Document:

UNH EX 10.1 9.30.2014

Exhibit 10.1

UnitedHealth Group Incorporated
Summary of Non-Management Director Compensation
(Effective October 1, 2014)

Our compensation and benefit program is designed to compensate our non-employee directors fairly for work required for a company of our size and scope, and align their interests with the long-term interests of our shareholders. Director compensation reflects our desire to attract, retain and use the expertise of highly qualified people serving on the Company’s Board of Directors. The Compensation and Human Resources Committee reviews the compensation level of our non-employee directors on an annual basis and makes recommendations to the Board of Directors. 
The Company uses annual retainers, equity-based compensation, expense reimbursement and other forms of compensation, as appropriate, to attract and retain non-employee directors. 

Cash Compensation - Annual Retainers 
Directors who are not Company employees receive an annual cash retainer of $125,000.  We pay an additional annual cash retainer of $300,000 to the Chair of the Board, an additional annual cash retainer of $25,000 to the Chair of the Audit Committee, an annual cash retainer of $20,000 to the Chair of the Compensation and Human Resources Committee, and additional annual cash retainers of $15,000 to the Chair of the Nominating and Corporate Governance Committee and the Chair of the Public Policy Strategies and Responsibility Committee.
Cash retainers are payable on a quarterly basis in arrears on the first business day following the end of each fiscal quarter, and subject to pro-rata adjustment if the director did not serve the entire quarter.  Under our Directors’ Compensation Deferral Plan (“Director Deferral Plan”), subject to compliance with applicable laws, non-employee directors may elect annually to defer receipt of all or a percentage of their cash compensation. Amounts deferred are credited to a bookkeeping account maintained for each director participant and are distributable upon the termination of the director’s Board service for any reason. Subject to certain additional rules set forth in the Director Deferral Plan, participating directors may elect whether distribution is made in either: 
		
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	an immediate lump sum;

		
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	a series of five or ten annual installments;

		
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	a delayed lump sum following either the fifth or tenth anniversary of the termination of the director’s directorship; or

		
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	pre-selected amounts and on pre-selected dates while the director remains a member of our Board of Directors.

The Director Deferral Plan does not provide for matching contributions by the Company, but our Board of Directors may determine, in its discretion, to supplement the accounts of participating directors with additional amounts. 

Exhibit 10.1

Equity-Based Compensation - Deferred Stock Units and Conversion of Cash Compensation into Deferred Stock Units
Directors who are not Company employees receive equity awards of deferred stock units having an aggregate fair value of $150,000 annually.  These deferred stock units are granted quarterly in arrears on the first business day following the end of each fiscal quarter, and subject to pro-rata adjustment if the director did not serve the entire quarter.  These deferred stock units are immediately vested upon grant.  
Directors may also elect to convert cash compensation into deferred stock units, subject to compliance with applicable laws. The conversion grants are made on the day the cash compensation is otherwise payable to the directors, which is the first business day following the end of each fiscal quarter.  The deferred stock units received in lieu of the cash compensation are immediately vested upon grant. 
The Company pays dividend equivalents in the form of additional deferred stock units on all outstanding vested deferred stock units.  Dividend equivalents are paid at the same rate and at the same time that dividends are paid to Company shareholders.  
A director is required to retain all deferred stock units granted until he or she completes his or her service on the Board of Directors.  Subject to the deferred stock unit award certificate and certain additional rules set forth in the Director Deferral Plan, directors may elect whether issuance of the shares of common stock subject to their outstanding and vested deferred stock units is to be made: 
		
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	immediately upon completion of service on the Board of Directors;

		
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	in a series of five or ten annual installments; or

		
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	following either the fifth or tenth anniversary of the completion of service on the Board of Directors.

Deferred stock units are granted under our 2011 Stock Incentive Plan.

Reimbursement of Director Expenses and Health Care Coverage 
We reimburse directors for any out-of-pocket expenses incurred in connection with service as a director. We also provide health care coverage to incumbent directors who are not eligible for coverage under another group health care benefit program. Health care coverage is provided generally on the same terms and conditions as current employees. Upon retirement from the Board of Directors, current directors may continue to obtain health care coverage under benefit continuation and after lapse of the benefit continuation coverage, under the Company’s post-employment medical plan for up to ninety-six months if they are otherwise eligible. Directors who were not serving on the Board of Directors as of February 2009 and who are not eligible for coverage under another group health care benefit program or Medicare may also receive health care coverage.UNH EX 10.2 9.30.2014

Exhibit 10.2

FIFTH AMENDMENT
OF
UNITEDHEALTH GROUP
EXECUTIVE SAVINGS PLAN
(2004 Statement)

THIS AMENDMENT, made and entered into as of December 20, 2013, by UNITEDHEALTH GROUP INCORPORATED, a Minnesota corporation (“UnitedHealth Group”);
WHEREAS, UnitedHealth Group has established and maintains several nonqualified, deferred compensation programs (the “ESP”) for the benefit of a select group of management or highly compensated employees of UnitedHealth Group and certain affiliates of UnitedHealth Group; and
WHEREAS, said programs are currently embodied in a single document which is effective January 1, 2004, and which is entitled “UNITEDHEALTH GROUP EXECUTIVE SAVINGS PLAN (2004 Statement)” (hereinafter referred to as the “Plan Statement”); and
WHEREAS, the Board of Directors of UnitedHealth Group has delegated to the Compensation and Human Resources Committee of the Board of Directors the power and authority to amend the Plan Statement; and
WHEREAS, the Compensation and Human Resources Committee has further delegated its authority to amend the Plan Statement to the Executive Vice President, Human Capital with the exception of amendments that would materially increase the cost of the ESP, and amendments that are required to be adopted by the Board of Directors or the Compensation and Human Resources Committee in order to comply with the requirements of Section 162(m) of the Internal Revenue Code or Section 16 of the Securities Exchange Act of 1934; and
WHEREAS, the Executive Vice President, Human Capital wishes to amend the Plan Statement to provide that businesses in which UnitedHealth Group owns an interest of at least 50 percent will be treated as “Affiliates” for purposes of determining whether a Participant whose employment is transferred to such an entity has incurred a Separation from Service; and
WHEREAS, the Executive Vice President, Human Capital has determined that such amendments will not materially increase the cost of the ESP, and that none of such amendments are required to be adopted by the Board of Directors or the Compensation and Human Resources Committee in order to comply with the requirements of Section 162(m) of the Internal Revenue Code or Section 16 of the Securities Exchange Act of 1934.
NOW, THEREFORE, BE IT RESOLVED, that the Plan Statement is hereby amended in the following respect:
1.    DEFINITION OF AFFILIATES.  Effective with respect to amounts deferred on and after January 1, 2014, Section 1.2.2 is amended to read as follows:

Exhibit 10.2

1.2.2. Affiliate -a business entity which is not an Employer but which is part of a “controlled group” with the Employer or under “common control” with an Employer, as those terms are defined in section 414(b) and (c) of the Code (applying an eighty percent (80%) common ownership standard except for purposes of determining whether a Participant has incurred a Separation from Service requiring a distribution of the portion of a Participant’s Account attributable to deferred base salary that would otherwise have been paid in 2014 or later, and deferred Incentive Awards and Performance Awards that would otherwise have been paid in 2015 or later, for which purpose a fifty percent (50%) common ownership standard shall be applied in accordance with Treasury Regulation §1.409A-1(h)(3)). A business entity which is a predecessor to an Employer shall be treated as an Affiliate if the Employer maintains a plan of such predecessor business entity or if, and to the extent that, such treatment is otherwise required by regulations under section 414(a) of the Code. A business entity shall also be treated as an Affiliate if, and to the extent that, such treatment is required by regulations under section 414(o) of the Code. In addition to said required treatment, the Executive Vice President, Human Capital may, in his or her discretion, designate as an Affiliate any business entity which is not such a “controlled group,” “common control” or “predecessor” business entity but which is otherwise affiliated with an Employer, subject to such limitations as the Executive Vice President, Human Capital may impose.
		
	2.
	SAVINGS CLAUSE. Save and except as hereinabove expressly amended, the Plan Statement shall continue in full force and effect.

- 2 -Exhibit 10.1 Fifth Amendment to Credit Agreement

EXHIBIT 10.1

Execution Version

FIFTH AMENDMENT TO MULTICURRENCY REVOLVING CREDIT AGREEMENT

This FIFTH AMENDMENT TO MULTICURRENCY REVOLVING CREDIT AGREEMENT (this “Fifth Amendment”) is made and entered into as of the 19th day of September, 2014, by and among LOJACK CORPORATION (“LoJack”), the Subsidiaries listed on Schedule 1 to the Credit Agreement defined below (collectively with LoJack, and together with the other Persons that from time to time become Borrowers pursuant to the provisions of the Credit  Agreement,  the  “Borrowers”),  the  Guarantors  listed  on  Schedule  1  to  the  Credit Agreement (collectively with the other Persons that from time to time become Guarantors pursuant to the provisions of the Credit Agreement, the “Guarantors”), the Lenders listed on Schedule  2  to  the  Credit  Agreement  (collectively,  the  “Lenders”),  CITIZENS  BANK, NATIONAL ASSOCIATION (formally known as RBS Citizens, National Association), as Administrative Agent for itself and each of the other Lenders from time to time party to the Credit Agreement (the “Administrative Agent”) and Lead Arranger, and TD BANK, N.A., as Issuing  Bank.    Capitalized  terms  used  herein  without  definition  shall  have  the  respective meaning assigned to such terms in the Credit Agreement.

WHEREAS, the Borrowers, the Guarantors, the Lenders and the Administrative Agent are party to that certain Multicurrency Revolving Credit Agreement, dated as of December 29, 2009 (as the same may be amended and in effect from time to time, the “Credit Agreement”), pursuant to which the Lenders have extended credit to the Borrowers on the terms set forth therein;

WHEREAS, the Borrowers and the Guarantors have requested certain amendments to the Credit Agreement, including, but not limited to, the extension of the Maturity Date until July 31, 2017; and

WHEREAS, the Administrative Agent and the Required Lenders are willing to make such amendments to the Credit Agreement on the terms set forth herein;

NOW,  THEREFORE,  in  consideration  of  the  foregoing,  and  for  other  good  and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

I.         DEFINITIONS.

Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement.  This Fifth Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

II.       AMENDMENTS TO CREDIT AGREEMENT:

(1)       Amendments to Section 1.1 (Definitions) of the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended as follows:

EXHIBIT 10.1

(a)       The definition of “Applicable Margin” is hereby amended by deleting the table that follows the first paragraph in such definition, and inserting the following in place thereof:

	
					
	Level
	Consolidated Funded Debt to Consolidated EBITDA Ratio
	Applicable Margin For Eurodollar Rate Loans and Standby Letters of Credit
	Applicable Margin For Base Rate Loans
	Commitment Fee

	I
	> 1.75:1
	2.750%
	1.000%
	0.400%

	II
	> 1.25:1 and < 1.75:1
	2.500%
	0.500%
	0.300%

	III
	< 1.25:1
	2.250%
	0.000%
	0.200%

(b)       The definition of “Consolidated EBITDA” is hereby amended by deleting the provisions following clause (b) thereto, beginning with the words “all calculated” and ending with “Required Lenders”, replacing such provisions with the following:

“all calculated for the Borrower and its Subsidiaries in accordance with GAAP on a consolidated basis; provided, however, that for purposes of calculating Consolidated EBITDA for the financial covenant set forth in §10.5 hereof, expenses incurred by the Borrowers and their Subsidiaries relating to the battery quality resolution (including the US “battery assurance notification program”) shall be recognized on a net cash flow basis (rather than an accrual basis).

For the purposes of determining Consolidated EBITDA for the relevant period, the following expenses and/or severance costs may be added to the Consolidated Net Income for such period to the extent otherwise deducted in calculating Consolidated Net Income: (i) an aggregate amount of $5,000,000 for costs incurred in connection with the Brazil Arbitration; (ii) an aggregate amount not to exceed $3,500,000 for costs incurred in 2014 and first quarter 2015 relating to headcount reductions in Canada and the United States and lease termination expenses in Canada; and (iii) an aggregate amount not to exceed $728,000 for expenses relating to the Brazilian ICMS tax dispute settlement.

For the purposes of calculating the financial covenants set forth in Article 10 hereof or otherwise, Consolidated EBITDA may be further adjusted from time to time with the consent of the Required Lenders.”

(c)    The definition of “Debt Service Coverage Ratio” is hereby amended by
deleting it in its entirety, and replacing it with the following:

“Debt Service Coverage Ratio.  Means, with respect to any Person for any period, the ratio of (a) Consolidated EBITDA minus Consolidated Capital Expenditures of such Person for such period (excluding Capital Expenditures made by the Borrowers and their Subsidiaries in an aggregate amount not to exceed $5,000,000 during the term of this Agreement relating to the Borrowers’ one-time investment in a new enterprise resource planning system), minus federal, state, provincial, local and foreign income taxes actually paid during such period, minus Distributions, to (b) the sum of (i) Consolidated Total Interest Expense of such Person plus (ii) the current portion of long-term Indebtedness; provided, however, that any permitted repurchases of Capital Stock made pursuant to Section 9.10 shall not be included in the calculations of this definition.   The current portion of such Indebtedness will mean the principal required to be paid on such Indebtedness during the upcoming 12 month period, but excluding principal payments in respect of the Revolving Credit Loans and any L/C Obligations.”

EXHIBIT 10.1

(d)    The definition  of “Maturity Date” is  hereby amended  by deleting the
reference therein to “July 31, 2015” and inserting the following in place thereof: “July 31,
2017.”

(e)    The following definition of “Fifth Amendment Date” is hereby inserted in
the correct alphabetical position:

“Fifth Amendment Date.  Means September 19, 2014.”

(2)       Amendment to Section 9.10 (No Stock Repurchase) of the Credit Agreement. The proviso set forth in Section 9.10 of the Credit Agreement is hereby amended by deleting the reference therein to “Third Amendment Date” and inserting the following in place thereof: “Fifth Amendment Date”.

(3)       Amendment  to  Section  10.4  (Capital  Expenditures) of the Credit Agreement. Section 10.4 of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

“Reserved.”

III.    CONDITIONS TO EFFECTIVENESS:

This Fifth Amendment shall become effective (the “Fifth Amendment Date”) upon (i) receipt by the Administrative Agent of this Fifth Amendment duly and properly authorized, executed and delivered by each of the respective parties, and (ii) receipt by the Administrative Agent of a Secretary’s Certificate certifying applicable resolutions and updated incumbency with specimen signatures for each officer who is authorized to sign Loan Documents and/or Loan Requests.

IV.    REPRESENTATIONS AND WARRANTIES:

Each of the Borrowers and the Guarantors represents and warrants to the Administrative
Agent and the Lenders as follows:

(1)      The execution, delivery and performance of this Fifth Amendment and the transactions contemplated hereby (i) are within the corporate authority of each Borrower and Guarantor, (ii) have been duly authorized by all necessary corporate proceedings of each Borrower and Guarantor, (iii) do not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any Borrower or Guarantor is subject or any judgment, order, writ, injunction, license or permit applicable to any Borrower or any Guarantor, and (iv) do not conflict with any provision of the governing documents of any Borrower or Guarantor.

(2)       The execution, delivery and performance of this Fifth Amendment (and the Credit Agreement as amended hereby) will result in valid and legally binding obligations of each Borrower and Guarantor enforceable against each of them in accordance with the respective terms and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief or other equitable remedy is subject to the discretion of the court before which any proceeding therefor may be brought.

(3)       The execution, delivery and performance by the Borrowers and the Guarantors of this Fifth Amendment does not require any approval or consent of, or filing with, any governmental agency or authority other than those already obtained, if any.

EXHIBIT 10.1

(4)       The  representations  and  warranties  contained  in  Section  7  of  the  Credit Agreement are true and correct in all material respects (if not qualified as to materiality or Material Adverse Effect) or in any respect (if so qualified) as of the Fifth Amendment Date as though made on and as of the Fifth Amendment Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.

(5)       After giving effect to this Fifth Amendment, no Default or Event of Default under the Credit Agreement has occurred and is continuing.

V.    MISCELLANEOUS:

(1)       Effect of Amendment; Ratification, Etc.  Except as expressly amended hereby or pursuant to the precedent sentence, the Credit Agreement and the other Loan Documents and all documents, instruments and agreements related thereto are hereby ratified and confirmed in all respects and shall continue in full force and effect.  This Fifth Amendment and the Credit Agreement  shall  hereafter  be  read  and  construed  together  as  a  single  document,  and  all references in the Credit Agreement, any other Loan Document or any agreement or instrument related to the Credit Agreement shall hereafter refer to the Credit Agreement as amended by this Fifth Amendment.

(2)       Guarantor Consent.  Each of the undersigned Guarantors has guaranteed all of the Obligations under (and as defined in) the Credit Agreement.   By executing this Fifth Amendment,  each  of  the  undersigned  Guarantors  hereby  absolutely  and  unconditionally reaffirms to the Lenders that such Guarantor’s Guaranty remains in full force and effect and covers all Obligations under the Credit Agreement.  In addition, each of the Guarantors hereby acknowledges  and  agrees  to  the terms  and  conditions  of this  Fifth Amendment  (including, without limitation, the making of the representations and warranties and the performance of the covenants applicable herein).
(3)       Governing Law.   THIS FIFTH AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

(4)      Counterparts.   This Fifth Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which counterparts taken together shall be deemed to constitute one and the same instrument.  This Fifth Amendment, to the extent signed and delivered by means of a facsimile machine or other electronic transmission in which the actual signature is evident, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto, each other party hereto or thereto shall re-execute original forms hereof and deliver them to all other parties.  No party hereto shall raise the use of a facsimile machine or other electronic transmission in which the actual signature is evident to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or other electronic transmission in which the actual signature is evident as a defense to the formation of a contract and each party forever waives such defense.

EXHIBIT 10.1

IN WITNESS WHEREOF, each of the undersigned has duly executed this Fifth
Amendment to Credit Agreement as of the date first set forth above.

BORROWERS:

LOJACK CORPORATION:
                        	
	
	/s/ Casey Delaney

	Name: Casey Delaney

	Title: Vice President, Acting CFO & Treasurer

EXHIBIT 10.1

LOJACK GLOBAL LLC:
                        	
	
	/s/ Casey Delaney

	Name: Casey Delaney

	Title: Vice President, Acting CFO & Treasurer

EXHIBIT 10.1

LOJACK SAFETYNET, INC.:
                        	
	
	/s/ Casey Delaney

	Name: Casey Delaney

	Title: Vice President, Acting CFO & Treasurer

EXHIBIT 10.1

                        

                        	
	
	LENDERS

	 

	CITIZENS BANK, NATIONAL ASSOCIATION (formerly known as RBS Citizens, National Association), as Lender and Administrative Agent

	 

	/s/ Robert Anastasio

	Name: Robert Anastasio

	Title: Senior Vice President

EXHIBIT 10.1

                            
                            	
	
	TD BANK, N.A.,

	as Lender and Issuing Bank

	 

	/s/ William F. Granchelli

	Name: William F. Granchelli

	Title: Senior Vice President

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