Summary of ORBCOMM INC. - Yahoo! Finance

Entry into a Material Definitive Agreement, Financial Statements and Exhibits

Item 1.01. Entry into a Material Definitive Agreement.

On August 28, 2009, ORBCOMM Inc. ("ORBCOMM") and Space Exploration Technologies Corp. ("SpaceX") entered into a Commercial Launch Services Agreement (the "Agreement") pursuant to which SpaceX will provide launch services (the "Launch Services") using multiple SpaceX Falcon 1e launch vehicles for the carriage into low-Earth-orbit of 18 ORBCOMM second-generation commercial communications satellites currently being constructed by Sierra Nevada Corporation. Under the Agreement, SpaceX will also provide to ORBCOMM satellite-to-launch vehicle integration and launch support services, as well as certain related optional services.

The Agreement anticipates that the Launch Services will be performed between the fourth quarter of 2010 and first quarter of 2014, subject to certain rights of ORBCOMM and SpaceX to reschedule any of the particular Launch Services as needed. The Agreement also provides ORBCOMM the option to procure, prior to each Launch Service, reflight launch services whereby in the event the applicable Launch Service results in a failure due to the SpaceX launch vehicle, SpaceX will provide comparable reflight launch services at no additional cost to ORBCOMM beyond the initial option price for such reflight launch services.

The total price under the Agreement (excluding any options or additional launch services) is $46.6 million, subject to certain adjustments. The amounts due under the Agreement are payable in periodic installments from the date of execution of the Agreement through the performance of each Launch Service. ORBCOMM may postpone and reschedule the Launch Services for any reason at its sole discretion, subject to the payment of certain fees following 12 months of delay for any particular Launch Services. ORBCOMM also has the right to terminate any of the Launch Services subject to the payment of a termination fee in an amount that would be based on the date ORBCOMM exercises its termination right.

A copy of ORBCOMM's press release dated September 3, 2009 announcing the Agreement is filed as Exhibit 99.1 to this Form 8-K and is incorporated by reference into this Item 1.01.