Document:

Exhibit

Exhibit 10.1

SECOND AMENDED AND RESTATED SERVICES AGREEMENT

This Second Amended and Restated Services Agreement (this "Agreement") is made as of this 4st day of March, 2019, by and among Voya Retirement Insurance and Annuity Company (“VRIAC”), an insurance company organized and existing under the laws of the state of Connecticut, the affiliated insurance companies specified in Exhibit B hereto and certain other affiliated companies specified in Exhibit B hereto.

RECITALS
    
 
    WHEREAS, certain of the parties to this Agreement entered into a Services Agreement (the “Original Agreement”), made January 1, 2001, as amended effective January 1, 2002, December 31, 2007 and October 1, 2008, by and among ING Life Insurance and Annuity Company (now known as VRIAC) and the affiliated insurance companies specified in Exhibit B to the Original Agreement (or successors by merger to such affiliated insurance companies).

WHEREAS, the Original Agreement was amended and restated effective April 1, 2015 (the “2015 Agreement”). 

WHEREAS, the parties hereto wish to enter into this amendment and restatement to the 2015 Agreement, effective March 4, 2019, in order to expand and update the parties to this Agreement, to clarify the allocation and mechanism for payment of amounts owing hereunder related to broker-dealer related activities, to include the provision of cybersecurity and related services and to make certain other revisions to the Agreement.   

WHEREAS, the parties are affiliates under the common control of Voya Financial, Inc.; and

WHEREAS, each party possesses certain resources, including experienced personnel, facilities and equipment, which enables it to provide certain administrative, management, professional, advisory, consulting and other services to the others ("Services"); and

WHEREAS, each party desires from time to time to perform certain Services on behalf of, and receive certain Services from, the others, as described with particularity in Exhibit A attached hereto; and

WHEREAS, each party contemplates that such an arrangement will achieve operating economies, synergies and expense savings, and improve services for its benefit and that of its account owners, policyholders or contractholders, as applicable; and

WHEREAS, the parties wish to identify the Services to be provided, to provide a method for identifying the charges to be assessed and the compensation to be paid for the Services, and to assure that all charges for the Services are reasonable and in accordance with the applicable laws and regulations of the states in which each of them is domiciled;

NOW, THEREFORE, in consideration of these premises and of the mutual promises set forth herein, and intending to be legally bound hereby, the parties agree as follows:

1.    Services.

(a)    Subject to the terms, conditions, and limitations of this Agreement, the party providing a service hereunder ("Service Provider") will perform for the party requesting a service hereunder ("Company") such of the Services 

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described in Exhibit A, attached hereto and incorporated herein by this reference, as the Company may from time to time request.

(b)    The Service Provider shall employ all operating and management personnel necessary to provide the Services required by this Agreement.  The Service Provider shall also maintain such facilities and equipment as it deems reasonably necessary in order to provide the Services required by the Agreement.  Subject to the terms (including any limitations and restrictions) of any applicable software or hardware licensing agreement then in effect between the Service Provider and any licensor, the Service Provider shall, upon termination of this Agreement, grant to the Company a perpetual license, without payment of any fee, in any electronic data processing software developed or used by the Service Provider in connection with the Services provided to the Company, if such software is not commercially available and is necessary, in the Company's reasonable judgment, for the Company to perform the functions provided by the Service Provider hereunder after termination of this Agreement.

(c)    The parties agree that all documents, reports, records, books, files and other materials relative to the Services performed for the Company under this Agreement shall be the sole property of the Company.  The Service Provider shall keep and maintain or cause to be kept and maintained full and complete documentation and records related to the Services provided including the accounting necessary to support charges for Services for no less than the period of time required by applicable law and regulation.  The Service Provider shall maintain custody of said documentation and records and shall make them available to the Company and the appropriate insurance or other regulator of the Company upon request.

2.    Charges for Services.

(a)    It is the intention of the parties that the charges for the Services provided under this Agreement be determined in accordance with fair and reasonable standards and that no party realize a profit nor incur a loss as a result of the Services rendered pursuant to this Agreement.  The parties intend that the provision of Services hereunder shall have no impact on the surplus of the Company.  All funds and invested assets of the Company are the exclusive property of the Company held for the benefit of the Company, and are subject to the control of the Company.  Expenses incurred by the Service Provider and payment received by/from the Service Provider shall be allocated to the Service Provider in conformity with customary insurance accounting practices, consistently applied and in compliance with the National Association of Insurance Commissioner’s Accounting Practices and Procedures Manual.  No Company that is an insurance company and is party to this Agreement shall advance any funds to the Service Provider except to pay for services hereunder.

(b)    The Company agrees to reimburse the Service Provider for all direct costs incurred on behalf of the Company and for all indirect costs, which may be charged to the Company as follows:

(i)    "Direct Costs" include costs incurred by the Service Provider for Services provided directly to the Company, including but not limited to: (a) All costs incident to any employee or employees who are employed in rendering Services to the Company, such as salary, payroll taxes, and benefits and (b) the cost of other reasonable and necessary business expenses incurred by employees who are employed in rendering Services to the Company such as training, travel and lodging.  Direct Costs shall be charged in accordance with reasonable functional cost studies and/or other information and methodologies used by the Service Provider for internal cost distribution including, where appropriate, an analysis of time spent by each employee providing Services to the Company and/or the percentage of administrative systems utilized.  Data for this analysis will be collected through tracking of unit costs of Services, through time studies conducted periodically, or through other methods consistent with customary insurance accounting practices consistently applied.  Annually, the bases for determining direct costs shall be modified and adjusted by mutual agreement of the Service Provider and the Company, where necessary or appropriate, to fairly and equitably reflect the actual cost incurred by the Service Provider on behalf of the Company.

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(ii)    "Indirect Costs" include all other costs incurred by the Service Provider in rendering Services to the Company, including but not limited to the cost of rent or depreciation of office space, utilities, office equipment, and supplies utilized by employees who are employed in rendering Services to the Company.    Indirect costs shall be charged to the Company based on an acceptable allocation methodology in conformity with insurance accounting practices.  

(c)    The charges for Direct Costs and Indirect Costs referred to above shall be made by the Service Provider on a monthly or quarterly basis as appropriate for the particular Service and shall be paid not later than forty-five days following the date of the charge.  Charges paid by any party to the Service Provider may be net of charges for Direct and Indirect Costs charged by such party as Service Provider to the other party.

(d)    In the event the Service Provider or the Company should discover upon review of its accounting by its internal auditors, independent auditor, any state insurance department, or other regulatory agency, that an amount charged for Services provided hereunder was erroneous, the party discovering the error will give prompt notice of such error to the affected party under this Agreement.  Such notice shall contain a description of the accounting error, corrective action and supporting documentation.  Any amounts owing, as a result of the correction shall be paid within sixty (60) days after notice has been given.

(e)    The Company shall have the right to inspect and audit, upon reasonable notice to the Service Provider, all books and records of the Service Provider related to the provision of the Services so as to verify the accuracy of all expenses reimbursed under this Agreement.  As used herein the “books and records” of a party shall be deemed to include all books and records developed or maintained under or related to this Agreement and such books and records are and shall remain the property and subject to the control of such party.

(f)    Voya Services Company shall be the party responsible for the execution of the allocation process for expenses incurred by the parties hereto and facilitating resulting payments among and between the parties hereto, in each case in strict accordance with Section 2(a) above.

3.    Costs Assumed on Behalf of Broker-Dealer 

(a)    Pursuant to Exchange Act Rule 17a-3, the parties hereto acknowledge that a Company registered as a broker or a dealer pursuant to Section 15 of the Securities Exchange Act of 1934 (“Company Broker-Dealer”) will make a record reflecting each expense and corresponding liability incurred relating to its business regardless of whether the liability is joint or several with any entity and regardless of whether a third party has agreed to assume the expense or liability.  Such a Company Broker-Dealer and Service Provider agree that Company Broker-Dealer will record all distribution-related expenses and administrative expenses and liabilities relating to its business on its books and records.  Any expense recorded will be based on allocation methods consistent with Section 2(a) above.  Notwithstanding anything to the contrary contained herein, in no event will any insurance company that is a party to this Agreement assume any expense or liability of another party hereto. 

     Subject to the final sentence of the preceding paragraph, where a Service Provider agrees to assume the costs for Services provided to a Company, such Company will not be obligated to reimburse the Service Provider, and the Service Provider will have no recourse to such Company, for the costs of such services. For any expenses that a Service Provider agrees to assume, the Service Provider and the Company agree to comply with the requirements specified in Section 3 of NASD Notice to Members 03-63 (Oct. 2003) (“NTM 03-63”).    

4.    Term.

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This Agreement shall be effective as of the fourth day of March, 2019, and shall end on the 31st day of December, 2019.  This Agreement shall be automatically renewed on the first day of each calendar year thereafter for a twelve-month period under the same terms and conditions, subject to the provisions for termination set forth herein.

5.    Termination.

This Agreement may be terminated, with or without cause, by the Service Provider or by the Company by providing thirty (30) days' written notice to that effect addressed to the other party.  Each U.S. insurance company that is subject to state insurance holding company act provisions and is a party to the Agreement shall provide notice of termination of the Agreement to its domiciliary state insurance department not later than 30 days after termination of the Agreement.  Any Services provided following the date of termination which, by their nature, continue after termination shall be provided under the same terms and conditions which prevailed at the time of such notice.  No Service Provider shall have an automatic right to terminate this Agreement if the Company is an insurance company that is placed in receivership pursuant to applicable domiciliary state insurance insolvency laws.  Any Services provided following the date of termination which, by their nature, continue after termination shall be provided under the same terms and conditions which prevailed at the time of such notice.

6.    Standard of Service.

The Service Provider shall perform the Services in a competent and professional manner according to standards agreed upon by the Service Provider and the Company.  The Service Provider agrees that it will exercise due diligence to abide by and comply with all laws, statutes, rules, regulations, and orders of any governmental authority in the performance of its Services under this Agreement.  The Service Provider will conduct its business and perform its obligations in a manner which will not cause the possible revocation or suspension of the Company's Certificate(s) of Authority or cause the Company to sustain any fines, penalties, or other disciplinary action of any nature whatsoever.

7.    Limitation of Authority.

The Company shall retain ultimate control and responsibility for all Services that it has delegated to the Service Provider under this Agreement and to the extent that the Company is an insurance company, it will maintain oversight for the Services provided to the Company by the Service Provider and will monitor the Services annually for quality assurance.  In no event shall the Services involve control of the management of the business and affairs of the Company.  The Service Provider shall provide Services hereunder as an independent contractor, and shall act hereunder so as to assure the separate operating identity of the Company.  While rendering Services to the Company pursuant to this Agreement, the Service Provider, its officers and employees shall not at any time or for any purpose be considered agents of the Company unless otherwise expressly agreed to by the parties.  Under no circumstances shall the Services provided pursuant to this Agreement be deemed to be those of a third party administrator pursuant to any applicable state statutes.

8.    Indemnification.

(a)    The Company hereby agrees to indemnify, defend and hold harmless the Service Provider, its officers, directors and employees, from and against any and all claims, demands, losses, liabilities, actions, lawsuits and other proceedings, judgements and awards, and costs and expenses (including reasonable attorneys' fees), arising directly or indirectly, in whole or in part out of any action taken by the Service Provider within the scope of its duties or authority hereunder, excluding only such of the foregoing as result from the negligence or willful acts or omissions of the Service Provider, its officers, directors, agents and employees.  The provisions of this section shall survive termination of this Agreement.

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(b)    The Service Provider hereby agrees to indemnify, defend and hold harmless the Company and its officers, directors and employees from and against any and all claims, demands, losses, liabilities, action, lawsuits and other proceedings, judgments and awards, fines and penalties, and costs and expenses (including reasonable attorneys' fees), arising directly or indirectly, in whole or in part, out of the negligence or any willful act or omission of the Service Provider or of any of its officers, directors, agents or employees, in connection with this Agreement or the performance of the Service Provider's Services hereunder, or out of any action taken by the Service Provider beyond the scope of the Service Provider's duties or authority hereunder.  The provisions of this section shall survive termination of this Agreement.

9.    Notices.

All notices, requests, and communications required or permitted under this Agreement shall be in writing and deemed given when addressed to the applicable address set forth in Exhibit B attached hereto and (i) delivered by hand to an officer of the other party, (ii) deposited with the U.S. Postal Service, as first-class certified or registered mail, postage prepaid, or (iii) deposited with an overnight courier.  Any notice of a change of address shall be given in the same manner.

10.    Cooperation.

Each party to this Agreement shall cooperate with the other party, and with appropriate governmental authorities (including, without limitation, the Securities and Exchange Commission, the National Association of Securities Dealers and state insurance regulators) and shall permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby.

11.    Arbitration.

Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association, and judgment upon the award maybe entered in any Court having jurisdiction thereof.

12.    Waiver.

No waiver of any provision of this Agreement shall be deemed, or shall constitute, waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.  Failure of any party to exercise or delay in exercising any right or power granted under this Agreement shall not operate as a waiver of any such right or power.

13.    Miscellaneous.

This Agreement may not be assigned by either party without the prior written consent of the other party.  This Agreement constitutes the entire agreement of the parties hereto.  Assignment by any party of all or a portion of its rights and obligations under this Agreement to an affiliate will (i) be subject to the state insurance holding company act provisions governing transfers and assignments of the domiciliary state insurance department of each insurance company that is a party to this Agreement and that will either receive services from, or provide services to, such affiliate assignee; (ii) be subject to the state insurance holding company act provisions governing transfers and assignments of the assignor’s domiciliary state, to the extent that the assignor is a U.S. insurance company; and (iii) requires notice of this assignment to the domiciliary state insurance department of any insurance company that is a party to this Agreement to the extent the assignment involves such insurance company. This Agreement may be amended only by a written instrument executed by all parties and with the prior approval of the domiciliary state insurance department of each U.S. insurance company that is a party to this Agreement.  If any portion of 

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this Agreement is invalid under any applicable statute or rule of law, it shall not affect the remainder of this Agreement which shal1 remain valid and binding.  This Agreement shall be binding on the parties, their legal representatives and successors.  This Agreement shall be construed in accordance with and governed by the laws of the state in which the Services are provided, without regard to principles of conflict of laws.

14.    Receivership.

 No party to this Agreement may automatically terminate this Agreement if another party to this Agreement that is a U.S. insurance company (the “Insurance Affiliate”) is placed in receivership or seized by its respective domiciliary state Insurance Commissioner (“Commissioner”) pursuant to applicable domiciliary state insurance receivership statutes.  In the event the Insurance Affiliate is placed in receivership or seized by its domiciliary state Commissioner pursuant to applicable domiciliary state insurance receivership statutes, (i) all of the rights of the Insurance Affiliate, as applicable, under this Agreement will extend to the receiver or the Commissioner, as applicable, and (ii) all books and records related to the Services hereunder will be made available to the receiver or the Commissioner, as applicable, immediately upon request thereby.  The Insurance Affiliate will continue to maintain any systems, programs or other infrastructure notwithstanding a seizure of the Insurance Affiliate by the Commissioner under the applicable domiciliary state insurance receivership statutes, and will make them available to the receiver for as long as the Insurance Affiliate continues to receive timely payment for services rendered.

15.    Entire Agreement.  

This Agreement, as amended from time to time as described herein, represents the entire agreement between the parties.  The parties may, from time to time, enter into additional or other written agreements relating to other aspects of this business relationship.  Such agreements shall be considered part of this Agreement and incorporated by reference.  Neither party shall have any duties or responsibilities other than as specified or incorporated herein by reference.  

16.    Counterparts.

This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

Voya Retirement Insurance and Annuity Company

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

 
 
ReliaStar Life Insurance Company

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

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Security Life of Denver Insurance Company

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Midwestern United Life Insurance Company

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Pen-Cal Administrators, Inc.

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Security Life of Denver International Limited

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Voya Alternative Asset Management LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

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Voya America Equities, Inc.

	
		
	By:
	/s/Laurie J. Rasanen

	Name:
	Laurie J. Rasanen

	Title:
	President and COO, VAE

Voya Financial Advisors, Inc.

	
		
	By:
	/s/Thomas W. Halloran

	Name:
	Thomas W. Halloran

	Title:
	President

Voya Financial Partners, LLC

	
		
	By:
	/s/William Elmslie

	Name:
	William Elmslie

	Title:
	Head of National Intermediary Distribution

Voya Institutional Plan Services, LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Voya Investments Distributor, LLC

	
		
	By:
	/s/Jacob Tuzza

	Name:
	Jacob Tuzza

	Title:
	Managing Director

Voya Investment Management Alternative Assets LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

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Voya Investment Management Co. LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

Voya Investment Management LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

Voya Investment Trust Co.

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

Voya Investments, LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President

Voya Retirement Advisors, LLC

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

Voya Services Company

	
		
	By:
	/s/David S. Pendergrass

	Name:
	David S. Pendergrass

	Title:
	Senior Vice President and Treasurer

    

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LIST OF EXHIBITS

A‐1    Underwriting and New Business Processing Services

A‐2    Licensing and Contracting Services

A‐3    Policyowner/Contractowner and Claims or Other Business Processing Services and
Operational Support

A‐4    Actuarial Services

A‐5    Information Services

A‐6    Cybersecurity Services

A-7    Legal, Risk Management and Compliance Services

A‐8    Human Resource Services

A‐9    Marketing and Sales Promotion Services

A‐10    Tax Services

A‐11    Reinsurance Management and Administration Services

A‐12    Management Services

A‐13    Printing, Record, File, Mail and Supply Services

A-14    Financial Management Services for Retail and Other Customer Products

		
	A-15
	Pricing, Trading, Performance Reporting and Accounting Services for Variable Products

B    Addresses for Notices

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Exhibit A-1

Underwriting and New Business Processing Services

Services related to underwriting for insurance products and new business processes for insurance and non-insurance products including, but not limited to:

1.    Underwriting and risk consulting services.

2.    Analysis of underwriting standards.

		
	3.
	Assistance and advice in the development of appropriate underwriting standards in accordance with all laws and regulations of the Company’s state.

4.    Perform underwriting in accordance with Company guidelines.

5.    Provide medical and/or technical support and advice to underwriting.

6.    Approve for issue all applications which meet underwriting criteria.

7.    Process all approved applications and issue and deliver policies to policyholders.

		
	8.
	Financial and other reporting in connection with underwriting and new business processing.

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Exhibit A-2

Licensing and Contracting Services

Services related to producer licensing and contracting including, but not limited to:

1.    Assist with pre-appointment investigations of producers.

2.    Administer producer licenses, contracts and producer compensation and maintain a computer database for license and contract status.

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Exhibit A-3

Policyowner/Contractowner and Claims or Other Business Processing Services and Operational Support Services

Operational services related to policyowner, contractowner, or account owner and claims or other business processing including, but not limited to:

1.    Bill policyholders or contractowners.

2.    Collect premiums or deposits.

3.    Respond to customer inquiries by phone or letter.

4.    Administer policy or contract changes.

5.    Administration and support for claims or other operational and business processing requests.

6.    Process claims and/or render legal, medical or technical support and advice relating to the processing, settlement and payment of claims.

7.    Surrender, lapse and maturity processing.

8.    Distribute benefits.

9.    Financial and other reporting in connection with policyowner/contractowner/account owner, claims and other business processing services.

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Exhibit A-4

Actuarial Services

Actuarial related services including but not limited to:

1.    Actuarial consulting services, including clerical, technical and product actuarial support and product development support.

2.    Prepare actuarial reports, opinions and memoranda and assist with asset/liability management and cash flow testing.

3.    Conduct product experience studies.

4.    Prepare reserve calculations and valuations.

5.    Develop new products.

6.    Evaluate product performance versus expectations.

7.    Financial and other reporting in connection with actuarial services.

8.    Development and support of actuarial models and corresponding actuarial assumptions.

9.    Governance and oversight of aforementioned actuarial services.

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Exhibit A-5

Information Services

Services related to information management including, but not limited to:

1.    Professional, technical, supervisory, programming and clerical support for information services.

2.    Informational and computer services may be in the nature of applications and programming support, enhancing existing systems, helping to install new systems.

3.    Develop data processing systems strategy.

4.    Implement systems strategy.

5.    Program computers.

6.    Provide data center services, including maintenance and support of mainframe and distribution process hardware and software.

7.    Standard systems for enterprise-wide applications, including, but not limited to: product administration, finance, human resources, operations, legal and compliance.

8.    Manage data and voice communications systems.

9.    Manage local area networks and other desktop software and systems.

10.    Provide data security and maintain effective disaster recovery program.

11.    Purchase hardware, software and supplies.

12.    Provide information security risk management services.

13.    Manage all aspects of production support related to technology applications and services.

14.    Provide program/project management services.

15.    Develop and maintain operational reporting statistics for technology related services.

Subject to the terms (including any limitations and restrictions) of any applicable software or hardware licensing agreement then in effect between Service Provider and any licensor, Service Provider shall, upon termination of this Agreement, grant to Company a perpetual license, without payment of any fee, in any electronic data processing software developed or used by the Service Provider in connection with the Services provided to the Company hereunder if such software is not commercially available and is necessary, in the Company’s reasonable judgment, for the Company to perform subsequent to termination the functions provided by the Service Provider hereunder.

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Exhibit A-6

Cybersecurity Services

Services related to cybersecurity preparedness and information security, including, but not limited to, the following:

		
	1.
	Cybersecurity Policies and Procedures, including but not limited to the following:

		
	a.
	Information security

		
	b.
	Data governance and classification

		
	c.
	Asset inventory and device management

		
	d.
	Access controls and identity management

		
	e.
	Systems operations and availability concerns

		
	f.
	Systems and network security

		
	g.
	Systems and network monitoring

		
	h.
	Systems and application development and quality assurance

		
	i.
	Physical security and environmental controls

		
	j.
	Customer data privacy

		
	k.
	Vendor and third party service provider management

		
	l.
	Risk assessment

		
	m.
	Incident response

		
	2.
	Chief Information Security Officer, responsible for oversight and implementation of cybersecurity program

		
	3.
	Information Asset Management

		
	4.
	Information Classification, Data Privacy and Confidentiality

		
	5.
	Configuration Management

		
	6.
	Operating Procedures and Responsibilities

		
	7.
	Security Awareness and Training

		
	8.
	Cybersecurity Education and Threat Intelligence

		
	9.
	User Access Controls and Access Control Management

		
	10.
	User Access Management / Information Access Restriction

		
	11.
	Employee Workstation and Mobile Device System Security

		
	12.
	Remote Network Access Controls

		
	13.
	Generic Application and Database Security

		
	14.
	Security Event Monitoring 

		
	15.
	Threat and Vulnerability Management

		
	16.
	Security Architecture and Technical State Compliance

		
	17.
	Incident Response

		
	18.
	Risk Assessments

		
	19.
	Cybersecurity Controls, including but not limited to the following:

		
	a.
	Penetration Testing and Vulnerability Assessments

		
	b.
	Audit Trail

		
	c.
	Multi-factor Authentication

		
	d.
	Encryption of Nonpublic Information

		
	e.
	Data Retention

		
	f.
	Remote Access

		
	g.
	Wireless Networks

		
	h.
	Mobile Devices

		
	i.
	Application Security

		
	j.
	Network Security

		
	k.
	Malware Protection

		
	l.
	Training and Monitoring

		
	20.
	Third Party Service Provider Security Due Diligence

		
	21.
	Cybersecurity Insurance

		
	22.
	Cybersecurity Planning and Roadmap

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Exhibit A-7
Legal, Risk Management and Compliance Services

Services related to legal, risk management and compliance including, but not limited to:

1.    Provide counsel, advice and assistance in any matter of law, corporate governance and governmental relations, including advisory and consulting services, in connection with the maintenance of corporate existence, licenses, dealing with regulatory agencies, development of products, contracts and legal documents, product approvals, registration and filing of insurance and securities products, handling of claims and matters involving legal controversy, assist with dispute resolution, select, retain and manage outside counsel and provide other legal services as reasonably required or requested.

2.    Provide assistance in any matter relating to risk management, including procurement of fidelity bond insurance, blanket bonds, general liability insurance, property damage insurance, directors’ and officers’ liability insurance, workers compensation, and any other insurance purchased by the Company.

3.    Assist in the development and maintenance of a corporate compliance program and a state insurance fraud reporting program.  Assist in maintaining appropriate records and systems in connection with the Company’s compliance obligations under application state law.

4.    Provide assistance with internal audit including review of operational procedures, performance of compliance tests, and assist to independent auditors.

5.    Develop and maintain necessary enterprise risk management framework and reporting, including operational risk management, investment management, financial and actuarial risk management, information security risk management and crisis management.

6.    Manage incident response, remediation, and reporting processes
    

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Exhibit A-8

Human Resource Services

Services related to human resource management including, but not limited to:

1.    Personnel recruiting and support services.

2.    Design and implementation of human resources training.

3.    Compensation studies and benefits consulting.

4.    Support employee communications.

5.    Payroll services.

6.    Benefits compensation and design and administration.

7.    Employee relations.

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Exhibit A-9

Marketing and Sales Promotion Services

Services related to marketing and sales promotion including, but not limited to:

		
	1.
	Prepare sales promotional items, advertising materials and artwork, design, text and articles relevant to such work, including clerical, technical and supervisory support and related communications.

2.    Manage all aspects of advertising including but not limited to print, digital, and mass media advertising.

3.    Support general communications with producers.

4.    Conduct formal insurance market and other product market research.

5.    Develop sales illustrations, advertising materials, and software for products, in compliance with applicable state or federal laws.

6.    Design and implement training programs, including product and industry developments and legal compliance.

7.    Distribute to employees and/or agents underwriting guidelines for the products, where applicable.

8.    Analyze and develop compensation and benefit plans for general agents and agents.

9.    Plan and support of producer conferences.
    

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 Exhibit A-10

Tax Services

Services related to tax including, but not limited to:

1.    Maintenance of tax compliance, including tax return preparation and review of financial statement tax provisions.

2.    Management of tax and audit appeals, including processing information requests, protest preparation, and participation in any appeals conference.

3.    Direction of tax research and planning, including research of compliance issues for consistency, development of tax strategies and working with new legislative proposals.

4.    Administration of tax liens, levies and garnishment of wages of Company employees and agents

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Exhibit A-11

Reinsurance Management and Administration Services

Services related to reinsurance management and administration including, but not limited to:

1.    Advise with respect to reinsurance retention limits.

2.    Advice and support with respect to negotiation of reinsurance treaties.

3.    Advice and support with respect to the management of reinsurer relationships.

4.    Provide operational support and reporting for reinsurance relationships.

21

Exhibit A-12

Management Services

Services related to general management including, but not limited to:

1.    Consultative and advisory services to the Company’s senior executive officers and staff with respect to conduct of the Company’s business operations and the execution of directives and resolutions of the Company’s Board of Directors pertaining to business operations and functions, including provision of personnel to serve as officers and directors of Company.

2.    Consultation and participation in the Company’s strategic planning process; the development of business goals, objectives and policies; the development of operational, administrative and quality programs; preparation of financial and other reports; and the coordination of such processes, goals, objectives, policies and programs with those of the holding company.

3.    Advice and assistance with respect to maintenance of the Company’s capital and surplus, the development and implementation of financing strategies and plans and the production of financial reports and records.

4.    Representation of the Company’s interests at government affairs and industry meetings; shareholder and investment analyst meetings; participation in the deliberation and affairs of trade associations and promotion of the Company’s products, relationships and financial performance results with the public and shareholders.

5.    Consultative, advisory and administrative services to the Company’s senior executive officers and staff in respect to development, implementation and administration of human resource programs and policies, the delivery of communications and information to employees regarding enterprise plans, objectives and results; and the maintenance of employee relations, morale and developmental opportunities.

6.    Direction and performance of internal audits and arrangement for independent evaluation of business processes and internal control.

7.    Consultation, development and support of programs designed to enhance operational excellence and drive process improvements, including program management services.  

8.    Provide advice and support for internal and external communications.

22

Exhibit A-13

Printing, Record, File, Mail and Supply Services

Services related to printing, records, files, mail, electronic delivery and supplies including, but not limited to:

Printing, record, file, mail and supply services including, maintaining policy or other customer files, prospectus and other regulatory documents, and marketing material; document control; production and distribution of standard forms, stationary, business cards and other material; arrangement of warehouse storage space; supply fulfillment; mail processing, delivery and shipping; participation in purchasing agreements; retrieval and production of documents for regulatory examinations and litigation; and development and administration of record retention programs.

23

Exhibit A-14

Financial Management Services for Retail and Other Customer Products

Services related to accounting and finance for retail life and annuity products and other customer products, including but not limited to:

		
	1.
	Consultation, technical assistance and oversight in all matters related to financial management and analysis for all retail life and annuity products and other customer products.

		
	2. 
	Coordination of product expense pricing reporting and analysis. 

		
	3.
	Maintenance of financial controls with respect to the balancing and reconciliation of Administrative systems and general ledger suspense accounts.

		
	4.
	Treasury operations, including but not limited to bank reconciliation and disbursement processing.

		
	5. 
	Accounting and reporting for general and separate account products and other customer products, including preparation of general ledgers, transaction ledgers and trial balances.

		
	6.
	Management reporting services, including coordination of the annual planning process and consolidation of monthly and quarterly results.

		
	7.
	Consultation and assistance in coordinating the internal and external audit process.

8.  Provide support as necessary for the preparation of financial statements and reports, including monthly, quarterly and annual financial statements on both a statutory and GAAP basis.

		
	9.
	Maintenance of cost accounting reports and services in support of monthly management reporting, quarterly and annual external reporting, and budgeting. 

		
	10.
	Provide resources and methodologies associated with internal control evaluation and awareness related to financial reporting including but not limited to Sarbanes-Oxley and the National Association of Insurance Commissioners Model Audit Rule. 

24

Exhibit A-15

Pricing, Trading, Performance Reporting and
Accounting Services for Variable Products

Services related to support of day to day pricing, trading, performance reporting and accounting operations for variable products, including but not limited to:

		
	1.
	Pricing.  Collect pricing information (net asset value and ordinary income / capital gain distributions) from Investment Companies, and where applicable, calculate the variable account unit value.  Provide pricing information to the applicable Voya administrative systems / business units and external business partners; pricing calculations for insurance products shall be reported as required by the prospectus for each product.

		
	2.
	Trading.  Collect net trade data from Voya administrative systems, consolidate to a legal entity level per investment option, and submit to Investment Companies; on a daily basis reconcile the shares/trade per Voya to Investment Company; provide to Voya Treasury wire data for the settlement of trades placed.

		
	3.
	Accounting.   Post to ledger the entries supporting the trades and wires processed; entries will include any applicable Variable Annuity Account contract charges; daily reconcile entries posted to ledger/market value to Variable Annuity Account liability/reserve; provide Variable Annuity Account data for the Financials and Insurance Company Schedule D.

		
	4.
	Investment Company Revenue.  Calculate asset based revenue/sub-accounting fees monthly and post accruals to the ledger; collect revenue from investment companies in a timely manner; reconcile amounts received to the estimated calculated, and book actual payments to ledger.

		
	5.
	Performance Reporting.  Calculate product and investment option level returns in accordance with SEC and NASD guidelines; provide returns to Voya applications, web sites, marketing, and field. 

25

EXHIBIT B ‐ VOYA AFFILIATE COMPANIES

	
				
	Name
	Domestic State
	Principal Office
	Principal Mailing Address

	Security Life of Denver
Insurance Company
	Colorado
	8055 East Tufts Avenue, Suite 710
Denver, Colorado 80237
	5780 Powers Ferry Road, N.W.
Atlanta, Georgia 30327-4390

	

	 
	 
	 

	Voya Retirement Insurance and Annuity Company
	Connecticut
	One Orange Way
Windsor, Connecticut 06095
	5780 Powers Ferry Road, N.W.
Atlanta, Georgia 30327-4390

	 
	 
	 
	 

	Midwestern United Life
Insurance Company
	Indiana
	111 Monument Circle, Suite 2700, Indianapolis, Indiana 46204
	5780 Powers Ferry Road, N.W.
Atlanta, Georgia 30327-4390

	 
	 
	 
	 

	Pen-Cal Administrators, Inc.
	California
	One Orange Way
Windsor, Connecticut 06095
	5780 Powers Ferry Road, N.W.
Atlanta, Georgia 30327-4390

	 
	 
	 
	 

	ReliaStar Life Insurance
Company
	Minnesota
	20 Washington Avenue South
Minneapolis, Minnesota 55401
	5780 Powers Ferry Road, N.W.
Atlanta, Georgia 30327-4390

	 
	 
	 
	 

	Security Life of Denver International Limited
	Arizona
	8601 N. Scottsdale Rd, Suite 300, Scottsdale, Arizona 85253
	5780 Powers Ferry Road, N.W.
Atlanta, GA 30327-4390

	 
	 
	 
	 

	Voya Alternative Asset Management LLC
	Delaware
	230 Park Avenue
New York, New York 10169
	230 Park Avenue
New York, New York 10169

	 
	 
	 
	 

	Voya America Equities, Inc.
	Colorado
	One Orange Way
Windsor, Connecticut 06095
	One Orange Way
Windsor, Connecticut 06095

	 
	 
	 
	 

	Voya Financial Advisors, Inc.

	Minnesota
	699 Walnut Street, Suite 1000, preci
Des Moines, Iowa 50309
	20 Washington Avenue
Minneapolis, Minnesota 55401

	 
	 
	 
	 

	Voya Financial Partners, LLC
	Delaware
	One Orange Way
Windsor, Connecticut 06095
	20 Washington Avenue
Minneapolis, Minnesota 55401

	 
	 
	 
	 

	Voya Institutional Plan Services, LLC
	Delaware
	 One Orange Way
Windsor, Connecticut 06095
	One Orange Way
Windsor, Connecticut 06095

	 
	 
	 
	 

	Voya Investments Distributor, LLC
	Delaware
	Suite 100, 7337 E. Doubletree Ranch Road
Scottsdale, Arizona 85258-2034
	Suite 100, 7337 E. Doubletree 
Ranch Road
Scottsdale, Arizona 85258-2034

	

	 
	 
	 

26

	
				
	Voya Investment Management Alternative Assets LLC
	Delaware
	230 Park Avenue
New York, New York 10169
	230 Park Avenue
New York, New York 10169

	

	 
	 
	 

	Voya Investment Management Co. LLC
	Delaware
	230 Park Avenue
New York, New York 10169
	230 Park Avenue
New York, New York 10169

	

	 
	 
	 

	Voya Investment Management LLC
	Delaware
	5780 Powers Ferry Road NW 
Suite 300 
Atlanta, Georgia 30327-4349
	5780 Powers Ferry Road NW 
Suite 300 
Atlanta, Georgia 30327-4349

	

	 
	 
	 

	Voya Investment Trust Co.
	Connecticut
	One Orange Way
Windsor, Connecticut 06095
	One Orange Way
Windsor, Connecticut 06095

	 
	 
	 
	 

	Voya Investments, LLC
	Arizona
	Suite 100, 7337 E. Doubletree Ranch Road
Scottsdale, Arizona 85258-2034
	Suite 100, 7337 E. Doubletree 
Ranch Road
Scottsdale, Arizona 85258-2034

	

	 
	 
	 

	Voya Retirement Advisors, LLC
	New Jersey
	One Orange Way
Windsor, Connecticut 06095
	One Orange Way
Windsor, Connecticut 06095

	 
	 
	 
	 

	Voya Services Company
	Delaware
	5780 Powers Ferry Road NW
Suite 300
Atlanta, Georgia 30327-4349
	5780 Powers Ferry Road NW
Suite 300
Atlanta, Georgia 30327-4349

27ex_143462.htm

Exhibit 10.1

 

Addendum to the employment agreement [No. 2]

 

Att:

Mr. Pascal RONDE

 

On Grenoble, on 2 October, 2018

 

Dear Sir,

 

In your capacity as Senior Vice-President, Global Customer Group, you are directly involved in the good advancement of LTX-Credence's integration within the Cohu group.

 

Your presence within our group is therefore essential to favor the best integration possible considering your experience and your knowledge of the competencies and the company's challenges.

 

Despite the fact that the terms and conditions of your current employment contract with our company, LTX-Credence France, remains applicable, we will however like to offer you the possibility to benefit from a retention incentive, provided that all the cumulative conditions as set forth below are met on 30 November 2020:

 

1.     Your employment contract shall not be suspended on that date, for any cause whatsoever except for a leave of more than 30 cumulative days that started prior than 30 November 2020,

 

2.     You shall not be on notice on this date, and

 

3.     You shall have satisfactorily achieved annual management objectives as defined by the CEO and as approved by the Cohu Compensation Committee, and consistent with Cohu’s Management Incentive Plan ("MIP") for the Fiscal Year 2019 and Fiscal Year 2020 plans. The notion of “Satisfactory achievement” means total attainment that is not less than the average attainment of all other executives participating in the MIP. The terms and conditions of the objectives and the Cohu MIP will be communicated to you in a separate document.

 

Your retention incentive will be constituted by two (2) components:

 

1.     An accelerated vesting, on 30 November 2020, of your then unvested restricted stock units as may be outstanding under the 2010 LTX-Credence Stock Plan or the Cohu, Inc. 2005 Equity Incentive Plan (the “Plans”) , and

 

2.     An exceptional bonus of a gross amount corresponding to six (6) months of your then monthly gross base salary, payable on the first regular pay period after November 30, 2020.

 

Moreover, it has been agreed to initiate discussions as from June 2020 in relation to a potential mutual termination of your employment contract, provided that you would maintain your willingness to leave our company in December 2020.

 

 

 

 

The English version of this agreement is provided for information purposes, solely; in case of differences between the French and English versions, only the French version shall prevail.

 

This agreement shall have no legal effect whatsoever unless and until the Merger with Cohu, Inc. is closed.

 

 

/s/ Luis Müller

                                                     

Luis Müller

President and CEO

Cohu, Inc.

 

I hereby confirm that I accept the terms and conditions of this retention incentive as detailed above.

 

/s/ Pascal Rondé

                                                                    

Pascal Rondé

 

 

 

 

Addendum to the Employment Agreement [No. 1]

 

BETWEEN THE UNDERSIGNED:

 

LTX-Credence France

 

A limited liability corporation, with a share capital of 200,000 euros, the registered office of which is located at 60 rue des Berges, Miniparc Polytec, B®timent Tramontane, 38000 Grenoble, registered with the Commercial Registry of Grenoble under the number 323 859 074.

 

Represented for the purposes hereof by Mr. David Tacelli, duly empowered.

 

Hereinafter referred to as the “Company”,

On the one hand,

 

AND

Mr. Pascal RONDE,

 

Residing at [__________], [__________],

 

Hereinafter referred to as the “Employee”,

 

On the second hand,

 

Together referred to as the “Parties”.

 

WHEREAS:

The Employee has been hired by the Company under an indefinite-term employment agreement dated December 19, 2011 to perform the duties of Vice President, Global Field Operations, with the executive status.

 

The Company proposed to the Employee the position of Senior Vice President, Global Customer Team, which the latter has accepted under terms and conditions defined in this addendum.

 

The Parties agree that the Employee will keep the seniority acquired within the Company as from his hiring date, i.e. January 16, 2012.

 

THE PARTIES HAVE THEREFORE AGREED AS FOLLOWS:

 

ARTICLE 1 – JOB TITLE, FUNCTIONS AND DUTIES

 

1.1. The Employee is employed by the Company in the capacity of Senior Vice President, Sales and Global Customer Team, with the executive status, position III C, coefficient 240.

 

 

 

 

In the frame of the duties assigned to him, the Employee will in particular be in charge of:

• Global sales

• Global business development

• Global applications support

• Global Field Service, including P&L responsibility;

 

and such other duties or tasks within the Employee’s functions and qualifications without same being considered a modification of his Employment Agreement.

 

From a legal standpoint, the employee shall be under the hierarchical supervision of the President of the Company, currently Mr. Michael Goldbach.

 

However, from an operational standpoint, the Employee shall report to David Tacelli, Chief Executive Officer and President of LTX-Credence Corporation, or to any other Manager designated by the Company for this purpose.

 

The Employee shall perform his duties to the best of his ability and shall abide by all policies and procedures of the group, as amended on a regular basis.

 

ARTICLE 2 – DURATION OF AGREEMENT

 

This Addendum will be in force, for an indefinite duration, as of the date hereof.

 

ARTICLE 3 – TERMINATION OF THE EMPLOYMENT CONTRACT

 

• In case of termination or suspension of the Employment Agreement dated December 19, 2011 for whatsoever reason (resignation, dismissal, retirement, long term sick leave, etc.), the Employee shall return to the Company upon his leaving any documents or equipment belonging to the Company.

 

• Moreover, if Employee’s employment is terminated by the Company except in the case of gross or wilful misconduct, the Employee shall be entitled to receive the following, all subject to Employee entering into a settlement agreement with the Company:

(A) a termination indemnity equal to one (1) year of gross base salary as stipulated in Article 4 of the Employment Agreement entered into on December 19, 2011, which indemnity shall be inclusive of the dismissal or retirement indemnity which might be due in accordance with the applicable Collective

Bargaining Agreement;

(B) a pro rata portion of Employee’s targeted annual bonus (referenced in Section 4.2 of the Employment Agreement entered into on December 19, 2011) depending on his presence over the year of his effective departure; and

(C) a gross amount equal to Employee’s targeted annual bonus.

 

 

 

 

ARTICLE 4 – PREVIOUS AGREEMENT

 

This addendum is amending the Articles 1, 3, and 17 of the Employee’s Employment Agreement signed on December 19, 2011.

 

The other provisions of the Employee’s Employment Agreement which are not otherwise modified by the present addendum remain in force and applicable.

 

ARTICLE 5 – GOVERNING LAW – COMPETENT COURT

 

This addendum is governed by French law, both with respect to its performance and its termination. Any dispute relating hereto shall be subject to the exclusive jurisdiction of the French courts.

 

ARTICLE 6 – LANGUAGE

 

The definitive version of this addendum that binds the Parties is the French language version, the English version being provided for information purposes only. In the event of a contradiction between the two versions, the French version shall prevail.

 

In duplicate.

At

On 26/04/2014

 

Bon Pour Accord

 

/S/ David G. Tacelli

                                                                 

For the Company

David Tacelli *

Duly empowered

 

Bon Pour Accord

 

/S/ Pascal Rondé

                                                                 

The Employee

Pascal Rondé *

 

(*) Signature to be preceded by the hand-written words “Bon pour accord” (Valid for an agreement)

 

 

 

 

Employment Agreement

 

BETWEEN THE UNDERSIGNED

 

LTX-Credence France

 

A limited liability corporation, with a share capital of 200,000 euros, the registered office of which is located at 60 rue des Berges, Miniparc Polytec, B®timent Tramontane, 38000 Grenoble, registered with the Commercial Registry of Grenoble under the number 323 859 074.

 

Represented for the purposes hereof by Mr. David Tacelli, duly empowered.

 

Hereafter referred to as the "Company", OF THE FIRST PART,

Mr. Pascal Ronde,

 

Residing at [_____________________], [_____________],

 

Hereafter referred to as the "Employee", OF THE SECOND PART.

 

IT HAS BEEN AGREED AS FOLLOWS:

 

The Company hereby employs the Employee, who accepts, under the general conditions provided by the National Collective Bargaining Agreement of Metallurgy, Engineers and Executives, and under the specific conditions defined hereinafter, subject to the results of the pre-hiring medical exam.

 

ARTICLE 1 - JOB DESCRIPTION

 

The Employee is employed by the Company in the capacity of Vice President, Global Field Operations, with Executive status, position III C, coefficient 240.,●

 

In the frame of the duties assigned to him, the Employee will in particular be in charge of:

 

- Global sales

- Global business development

- Global applications;

 

and such other duties or tasks within the Employee's functions and qualifications without same being considered a modification of his Employment Agreement.

 

From a legal standpoint, the employee shall be under the hierarchical supervision of the President of the Company, currently Mr. Michael Goldbach.

 

However, from an operational standpoint, the Employee shall report to David Tacelli, Chief Executive Officer and President of LTX-Credence Corporation, or to any other Manager designated by the Company for this purpose.

 

The Employee shall perform his duties to the best of his ability and shall abide by all policies and procedures of the group, as amended on a regular basis.

 

 

 

 

ARTICLE 2 - FREEDOM OF EMPLOYMENT

 

The Employee formally declares that he is not bound to any other company, that he has left his previous employer free from all obligations and that he is not presently subject to any non-competition clause whatsoever.

 

Any false statement in this respect would subject the Employee to liability for damages, in particular pursuant to Article L., 1237-3 of the French Labor Code.

 

ARTICLE 3 - DURATION OF AGREEMENT

 

This Employment Agreement is entered into for an indefinite duration as from January 16, 2012.

 

The first four (4) months of actual work shall be considered a trial period, which may be renewed once for three (3) months with the Employee prior written approval, during which either of the parties may terminate the Employment Agreement without indemnities, subject to the notice period provided by the Collective Bargaining Agreement or legal provisions.

 

After the expiration of this trial period, and except in case of gross misconduct, willful misconduct or force majeure, the party who wishes to terminate the Employment Agreement must notify the other party by registered letter with return receipt requested, subject to the notice period provided by the Collective Bargaining Agreement or legal provisions.

 

ARTICLE 4 - REMUNERATION

 

4.1 The Employee shall be paid, in remuneration for his activity, an annual gross base salary of two hundred and seventy thousand Euros (€ 270,000), which shall be paid to him in twelve (12) monthly installments in accordance with the Company's normal procedures.

 

4.2 The Employee, at the discretion of the Company, may also receive an annual bonus, the amount and granting of which will be contingent upon achievement of objectives, which will be calculated according to the modalities defined in the LTX-Credence Corporation Executive Bonus Plan which will be communicated shortly to the Employee.

 

It is expressly agreed between the parties that the Company can unilaterally modify the Employee's targets for each new fiscal year provided that the Employee is informed of his new when they are determined in accordance with the group's procedure.

 

4.3 All the elements of remuneration cited above shall be subject to deduction of the Employee share of social security, supplement retirement, invalidity and death, and unemployment insurance contributions, and C.S.G. and C.R.D.S.

 

4.4 It is expressly agreed that any premium or bonus that may be granted by the Company shall not be part of the remuneration and shall always remain a revocable grant.

 

ARTICLE 5 - PLACE OF WORK

 

The Employee's principal place of work shall be at the registered office of the Company.

 

The parties expressly agree that the place of performance of the Employee's job duties may be changed requiring the Employee to work elsewhere in France in accordance with the needs of the Company, which change may not be considered as a modification of the Employment Agreement. The Employee expressly accepts such provision.

 

In addition, it is expressly understood and agreed that the Employee will have to frequently travel in the framework of the duties assigned to him, in France and abroad.

 

 

 

 

ARTICLE 6 - WORKING TIME

 

It is expressly understood and agreed that the Employee's remuneration, as defined in Article 4 above, which was agreed upon in light of both the special nature of the functions assigned to the Employee and the importance of his responsibilities, will remain independent of the time that the Employee, who benefits from the largest autonomy in the organization of his work time, will devote to the performance of his functions.

 

In light of both his remuneration and the importance of his responsibilities, the Employee shall be considered as a managing executive ("cadre dirigeant") in accordance with the provisions of article L. 3111-2 of the French Labor code and therefore he will not be governed by most of mandatory provisions on working hours.

 

ARTICLE 7 - BUSINESS EXPENSES

 

Travel expenses, hotel expenses, etc., as well as all other professional expenses shall be reimbursed to the Employee, in conformity with the Company's expense reimbursement policy in force at the time the expenses have been made.

 

ARTICLE 8 - COMPANY VEHICLE

 

In accordance with the car policy currently in effect within the Company, the Employee will be granted a gross monthly car allowance of nine hundred Euros (€ 900) in order to cover his automobile expenses, which are related to the use of his personal vehicle for professional reasons. The Employee undertakes to subscribe to an insurance policy and to regularly pay the premiums so that the Company's liability shall never be incurred on the basis of the Employee's use of his personal vehicle.

 

In the event that the Company wishes to abandon the current policy of providing a car allowance, it hereby reserves the right to adopt the system of either the granting of a company car or the reimbursement of automobile expenses on the basis of the automobile expense rates established by the tax administration depending on the actual category of personal vehicle used.

 

ARTICLE 9 - PAID VACATION

 

The Employee shall be entitled to paid vacation as provided by law, the period of which shall be determined by agreement with the Management, taking business requirements into account.

 

All earned and accrued vacation shall be taken no later than the year following the reference year in which it is accrued, except with the Company's written permission.

 

ARTICLE 10 - SICKNESS

 

In case of incapacity to work due to sickness or accident, the Employee shall advise the Company as of the first working day of absence. In addition, the Employee shall be obliged to justify his incapacity by submitting a medical certificate to the Company, at the latest within 48 hours of his absence.

 

 

 

 

ARTICLE 11 – NON COMPETITION

 

In the event this Agreement is terminated by either of the parties, for any reason whatsoever, the Employee expressly undertakes not to enter the service of another firm manufacturing or selling products or services that could compete with those of the Company, to create in France for himself a firm of the same type or to participate directly or indirectly therein in any capacity.

 

For this purpose, the Employee undertakes, in particular, for any product or service that might compete with the Company's products or services, not to visit or contact the Company's clients or to deal with any individual or company that was a client of the Company and with whom the Employee was in contact at any time during the duration of his Employment Agreement.

 

It is expressly agreed that this clause is limited to ( i) a period of one (1) year as from the date of the Employee's actual departure from the Company and (ii) to the companies Teradyne and Advantest anywhere in the world including any entity within both groups and which activity is the same as that of the LTX-Credence group.

 

During this period of non-competition, the Employee will receive a monthly gross indemnity corresponding to 5/1oths or 6/10ths as the case may be, of the gross base monthly salary, calculated on the average of the twelve (12) months preceding the termination of his Agreement, it being understood that this indemnity will be subject to social security contributions.

 

It is agreed that, in any case, the Company shall be entitled to reduce the duration of the period of application of this non-competition clause, or to waive this clause, provided however that it informs the Employee thereof by registered letter with return receipt requested within the eight (8) days following notification of the termination of the Employment Agreement.

 

Given the extreme sensitiveness of the know-how and technical and commercial information to which the Employee has access in the framework of his functions and the extremely competitive nature of the Company’s activities, the parties expressly agree on the necessity of this non-compete obligation in order to protect the Company's legitimate interests.

 

Moreover, the Employee understands that, in light of his training, this provision does not hinder his capacity to find a new position.

 

ARTICLE 12 - EXCLUSIVITY

 

The Employee undertakes to devote all his work time and effort for the exclusive benefit of the Company and he may therefore not exercise any other professional activity throughout the duration of this Employment Agreement without the prior written express approval of a legal representative of the Company.

 

ARTICLE 13 - CONFIDENTIALITY

 

The Employee shall not, directly or indirectly, either during the period of his employment or after the termination of his Employment Agreement, give, procure or supply, in any manner whatsoever, to any person, firm, association or company, the name or address of any client of the Company, or any trade secret or confidential information concerning the business of the Company, its customers, and its personnel, except with the written authorization of a representative of the Company.

 

 

 

 

ARTICLE 14 - NON-SOLICITATION UNDERTAKING

 

The Employee undertakes, for a period of one (1) year as from the date of his actual departure from the Company:

 

	
			-

				
			not to propose to any person who was, at the time of the Employee actual departure or during the twelve (12) months preceding his departure, an employee of the Company, or to attempt by any means, directly or indirectly, to persuade or incite this person to accept another employment or to leave the Company;

			

	
			 

				
			not to hire any person who was an employee of the Company, at the time of the Employee actual departure or during the twelve (12) months preceding this departure, or to have him hired by a third party with whom the Employee has business relations.

			

 

ARTICLE 15 - PENALTY CLAUSE

 

Any violation of the provisions stipulated in Articles 11 (non-competition), 12 (exclusivity), 13 (confidentiality) and 14 (non-solicitation) above shall be sanctioned by the payment of an indemnity at least equal to the remuneration received by the Employee during the last six (6) months of the existence of this Employment Agreement, although the Company reserves the right to prove a greater prejudice and to obtain the cessation of the violation and due compensation by all legal means.

 

ARTICLE 16 - INTELLECTUAL PROPERTY/INVENTIONS

 

In accordance with the provisions of Article L. 611-7 of the French Code of Intellectual Property, if, while performing his duties, which include an inventive mission, or as part of a study or research specifically entrusted to him by the Company, the Employee produces a patentable or non-patentable invention or creates any drawings, models, methods, programs, formulae or processes relating to the activities, projects or research of the Company and which may be protected by law, all intellectual and/or industrial property rights resulting therefrom shall belong to the Company as of right.

 

The Employee further acknowledges that for all the other inventions, created either (i) in the performance of his duties, or (ii) in the field of activity of the Company, or (iii) by using knowledge or technologies or specific methods of the Company or information provided by the Company, the Company is entitled to have assigned the ownership of, or obtain a license to, all or parts of the rights in the patent protecting the invention.

 

However, if the Employee produces an invention or creates any of the items referred to above without any help from the Company, such invention or item being unrelated to the activities, projects or research of the Company, the resulting intellectual and/or industrial property rights shall belong to the Employee.

 

In accordance with the provisions of Articles R. 611-1 and seq. of the Intellectual Property Code, the Employee must promptly inform the Company of any invention made during his Employment Agreement.

 

ARTICLE 17 - TERMINATION OF THE EMPLOYMENT CONTRACT

 

In case of termination or suspension of this Employment Agreement for whatsoever reason (resignation, dismissal, retirement, sick leave, etc.), the Employee shall return to the Company upon his leaving the Company any documents or equipment belonging to the Company.

 

Moreover, if Employee's employment is terminated by the Company except in the case of gross or willful misconduct, the Employee shall be entitled to receive a termination indemnity equal to one (1) year of gross base salary as stipulated in Article 4 of the present Agreement which indemnity shall be inclusive of the dismissal or retirement indemnity which might be due in accordance with the applicable Collective Bargaining Agreement. The payment of such indemnity is subject to the Employee entering into a settlement agreement with the Company.

 

 

 

 

ARTICLE 18 - GOVERNING LAW - COMPETENT COURTS

 

This Employment Agreement is governed by French law, both with respect to its performance and its termination. Any dispute relating hereto shall be subject to the exclusive jurisdiction of the French courts.

 

ARTICLE 19 - LANGUAGE

 

The definitive version of this Agreement that binds the parties is the French language version, the English version being provided for information purposes only. In the event of a contradiction between the two versions, the French version shall prevail.

 

 

 

 

	
			Signed in duplicate.

			At

			On December 19, 2011

			 

			 

			/S/ David G. Tacelli

			                                                              

				 	
			 

			Handwritten: “Read and approved, valid for an

			employment contract.”

			 

			 

			/S/ Pascal Rondé

			 

				 
	
			For the Company

			David Tacelli

			Duly empowered

				 	
			The Employee

			Pascal Rondé *

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