by ORBCOMM or one of its Affiliates or by Inmarsat or one of its Affiliates (in each case, typically for sale to end users).
“IDP Solutions Revenues” means recurring service revenue in respect of IDP Solutions calculated in accordance with Clause 3.16 below.
“IDP Solutions Revenue Share Amount” has the meaning set out in Clause 3.16.
“IDP Technology” means all Intellectual Property and all recognized rights in any jurisdiction that belong to SkyWave or its Affiliates, as of December 31, 2014, and that have been used prior to December 31, 2014 (which for the avoidance of doubt exclude any Intellectual Property owned by ORBCOMM and its Affiliates prior to December 31, 2014), in the design, development, improvement, manufacture, operation, control, maintenance, or repair of IDP chips, IDP terminals, or IDP networks. Notwithstanding the foregoing or anything to the contrary, the IDP Technology does not include rights to any mobile terminals developed by Skywave or ORBCOMM (or any of their respective Affiliates) prior to December 31, 2014 or mobile terminal IDP Intellectual Property rights (inclusive of the design, intellectual property, applications and tools associated with the applicable terminal) except for IDP baseband designs in accordance with Section 4.6 of the APCA.
“Inmarsat Capex Minimum Contribution” has the meaning given in Clause 3.2.
"Intellectual Property” means all patents, rights to inventions, utility models, copyright and related rights, trade secrets, trademarks, service marks, trade, business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, rights in designs, rights in computer software, database rights, topography rights, moral rights, rights in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications for and renewals or extensions of such rights, and all similar or equivalent rights or forms of protection in any part of the world.
“Key Customer” means each party listed in Schedule 4 – Part A and their respective Affiliates (other than an entity that (i) first becomes an Affiliate of a party listed in Schedule 4 – Part A after the Effective Date; and (ii) is purchasing Inmarsat services from Inmarsat as of the date such entity becomes an Affiliate of a party listed in Schedule 4 – Part A).
“LCIA” has the meaning given in Clause 11.3.
“Lease” means the Lease Service Provider Agreement and Lease Contract, appointing Skywave as a lease service provider for SLDR-1 Services, between Inmarsat and Skywave dated 30 June 2009, as amended.
“Minimum ORBCOMM OGX Satellite Capacity Level” has the meaning given in Clause 4.9.
“MoU” means the Memorandum of Understanding between the Parties dated 29 January 2020, as amended by Amendment No. 1 and Amendment No. 2 thereto.
“Network Services” means the IDP Service and/or OGX Service provided by Inmarsat or ORBCOMM, as applicable, it being understood that Network Services shall include, in a manner consistent with past practice, gateway activation, mobile activation, mobile subscription, data overage, broadcast ID subscription fees, broadcast data overage and transfers.
“OGX Airtime” means Network Services using OGX Service other than through an OGX Solution or Dual Mode Service.
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“OGX Airtime Revenues” means recurring service revenues received by ORBCOMM or Inmarsat (as applicable) in respect of OGX Airtime directly related to network use including activation and subscription charges and ongoing data use and overage charges (but excludes charges relating to value added services or Solutions or Dual Mode Services) calculated in a manner consistent with past practices for IDP Airtime Revenues. For the avoidance of doubt, OGX Airtime Revenues shall exclude portions of the recurring revenue not attributable to Network Services, including amounts allocable to any hardware costs financed, warranty expense, installation services or interest expense.
“OGX Revenue Share Conversion Date” means the date that is one (1) year after the date on which the OGX Service becomes Commercially Available.
“OGX Service” means ORBCOMM’s next generation L-band service using ORBCOMM’s terminals (or using terminals which are not ORBCOMM Hardware if approved by ORBCOMM pursuant to Clause 4.5), ORBCOMM’s Intellectual Property, frequency allocation plan and infrastructure and Inmarsat’s satellite capacity. OGX Service is expected to include the following four categories (i) Legacy IDP – IDP terminals operating within the OGX spectrum plan; (ii) OGX Lite – RFIC terminals messaging at low data rates similar to IDP; (iii) OGX HDR – RFIC terminals messaging at high data rates; or (iv) OGX LP – new class of terminals, low power and lowest cost.
“Operational Services Agreement” has the meaning given in Clause 5.1.
“ORBCOMM Hardware” means any terminal hardware designed by ORBCOMM or any of its Affiliates for providing IDP Services, including those listed in Schedule 3, as updated from time to time to include new IDP products and terminal hardware relating to OGX Services (once Commercially Available).
"Parties" means Inmarsat and ORBCOMM or their permitted successors or assigns, and "Party" shall mean either of them, as applicable.
“Retained Provisions” has the meaning given in Clause 2.2.
“Rules” has the meaning given in Clause 11.3.
“SDLR-1 PA” means the SLDR-1 Pricing Agreement, between Inmarsat and Skywave dated 26 October 2012.
“Shortfall Amount” has the meaning given in Clause 3.5.
“Skywave” means SkyWave Mobile Communications Inc., an Affiliate of ORBCOMM from and after January 1, 2015.
“Service Level Agreement” or “SLA” means the service level agreement attached as Schedule 2.
“Tax” means all taxes, levies, duties, costs, withholdings, deductions, imposts, or charges of equivalent effect imposed by any governmental authority, whether collected by withholding or otherwise and including, without limitation, U.S. Universal Service Fund contributions assessed by the U.S. Federal Communications Commission.
“Term” means the term of this Agreement as determined in accordance with Clause 7.
“Terminated Agreement” has the meaning given in Clause 2.1.
“Top 10 Customer” means those customers and their Affiliates set out in Part B of Schedule 4 – Customers.
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1.3. |
In the event of any ambiguity or inconsistency within this Agreement, it shall be resolved according to the following order of precedence where those items higher in the list shall take precedence over those items lower down: (i) General Terms and Conditions; and (ii) Schedules. |
2.1. |
The Parties agree that, subject to Clause 2.2, the following agreements shall terminate on the Effective Date: |
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(a) |
MoU; |
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(b) |
Lease; |
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(c) |
APCA; |
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(d) |
SDLR-1 PA; and |
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(e) |
IDP DA. |
(each a “Terminated Agreement” and together the “Terminated Agreements”).
2.3. |
Provisions of a Terminated Agreement that are either expressed under such Terminated Agreement to survive its termination or, from their nature or context, are contemplated to survive such termination, shall remain in full force and effect notwithstanding such termination, provided that in the event of any inconsistency between those provisions and any provisions of this Agreement, the provisions of this Agreement shall prevail. |
2.4. |
Termination of a Terminated Agreement shall not affect or prejudice any claim or demand that either Party may have against the other under or in connection with such Terminated Agreement arising before the Effective Date. Without prejudice to the foregoing, each Party represents to the other that, as of the Effective Date, it is not aware of any claim against the other Party under the Terminated Agreements (other than ordinary course payment obligations incurred but not yet paid). |
Service Continuity
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requirements, in accordance with Section 4.3 of the APCA (which is set out as Retained Provision in Schedule 1). Commencing on or after 1 December 2032, Inmarsat shall be entitled to terminate the IDP Service on no less than three (3) years’ prior written notice to ORBCOMM (such notice not to be issued prior to 1 January 2032) of the withdrawal of IDP from service (i.e., no further use by Inmarsat). If the IDP Airtime Revenue Share Amount plus the IDP Solutions Revenue Share Amount falls below US$[***] in any given calendar year during the Term commencing in 2020, Inmarsat shall be entitled to limit the capacity allocation for IDP Service and OGX Service (once Commercially Available) furnished to ORBCOMM and its Affiliates to the levels provided as at the Effective Date, with respect to IDP Service, and to the levels provided as of the OGX Revenue Share Conversion Date, with respect to OGX Service, on no less than six months’ prior written notice to ORBCOMM. |
3.6. |
For the avoidance of doubt, Inmarsat’s service life extension obligation under Clause 3.1 of this Agreement shall be subject to the force majeure terms and conditions set forth in Clause 9. |
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IDP Revenue Share
3.8. |
ORBCOMM shall pay to Inmarsat in accordance with Clause 3.22 an annual sum in respect of IDP Airtime, to be calculated as follows: |
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3.14. |
ORBCOMM shall provide ongoing support to Inmarsat as reasonably needed to ensure a standardized type-approval process for ORBCOMM Hardware, including the use of standardized tools common to all manufacturers. |
3.15. |
At Inmarsat’s request, ORBCOMM shall provide engineering support to third parties developing IDP applications using ORBCOMM Hardware for providing IDP Service, subject to resource availability and reasonable confidentiality and intellectual property protection provisions, provided that if ORBCOMM reasonably determines that the revenue share payable to ORBCOMM under Clause 3.13 above resulting from such engineering support is not expected to at least cover the value of such requested support, commercially reasonable rates will be payable by Inmarsat to ORBCOMM. |
IDP Solutions Pricing
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Commission
Audit
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3.23. |
The Parties may, but are not required to, agree to net off payments due to each other resulting in a single balancing payment to be made each month. |
3.24. |
The currency for payments made under this Agreement is US Dollars. Any payment to be made under this Agreement shall be made by electronic funds transfer directly to the bank account designated in the applicable invoice. The paying Party shall be solely responsible for the costs associated with such electronic fund transfers. Each Party shall provide the necessary usage data necessary for the other Party to calculate the invoice to be issued. |
3.29. |
Except as provided in Clause 3.30, each Party shall be liable for its own Taxes imposed on, or in respect of, any payment it makes or receives pursuant to this Agreement. |
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payment to a payee Party hereunder, the payor Party shall be responsible for and bear such Tax and indemnify the other Party from and against such Tax. If any Tax becomes payable by either Party in respect of any sale and provision by such Party of IDP Airtime or OGX Airtime, as applicable, to a third party customer, which Tax is imposed by the country in which such customer is resident or operates its business and would not have been incurred in the absence of such sale and provision to such customer, such Tax shall be for the account of the selling Party and the selling Party shall indemnify the other Party from and against such Tax. The Parties shall cooperate with each other in order to minimize any applicable Tax. |
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to any customer where such customer would be using a terminal that is not ORBCOMM Hardware in order to receive such OGX Service, unless otherwise approved in writing by ORBCOMM acting in its sole discretion by means of a waiver signed by ORBCOMM. |
4.8. |
On the date that is one (1) year following the date that the OGX Service becomes Commercially Available, the following amendments to this Agreement shall take effect: |
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(a) |
The definition of “Dual Mode Services” shall be deleted and replaced with the following definition: |
“Dual Mode Services” means service offerings that combine (i) two or more modes of connectivity provided by ORBCOMM or its Affiliates in which the IDP Service or OGX Service is the back-up mode of communication, including (x) IDP or OGX satellite airtime and cellular airtime services; or (ii) IDP or OGX satellite airtime and ORBCOMM’s VHF satellite airtime services.”
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(b) |
the definition of “IDP Airtime” shall be deleted and replaced with the following definition: |
“Airtime” means Network Services using: (i) IDP Service other than through an IDP Solution or Dual Mode Service; and/or (ii) OGX Service other than through an OGX Solution or Dual Mode Service.
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(c) |
all references in this Agreement to “IDP Airtime” shall be deleted and replaced with “Airtime”; |
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(d) |
the definition of “IDP Airtime Revenue” shall be deleted and replaced with the following definition: |
“Airtime Revenue” means IDP Airtime Revenues and OGX Airtime Revenues.
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(e) |
all references in this Agreement to “IDP Airtime Revenues” shall be deleted and replaced with “Airtime Revenues”; |
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(f) |
the definition of “IDP Airtime Revenue Share Amount” shall be deleted and replaced with the following definition: |
“Airtime Revenue Share Amount” has the meaning set out in Clause 3.8(a).
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(g) |
all references in this Agreement to “IDP Airtime Revenue Share Amount” shall be deleted and replaced with “Airtime Revenue Share Amount”; |
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(h) |
the definition of “IDP Airtime Revenue Share Applicable Percentage” shall be deleted and replaced with the following definition: |
“Airtime Revenue Share Applicable Percentage” means [***] percent ([***%).
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(i) |
all references in this Agreement to “IDP Airtime Revenue Share Applicable Percentage” shall be deleted and replaced with “Airtime Revenue Share Applicable Percentage”; |
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(j) |
the definition of “IDP Solutions Revenue Share Amount” shall be deleted and replaced with the following definition: |
“Solutions Revenue Share Amount” has the meaning set out in Clause 3.16.
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(k) |
all references in this Agreement to “IDP Solutions Revenue Share Amount” shall be deleted and replaced with “Solutions Revenue Share Amount”; |
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(l) |
the definition of “IDP Solutions Revenues” shall be deleted and replaced with the following definition: |
“Solutions Revenues” means recurring service revenue in respect of IDP Solutions and OGX Solutions calculated in accordance with Clause 3.16 below.
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(m) |
all references in this Agreement to “IDP Solutions Revenues” shall be deleted and replaced with “Solutions Revenues”; |
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(n) |
the following definitions shall be added to this Agreement: |
“OGX Solutions” means service offerings that combine both OGX satellite airtime and application services provided by ORBCOMM or one of its Affiliates (typically for sale to end users) but excludes Dual Mode Services.
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(o) |
Clause 3.1 of this Agreement shall be amended as follows: |
“Subject to Clause 3.3 and 4.12, Inmarsat shall provide the IDP Service and/or the OGX Service (as applicable) to ORBCOMM and its Affiliates through at least 1 December 2035, to meet ORBCOMM and its Affiliates’ capacity requirements for IDP Services and/or OGX Services, as applicable, in accordance with the SLA, existing as of the Effective Date and, with respect to future requirements, in accordance with Section 4.3 of the APCA (which is set out as Retained Provision in Schedule 1). Commencing on or after 1 December 2032, Inmarsat shall be entitled to terminate the IDP Service OGX Service on no less than three (3) years’ prior written notice to ORBCOMM (such notice not to be issued prior to 1 January 2032) of the withdrawal of IDP OGX from service (i.e., no further use by Inmarsat). If the IDP Airtime Revenue Share Amount plus the IDP Solutions Revenue Share Amount falls below US$[***] in any given calendar year commencing in 2020, Inmarsat shall be entitled to limit the capacity allocation for IDP Service and OGX Service (once Commercially Available) furnished to ORBCOMM and its Affiliates to the levels provided as at the Effective Date, with respect to IDP Service, and to the levels provided as of the OGX Revenue Share Conversion Date, with respect to OGX Service, on no less than six months’ prior written notice to ORBCOMM.”
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(p) |
Clause 3.4 of this Agreement shall be amended as follows: |
“3.4 For so long as Inmarsat makes the IDP Service and/or the OGX Service globally available to ORBCOMM on its network, ORBCOMM shall not make the IDP Service or the OGX Service (as applicable) available on any other satellite network except as permitted pursuant to the Retained Provisions.”
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(q) |
Clause 3.7 of this Agreement shall be amended as follows: |
“In the event that the service level of the IDP Service or the OGX Service degrades from the levels in effect as at the Effective Date, with respect to IDP Service, and to the levels provided as of the OGX Revenue Share Conversion Date, with respect to OGX Service, and such
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degradation has or would cause ORBCOMM to lose subscribers or revenue in a material respect, upon written notice from ORBCOMM to Inmarsat, the Parties shall negotiate in good faith in an attempt to resolve such issue. If the Parties cannot reach agreement on a resolution to such issue after negotiations over a period of not less than thirty (30) days, ORBCOMM may elevate such issue to senior management of the Parties by written notice to Inmarsat. In the event such senior management cannot resolve the issue within thirty (30) business days after the date of such notice, ORBCOMM may elect by written notice to Inmarsat, within twenty (20) business days after the end of such thirty (30) day period for discussions between senior management of each Party, to terminate exclusivity of IDP Service on Inmarsat’s network as set out in Section 4.4 of the APCA (which is set out as a Retained Provision in Schedule 1).”
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(r) |
Clause 3.8 of this Agreement shall be amended as follows: |
“IDP Revenue Share
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3.8 |
ORBCOMM shall pay to Inmarsat in accordance with Clause 3.22an annual sum in respect to |
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a) |
for two years commencing 1January 2020, for the Top 10 Customers and their Affiliates as defined in Part B of Schedule 4, Inmarsat shall be entitled to invoice ORBCOMM for [***]% of |
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b) |
from 1 January 2022 ORBCOMM shall pay to Inmarsat an annual sum equal to the |
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(s) |
Clause 3.9 of this Agreement shall be amended as follows: |
If Inmarsat offers, sells or makes available airtime pricing below the pricing based on the IDP Airtime Revenue Share Amount set forth in Clause 3.8 above (or the IDP Solutions Revenue Share Amount set forth in Clause 3.15 below), to other similarly situated IDP or OGX distributors or customers selling similar or lower volumes and in similar customer segments and geographies, then Inmarsat shall make such pricing available to ORBCOMM and its Affiliates for the relevant segments and geographies and similar or lower volumes effective from such date Inmarsat made such lower pricing available to such other similarly situated IDP or OGX distributors or customers (provided this may not extend back more than one (1) year).
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(t) |
Clause 3.11of this Agreement shall be amended as follows: |
“3.11 From the date that is one (1) year after OGX Service becomes Commercially Available, Inmarsat shall pay to ORBCOMM an annual sum equal to [***]% of all IDP Airtime Revenues collected by Inmarsat and its Affiliates from customers other than ORBCOMM and its Affiliates.
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Such revenues shall be reported by Inmarsat to ORBCOMM on a monthly basis and Inmarsat shall make the payments required under this Clause 3.10 to ORBCOMM on a monthly basis in arrears in accordance with Clause 3.19.”
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(u) |
Clause 3.12 of this Agreement shall be amended as follows: |
“3.12 The Parties have agreed pricing for ORBCOMM Hardware, as set out in Schedule 3. The Parties shall review such pricing from time to time, not less than once per calendar year during the Term, to ensure market competitiveness and that pricing for new ORBCOMM Hardware, is available to Inmarsat customers pursuant to this Agreement. Pricing for ORBCOMM Hardware to Inmarsat customers shall be no less favourable than the pricing for the same ORBCOMM Hardware sold by ORBCOMM to other ORBCOMM customers on a similar volume basis for similar market segments and geographies, provided this Clause 3.12shall not apply to any Inmarsat customer that sells or is offering to sell IDP Services or OGX Services to any of the Key Customers. The Parties also agree to review pricing of ORBCOMM Hardware on a case-by-case basis where the Parties believe that special pricing is required to win new business.”
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(v) |
Clause 3.13 of this Agreement shall be deleted in its entirety and replaced with the below: |
“3.13 In circumstances where Inmarsat receives IDP Airtime Revenues from IDP hardware which is not ORBCOMM Hardware (as approved in writing by ORBCOMM in its sole discretion with respect to OGX Service from hardware which is not ORBCOMM Hardware), Inmarsat shall pay ORBCOMM in accordance with Clause 3.19: (i) a [***]% share of the IDP Airtime Revenues derived from such hardware for the period of five (5) years after the launch (being the date on which the first unit of such hardware is shipped for commercial sale); and (ii) a [***]% share of the derived IDP Airtime Revenues thereafter. For the avoidance of doubt, as set forth in Clause 4.2, IDP hardware that is not ORBCOMM Hardware will not be permitted to receive OGX Service, unless otherwise approved in writing by ORBCOMM acting in its sole discretion by means of a waiver signed by ORBCOMM.”
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(w) |
Clause 3.16 of this Agreement shall be amended as follows: |
“IDP Solutions Pricing
“3.16 In respect of IDP service and OGX revenues collected by ORBCOMM and its Affiliates for IDP Solutions and OGX Solutions, ORBCOMM shall make payments to Inmarsat: (i) in accordance with Schedule 5 through 31 December 2021; and (ii) commencing 1 January 2022, reflecting an annual sum equal to [***]% of total IDP Solutions Revenues collected by ORBCOMM and is Affiliates with respect to such annual period (collectively with the Dual Mode Services Revenue Share Amount, the “IDP Solutions Revenue Share Amount”). For the avoidance of doubt, the IDP Solutions Revenue Share Amount shall exclude portions of the recurring revenue not attributable to network connectivity and application services, including amounts allocable to any hardware costs financed, warranty expense, installation services or interest expense. Such revenues shall be reported on a monthly basis by ORBCOMM to Inmarsat and ORBCOMM shall make the payments required under this Clause 3.16on a monthly basis in arrears in accordance with Clause 3.22.
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(x) |
Clause 3.19of this Agreement shall be amended as follows: |
“Commission
3.19 Subject to Clause 3.20 if Inmarsat (or any Inmarsat Affiliate) or an Inmarsat customer sells IDP Services or OGX Services to (a) any of ORBCOMM’S Key Customers after the Effective Date; or (b) any terminals fielded as of the Effective Date that have received IDP Services or OGX
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Services from ORBCOMM or its Affiliates, Inmarsat shall identify, or shall procure, at its own expense, an independent accounting firm to identify, IDP Service and OGX Service revenues associated with such Key Customers and terminals, as applicable, and shall pay to ORBCOMM a commission equal to [***]% of the total amount of such revenues calculated on an annual basis. Such revenues shall be reported on an annual basis by Inmarsat to ORBCOMM and Inmarsat shall make the payments required under this Clause 3.16 on an annual basis in arrears in accordance with Clause 3.19.
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(a) |
If Inmarsat allocates, pursuant to one or more requests by ORBCOMM, additional satellite capacity in excess of the Minimum ORBCOMM OGX Satellite Capacity Level, the then-applicable thresholds referenced in Clauses 3.1, 3.3 and 3.5 of this Agreement (i.e., with respect to the sum of the Airtime Revenue Share Amount and the Solutions Revenue Share Amount) shall each be increased by an additional US$[***] upon each incremental increase of [***]% of the Minimum ORBCOMM OGX Satellite Capacity Level (as measured on a global basis in accordance with Schedule 6 – Technical Annex); provided that, in each case, the calculation of such threshold amounts shall include all revenue amounts received by Inmarsat from all sources in respect of both Airtime and Solutions. |
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(b) |
Solely for illustrative purposes: (i) if ORBCOMM requests additional satellite capacity in excess of the Minimum ORBCOMM OGX Satellite Capacity Level and such request is ORBCOMM’s first such request and reflects an amount of additional satellite capacity equal to [***]% of the Minimum ORBCOMM OGX Satellite Capacity Level, the US$[***] thresholds referenced in Clauses 3.1, 3.3 and 3.5of this Agreement would each remain unchanged; (ii) if ORBCOMM subsequently makes another request for additional satellite capacity and such request reflects an amount of additional satellite capacity equal to [***]% of the Minimum ORBCOMM OGX Satellite Capacity Level (producing a total amount of additional satellite capacity equal to [***]% of the Minimum ORBCOMM OGX Satellite Capacity Level), the US$[***] thresholds referenced in Clauses 3.1, 3.3 and 3.5 of this Agreement would each be adjusted to US$[***]; and (iii) if over time ORBCOMM subsequently makes further requests for additional satellite capacity and such requests reflect an amount of additional satellite capacity equal to [***]% of the Minimum ORBCOMM OGX Satellite Capacity Level (producing a total amount of satellite capacity equal to [***]% in excess of the Minimum ORBCOMM OGX Satellite Capacity Level), the applicable thresholds referenced in Clauses 3.1, 3.3 and 3.5 of this Agreement would increase to US$[***] (incrementally $[***] for each increment of [***]% additional capacity in excess of the Minimum ORBCOMM OGX Satellite Capacity). |
4.11. |
For the avoidance of doubt, satellite capacity used by any party other than ORBCOMM and its Affiliates shall be excluded from calculation of the Minimum ORBCOMM OGX Satellite Capacity Level and from any future satellite capacity usage calculation with respect to ORBCOMM and its Affiliates required for the purpose of this Agreement. |
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6.3. |
Except as set out in this Agreement, all conditions, warranties, terms and undertakings, express or implied, statutory or otherwise, in respect of goods or services provided under this Agreement are excluded to the fullest extent permitted by law. |
6.4. |
Subject to Clause 6.2 and excluding each Party’s payment obligations, the aggregate liability of each Party (and its Affiliates) to the other Party (and its Affiliates) under or in connection with this Agreement, whether in tort (including negligence), breach of contract, breach of statutory duty, misrepresentation or otherwise, shall at all times be limited to US$[***]. |
7.1. |
This Agreement begins on the Effective Date and, unless terminated in accordance with its terms, shall continue until the IDP Service and/or OGX Service is withdrawn from service in accordance with Clause 3 of this Agreement. |
7.2. |
Either Party (the "Initiating Party") may terminate this Agreement in whole or in part by notice in writing to the other Party (the "Breaching Party") only under the following circumstances: |
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(a) |
a material breach of this Agreement by the Breaching Party which the Breaching Party fails to remedy within sixty (60) days after receipt of notice of the breach from the Initiating Party, with such termination effective as of the expiration of such sixty (60) cure period; or |
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(b) |
immediately on notice upon the dissolution or liquidation of the Breaching Party as a result of insolvency; or |
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7.3. |
Either Party (the "Initiating Party") may terminate this Agreement in whole or in part by notice in writing to pursuant to Clause 3.1, subject to Clauses 3.3 and 3.5. |
7.4. |
Either Party may terminate this Agreement in case of a Force Majeure Event in accordance with the provisions of Clause 9.3. |
8.1. |
Termination of this Agreement shall not affect a Party's accrued rights and obligations as at the date of termination. |
8.3. |
In the event of termination of this Agreement, each Party may invoice all amounts accrued and owed by the other Party under this Agreement as of the date of termination, which amounts shall become immediately due and payable, together with any interest accrued pursuant to the terms of this Agreement. |
8.4. |
Upon termination of this Agreement, each Party shall, at the instruction of the other Party, return to the other Party or destroy all material containing any Confidential Information of the other Party. |
9.2. |
Any written notice referred to in Clause 9.1 shall include a detailed description of the obligations known to be affected by the relevant Force Majeure Event, as well as a proposed work-around plan that: (a) sets forth the affected Party's reasonable efforts to mitigate the effect of such Force Majeure Event and includes a schedule for such mitigation; and (b) contains sufficient detail for the other Party to be able to evaluate such plan. If appropriate, such work-around plan shall provide for the use of work-around schedules, payment of expedited fees, twenty-four (24) hour operations and alternate subcontractors or suppliers, as applicable. During the pendency of such Force Majeure Event, the affected Party shall communicate promptly to the other Party any meaningful developments regarding such Force Majeure Event. |
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10.1. |
The Parties acknowledge and agree that they shall not disclose, directly or indirectly, the Confidential Information of the other Party to any other person, except in the following instances: |
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(a) |
Confidential Information may be disclosed to the Parties’ respective Affiliates, directors, officers, employees, agents, auditors, attorneys, financing sources and other advisors and representatives who have a need to know the information, provided that such persons are aware of the confidential nature of such information and subject to contractual or professional obligations to safeguard the confidentiality of such information on terms at least as restrictive as those under this Agreement; and |
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(b) |
Confidential Information may be disclosed as may be compelled in a judicial or administrative proceeding or as otherwise required by law or requested by regulatory authorities with jurisdiction over the disclosing Party, including disclosure requirements of the U.S. Securities and Exchange Commission or any other applicable stock exchange disclosure requirements anywhere in the world, in any which case the disclosing Party, to the extent permitted by applicable law, shall to inform the other Party promptly thereof prior to disclosing and accommodate the reasonable instructions of the other Party to make such representations or appeals to object to the disclosure or redact sensitive information prior to disclosure. |
10.2. |
Each Party shall not, without the prior written approval of the other Party in each instance: (a) use the name, trade name, trademarks, service marks or logos of the other Party in any publicity releases, news releases, press releases, product packaging, signage, stationary, print literature, advertising or websites; or (b) represent (directly or indirectly) that any product or service offered by the first Party has been approved or endorsed by the other Party, or that the other Party is a client of the first Party. |
11.1. |
This Agreement shall be governed by the laws of the State of New York without giving effect to principles of conflicts of law. Any right to trial by jury with respect to any claim or action arising out of this Agreement is hereby irrevocably waived. |
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11.6. |
Each Party irrevocably waives any objections to the jurisdiction of any courts referred to in this Clause 11. |
12.1. |
Counterparts: This Agreement may be executed by facsimile or electronic signatures in several counterparts, which shall be accepted as if such signatures were original execution signatures. |
12.2. |
Entire Agreement: Subject to Clause 2, this Agreement embodies the entire agreement and understanding of the Parties with respect to its subject matter, and supersedes any other agreements or understandings between the Parties with respect to the same. |
12.3. |
Order of Precedence: In the event of any inconsistency between the terms and conditions set forth in this Agreement (or any Schedule hereto) and the terms and conditions set forth in any other existing agreement between Inmarsat and ORBCOMM (or any of their Affiliates) the terms and conditions set forth in this Agreement (or any such attachment hereto, as applicable) shall prevail. |
12.4. |
Amendment: No amendment of this Agreement shall be valid unless in writing and signed by an authorized representative of each Party, as designated by each Party from time to time. |
12.6. |
Good Faith and Fair Dealing: Except where explicitly stated otherwise (e.g., use of “sole discretion”), the performance of all obligations and exercise of all rights by each Party shall be governed by the principle of good faith and fair dealing. |
12.7. |
Independent Contractor: Each Party is an independent contractor of the other. Officers, directors, employees, personnel, agents and contractors retained by or on behalf of a Party, as applicable, to perform such Party’s obligations under this Agreement shall at all times be under the retaining Party’s exclusive direction and control and shall in no way be deemed to be an employee, agent or contractor of the other Party. |
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hand to the applicable Party at the address specified; (2) received by that addressee at that address by certified mail, return receipt requested, with postage fully prepaid; or (3) for those items the Parties agree may be communicated via email, the person specified at the e-mail address specified has acknowledged or confirmed receipt thereof. The Parties may change the address or person for notification upon ten (10) days’ notice to the other. The initial notification information for each Party is: |
For ORBCOMM:
ORBCOMM Inc.
395 W. Passaic Street, Suite 325
Rochelle Park, New Jersey 07662
Attn: Chief Executive Officer
with a copy to:
ORBCOMM Inc.
395 W. Passaic Street, Suite 325
Rochelle Park, New Jersey 07662
Attn: General Counsel
For Inmarsat:
INMARSAT Global Limited
99 City Road
London
EC1Y 1AX
United Kingdom
Attn: President, Inmarsat Enterprise
with a copy to:
INMARSAT Global Limited
99 City Road
London
EC1Y 1AX
United Kingdom
Attn: General Counsel
12.9. |
Remedies Cumulative. No specific remedy under this Agreement shall limit a Party’s right to exercise all other remedies available to such Party under law, in equity or under this Agreement, and all such remedies shall be cumulative. |
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12.11. |
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties, SkyWave and their permitted assigns and each Party intends that this Agreement shall not benefit, or create any right or cause of action in or on behalf of, any person or entity other than the Parties and their permitted assigns. |
12.12. |
Waiver. No delay or omission by either Party to exercise any right or power it has under this Agreement shall impair or be construed as a waiver of such right or power. A waiver by any Party of any breach or obligation shall not be construed to be a waiver of any succeeding breach or any other obligation. |
12.13. |
Anti-Corruption Compliance: Each Party shall comply with all applicable Anti-Corruption Laws in the course of its performance of its obligations under this Agreement. |
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorised representatives as of the Effective Date.
For and on behalf of: |
For and on behalf of: |
INMARSAT GLOBAL LIMITED |
ORBCOMM INC |
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SIGNATURE: /Alison HOrrocks/ |
SIGNATURE: /Marc Eisenberg/ |
NAME: Alison HOrrocks |
NAME: Marc Eisenberg |
TITLE: Director |
TITLE: CEO |
DATE: Oct 22, 2020 |
DATE: Oct 22, 2020 |
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The following schedules to the agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K:
Schedule 2: SERVICE LEVEL AGREEMENT OR SLA
Schedule 3: ORBCOMM HARDWARE PRICING
Schedule 4: CUSTOMERS
Schedule 5: COMMERCIAL WHOLESALE CHARGES TERMS AND CONDITIONS
Schedule 6: IDP AND OGX TECHNICAL ANNEX
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SCHEDULE 1 – EXISTING AGREEMENTS RETAINED PROVISIONS
Retained Clause |
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IDP DA |
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Definitions |
“Reseller” means an entity that purchases IDP from Wholesale Distributor for the purposes of reselling to End Users. “End User” means an individual or entity that purchases IDP from a Wholesale Distributor and/or Reseller for their own use and does not resell IDP. “Wholesale Distributor” means any entity that purchases IDP from Inmarsat for the purposes of distributing to Resellers and/or selling IDP directly to End Users. |
Clause 6.1.1/Clause 19.3 |
The Parties shall provide to each other reasonable marketing support, such as assistance in joint press releases and joint tradeshow participation as mutually agreed upon. Inmarsat and ORBCOMM agree to use commercially reasonable efforts to sell, market, create awareness of, and create demand for IDP products and services on Inmarsat’s satellite communications network and, once Commercially Available, OGX services on Inmarsat’s satellite communications network. |
Clause 9.3 |
Inmarsat shall pay ORBCOMM for accessories associated with ORBCOMM Hardware based on prevailing solution provider prices at the time of purchase. |
Clause 9.4 |
Both Parties agree that they shall not provide pricing or other terms for IDP Service or, when it becomes Commercially Available, the OGX Service, in a manner designed to unreasonably reduce or eliminate any revenue share payment required under this Agreement. |
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Section 2.1.4 |
Each of Inmarsat and ORBCOMM shall promptly notify the other it if becomes aware of a possible infringement by a third party of any IDP Technology. If either Party desires to take any action against such an infringing or misappropriating third party, such Party shall first notify the other Party hereto and consult with such notified Party regarding such action. The notified Party shall inform the notifying Party of whether it desires to participate in such action. If the notified Party desires to participate in such action, Inmarsat and ORBCOMM shall then jointly and cooperatively pursue such action and shall share on a 50%-50% basis (i) all external costs, and (ii) any damages, royalties, license fees or other recoveries; provided that either Party may at any time decide not to participate further in such action, in which case any further costs shall be borne by and all damages, royalties, license fees and other recoveries shall be received by the Party which continues to pursue such action. If either of Inmarsat or ORBCOMM, as applicable, declines to participate in such action, the other Party shall then have the right to pursue such action alone, and shall bear the costs of and receive all damages, royalties, license fees and other recoveries from such action. Notwithstanding the foregoing, if a Party declines to participate in such an action or withdraws from such an action, such Party shall nevertheless, at the request of the other party, cooperate with the other Party, at the cost of the other Party and subject to any reasonable conditions (including indemnification against counterclaims by the third party), to the extent which may be necessary to enable the other Party to pursue such action effectively, including without limitation joining such action as an indispensable party that is not otherwise participating in the applicable litigation. |
Section 2.1.6 |
ORBCOMM and Inmarsat shall each use commercially reasonable efforts to maintain the confidential and proprietary nature of the IDP Technology to the extent the IDP Technology is not protected as registered Intellectual Property. |
Section 3.4 |
Inmarsat shall offer ORBCOMM airtime pricing and contract terms for IDP Service and, once Commercially Available, OGX Service on a non-discriminatory basis as measured against the pricing and terms offered by Inmarsat to other similarly situated distribution partners for IDP Service or OGX Service, as applicable, in similar customer segments and geographies. Inmarsat and ORBCOMM will work in good faith to determine a migration path and non-discriminatory commercial terms applicable for existing customers of IDP Service or OGX Service, as applicable, in the approach to end of life global availability of the I-4 or I-6 satellites, as applicable. If Inmarsat offers IDP Services or, once Commercially Available, OGX Services on any other future generations of satellites, then Inmarsat will offer IDP Services and, once Commercially Available, OGX Services to ORBCOMM on non-discriminatory pricing and other terms and conditions against those offered to other similarly situated distributors of IDP Service or OGX Service, as applicable, in similar customer segments and geographies. |
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ORBCOMM and Inmarsat shall meet at least annually to discuss potential joint development of the IDP Technology on a mutually desirable and efficient basis. Neither Party shall take any action or modify the IDP Technology or (in the case of Inmarsat) the IDP/OGX network infrastructure (other than in an emergency scenario) that could reasonably be expected to cause a material number of fielded units under seven and one-half (7.5) years to be inoperable or adversely affected in any material respect. Fielded units for which a successful fix can be provided with an over-the-air update will not be deemed to be inoperable or adversely affected in any material respect. |
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Section 4.2 |
Subject to Clause 4.1, and unless agreed otherwise in writing, ORBCOMM and Inmarsat will be under no obligation to make IDP Technology or related Intellectual Property developed as a result of further evolution after the January 1, 2015 available to the other Party. |
Section 4.3 |
4.3.1: Inmarsat shall use commercially reasonable efforts to cover ORBCOMM’s global requirements for IDP Services and, once Commercially Available, OGX Services in accordance with the forecasting procedures set forth in this Section 4.3. 4.3.2: ORBCOMM shall provide Inmarsat with its IDP Services and, once Commercially Available, OGX Services global traffic projections and capacity requirements on a calendar quarter basis (“Forecasts”). Such Forecasts shall be provided three (3) months in advance of each calendar quarter ad broken down by geographic service area. ORBCOMM shall endeavour in good faith to ensure that the Forecasts are based on accurate data and projections. ORBCOMM shall update such Forecasts monthly on a rolling basis and shall notify Inmarsat promptly on becoming aware of any circumstance that may materially alter ORBCOMM’s actual requirements. 4.3.3: At least sixty (6) days prior to the commencement of each calendar quarter, Inmarsat shall notify ORBCOMM whether it can accommodate ORBCOMM’s projected requirements as set forth in the Forecast. Inmarsat shall use commercially reasonable efforts to provide sufficient capacity to meet the Forecast. 4.3.4: In the event Inmarsat is unable to meet ORBCOMM’s capacity requirements in a manner that also meets applicable service level requirements set forth in Schedule 2, Inmarsat agrees to consider in good faith a request from ORBCOMM to temporarily suspend ORBCOMM’s exclusivity obligations under Section 4.4 of this Agreement during such time period, and Inmarsat further agrees not to unreasonably withhold approval of any such request from ORBCOMM. |
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SCHEDULE 2 – SERVICE LEVEL AGREEMENT OR SLA
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PART A - KEY CUSTOMERS
PART B – TOP 10 CUSTOMERS
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WHOLESALE CHARGES TERMS AND CONDITIONS
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SCHEDULE 6 – IDP AND OGX TECHNICAL ANNEX
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