Filed by Bowne Pure Compliance










Exhibit 10.1




EMPLOYMENT AGREEMENT




This EMPLOYMENT AGREEMENT (the “Agreement” or “Employment Agreement”) dated July 24, 2008 between Eugene S.
Putnam, Jr. “Employee”) and Universal Technical Institute, Inc., a Delaware corporation (the “Company”) provides:



WHEREAS, the Company wishes to obtain the services of Employee and Employee is willing to provide services to the
Company; and



WHEREAS, Employee wishes to have the protection provided for in this Agreement and, in exchange for such
protection, is willing to give to the Company, under certain circumstances, a covenant not to compete and a release of
all liability.



NOW, THEREFORE, the parties hereto agree as follows:




	 	99.	 	Definitions.






	 	a.	 	“Board of Directors” means the Board of Directors of the Company.






	 	b.	 	“Cause” means any one or more of the following:






(i) Employee’s conviction of, or plea of guilty or nolo contendere to, (a) any felony; or, (b) a
crime involving tax evasion, fraud, embezzlement, conversion of property or moral turpitude;




(ii) A finding by a majority of the Board of Directors of Employee’s fraud, embezzlement or
conversion of the Company’s property;




(iii) Employee’s conviction of, or plea of guilty or nolo contendere to, a crime involving the
acquisition, use or expenditure of federal, state or local government funds relating to the business
and affairs of the Company;




(iv) A final, nonappealable administrative or judicial determination that Employee committed
fraud or any other violation of law involving federal, state or local government funds relating to
the business and affairs of the Company;




(v) A finding by a majority of the Board of Directors of Employee’s knowing breach of any of
Employee’s fiduciary duties to any company in the Company Group or the Company’s stockholders or
making of an intentional misrepresentation or omission which breach, misrepresentation or omission
would reasonably be expected to have a material adverse effect on the business relationship, the
business, properties, assets, operations, condition (financial or other) or prospects of any company
in the Company Group;


 


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(vi) Employee’s alcohol or substance abuse, which materially interferes with Employee’s ability
to discharge the duties, responsibilities and obligations prescribed by this Agreement as determined
by a majority of the Board of Directors;




(vii) Employee’s material and knowing failure to observe or comply with law applicable to the
business of the Company as an officer or employee of the Company which would reasonably be expected
to have a material adverse effect on the business relationship, the business, properties, assets,
operations, condition (financial or other), or prospects of any company in the Company Group as
determined by a majority of the Board of Directors;




(viii) Employee’s willful gross misconduct relating to the business of the Company that results
in significant harm to the Company or its operation, properties, reputation, goodwill or business
relationships as determined by a majority of the Board of Directors,




provided that (i) any finding or determination made by the Board of Directors concerning the existence of
Cause must be made in good faith and not for purposes of evading the Company’s obligations hereunder; and (ii)
a finding or determination of Cause by the Board of Directors may not be made unless, prior to determining
that Cause exists, the Employee shall be given written notice stating in reasonable detail the facts and
circumstances deemed by the Company to constitute Cause, and thirty (30) days from receipt of such notice
Employee has failed to cure the facts and circumstances set forth in such notice.




c. “Change of Control” means: (i) any sale, lease, exchange, or other transfer (in one transaction or
series of related transactions) of all or substantially all of the Company’s assets to any person or group of
related persons under Section 13(d) of the Securities and Exchange Act of 1934 (“Group”); (ii) the Company’s
shareholders approve and complete any plan or proposal for the liquidation or dissolution of the Company;
(iii) any person or Group becomes the beneficial owner, directly or indirectly, of shares representing more
than 50% of the aggregate voting power of the issued and outstanding stock entitled to vote in the election of
directors of the Company (“Voting Stock”) and such person or Group has the power and authority to vote such
 shares; (iv) any person or Group acquires sufficient shares of Voting Stock to elect a majority of the members
of the Board of Directors; or (v) the completion of a merger or consolidation of the Company with another
entity in which holders of the Company’s stock immediately before the completion of the transaction hold,
directly or indirectly, immediately after the transaction, 50% or less of the common equity interest in the
surviving corporation in the transaction. Notwithstanding the foregoing, in no event will a Change of Control
be deemed to have occurred as a result of an initial public offering of the Company’s stock. Also,
notwithstanding anything to the contrary herein, the fact that a transaction or event is defined as a Change
of Control for purposes of this Agreement shall not evidence or infer that the transaction or
event constitutes a change of control for purposes of, including but not limited to, any determination or
definition of the Department of Education, any licensing agency, or for determining the duties of the
Company’s Board of Directors under Delaware corporate law.



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d. “Change of Chief Executive Officer (“CEO”)” means the termination of employment or material diminution of the
authority, duties or responsibilities of the current CEO, Kim McWaters.




e. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.




f. “Company Group” shall mean the entities listed on Schedule 1.




g. “Compete” shall mean to directly or indirectly own, operate, manage, join, control, be employed by, be
a consultant to, invest in, or become a director, officer, agent, partner, member, independent contractor or
shareholder of any Competitive Business, as defined below. As used in this Agreement, “Compete” does not
include purely passive investments in any publicly traded company so long as Employee does not directly or
indirectly own, acquire or obtain options to acquire, 5% or more of any class of shares in such company.




h. “Competitive Business” means any post secondary educational institution or entity which conducts
educational programs in the areas of automotive, motorcycle, marine, diesel or collision repair and refinishing
technologies (or a combination of these programs).




i. “Confidential Information” means any confidential information including, without limitation, any study,
data, calculations, software, storage media or other compilation of information, patent, patent application,
copyright, “know-how”, trade secrets, customer, student or prospective student lists or information, details of
client, consultant, student, vendor, supplier or manufacturer contracts, pricing policies, operational
methods, marketing plans or strategies, product development techniques or plans, business acquisition plans or
any portion or phase of any scientific or technical information, ideas, discoveries, designs, computer programs
(including source or object codes), processes, procedures, formulae, improvements or other proprietary or
intellectual property of any company in the Company Group, whether or not in written or tangible form, and
whether or not registered, and including all files, records, manuals, books, catalogues, memoranda, notes,
summaries, plans, reports, records, documents and other evidence thereof. Notwithstanding the foregoing, the
term Confidential Information does not include, and there shall be no obligation hereunder with respect to,
information that is or becomes generally available to the public other than as a result of a disclosure by the
Employee not permissible hereunder.




j. “Good Reason,” when used with reference to a voluntary termination by Employee of Employee’s
employment with the Company, shall mean any of the following conditions, provided that Employee (i) provides
the Company with actual notice of the condition giving rise to the termination within ninety (90) days of
Employee’s knowledge of the initial existence of the condition, (ii) provides the Company with the opportunity
to cure within thirty (30) days of the notice, and (iii) terminates employment within one (1) year of the
initial existence of the condition:



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(a) A material diminution in any of the following:




A. Employee’s base compensation;




B. Employee’s authority, duties or responsibilities; provided that, a material
diminution of Employee’s authority, duties or responsibilities shall be deemed to have
occurred if Employee ceases to have such authorities, duties or responsibilities with
respect to the entity which is the ultimate parent entity of the Company Group following a
Change of Control.




(b) A material change in the geographic location at which the Employee must perform the
services; or




© Any other action or inaction that constitutes a material breach by the Company of this
Agreement and such breach is not cured as set forth in 1.j. (ii) above.




k. “Market” means anywhere in the United States or Puerto Rico. If an arbitrator or arbitration panel
finds that this definition of Market is unreasonable, then the Market will be considered to mean all states in
which the Company has a campus or other training center and all states that are contiguous to a state in which
the Company has a campus or other training center. If an arbitrator or arbitration panel finds that
definition of Market is unreasonable, the Market shall mean all states in which the Company has a campus or
other training center.




l. “Position” means the particular position of Executive Vice President and Chief Financial Officer.




m. “Regulations” means any laws, ordinances, regulations or rules of any governmental, regulatory or
administrative body, agent or authority, any court or judicial authority, or any public, private or industry
regulatory authority.




n. “Severance Period” means the period of time that the Company continues to pay Employee as set forth in
Section 9.




o. “Specified Employee” means any Company employee that the Company determines is a Specified Employee
within the meaning of Section 409A of the Code, by applying reasonable, objectively determinable
identification procedures as set forth in a resolution of the Board of Directors on December 10, 2007.




p. “Term of Employment” means the period commencing on the date Employee actually begins employment with
the Company, which shall be no later than July 31, 2008 ( the “Effective Date”) and terminating three (3)
years after the Effective Date. Employee acknowledges that the Company has no obligation to continue
Employee’s employment or this Agreement beyond the Term of Employment. The Term of Employment may also be
terminated with or without cause and without notice subject to the provisions of Section 8 and Section 9.



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q. “Termination Date” shall mean the last day of Employee’s employment with the Company.



2. Nature of Employment. Subject to the terms of this Agreement, the Company hereby agrees to continue to
employ Employee in the Position, and Employee hereby agrees to accept the continuation of such employment in the
Position, for the Term of Employment under this Agreement.



3. Extent of Employment.



While employed:




a. Employee agrees to perform the duties of the Position faithfully and to the best of Employee’s ability
at the principal offices of the Company or in locations as may be designated temporarily from time to time by
the Company or as necessary to fulfill the duties of the Position. Employee shall report to the President and
Chief Executive Officer, or as otherwise directed by the Board of Directors.




b. Employee shall abide by the policies, rules, customs, and usages as established by or existing at the
Company.




c. Employee shall devote all of his business time, energy and skill as may be reasonably necessary for
the performance of the duties, responsibilities, and obligations of the Position.




d. Employee shall not knowingly breach or violate any Regulations or rules of any governmental or
regulatory body in any material respect and shall not act in any manner which might reasonably be expected to
have a material adverse effect on the ongoing business, properties, assets, operations, condition (financial
or other), business relationships or prospects of any company in the Company Group.




e. Employee shall not commit or engage in any conduct, through action or omission, which would constitute
any of the offenses set forth in the definition of “Cause” under this Agreement.




f. Employee agrees to relocate to and live in the Phoenix, Arizona metropolitan area no later than
October 1, 2009.



4. Compensation. While Employee is employed by the Company, the Company shall pay Employee as follows:




a. A base salary, paid in twenty six (26) equal installments, at a rate of Three Hundred Thousand Dollars
($300,000) per annum. The Board of Directors shall annually, and in its sole discretion, determine whether the
base salary should be increased and, if so, in what amount.



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b. An annual bonus based on Employee’s performance as determined and approved by the Board of Directors
based on performance parameters set by the Board of Directors. For the fiscal year 2008, the bonus target
shall be 50% of Employee’s base salary, pro-rated for the time Employee is employed or was an independent
contractor during the fiscal year. Such bonus will be determined at the sole discretion of the Board of
Directors, and may not be paid at all. Employee acknowledges that no bonus will be paid if performance
parameters are not met. If the Board of Directors determines that such bonus shall be paid, such bonus shall
be paid by the fifteenth (15th) day of the third (3rd) month of the Employee’s taxable
year following the year in which the Employee becomes entitled to such bonus.



5. Reimbursement of Expenses. While Employee is employed, the Company shall reimburse Employee for
reasonably documented travel expenses, entertainment and other expenses reasonably incurred by Employee in connection
with the performance of the duties of the Position and, in each case, according to the reasonable rules, policies,
customs and usage promulgated by the Company from time to time. All reimbursements shall be made within thirty (30)
days of Employee’s submission of any reasonably documented expense reimbursement claim. The amount of expenses
eligible for reimbursement provided during one taxable year shall not affect the amount of expenses eligible for
reimbursement or in-kind benefits provided during any other taxable year. Employee may not elect to receive cash or any
other benefit in lieu of the reimbursements provided by this Section.



6. Relocation Benefits and Sign On Bonus. Employee shall be given a relocation allowance of up to
One Hundred and Fifty Thousand Dollars ($150,000) to assist in Employee’s commute to Phoenix prior to relocation and
the relocation of Employee and his family to Phoenix. This benefit shall be paid in accordance with and subject to the
terms of the Company relocation policies and procedures and shall be subject to the Employee’s execution of a repayment
agreement. Pursuant to the repayment agreement, Employee must repay all or a portion of the relocation benefits if
Employee “voluntarily terminates” employment. Termination for Good Reason as defined in Section 1, or the death or
disability of Employee, shall not be considered “voluntary” termination for purposes of the repayment agreement.
Company agrees to pay to Employee a one time bonus of Fifty Thousand Dollars ($50,000) less applicable payroll taxes,
within thirty (30) days of the execution of this Agreement by Employee.



7. Benefits. While Employee is employed, the Employee shall be entitled to perquisites and benefits
established from time to time, at the sole discretion of the Board of Directors for the Position, including without
limitation, health, short and long term disability, pension and life insurance benefits consistent with past practice,
or as increased from time to time; provided that the perquisites and benefits provided to Employee shall be at least
substantially equal to those provided to any other officer of the Company.


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8. Termination of Employment for Cause or without Good Reason. At any time during the Term of Employment,
Company may terminate Employee for Cause effective upon the giving to Employee a written notice of termination. If
Employee’s employment is terminated for Cause or Employee voluntarily terminates without Good Reason, Employee shall be
entitled to:







a. Payment of accrued and unpaid base salary and unused vacation through the Termination Date;




b. Reimbursement for expenses incurred through the Termination Date as set forth in Section 5.



9. Termination of Employment without Cause or for Good Reason. During the Term of Employment, the Company
may terminate Employee without Cause and without providing notice to Employee, and Employee may terminate employment
with the Company for Good Reason.




a. During the Term of Employment, if Employee is terminated without Cause or if Employee terminates for
Good Reason, either of which occurs without a Change of Control or Change of CEO, Employee shall be entitled
to the following items so long as Employee has signed the release described in Section 11 below and not
revoked it:




(i) The Company shall provide the items set forth in Section 8.a. and 8.b. above.




(ii) The Company shall pay to Employee, an amount equal to Employee’s base salary at the
highest rate in effect at any time during the twelve (12) months immediately preceding the
Termination Date, payable for a period of twelve (12) months (the “Severance Period”). Employee will
be paid this amount in equal bi-weekly installments according to the Company’s regular payroll
periods and practices. The first payment to which Employee is entitled shall be paid on the first
day of the month following the revocation period, if any, as set forth in Exhibit A. At all
times, the right to each monthly payment made under this Section 10 shall be treated as the right to
a series of separate payments within the meaning of 26 CFR Section 1.409A-2(b) (2) (iii).




(iii) Employee will be eligible for the fiscal year bonus if such bonus is approved by the Board
of Directors based upon parameters set by the Board of Directors. The amount of any such bonus will
be pro-rated based on the Termination Date and shall be paid at the time other employees are paid the
bonus, but in no event will such bonus be paid after the fifteenth (15th) day of the third
(3rd) month of the Employee’s taxable year following the year in which the Employee
becomes entitled to such bonus.



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(iv) Employee’s then current medical and dental benefits will continue pursuant to Company
policy and the provisions of any applicable benefit plan. Beginning on the first day that active
employee coverage is ineffective, Employee may elect to continue current medical and dental benefits
for up to twelve (12) months in accordance with any applicable plan provisions and the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA). In addition, the Company will continue to pay a
monthly amount equal to the Company paid portion of the insurance premium for the coverage held by
Employee as of the Termination Date, and any administrative fee, for a period of twelve (12) months.
Upon Employee’s employment with another employer, to the extent Employee and his dependants are
eligible for substantially equivalent benefits under the new employer’s plan, the Company will no
longer be obligated to pay for the continuation coverage.




	 	99.	 	All stock Awards (as defined by any applicable Plan),
including stock options and restricted stock, shall be governed by the terms and
provisions of the Plan and the grant Agreement under which such Award was granted.






(vi) Employee’s participation in and/or coverage under all other employee benefit plans,
programs or arrangements sponsored or maintained by the Company shall cease to be effective as of the
Termination Date, unless such benefit, program or plan is inalienable under the law.




(vii) The Company shall pay for twelve (12) months of outplacement services through a provider
selected by the Company for the twelve (12) month period immediately following the Termination Date.




(viii) The children of Employee shall be eligible to attend any Company location or program
without paying tuition.




b. During the Term of Employment, if Employee is terminated without Cause or if Employee terminates for
Good Reason, either of which occurs within twelve (12) months of a Change of Control or a Change of CEO within
twelve (12) months of the execution of this Agreement, Employee shall be entitled to the following items so
long as Employee has signed the release described in Section 11 below and not revoked it:




(i) Except for the bonus set forth in Section 9.a.(iii), all of the payments and benefits as set
forth in Section 9.a. above;




(ii) The Company shall also pay to Employee Employee’s maximum targeted bonus for the fiscal
year in which the Termination Date occurs prorated to the Termination Date. Employee will be paid
this bonus amount over the Severance Period in equal bi-weekly installments according to the
Company’s regular payroll periods and practices;



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c. In addition to the pro-rated bonus set forth above in Section 9 a. iii or 9 b.ii, to the extent
Employee’s Termination Date is prior to the date on which the Company has paid any bonus to which the Employee
may be entitled for the fiscal year immediately preceding the Termination Date, (i.e. between the end of the
fiscal year and the bonus payout), Employee will receive such bonus in a lump sum on the same date as Employee
would have received such bonus had Employee remained continuously employed by the Company.




d. If any payment or benefit Employee would receive under this Agreement, when combined with any other
payment or benefit Employee receives pursuant to the termination of Employee’s employment with the Company
(“Payment”), would:




(i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and




(ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be whichever of the following amounts, taking into
account the applicable federal, state and local employment taxes, income taxes, and the Excise Tax,
results in Employee’s receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax:




(a) the full amount of such Payment; or




	 	(b)	 	such lesser amount (with cash payments
being reduced) as would result in no portion of the Payment being subject to
the Excise Tax.






(iii) All determinations required to be made under this Section 10(f), including whether and to
what extent the Payments shall be reduced and the assumptions to be utilized in arriving at such
determination, shall be made by a national independent accounting firm registered with the Public
Company Accounting Oversight Board as will be designated by the Company (the “Accounting Firm”). The
Accounting Firm shall provide detailed supporting calculations both to Employee and the Company at
such time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne
solely by the Company. For purposes of making the calculations required by this Section 10(g), the
Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and
may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and
4999 of the Code.      



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e. Notwithstanding any other provision of this Agreement to the contrary, neither the time nor the
schedule of any payment under this Agreement may be accelerated or subject to a further deferral except as
provided in 26 C.F.R. § 1.409A-3 (j) (4).




f. The Employee does not have any right to make any election regarding the time or form of any payment
due under this Agreement.




g. If the Company fails to make any payment under this Agreement, either intentionally or
unintentionally, within the time period specified in this Agreement, but the payment is made within the same
calendar year, such payment will be treated as made within the time period specified in the Agreement pursuant
to 26 C.F.R. § 1.409A-3(d). In addition, if a payment is not made due to a dispute with respect to such
payment, the payment may be delayed in accordance with 26 C.F.R. § 1.409A-3(g).




h. For purposes of this Agreement, the determination of whether Employee has terminated employment will
be made in accordance with 26 C.F.R. Section 1.409A-1(h) (1) (m). This Agreement shall be administered in
compliance with Section 409A of the Code and each provision shall be interpreted, to the extent possible, to
comply with Section 409A.



i. All severance payments payable under Sections 9 a. ii. And 9 b. i. which have become payable under this
Agreement due to the termination of Employee without Cause or for Good Reason, shall continue to be payable to the
estate of Employee in the event of Employee’s death.



Notwithstanding any of the foregoing, if the Employee is a Specified Employee on the Termination Date, all
monthly payments, if any, that are to be made following the fifteenth (15th) day of the third
(3rd) month of the Employee’s taxable year following the Employee’s taxable year in which Termination Date
occurred, but before the date which is six (6) months following the Termination Date, that are, in the aggregate, in
excess of the Excludable Compensation shall be paid in a lump-sum on the first (1st) day of the seventh
(7th) month following the Employee’s Termination Date or, if earlier, the date the Employee dies following
the Termination Date. For purposes of this Section 9, “Excludable Compensation” shall equal the lesser of two times
(i) the Employee’s annualized base compensation for the Employee’s taxable year prior to the Employee’s taxable year in
which the Termination Date occurred or (ii) the applicable limit set forth in Section§ 401(a) (17) of the Code for the
year in which the Termination Date occurred.



10. Mitigation or Reduction of Benefits. In the event of termination of employment as set forth in
Section 10 above, Employee shall not be required to mitigate the amount of any payment provided for in that Section by
seeking other employment or otherwise. Except as otherwise specifically set forth herein, the amount of any payment or
benefits provided in Section 9 shall not be reduced by any compensation or benefits or other amounts paid to or earned
by Employee as the result of employment by another employer after the Termination Date.



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11. Release. In order to receive payments and benefits described in Section 10, other than those provided
in Section 8, Employee must execute a Release in the form attached as Exhibit A, and that Release must become
effective by Employee not revoking it. If Employee fails to sign the Release within the period provided in the Release,
or if Employee revokes the Release within the seven (7) day revocation period provided therein, Employee will forfeit
any right to the payments and benefits described in Section 9. As a general rule, Employee shall receive the Release
from the Company on or before Employee’s Termination Date, but in no event will Employee receive the Release more than
ten (10) days following Employee’s Termination Date.



12. Covenant Not to Compete. In consideration of this Agreement, and the employment under it, the parties
have agreed to the following Covenant Not to Compete.




a. Post Termination Restrictions. Employee acknowledges that the services provided under this Agreement
give Employee the opportunity to have special knowledge of the Company, its Confidential Information, and the
capabilities of individuals employed by or affiliated with the Company. Employee further acknowledges that
interference with those business or employment relationships with the Company would cause irreparable injury
to the Company. Consequently, Employee covenants and agrees that:




(i) From the Effective Date hereof until twelve (12) months (or for eight (8) months if an
arbitrator or arbitration panel finds that twelve (12) months are unreasonable) after the Termination
Date, Employee will not, without the express written approval of a majority of the Board of
Directors, directly or indirectly, anywhere in the Market, in one or a series of transactions,
Compete against Company, as defined in Section 1 above, without regard to (a) whether the Competitive
Business has its office or other business facilities within or outside the Market, (b) whether any of
the activities of the Employee referred to above occur or are performed within or outside the Market,
or (c) whether the Employee resides, or reports to an office, within or outside the Market.




(ii) From the effective date hereof until twelve (12) months after the Termination Date (which
shall not be reduced by (a) any period of violation of this Agreement by Employee or (b) if the
Company is the prevailing party in any litigation to enforce its rights under this Section 12, the
period which is required for such litigation), Employee will not, without the express prior written
approval of a majority of the Board of Directors, directly or indirectly, in one or a series of
transactions: (i) recruit, solicit or otherwise induce or influence any proprietor, partner,
stockholder, lender, director, officer, employee, sales agent, joint venturer, investor, lessor,
customer, agent, representative or any other person which has a business relationship with the
Company or had a business relationship with the Company within the twelve (12) month period preceding
the date of the incident in question, to discontinue, reduce or modify such employment, agency or
business relationship with the Company; or (ii) employ or seek to employ or cause any Competitive
Business to employ or seek to employ any person or agent who is then (or was at any time within
twelve (12) months prior to the date the Employee or the Competitive Business employs or seeks to
employ such person) employed or retained by the Company. Notwithstanding the foregoing, nothing
herein shall prevent the Employee from providing a personal letter of recommendation to an employee
of the Company with respect to a future or any other employment opportunity.



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(iii) The scope and term of this Section 12 would not preclude Employee from earning a living in
an occupation or position with an entity that is not a Competitive Business.




b. Acknowledgment Regarding Restrictions. Employee recognizes and agrees that the restraints contained
in Section 12 (both separately and in total) are reasonable and should be fully enforceable in view of the
high level positions Employee has had with the Company, and the Company’s legitimate interests in protecting
its Confidential Information and its goodwill and relationships. Employee specifically hereby acknowledges and
confirms that Employee is willing and intends to, and will, abide fully by the terms of Section 12 of this
Agreement. Employee further agrees that the Company would not have adequate protection if Employee were
permitted to work in a Competitive Business in violation of the terms of this Agreement since the disclosure
of Confidential Information is inevitable and the Company would be unable to verify whether its Confidential
Information was being disclosed and/or misused.




c. Company’s Right to Cease and Recoup Payments and Obtain Injunctive Relief. In the event of a breach
or imminent breach of any of Employee’s duties or obligations under this Agreement, the Company shall be
entitled to immediately cease all payments and benefits to Employee under Section 9 and, in the event of an
actual breach, require Employee to disgorge and repay to Company all payments and benefits previously paid to
or conferred upon Employee under Section 9 of this Agreement after the commencement of Employee’s breach.
Employee agrees that if Employee breaches any duties or obligations Employee has under this Agreement, that,
except for sums set forth in Section 8, Employee has no right to any money or benefits under Section 10 of
this Agreement and that Employee must return any money paid to Employee under that section. In addition to any
other legal or equitable remedies the Company may have (including any right to damages that it may suffer),
the Company shall be entitled to temporary, preliminary and permanent injunctive relief restraining such
breach or imminent breach. Employee hereby expressly acknowledges that the harm which might result to
Company’s business as a result of noncompliance by Employee with any of the provisions of this Agreement would
be largely irreparable. Each party undertakes and agrees that if she/it breaches or threatens to breach the
Agreement, she/it shall be liable for any attorneys’ fees and costs incurred by the other party in enforcing
its rights hereunder.




d. Employee Agreement to Disclose this Agreement. Employee agrees to disclose, during the Severance
Period, the terms of this Section 12 to any potential future employer.




e. Survival. The terms of this entire Section 12 shall survive the termination of Employee’s employment
under this Agreement regardless of who terminates employment or the reasons therefore.



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13. Confidential Information.




a. During and after the Term of Employment, Employee will not, directly or indirectly, in one or a series
of transactions, disclose to any person, or use or otherwise exploit for the Employee’s own benefit or for the
benefit of anyone other than the Company, any Confidential Information, whether prepared by Employee or not;
provided, however, that any Confidential Information may be disclosed (i) to officers, representatives,
employees and agents of the Company who need to know such Confidential Information in order to perform the
services or conduct the operations required or expected of them in the business, and (ii) in good faith by the
Employee in connection with the performance of Employee’s duties hereunder to persons who are authorized to
receive such information by the Company. Employee shall use Employee’s best efforts to prevent the removal of
any Confidential Information from the premises of the Company, except as required in Employee’s normal course
of employment by the Company. Employee shall use Employee’s best efforts to cause all persons or entities to
whom any Confidential Information shall be disclosed by Employee hereunder to observe the terms and conditions
set forth herein as though each such person or entity was bound hereby. Employee shall have no obligation
hereunder to keep confidential any Confidential Information, if and to the extent disclosure of any such
information is specifically required by law or requested by a governmental agency; provided, however, that in
the event disclosure is required by applicable law or requested by a governmental agency, the Employee shall
provide the Company with prompt notice of such requirement or request, prior to making any disclosure, so that
the Company may seek an appropriate protective order. At the request of the Company, Employee agrees to
deliver to the Company, at any time during the Term of Employment, or thereafter, all Confidential Information
which Employee may possess or control. Employee agrees that all Confidential Information of the Company
(whether now or hereafter existing) conceived, discovered or made by Employee during the Term of Employment
exclusively belongs to the Company (and not to Employee). Employee will promptly disclose such Confidential
Information to the Company and perform all actions reasonably requested by the Company to establish and
confirm such exclusive ownership.




b. The terms of this entire Section 13 shall survive the termination of Employee’s employment under this
Agreement regardless of who terminates employment or the reasons therefore.



14. Notice. All notices hereunder shall be in writing and shall be deemed to have been duly given (a)
when delivered personally or by courier, or (b) on the third business day following the mailing thereof by registered
or certified mail, postage prepaid, or (c) on the first business day following the mailing thereof by overnight
delivery service, in each case addressed as set forth below:



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If to the Company:




Universal Technical Institute, Inc.


20410 North 19th Avenue, Suite 200


Phoenix, Arizona 85027


Facsimile No.: (623) 445-9501


Attn: General Counsel




With a copy to:




Chairman of the Compensation Committee


of the Board of Directors


20410 North 19th Avenue, Suite 200


Phoenix, Arizona 85027




If to Employee:




Eugene Putnam


5629 Longmont Drive


Houston, TX 77056



Any party may change the address to which notices are to be addressed by giving the other party written notice in
the manner herein set forth.



15. Employee Expenses in the Event of Dispute. If Employee’s employment is terminated by the Company
within the Term of Employment and there is a dispute with respect to this Agreement, then all of Employee’s reasonable
legal expenses incurred by Employee (a) to defend the validity of this Agreement, (b) if Employee’s employment has been
terminated for Cause, to contest such termination, (c) to contest any determinations by the Company concerning the
amounts payable by the Company under this Agreement, or (d) to otherwise obtain or enforce any right or benefit
provided to Employee by this Agreement, shall be paid by the Company if Employee is the prevailing party. Such
expenses shall be paid, if at all, within thirty (30) days of the date of the determination that Employee is the
prevailing party, but in no event later than December 31st of the taxable year following the year in which
the Employee incurred the expenses. The expenses reimbursed in one taxable year will not affect the expenses eligible
for reimbursement by the Company in a different taxable year. All reimbursements of the expenses must be made no later
than December 31st of the taxable year following the taxable year in which the expenses were incurred. The
Employee may not elect to receive cash or any other benefit in lieu of the benefits provided by this Section.



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16. Agreement to Arbitrate. All disputes or claims regarding this Agreement shall be submitted for
resolution exclusively to binding arbitration under the Commercial Rules of Arbitration of the American Arbitration
Association in Phoenix, Arizona. The arbitrator or arbitration panel shall have the authority to award temporary or
permanent injunctive relief and to award attorneys’ fees and costs to the prevailing party. Any temporary or permanent
injunctive relief ordered by the arbitrator or the arbitration panel may be enforced in court by either party by
seeking judicial confirmation of such award.




17. Successors; Binding Agreement.




a. The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, upon or
prior to such succession, to expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would have been required to perform it if no such succession had taken place.
A copy of such assumption and agreement shall be delivered to Employee promptly after its execution by the
successor. Failure of the Company to obtain such agreement upon, or prior to, the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle Employee to benefits from the Company in the
same amounts and on the same terms as Employee would be entitled hereunder if Employee terminated Employee’s
employment for Good Reason. For purposes of the preceding sentence, the date on which any such succession
becomes effective shall be deemed the Termination Date. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes
and delivers the agreement provided for in this Section 18 or which otherwise becomes bound by the terms and
provisions of this Agreement by operation of law.




b. This Agreement is personal to Employee and Employee may not assign or delegate any part of Employee’s
rights or duties hereunder to any other person, except that this Agreement shall inure to the benefit of, and
be enforceable by, Employee’s legal representatives, executors, administrators, heirs and beneficiaries.



18. Severability. If any provision of this Agreement or the application thereof to any person or
circumstance shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement and the
application of such provision to persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be affected thereby, and each provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law. An arbitrator or arbitration panel can reasonably modify this Agreement by rewriting
it and/or it can “blue-pencil” this Agreement by striking things out.



19. Headings. The headings in this Agreement are inserted for convenience of reference only and shall not
in any way affect the meaning or interpretation of this Agreement.



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



21. Waiver. Neither any course of dealing nor any failure or neglect of either party hereto in any
instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of such right,
power or privilege or of any other right, power or privilege or of the same right, power or privilege in any other
instance. Without limiting the generality of the foregoing, Employee’s continued employment without objection shall not
constitute Employee’s consent to, or a waiver of, Employee’s rights with respect to any circumstances constituting Good
Reason. All waivers by either party hereto must be contained in a written instrument signed by the party to be charged
therewith, and, in the case of the Company, by a resolution adopted by a majority of the Board of Directors.



22. Entire Agreement. This instrument constitutes the entire agreement of the parties in this matter and
shall supersede any other agreement between the parties, oral or written, concerning the same subject matter.



23. Amendment. This Agreement may be amended only by a writing which makes express reference to this
Agreement as the subject of such amendment and which is signed by Employee and by the Chairman of the Compensation
Committee of the Board of Directors or the Chairman’s designee.



24. Governing Law. In light of Company’s and Employee’s substantial contacts with the State of Arizona,
the facts that the Company is headquartered in Arizona and Employee resides in and provides services to the Company in
Arizona, the parties’ interests in ensuring that disputes regarding the interpretation, validity and enforceability of
this Agreement are resolved on a uniform basis, and Company’s execution of, and the making of, this Agreement in
Arizona, the parties agree that: (a) any arbitration or litigation involving any noncompliance with or breach of the
Agreement, or regarding the interpretation, validity and/or enforceability of the Agreement, shall be filed and
conducted exclusively in the state of Arizona; and (b) the Agreement shall be interpreted in accordance with and
governed by the laws of the State of Arizona, without regard for any conflict/choice of law principles.



IN WITNESS WHEREOF, Employee and the Company have executed this Agreement as of the day and year first above
written.




UNIVERSAL TECHNICAL INSTITUTE, INC.




By: /s/ Chad A. Freed                                              


Eugene S. Putnam, Jr.




By: /s/ Eugene S. Putnam, Jr.                                   







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SCHEDULE 1




Companies in the Company Group consist of:




	 	a.	 	Universal Technical Institute, Inc.






	 	b.	 	UTI Holdings, Inc.






	 	c.	 	U.T.I. of Illinois, Inc.






	 	d.	 	Universal Technical Institute of Texas, Inc.






	 	e.	 	Universal Technical Institute of California, Inc.






	 	f.	 	Custom Training Group, Inc.






	 	g.	 	The Clinton Harley Corporation






	 	h.	 	Universal Technical Institute of Arizona, Inc.






	 	i.	 	Universal Technical Institute of North Carolina, Inc.






	 	j.	 	Universal Technical Institute of Northern California, Inc.






	 	k.	 	Universal Technical Institute of Massachusetts, Inc.






	 	l.	 	Universal Technical Institute of Pennsylvania, Inc.






	 	m.	 	Universal Technical Institute of Phoenix, Inc.





 






 


 









 









Exhibit A

RELEASE




This RELEASE (the “Release”) dated      ,      is by and between Eugene S. Putnam. Jr. (“Employee”) and
Universal Technical Institute, Inc., a Delaware corporation (“Company”);



WHEREAS, the Company and Employee are parties to an Employment Agreement dated      , 2008 (the “Employment
Agreement”), which provides certain protection to Employee during employment and upon termination of employment; and



WHEREAS, the execution of this Release is a condition precedent to, and material inducement to, the Company’s
provision of certain benefits under the Employment Agreement;



NOW, THEREFORE, the parties hereto agree as follows:



1. Mutual Promises. The Company undertakes the obligations contained in the Employment Agreement, which are in
addition to any compensation to which Employee might otherwise be entitled, in exchange for Employee’s promises and
obligations contained herein. The Company’s obligations are undertaken in lieu of any other employment benefits.



2. Release of Claims; Agreement Not to File Suit.




a. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors,
administrators, successors, assigns and anyone claiming through or under any of the foregoing, agrees to, and
does, release and forever discharge the Company and its subsidiaries and affiliates, each of their
shareholders, directors, officers, employees, agents and representatives, and its successors and assigns
(collectively, the “Company Released Persons”), from any and all matters, claims, demands, damages, causes of
action, debts, liabilities, controversies, judgments and suits of every kind and nature whatsoever, foreseen
or unforeseen, known or unknown, which have arisen or could arise from matters which occurred prior to the
date of this Release, which matters include without limitation: (i) the matters covered by the Employment
Agreement and this Release, and (ii) Employee’s employment, and/or termination from employment with the
Company.




b. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors,
administrators, successors, assigns, and anyone claiming through or under any of the foregoing, agrees that
Employee will not file or otherwise submit any arbitration demand, claim, complaint, or action to any court,
organization, or judicial forum (nor will Employee permit any person, group of persons, or organization to
take such action on Employee’s behalf) against any Company Released Person arising out of any actions or
non-actions on the part of any Company Released Person arising out of the parties’ employment relationship
before the date of this Release or any action taken after the date of this Release pursuant to the Employment
Agreement. Employee further agrees that in the event that any person or entity should bring such a charge,
claim, complaint, or action on Employee’s behalf, Employee hereby waives and forfeits any right to recovery
under said claim and will exercise every good faith effort to have such claim dismissed.


 

 


 









 






c. The charges, claims, complaints, matters, demands, damages, and causes of action referenced in
Sections 2(a) and 2(b) include, but are not limited to: (i) any breach of an actual or implied contract of
employment between Employee and any Company Released Person, (ii) any claim of unjust, wrongful, or ÿortuous
discharge (including, but not limited to, any claim of fraud, negligence, retaliation for whistle blowing, or
intentional infliction of emotional distress), (iii) any claim of defamation or other common law action, or
(iv) any claims of violations arising under the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et
seq., the Age Discrimination in Employment Act, 29 U.S.C. §621 et seq., the Americans with
Disabilities Act of 1990, 42 U.S.C. §12101 et seq., the Fair Labor Standards Act of 1938, as amended, 29
U.S.C. §201 et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. §701 et seq., the
Family and Medical Leave Act, or any other relevant federal, state, or local statutes or ordinances, or any
claims for pay, vacation pay, insurance, or welfare benefits or any other benefits of employment with any
Company Released Person arising from events occurring prior to the date of this Release other than those
payments and benefits specifically provided herein.




d. This Release shall not affect Employee’s right to any governmental benefits payable under any Social
Security or Worker’s Compensation law now or in the future.




e. This Release does not affect Employee’s right to participate in any federal, state or local
investigation by any governmental agency or to challenge the validity of this Agreement. Further, this Release
is not intended to be a release of any claims under the Arizona Minimum Wage Act, effective January 1, 2007.



3. Release of Benefit Claims. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries,
executors, administrators, successors, assigns and anyone claiming through or under any of the foregoing, further
releases and waives any claims for pay, vacation pay, insurance or welfare benefits or any other benefits of employment
with any Company Released Person arising from events occurring prior to the date of this Release other than claims to
the payments and benefits specifically provided for in the Employment Agreement and claims for benefits which are not
subject to waiver under the law.



4. Revocation Period; Knowing and Voluntary Agreement. Employee acknowledges that he/she is knowingly and
voluntarily waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act, as
amended, (“ADEA”). Employee also acknowledges that the consideration given for the waiver and release in the preceding
Section is in addition to anything of value to which he/she would be entitled to without this Agreement. Employee
further acknowledges that Employee is advised by this writing, as required by the ADEA, that: (a) this waiver and
release do not apply to any rights or claims that may arise after execution date of this Agreement; (b) Employee has
been advised of having had the right to consult with an attorney prior to signing this Agreement; (c) Employee has
twenty-one (21) days to consider this Agreement (although Employee may choose to voluntarily execute this Agreement
earlier); (d) Employee has seven (7) days following the signing of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement shall not be effective until the date upon which the revocation period has expired,
which shall be the eighth day after this Agreement is executed by the Employee.



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5. Severability. If any provision of this Release or the application thereof to any person or circumstance shall
to any extent be held to be invalid or unenforceable, the remainder of this Release and the application of such
provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be
affected thereby, and each provision of this Release shall be valid and enforceable to the fullest extent permitted by
law.



6. Headings. The headings in this Release are inserted for convenience of reference only and shall not in any way
affect the meaning or interpretation of this Release.



7. Counterparts. This Release may be executed in one or more identical counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument.



8. Entire Agreement. This Release and related Employment Agreement constitutes the entire agreement of the
parties in this matter and shall supersede any other agreement between the parties, oral or written, concerning the
same subject matter.



9. Governing Law. This Release shall be governed by, and construed and enforced in accordance with, the laws of
the State of Arizona, without reference to the conflict of laws rules of such State.



IN WITNESS WHEREOF, Employee and the Company have executed this Release as of the day and year first above written.




UNIVERSAL TECHNICAL INSTITUTE, INC.




By:                                                                                   




EUGENE S. PUTNAM, JR.




By:                                                                                   




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