ORBCOMM 8-K 2008
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Item 1.01. Entry into a Material Definitive Agreement.
On September 30, 2008, ORBCOMM Inc. (the Company) and the U.S. Coast Guard entered into two Amendments of Solicitation/Modification of Contract (Amendment #P12 and Amendment #P13) amending the Validation Services Agreement dated as of May 20, 2004, as amended, by and between the Company and the U.S. Coast Guard (the VSA). The U.S. Coast Guard awarded the VSA to the Company to develop and demonstrate the ability to receive, collect and forward Automatic Identification System (AIS) data over the Companys satellite system. The U.S. Coast Guard has paid the Company the contract price of $7.2 million for the construction and launch of the Coast Guard Demonstration Satellite (the CDS), which has an AIS receiver in addition to the Companys standard communications payload and was launched on June 19, 2008.
A copy of the Companys press release dated October 3, 2008 announcing Amendment #P12 and Amendment #P13 is filed as Exhibit 99.1 to this Form 8-K and incorporated by reference herein.
Pursuant to Amendment #P12, the U.S. Coast Guard exercised the high usage option under the VSA for AIS data from the CDS at a cost of $49,500 per month for the period of September 30, 2008 through August 5, 2009. Amendment #P12 increases the total contract value of the VSA by $377,421 to $8,183,896 over the low usage option during the initial option period after the CDS launch.
Amendment #P13 increases the total contract value of the VSA by an additional $104,600 to $8,288,496 for (1) additional work associated with the Company modifying the AIS satellite software and ground software to include additional AIS message fields and (2) up to 200 additional hours (above the current 200 no-cost hours) of technical support under the VSA for up to 14 months after the CDS launch date.
Item 9.01. Financial Statements and Exhibits.
99.1 Press Release of the Company dated October 3, 2008.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 3, 2008