Document:

EX_10-4

		

			Exhibit 10.4

		

		
			June 19, 2018
		

		
			 
		

		
			Nord Samuelson
		

		
			54 Stevens Farm Road 
		

		
			Freeport, ME 04032
		

		
			 
		

		
			Dear Nord:
		

		
			As you may know, Cotiviti Holdings, Inc. (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the Company will become a direct or indirect wholly-owned subsidiary of Verscend Technologies, Inc. (“Parent”) or one of its affiliates (the “Merger”). We are pleased to inform you that, in connection with the Merger, the Company has determined that you are eligible to receive a cash bonus in accordance with the terms and conditions set forth in this letter agreement. 
		

			
	
			
				 1.
			Bonus. Subject to your continued employment with the Company or its affiliates through the closing of the Merger (the “Closing”), and your timely execution and non-revocation of a general release of all claims against the Company and its affiliates in the form attached hereto as Exhibit A (the “Release”) no earlier than the date of the Closing (the “Closing Date”) and no later than the 10th day following the Closing Date, the Company will pay you a cash bonus equal to $150,000 (the “Bonus”). The Bonus shall be paid to you in a single lump sum promptly following your timely execution and delivery of the Release but no later than 30 days following the Closing Date. If your employment with the Company or its affiliates is terminated for any reason prior to the Closing Date, your right to the Bonus will be forfeited, you will have no right to receive any portion of the Bonus and the Company will have no further obligations to you under this letter agreement.

			
	
			
				 2.
			Withholding. The Company or its affiliates may withhold from any amount payable under this letter agreement such federal, tax or local taxes as are required to be withheld pursuant to any applicable law or regulation. 

			
	
			
				 3.
			Best Pay Cap.  

			
	
			
				 a.
			

			
	
			
			Notwithstanding any other provision of this letter agreement, in the event that any payment or benefit received or to be received by you (including any payment or benefit received in connection with a termination of your employment, whether pursuant to the terms of this letter agreement or any other plan, arrangement or agreement) (all such payments and benefits being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986 (the “Code” and such excise tax, the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Code Section 280G in such other plan, arrangement or agreement, any cash payments to you shall first be reduced (with any payments that are exempt from Code Section 409A being reduced first), and any noncash payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income and employment taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions 

		 

		

			 

		

		

			 

		

 

	and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise Tax to which you would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

			
	
			
				 b.
			

			
	
			
			All determinations regarding the application of this Section 3 shall be made by an accounting firm or consulting group with nationally recognized standing selected by the Company prior to the date of the applicable change in control (the “280G Firm”).  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which you shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Code Section 280G(b) shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of the 280G Firm, does not constitute a “parachute payment” within the meaning of Code Section 280G(b)(2) (including by reason of Code Section 280G(b)(4)(A)) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of 280G Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Code Section 280G(b)(4)(B), in excess of the “base amount” (as defined in Code Section 280G(b)(3)) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the 280G Firm in accordance with the principles of Code Sections 280G(d)(3) and (4).

			
	
			
				 4.
			Non-Disparagement; Restrictive Covenants. You agree not to disparage the Company or its affiliates (including Parent), or any of the affiliates, officers, directors, employees, shareholders, and/or agents of the Company or its affiliates (including Parent), as applicable, in any manner intended or reasonably likely to be harmful to them or their business, business reputation, or personal reputation. Similarly, the Company and its affiliates (including Parent), and the officers, directors, employees, and shareholders of the Company and its affiliates (including Parent) agree not to disparage you, in any manner intended or reasonably likely to be harmful to you or your business reputation or personal reputation.  In addition, you agree and acknowledge that as consideration for the Bonus, your right to receive and retain the Bonus is subject to and conditioned upon your continued compliance with the restrictive covenants (including without limitation any confidentiality, non-solicitation and non-competition covenants) contained in an employment or similar agreement between you and the Company and/or any of its subsidiaries or affiliates.

			
	
			
				 5.
			Section 409A.  Notwithstanding anything to the contrary herein, no portion of the Bonus shall be paid during the six-month period following your “separation from service” (within the meaning of Code Section 409A) if the Company reasonably determines that paying such amounts at the time or times indicated herein would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six-month period (or such earlier date upon which such amount can be paid under Code Section 409A without resulting in a prohibited distribution, including as a result of your death), you will be paid a lump-sum amount equal to the cumulative amount that would have otherwise been payable to you during such period (without interest).

		
			

		 

 

		

			
	
			
				 6.
			No Right to Continued Employment. Nothing contained in this letter agreement shall (i) confer upon you any right to continue in the employ the Company or its affiliates, (ii) constitute any contract or agreement of employment, or (iii) interfere in any way with the rights of the Company or its affiliates to terminate your employment at any time, for any reason, with or without cause.

			
	
			
				 7.
			Entire Agreement. This letter agreement constitutes the entire and complete agreement between you and the Company and its affiliates with respect to the subject matter hereof and supersedes any and all other agreement or arrangements, whether oral or written, between you and the Company or its affiliates (or any predecessor or representative (including officer, shareholder or director) thereof) with respect to the subject matter hereof. 

			
	
			
				 8.
			Governing Law. This letter agreement shall be administered, interpreted and enforced under the laws of the State of Maine without regard to the conflicts of law principles thereof.

		
			Please indicate your acceptance and acknowledgement of, and agreement to, the foregoing by signing and dating the space provided below for your signature no later than June 20, 2018 (this document will be provided to you via Docusign for your execution). Please retain one fully-executed original for your files.
		

		
			[Signature Page Follows]
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			Cotiviti Holdings, Inc.
		

		
			 
		

		
			 
		

		
			By: 
		

		
			Name: J. Douglas Williams
		

		
			Title:  Chief Executive Officer
		

		
			 
		

		
			 
		

		
			Accepted, Acknowledged and Agreed,
		

		
			 
		

		
			 
		

		
			By: /s/ Nord Samuelson
		

		
			Print Name: Nord Samuelson
		

		
			Date: June 20, 2018
		

		
			

		 

 

EXHIBIT A
		

		
			 
		

		
			This General Release of Claims (“Release”) is entered into as of _________________ (date), between Nord Samuelson (“Executive”) and Cotiviti Holdings, Inc. (the “Company”) effective as of Executive’s signature set forth below (the “Effective Date”). 
		

			
	
			
				 1.
			

			
	
			
			Release and Waiver. As a condition to the effectiveness of the terms of that certain letter agreement dated October 23, 2017, by and between the Company and Executive (the “letter agreement”) and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, Executive, on [his/her] own behalf and on behalf of [his/her] heirs, family members, executors, agents, and assigns, hereby forever fully and irrevocably releases, waives, and discharges each of the Company and its affiliates, and any of their respective parents, subsidiaries, affiliates and/or successors (together with their respective current and former heirs, assigns, agents, directors, officers, employees, consultants, contractors, agents, stockholders and representatives of such entities, and all persons acting by, through, under or in concert with them, or any of them, the “Released Parties”) from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which [he/she] now has or may hereafter have against the Released Parties, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released hereunder include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to Executive’s employment or termination of employment with the Released Parties, or any of them, any alleged breach of any express or implied contract of employment, breach of implied covenant of good faith and fair dealing, breach of public policy, libel, slander, defamation, breach of privacy, wrongful discharge/termination, infliction of emotional distress, or any alleged torts or other alleged legal restrictions on any Released Party’s right to terminate Executive’s employment, and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964 and the Americans With Disabilities Act. Notwithstanding the foregoing, this Release shall not extend to (i) any rights to receive payment of the Bonus in accordance with the letter agreement, (ii) any rights to accrued or vested compensation or benefits Executive may have, if any, under any applicable plan, policy, program, arrangement or agreement of any Releasees, (iii) any rights Executive may have under the Merger Agreement (as defined in the letter agreement), (iv) any rights arising under any contract in writing between Executive and any Releasees existing as of and/or in connection with, and continuing in effect after, the Closing Date (as defined in the letter agreement), unless such contracts were required to be terminated pursuant to the terms of the Merger Agreement, including, without limiting the foregoing, any employment or severance arrangement or (v) to any claims that cannot be waived as a matter of law or Executive’s rights to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator. 

		
			IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, EXECUTIVE IS HEREBY ADVISED AS FOLLOWS:
		

		
			(1)EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;
		

		
			(2)EXECUTIVE HAS 21 DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND
		

		
			

		 

 

		

		
			(3)EXECUTIVE HAS SEVEN DAYS AFTER SIGNING THIS RELEASE TO REVOKE IT, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.
		

			
	
			
				 2.
			

			
	
			
			No Actions. Executive irrevocably agrees to refrain from directly or indirectly asserting any claim or demand or commencing (or causing to be commenced) any suit, action, or proceeding of any kind, in any court or before any tribunal, against any Released Party based upon any Claim. Executive agrees that if [he/she] hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against the Released Parties, or any of them, any of the Claims released hereunder, then [he/she] will pay to the Released Parties, and each of them, in addition to any other damages caused to the Released Parties thereby, all attorneys’ fees incurred by the Released Parties in defending or otherwise responding to said suit or Claim. Executive further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Released Parties, or any of them, who have consistently taken the position that they have no liability whatsoever to Executive.

			
	
			
				 3.
			

			
	
			
			Representations and Warranties. Executive represents and warrants that there has been no assignment or other transfer of any interest in any Claim which [he/she] may have against the Released Parties, or any of them, and Executive agrees to indemnify and hold the Released Parties, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Released Parties, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Released Parties against Executive under this indemnity. 

			
	
			
				 4.
			

			
	
			
			Liability. Executive further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Released Parties, or any of them.

		
			 
		

			
	
			
				 5.
			

			
	
			
			Severability. The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

		
			 
		

			
	
			
				 6.
			

			
	
			
			Governing Law. This Release shall in all respects be governed and construed in accordance with the laws of the State of Maine, including all matters of construction, validity and performance, without regard to conflicts of law principles.

		
			 
		

		
			 
		

		
			IN WITNESS WHEREOF, Executive has executed this Release as of ______________ (date).
		

		
			 
		

		
			 
		

		
			___________________________
		

		
			Nord SamuelsonEX_10-5

		

			Exhibit 10.5

		

		

			 

		

		

			 

		

		
			 
		

		
			 
		

		
			June 6, 2018
		

		
			 
		

		
			Adrienne Calderone 557 Belden Hill Rd Wilton, CT 06897
		

		
			 
		

		
			RE: Project Rey – Retention Dear Adrienne,
		

		
			We recognize that the recent activity involving a potential sale of Cotiviti (the “Company”) may cause concern for you. The decision to undertake this process was made after careful consideration by the Board of Directors who believe it to be in the best interest of the Company. The timeframe for reaching an agreement with a buyer and working through planning activities prior to transaction close is not definitive, and there are variables in the process that could potentially lengthen the timeframe. In recognition of these factors, we have developed a program to retain our critical talent during this period of uncertainty.
		

		
			 
		

		
			With your execution of this letter and adherence to its terms, you will be eligible for the following:
		

		
			 
		

		
			Retention Bonus
		

		
			 
		

		
			You will receive a one-time cash payment of $85,000, less applicable withholdings and deductions (the “Retention Bonus”). The Retention Bonus will be paid within fifteen (15) days after the earlier to occur of:
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Nine (9) months following the transaction close date; or

			
	
			
				 ·
			

			
	
			
			Termination of your employment without cause, as determined by the Company.

		
			Payment of the Retention Bonus is conditioned upon (i) your remaining an employee of the Company or its affiliate in good standing through the date of payment of such Retention Bonus, (ii) your continued satisfactory performance of the tasks and responsibilities assigned to you consistent with your position through the date of payment of such Retention Bonus, and (iii) if the payment of your Retention Bonus is triggered by termination of your employment without cause, your execution and non-revocation of an effective release of claims in a form prescribed by the Company. You will forfeit your Retention Bonus if you fail to satisfy the foregoing conditions, as determined by the Company.
		

		
			 
		

		
			If the Company’s Board of Directors (the “Board”) ultimately determine not to proceed with a transaction at this time, you are eligible to receive 50% of the Retention Bonus. In this event, the resulting amount will be paid three (3) months following the date on which the Board determines not to proceed with a transaction. Such payment is conditioned upon your remaining an employee in good standing with the Company through the date of payment.
		

		
			 
		

		
			

		 

 

		

			

		

			Adrienne Calderone June 6, 2018

		

		

		

		
			 
		

		
			 
		

		
			 
		

		
			You will forfeit your Retention Bonus if you fail to satisfy the foregoing conditions, as determined by the Company.
		

		
			 
		

		
			Severance
		

		
			 
		

		
			You are currently eligible for benefits under the Company’s U.S. Severance Plan (the “Severance Plan”), and will remain so unless one of the identified circumstances described in the Severance Plan renders you ineligible (please refer to the Severance Plan SPD on Benefits Central for more information).
		

		
			 
		

		
			Under the Severance Plan, you are eligible to receive two weeks of base pay for each completed year of service with the Company. Based on your current position, you are eligible for minimum severance of 10 weeks of base pay under the Severance Plan if you experience a severance-eligible termination.
		

		
			 
		

		
			In addition to your existing severance protection, if you become entitled to severance benefits under the Severance Plan after the date hereof and within one year following the closing of the contemplated transaction, you will receive a severance benefit enhancement of 16 weeks of base pay (the “Severance Enhancement”), which will be added to the weeks of base pay to which you would otherwise be entitled under the Severance Plan. However, in no event will the aggregate number of weeks of base pay that you receive under the Severance Plan and Severance Enhancement exceed the 26 week maximum stated in the Severance Plan.
		

		
			 
		

		
			Except as expressly modified above by the Severance Enhancement, the terms of the Severance Plan in existence on the date hereof (and without regard to any modification or termination of the Severance Plan after the date of this letter) govern all determinations regarding your severance, including whether a termination qualifies for severance, the conditions to and amount of such severance, release requirements associated with such severance and the payment timing of the severance.
		

		
			 
		

		
			Outplacement Services
		

		
			 
		

		
			If you experience a severance-eligible termination between the date that you sign this letter and twelve months following transaction close, you will also be eligible for outplacement services on terms determined by the Company. You will be contacted by the outplacement agency in the event of such a separation. The agency will provide you with information on this benefit.
		

		
			 
		

		
			In addition to the above, any unvested equity awards (e.g., Restricted Stock Units (RSUs), Stock Options, etc.) that you hold will vest upon a change in control of Cotiviti Holdings, Inc., which we expect will occur if a contemplated sale closes. You are encouraged to review your equity award holdings on the E*TRADE website (www.etrade.com).
		

		
			 
		

		
			* * * * * *
		

		
			 
		

		
			

		 

 

		

			

		

			Adrienne Calderone June 6, 2018

		

		

		

		
			 
		

		
			 
		

		
			 
		

		
			All other terms and conditions of your employment will remain in effect until further notice, except as may be specifically modified by this letter. Please note that your employment remains “at will,” meaning either you or the Company have the right to terminate your employment without prior notice at any time and for any reason.
		

		
			 
		

		
			We recognize the potential transaction raises many questions, causes uncertainty, and may distract us from focusing on our business and customers. The elements described above are intended to encourage you to remain with Cotiviti during this period of uncertainty and into the future, and to continue striving towards our business goals. I realize this is a challenging request, but the protections above should provide you with some peace of mind should you be impacted by the transaction. You are critical to Cotiviti during this period.
		

		
			 
		

		
			We request that you treat this letter and the information included herein as confidential, except that you may discuss with your HR VP and Roger Hitt (VP-Total Rewards), or otherwise as required or protected by applicable law.
		

		
			 
		

		
			This letter agreement will be governed by the laws of the State of Delaware without reference to conflicts of laws principles and may be amended only in a writing signed by the parties hereto. This agreement, together with the documents referenced herein, constitutes the entire agreement between the parties with regard to the subject matter contained herein and supersedes any prior agreements related thereto. This agreement may be executed in counterparts, each of which shall be deemed as an original, but all of which together shall constitute one and the same instrument; signed copies of this agreement may be delivered by .pdf, .jpeg or fax and will be accepted as originals.
		

		
			 
		

		
			You will receive this letter via Docusign within four (4) business days after the date of this letter.
		

		
			 
		

		
			Thank you,
		

		
			
		

		
			Doug Williams CEO
		

		
			 
		

		
			

		 

 

		

			

		

			Adrienne Calderone June 6, 2018

		

		

		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			EMPLOYEE ACKNOWLEDGEMENT AND SIGNATURE:
		

		
			I understand and agree to the terms as presented in this letter. By:  
		

		
			Name: Date:  
		

		
			 
		

		
			Attachment: Personalized Pay and Benefits Summary
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			
		

		
			 
		

		
			Personalized Pay and Benefits Summary
		

		
			 
		

		
			 
		

		
			Below is an illustration of pay and benefit values at a point in time, based on the provisions of your letter. This summary assumes that your equity awards vest and employment separation as of the date of this letter. This is just a reference point for your convenience; nothing in the letter or the summary below implies that you will be severed or made redundant in connection with the transaction.
		

		
			 
		

		
			 
		

		
			 
		

			
					
						Unvested Equity*:

					
					
						$439,594

				
	
					
						Retention Bonus:

					
					
						$85,000

				
	
					
						Severance Benefits:

					
					
						$136,407

				
	
					
						TOTAL:

					
					
						$661,001

				

		
			 
		

		
			*Reflects your current unvested equity grants at an assumed price of $34 per share. This stock price is for illustration only. Cotiviti does not make any representations regarding the stock price in the event a transaction is consummated, nor does Cotiviti provide any assurances that a transaction will be consummated. Note that the stock price in a transaction may be significantly higher or lower than this assumed value and the value of your unvested equity would vary correspondingly.
		

		
			 
		

		
			 
		

		
			 
		

		
			While it is not possible to remove all concerns regarding an event like the contemplated sale of Cotiviti, we hope this summary furthers your understanding of the potential value represented by the elements specified in this letter and your unvested equity.

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