Document:

Exhibit

*** indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission.  A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.
        
Exhibit 10.1

May 3, 2018

Mr. Richard Rawson
President, Insperity
19001 Crescent Springs Drive
Kingwood, Texas 77339-3802

Re: Insperity and UnitedHealthcare Health and Dental Agreement Extension

Dear Richard:

I am providing this Letter of Agreement to propose the relevant terms and conditions of the modifications to the existing contracts between United HealthCare Insurance Company (“UnitedHealthcare”) and Insperity Holdings, Inc. (“Insperity”), that we trust you will find agreeable.  Upon execution, this letter and the attached Terms of Agreement (Exhibit A) will constitute a legally binding agreement as to the principal terms of amendments to the Minimum Premium Financial Agreement and the Minimum Premium Administrative Services Agreement, each by and between Insperity and UnitedHealthcare, as amended and restated from time to time (collectively, the “Medical Definitive Agreements”), and the Agreement Regarding Dental Insurance by and between Insperity and UnitedHealthcare, as entered into effective January 1, 2004 (the “Dental Definitive Agreement”), to be prepared and executed by the parties.  The parties anticipate that such amendments shall be completed as soon as possible.  Except as otherwise set forth herein, the terms and conditions of any eventual modifications to the Medical Definitive Agreements and the Dental Definitive Agreement will be only as set forth in any subsequent amendment(s) signed by the parties.  The parties also anticipate that additional impact of PPACA (and potential impact of HIT for 2020 and beyond) and recent state issues may require further negotiations concerning the items addressed herein and the corresponding modifications required to the Medical Definitive Agreements.  

Insperity and UnitedHealthcare acknowledge and agree that the terms and conditions of this letter and the attached Exhibit A relating to the Medical Definitive Agreements, including the existence hereof, are subject to the provisions of Section 5(e) of the Minimum Premium Administrative Services Agreement (relating to publicity of the arrangement).  The parties also agree that the terms and conditions of this letter and the attached Exhibit A relating to the Dental Definitive Agreement, including the existence hereof, are subject to the same confidentiality terms described herein.  As such, Insperity and UnitedHealthcare each agree not to make any unauthorized disclosure or public announcement concerning the subject matter hereof without the written consent of the other.

Thank you again for supporting the extension of our existing relationship through 2022 and the truly outstanding relationship that has been formed over the last 16 years.  We look forward to continued mutual success and the expansion of our relationship.  Please note that UnitedHealthcare has also agreed to *** the *** portion of our fees to *** (*** if *** is *** or above on 12/15/2018) for each Policy effective January 1, 2019, recognizing truly outstanding growth during our current agreement period.  
    
Further *** in the *** portion of our fees will occur if *** is *** and again if *** is *** during our current agreement period.

If this Letter of Agreement and the terms set forth in Exhibit A are in accordance with your understanding of the proposed modifications to our existing contracts, please sign below and return an executed copy to me via email to anthony_r_carr@uhc.com or facsimile at (954) 378-0771.  Should you have any questions, please call me at (954) 378-0596.

Best Regards,                    AGREED TO AND ACCEPTED BY:

/s/ Anthony R. Carr                /s/ Richard G. Rawson

Insperity Holdings, Inc.
Anthony R. Carr                    Richard Rawson
National Vice President,                 President, Insperity 
UnitedHealthcare                    Date:     May 3, 2018        

Exhibit A
UnitedHealthcare/Insperity
Terms of Agreement
May 3, 2018

For consistency, clarity and ease of communication, this Terms of Agreement uses defined terms from both of the Medical Definitive Agreements between Insperity and UnitedHealthcare, which Agreements are hereby amended effective January 1, 2020, unless otherwise indicated. 

UnitedHealthcare (UHC) and Insperity desire to add an additional three years onto the agreement extension executed in 2015 via Letter of Agreement, including annual *** on the *** and dental insurance premium, while also implementing the following provisions to extend the existing agreement through December 31, 2022:

		
	1)
	In keeping with previous agreements, UHC’s suggested language is as follows: "Competitive" means that either (i) the Company and the Employer agree or (ii) an independent consultant chosen by mutual agreement of the parties has determined, that such product ranks either *** or *** as compared to competing products of other vendors in the designated market.  In making any determination of the rank of a product in a market, such consultant shall apply such criteria relating to *** and *** as it shall determine appropriate.  All fees and expenses of any such consultant shall be paid by the Employer.

		
	a.
	The exclusivity provisions shall not apply to any Client of Insperity where a state or municipality requires issuance of small business policies directly to Clients and/or Employees, nor shall it apply to Clients and/or Employees who elect coverage under a federal, state or private exchange.  Insperity and UnitedHealthcare will work together to find mutually agreeable parameters for any Insperity ***.

		
	b.
	Barring *** or ***, existing UHC membership is grandfathered for the remainder of the contractual period from the time a competing carrier is introduced into a market.

		
	c.
	When a new carrier is added to a UHC market, the *** is made at the *** and not the ***.

		
	d.
	If there is a *** to the Company *** network in a Market, if no group health insurance or similar product is offered by the Company in the Market, or if no group health insurance or similar product offered by the Company is Competitive in that Market, the Employer may offer, subject to the existing terms of our agreement, the health insurance or similar products of a Competing Vendor in such market.  Only *** will be introduced into a limited number of Markets, not to exceed *** Markets, through December 31, 2022.  The *** market cap does not apply if changes are *** by *** or ***. 

		
	e.
	*** and *** will remain exclusive markets.  If agreed to by both parties, the exclusivity requirement will be modified if changes are *** by *** or *** (to the extent not previously addressed in subparagraph a, of this section 1). 

		
	f.
	UnitedHealthcare will be the exclusive Vendor for *** coverage offered in the *** markets.  If changes are *** by *** or *** (to the extent not previously addressed in this section 1, subparagraph a): and if agreed to by both parties, the exclusivity requirement can be modified.

		
	g.
	UHC will be notified at least 90 days prior to the introduction of a competing carrier into a market.  

  
		
	2)
	Renew UHC Dental coverage with *** renewal in 2020, *** renewal in 2021, *** renewal *** in 2022.  *** and *** applicable to UHC Dental coverage will continue to be a *** of *** expenses.

		
	3)
	Renew OptumHealth (OH) Care24 w/ Worklife Solutions at *** through 2022.

		
	4)
	*** and *** will continue to be a *** of *** expenses.  

		
	5)
	The "***" shall consist of an *** portion and a *** portion, where *** shall be measured each December 15th and June 15th and shall be the *** that is used to determine the *** and *** for the following six (6) months of the MP Financial Agreement period.  

(A)  The *** portion shall be *** (*** if *** is *** or *** on 12/15/2018) for each Policy period effective January 1st  and July 1st for the 2019, 2020, 2021 and 2022 calendar years.
    
Further *** in the *** portion of our fees will occur if *** is *** and again if *** is *** during our current agreement period.

For the avoidance of doubt, the parties agree that:  (i) the *** portion of the *** for 2019, 2020, 2021 and 2022 shall be *** from the January 1, 2019 starting *** of ***, by *** upon reaching *** of *** and by an additional *** upon reaching *** of ***. Calculation of the *** is defined in Exhibit D of the Minimum Premium Financial Agreement.

(B) The *** portion shall be *** for each Policy period effective January 1st and July 1st for the 2020, 2021 and 2022 calendar years.  In the event that *** below or exceeds the *** thresholds shown in the chart below, the *** will be adjusted accordingly for the 2020, 2021 and 2022 calendar years.  

(C) For the avoidance of doubt, the parties agree that:  (i) for the 2020/2021/2022 calendar year, the *** portion of the *** remains *** when *** exceeds *** but falls below ***.  Calculation of the *** is defined in Exhibit D of the Minimum Premium Financial Agreement. 

(D) The *** portion shall be *** for each *** increase above the *** as measured on 12/15 of the prior plan year or 6/15 of the current year:

2020 - ***
2021 - ***
2022 - ***

The *** portion shall be *** for each *** decrease below the *** as measured on 12/15 of the prior plan year or 6/15 of the current year:

2020 - ***
2021 - ***
2022 - ***ex_118854.htm

Exhibit 10.1

 

Consulting Agreement

 

THIS CONSULTING AGREEMENT (this “Agreement”), effective as of August 1, 2018, is entered into by and between Littelfuse, Inc., a Delaware corporation (the “Company”), and Nathan Zommer (the “Consultant”).

 

WHEREAS, the Consultant currently serves as a member of the Board of Directors of the Company (the “Board”) and previously served as an employee of IXYS, LLC (f/k/a IXYS Corporation), a Delaware limited liability company and wholly owned subsidiary of the Company (“IXYS”), until March 31, 2018 (the “Resignation Date”);

 

WHEREAS, the Consultant has invaluable knowledge and expertise regarding the business of IXYS;

 

WHEREAS, due to the Consultant’s knowledge and expertise, the Company wishes to have the cooperation of, and access to, the Consultant following his ceasing to be employed by IXYS; and

 

WHEREAS, the Company and the Consultant have mutually agreed that the Consultant shall serve as an advisor to the Company on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Consultant hereby agree as follows:

 

1.     Termination of Employment. The parties affirm that, effective as of the Resignation Date, the Consultant ceased to be an employee of the Company, IXYS, and their respective affiliates.

 

2.     Consulting Period. The Consultant shall render the Services (as defined below) for the period beginning on the date hereof and ending on July 31, 2019 (the “Expiration Date”), unless earlier terminated in accordance with Section ☒7, or extended by mutual agreement of the parties hereto (the “Consulting Period”).

 

3.     Title; Services; Office.

 

(a)     Title. During the Consulting Period, the Consultant shall have the title of Senior Advisor to the Company.

 

(b)     Services. During the Consulting Period, the Consultant shall provide general advisory services as reasonably requested by the Chief Executive Officer of the Company (the “Services”), and shall be available to dedicate up to a maximum of 10 hours per week as the Consultant and the Company mutually deem reasonable for the performance of the Services hereunder; provided that, notwithstanding the foregoing, the Company and the Consultant shall use their reasonable best efforts to ensure that the level of the Consultant’s services under this Agreement is consistent with the intent that the Consultant’s termination of employment with the Company constitutes a “separation from service” (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)).

 

 

 

 

(c)     Location; Support Services. The parties agree that the Consultant shall provide the Services remotely, except as may otherwise be determined by the parties from time to time. During the Consulting Period, the Company shall provide the Consultant with reasonable secretarial support in connection with his performance of the Services.

 

4.     Remuneration.

 

(a)     Consulting Fee. In consideration for agreeing to provide the services set forth in Section 3(b), during the Consulting Period, the Consultant shall be paid a fee of $8,333 per month (the “Consulting Fee”), payable in arrears no later than the fifth business day of each calendar month, with the first and last such payments to be prorated as necessary to reflect a period of service that is less than a full month.

 

(b)     Expenses. The Company shall reimburse the Consultant pursuant to the Company’s reimbursement policies for other Senior Advisors as in effect from time to time for reasonable business expenses incurred by the Consultant in connection with the performance of the Services. The Consultant acknowledges and agrees that the Consultant shall not be entitled to expense reimbursements under the Company’s reimbursement policies for active employees.

 

(c)     Benefits. The Consultant acknowledges and agrees that the Consultant shall not be entitled to participate in any benefit plans of the Company, IXYS, or their subsidiaries (other than as set forth in the General Release of Claims, dated March 31, 2018 (the “Separation Agreement”), by and between the Company and the Consultant).

 

5.     Sole Consideration. Except as specifically provided herein, the Consultant shall be entitled to no compensation or benefits from the Company, IXYS, or their respective affiliates with respect to the Services and shall not be credited with any service, age, or other credit for purposes of eligibility, vesting, or benefit accrual under any employee benefit plan of the Company, IXYS, or their respective affiliates.

 

6.     Status as a Nonemployee. The Company and the Consultant acknowledge and agree that, in performing the Services pursuant to this Agreement, the Consultant shall be acting, and shall act, at all times as an independent contractor only and not as an employee, agent, partner, or joint venturer of or with the Company, IXYS, or their respective affiliates. The Consultant acknowledges and agrees that the Consultant is and shall be solely responsible for the reporting and payment of all federal, state, local, and foreign taxes that are required by applicable laws or regulations to be paid with respect to all compensation and benefits payable or provided hereunder, and that no employee of the Company, IXYS or any of their respective affiliates shall provide any tax reporting, payment or other personal administrative services to the Consultant. Except as set forth in the Separation Agreement, the Consultant shall not be eligible to participate in or accrue benefits under any benefit plan sponsored by the Company, IXYS, or their respective affiliates.

 

7.     Termination of Consulting Period.

 

(a)     Termination. Either the Company or the Consultant may terminate the Consulting Period at any time and for any reason (or no reason) by providing the other party with 30 days’ advance written notice of such termination. The termination of the Consulting Period pursuant to this Section 7(a) shall not affect the Consultant’s status as a member of the Board if the Consultant is serving on the Board as of such termination.

 

-2-

 

 

(b)     Payments upon Termination. Upon termination of the Consulting Period for any reason, the Company shall pay to the Consultant any earned but unpaid Consulting Fees for the Services rendered prior to the date of termination and shall reimburse the Consultant for any business expenses incurred prior to such termination and for which the Consultant would be entitled to reimbursement pursuant to Section 4(b).

 

8.     Miscellaneous.

 

(a)     Non-Employee Director Compensation. Notwithstanding anything to the contrary herein, this Agreement shall not impact Consultant’s eligibility to receive compensation (including equity awards) to which he would otherwise be entitled as a non-employee member of the Board.

 

(b)     Successors and Assigns. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, as applicable, the Company and the Consultant and their respective personal or legal representatives, executors, administrators, successors, assigns, heirs, distributees, and legatees. This Agreement is personal in nature and the Consultant shall not, without the written consent of the Company, assign, transfer, or delegate this Agreement or any rights or obligations hereunder.

 

(c)     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to principles regarding the conflict of laws.

 

(d)     Amendment; Entire Agreement. No provision of this Agreement may be amended, modified, waived, or discharged unless such amendment, modification, waiver, or discharge is agreed to in writing and such writing is signed by the Consultant and the Company. From and after the date hereof, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof, except as specifically provided herein.

 

(e)     Notice. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Consultant:

 

At the address most recently on the books and records of the Company.

 

If to the Company:

 

Littelfuse, Inc.

8755 W. Higgins Road, Suite 500

Chicago, Illinois 60631

Attention: General Counsel

 

-3-

 

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.

 

(f)     Headings. The headings of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

(g)     Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

9.     Code Section 409A.

 

(a)     The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

(b)     With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last day of the Consultant’s taxable year following the taxable year in which the expense was occurred.

 

-4-

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written.

 

	
			 

				
			LITTELFUSE, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Ryan K. Stafford  

				
			 

			
	
			 

				
			Name:

				
			Ryan K. Stafford  

				
			 

			
	
			 

				
			Title:

				
			Executive Vice President, Chief Legal

				
			 

			
	 	 	and Chief Human Resources Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ Nathan Zommer	 
	 	Nathan Zommer

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