Document:

Exhibit 10.2
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INCREMENTAL FACILITY AGREEMENT AND AMENDMENT
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THIS INCREMENTAL FACILITY AGREEMENT AND AMENDMENT, dated as of June 30, 2020 (this “Agreement”), is by and among PROSIGHT GLOBAL, INC., a Delaware corporation (the “Borrower”), each other Loan Party signatory hereto, TRUIST BANK, as Administrative Agent (the “Administrative Agent”), each of the Incremental Revolving Lenders (as defined herein) and each other Lender party hereto.
W I T N E S S E T H:
WHEREAS, the Borrower, the lenders party thereto (together with any other lender who becomes a Lender thereunder pursuant to the terms thereof, the “Lenders”) and the Administrative Agent entered into that certain Credit Agreement dated as of June 12, 2020 (the “Credit Agreement”);
WHEREAS, pursuant to Section 2.23 of the Credit Agreement, the Borrower may request Incremental Commitments in accordance with the terms and conditions thereof;
WHEREAS, the Borrower has notified the Administrative Agent of (i) its request for Incremental Revolving Commitments pursuant to such Section in an aggregate principal amount equal to $65,000,000 to be used in accordance with Section 5.9 of the Credit Agreement and (ii) its desire to make certain amendments to the Credit Agreement;
WHEREAS, certain Persons party to this Agreement (such Persons, the “Incremental Revolving Lenders”) have indicated their willingness to establish such Incremental Revolving Commitments, and the Lenders have agreed to make certain amendments to the Credit Agreement, in each case, on the terms and subject to the conditions herein; and
WHEREAS, subject to and upon the terms and conditions set forth in this Agreement, the Borrower, the Administrative Agent, the Incremental Revolving Lenders and the other Lenders are willing to enter into this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree as follows:
Section 1.  Definitions.  Except as otherwise defined herein, capitalized terms used herein shall have the meanings ascribed thereto in the Credit Agreement.
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Section 2.  Incremental Revolving Commitments.
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(a)Each Incremental Revolving Lender hereby agrees, severally and not jointly, to provide an Incremental Revolving Commitment to the Borrower on the Incremental Closing Date in an aggregate principal amount equal to the amount set forth opposite such Incremental Revolving Lender’s name on Annex A attached hereto (each an “Incremental Revolving Commitment” and, collectively, the “Incremental Revolving Commitments”), on and subject to the terms set forth herein and in the Credit Agreement.  The Incremental Revolving Commitments shall be deemed to be “Revolving Commitments” as defined in the Credit Agreement for all purposes of the Loan Documents.
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(b)Each Incremental Revolving Lender (i) confirms that a copy of the Credit Agreement and the other applicable Loan Documents, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and make an Incremental Revolving Commitment, have been made available to such Incremental Revolving Lender; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Arrangers or any Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or the other applicable Loan Documents, including this Agreement; and (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto.  Each Incremental Revolving Lender that is not a Lender immediately prior to the effectiveness of this Agreement (if any) acknowledges and agrees that, upon the Incremental Closing Date, such Incremental Revolving Lender shall be a “Revolving Lender” and a “Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all obligations of and shall have all rights and benefits of a Revolving Lender and a Lender thereunder.
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Section 3.  Specific Amendments to Credit Agreement.
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(a)Amendment to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement, Definitions, is hereby amended by adding the following new defined term in the appropriate alphabetical order:
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“Incremental Facility Agreement and Amendment” shall mean that certain Incremental Facility Agreement and Amendment dated as of June 30, 2020 among the Borrower, the Lenders party thereto and the Administrative Agent.
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(b)Amendment to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement, Definitions, is hereby amended by deleting the reference to “Level I”  in (i) the tenth line of the definition of “Applicable Margin” and (ii) the ninth line of the definition of “Applicable Percentage” and by substituting in lieu thereof a reference to “Level VI”.
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(c)Amendment to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement, Definitions, is hereby amended by deleting the proviso at the end of the definition of “Benchmark Replacement” substituting in lieu thereof the following:
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“; provided that, if the Benchmark Replacement as so determined would be less than three-quarters of one percent (0.75%), the Benchmark Replacement will be deemed to be three-quarters of one percent (0.75%) for the purposes of this Agreement.”
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(d)Amendment to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement, Definitions, is hereby amended by amending and restating the definition of “Arrangers” to read as follows:
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“Arrangers” shall mean SunTrust Robinson Humphrey, Inc., Citizens Bank, N.A., Regions Capital Markets, a division of Regions Bank, and KeyBank National Association, in their capacity as joint lead arrangers and joint bookrunners.
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(e)Amendment to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement, Definitions, is hereby amended by adding the following poviso at the end of the definition of “Unadjusted Benchmark Replacement”:
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“; provided that, if the Unadjusted Benchmark Replacement as so determined would be less than three-quarters of one percent (0.75%), the Unadjusted Benchmark Replacement will be deemed to be three-quarters of one percent (0.75%) for the purposes of this Agreement.”
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(f)Amendment to Section 2.23(a) of the Credit Agreement.  Section 2.23(a) of the Credit Agreement, Increase of Commitments; Additional Lenders, is hereby amended by deleting clause (i) thereof and substituting in lieu thereof the following:
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“(i)the aggregate principal amount of all such Incremental Commitments made pursuant to this Section shall not exceed $50,000,000 (the principal amount of each such Incremental Commitment, the “Incremental Commitment Amount”); provided that this clause (i) shall be calculated by excluding any Incremental Revolving Commitments that are provided pursuant to the terms of the Incremental Facility Agreement and Amendment;”
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(g)Amendment to Section 5.1(a)(iii) of the Credit Agreement.  Section 5.1(a)(iii) of the Credit Agreement, Borrower Financial Information, is hereby amended by deleting the first three lines thereof and substituting in lieu thereof the following:
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“(iii)concurrently with the delivery of the financial statements referred to in subsections (i) and (ii) of clause (a) of this Section (other than the financial statements for the fourth Fiscal Quarter of each Fiscal Year delivered pursuant to subsection (ii) of clause (a) of this Section), a”
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(h)Amendment to Section 7.1 of the Credit Agreement.  Section 7.1 of the Credit Agreement, Indebtedness, is hereby amended by deleting clause (g) thereof and substituting in lieu thereof the following:
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“(g)other unsecured Indebtedness of the Borrower in an aggregate principal amount not to exceed $100,000,000 at any time outstanding minus (i) the aggregate amount of unreimbursed drawings in respect of letters of credit issued under or pursuant to the Letter of Credit Facilities Agreement minus (ii) the aggregate amount of Incremental Commitments (and related Loans)
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established pursuant to Section 2.23 (excluding therefrom an amount of Incremental Revolving Commitments equal to $35,000,000 that became effective pursuant to the Incremental Facility Agreement and Amendment);”
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Section 4.  Conditions Precedent.  This Agreement, and the Incremental Revolving Commitments, shall become effective as of the date on which the following conditions precedent are satisfied (such date, the “Incremental Closing Date”):
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(a)The Administrative Agent shall have the received each of the following in form and substance satisfactory to the Administrative Agent:
(i)a counterpart of this Agreement duly executed by each of the Loan Parties, the Administrative Agent, the Required Lenders and each of the Incremental Revolving Lenders;
(ii)a certificate from a Responsible Officer of the Borrower, certifying that the applicable conditions set forth in this Section 4 have been satisfied;
(iii)a certificate of each Loan Party, which shall (A) certify that the resolutions of its board of directors, members or other body delivered to the Administrative Agent pursuant to Section 3.1(b)(ii) of the Credit Agreement on the Closing Date have not been amended, supplemented or otherwise modified since delivery thereof on the Closing Date, and such resolutions remain in full force and effect on the Incremental Closing Date, (B) identify by name and title and bear the signatures of the officers of such Loan Party authorized to sign this Agreement and the Loan Documents in connection herewith to which it is a party and (C) certify that none of the organizational documents delivered to the Administrative Agent pursuant to Section 3.1(b)(ii) of the Credit Agreement on the Closing Date have been amended, supplemented or otherwise modified since delivery thereof on the Closing Date, and all such documents remain in full force and effect on the Incremental Closing Date;
(iv)a favorable written opinion of Mayer Brown LLP, counsel to the Loan Parties, requested by the Administrative Agent, in each case addressed to the Administrative Agent and each of the Lenders ((including the Incremental Revolving Lenders) which shall expressly permit reliance by the successors and assigns of the Lenders and the Administrative Agent), and covering such matters relating to the Loan Parties, this Agreement and the Loan Documents as the Administrative Agent shall request;
(v)for each Incremental Revolving Lender that shall have requested a promissory note, a duly completed and executed promissory note for such Incremental Revolving Lender;
(vi)at least 5 Business Days prior to the Incremental Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Patriot Act and, if the Borrower qualifies as a “legal entity 
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customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Borrower.
(b)Upon the effectiveness of this Agreement and the Incremental Revolving Commitments, and both immediately before and immediately after giving effect to this Agreement and the Incremental Revolving Commitments, no Default or Event of Default shall exist.
(c)A duly completed and executed Compliance Certificate, including calculations (and setting forth in reasonable detail such calculations) of the financial covenants set forth in Article VI of the Credit Agreement as of March 31, 2020, demonstrating that the Borrower shall be in pro forma compliance with each of the financial covenants set forth in Article VI of the Credit Agreement as of March 31, 2020, calculated as if all such Incremental Revolving Commitments had been established (and fully funded) as of the first day of such period of measurement for testing compliance.
(d)All fees and expenses due to the Incremental Revolving Lenders required to be paid on the Incremental Closing Date (including the fees and expenses of counsel for the Administrative Agent) shall have been paid.
(e)The representations and warranties in Section 5 of this Agreement shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects).  All of the representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects), and, since December 31, 2019 there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect.
Section 5.  Representations.  Each of the Loan Parties represents and warrants to the Administrative Agent and each of the Lenders (including the Incremental Revolving Lenders) that:
(a)Existence and Power.  Each Loan Party has all requisite power and authority and all requisite licenses, authorizations, consents and approvals to execute, deliver and perform its respective obligations under this Agreement and the other Loan Documents to which it is a party (after giving effect to this Agreement).
(b)Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of this Agreement and each other Loan Document to which such Person is a party (after giving effect to this Agreement), and the consummation of the transactions contemplated by this Agreement, (i) are within such Loan Party’s corporate or other organizational powers, have been duly authorized by all necessary corporate or other organizational action, and (ii)(a) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect, (b) will not violate any Requirement of Law applicable to the 
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Borrower or any of its Subsidiaries or any judgment, order or ruling of any Governmental Authority, (c) will not violate or result in a default under any Contractual Obligation of the Borrower or any of its Subsidiaries or any of its assets or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.
(c)Binding Effect.  This Agreement and each other Loan Document executed in connection herewith has been duly executed and delivered by each Loan Party that is party hereto or thereto.  This Agreement and each other Loan Document executed in connection herewith constitutes a legal, valid and binding obligation of each Loan Party that is party hereto or thereto, enforceable against each Loan Party that is party hereto or thereto in accordance with its respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.
Section 6.  Reaffirmation of Guarantees.  Each Loan Party hereby acknowledges its receipt of a copy of this Agreement and its review of the terms and conditions hereof and consents to the terms and conditions of this Agreement and the transactions contemplated hereby, including the extension of credit in the form of the Incremental Revolving Commitments.  Each Loan Party hereby (a) affirms and confirms its guarantees under the Guaranty Agreement to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full force and effect and (ii) all guarantees under the Guaranty Agreement shall continue to be in full force and effect and shall accrue to the benefit of the Lenders, including the Incremental Revolving Lenders, and (c) acknowledges that from and after the date hereof, all Incremental Revolving Commitments and Revolving Loans thereunder from time to time outstanding shall be deemed to be Obligations.
Section 7.  Expenses and Indemnity.  Section 10.3 of the Credit Agreement is hereby incorporated herein by reference, mutatis mutandis, as if such Section were set forth in full herein.
Section 8.  Certain References.  Upon the effectiveness of this Agreement, each reference to the Credit Agreement in any of the Loan Documents shall be deemed to be a reference to the Credit Agreement as supplemented by this Agreement.
Section 9.  Appointment of Joint Lead Arranger and Joint Bookrunner.  Each of Regions Capital Markets, a division of Regions Bank and KeyBank National Association are hereby appointed by the Borrower as Joint Lead Arrangers and Joint Bookrunners in connection with this Agreement.
Section 10.  Benefits.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.
Section 11. GOVERNING LAW.  THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE 
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CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF THE STATE OF NEW YORK.
Section 12.  Jurisdiction and Consent to Service of Process.
(a) Subject to the last sentence of this clause (a), each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern District of New York, and of the Supreme Court of the State of New York sitting in New York County, Borough of Manhattan, and of any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such District Court or New York state court or, to the extent permitted by applicable law, such appellate court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or any other Loan Party or their respective properties in the courts of any jurisdiction.
(b)Each of the parties hereto irrevocably and unconditionally waives any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in clause (a) of this Section and brought in any court referred to in subsection (a) of this Section.  Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(c)Each party to this Agreement irrevocably consents to the service of process in the manner provided for notices in Section 10.1. of the Credit Agreement.  Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law.
Section 13.  Effect.
(a)Except as expressly set forth in Sections 2 and 3 hereof, the terms and conditions of the Credit Agreement and the other Loan Documents remain unchanged and continue to be in full force and effect.  The amendments and agreements contained in Sections 2 and 3 hereof shall be deemed to have prospective application only.  The Credit Agreement and the other Loan Documents are hereby ratified and confirmed in all respects.  The parties hereto acknowledge, agree and confirm that the Commitments set forth on Schedule II replace Schedule II to the Credit Agreement as of the Incremental Closing Date after giving effect to the effectiveness of this Agreement.
(b)Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Credit Agreement or any of the other Loan
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Documents, or constitute a course of conduct or dealing among the parties.  The Administrative Agent and the Lenders reserve all rights, privileges and remedies under the Loan Documents.
(c)This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter.  This Agreement shall for all purposes be deemed to be a “Loan Document” and an “Incremental Joinder Agreement” under the Credit Agreement and entitled to the benefits thereof.
Section 14.  Further Assurances.  Each Loan Party agrees to take all further actions and execute such other documents and instruments as the Administrative Agent may from time to time reasonably request to carry out the transactions contemplated by this Agreement and all other agreements executed and delivered in connection herewith.
Section 15.  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.  Delivery by facsimile, email or other electronic transmission of an executed counterpart of a signature page to this Agreement shall be effective as delivery of an original executed counterpart of this Agreement.
Section 16.  Amendments and Waivers.  No amendment or waiver of any provision of this Agreement, and no consent to any departure by a Loan Party herefrom, shall be effective unless in writing signed by the Administrative Agent, the Incremental Revolving Lenders and the Borrower, and each such waiver, amendment or consent shall be effective only in the specific instance and for the specific purpose for which given.  To the extent that any notice was required to be delivered or otherwise provided prior to the Incremental Closing Date pursuant to the terms of the Credit Agreement in connection with any of the transactions contemplated by this Agreement, including any notices required pursuant to Section 2.23 of the Credit Agreement, and such notice was not so provided, the parties hereto waive the requirement of such notice.
Section 17.  Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
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Section 18.  Headings.  Headings and captions used in this Agreement are included for convenience of reference only and shall not be given any substantive effect.
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[Signatures on Following Pages]
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IN WITNESS WHEREOF, the parties hereto have caused this Incremental Facility Agreement and Amendment to be duly executed as of the date first above written.
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	/s/ 

	

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	BORROWER:
	PROSIGHT GLOBAL, INC.

		
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		By:
	/s/ Anthony Piszel

			Name:
	Anthony Piszel

			Title:
	CFO

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	OTHER LOAN PARTIES:
	
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	PROSIGHT SPECIALTY INSURANCE GROUP, INC.

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		By:
	/s/ Anthony Piszel

			Name:
	Anthony Piszel

			Title:
	CFO

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		PROSIGHT SPECIALTY MANAGEMENT COMPANY, INC.

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		By:
	/s/ Anthony Piszel

			Name:
	Anthony Piszel

			Title:
	CFO

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		PROSIGHT SPECIALTY INSURANCE BROKERAGE, LLC

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		By:
	/s/ Ricardo Victores

			Name:
	Ricardo Victores

			Title:
	CEO

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Incremental Facility Agreement and Amendment (prosight)

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	TRUIST BANK, as Administrative Agent, 
a Lender and an Incremental Revolving Lender

		
		By:
	/s/ David Fournier

			Name:
	David Fournier

			Title:
	Managing Director

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Incremental Facility Agreement and Amendment (prosight)

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	CITIZENS BANK, N.A. 
as a Lender and an Incremental Revolving Lender

		
		By:
	/s/ Donald A. Wright

			Name:
	Donald A. Wright

			Title:
	SVP

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Incremental Facility Agreement and Amendment (prosight)

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	REGIONS BANK,
as an Incremental Revolving Lender

		
		By:
	/s/ William Soo

			Name:
	William Soo

			Title:
	Director

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Incremental Facility Agreement and Amendment (prosight)

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	/s/ 

	

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	KEYBANK NATIONAL ASSOCIATION
as an Incremental Revolving Lender

		
		By:
	/s/ James Cribbet

			Name:
	James Cribbet

			Title:
	SVP

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Incremental Facility Agreement and Amendment (prosight)

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	/

	

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	CIBC BANK USA,
as an Incremental Revolving Lender

		
		By:
	/s/ Amanda Buzdum

			Name:
	Amanda Buzdum

			Title:
	Relationship Manager

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Incremental Facility Agreement and Amendment (prosight)

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	/

	

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	FIFTH THIRD BANK, NATIONAL ASSOCIATION,
as an Incremental Revolving Lender

		
		By:
	/s/ Joshua Landau

			Name:
	Joshua Landau

			Title:
	Managing Director & Group Head Financial Institutions Group

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Incremental Facility Agreement and Amendment (prosight)

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	/

	

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	BANK OF MONTREAL, CHICAGO BRANCH,
as a Lender (solely with respect to Section 3)

		
		By:
	/s/ Benjamin Mlot

			Name:
	Benjamin Mlot

			Title:
	Director

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Incremental Facility Agreement and Amendment (prosight)

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Annex A
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Incremental Revolving Commitments
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[Omitted pursuant to Regulation S-K Item 601(a)(5)]
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Incremental Facility Agreement and Amendment (prosight)

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SCHEDULE II
Commitment Amounts
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[Omitted pursuant to Regulation S-K Item 601(a)(5)]

Incremental Facility Agreement and Amendment (prosight)Document

Exhibit 10.1
                                                               

April 22, 2020

E-mail Delivery

John Kuo

Re:  Separation Agreement

Dear John:

As we discussed, your employment with Varian Medical Systems, Inc. (“Varian”) will end on May 22, 2020 (“Separation Date”). This letter, if you accept it by signing and returning it to Varian, will constitute the terms of your agreement with Varian on the matters discussed therein (the "Agreement"). Under no circumstances should you sign, date and return this Agreement before your Separation Date. Please read this letter carefully.

1.Transition Period.  For transition purposes, you and Varian have agreed that you will work until your Separation Date to transition your responsibilities. Regardless of whether you sign this Agreement, you will be paid your current rate of salary, less applicable state and federal withholding until your Separation Date. You will receive your final paycheck with all salary and wages due, including any other applicable amounts owed such as accrued and unused vacation time in accordance with applicable law.  

2.Retirement Benefits; Equity and Bonus. Regardless of whether you sign this Agreement:

a. You will remain eligible to earn a pro-rated fiscal year 2020 (“FY20”) bonus, based on (i) the number of days you are employed during the FY20 performance period and (ii) the achievement of FY20 company and individual performance, which will be paid in December 2020 if earned. 

b. All or a portion of each of your unvested equity awards will continue to vest following your Separation Date subject to the terms and conditions of the applicable award agreements, including, but not limited to, the satisfaction of the applicable performance goals in the case of your performance stock unit awards.

c. You will not receive a February 2020 equity grant.

3.Separation Benefits.  In consideration for your signing and accepting the terms of this  
            Agreement, you will receive a lump sum payment that includes the following consideration:

a. $491,356 representing 50 weeks of severance pay, at your current rate of salary, less applicable state and federal withholding amounts.  

b. $19,423 representing the equivalent of the cost of 12 months COBRA coverage less applicable state and federal withholding amounts. You must enroll in COBRA coverage yourself; Varian will not enroll for you. More COBRA information will be provided under separate cover. For the avoidance of doubt, you are not required to use this amount for COBRA coverage.

c. An additional $68,493 cash payment, less applicable state and federal withholding amounts.

d. You will also be eligible for executive outplacement services for 6 months, paid directly by the Company to the outplacement provider. 

The lump sum payment will be paid to you in 2020 no later than the second payroll date following the “Effective Date” of this Agreement, as described below. You agree that the foregoing terms shall constitute the entire amount of monetary consideration provided to you under this Agreement, and that you will not seek any further compensation for any other 

John Kuo
April 22, 2020
Page 2

claimed damage, costs or attorneys’ fees in connection with the matters encompassed in this Agreement. You further agree that this Agreement, all of its terms, and all of the obligations of Varian contained herein are expressly contingent upon the condition that you do not exercise your right of revocation, as described in subparagraph (f) of the “Acknowledgment of Waiver of Claims Under the Age Discrimination in Employment Act” paragraph below.

4.Acknowledgement of Payment of Wages.   In accordance with applicable state law, you will have received your final paycheck which will include a final payment for all wages through your Separation Date.  You acknowledge and represent that, other than the consideration set forth in this Agreement, Varian has paid or provided all salary, wages, bonuses, accrued paid personal leave, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to you, with the exception of payments to which you may have been entitled under written bonus or compensation plans that have future payout dates and reasonable business expenses that you will submit to Varian, or unless otherwise covered by prior agreement. Such requests for reimbursement must be made within thirty (30) days from your Separation Date.  

5.General Release of Claims.  In exchange for the benefits described above, you agree not to sue, or otherwise file any claim against, and fully and unconditionally waive, release and discharge, to the maximum extent permitted by law, Varian and its predecessors, subsidiaries, related entities, officers, directors, shareholders, agents, attorneys, employees, successors or assigns (“the Releasees”) from any and all claims, of any kind whatsoever, whether known or unknown, which you now have or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever, including, without limitation, any and all claims relating to or arising out of your employment relationship with Varian, and the termination of that relationship; any and all claims relating to, or arising from, your right to purchase, or actual purchase of shares of stock of Varian, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967 (ADEA); the Older Workers Benefit Protection Act (OWBPA); the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Immigration Control and Reform Act; any and all claims for violation of the federal or any state constitution or other applicable state laws; any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by you as a result of this Agreement; and any and all claims for attorneys’ fees and costs.

You enter this Agreement on your own behalf and on behalf of your heirs, beneficiaries, successors, representatives, trustees, administrators and assigns.  You represent that you have made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this General Release of Claims section.  You agree that the release set forth in this section shall be and will remain in effect in all respects a complete general release as to the matters released.  This release does not extend to any obligations incurred under this Agreement.  

Nothing in this Agreement is intended to waive claims (i) for unemployment or workers’ compensation benefits, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the date you sign this Agreement, (iii) that may arise after you sign this Agreement, (iv) for reimbursement of expenses under the Company’s expense reimbursement policies and California Labor Code section 2802, (v) for rights, if any to indemnification under any indemnification agreement between you and Varian or under Varian’s certificate of incorporation or bylaws, including coverage under applicable Varian insurance policies such as director & officer insurance and comprehensive liability insurance that may apply to you, each as amended or (vi) which cannot be released by private agreement.  In addition, nothing in this Agreement including but not limited to the release of claims, confidential information, confidentiality, and non-disparagement provisions, (i) waives your right to testify in an administrative, legislative, or judicial proceeding concerning alleged criminal conduct or alleged sexual harassment on the part of the Company, or on the part of the agents or employees of the Company, when you have been required or requested to attend such a proceeding pursuant to a court order, subpoena, or written request from an administrative agency or the legislature, (ii) limits or affects your right to challenge the validity of this Agreement 

John Kuo
April 22, 2020
Page 3

under the Age Discrimination in Employment Act of 1967 ("ADEA”) or the Older Workers Benefit Protection Act of 1990 (“OWBPA”), (iii) prevents you from communicating with, filing a charge or complaint with or from participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, the Securities and Exchange Commission, or any other any federal, state or local agency charged with the enforcement of any laws (each, a “Government Agency”), including providing documents or any other information to any such Government Agency, (iv) limits or affects your right to receive monetary rewards for providing information to any Government Agency under applicable whistleblower provisions, or (v) limits you from exercising rights under Section 7 of the NLRA to engage in protected, concerted activity with other employees.  Although, by signing this Agreement, you are waiving rights to individual relief (including backpay, frontpay, reinstatement or other legal or equitable relief) in any charge, complaint, or lawsuit or other proceeding brought by you or on your behalf by any third party, except for any right you may have to receive a payment or award from a government agency (and not the Company) for information provided to the government agency or otherwise where prohibited.

6.Release of Unknown Claims.  You acknowledge that you are familiar with the provisions of California Code Civil Section 1542, or comparable applicable state statute, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Being aware of the above code section, you hereby expressly waive any rights you may have thereunder, as well as under any other statutes or common law principles of similar effect.

7.Acknowledgment of Waiver of Claims Under the Age Discrimination in Employment Act.  In accordance with the Older Workers Benefit Protection Act, you should be aware of the following:

a.You have the right to consult with an attorney, and are hereby advised in writing, to consult with an attorney of your choice prior to signing this Agreement;

b.You confirm that you have carefully read and fully understand all of the provisions of this Agreement and knowingly and voluntarily agree to all of the terms set forth herein;

c.You are, through this Agreement, waiving and releasing any rights you may have under the ADEA, and that this waiver and release is knowing and voluntary.  

d.You understand that rights or claims under the ADEA that may arise after the date this Agreement is signed, are not waived.

e.You have the opportunity of a full twenty-one (21) days from the date of this Agreement, or the date you were presented with this Agreement, whichever is later, to consider this Agreement before signing it, and if you have not availed yourself of that full time period, you have failed to do so knowingly and voluntarily; and

f.Revocation.  After you accept this Agreement by signing it and returning it to Varian, you have seven (7) days to revoke this Agreement.  If you choose to revoke the Agreement, you must notify Varian of your decision to do so in writing and deliver your written notice to Terilyn Monroe, Senior Vice President, Chief People Officer. You may deliver your revocation notice by email to Terilyn Monroe, by overnight delivery or registered mail, or by any other reasonable method of delivery for receipt within seven (7) days of acceptance. If your revocation is received within seven (7) days of acceptance, this Agreement will not be effective, and you will not receive any Severance Benefits.  

8.Effective Date.  If you do not revoke the Agreement in the manner described above, the Agreement becomes effective on the eighth (8th) day (“Effective Date”) after you returned the signed letter to Varian.  

John Kuo
April 22, 2020
Page 4

9.Confidential/Proprietary Information.  You agree to comply with the terms contained in any agreement you entered into with Varian, including the Proprietary Information and Inventions Agreement, that continue to apply after your employment by Varian ends, including, but not limited to, Varian’s practices, policies, procedures, business and manufacturing processes, trade secrets, patents, products, Research and Development efforts, customer lists, price lists, marketing and sales plans, company financials, employees, vendors and suppliers, other nonpublic information concerning Varian’s business affairs and information that is confidential, proprietary or related to patient health which you obtained during the course of your employment with Varian. 

In accordance, you also confirm that you have returned to Varian all Varian property in your possession, except your iPhone and iPad.

You further agree that, at all times, the terms and contents of this Agreement, and the contents of any negotiations and discussions resulting in this Agreement, shall be maintained as confidential by you, your spouse/domestic partner, your attorney or your accountant, and shall not be disclosed except to the extent required by law or as otherwise agreed to in writing by the Company.

Nothing in this Agreement prohibits you from reporting an event that you reasonably and in good faith believe is a violation of law to the relevant law-enforcement agency (such as the SEC, EEOC, or DOL), from testifying truthfully under oath in any court, arbitration or administrative agency proceeding, from providing truthful information in the course of a government investigation or from cooperating in an investigation conducted by such a government agency. This may include disclosure of trade secret or confidential information within the limitations permitted by the 2016 Defend Trade Secrets Act (DTSA).  You are hereby provided notice that under the  DTSA, (1) no individual will be held criminally or civilly liable under federal or state trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage Act) that (A) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

10.Breach.  In the event that you breach any of your obligations under this Agreement or as otherwise imposed by law, Varian will be entitled to obtain all relief provided by law or equity.  You agree that no promise, inducement or other agreement not expressly contained in this Agreement or referred to in this Agreement has been made conferring any benefit upon you, and that this Agreement, with the sole exception of the agreements referenced in the paragraph titled “Confidential/Proprietary” above, contains the entire agreement between you and Varian with respect to its subject matter, including but not limited to the termination of your employment. You expressly agree that you are not relying on any representations that are not contained in this Agreement.  

11.Cooperation with Varian.  You agree to cooperate fully with Varian in its defense or prosecution of or other participation in any administrative, judicial or other proceeding arising from any charge, complaint, action for protection of intellectual property, or other action which has been or may be filed.

12.Non-disparagement. You agree not to make statements to clients, customers and suppliers of the Releasees or to other members of the public that are in any way disparaging or negative towards Varian or its products and services. This provision does not limit your ability to truthfully participate in any agency, association, board, court or regulatory body investigation or proceeding or to provide truthful information if legally required or compelled by subpoena or applicable law. 

13.Non-Solicitation of Varian Employees.  While employed Varian and for a period of one (1) year after the Separation Date, you will not, directly or through others, solicit any employee or contractor of Varian or any of its subsidiaries to work for you or any third party other than Varian or engage in any activity that would cause any employee or contractor to violate any agreement with Varian or any of its subsidiaries. General advertisements/postings of open positions (which shall not include those made on your personal social media accounts), and engagement with persons in respect to such generally advertised/posted positions, shall not be considered solicitation under this agreement.

John Kuo
April 22, 2020
Page 5

14.Resignation from All Boards, Committees and Officer Positions. You agree to resign from all boards, committees and officer positions of Varian and its subsidiaries and related entities on which you serve, effective as of the Separation Date (or sooner date requested by Varian).

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

16.Choice of Law/Venue. The parties agree that all controversies arising out of this Agreement will be governed by the law of the state of California. The prevailing party in any such action shall be entitled to recover costs and attorney’s fees.

17.Entire Agreement; Amendment. This Agreement sets forth the entire Agreement between you and Varian and supersedes any and all prior oral or written Agreements or understanding between you and Varian concerning the subject matter. This Agreement may not be altered, amended or modified, except by a further written document signed by you and Varian’s Senior Vice President, Chief People Officer.

* * *
If you choose to accept this Agreement, please sign and date it and return it to Terilyn Monroe.

We wish you all the best in your future endeavors.

Sincerely, 

Terilyn J Monroe

Terilyn J. Monroe
Senior Vice President, Chief People Officer

* * *

By signing this Agreement and returning it to Varian, I acknowledge and represent that:  
(1) I have read, understand and accept the terms and conditions of this Agreement between Varian and me; (2) I have had the opportunity to review the Agreement carefully with an attorney of my choice; and (3) I voluntarily agree to its terms and conditions.

Again, under no circumstances should you sign, date and return this Agreement before your Separation Date.

/s/ John W. Kuo
______________________________________ 
John Kuo

            May 24, 2020
Date:

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