Item 1.01. Entry into a Material Definitive Agreement.
Effective as of September 8, 2021, Molina Healthcare, Inc. (the "Company") has
entered into an amended and restated employment agreement with Joseph M.
Zubretsky, 64, our current President and Chief Executive Officer (the "amended
agreement"). The amended agreement amends and restates the employment agreement
originally entered into by the Company and Mr. Zubretsky on October 9, 2017 (the
"original agreement"), as reported and described in the Company's Form 8-K
current report filed on October 10, 2017.
The amended agreement continues Mr. Zubretsky's employment as President and
Chief Executive Officer of the Company under the same general terms and
conditions as was the case under the original agreement, but updates the
original agreement with regard to unvested equity-based awards that are subject
to performance-based vesting conditions (the "Performance-Based Awards") to
better align the treatment of those Performance-Based Awards with the Company's
subsequently adopted long-term equity-based incentive programs and practices.
If Mr. Zubretsky's employment with the Company terminates due to a termination
without "Cause" or resignation for "Good Reason" (as such terms are defined in
the amended agreement), in addition to his previously provided severance
benefits, any Performance-Based Awards will now vest on a prorated basis,
subject to the achievement then-to-date of the identified performance metrics at
or above the specified threshold level for vesting. Such proration shall be
based on the number of fiscal quarters that have elapsed over the relevant
performance measurement period (typically 12 fiscal quarters) through the fiscal
quarter in which termination occurs, multiplied by the projected final
achievement level of the relevant metric based on straight-line extrapolation to
the end of the full measurement period.
Also, if Mr. Zubretsky's services are terminated without Cause or by Mr.
Zubretsky for Good Reason within 24 months following a Change in Control, in
addition to his existing severance benefits, rather than vesting at target, any
then unvested Performance-Based Awards will vest on his last day of employment
based on the greater of: (i) target performance, and (ii) the projected final
achievement of the performance metric through the measurement period based on
the straight-line extrapolation of actual achievement through the end of the
relevant performance measurement period.
If Mr. Zubretsky elects to voluntarily retire after reaching age 65, and
provided that he gives the Company at least one-year's advance notice of his
intended retirement, upon his retirement, rather than vesting at target, any
then unvested Performance-Based Awards shall likewise vest at the greater of
target and projected final achievement. In the event the Company were to give
Mr. Zubretsky 90 days advance written notice of his termination by the Company
without "Cause," Mr. Zubretsky may elect to exercise his retirement rights
within such 90-day period.
The foregoing description of the amended agreement does not purport to be
complete and is subject to, and qualified in its entirety by, the full text of
the amended agreement. A copy of the amended agreement is being filed as Exhibit
10.1 hereto and is incorporated herein by reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The information set forth in Item 1.01 of this Current Report on Form 8-K is
hereby incorporated into this Item 5.02 by reference.
Item 7.01. Regulation FD Disclosure.
A copy of the press release relating to Mr. Zubretsky's amended agreement is
attached hereto as Exhibit 99.1.
Note: The information furnished herewith pursuant to Item 7.01 of this current
report shall not be deemed to be "filed" for the purpose of Section 18 of the
Exchange Act or otherwise subject to the liabilities of that section, and shall
not be incorporated by reference into any registration statement or other
document filed by the Company under the Securities Act of 1933, as amended, or
the Exchange Act, except as shall be expressly set forth by specific reference
in such filing
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No. Description
10.1 Amended and Restated Employment Agreement, dated September 8,
2021, by and between Molina Healthcare, Inc. and Joseph M.
Zubretsky.
99.1 Press release of Molina Healthcare, Inc., issued September 9,
2021.
104 Cover page information from Molina Healthcare, Inc.' Current Report
on Form 8-K filed on September 9, 2021 formatted in iXBRL (Inline
Extensible Business Reporting Language).
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