a1059071817formofcash_image3.jpg [a1059071817formofcash_image3.jpg]2017-2018
Laureate Executive Cash Long Term Bonus Plan
    

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Form of 2017-2018 Laureate Executive Cash Long Term Bonus Plan

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Prepared for [Name, Title]
Laureate Education Inc.

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Laureate Executive Cash Long Term Bonus Plan
    

Table of Contents
Purpose3
Eligibility3
Incentive Bonus3
Performance Goals3
Adjusted EBITDA4
Timing of Bonus Payments; Continuous Employment4
Additional Information5
Acknowledgement5
Exhibit A6

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Laureate Executive Cash Long Term Bonus Plan
    

Purpose

This Long Term Bonus Plan (“LTB”) is a performance-based incentive plan designed
to maximize results in financial and business areas critical to the success of
Laureate Education, Inc. (together with its affiliates and subsidiaries, the
“Company”) during the two-year period beginning January 1, 2017 and ending
December 31, 2018 (“the Performance Period”). Bonuses will be earned if 1) the
Company achieves or exceeds pre-determined goals based on the criteria described
below and 2) the participant continues to be employed through the date that the
bonus is paid.

This LTB is a one-time incentive and is not intended to be a recurrent plan.

Eligibility

The Compensation Committee of the Company’s Board of Directors approved your
participation in this LTB.

Incentive Bonus

You can earn up to 100% of the award amount set forth below if targeted Laureate
results are attained by the Company and you continue your employment with the
Company through the time that the Performance Award is paid, which is expected
to be in or around March 2019. The total target bonus is [______] USD per year
with an opportunity for up to an additional [______] USD for the second year
portion of the award. The total opportunity is up to [______] USD.

2017 LTB Performance Award
2018 LTB Performance Award
Target: [______]
Target: [______]

 
Performance Goals

You may receive a performance cash award if Laureate exceeds 100% of the
performance criteria targets set forth below.

2017 Adjusted EBITDA Target – Performance Award
Performance Criteria
Source of Target
2017 LTB Adjusted EBITDA Target
% of 2017 Adj. EBITDA Needed to Receive 2017 LTB Bonus
% of Total Bonus Target
Award
[______]
[______]
[______]
[______]
[______]
[______]

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a1059071817formofcash_image3.jpg [a1059071817formofcash_image3.jpg]2017-2018
Laureate Executive Cash Long Term Bonus Plan
    

2018 Adjusted EBITDA Target – Performance Award
Performance Criteria
Source of Target
2018 LTB Adjusted EBITDA Target
% of 2018 Adj. EBITDA Needed to Receive 2018 LTB Bonus
% of Total Bonus Target
Award
[______]
[______]
[______]
[______]
[______]
[______]

2018 Adjusted EBITDA Outperformance
Performance Criteria
Source of Target
2018 LTB Adjusted EBITDA Maximum
Additional Award for Outperformance of 2018 Cash LTB Target
[______]
[______]
[______]
[______]

Adjusted EBITDA

“Adjusted EBITDA” for any fiscal year will have the meaning set forth in Exhibit
A.

If the Company makes an acquisition or disposition of a business or a segment of
a business in any year, the Adjusted EBITDA result for such year and subsequent
years may be adjusted to exclude the financial results from any such acquisition
or to include the prospective forecasted results for any such disposition
consummated during the relevant period.

Timing of Bonus Payments; Continuous Employment

The LTB Performance Award, if paid at all, will be paid as soon as
administratively practicable after December 31, 2018 and the Company’s
certification of achievement of the Performance Goals based on the Company’s
audited consolidated financial statements for the Performance Period.

To be eligible for an LTB award, you must have been actively employed by the
Company from the date you became eligible through and including the date the
applicable LTB performance award is paid. If there is a substantial change to
your role and/or the organization, this incentive and document will be updated
accordingly in the Company’s reasonable discretion.

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Laureate Executive Cash Long Term Bonus Plan
    

Additional Information

This LTB may be amended, revised, replaced, or terminated at any time
unilaterally by the Company. The Company reserves the right to interpret and
implement the terms of this LTB in its sole discretion.

This LTB shall be governed by the laws of the State of Maryland.

Nothing herein guarantees to you the right to continued employment with the
Company.

Acknowledgement

In order to be eligible to receive a payment under this LTB, you must review the
content of this form, read the statement below, sign this form and return it to
Corporate Human Resources.

I, [______], [______], Laureate Education Inc., acknowledge that I have
received, read, and understand this document reviewing the details of this LTB.
 
Please sign and date this document, and return it to Corporate Human Resources
within 30 days of receipt. If not signed and returned within 30 days of the date
above, this incentive plan will be null and void.

________________________     _____________________     ______________________
Signature                 Name                 Date

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Laureate Executive Cash Long Term Bonus Plan     

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Laureate Executive Cash Long Term Bonus Plan     

Exhibit A

“Adjusted EBITDA” for any fiscal year will mean the Operating Income (Loss), as
stated on the audited Consolidated Statement of Income of Laureate Education,
Inc. and Subsidiaries (collectively “Laureate” or “the Company”), Plus/(Minus)
(to the extent included in Operating Income), all fairly and appropriately
adjusted for items as described below, all on an FX Neutral basis:

Core Operating Performance Adjustments
1. depreciation and amortization expenses;
2. share-based compensation expenses, as defined by ASC 718;
3. impairment costs as recognized on the Company’s financial statements for
tangible or intangible assets to the extent described in the financial
statements;
4. expenses related to implementation of the Company’s EiP initiative, to the
extent quantified in the footnotes to the financial statements;
5. (gains)/expenses related to the establishment or changes in contingent
liabilities and indemnification assets or contingent liabilities where there is
an unrecorded indemnification asset booked in connection with the acquisition of
business but only if attributable to a period prior to the acquisition of a
business (“Pre-acquisition FAS5”).

Financing/Restructuring Adjustments
6. transaction expenses in connection with financings, including fees and costs
related to the issuance or modification of any indebtedness;
7. all expenses related to any public or private offering of the Company’s
securities that are not netted with the offering proceeds and have not been
capitalized;
8. costs related to the restructuring or reduction in force (as defined in ASC
420 or ASC 712), to the extent described in the financial statements;
9. (gains)/losses on the disposition of the Company’s assets (excluding
(gains)/losses on dispositions of furniture and equipment in the ordinary course
of business), investments, operations that qualify as businesses under ASC 805,
and/or entities as defined under ASC 810;
10. If the Company makes an acquisition or disposition of a business or a
segment of a business in any year, the Adjusted EBITDA result for such year and
subsequent years will be adjusted to exclude the financial results from any such
acquisition or to include the prospective forecasted results for any such
disposition consummated during the relevant period, except to the extent
excluded from the target.

Other Adjustments subject to approval of the Compensation Committee of the
Company’s Board of Directors
11. (gains)/charges, net of insurance proceeds, resulting from a Force Majeure
event in any of the Company’s operating regions;
12. (gains)/expenses for a litigation case, net of insurance proceeds or
indemnification, if applicable, if the (gains)/expenses are in excess of $5
million for Corporate and $1 million for entities below Corporate;
13. implications from the expropriation or deconsolidation of Company assets or
a Company business required by or resulting from the actions of any government
or government agency with the Adjusted EBITDA from any such business to be added
back to the fiscal year’s EBITDA to the extent it was included in the baseline
for the established target;
14. changes in US GAAP, or the application thereof, subsequent to the issuance
of the Company’s audited financial statements for the plan baseline year,
promulgated by accounting standard setters or changes in local laws and
regulations;
15. Adjusted EBITDA (as defined above to the extent such items are disclosed in
the financial statements of the affiliate) for any affiliate accounted for as an
equity method investment;
16. charges, expenses and VAT beyond normal run rate relating to tax efficient
repatriation strategies.

“Fx Neutral” shall mean the application of the Foreign Exchange Rates, as
applied to each fiscal year for which an Adjusted EBITDA target is calculated.

“Foreign Exchange Spot Rates” shall equal the foreign exchange spot rates used
to translate the audited Balance Sheet of Laureate Education, Inc. and
Consolidated Subsidiaries at December 31, 2016.

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