# EDGAR Filing Document

**Accession Number:** 0001600222
**File Stem:** 0001193125-25-192874
**Filing Date:** 2025-8
**Character Count:** 2499245
**Document Hash:** f66cf60720e4ec749d0676db313d47bd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-192874.hdr.sgml**: 20250829

**ACCESSION NUMBER**: 0001193125-25-192874

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 54

**FILED AS OF DATE**: 20250829

**DATE AS OF CHANGE**: 20250829

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AP VIII Queso Holdings, L.P.
- **CENTRAL INDEX KEY:** 0001600222
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 383922540
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-289955
- **FILM NUMBER:** 251281899

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MANHATTANVILLE ROAD, SUITE 201
- **CITY:** PURCHASE
- **STATE:** NY
- **ZIP:** 10577
- **BUSINESS PHONE:** 212-515-3200

**MAIL ADDRESS:**
- **STREET 1:** ONE MANHATTANVILLE ROAD, SUITE 201
- **CITY:** PURCHASE
- **STATE:** NY
- **ZIP:** 10577

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on August 29, 2025.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

**AP VIII Queso Holdings, L.P.** 

**to be converted as described herein to a corporation named** 

**Phoenix Education Partners, Inc.** 

**(Exact name of registrant as specified in its charter)** 

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| | | |
|:---|:---|:---|
| **Delaware** | **8200** | **38-3922540** |
| **(State or Other Jurisdiction of**<br> Incorporation or Organization)** | **(Primary Standard Industrial**<br> Classification Code Number)** | **(I.R.S. Employer<br>Identification Number)** |

---

**4035 S. Riverpoint Parkway** 

**Phoenix, AZ 85040** 

**(800) 990-2765** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**Srini Medi, Esq.** 

**Senior Vice President, General Counsel & Secretary** 

**4035 S. Riverpoint Parkway** 

**Phoenix, AZ 85040** 

**(800) 990-2765** 

**(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)** 

***Copies to:***

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| | |
|:---|:---|
| **Brian M. Janson, Esq.**<br> **Luke R. Jennings, Esq.<br>Paul, Weiss, Rifkind, Wharton & Garrison LLP<br>1285 Avenue of the Americas<br>New York, NY 10019-6064**<br> **(212) 373-3000** | **Kenneth B. Wallach, Esq.**<br> **Jessica Asrat, Esq.**<br> **Simpson Thacher & Bartlett LLP<br>425 Lexington Avenue**<br> **New York, New York 10017**<br> **(212) 455-2000** |

---

Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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**EXPLANATORY NOTE** 

AP VIII Queso Holdings, L.P., the registrant whose name appears on the cover of this registration statement, is a Delaware limited partnership. Prior to the closing of this offering, AP VIII Queso Holdings, L.P. will convert into a Delaware corporation pursuant to a statutory conversion and change its name to Phoenix Education Partners, Inc. as described in "*Prospectus Summary—The Reorganization Transactions*." As a result of the conversion into a corporation, the limited partners of AP VIII Queso Holdings, L.P. will become holders of shares of common stock of Phoenix Education Partners, Inc. Except as disclosed in the prospectus included in this registration statement, the consolidated financial statements and other financial information included in this registration statement are those of AP VIII Queso Holdings, L.P. and its subsidiaries and do not give effect to the Reorganization Transactions. See "*Prospectus Summary—The Reorganization Transactions*" and "*Capitalization*." Shares of common stock of Phoenix Education Partners, Inc. are being offered by the prospectus included in this registration statement.

Our fiscal year ends on August 31 of each year and our four fiscal quarters comprising our fiscal year end on the last day of November, February, May and August, respectively.

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**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.** 

*Subject to completion, dated August 29, 2025* 

*PROSPECTUS* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Shares*![LOGO](g876348g00a02.jpg)

## Phoenix Education Partners, Inc.
*Common Stock* 

***This is the initial public offering of shares of common stock of Phoenix Education Partners, Inc., a Delaware corporation. All of the shares of common stock are being sold by the selling stockholders identified in this prospectus. We will not receive any of the proceeds from the sale of shares of common stock in this offering.***

***We expect the initial public offering price to be between $ and $ per share. Prior to this offering, there has been no public market for our common stock. We have applied to list our common stock on the New York Stock Exchange (the "NYSE") under the symbol "PXED."***

***AP VIII Socrates Holdings, L.P. (the "Apollo Stockholder"), which is an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc. (together with its subsidiaries, "Apollo"), is currently our majority stockholder and is also one of the selling stockholders in this offering. Following the completion of this offering and the related transactions, the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full). As a result, we expect to be a "controlled company" under the corporate governance rules for NYSE-listed companies and will be exempt from certain corporate governance requirements of such rules. So long as we remain a "controlled company," the Apollo Stockholder will have the ability to control matters requiring approval by our stockholders, including the election of directors, amendments to our certificate of incorporation and major corporate transactions. See "****Risk Factors—Risks Related to this Offering and Ownership of our Common Stock****," "****Management—Controlled Company****" and "****Principal and Selling Stockholders****."***

***We are also an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting requirements for this prospectus and may elect to do so in future filings. See "****Prospectus Summary—Implications of Being an Emerging Growth Company****."***

***Investing in our common stock involves risks that are described in the "[Risk Factors](#rom876348_2)" section beginning on page 28 of this prospectus.***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Per Share*** |  | ***Total*** |  |
|  *Public offering price* | | $| | $|
|  *Underwriting discounts and commissions<sup>(1)</sup>* | | $| | $|
|  *Proceeds to the selling stockholders, before expenses* | | $| | $|

---

*(1)* *See "Underwriting (Conflicts of Interest)" for additional information regarding the underwriters' compensation and reimbursement of expenses.* 

*The underwriters may also exercise their option to purchase up to an additional shares from the selling stockholders at the public offering price, less underwriting discounts and commissions, for 30 days after the date of this prospectus.* 

***Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.***

*The underwriters expect to deliver the shares of common stock against payment in New York, New York on or about , 2025 through the book-entry facilities of The Depositary Trust Company.* 

*Morgan Stanley* *Goldman Sachs & Co. LLC* *BMO Capital Markets* *Jefferies* <br> *Apollo Global Securities*

*The date of this prospectus is , 2025* 

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![LOGO](g876348g07m94.jpg)

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![LOGO](g876348g93l44.jpg)

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![LOGO](g876348g03a03.jpg)

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | **Page** |
|  [A Letter From Chris Lynne, Our President and Chief Executive Officer](#rom876348_aa1) | iv |
|  [Prospectus Summary](#rom876348_1) | 1 |
|  [Risk Factors](#rom876348_2) | 28 |
|  [Cautionary Note Regarding Forward-Looking Statements](#rom876348_3) | 72 |
|  [Use of Proceeds](#rom876348_4) | 74 |
|  [Dividend Policy](#rom876348_5) | 75 |
|  [Capitalization](#rom876348_6) | 76 |
|  [Dilution](#rom876348_7) | 77 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#rom876348_8) | 79 |
|  [Business](#rom876348_9) | 100 |
|  [Management](#rom876348_10) | 137 |

---

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| | |
|:---|:---|
|  | **Page** |
|  [Executive Compensation](#rom876348_11) | 147 |
|  [Director Compensation](#rom876348_11a) | 163 |
|  [Certain Relationships and Related Party Transactions](#rom876348_12) | 164 |
|  [Principal and Selling Stockholders](#rom876348_13) | 170 |
|  [Description of Capital Stock](#rom876348_14) | 172 |
|  [Shares Eligible for Future Sale](#rom876348_15) | 182 |
|  [Material U.S. Federal Income Tax Considerations](#rom876348_16) | 184 |
|  [Underwriting (Conflicts of Interest)](#rom876348_17) | 188 |
|  [Legal Matters](#rom876348_18) | 197 |
|  [Experts](#rom876348_19) | 197 |
|  [Where You Can Find More Information](#rom876348_20) | 197 |
|  [Index to Consolidated Financial Statements](#rom876348_21) | F-1 |

---

**For investors outside the United States: The selling stockholders and the underwriters are offering to sell, and seeking offers to buy, shares of our common stock only in jurisdictions where offers and sales are permitted. None of us, the selling stockholders or the underwriters have done anything that would permit this offering or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this offering in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about and to observe any restrictions relating to this offering and the distribution of this prospectus and any such free writing prospectus outside of the United States.** 

**None of us, the selling stockholders or the underwriters have authorized any other person to provide you with any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. We, the selling stockholders and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may provide you. The selling stockholders are offering to sell, and seeking offers to buy, shares of common stock only in jurisdictions where offers and sales are permitted. You should assume that the information appearing in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the common stock. Our business, financial condition, results of operations and prospects may have changed since the date of this prospectus.** 

**Through and including , 2025 (the 25th day after the date of this prospectus), all dealers effecting transactions in the common stock, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

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**TRADEMARKS, TRADE NAMES, AND SERVICE MARKS** 

We use various trademarks, trade names and service marks in our business. This prospectus contains references to our trademarks, trade names and service marks. Solely for convenience, trademarks, trade names and service marks referred to in this prospectus may appear without the <sup>®</sup> or TM symbols, but such references are not intended to indicate, in any way, the registration status of such trademarks, trade names and service marks, or that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks, trade names and service marks. We do not intend our use or display of other companies' trade names, trademarks or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, any other companies.

**INDUSTRY AND MARKET DATA** 

We include statements and information in this prospectus concerning our industry, our competitors, our industry ranking and the markets in which we operate, including our general expectations and market opportunity, which are based on information from industry organizations and other third-party sources (including third-party market studies, industry publications, surveys and forecasts), as well as internal company sources and management's belief. Certain statements regarding our competitors are based on publicly available information, including filings with the Securities and Exchange Commission (the "SEC") and the United States Department of Education (the "U.S. Department of Education" or "Department of Education") by such competitors, published industry sources and management estimates. Studies, industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such information. In addition, while we believe that the industry information included herein is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "*Risk Factors*" and "*Cautionary Note Regarding Forward-Looking Statements*" in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

The sources of certain statistical data, industry data, estimates and forecasts contained in this prospectus are the following industry publications or reports:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Best Colleges: "Online Program Managers: What Are OPMs in Higher Education?" published
July 12, 2024 and "The Rise and Fall(?) of Coding Bootcamps," published January 10, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Burning Glass Institute: "The Emerging Degree Reset," published 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commonwealth of Learning: "Creating an Endowment for Humanity: The role of Universities,
Mega-Universities and Hyper-Universities," published November 30, 2007;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Education Data Initiative: "Average Cost of College by Year," published September 9, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Education Dynamics: "Online College Students Report 2024," published 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Forbes: "The Universities with the Most Graduates Working at Top Fortune 500 Companies," published
September 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gallup-Lumina: "The State of Higher Education 2024," published May 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Georgetown University Center on Education and the Workforce: "After Everything: Projections of Jobs,
Education and Training Requirements through 2031," published November 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inside Higher Ed: "Major Error Skewed Freshman Enrollment Data," published January 13, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Institute of Education Sciences: "Report on the Condition of Education 2023," published May 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Learnopoly: "Coursera Statistics (2024)," published 2024;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• National Student Clearinghouse Research Center: "Some College, No Credential," published
June 4, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ruffalo Noel Levitz: "Priorities Survey for Online Learners," published 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Society for Human Resource Management: "SHRM Releases 2023 Employee Benefits Survey Results,"
published June 12, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Training Magazine: "2023 Training Report," published November 14, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United States Census Bureau: "Educational Attainment in the United States: 2022," published
February 16, 2023; and "Current Population Survey," published October 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education
Data System (IPEDS), "Fall Enrollment component final data (2012—2022) and provisional data," published 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United States Department of Education, National Center for Education Statistics: "Report on the
Condition of Education 2023," published May 2023; "Tuition costs of colleges and universities," published May 30, 2024, "Student Enrollment: How many students ages 25 and over enroll in postsecondary institutions in the
fall?," published 2023 and "The Condition of Education 2024: "Price of Attending an Undergraduate Institution," published 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United States Department of Labor, Bureau of Labor Statistics: "Industry and occupational employment
projections overview and highlights, 2023–33," published November 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Validated Insights Inc: "OPM Market Insights: A quarterly update on the Online Program Management (OPM)
market in the United States," published September 2024; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• World Economic Forum: "Future of Jobs 2023: These are the Most In-Demand Skills Now—and Beyond," published May 1, 2023 and "Future of Jobs Report 2025: The jobs of the future – and the skills you need to get them," published
January 8, 2025.

**BASIS OF PRESENTATION** 

In this prospectus, unless otherwise indicated or the context otherwise requires, references to the "Company," the "Issuer," "we," "us" and "our" refer, prior to our conversion into a corporation, to AP VIII Queso Holdings, L.P. and its consolidated subsidiaries and, after our conversion into a corporation, to Phoenix Education Partners, Inc. and its consolidated subsidiaries. See "*Prospectus Summary—The Reorganization Transactions*."

In this prospectus, references to: (i) the "University" refer to The University of Phoenix, Inc., our indirect subsidiary, and (ii) "AEG" refer to Apollo Education Group, Inc., our direct subsidiary. AEG had no prior affiliation with Apollo before the acquisition by affiliates of certain investment funds managed by affiliates of Apollo and The Vistria Group ("Vistria") in 2017.

Our fiscal year ends on August 31 of each year and our four fiscal quarters comprising our fiscal year end on the last day of November, February, May and August, respectively. The term "fiscal," with respect to any year, refers to the period ending on August 31 of such year.

All consolidated financial statements presented in this prospectus have been prepared in U.S. dollars in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Our Average Total Degreed Enrollment statistics presented in this prospectus are rounded to the nearest hundred. See "*Prospectus Summary—Summary Consolidated Financial and Other Data*" for how we calculate Average Total Degreed Enrollment.

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**A LETTER FROM CHRIS LYNNE, OUR PRESIDENT AND CHIEF EXECUTIVE OFFICER** 

For me, the mission we serve at the University of Phoenix is deeply personal.

I was raised by a single mother who worked tirelessly to provide for us. She pursued her college degree over many years, often late at night and after long hours of work, driven by a belief that education could unlock a better future for our family. But despite her intelligence and determination, she was not able to successfully complete her degree. She didn't face barriers due to grit or capability; the challenge was access. The system wasn't designed for someone like her: a working parent with big dreams but limited flexibility.

I witnessed firsthand the resilience, sacrifice, and hope that define the lives of so many who pursue higher education as adults. Watching my mother navigate life in search of that opportunity instilled in me a deep belief in the critical need to provide access to higher education for this large and growing population of "adult learners" —students over the age of 25—whose needs are not met by the "traditional" education system. That belief is the foundation of the work we do at the University of Phoenix every single day.

Our mission at the University of Phoenix is to provide access to personalized, career relevant and affordable higher education and to empower our primarily working adult students to develop the knowledge and skills they need to excel in their careers and make a positive impact on their communities. We believe that when we put our students first—by understanding their unique needs, offering flexible learning solutions, and providing proactive and empathetic support at every step—we enable not only their success but also the success of our entire organization.

Higher education continues to be one of the most powerful drivers of upward mobility in the United States, and adult learners represent one of the fastest-growing segments in the post-secondary education market. At the University of Phoenix, the average age of our students is 37. Nearly two-thirds care for dependents at home, and most are working while pursuing their education. The majority are also first-generation college students. These individuals face unique challenges and require a different kind of support system. That's why we've purpose-built our platform to offer each student a flexible, personalized, and affordable learning experience aligned directly to in-demand careers.

Since we were last a public company in 2017, we have been unwaveringly focused on achieving the core mission of the University, and I am proud of the meaningful improvements we have realized in student outcomes, including double-digit improvements in both student retention and graduation rate.

We have strengthened our academic offerings by aligning 100% of our curricula to career-relevant skills that matter to employers and ensuring that all of our programs are in disciplines that are in high demand in today's economy. Our career-relevant education is bolstered by our faculty, a group at the core of our University comprised of professionals who actively work in the fields they teach and bring on average 29 years of industry experience and 16 years of teaching at the University. This fusion of academic instruction in high demand fields with practical expertise creates a powerful, relevant, and career-aligned learning environment that sets our students up for success.

We have made significant investments in our technology platform, which leverages automation, artificial intelligence and proprietary machine learning models to continuously improve our student outcomes, increase student satisfaction and improve operational efficiency. These investments are helping us better understand the needs of our students and provide more personalized learning pathways to improve student outcomes both inside and outside the classroom, while at the same time streamlining administrative processes to support our ongoing growth.

We have invested in career mobility solutions for our students and employer alliances. Listening closely to our students, we understand that in an increasingly complex professional landscape our students need more than knowledge and skills—they need help navigating their career journey. Our investments in personalization for our

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students now expand beyond their educational journey to their career journey. In 2020, the University made its Career Services for Life Promise and we continue to strive to be a lifelong partner to our students—helping them find the most direct path to accomplishing their educational and career goals.

We believe the steps we've taken have positioned the University of Phoenix for a bright future, and we are excited about the next chapter of our journey as we continue to transform lives through accessible, high-quality education. We look forward to the continued growth and success of our University.

Sincerely,

Chris Lynne

President, University of Phoenix and CEO, Phoenix Education Partners, Inc.

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**PROSPECTUS SUMMARY** 

*The following summary contains selected information about us and about this offering. It does not contain all of the information that is important to you and your investment decision. Before you make an investment decision, you should review this prospectus in its entirety, including matters set forth under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes thereto included elsewhere in this prospectus. Some of the statements in the following summary constitute forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements."* 

**Our Mission** 

To provide access to higher education opportunities that enable students to develop the knowledge and skills necessary to achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities.

**Our Business** 

We are a mission-driven organization operating at the forefront of the rapidly evolving post-secondary education market. As one of the largest online education providers and a pioneer in our field, we benefit from the dynamic interplay between technological innovation, education, employment and economic trends. The demands of the modern workforce are continually shifting, and we are focused on transforming the way individuals achieve their educational and career aspirations while balancing the unique demands of being an adult learner. We are focused on delivering a personalized, career-relevant and affordable education to our students through our flexible learning model, skills-aligned curriculum and accessible tuition costs. We have created purpose-built platforms that leverage an artificial intelligence ("AI")-ready data infrastructure and technology stack to enhance the student experience, increase student success and improve the connectivity between students, educators and employers.

The University of Phoenix was founded in 1976 and has been continuously accredited since 1978 by the Higher Learning Commission ("HLC"), an institutional accrediting agency recognized by the U.S. Department of Education. In our nearly five decades of operation, we have served more than 1.1 million alumni (including those who have completed non-degree certificates) and conferred nearly 1.3 million degrees. According to Forbes, we were the university with the highest number of graduates employed at the top 20 Fortune 500 companies as of September 2021.

Our student body consists primarily of working adults seeking to advance their careers. Adult learners represent an attractive and growing sub-segment of the higher education market. However, they face unique challenges that are not addressed by traditional programs designed for 18- to 22-year-olds, including the time constraints and responsibilities of work, community and caring for dependents. As a result, these students can significantly benefit from an education solution tailored to their needs. We are dedicated to these adult learners, and we are constantly evolving the flexible, asynchronous learning models and the robust technology solutions designed to meet their unique needs. We believe we provide a differentiated value proposition to both students and employers. Both inside and outside of the classroom, our purpose is to help our students achieve their educational and career goals and to assist employers in upskilling their employees.

For the fiscal year ended August 31, 2024, the University's Average Total Degreed Enrollment was 78,900, including 64,100 undergraduate and 14,800 graduate students. During the first nine months of fiscal year 2025, Average Total Degreed Enrollment increased to 82,700. See "*—Summary Consolidated Financial and Other Data*" for the definition of Average Total Degreed Enrollment. Students either enroll at the University independently or have the option to enroll through one of our more than 2,500 employer relationships. Many of

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our students receive discounted tuition benefits under programs offered through our employer relationships, which are classified as business-to-business, or "B2B," enrollment. These include students who enroll in the University through employer-provided programs, as well as students who enroll independently but are employees of employers with whom we have an employer relationship. We view B2B enrollments as a significant opportunity for further growth. B2B enrollments represented 13,300 Average Total Degreed Enrollment (20% of the University's Average Total Degreed Enrollment) in fiscal year 2022 and 23,300 Average Total Degreed Enrollment (30% of the University's Average Total Degreed Enrollment) in fiscal year 2024, reflecting a 32% CAGR.

The University currently offers 72 degree-granting and 33 non-degree certificate programs across a wide range of disciplines. Our degree-granting programs represented approximately 97% of our net revenue for fiscal year 2024 and serve a diverse set of students who are seeking to improve their career opportunities:

Average Total Degreed Enrollment by degree type for fiscal year 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bachelor's: 70%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Master's: 16%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Associate's: 11%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Doctoral: 3%

Degree completions by discipline for fiscal year 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business and IT: 63%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Health Professions: 15%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Social and Behavioral Sciences: 12%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Education: 4%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nursing: 4%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Doctoral Studies: 2%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• General Studies: less than 1%

Of the University's enrollment during fiscal year 2024, subject to data availability for each metric:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 76% are currently employed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 95% of new students are over the age of 22, with an average age of 37;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 64% care for dependents at home;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 61% are first-generation college students;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 62% of students who completed an optional survey identify as members of a minority group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 71% are female.

Our non-degree offerings for students and employers represent the remaining portion of net revenue and are a growing priority for the University. These non-degree offerings include shorter credit-bearing certificates and non-credit professional development courses that provide students with critical skills for career advancement and benefit employers by upskilling their employees.

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We are also developing new talent solutions programs for employers, including: (i) Talent Source, a talent-sourcing platform that connects employers with students whose skills profiles align with job postings and (ii) Skillmore, an AI-powered tool that scans an employer's inventory of sought-after skills and designs development pathways to internal job opportunities.

**Our Market Opportunity** 

According to the U.S. Department of Education's National Center for Education Statistics ("NCES"), a total of 19.0 million students were enrolled in degree-granting, post-secondary institutions in fall 2023. This market represented $813 billion of revenue during the 2022-2023 school year. Tuition and fees make up $181 billion of this $813 billion market opportunity. Additionally, according to various studies, including the U.S. Census Bureau's 2024 Current Population Survey ("CPS"), graduates with a bachelor's degree or an advanced degree, on average, tend to have better career outcomes than persons with only a high school diploma, which drives continuing demand for higher education.

We believe demand for higher education will remain strong given its personal and economic benefits. Adult, online learners represent a particularly significant and growing segment of this market due to the following factors:

***Adult Learner Market Represents a Significant Opportunity.*** According to the U.S. Census Bureau, as of 2023, 83.8 million adults in the United States aged 25 or older did not have any college-level education. As of the start of the 2023-24 academic year, the working age population with some college-education but no credentials ("SCNC") under 65 was comprised of 37.6 million people, an increase of 2.2% from the start of the prior academic year. The Georgetown University Center on Education and the Workforce estimates 72% of jobs in the U.S. will require a post-secondary education and/or training by 2031, and a recent Gallup-Lumina survey indicated adult learner interest in pursuing higher education has been increasing. A 2023 survey by the Society for Human Resource Management indicated that 48% of employers currently offer some form of undergraduate or graduate tuition assistance for their workers. We believe the University is well-positioned to serve this market with our distinctive learning experience tailored to the unique needs of these working adult students.

***Evolving Workforce Drives Market Demand for Skills-Based Education.*** The extensive impact of technology and the transition to a knowledge-based economy are driving transformative shifts in the U.S. workforce. The U.S. Bureau of Labor Statistics projects that from 2023 to 2033, the U.S. labor market will see a net gain of 6.7 million jobs tied to the expansion of new technologies. Similarly, the World Economic Forum predicts that by 2030, 39% of workers will have their jobs disrupted and 59% of workers will require training for new skills. We believe our skills-aligned, career-relevant curriculum, including our growing non-degree offerings, will be critical in ensuring success for future students and our more than 1.1 million alumni. Corporations in the United States spent more than $101 billion on training in 2023, according to Training Magazine's 42nd Annual Training Industry Report. A 2023 survey by the Society for Human Resource Management indicated that 48% of employers currently offer some form of undergraduate or graduate tuition assistance for their workers. We believe these factors provide a significant market opportunity as we expand discussions with employers beyond our degree offerings.

***Evolving Preferences of Today's Students Drives Growth in the Online Learning Market.*** The growing adoption of online learning in higher education has been driven by the market demand for (i) career-orientation, (ii) flexibility and personalization, and (iii) increased affordability compared to traditional institutions. These factors are especially important for working adults who manage multiple competing priorities and responsibilities. Education Dynamics' most recent survey, conducted in January 2024, stated that more than "40% of online students surveyed enroll primarily to start a new career to earn more money, while another 22% enroll to start a new career more aligned with their interests." In total, 98% of respondents indicated that they enrolled for a career-focused reason. Online learning also provides a more accessible and affordable learning

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**Our Transformation** 

In February 2017, funds affiliated with Apollo and Vistria acquired our predecessor company with a vision to transform the University into a smaller and more focused institution that would be better positioned to educate and re-skill its working adult students*—*the original legacy of founder John Sperling. Since the acquisition, we have strengthened the University in several ways to drive long-term value for all stakeholders:

***Realigned the University's Strategic Direction.*** We completed a comprehensive transformation of our academic course offerings, aligning 100% of our courses in programs open for enrollment to career-relevant skills. We tailored each degree program to facilitate the learning of career-relevant skills sought by employers as determined by programmatic accreditors, employers, advisory councils, government job definitions and numerous other sources*.*** To increase our focus on the University and its mission, we exited non-core programs and divested the other operations of our predecessor company, including several international schools that shared administrative resources with the University. While maintaining our main campus in Phoenix, Arizona, we exited all of our other campuses. Our multi-year transformation efforts to actively increase the focus of the University drove much of the significant enrollment and revenue declines experienced since 2010, which have now stabilized. From fiscal year 2022 to fiscal year 2024, both net revenue and Average Total Degreed Enrollment increased at a 9% CAGR.

***Strengthened Our Academic Offerings.*** We improved learning outcomes by helping our students master career-relevant skills and by selectively integrating adaptive learning into a wide range of courses. We assess our students' skills for ongoing competency, with students earning "skills badges" by demonstrating mastery, and skills badges are granted to students upon the completion of a course or, as applicable, a series of courses. To date, our students have earned more than 800,000 skills badges, demonstrating their mastery of competencies directly applicable to job requirements. We enhanced pathways to degree completion by redesigning our degree programs to permit greater use of transfer credits. We also launched competency-based programs that provide greater flexibility for students with prior relevant experience to accelerate their progress. Continuous innovation of curriculum and teaching methods, including a redesign of our math courses, has made these courses more accessible and applicable to real-world scenarios. Math is often a significant hurdle for adult learners, and these actions reduced the combined withdrawal and fail rates for these courses by 10%. Our efforts to reinvent key aspects of adult learning have received significant external recognition from multiple organizations, including EC-Council and Gartner, highlighting the impact of these initiatives on student success and career preparation.

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***Enhanced the Management Team and Harnessed our Deep Talent.*** We hired highly experienced leaders to spearhead this transformation. In addition to appointing Christopher Lynne as President in December 2022, we also hired key personnel across critical business functions such as academics, finance, information technology and marketing.

***Digitized Career Mobility Tools and Invested in Our Technology Platform.*** Over the past five years, we have invested approximately $500 million in technology resources, leveraging AI across the student journey to improve retention, student-facing capabilities, and internal efficiency. We define AI as machine learning models that autonomously learn from continuously-updated data, extending beyond traditional rule-based automation. Over the last decade, we have implemented AI into core processes and refined these models for incremental improvements. Our AI-enabled enterprise platform stack includes certain long-standing uses of AI, including our student engagement monitoring model, which has been operational for eight years and helps identify at-risk students and trigger timely interventions, our AI assistant, which is widely deployed to address student-facing financial aid questions, and AI-based SMS prospect nurturing, which allows us to reduce enrollment advisor load. Further leveraging our mature technology foundation, we have started to develop and deploy certain advanced AI features such as our job-match algorithms, which align students with suitable job openings, our large language model-based phone agent, which provides phone-based complex technical support for our employees, and certain solutions for our B2B customers, which are designed to structure job competencies and optimize hiring workflows.

***Instituted Career Services for Life.*** As part of our investment in student services, we offer career services to all active students and instituted Career Services for Life for all graduates, providing free lifetime access to career services and our suite of digital career tools.

***Invested in Data-Driven, Responsible Marketing.*** We exited the low-performing affiliate lead generators channel and instead utilize analytics and performance-based media which have improved enrollment conversion. Through organic channels (e.g., search engine optimization), paid channels (e.g., television and paid search) and earned media, we have achieved industry-leading brand awareness and consideration, resulting in consistent enrollment growth and lower per-student acquisition costs over multiple years.

***Improved Operational Efficiency.*** Between 2016 and 2024, we reduced overhead by more than $100 million by rationalizing our operating structure and decommissioning legacy technology systems in favor of a digital-first technology platform with embedded AI / machine learning tools.

***Transformation Resulted in Significant Student Outcome Improvements.*** These actions have significantly strengthened the University's position, leading to material improvements in the following student outcomes:

---

| | | |
|:---|:---|:---|
|  | **Before<br>Transformation** | **After<br>Transformation** |
|  ***Higher Student Satisfaction<sup>(1)</sup>*** | 69.8%<br> (February 2017) | 82.3%<br> (May 2025) |
|  ***Improved Student Retention<sup>(2)</sup>*** | 59.7%<br> (2016/2017 cohort) | 71.5%<br> (2023/2024 cohort) |
|  ***Reduced 3-Year Student Loan Default Rates<sup>(3)</sup>*** | 13.3%<br> (2013 cohort) | 8.7%<br> (2018 cohort) |
|  ***Increased 6-Year Graduation Rates<sup>(4)</sup>*** | 25%<br> (2015/2016 cohort) | 37%<br> (2018/2019 cohort) |

---

(1) Based on an internally administered satisfaction survey of students and represents the percentage of
students rating a 9 or 10 on a 10-point scale. We surveyed approximately 15,000 students in February 2017 and approximately 21,000 students in May 2025. In the February 2017 survey, students were asked to rate
their likelihood to recommend the University to a colleague, friend or family member who may be interested in

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attending the University; and in the May 2025 survey, students were asked to rate their likelihood to recommend the University to a friend, family member, or co-worker who is considering attending a college or university.

(2) Student retention during a cohort year (federal award year from July 1 to June 30) is calculated as
(i) the number of confirmed undergraduate students who both started a degree or non-degree certificate program and posted attendance in a course within such program (whether or not the course is ultimately completed or passed) as of a specified
date (as described below), divided by (ii) the number of confirmed undergraduate students who started such a program, expressed as a percentage. The University offers traditional undergraduate degree and non-degree certificate programs as well
as two different types of undergraduate competency-based education degree programs, identified as competency-based ("CB") degree programs and direct assessment ("DA") degree programs. Each course within a traditional
undergraduate degree or non-degree certificate program is 35 days in length; a student in such a program is considered "retained" if he or she posted attendance in his or her fourth course within 175 days of starting the program. CB
courses are taken in 16-week blocks; a student in a CB program is considered "retained" if he or she posted attendance by the end of the third week of his or her second block of courses in such program. DA courses are taken in 12-week
terms; a student in a DA program is considered "retained" if he or she was in an active enrollment status as of the fifteenth day of his or her second term of such program. For purposes of each type of program, a student is deemed to
have "posted attendance" in a course when the student completes at least one academic-related activity, such as participating in an online discussion on the course website, submitting an assignment or taking a required quiz or exam that
is graded. The University developed its student retention rate formula in 2014 to evaluate and track performance in the University's undergraduate degree programs. In 2019, the University modified the metric to include undergraduate students
enrolled in non-degree certificate programs as well. As a result, the student retention rate for the 2016/2017 cohort includes only students enrolled in undergraduate degree programs, whereas the rate for the 2023/2024 cohort includes students
enrolled in both undergraduate degree and non-degree certificate programs. For comparison, the student retention rate for just undergraduate degree programs for the 2023/2024 cohort was 72.9%.

(3) Based on the U.S. Department of Education's Cohort Default Rate for the federal fiscal years
("CDR FY") 2013 and 2018. Each cohort is a group of students who first enter into student loan repayment during a federal fiscal year (ending September 30), and the cohort default rate is the percentage of that cohort who default on
their payment by the end of the second full year after such repayment start date. In CDR FY 2013, the University's official cohort default rate was 13.3% and it has decreased or remained flat every year since. For CDR FY 2018 (partially
impacted by the COVID-related federal loan repayment pause which began in 2020), the University's official cohort default rate was 8.7%. The University's official CDR FY 2021 (the most recent available official rate) was 0.0%,
principally due to the U.S. Department of Education's federal loan repayment pause initiated in response to the COVID-19 pandemic, which expired in September 2023. See
" *Business*  ***—*** *Regulatory Environment*  ***—*** *Regulation of Student Financial Aid Programs*  ***—*** *Student Loan Cohort Default Rates.* "

(4) See definition of graduation rate below.

The University serves students with multiple risk factors identified by the U.S. Department of Education that affect completion rates. These risk factors include having children or dependents at home, being a single parent, being a first-generation college student, and being a recipient of the Federal Pell grant. On average, students attending the University exhibit several of these risk factors, some of which are not addressed by traditional programs designed for 18- to 22-year-olds. Even while primarily serving these at-risk students, the University's student outcomes compare favorably against other for-profit institutions that are owned by publicly traded companies and have comparable student demographics to the University. The following table shows the most recent publicly available graduation data (defined as the Integrated Postsecondary Education Data System ("IPEDS") Outcome Measures 6-year rate for all undergraduates) for the undergraduate cohort who matriculated at the University and for-profit peer institutions that are owned by publicly traded companies as of the date of

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this prospectus between July 1, 2015 and June 30, 2016 (the "2015/2016 cohort") and completed an undergraduate credential by August 31, 2021. While the graduation rate for the more recent undergraduate cohort is not yet publicly available for our peer institutions, the University evaluated its cohort of undergraduates who matriculated between July 1, 2018 and June 30, 2019 (the "2018/2019 cohort") and completed an undergraduate credential by August 31, 2024. Our improvement in retention is reflected in this cohort's graduation rate increase, as compared to the 2015/2016 cohort.

![LOGO](g876348g14m14.jpg)

(1) Represents the average of the 6-year graduation rates of the 2015/2016 cohort for American InterContinental
University System, Capella University, Colorado Technical University, Strayer University and Walden University.

***Strong Financial Performance.*** Our transformation and resulting significant improvement in student outcomes have also produced material improvements in financial results. Our net revenue has increased from $801 million in fiscal year 2022 to $950 million in fiscal year 2024 and our net income has increased from $52 million in fiscal year 2022 to $115 million in fiscal year 2024, which represented a 570 basis point increase in net income margin from 6.4% in fiscal year 2022 to 12.1% in fiscal year 2024. Adjusted EBITDA increased from $142 million in fiscal year 2022 to $229 million in fiscal year 2024, which represented a 640 basis point increase in Adjusted EBITDA Margin from 17.7% in fiscal year 2022 to 24.1% in fiscal year 2024. Our net revenue has increased from $710 million in the first nine months of fiscal year 2024 to $750 million in the first nine months of fiscal year 2025, and our net income has increased from $105 million in the first nine months of fiscal year 2024 to $118 million in the first nine months of fiscal year 2025, which represented a 90 basis point increase in net income margin from 14.8% in the first nine months of fiscal year 2024 to 15.7% in the first nine months of fiscal year 2025. Adjusted EBITDA was flat at $187 million in both the first nine months of fiscal year 2024 and the first nine months of fiscal year 2025, which represented a 140 basis point decrease in Adjusted EBITDA Margin from 26.4% in the first nine months of fiscal year 2024 to 25.0% in the first nine months of fiscal year 2025. The decrease in Adjusted EBITDA Margin during the first nine months of fiscal year 2025 compared to the prior year period was principally attributable to a temporary increase in costs during the first nine months of fiscal year 2025 as we address financial aid processing changes following the Department of Education's implementation of an updated financial aid application form and transition to disbursing financial aid

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by course (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations*"). Additionally, see "*—Summary Consolidated Financial and Other Data*" and *"Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures and Reconciliations"* for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of net income to Adjusted EBITDA.

**Our Competitive Strengths** 

We believe we are well-positioned within our market to deliver strong student outcomes and continued stable growth based on the following competitive strengths:

***Personalized Service and Instruction.*** Our differentiated digital delivery capabilities, integrated with our dedicated live support, enable us to offer a highly personalized and flexible learning and service experience to our students. Our flexible, asynchronous, student-centric instructional model is tailored to the unique demands of our working adult students, and we have a proven track record of rapidly testing and implementing new innovations, including adaptive learning models, the launch of competency-based programs, curricular enhancements (e.g., our redesign of required mathematics courses resulting in 10% improvements to student progression), and the creation of courses tailored for mobile devices. Each student has easy access to academic counseling, school-related financial counseling, tutoring resources, technology support, career coaching and career services, with a focus on improving student outcomes.

***Career-Relevant Education.*** Each of our academic offerings is designed with a focus on career-relevance, and we believe we are the only university to have all courses in active degree programs aligned to skills that are demonstrated via authentic assessments that measure a student's attainment of such skills. Our approximately 100 programs are aligned with more than 300 careers, of which more than 90% are careers in growing fields according to the U.S. Bureau of Labor Statistics' Employment Projections (2023–2033). Both our existing offerings and new program pipeline are focused on preparing students for employment opportunities in fields that project higher-than-average job growth such as healthcare, information technology and business. Each course tests for at least three skills that have career-relevant applications in the workforce and each skill is assessed against an employer-informed rubric. Skills badges are granted to students upon the completion of a course, or as applicable, a series of courses, and these badges can be shared via LinkedIn and certain other jobs websites. We have issued more than 800,000 University of Phoenix skills badges to date.

***Affordable and Accessible Tuition.*** We provide personalized education at affordable prices relative to our peers and have not raised our tuition rates since 2018. According to the January 2024 Noel Levitz Priority Students for Online Learners ("PSOL") survey, 80% of our students stated that tuition paid was a worthwhile investment, which is 10% higher than the PSOL national benchmark of 70%. For the 2023-2024 academic year, our undergraduate degree program annual tuition and fees of $10,912 was below the average annual undergraduate tuition and fees for the 2022-2023 academic year for private, non-profit institutions ($40,700) and private, for-profit institutions ($18,200) and just slightly above the average annual undergraduate in-state tuition and fees for the 2022-2023 academic year for public institutions ($9,800). Additionally, our Tuition Price Guarantee, launched in 2018 and under which a student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date, gives students certainty of their tuition price throughout the duration of their programs. We also make it easier for students to reduce both their time to graduate and their tuition costs through alternative credits, prior learning assessments and national testing programs, with participating students on average receiving $4,845, $4,055 and $2,150 in tuition savings from these measures respectively in fiscal year 2024. Finally, we expanded the number of employer relationships participating in our tuition assistance program, which lowers or even eliminates tuition costs for their employees.

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***Large University Scale and Leading Brand.*** We are one of the largest universities in the United States (ranking fifth among public, private for-profit and private non-profit 4-year, 2-year and less-than 2-year universities based on IPEDS enrollment surveys), with Average Total Degreed Enrollment of 78,900 in fiscal year 2024 under a single university brand. The strength and recognition of our brand is demonstrated by our industry-leading social media presence and an aided awareness score and net consideration score exceeding those of our peers in the online education sector. This combination of awareness and consideration drives higher engagement with prospective students, including fourteen million unique annual visitors to our phoenix.edu website.

***Tech-Enabled Platforms with Robust Data Foundation.*** Through our scale and approximately 50 years of experience serving adult learners, we believe the University has created one of the world's largest digital repositories of data on student behaviors. Leveraging our two-petabyte data lake and highly skilled engineers has allowed us to develop several proprietary analytics models to continuously improve coursework development, support at-risk students, customize student outreach strategies, develop student service innovations, and improve our enrollment process. This infrastructure underpins our AI initiatives, consolidating millions of annual interactions (e.g., calls and portal sessions) for near real-time processing. Its stability and extensibility allow us to support both student and staff-facing services and B2B solutions with confidence. Our data lake ingests both structured and unstructured information (e.g., transcribed calls, session replays and website interactions) and streams it in near real-time, providing continuous feedback loops for model refinement. We have implemented a governance process concerning the deployment of AI. We also have policies and processes around data validation, encryption and compliance. These policies and processes help provide a reliable foundation for existing models and for ongoing AI innovation. We believe the scale of our dataset is difficult to replicate and will continue to serve as a valuable resource as we continue to adopt AI and leverage automation throughout the student experience. These underlying platforms have enabled multiple years of significant improvements in student retention, student satisfaction and cost reduction, which we expect to continue.

***Our Career Services for Life Promise.*** We offer career services to our active students and lifetime access to our career services for graduates. This includes student support services, such as career coaching (including job search support, resume building, and preparation for salary negotiation) and resources to support students in building professional relationships, exploring career opportunities, preparing for interviews, and developing a strong personal brand. We believe our suite of digital career tools also provides us with a competitive advantage. Our Career Navigator platform provides digital tools for career and job exploration, a personalized skill profile, job recommendation engine and career planning tools. According to the January 2024 Noel Levitz Priority Students for Online Learners survey, 82% of our students stated that Online Career Services are available at the University, 11% higher than the PSOL national benchmark of 71%.

***Strong Employer Relationships.*** We are well-positioned to continue to grow our presence in the corporate-sponsored training and education market. Our aim is to become a highly integrated skills development provider, and today we have more than 2,500 corporate employer relationships. These represent a valuable opportunity to diversify our student population and net revenue, drive growth and reduce acquisition costs. Our tuition assistance programs enable employers to subsidize or reimburse the cost of their employees' education. These students also generally have higher retention and graduation rates. Since fiscal year 2022, we have increased B2B enrollment at a 32% CAGR, from 13,300 Average Total Degreed Enrollment (20% of the University's Average Total Degreed Enrollment) in fiscal year 2022 to 23,300 Average Total Degreed Enrollment (30% of the University's Average Total Degreed Enrollment) in fiscal year 2024.

***Focus on Regulatory Compliance.*** We have a consistent track record of regulatory compliance and have successfully completed a significant number of ordinary course evaluations, program reviews and compliance audits as a financial aid eligible institution. This history has contributed to strong, established relationships with our academic accreditors including the Higher Learning Commission, state regulators and various federal agencies. To uphold our commitment to honesty, integrity and transparency, the University employs a team of

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approximately 100 full-time professionals solely dedicated to regulatory compliance, student complaint resolutions and quality control. We have also developed robust compliance measures that are often recognized by regulators and shared with other universities as best practices. For example, we record the vast majority of calls with prospective students, where permissible, and review each interaction with a sophisticated, tech-enabled monitoring system to ensure our enrollment advisors are meeting all regulatory requirements. Furthermore, we derive a substantial portion of our revenue from Title IV funds, and like all other proprietary institutions of higher education, our continued eligibility to participate in Title IV programs requires compliance with the so-called "90/10 Rule" under the Higher Education Act of 1965, as it has been amended and reauthorized from time to time (the "Higher Education Act"). We derived approximately 88% of our cash basis revenue from Title IV funds in our most recent fiscal year. Our focus on regulatory compliance extends to compliance with respect to the 90/10 Rule. See "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—The University may lose eligibility to participate in Title IV programs if the percentage of our revenue derived from federal funding sources is too high.*"

***Strong Management and Experienced Staff Dedicated to a Student-Centric Culture.*** Our seasoned management team combines broad experience across the education and consumer services landscape with deep, personal connection and commitment to higher education for working adults. Led by Christopher Lynne, the University's President, our senior leadership team benefits from more than 130 years of cumulative professional experience in education. Our long-tenured staff also brings years of experience executing on the University's student-first mission with our 3,400 employees having an average of 11 years with the University. Additionally, our 2,300 faculty members have an average of 29 years of professional work experience and 16 years of teaching experience at the University. Our management team has successfully transformed our business, and we believe they have the vision and experience to successfully drive our future growth and profitability.

**Our Growth Strategy** 

We believe that we are still in the early stages of realizing the benefits of our transformation, and we intend to leverage our competitive strengths by pursuing the following strategies:

***Continue to Improve Student Retention and Outcomes.*** Our students are our focus, and we will continue to develop tools and resources to support their success. This starts at pre-enrollment, with tools to enhance the personalization of the onboarding process and facilitate the use of prior learning and transfer credits to reduce the time and cost of education. We expect to support enrolled students with Next Best Action models, AI agents and strategic human interventions that optimize their learning path alongside AI-based knowledge centers that are responsive to their individual learning and service needs. We expect these solutions to further improve retention and graduation rates, driving sustainable growth in the future.

***Rapidly Evolve the Student and Employer Experience Platforms.*** The University has implemented a highly dynamic product development capability comprising more than 40 agile teams from all functional groups within the University. These teams dynamically assess critical employer and student needs, quickly develop innovative product solutions to address those needs, and then immediately allocate staffing to deliver the most impactful product capabilities. Innovative digital products, such as Savings Explorer and Phoebe Virtual Assistant, aid prospective students in identifying ways to complete their degrees faster and more affordably. Enrolled students are able to leverage resources such as Talent Source, which dynamically connects employers with our students and alumni, and job and course recommendation engines, which recommend relevant jobs and courses to students based on their current skills profile and skills required for their job advancement interests. The resources provided enhance the University's value proposition to both students and employers.

***Expand Employer Relationships.*** Given the University's career-focused programs and learning platform tailored for working adults, we believe we are well-positioned to continue to grow our presence in the corporate-

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sponsored training and education market, which represented 30% of our Average Total Degreed Enrollment in fiscal year 2024. We see significant headroom for growth in this area, given the approximately 18,400 employers in the United States in target industries that employ approximately 100 million employees. We have driven B2B growth through our more than 2,500 employer relationships, businesses that employ approximately 40 million employees, and we have begun to expand discussions with employers beyond our degree offerings to include our comprehensive suite of talent development solutions, including Skillmore, Talent Source and professional development offerings. While the development of our talent development solutions is in the early stages, we expect these solutions to broaden our relationships with key employers.

***Continue to Drive Efficiency and Effectiveness Across Marketing and Enrollment.*** We focus on lowering our cost to acquire new students by using advanced analytics at every stage of the enrollment process, from efficiently generating demand across marketing channels to improving conversion of that demand through increased personalization and automation. Our robust analytical testing approach for driving performance with our media partners and our internally managed marketing channels enable us to identify prospective students who are more prepared for our academic environment. We continue to invest in marketing and advertising optimization, leveraging algorithmic adjustments to improve efficiencies across all marketing channels and increase conversion, while ensuring transparency and clarity for our prospective students throughout the marketing and enrollment process.

***Increase Operating Margins and Operating Cash Flow.*** We believe that successfully executing our growth plan will increase operating margins and cash flows, while supporting further investments in student services. Our fixed cost structure results in meaningful operating leverage, with incremental revenue gains supporting expanded profitability and margin improvement. Key efforts in the near-term include leveraging our scalable, technology-enabled platform to enhance our onboarding practices, increase efficiency of our student support, and increase retention and student satisfaction by reinvesting into student support services and academics.

***Continue to Evolve into Career Mobility Solutions Provider.*** As employers continue to realize that skills are the new currency of talent selection and progression, we are focused on expanding beyond our degree offerings to become an integrated talent development provider. We aim to provide solutions for critical talent productivity, mobility and sourcing needs. We have developed a comprehensive suite of new products including Skillmore, Talent Source, and professional development offerings to assist employers in developing skills pathways to upskill and reskill their employees into critical jobs. Skillmore is a new AI-based skills matching platform that allows employers and employees to understand critical skills needs within the organization and to create personalized learning pathways. In July 2024, we announced the collaborative testing of a skills-based job search platform, Talent Source, designed to match employer skill needs with a talent pool of participating students and alumni. We believe these solutions will increase the value proposition of the University to employers and prospective students, while also increasing students' success and outcomes.

Realizing the benefits of our competitive strengths and growth strategy are subject to the risks described below under "*—Risk Factors Summary*" and the section titled "*Risk Factors*," which you should read before deciding to invest in our common stock.

**Recent Developments** 

**Preliminary Unaudited Consolidated Financial and Other Data for the Three Months and Year Ended August 31, 2025** 

The unaudited estimated consolidated financial and other data set forth below are preliminary and subject to revision based upon the completion of our year-end financial closing process as well as the related external audit of our consolidated financial statements for the fiscal year ended August 31, 2025. These results are based on

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information available to us as of the date of this prospectus and are not a comprehensive statement of our financial results for the periods presented. Once the year-end financial closing process and external audit are completed, we may report financial and operational results that could differ from our preliminary estimates, and the differences could be material. See "*Cautionary Note Regarding Forward—Looking Statements*" and "*Risk Factors*."

The preliminary financial and other data set forth below have been prepared by, and are the responsibility of, our management. Deloitte & Touche LLP has not audited, reviewed, compiled or performed any procedures with respect to the following preliminary financial and other data. Accordingly, Deloitte & Touche LLP does not express an opinion or any other form of assurance with respect thereto.

The following information and estimates contain forward-looking statements. While we believe that such information and estimates are based on reasonable assumptions, our actual results may vary, and such variations may be material. Factors that could cause the preliminary financial and other data and estimates to differ include, but are not limited to: (i) additional adjustments in the calculation of, or application of accounting principles for, the financial results and other data for the fiscal year ended August 31, 2025; (ii) discovery of new information that affects accounting estimates, management judgment, or impacts valuation methodologies underlying these estimated results; and (iii) the completion of our audit for the fiscal year ended August 31, 2025.

We have not yet finalized our full financial results and other data for the fiscal year ended August 31, 2025. However, we anticipate our Average Total Degreed Enrollment for fiscal year 2025 will fall within the low and high range of and , as compared to Average Total Degreed Enrollment of approximately 78,900 for fiscal year 2024. See "—*Summary Consolidated Financial and Other Data*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*—*Key Performance Metrics*" for the definition of Average Total Degreed Enrollment.

Additionally, we anticipate net revenue, net income, and Adjusted EBITDA for the three months and fiscal year ended August 31, 2025 to fall within the ranges shown below, as compared to the respective prior year periods:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **% Change** | **% Change** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
| | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** | **% Change** | **% Change** | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** |
| **(in thousands)** | **Low** | **High** | **Actual** | **Low** | **High** | **Low** | **High** | **Actual** |
|  Net revenue | $| $| $240216% |  |  | $| $| $950015% |
|  Net income | $| $| $10019% |  |  | $| $| $115148% |
|  Adjusted EBITDA<sup>(1)</sup> | $| $| $41626% |  |  | $| $| $229053% |

---

(1) Adjusted EBITDA is a non-GAAP measure. See "*—Summary Consolidated Financial and Other Data*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures and Reconciliations* "**  for how we define Adjusted EBITDA, the reasons
why we include this measure and certain limitations associated with such metric.

The following table presents a reconciliation of net income to Adjusted EBITDA for the three months and fiscal year ended August 31, 2025 (at the low end and high end of the estimated net income and Adjusted EBITDA ranges set forth above) and the respective prior year periods:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
|  | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** |
| **(in thousands)** | **Low** | **High** | **Actual** | **Low** | **High** | **Actual** |
|  **Net income** | $| $| $10019 | $| $| $115148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<sup>(a)</sup> |  |  | 2679 |  |  | 15201 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
|  | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** | **August 31,**<br>**2025** | **August 31,**<br>**2025** | **August 31,<br>2024** |
| **(in thousands)** | **Low** | **High** | **Actual** | **Low** | **High** | **Actual** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense<sup>(b)</sup> |  |  | 6012 |  |  | 12530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on interest rate swaptions<sup>(c)</sup> |  |  |  |  |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses<sup>(d)</sup> |  |  | 32 |  |  | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense<sup>(e)</sup> |  |  | 1150 |  |  | 5359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense<sup>(f)</sup> |  |  | 2048 |  |  | 5775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization |  |  | 4758 |  |  | 21056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net of interest expense |  |  | (4375) |  |  | (15730) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes |  |  | 17679 |  |  | 52093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(g)</sup> |  |  | 1624 |  |  | 4682 |
|  **Adjusted EBITDA** | $| $| $41626 | $| $| $229053 |

---

(a) Restructuring lease expense represents non-cancelable lease obligations, including any offset from sublease
income, and other related expenses for leased space we have exited as part of our ground campus and administrative space rationalization plans. In 2012, as a key component of the University's transformation initiatives, the University began
the process of completing the orderly closure of its ground campuses, as more enrolling students made the choice to take their programs online. The University completed the orderly closure of its campus locations in early fiscal year 2025, with only
one physical location, in Phoenix, Arizona, currently enrolling new students. Additionally, as of August 31, 2023, pursuant to its space rationalization plans, the University had exited 19 floors of its 22-floor administrative office buildings.
Refer to Note 2 to our audited consolidated financial statements and Note 2 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional information on restructuring lease expense.

(b) Strategic alternatives expense consists of costs associated with our pursuit of strategic alternatives for
the future ownership of the University during such periods. This includes costs incurred for this offering and costs incurred pursuing a strategic transaction with Four Three Education, Inc., an Idaho non-profit corporation ("Four
Three"), affiliated with The Regents of the University of Idaho ("UofI"), which we are no longer pursuing. The preliminary unaudited estimated expense for the three months and fiscal year ended August, 31, 2025 includes a $12.2
million termination fee to UofI paid in June 2025. Refer to Note 1 to our audited consolidated financial statements and Note 1 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional
information.

(c) In July 2023, we purchased two interest rate swaptions for an aggregate premium of $9 million to hedge
interest rate risk associated with the debt financing we expected to be used for the strategic transaction with Four Three. The swaptions were reported at fair value on our consolidated balance sheets until they expired out of the money during
fiscal year 2024. As a result, we recognized a $12.7 million loss in fiscal year 2024 for associated changes in fair value.

(d) Represents non-cash impairment charges and asset disposal losses.

(e) Litigation charges and regulatory expense consists of expense recognized for loss contingencies associated
with litigation and certain expenses associated with regulatory matters, in each case, that we believe are not indicative of our ongoing operations, including the items listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.2 million and $4.8 million in the three months and fiscal year ended August 31, 2024, respectively,
associated with a multi-year insurance policy pertaining to borrower defense to repayment claims. Refer to Note 11 to our audited consolidated financial statements and Note 13 to our unaudited interim condensed consolidated financial statements
included elsewhere in this prospectus and "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for additional information on borrower defense to repayment.
The remaining expense in the fiscal year ended August 31, 2024 primarily represents non-routine legal fees for litigation and regulatory matters that are separate and distinct from normal, recurring litigation and regulatory expenses incurred in the
normal course of our business operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estimated     and     in the three months and fiscal year ended August
31, 2025 associated with the borrower defense multi-year insurance policy noted above, and the remainder in the fiscal year ended August 31, 2025 represents estimated non-routine legal fees for litigation and regulatory matters. Refer to Note 11 to
our audited consolidated financial statements and Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus and "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for additional information on borrower defense to repayment.

(f) Represents non-cash equity-based compensation expense in accordance with Accounting Standards Codification
Topic 718, *Compensation: Stock Compensation*. Although share-based compensation is a key incentive offered to our employees, we evaluate our business performance excluding share-based compensation expense because it is a non-cash expense.

(g) Other consists of management fees pursuant to our existing management consulting agreement and other
expenses that we believe are not indicative of our ongoing operations. The existing management consulting agreement will be terminated effective as of the pricing of this offering and therefore no management fees will accrue or be payable for
periods after the pricing of this offering. See "*Certain Relationships and Related Party Transactions—Management Consulting Agreement*" included elsewhere in this prospectus for additional information.

**Risk Factors Summary** 

Participating in this offering involves substantial risk. Our ability to execute our strategy is also subject to certain risks. The risks described under the heading "*Risk Factors*" immediately following this summary may cause us not to realize the full benefits of our competitive strengths or may cause us to be unable to successfully execute all or part of our growth strategy. Some of the more significant challenges and risks we face include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we operate in a highly regulated industry with extensive regulatory requirements, and the failure to comply
with applicable regulations or regulatory requirements, standards or policies could subject us to significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans, grants and military
program benefits for our students, and otherwise have a material adverse impact on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact that recent amendments to the Higher Education Act by Congress may have on our business, including
the recent amendments that will limit or reduce the amount of federal student aid funding and that condition the future eligibility of educational programs for federal student aid funding upon compliance with new metrics focused upon the earnings of
our former students;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the impact that further legislative, political and regulatory changes, could have on our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact that the loss of institutional accreditation, loss of, or failure to receive, certifications for
participation in Title IV programs or limitations imposed by the Department of Education or state regulatory authorities could have on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we derived approximately 88% of our cash basis revenue from Title IV funds in our most recent fiscal year, and
if the University becomes ineligible to participate in Title IV programs, including due to the "90/10 Rule," or participation is materially limited, our business may not be sustainable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our 90/10 Rule percentage is projected to exceed or exceeds 90% for a given fiscal year, we may be required
to take measures to reduce the percentage of revenue that we derive from Title IV program funds, including by taking actions that reduce our revenue, increase our operating expenses, and/or increase our tuition, in each case perhaps significantly,
or by making operational or programmatic changes, which may materially and adversely impact our business and financial condition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new Department of Education regulations, which became effective July 1, 2023 and applicable starting in our
fiscal year 2024, increase the risk that we may not comply with the 90/10 Rule in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Borrower Defense to Repayment" regulations and "closed school loan discharge"
regulations may subject us to significant repayment liability for certain discharged federal student loans, including with respect to the approximately 48,000 borrower defense applications the University received from the Department of Education
beginning in June 2020 and continuing until April 2024, and require us to be provisionally certified or post a letter of credit or other security, or result in the limitation or termination of eligibility of the University to participate in Title IV
programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any failure to comply with the Department of Education's "gainful employment" metrics and
financial transparency regulations could limit the programs we can offer students, the Title IV eligibility of the impacted programs and/or increase our cost of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully competing against current and future competitors, including traditional public and private
degree-granting institutionally accredited colleges and universities, other proprietary degree-granting institutionally accredited schools and other alternatives to higher education, each of whom may offer programs that are wholly online and geared
towards the needs of working adults;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in the overall growth of enrollment in post-secondary institutions, or in the number of students
seeking degrees online, could lead to lower enrollment, which could negatively impact our future growth and require us to maintain or increase market share in existing markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to develop and maintain favorable awareness of the University among, and enroll and retain,
students as well as structural changes in the marketing landscape;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Tuition Price Guarantee program limits our ability to raise additional revenue from current students
through tuition increases, and any changes to the Tuition Price Guarantee program could harm our reputation, enrollment numbers, retention rates and overall business and financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we do not maintain existing, and develop additional, B2B relationships with employers, our business may be
impaired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we cannot guarantee the payment of dividends on our common stock, or the timing or amount of any such
dividends.

**Our Sponsor** 

Apollo is a high-growth, global alternative asset manager. In Apollo's asset management business, Apollo seeks to provide its clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, Apollo's investing expertise across its fully integrated platform has served the financial return needs of its clients and provided businesses with innovative capital solutions for growth. Through Athene, Apollo's retirement services business, Apollo specializes in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Apollo's patient, creative, and knowledgeable approach to investing aligns its clients, businesses it invests in, its employees and the communities it impacts, to expand opportunity and achieve positive outcomes. As of June 30, 2025, Apollo had approximately $840 billion of assets under management.

Upon the closing of this offering, the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full). As a result, we expect to be a "controlled company" under the corporate governance rules for NYSE-listed companies and will be exempt from certain corporate governance requirements of such rules. So long as we remain a controlled company, the Apollo Stockholder will have the ability to control matters requiring approval by our stockholders, including the election of directors, amendments to our certificate of incorporation and major corporate transactions. For further information, see "*Risk Factors—Risks Related to this Offering and Ownership of Our Common Stock*" and "*Management—Controlled Company*."

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Following the closing of this offering and pursuant to the Stockholders Agreement (as defined herein), the Apollo Stockholder will continue to have the right, at any time until Apollo and its affiliates, including the Apollo Stockholder, no longer beneficially own at least 5% of the voting power of our outstanding common stock, to nominate a number of directors comprising a percentage of our board of directors in accordance with their beneficial ownership of the voting power of our outstanding common stock (rounded up to the nearest whole number), except that if Apollo and its affiliates, including the Apollo Stockholder, beneficially own more than 50% of the voting power of our outstanding common stock, the Apollo Stockholder will have the right to nominate a majority of the directors. See "*Management—Board Composition*," "*Certain Relationships and Related Party Transactions—Stockholders Agreement*" and "*Description of Capital Stock—Composition of Board of Directors; Election and Removal of Directors*" for more information.

**Implications of Being an Emerging Growth Company** 

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups (the "JOBS Act"). As an "emerging growth company," we may, and intend to, take advantage of specified reduced reporting and other requirements that are otherwise applicable to public companies. These provisions include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemption from the auditor attestation requirement under Section 404(b) of the Sarbanes-Oxley Act of 2002
(the "Sarbanes-Oxley Act") in the assessment of the effectiveness of our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemption from new or revised financial accounting standards applicable to public companies until such
standards are also applicable to private companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemption from compliance with certain types of new requirements adopted by the Public Company Accounting
Oversight Board (United States) ("PCAOB");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemption from the requirement to seek non-binding stockholder
advisory votes on executive compensation and golden parachute arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure about executive compensation arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to present only two years of audited financial statements and only two years of related
"Management's discussion and analysis of financial condition and results of operations" in our periodic reports and registration statements, including in this prospectus.

We may take advantage of these provisions until the end of the fiscal year following the fifth anniversary of our initial public offering or such earlier time that we are no longer an "emerging growth company." We will cease to be an "emerging growth company" if we have $1.235 billion or more in total annual gross revenue during our most recently completed fiscal year, if we become a "large accelerated filer" with the market value of our common stock held by non-affiliates equal to at least $700 million as of the last business day of the second quarter of such fiscal year, or as of any date on which we have issued more than $1.0 billion in non-convertible debt over the three-year period to such date.

We may choose to take advantage of some, but not all, of these reduced burdens. For example, we have (i) taken advantage of the reduced reporting requirement with respect to disclosure regarding our executive compensation arrangements and (ii) presented only two years of audited financial statements in this prospectus. In addition, we expect to take advantage of the exemption from the auditor attestation requirement in the assessment on the effectiveness of our internal control over financial reporting. In addition, while we have elected to avail ourselves of the exemption to adopt new or revised accounting standards until those standards apply to private companies, we are permitted and may elect to early adopt certain new or revised accounting standards for which the respective standard allows for early adoption. We have elected to use this extended

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transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. See Note 1 to our audited consolidated financial statements included elsewhere in this prospectus for additional information. For as long as we take advantage of the reduced reporting obligations, the information that we provide to stockholders may be different from information provided by other similarly situated public companies.

**The Reorganization Transactions** 

We currently operate as a Delaware limited partnership under the name AP VIII Queso Holdings, L.P.

Prior to the closing of this offering, AP VIII Queso Holdings, L.P. will convert into a Delaware corporation pursuant to a statutory conversion and change its name to Phoenix Education Partners, Inc. In connection with our conversion into a corporation, all of the outstanding limited partnership units of AP VIII Queso Holdings, L.P. will be converted on a -for- basis into an aggregate of shares of our common stock. See "*Description of Capital Stock*." In connection with our conversion into a corporation, Phoenix Education Partners, Inc. will continue to hold all of the property and assets of AP VIII Queso Holdings, L.P. and will assume all of the debts and obligations of AP VIII Queso Holdings, L.P. Phoenix Education Partners, Inc.'s organizational documents will be a certificate of incorporation filed with the Delaware Secretary of State and bylaws, the material portions of which are described in "*Description of Capital Stock*." As of the effective date of our conversion into a corporation, we will become governed by the board of directors of Phoenix Education Partners, Inc., and the officers of AP VIII Queso Holdings, L.P. will become the officers of Phoenix Education Partners, Inc. See "*Management*." In this prospectus, we refer to the transactions related to our conversion to a corporation described above as the "Corporate Conversion."

We currently indirectly own approximately 98% of the outstanding shares of the University's common stock. In connection with the Corporate Conversion and this offering, all of the outstanding shares of the University's common stock owned by persons other than us will be converted into shares of our common stock at a ratio equal to shares of our common stock for each share of the University's common stock. As a result, we will issue shares of our common stock upon the conversion of outstanding shares of the University's common stock, and the University will then be our wholly owned subsidiary. Upon the future vesting of the University's outstanding restricted stock units ("RSUs") that have been issued under the University of Phoenix, Inc. Management Equity Plan (the "University Equity Plan"), we will issue shares of our common stock at the same ratio as described above. Upon the future exercise of the University's outstanding stock options that have been issued under the University Equity Plan, we will have the right to either issue shares of our common stock in exchange for the shares of the University's common stock received upon exercise at the same ratio described above or purchase the shares of the University's common stock received upon exercise for cash. See "*Executive Compensation—Management Equity Plan*."

In this prospectus, we refer to the Corporate Conversion and the other transactions described in this section as the "Reorganization Transactions." The Reorganization Transactions are intended to simplify our capital structure and to facilitate this offering.

**Corporate Information** 

We were organized under the laws of the State of Delaware as a limited partnership on January 9, 2014 and will be converted to a corporation under the laws of the State of Delaware prior to closing of this offering as part of the Reorganization Transactions. Our principal executive offices are located at 4035 S. Riverpoint Parkway,

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Phoenix, AZ 85040. Our telephone number is 1-800-990-2765. Our website is located at www.phoenix.edu. Our website and the information contained on, or that can be accessed through, our website will not be deemed to be incorporated by reference in, and are not considered part of, this prospectus. We have included our website address only as an inactive textual reference and do not intend it to be an active link to our website. You should not rely on our website or any such information in making your decision whether to purchase shares of our common stock.

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**The Offering** 

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| | |
|:---|:---|
|  Issuer | Phoenix Education Partners, Inc. |
|  Common stock offered by us | None. |
|  Common stock offered by the selling stockholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or shares if the underwriters exercise their option to purchase additional shares in full as described below). |
|  Option to purchase additional shares | The selling stockholders have granted the underwriters an option to purchase up to an additional shares at the initial public offering price, less underwriting discounts and commissions. The underwriters may exercise this option at any time within 30 days from the date of this prospectus. See "*Underwriting (Conflicts of Interest)*." |
|  Common stock outstanding immediately after giving effect to this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Use of proceeds | The selling stockholders will receive all the proceeds from the sale of shares of common stock in this offering. We will not receive any proceeds from the sale of shares of common stock in this offering. |
|  Controlled company | Upon completion of this offering, the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full). As a result, we intend to avail ourselves of the "controlled company" exemptions under the rules of the NYSE, including exemptions from certain of the corporate governance listing requirements. So long as we remain a "controlled company," the Apollo Stockholder will have the ability to control matters requiring approval by our stockholders, including the election of directors, amendments to our certificate of incorporation and major corporate transactions. See "*Management—Controlled Company*." |
|  Dividend policy | Beginning in the first full fiscal quarter following the completion of this offering, we anticipate paying a quarterly cash dividend at a rate initially equal to $ per share per annum, or $ per annum in the aggregate, on our common stock to holders of our common stock, and resulting in an annual yield of % based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. Any declaration and payment of cash dividends in the future, if any, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, cash flows, capital requirements, levels of indebtedness, restrictions imposed by applicable law, our overall financial condition, restrictions in debt agreements that we or our subsidiaries may enter into in the future and any other factors deemed relevant by our board of directors. See "*Dividend Policy*." |

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| | |
|:---|:---|
|  Listing | We have applied to list our common stock on the NYSE under the symbol "PXED." |
|  Risk factors | You should read the section titled "*Risk Factors*" beginning on page 28 of, and the other information included in, this prospectus for a discussion of some of the risks and uncertainties you should carefully consider before deciding to invest in our common stock. |
|  Conflict of interest | Affiliates of Apollo beneficially own in excess of 10% of our issued and outstanding common stock. Because Apollo Global Securities, LLC, an affiliate of Apollo, is an underwriter in this offering and its affiliates own in excess of 10% of our issued and outstanding common stock, Apollo Global Securities, LLC is deemed to have a "conflict of interest" under FINRA Rule 5121. Accordingly, this offering is being made in compliance with the requirements of FINRA Rule 5121. Pursuant to that rule, the appointment of a "qualified independent underwriter" is not required in connection with this offering as the members primarily responsible for managing the public offering do not have a conflict of interest, are not affiliates of any member that has a conflict of interest and meet the requirements of paragraph (f)(12)(E) of Rule 5121. Apollo Global Securities, LLC will not confirm any sales to any account over which it exercises discretionary authority without the specific written approval of the account holder. See "*Underwriting (Conflicts of Interest)*." |

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Except as otherwise indicated, all of the information in this prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gives effect to the Reorganization Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumes an initial public offering price of $ per share of common stock, the
midpoint of the range set forth on the cover page of this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumes no exercise of the underwriters' option to purchase up to     
additional shares of common stock from the selling stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect      shares of our common stock that may be issued upon the vesting
of RSUs outstanding under the University Equity Plan, of which    shares of our common stock may be issued upon the vesting of the University's RSUs that are subject to time-based vesting requirements
and    shares of our common stock may be issued upon the vesting of the University's RSUs that are subject to performance-based vesting requirements. See "*Executive Compensation—Management Equity Plan* "; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect      shares of our common stock reserved for future grant or issuable
in respect of (i) awards that may be granted under our new equity incentive plan (the "Omnibus Incentive Plan"), including    shares of our common stock that may be granted under the Omnibus Incentive Plan in
exchange for the University's common stock that option holders would receive upon the exercise of University's outstanding stock options under the University Equity Plan, as further described in the table below, and (ii) our
Employee Stock Purchase Plan (the "ESPP"). See "*Executive Compensation—2025 Omnibus Incentive Plan*" and "*Executive Compensation—Employee Stock Purchase Plan.*"  **** ** 

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The following table sets forth the University's outstanding stock options under the University Equity Plan immediately prior to this offering. Prior to this offering, upon a holder's exercise of one University stock option, the University would be required to issue to the holder one share of the University's common stock. However, following this offering, we will have the right to either issue shares of our common stock in exchange for one share of the University's common stock received upon exercise or purchase the shares of the University's common stock received upon exercise for cash:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>the University's<br>Stock Options** | **Weighted-Average<br>Exercise Price<br>Per Share** |
|  Vested stock options |  | $|
|  Unvested stock options (performance-based vesting) |  | $|
|  Unvested stock options (change in control-based vesting) |  | $|

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**Summary Consolidated Financial And Other Data** 

The following tables present our summary consolidated financial and other data as of and for the periods indicated. We have derived our summary historical consolidated statements of income data and our summary historical consolidated statements of cash flows data for the fiscal years ended August 31, 2024 and August 31, 2023, and our summary historical consolidated balance sheets data as of August 31, 2024 and August 31, 2023, from our audited consolidated financial statements included elsewhere in this prospectus. We have derived our summary historical interim consolidated statements of income data and our summary historical interim consolidated statements of cash flows data for the nine months ended May 31, 2025 and 2024, and our summary historical consolidated balance sheets data as of May 31, 2025, from our unaudited interim consolidated financial statements included elsewhere in this prospectus.

Our unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements and, in the opinion of our management, reflect all normal recurring adjustments necessary for the fair presentation of our consolidated results for these periods. The results for any interim period are not necessarily indicative of the results that may be expected for the full year. Our historical results are not necessarily indicative of the results that may be expected for any future period. The following summary consolidated financial and other data should be read in conjunction with "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and our consolidated financial statements and the related notes included elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
| **(in thousands)** | | | | |
|  **Consolidated Statements of Income Data:** |  |  |  |  |
|  **Net revenue** | $950015 | $835245 | $749801 | $709799 |
|  Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 403923 | 379259 | 325779 | 299778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 343993 | 328784 | 255703 | 242886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 50113 | 40744 | 17886 | 38616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges |  | 4789 |  |  |
|  **Total costs and expenses** | 798029 | 753576 | 599368 | 581280 |
|  **Operating income** | 151986 | 81669 | 150433 | 128519 |
|  Interest income | 16690 | 8529 | 8334 | 12149 |
|  Interest expense | (960) | (1769) | (332) | (794) |
|  Other loss, net | (475) | (791) |  | (331) |
|  **Income before income taxes** | 167241 | 87638 | 158435 | 139543 |
|  Provision for income taxes | 52093 | 21706 | 40564 | 34414 |
|  **Net income** | 115148 | 65932 | 117871 | 105129 |
|  **Net income attributable to noncontrolling interests** | (2018) | (1002) | (1489) | (1821) |
|  **Net income attributable to the Company** | $113130 | $64930 | $116382 | $103308 |
|  **Net income margin**<sup>(1)</sup> | 12.1% | 7.9% | 15.7% | 14.8% |

---

(1) We define net income margin as net income divided by net revenue, expressed as a percentage.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of May 31, 2025** | **As of May 31, 2025** |
|  | **August 31,<br>2024** | **August 31,<br>2023** | **Actual** | **As<br>adjusted<sup>(1)</sup>** |
| **(in thousands)** | | | | |
|  **Consolidated Balance Sheets Data:** |  |  |  |  |
|  Cash and cash equivalents | $297339 | $240660 | $203497 | $|
|  Restricted cash and cash equivalents | $58831 | $54969 | $39928 | $|
|  Current marketable securities | $16336 | $10556 | $9223 | $|
|  Noncurrent marketable securities | $10438 | $11135 | $14620 | $|
|  Total assets | $695250 | $682261 | $606754 | $|
|  Total liabilities | $346320 | $378891 | $282269 | $|
|  Total equity attributable to the Company | $327304 | $283854 | $309601 | $|
|  Noncontrolling interests | $21626 | $19516 | $14884 | $|
|  Total equity | $348930 | $303370 | $324485 | $|

---

(1) The as adjusted consolidated balance sheets data gives effect to the Reorganization Transactions. In
connection with the Corporate Conversion and this offering, all of the outstanding shares of the University's common stock owned by persons other than us will be converted into shares of our common stock at a ratio equal
to   shares of our common stock for each share of the University's common stock. As a result, we will issue   shares of our common stock upon the conversion of   outstanding shares of the
University's common stock, and the University will then be our wholly owned subsidiary, resulting in the elimination of noncontrolling interests in the University at the time of the Reorganization Transactions and a corresponding increase in
equity attributable to the Company.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
| **(in thousands)** | | | | |
|  **Consolidated Statements of Cash Flows Data:** |  |  |  |  |
|  Net cash provided by operating activities | $163236 | $105682 | $51789 | $140525 |
|  Net cash used in investing activities | $(27502) | $(16934) | $(15798) | $(5569) |
|  Net cash used in financing activities | $(75193) | $(6519) | $(148736) | $(75176) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
| **(Enrollment statistics rounded to the nearest hundred; dollars in thousands)** | | | | |
|  **Key Operating Statistics and Non-GAAP Financial Data:** |  |  |  |  |
|  Average Total Degreed Enrollment<sup>(1)</sup> | 78900 | 71000 | 82700 | 80200 |
|  Adjusted Net Income<sup>(2)</sup> | $166529 | $105873 | $133348 | $136598 |
|  Adjusted EBITDA<sup>(2)</sup> | $229053 | $157534 | $187308 | $187426 |
|  Adjusted EBITDA Margin<sup>(2)</sup> | 24.1% | 18.9% | 25.0% | 26.4% |

---

(1) We believe Average Total Degreed Enrollment is a useful indicator of our operating performance because it
helps compare our performance on a consistent basis across time periods and provides an additional analytical tool to help identify underlying trends in our results of operations. We define "Total Degreed Enrollment" as the number of
confirmed students (both new and continuing) enrolled in credit-bearing courses who post attendance at least one time during a calendar month (even if they withdraw later in the same month), excluding students who graduated as of the end of such
month. We calculate "Average Total Degreed Enrollment" over a period of time by aggregating the monthly Total Degreed Enrollment during such period and dividing that amount by the number of months in the period. For example, Average
Total

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Degreed Enrollment for fiscal year 2024 is calculated as the aggregate Total Degreed Enrollment for the months from September 2023 through August 2024 divided by 12. See *"Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Performance Metrics*" for additional information. <br>

(2) We define Adjusted Net Income as net income, adjusted to eliminate the impact of restructuring lease
expense, strategic alternatives expense, loss (gain) on interest rate swaptions, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation
expense, certain tax effects, and certain other items set forth in the applicable table below. We define Adjusted EBITDA as net income, adjusted to eliminate the impact of restructuring lease expense, strategic alternatives expense, loss (gain) on
interest rate swaptions, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation expense, depreciation and amortization, interest income, net
of interest expense, provision for income taxes and certain other items set forth in the applicable table below. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue, expressed as a percentage.

Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and are included as supplemental disclosures because we believe they are useful indicators of our operating performance. Derivations of net income and EBITDA are well recognized performance measurements in the education industry that are frequently used by our management, as well as by investors, securities analysts and other interested parties to compare the operating performance of companies in our industry. We believe these non-GAAP measures help compare our performance on a consistent basis across time periods and provide an additional analytical tool to help identify underlying trends in our results of operations. While we believe that these non-GAAP measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for net income recognized in accordance with GAAP.

Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools. Additionally, other companies in our industry may calculate Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, limiting each measure's usefulness as a comparative measure. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect costs or cash outlays for capital expenditures or contractual commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect changes in, or cash requirements for, our working capital needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative
of our ongoing operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA does not reflect our tax expense or the cash requirements to pay our taxes.

Because of these limitations, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. You are cautioned not to place undue reliance on this information.

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The following tables present reconciliations of net income to Adjusted Net Income and net income to Adjusted EBITDA and Adjusted EBITDA Margin for the periods presented below:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2024** | **August 31,<br>2023** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2025** | **May 31,<br>2024** | **May 31,<br>2024** |
| **(in thousands)** | | | | | | | | |
|  **Net income** | $| 115148 | $| 65932 | $| 117871 | $| 105129 |
|  Special items and share-based compensation: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<sup>(a)</sup> |  | 15201 |  | 16346 |  | 3837 |  | 12522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense<sup>(b)</sup> |  | 12530 |  | 12872 |  | 7401 |  | 6518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions<sup>(c)</sup> |  | 12727 |  | (3725) |  |  |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses<sup>(d)</sup> |  | 212 |  | 11507 |  | 113 |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense<sup>(e)</sup> |  | 5359 |  | 7493 |  | 3980 |  | 4209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense<sup>(f)</sup> |  | 5775 |  | 5558 |  | 1908 |  | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(g)</sup> |  | 4682 |  | 2699 |  | 3288 |  | 3058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effects of special items and share-based compensation<sup>(h)</sup> |  | (13947) |  | (11901) |  | (5050) |  | (10603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effects from claim of right reversal (credit), net<sup>(i)</sup> |  | 8842 |  | (908) |  |  |  | (869) |
|  **Adjusted Net Income** | $| 166529 | $| 105873 | $| 133348 | $| 136598 |
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2024** | **August 31,<br>2023** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2025** | **May 31,<br>2024** | **May 31,<br>2024** |
| **(in thousands)** |  |  |  |  |  |  |  |  |
|  **Net income** | $| 115148 | $| 65932 | $| 117871 | $| 105129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<sup>(a)</sup> |  | 15201 |  | 16346 |  | 3837 |  | 12522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense<sup>(b)</sup> |  | 12530 |  | 12872 |  | 7401 |  | 6518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions<sup>(c)</sup> |  | 12727 |  | (3725) |  |  |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses<sup>(d)</sup> |  | 212 |  | 11507 |  | 113 |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense<sup>(e)</sup> |  | 5359 |  | 7493 |  | 3980 |  | 4209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense<sup>(f)</sup> |  | 5775 |  | 5558 |  | 1908 |  | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization |  | 21056 |  | 23906 |  | 16348 |  | 16297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net of interest expense |  | (15730) |  | (6760) |  | (8002) |  | (11355) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes |  | 52093 |  | 21706 |  | 40564 |  | 34414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(g)</sup> |  | 4682 |  | 2699 |  | 3288 |  | 3058 |
|  **Adjusted EBITDA** | $| 229053 | $| 157534 | $| 187308 | $| 187426 |
|  **Net income margin** |  | 12.1% |  | 7.9% |  | 15.7% |  | 14.8% |
|  **Adjusted EBITDA Margin** |  | 24.1% |  | 18.9% |  | 25.0% |  | 26.4% |

---

(a) Restructuring lease expense represents non-cancelable lease
obligations, including any offset from sublease income, and other related expenses for leased space we have exited as part of our ground campus and administrative space rationalization plans. In 2012, as a key component of the University's
transformation initiatives, the University began the process of completing the orderly closure of its ground campuses, as more enrolling students made the choice to take their programs online. The University completed the orderly closure of its
campus locations in early fiscal year 2025, with only one physical location, in Phoenix, Arizona, currently enrolling new students. Additionally, as of August 31, 2023, pursuant to its space rationalization plans, the University had exited 19
floors of its 22-floor administrative office buildings. Refer to Note 2 to our audited consolidated financial statements and Note 2 to our unaudited interim condensed consolidated financial statements included
elsewhere in this prospectus for additional information on restructuring lease expense.

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(b) Strategic alternatives expense consists of costs associated with our pursuit of strategic alternatives for
the future ownership of the University during such periods. This includes costs incurred for this offering and costs incurred pursuing a strategic transaction with Four Three Education, Inc., an Idaho non-profit corporation ("Four Three"), affiliated with The Regents of the University of Idaho ("UofI"), which we are no longer pursuing. Refer to Note 1 to our audited consolidated
financial statements and Note 1 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional information.

(c) In July 2023, we purchased two interest rate swaptions for an aggregate premium of $9 million to hedge
interest rate risk associated with the debt financing we expected to be used for the strategic transaction with Four Three. The swaptions were reported at fair value on our consolidated balance sheets until they expired out of the money during
fiscal year 2024. As a result, we recognized a $12.7 million loss and a $3.7 million gain in fiscal years 2024 and 2023, respectively, for associated changes in fair value.

(d) Represents non-cash impairment charges and asset disposal losses,
substantially all of which in fiscal year 2023 resulted from a right-of-use asset impairment charge associated with our space rationalization plans. Refer to Note 2 and
Note 6 to our audited consolidated financial statements included elsewhere in this prospectus for additional information.

(e) Litigation charges and regulatory expense consists of expense recognized for loss contingencies associated
with litigation and certain expenses associated with regulatory matters, in each case, that we believe are not indicative of our ongoing operations, including the items listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.8 million in fiscal year 2024 associated with a multi-year insurance policy pertaining to borrower
defense to repayment claims. Refer to Note 11 to our audited consolidated financial statements and Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus and
" *Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for additional information on borrower defense to repayment. The remaining expense primarily represents
legal fees for non-routine litigation and regulatory matters that are separate and distinct from normal, recurring litigation and regulatory expenses incurred in the normal course of our business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.6 million in fiscal year 2023 resulting from a settlement that we paid in fiscal year 2024 associated
with a state attorney general investigation that was initiated in fiscal year 2015 (refer to Note 10 to our audited consolidated financial statements included elsewhere in this prospectus for additional information), $1.3 million associated
with a multi-year insurance policy pertaining to borrower defense to repayment claims (refer to "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for
additional information), and the remainder principally representing legal fees for non-routine litigation and regulatory matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.6 million in both the nine months ended May 31, 2025 and 2024 associated with the borrower defense
multi-year insurance policy noted above, and the remainder in both periods principally representing legal fees for non-routine litigation and regulatory matters. Refer to Note 11 to our audited consolidated
financial statements and Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus and "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for additional information on borrower defense to repayment **.** 

(f) Represents non-cash equity-based compensation expense in accordance
with Accounting Standards Codification Topic 718, *Compensation: Stock Compensation*. Although share-based compensation is a key incentive offered to our employees, we evaluate our business performance excluding share-based compensation expense
because it is a non-cash expense.

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(g) Other consists of management fees pursuant to our existing management consulting agreement and other
expenses that we believe are not indicative of our ongoing operations. The existing management consulting agreement will be terminated effective as of the pricing of this offering and therefore no management fees will accrue or be payable for
periods after the pricing of this offering. See "*Certain Relationships and Related Party Transactions—Management Consulting Agreement*" included elsewhere in this prospectus for additional information.

(h) Represents the income tax effect of these non-GAAP adjustments,
calculated using the appropriate statutory tax rates. The non-GAAP effective tax rates were 24.7% and 22.6% for fiscal year 2024 and fiscal year 2023, respectively, and 24.6% and 24.7% for the nine months
ended May 31, 2025 and 2024, respectively.

(i) Represents income tax effects from a claim of right credit that we elected to no longer pursue in fiscal
year 2024 associated with our $50 million settlement payment made in fiscal year 2020 to the Federal Trade Commission. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Federal Trade Commission Investigation*" for additional information. We do not believe the settlement payment and the related income tax effects are indicative of our ongoing operations. Refer to Note 8 to our audited consolidated financial statements
included elsewhere in this prospectus for additional information on income taxes.

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**RISK FACTORS** 

*You should carefully consider the risks and uncertainties described below, as well as the other information contained in this prospectus, including our consolidated financial statements and the related notes thereto included elsewhere in this prospectus and "Management's Discussion and Analysis of Financial Condition and Results of Operations," before deciding to invest in our common stock. In addition, past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods. Any of the following risks could materially adversely affect our business, financial condition and results of operations, in which case the trading price of our common stock could decline and you could lose all or part of your investment.* 

**Risks Related to the Highly Regulated Industry in Which We Operate** 

***If we fail to comply with the extensive regulatory requirements applicable to our business, we could face significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans, grants and military program benefits for our students.***

Our operations are subject to extensive U.S. federal and state regulation applicable to providers of post-secondary education. The principal federal regulatory regime was established under the Higher Education Act and the regulations promulgated under the Higher Education Act by the Department of Education. Among other matters, these regulations govern the participation by the University in federal student financial aid programs under Title IV of the Higher Education Act ("Title IV"), which is the principal source of funding for students at the University. Most of our fiscal year 2024 consolidated net revenue was derived from the receipt of Title IV program funds disbursed to our students. We must also comply with statutes and regulations that govern the University's administration of our students' use of veterans' education benefits or United States Department of Defense (the "Department of Defense" or "U.S. Department of Defense") tuition assistance programs. See "*Business—Regulatory Environment.*"

To participate in Title IV programs, a post-secondary institution must be authorized by the appropriate state post-secondary agency or agencies in each state in which the institution operates, be accredited by an accrediting commission recognized by the Department of Education, be certified by the Department of Education as an eligible institution and offer at least one eligible program of education. The operations and programs of an institution may also be regulated by other state education agencies and additional specialized accrediting commissions. As a result of these requirements, we are subject to extensive regulation by the Department of Education, the Higher Learning Commission (the "HLC"), which is our institutional accreditor, the education agencies of the states in which we operate, and specialized accrediting commissions. The applicable regulatory requirements cover nearly all phases of our operations, including educational program offerings, branch campus and classroom locations, instructional and administrative staff relations, administrative procedures, marketing and recruiting, compensation structures for certain employees, financial operations, including minimum financial responsibility calculations, other requirements for the eligibility of educational programs for federal student aid, the substantiation of credit hours awarded to students for their coursework, the eligibility of individual students for federal student aid, the amount of federal loans, federal Pell grants and other federal student aid that may be awarded, requirements affecting the timing of disbursement of federal student aid, payment of refunds to students who withdraw within allowable timeframes and the return to the Department of Education of federal student aid for such students, maintenance of restricted cash, acquisitions or openings of new schools, student accessibility, commencement of new or cessation of existing educational programs and changes in our corporate structure and ownership.

The applicable statutes, regulations, standards and policies of the various regulatory agencies and accreditors frequently change and often are subject to interpretative uncertainty, particularly as they historically have been developed to govern the operations of traditional, academic term-based schools, which are prevalent in our industry, rather than on schools that follow a non-term academic delivery model, which is used by the

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University. Changes in, or new interpretations of, applicable statutes, regulations, standards or policies could have a material adverse effect on our ability to participate in and receive funds provided by federal student aid programs, as well as our accreditation, authorization to operate or grant degrees or other credentials in various states, the scope of our permissible activities, the costs of doing business and our ability to implement beneficial changes in our academic or business model. We cannot predict how the statutes, regulations, standards and policies administered by these agencies will be applied or interpreted in the future, or whether we will be able to comply with any future changes in these requirements.

If we violate or fail to satisfactorily comply with applicable statutes, regulations, standards or policies, we may be subject to any of the following sanctions, among others, imposed by any one or more of the relevant regulatory agencies or accreditors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monetary fines or penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on, or termination of, our operations, including, but not limited to, our ability to offer new
programs, change the length of our existing programs, increase enrollment levels, or grant degrees, diplomas and certificates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on, or revocations of, our accreditations, licenses or other operating authority, including by
the HLC or a programmatic accreditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on, or suspensions or termination of, our eligibility to participate in Title IV programs,
military benefit programs, veteran education benefit programs or state financial aid programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition by the Department of Education of heightened cash monitoring, which could cause delays in the
disbursement of Title IV program funds, or transfer from the Department of Education's advance system of receiving Title IV program funds to its reimbursement system, under which a school must disburse its own funds to students and document
the students' eligibility for Title IV program funds before receiving such funds from the Department of Education;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• repayments of funds received under Title IV programs or state financial aid programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requirements to post a letter of credit with the Department of Education;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of provisional certification by the Department of Education, which may include growth restrictions
that prevent us from adding to or changing our locations and programs absent express approval from the Department of Education;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other civil or criminal penalties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other forms of censure.

Any of the sanctions described above could have a material adverse effect on our business, financial condition and results of operations. In particular, if we become ineligible to participate in Title IV programs, or our participation is materially limited, our sources of revenue will become significantly more restricted and our business may not be sustainable. In addition to the potential financial implications, we may not be able to conduct our operations and our program offerings may in turn be significantly reduced. Furthermore, if we are charged with legal or regulatory violations, our reputation could be damaged, which could have a negative impact on our stock price, our enrollment and the willingness of third parties to conduct business with us. We cannot predict with certainty how these regulatory or accrediting requirements will be applied, or whether we will be able to comply with the applicable requirements in the future.

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***If the Department of Education were to limit, suspend, or terminate our eligibility or certification to participate in the Title IV programs or if it were to choose not to renew our certification in the future, our students could lose their access to Title IV program funds, our participation in Title IV programs would be restricted or terminated, or we could be required to accept significant limitations as a condition of our continued participation in Title IV programs.***

Department of Education certification to participate in Title IV programs lasts a maximum of six years, and institutions are thus required to seek recertification from the Department of Education on a regular basis in order to continue their participation in Title IV programs. An institution must also apply for recertification by the Department of Education if it undergoes a "change in control," as defined by Department of Education regulations, and may be subject to similar review if it expands its operations or educational programs in certain ways. Certification can be granted on a full or provisional basis and, in instances where the Department of Education is reviewing an application for renewal but does not complete the review by the stated date of expiration, may be continued on a month-to-month basis until the review is complete. Institutions that are provisionally certified are typically required to obtain prior Department of Education approval to add educational programs or make any other significant change. Further, for an institution that is certified on a provisional basis, the Department of Education may revoke the institution's certification without advance notice or advance opportunity for the institution to challenge that action. For an institution that is certified on a month-to-month basis, the Department of Education may allow the institution's certification to expire at the end of any month by denying recertification without advance notice, and without any formal procedure for review of such action.

In August 2025, the Department of Education renewed the University's Title IV program participation agreement ("PPA") and approved the recertification of the University's continued participation in the Title IV programs through June 30, 2031. However, if the Department of Education were to initiate future proceedings to limit, suspend, or terminate the University's eligibility or certification to participate in the Title IV programs, or if it were to choose not to renew our certification in the future, such actions could cause the participation by the University in the Title IV programs to be interrupted, limited, or terminated, and could cause our students to lose access to Title IV program funds.

In addition, new federal regulations relating to certification and imposing additional requirements in PPAs may pose challenges to the University and increase the risk of regulatory noncompliance and a finding by the Department of Education that the University has not or cannot fully satisfy all required eligibility and certification standards. The new regulations, which became effective July 1, 2024, expand the grounds for placing an institution on provisional certification and identify new potential conditions on provisionally certified institutions. The regulations further added new requirements to an institution's PPA including, among other things, restrictions on student transcript withholding and a prohibition on institutional policies and procedures that induce students to limit their amount of federal student aid. For certification decisions to which the new regulations are applicable, the regulations also require that the PPA be signed by entities with direct or indirect ownership of the institution and the power to exercise control over the institution, and require such co-signatories to assume liability for financial losses to the federal government related to the institution's administration of Title IV programs. The entities required to become co-signatories include, but are not limited to, (i) entities with at least 50% control over an institution through direct or indirect ownership, by voting rights or by its right to appoint board members to an institution or any other entity, whether by itself or in combination with other entities or natural persons with which it is affiliated or related, or pursuant to a proxy or voting or similar agreement; (ii) entities with the power to block significant actions of an institution; (iii) entities that are the 100% direct or indirect interest holder of an institution; and (iv) certain entities that are required to submit financial statements to the Department of Education in connection with an institution.

If the Department of Education finds that the University has not fully satisfied all required eligibility and certification standards, the Department of Education could take adverse actions against the University, up to and including termination of the University's Title IV program participation. Similarly, the Department of Education could renew our certification in the future, but restrict or delay our students' receipt of Title IV funds, limit the

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number of students to whom we could disburse such funds, require us to post a substantial letter of credit, or place other conditions or restrictions on us. Since we derived approximately 88% of our cash basis revenue from Title IV funds in our most recent fiscal year, if the University becomes ineligible to participate in Title IV programs, or participation is materially limited, our sources of revenue will become significantly more restricted and our business may not be sustainable. We cannot predict the timing or outcome of the future recertification application process, including with respect to a determination whether this offering will constitute a change of control. See "*—If any of the education regulatory agencies that regulate us delay their approval or do not approve of any transaction involving us that constitutes a "change in control," our ability to operate or participate in Title IV programs may be impaired*." We also cannot predict what terms and conditions may be imposed on the University as part of any recertification, or how such terms and conditions may affect the University's ongoing participation in Title IV programs.

***Government agencies, regulatory agencies, and third parties may conduct compliance reviews, bring claims, or initiate litigation against us based on alleged violations of the extensive regulatory requirements applicable to us.***

In conducting oversight of the administration of the federal student aid program by Title IV-participating institutions, the Department of Education relies on compliance reviews, including program reviews conducted by Department of Education staff, mandatory annual compliance audits by independent audit firms, and audits conducted by the Department of Education's Office of Inspector General. For example, we are currently subject to an unresolved off-site program review that began in June 2021 in which the Department of Education is asserting that the University owes liabilities for closed school loan discharges for three former students in the amount of approximately $44,000, which determination is presently on appeal. See "—*"Closed School Loan Discharge" regulations may subject us to significant repayment liability for certain student loans pursuant to Title IV programs and require us to be provisionally certified or to post a letter of credit or other security, or may result in the limitation or termination of eligibility of the University to participate in Title IV programs.*" We have experienced in the past, and are likely to experience in the future, additional program reviews or audits in addition to the annual compliance audit process.

We are also subject to ongoing oversight actions by other regulatory agencies, including, but not limited to, those conducted by our institutional accreditor, the HLC, other agencies that accredit programs that we offer, our state authorizing agencies, the Federal Trade Commission (the "FTC"), the Department of Defense and the United States Department of Veterans Affairs (the "U.S. Department of Veterans Affairs" or "Department of Veterans Affairs") and state attorneys general. For example, as a result of past resolutions of certain government investigations, we are subject to ongoing obligations and prohibitions against misrepresentations in certain advertising practices that were a focus of an FTC investigation, and rules of engagement for University-related activities on military installations that were a focus of a state attorney general investigation (each as further described in "*Business—Regulatory Environment*"), as well as other notification, recordkeeping and reporting requirements. Actual or perceived non-compliance with these ongoing or other obligations could prompt the FTC or a state attorney general to seek fines and penalties via an enforcement action against the University. The imposition of any such fines or penalties could have a material adverse effect on our business and operations. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Federal Trade Commission Investigation*" and "*—Attorney General Investigations*."

In some circumstances of non-compliance or alleged non-compliance, we may be subject to *qui tam* lawsuits under the Federal False Claims Act or various, similar state false claim statutes. In these actions, private plaintiffs seek to enforce remedies under the Federal False Claims Act on behalf of the federal government and, if successful, are entitled to recover their costs and to receive a portion of any amounts recovered by the federal government in the lawsuit. These lawsuits can be prosecuted by a private plaintiff, even if the Departments of Education and Justice do not agree with plaintiff's theory of liability. We have been subject to, and settled, *qui tam* lawsuits in the past and while we cannot predict the size or frequency of similar claims that we may face in the future, any resulting liability may be material. The broad-based scrutiny and related investigations by state

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and federal regulators can also lead to follow-on consumer class actions filed by private attorneys on behalf of current and former students. Such actions often adopt the same theories of liability pursued by the regulators and seek additional relief under the premise that the student consumers were not made whole by the regulator's settlement. In addition, investigations by and settlements with state and federal regulators can also lead to securities-related class actions that take a similar approach of adopting the regulators' allegations and/or findings and seeking relief based on alleged losses to shareholders.

Claims and lawsuits brought against us, even if they are without merit, may also result in adverse publicity, damage our reputation, negatively affect the market price of our stock, adversely affect our student enrollments, and discourage third parties from doing business with us. Even if we adequately address the issues raised by any such proceeding and successfully defend against it, we may have to devote significant financial and management resources to address these issues, which could materially harm our business.

***"Borrower Defense to Repayment" regulations may subject us to significant repayment liability for certain discharged federal student loans and require us to be provisionally certified or post a letter of credit or other security, or result in the limitation or termination of the University's eligibility to participate in Title IV programs.***

Under the Higher Education Act, the Department of Education's regulations specify acts or omissions of a school that a student loan borrower may assert as a defense to repayment ("BDR" or "BDR claim") of a federal student loan and thereby seek to obtain a discharge and refund of such loan. Under the rules governing BDR claims, the Department of Education has indicated that it believes it may also assert such a claim on behalf of a student borrower. Additionally, the Department of Education may initiate a recoupment proceeding against a school to collect loan amounts that are discharged or refunded as the result of a BDR claim. These rules have been significantly revised three times in recent years. Currently, a complex framework of rules applies different loan relief and recoupment standards and procedures based upon the date that the loan in question was first disbursed. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" for further discussion of the 1995, 2017, 2020, and (enjoined) 2023 BDR rules (each, a "BDR Rule" and collectively, the "BDR Rules") and relevant litigation, legal challenges, and recent amendments to the Higher Education Act regarding the BDR regulatory framework.

Beginning in June 2020 and continuing until April 2024, the University received approximately 48,000 borrower defense applications from the Department of Education as part of the fact-finding process by which the Department of Education notifies institutions regarding BDR claims received from student borrowers and provides institutions an opportunity to respond. The University provided substantive, timely responses related to each such application and other requested evidence to the Department of Education. While the University believes it has both factual and procedural defenses to the claims made in the applications regardless of which BDR Rules apply, we cannot predict how the Department of Education will evaluate the evidence and adjudicate each claim. Additionally, approximately one-third of the applications received by the University were dated on or before June 22, 2022, which would subject the underlying loans associated with those BDR claims to automatic discharge under the terms of the settlement in the *Sweet* class-action lawsuit and potentially prevent such claims from serving as the basis of a recoupment action by the Department of Education against us. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*." The remaining applications received by the University were dated between June 23, 2022 and November 15, 2022, rendering them subject to certain expedited resolution procedures under the *Sweet* settlement. The Department of Education has not identified the total number of BDR claims that are related to our institution, nor identified which claims are covered by and subject to the *Sweet* settlement.

In September 2023, the Department of Education announced that it had approved more than 1,200 BDR claims and discharged nearly $37 million federal student loans from borrowers who made claims regarding the University's "Let's Get to Work" ad campaign, which ran from 2012 to 2014. The Department of Education announced it had determined that the University substantially misrepresented its relationships with outside

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companies in the ad campaign. The Department of Education further indicated its intent to commence a recoupment effort against the University for the amounts of the discharged loans, but the Department of Education has not yet commenced any such action. While the BDR claims that were discharged appear to have also been subject to automatic discharge under the terms of the *Sweet* settlement, and the settlement itself could not serve as the basis of a recoupment action by the Department of Education under its stated position, the Department of Education may still attempt to seek recoupment of such discharged payments in the future, and we cannot predict the timing or scale of such recoupment efforts if pursued. Furthermore, there may be additional pending or adjudicated BDR claims against the University that have not yet been provided by the Department of Education and of which the University has not been notified.

Additionally, the BDR Rules require the University to dedicate significant resources to navigating as many as four different versions of regulatory standards and processes. The University also maintains reporting procedures to comply with the financial responsibility provisions related to BDR, under which the Department of Education may require the University to post a letter of credit or other financial protection in the event of certain triggering events. See "*Business—Regulatory Environment—Borrower Defense to Repayment*" and "*Regulation of Student Financial Aid Programs—Standards of Financial Responsibility*."

The current BDR Rules and regulations could result in significant risks for our business and the application of the various BDR standards may be unclear or subject to interpretation in a manner that is adverse to us and unpredictable. The potentially significant discretion vested in the Department of Education to administer the regulations, including whether to seek recoupment of discharged loan amounts or require letters of credit from institutions, and the subjective judgments regarding the triggers for debt relief may result in unexpected outcomes that materially and adversely affect our business and liquidity. In addition, the manner in which we respond to state or federal and certain private lawsuits may be materially impacted as a result of the possible significant consequences of an adverse judgment or finding in such matters on the subsequent adjudication of BDR claims.

Since individual BDR applications are submitted by student loan borrowers to the Department of Education, rather than to us, and since the Department of Education has asserted that the BDR Rules provide for group claims without an underlying individual BDR application from a borrower in certain circumstances, it is unknown how many BDR claims have been asserted with respect to the University, how many have been approved or denied by the Department of Education, or how many BDR claims will be asserted, approved or denied in the future. It is further unknown whether and to what extent the Department of Education may seek to recoup the amount of discharged or refunded loans or impose such liability against the University, whether our legal and factual defenses with respect to such BDR claims and recoupment proceedings or imposition of liability would succeed, or even which procedures will ultimately govern the BDR resolution process. Additionally, the University could receive negative coverage in the media regarding BDR claims that could impede the recruitment of students. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*." While we cannot predict the outcome of any current, pending or potential future claims, they could have a material adverse effect on our business, financial performance and operations.

***"Closed School Loan Discharge" regulations may subject us to significant repayment liability for certain student loans pursuant to Title IV programs and require us to be provisionally certified or to post a letter of credit or other security, or may result in the limitation or termination of the University's eligibility to participate in Title IV programs.***

The Higher Education Act and related Department of Education regulations provide that upon the closure of an institution participating in Title IV programs, including any campus location thereof, certain students who had attended that institution or location may be eligible to obtain a "closed school loan discharge" of their federal student loans if they withdraw from the closed school within a prescribed timeframe and do not complete their educational programs through transfer or teach-out with another postsecondary institution. If a loan is discharged

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on these grounds, then the Department of Education may seek recoupment of the discharged amount from the responsible institution. In December 2024, following a program review and related administrative proceeding, the University was found liable for recoupment for closed school loan discharges for three student borrowers in the amount of approximately $44,000. The University has appealed this decision to the Secretary of the Department of Education, and the ultimate outcome of the proceedings is uncertain. Although this liability is de minimis, the outcome of the proceeding, along with the evolving regulations governing closed school loan discharges, could have potential implications with respect to student borrowers who attended any of the substantial number of physical campuses and learning centers that the University has closed in recent years. These closures were made in connection with its Campus Footprint Initiative, where the University worked closely with its regulatory oversight bodies and students to adhere to the University's commitment to ensure that every impacted student would have the opportunity to complete their education program at their location or attend online at their choice. See "*Business—Regulatory Environment—Defense to Repayment*," "*—Regulation of Student Financial Aid Programs—Closed School Loan Discharge*" and "*Regulation of Student Financial Aid Programs—Branching and Classroom Locations*." The University is not aware of any other closed school loan discharges that have been approved by the Department of Education in regard to the University's closed locations. If, in the future, other discharges are approved and the number of such discharges is substantial, the impact on the terms of the University's participation in Title IV programs or on the University's financial condition could be material and adverse.

***Recent action by Congress that revised the laws governing federal student financial aid programs, including changes to the level of federal student aid funding available to higher education students and to the requirements educational programs must meet to qualify for such funding, could reduce our enrollment and revenue, and increase our costs of operation.***

The U.S. Congress must periodically reauthorize the Higher Education Act and annually determine the funding level for each Title IV program. The most recent reauthorization of the Higher Education Act expired September 30, 2013, but Title IV student financial aid programs remain authorized and functioning. However, as part of the annual federal budget reconciliation process, on July 4, 2025, amendments to the Higher Education Act revising certain federal student aid program provisions were signed into law by President Trump as part of the One Big Beautiful Bill Act (the "OBBB"). The recent amendments, which generally take effect in July 2026, include provisions that will limit or reduce the amount of federal student aid funding that may be available to some higher education students and that impose new accountability standards on institutions. For example, the recent amendments may reduce the amount of federal student loan funding available to graduate students and to the parents of student borrowers, except during a limited timeframe for current borrowers. The recent amendments also create new accountability standards conditioning the Federal Direct Loan Program eligibility of educational programs upon compliance with benchmarks that compare former students' median earnings after completion to the median earnings of working adults with lesser credentials. Individual programs (other than undergraduate certificate programs) will lose federal direct loan eligibility if, in two out of three consecutive years, the median earnings (as determined by the Department of Education) of the program's student cohort who received Title IV funds and graduated four years prior falls below the median earnings of working adults aged 25 to 34 who are not enrolled in an institution of higher education and who have only a high school diploma (for undergraduate programs) or only a bachelor's degree (for graduate and professional programs). See "*Business—Financial Aid Programs.*" We are continuing to evaluate this complex new earnings accountability requirement, and it is anticipated that the Department of Education will publish further implementing regulations. Accordingly, the impact of the recent amendments to the Higher Education Act and of future regulatory and policy changes resulting from those amendments, including with respect to the new accountability requirement conditioning the federal direct loan eligibility of our programs, cannot be predicted, and could have a material adverse effect on our business, financial condition and results of operations.

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***Further action by Congress to revise the laws governing federal student financial aid programs, including changes applicable only to proprietary educational institutions, could reduce our enrollment and revenue, and increase our costs of operation.***

Congress continues to engage in discussion and activity regarding reauthorizing the Higher Education Act, but political and policy differences have prevented legislative progress, creating the potential for additional future amendments to the Higher Education Act in the interim, and making timing unpredictable and the terms of any eventual full reauthorization difficult to forecast. Because the significant majority of our revenue is derived from Title IV programs, any legislative changes to Title IV programs, whether in connection with a reauthorization of the Higher Education Act or in other amendments, including any changes that affect the level of funding or the eligibility of the University or its students to participate in Title IV programs or that require us to modify our practices in ways that could increase our administrative or operating costs, could have a material adverse effect on our enrollment, business, results of operations and financial condition.

***Shifts in higher education policy at the federal and state levels could have a material adverse effect on our business or render our current business impractical or unsustainable.***

Shifts in higher education policy at the federal or state levels occur from time to time. Among other things, policy changes can increase the risk of new legislation, and of changes in and new interpretations of, and more aggressive enforcement of, existing statutes, regulations, standards or policies. They may also lead to the imposition of new terms and conditions of participation that could limit, perhaps materially, the eligibility of proprietary schools, such as the University, to participate in Title IV student financial aid programs, as well as other aid programs that benefit our students. While some proposals that have been made in the past require congressional action, others could be taken via executive action. In addition, state governors, legislatures and attorneys general could negatively influence public policy initiatives, privacy and tax policy developments, investigative demands and regulatory efforts against proprietary higher education institutions. The passage of legislation, or executive or regulatory actions on higher education, at both the federal and state level, could have a material adverse effect on our business, financial condition and results of operation, or render our business impractical or unsustainable.

***If we do not meet specific financial responsibility standards established by the Department of Education, we may be required to post a letter of credit or accept other limitations in order to continue participating in Title IV programs, or we could lose our eligibility to participate in Title IV programs.***

To participate in Title IV programs, the Department of Education regulations specify that an eligible institution of higher education must satisfy specific measures of financial responsibility prescribed by the Department of Education or post a letter of credit in favor of the Department of Education and accept other conditions on its participation in Title IV programs. These financial responsibility tests are applied on an annual basis based on each institution's audited financial statements, and may be applied at other times, such as if the institution undergoes a change in control. These tests may also be applied to an institution's parent company or other related entity. The operating restrictions that may be placed on an institution that does not meet the quantitative standards of financial responsibility include being transferred from the advance payment method of receiving Title IV funds to either the reimbursement or the heightened cash monitoring system, which could result in a significant delay in the institution's receipt of those funds. Pursuant to Title IV program regulations, each eligible institution must satisfy a measure of financial responsibility based on a weighted average of annual ratios that assess the financial condition of the institution, with a resulting composite score between a negative 1.0 and a positive 3.0. An institution's composite score must be at least 1.5 for the institution to be deemed financially responsible without the need for further Department of Education oversight. The Company's composite scores for fiscal years 2024, 2023 and 2022 were 2.8, 2.7, and 2.7, respectively. The financial responsibility requirements also include standards pertaining to the University's audit reports, its timely return of Title IV program funds in respect of withdrawn students, and other criteria, including the content of its reports on compliance and internal controls and its standing with regulators and accreditors. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Standards of Financial Responsibility.*"

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In addition to the above, new Department of Education financial responsibility regulations that took effect on July 1, 2024 revised the timing for submission of audit reports and identified events that constitute a failure of an institution to demonstrate its ability to meet its financial obligations, including certain mandatory triggering events upon which an institution is deemed automatically to lack financial responsibility. Mandatory triggering events include certain final monetary judgments or settlements in legal proceedings, certain borrower defense recoupment proceedings initiated by the Department of Education, receiving at least 50% of Title IV program funds in the prior year from programs that are failing the Department of Education's new gainful employment metrics, certain actions by the SEC, certain creditor events, and failing to comply with certain other metrics related to the 90/10 Rule (as defined below) and an institution's cohort default rates. Thus, for example, if the University were to fail to meet the requirements of the 90/10 Rule for any fiscal year, that failure would be a mandatory trigger that would constitute an automatic failure of financial responsibility. The University's 90/10 Rule percentage was approximately 88% for the fiscal year ended August 31, 2024, and there is no assurance that we will continue to comply with the 90/10 Rule in the future. See "*—The University may lose eligibility to participate in Title IV programs if the percentage of our revenue derived from federal funding sources is too high*." The regulations also identified new discretionary triggering events, upon which the Department of Education may determine that the institution lacks financial responsibility, including, among other things, the occurrence of: specified defaults, delinquencies, creditor events, and judgments; significant fluctuations in volume of Title IV program funds from year to year; high annual dropout rates; the formation of a group process by the Department of Education with respect to recoupment of pending BDR claims; for an institution owned at least 50% by a publicly traded entity, a disclosure by the entity in a public filing that it is under investigation for possible violations of state, federal or foreign law; certain other state, federal, and accreditation regulatory actions; or any other event or condition that the Department of Education determines is likely to have a "significant adverse effect" on the financial condition of the institution. Thus, for example, if the Department of Education were to decide to pursue recoupment against us with respect to our pending BDR claims via a group process, it could then use that decision as the basis for also declaring a discretionary triggering event and a determination that we lack financial responsibility. See "*—'Borrower Defense to Repayment' regulations may subject us to significant repayment liability for certain discharged federal student loans and require us to be provisionally certified or post a letter of credit or other security, or result in the limitation or termination of eligibility of the University to participate in Title IV programs*." An institution that suffers a triggering event and is thus determined by the Department of Education or otherwise deemed automatically to lack financial responsibility must (i) provide a letter of credit or other form of acceptable financial protection to the Department of Education and (ii) accept other conditions on its Title IV eligibility. Under these regulations, the Department of Education requires an institution to provide financial protection, including a letter of credit, if applicable, in an amount of not less than 10% of the institution's total Title IV funding in the prior year for each individual triggering event, such that multiple triggering events could subject an institution to substantial cumulative financial protection obligations.

If, in the future, we fail to satisfy the Department of Education's financial responsibility standards, including due to the existence of mandatory or discretionary triggering events, we could be limited in our access to or lose Title IV program funding, be required to post a letter of credit in favor of the Department of Education, and/or accept provisional certification or other operating restrictions on our participation in Title IV programs, any of which could have a material adverse effect on enrollments and our financial condition, cash flows and results of operations. Additionally, the University's ability to offer distance education programs could be impacted if our composite score falls below 1.5, as that would affect our ability to participate in the national State Authorization Reciprocity Agreement ("SARA"). See "*—If we fail to maintain any of our state authorizations, we will lose our ability to operate in that state and to participate in Title IV programs."*

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***If we do not comply with the Department of Education's administrative capability standards, we could suffer financial penalties, be required to accept other limitations in order to continue participating in Title IV programs, or lose our eligibility to participate in Title IV programs.***

Department of Education regulations specify extensive criteria an institution must satisfy to establish that it has the requisite administrative capability to participate in Title IV programs. These criteria impose requirements that, among other things, an institution administer Title IV programs in accordance with all applicable federal student financial aid requirements, with adequate checks and balances in its system of internal controls over financial reporting, and with capable and sufficient personnel. See the risks to the University described under the heading "*—If our institution fails to maintain adequate systems and processes to detect and prevent fraudulent activity in student enrollment and financial aid, our institution may lose the ability to participate in Title IV programs, Department of Defense military tuition assistance programs, Department of Veterans Affairs veterans education benefit programs, or have participation in these programs conditioned or limited, or face claims from third parties*." The criteria further include, among other requirements, that the institution maintain certain records and reporting, reasonable standards for measuring satisfactory academic progress, and systems for resolving certain financial aid discrepancies. Recent amendments by the Department of Education to the administrative capability regulations, which became effective July 1, 2024, impose additional requirements, including revised and new criteria regarding an institution's validation of high school diplomas, financial aid counseling, career services, provision of clinical or externship opportunities, disbursement of Title IV funds, offering of gainful employment programs, substantial misrepresentations, and aggressive and deceptive recruitment tactics or conduct. The recent amendments also provide the Department of Education with increased and explicit authority to make an adverse administrative capability finding based on a broader set of issues than it has used historically. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Administrative Capability*." If we fail to satisfy any of these criteria, the Department of Education may determine that we lack administrative capability and, therefore, subject us to fines, sanctions, and additional scrutiny, including the limitation, denial, or termination of eligibility for Title IV programs, which could significantly reduce enrollments and revenue, and materially and adversely affect our business and financial condition.

***The University may lose eligibility to participate in Title IV programs if the percentage of our revenue derived from federal funding sources is too high.***

The University, and all other proprietary institutions of higher education, are subject to the so-called "90/10 Rule" under the Higher Education Act. Under this rule, a proprietary institution will be ineligible to participate in Title IV programs for at least two fiscal years if, for any two consecutive fiscal years, it derives more than 90% of its cash basis revenue, as defined in the rule, from Title IV programs or other qualifying federal funding sources, including tuition assistance programs offered by the U.S. Department of Defense (military tuition assistance) and U.S. Department of Veterans Affairs (veterans education benefits). If an institution is determined to be ineligible, any disbursements of Title IV program funds made after the end of the institution's second fiscal year in the measuring period must be repaid to the Department of Education. An institution that derives more than 90% of its cash basis revenue from Title IV programs or other qualifying federal funding sources for any single fiscal year will be automatically placed on provisional certification for two fiscal years and will be subject to possible additional sanctions or requirements determined to be appropriate under the circumstances by the Department of Education. The institution would also be required to provide notice to existing students about the potential loss of Title IV funding. While the Department of Education has broad discretion to impose additional sanctions or requirements on such an institution, there is only limited precedent available to predict what those sanctions might be. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—90/10 Rule*."

New Department of Education regulations, which became effective July 1, 2023 and applicable beginning with our fiscal year 2024, for the first time included revenue derived from tuition assistance programs offered by the U.S. Department of Defense and U.S. Department of Veterans Affairs within the types of funds that are considered federal funding sources under the 90/10 Rule, and this change was a principal cause of the increase in the University's 90/10 Rule percentage from approximately 81% for the fiscal year ended August 31, 2023 to

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approximately 88% of the fiscal year ended August 31, 2024. In July 2025, the Department of Education revised its interpretation of certain federal guidance that had become effective with the new regulations noted above. Specifically, the Department of Education interpreted that institutions are permitted to include revenue in their 90/10 Rule percentage from programs not eligible for Title IV funds if the respective programs are offered through distance education, and the Department of Education allows institutions to retrospectively apply this interpretation to their 90/10 Rule percentages if they elect to do so. We calculated the University's fiscal year 2024 90/10 Rule percentage of 88.3% prior to the Department of Education issuing this revised interpretation, and our fiscal year 2024 percentage would have been 87.7%, or 60 basis points lower than previously calculated, if we applied this revised interpretation. While the University currently remains in compliance with the rule, the new regulations that became effective July 1, 2023 increased the risk that the University may not comply with the 90/10 Rule in the future.

If the University's 90/10 Rule percentage is projected to exceed or exceeds 90% for a given fiscal year, we may be required to take measures to reduce the percentage of revenue that we derive from Title IV program funds or other qualifying federal funds we receive. Such measures could involve actions that reduce our revenue, increase our operating expenses, and/or increase our tuition in order to capture more revenue from sources other than Title IV programs and other qualifying federal funds (thus rendering us less competitive), in each case perhaps significantly. In addition, we may be required to make operational or programmatic changes in the future in order to remain in compliance with the 90/10 Rule, and such changes may materially and adversely impact our business and financial condition. Furthermore, these required changes could make it more difficult to comply with other important regulatory requirements, including the financial responsibility rules described above.

Finally, some state legislatures have in the past proposed legislation that would prohibit institutions from enrolling residents based on even more restrictive funding thresholds than the current federal 90/10 Rule, failure to comply with which could lead to monetary fines, penalties, limitations on offering programs, and/or ultimate loss of operating or degree granting authority in the various states where the University maintains physical operations or, potentially, where its distance education students reside, particularly to the extent that the SARA requirements would be amended to allow such individual state requirements. We expect that states with legislatures, governors or attorneys general that have a particular focus on the higher education industry will continue to pose significant risks in this area.

***Any failure to comply with the Department of Education's "gainful employment" metrics and financial transparency regulations could limit the programs we can offer students, the Title IV eligibility of the impacted programs and/or increase our cost of operations.***

Under the Higher Education Act, proprietary schools are generally eligible to participate in Title IV programs only in respect of educational programs that lead to "gainful employment in a recognized occupation." An initial attempt by the Department of Education in 2010 to promulgate, for the first time, regulations that would have applied program-specific, student outcome-based eligibility criteria to determine whether individual educational programs offered by proprietary schools led to "gainful employment" were judicially rejected prior to implementation. Subsequently revised regulations were implemented by the Department of Education in 2014 but later repealed in 2020. In October 2023, the Department of Education released new financial value transparency and gainful employment regulations, which became effective July 1, 2024, that established two independent "gainful employment" metrics. To maintain Title IV eligibility, an institution must comply with both metrics, along with a related financial value transparency regulation (as described below). The two gainful employment metrics are (i) a debt-to-earnings ratio that compares the median earnings of graduates who received federal financial aid to the median annual payments on loan debt borrowed for the program, and (ii) an earnings premium test that measures whether the typical graduate from a program who received federal financial aid earns more than a typical high school graduate in the same state (or, in some cases, nationally) and within a certain age range in the labor force. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Gainful Employment and Financial Value Transparency*." Any program that fails either or both metrics in a single year would be required to disclose such failure to students, and any program that fails the same metric in any two out of three consecutive years, or is voluntarily discontinued by the institution, would not be eligible to have Title IV reinstated for a minimum of three years. Nearly all programs at the University would be subject to evaluation under these "gainful employment" regulations. The

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Department of Education has indicated that it does not expect to release the applicable gainful employment metrics before the fall of 2025, and, accordingly, we expect that the earliest a program could fail these gainful employment tests, and therefore risk losing access to Title IV federal financial aid, is 2026. At this time, it is difficult to predict which of our programs may not satisfy the forthcoming gainful employment metrics.

The Department of Education's financial value transparency rule requires all colleges to provide certain student and financial information about their programs to the Department of Education. That information, including student debt burdens and program costs, will be published on a Department of Education consumer-facing website to help students make informed enrollment decisions. Beginning in 2026, a student interested in a program deemed to leave students with high debt burdens will need to acknowledge having seen that information before they can enroll.

Our ability to satisfy the gainful employment metrics for certain of our programs will be subject to some extent on factors outside of our control, including, but not limited to, general economic conditions affecting our graduates, changes in labor markets, increases in student borrowing levels, increases in interest rates, changes in the federal poverty income levels, and changes in the percentage of our former students who are current in repayment of their student loans. Additionally, certain programs we offer that typically lead to lower-paying, service-oriented professions may be unable to satisfy the gainful employment metrics and have to be discontinued in order for the University to maintain Title IV eligibility. Additionally, future enrollments could also be impacted if students were required by the transparency rule to acknowledge that the program they are interested in has been known to leave students with high debt burdens. Even if we were able to correct any deficiency in the gainful employment metrics in a timely manner so that the impacted program did not lose Title IV eligibility, the disclosure requirements associated with a program's failure to meet at least one metric may adversely affect our reputation. Each of these impacts could have a material adverse effect on our business, financial condition and results of operations. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Gainful Employment and Financial Value Transparency.*" In addition, it is uncertain whether or how the Department of Education will modify the current gainful employment and financial value transparency rules as a result of the recent amendments to the Higher Education Act introducing the new program eligibility requirements based on student earning outcomes, or for other purposes. See "—*Recent action by Congress that revised the laws governing federal student financial aid programs, including changes to the level of federal student aid funding available to our students and to the requirements educational programs must meet to qualify for such funding, could reduce our enrollment and revenue, and increase our costs of operation.*"

***If we fail to maintain our institutional accreditation, or our institutional accrediting body loses recognition by the Department of Education, we will lose our ability to participate in Title IV programs.***

An institution must be accredited by an accrediting commission recognized by the Department of Education in order to participate in Title IV programs. See "*Business—Regulatory Environment*" and "*Business—Regulatory Environment—Accreditation*," The University is institutionally accredited by the HLC, which satisfies this requirement. In January 2023, the HLC reaffirmed the accreditation of the University for a 10-year period ending in 2032-33. To remain accredited, we must continuously meet accreditation standards relating to, among other things, performance, governance, institutional integrity, educational quality, faculty, administrative capability, resources, and financial stability. If we fail to satisfy any of the HLC's standards, we would be subject to additional oversight and reporting requirements, accreditation proceedings such as a show-cause directive, an action to defer or deny any application for a new grant of accreditation, an action to suspend our accreditation or a program's approval, or other negative actions. Future inquiries or actions by state or federal agencies could negatively impact our accreditation status. If our institutions or programs are subject to accreditation actions or are placed on probationary or other negative accreditation status, we may experience adverse publicity, impaired ability to attract and retain students and substantial expense to obtain unqualified accreditation status. The inability to obtain reaccreditation following period reviews or any final loss of accreditation by the HLC would cause us to lose our eligibility to participate in Title IV programs, cause a significant decline in our total student enrollments and have a material adverse effect on our business, financial condition and results of operations.

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In addition, if the Department of Education ceased to recognize the HLC for any reason, the University would not be eligible to participate in Title IV programs beginning 18 months after the date such recognition ceased unless the HLC was again recognized by, or the University was accredited by another accrediting body recognized by, the Department of Education. If the HLC ceased to be recognized by the Department of Education and the University failed to timely obtain replacement institutional accreditation within the required timeframe, the University would cease to be eligible to participate in Title IV programs and our business would no longer be sustainable in its current form.

***If we fail to satisfy the various accreditation standards of our programmatic accreditors, or fail to satisfy state licensure and certification requirements applicable to our professional licensing programs, we could face restrictions on, or the loss of accreditation for or the ability to offer, certain programs.***

The University offers various professional licensing programs in nursing, education, counseling, and social work that are accredited by specialized accrediting agencies. See "*Business—Accreditation and Jurisdictional Authorizations*." The University is subject to the oversight of these programmatic accreditors and must satisfactorily prove its programs, or any new programs that it seeks to offer, meet the standards of accreditation for that profession. Moreover, the University is required to participate in ongoing accreditation reviews and be responsive to any accreditation standards concerns. Additionally, and in accordance with state and federal requirements, the University's professional licensing programs must meet all specific state requirements for licensure and certification in any state where the program is offered so that graduates of these programs may pursue licensure and certification in their state. The University must maintain and continually monitor the licensing and certification requirements in every state where it offers its professional licensing programs and must meet student notification requirements in the event a student moves to a different jurisdiction or if a program fails to meet the licensing requirements in any given state. If we fail to satisfy the standards of any of those specialized accrediting commissions or state agencies, we could lose the specialized accreditation or the state approval for the affected programs, which could prevent our students from seeking and obtaining licensure or employment, result in materially reduced student enrollments in those programs and have a material adverse effect on our business, financial condition and results of operations. See "*—Failure of the University to resolve examination pass rate concerns with the Commission on Collegiate Nursing Education could result in potential action by the accreditor to limit or remove accreditation from all of the University's Master of Science in Nursing programs*." In addition, if the University seeks initial accreditation of a new program, and that accreditation is denied, the University would be required to report the denial to HLC and potentially other regulators which could have regulatory consequences to the University, result in reputational damage and materially impact the University's enrollment and financial results.

***Failure of the University to resolve examination pass rate concerns with the Commission on Collegiate Nursing Education could result in potential action by the accreditor to limit or remove accreditation from all of the University's Master of Science in Nursing programs.***

The University's Master of Science in Nursing / Family Nurse Practitioner ("MSN/FNP") program, which represented less than 1.0% of the University's fiscal year 2024 revenue, is accredited by the Commission on Collegiate Nursing Education ("CCNE"). The CCNE requires, among other things, that programs leading to additional certification (such as the MSN/FNP program) demonstrate pass rates on applicable certification exams of at least 80%. From 2021 to 2023, the pass rates for the University's MSN/FNP program decreased from 78% to 65%. The University has been continuously working closely with the CCNE and has undertaken a detailed and significant action plan with respect to curriculum revisions and other actions designed to improve the pass rate. If the University cannot ultimately demonstrate compliance, the CCNE could withdraw accreditation of the program. As CCNE accreditation occurs at the degree level (rather than at the individual program level), potential withdrawal of accreditation could impact all of our Master of Science in Nursing programs. The University's Master of Science in Nursing programs are currently undergoing the reaccreditation process with CCNE. As part of that process, MSN/FNP program combined pass rates on the certification exam for calendar year 2024 were reported to CCNE at 78.04%, which is still under the 80% threshold. While a withdrawal of

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accreditation may not have an immediate material impact on our revenue, it could be harmful to our reputation and lead to claims from former students or other materially adverse consequences.

***If we fail to maintain our state authorization, we would lose our ability to participate in Title IV programs.***

To operate and offer postsecondary programs, and to be certified to participate in Title IV programs, we must be authorized to operate by the appropriate post-secondary regulatory authority in each state where we have a physical presence. We are domiciled in the state of Arizona and are authorized to operate there by the Arizona State Board for Private Postsecondary Education. To maintain our state authorization, we must continuously meet standards relating to, among other things, educational programs, facilities, instructional and administrative staff, marketing and recruitment, financial operations, addition of new locations and educational programs, and various operational and administrative procedures. If we fail to satisfy any of these standards, we could lose our state authorization, which would also cause us to lose our eligibility to participate in Title IV programs and have a material adverse effect on our business, financial condition and results of operation.

In addition, substantially all of the University's enrolled students attend our programs online and, in order to participate in the Title IV programs, the University must be authorized to offer its distance education programs in any jurisdiction where it enrolls students in its online programs. The University holds this authorization as an approved participating institution of its home state (Arizona) in SARA. All states except California are members of the SARA compact. As a participating member of SARA, the University is authorized to offer its approved distance education programs to residents of other member states under the structure and oversight of SARA. SARA is recognized by the Department of Education as a method of state authorization for distance education programs. The University is also registered as an out-of-state institution with the California Bureau for Private Postsecondary Education to offer its distance education programs to California students. Whether through direct authorization from states, or through participation in the SARA compact, the University is authorized to offer its approved educational programs at its physical locations and online and must continue to maintain such authorization to effectively operate its business.

In addition, Arizona rules state that the Arizona State Board for Private Postsecondary Education must approve certain changes of ownership or control, including but not limited to a transfer of 50% or more of a privately held institution's voting stock or assets or a change from one business form to another. If the Arizona State Board for Private Postsecondary Education determined that the transactions in connection with this offering constitute a change of ownership or control requiring its approval, the University would need to complete certain change of control procedures with the Arizona State Board for Private Postsecondary Education following the Corporate Conversion and file an application for reauthorization within 60 days. If this process were delayed or the University's application for reauthorization were denied approval, such consequences could have a material adverse effect on our business, financial condition and results of operation.

If the University fails to maintain authorized status in its home state, or otherwise fails to comply with the requirements to participate in SARA or state regulatory requirements to provide distance education in a non-SARA state, the University could lose its ability to participate in SARA or may be subject to the loss of state licensure in Arizona or authorization to provide distance education in such non-SARA state, which could have a material adverse effect on the University. Moreover, pursuant to SARA policy, a change in ownership or control for a SARA participating institution is determined by the institution's home state. Accordingly, if the Arizona State Board for Private Postsecondary Education determines the transactions in connection with this offering constitute a change of ownership or control, the University will be required to complete a reauthorization for approval in Arizona as well as a reauthorization under SARA. During the pendency of the change of control process with Arizona, the University will be placed on provisional status with SARA and must meet any conditions or requirements deemed appropriate by Arizona. See "—*If any of the education regulatory agencies that regulate us delay their approval of, or do not approve, any transaction involving us that constitutes a "change in control," our ability to operate or participate in Title IV programs may be impaired.*" Participation in SARA requires that we comply with the Department of Education's financial responsibility rules, among

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numerous other requirements. Furthermore, the Department of Education has recently proposed regulations that would allow individual states to impose their own new and diverse requirements (in conjunction with the ongoing application of SARA policies) on institutions offering programs in such individual states. See "*Business—Regulatory Environment—State Regulation*." While these regulations have not been adopted to date, if the Department of Education regulations that recognize reciprocity agreements for state authorization purposes were modified in such a fashion, that departure from reciprocity with the institutions' home states would adversely affect the University and would reduce or eliminate the regulatory and operational efficiency that the University enjoys in operating under SARA. Furthermore, we cannot predict the extent to which states will retain membership in SARA, the manner in which SARA's policies may be modified, interpreted, and enforced, our ability to comply with SARA's requirements and retain eligibility, or the impact that failure to meet the SARA requirements may have on our business.

***If our graduates are unable to obtain professional licenses or certifications required for employment in their chosen fields of study, our reputation may suffer and we may face declining enrollments and revenue or be subject to student litigation.***

Certain of our students require or desire professional licenses or certifications after graduation to obtain employment in their chosen fields. Their success in obtaining such licensure depends on several factors, including the individual merits of the student, whether the institution and the program were approved by the relevant government or by the relevant state regulatory authorities, whether the program from which the student graduated meets all professional licensure educational requirements and whether the program is accredited in accordance with state requirements. If one or more state professional licensing authorities refuses to recognize our graduates for professional licensure in the future based on factors relating to us or our programs, the potential growth of our programs would be negatively affected, which could have a material adverse effect on our business, financial condition and results of operations. In addition, we could be exposed to litigation that would force us to incur legal and other expenses that could have a material adverse effect on our business, financial condition and results of operations.

For example, the University recently learned that a Mississippi student in its Bachelor of Science in Education/Early Childhood Education (BSED/ECH) program was denied teacher licensure in Mississippi. The University's teacher licensure students complete an Arizona program that makes them eligible for a Mississippi teacher license via reciprocity. Graduates of this program must first obtain an Arizona teacher license prior to applying for licensure in Mississippi. The subject student received an Arizona license but upon application to Mississippi for licensure, was denied because of a deficiency related to a specific course. This licensure denial appears to be a change in interpretation by the Mississippi Department of Education of the Mississippi licensure requirements, as previous graduates of the BSED/ECH program have received Mississippi teacher licensure via reciprocity despite the same purported deficiency. The University has been in communication with the Mississippi Department of Education about this change in interpretation and, in the meantime, has suspended enrollment of Mississippi residents in the BSED/ECH program. Moreover, the University is revising its BSED/ECH curriculum to require Mississippi students to complete the applicable course in their program before applying for Arizona licensure.

***We may lose our eligibility to participate in Title IV programs if our student loan default rates are too high.***

To remain eligible to participate in Title IV programs, an educational institution's student loan cohort default rates must remain below certain specified levels. Each cohort is the group of students who first enter into student loan repayment during a federal fiscal year (ending September 30), and the default rate is the percentage of that cohort who default on their payment by the end of the second full year after such repayment start date. The cohort default rates are published by the Department of Education approximately 12 months after the end of the applicable measuring period. Thus, in September 2024, the Department of Education published the cohort default rates for the 2021 cohort. An educational institution loses eligibility to participate in Title IV programs if its cohort default rate equals or exceeds 40% for any given year or 30% for three consecutive years. If an

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institution's cohort default rate equals or exceeds 30% for any given year, it must establish a default prevention task force and develop a default prevention plan with measurable objectives for improving the cohort default rate. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Student Loan Cohort Default Rates.*" As part of the federal relief enacted regarding the COVID-19 pandemic, federal student loan payments were paused until September 1, 2023, causing three-year cohort default rates to decline significantly beginning in 2020. The restarting of payment obligations in September 2023 following the multi-year COVID-19 interruption is expected to cause a material increase in reported rates, which are not yet known. Although our cohort default rates, even prior to the COVID-19 pause, have historically been significantly below the mandated levels, any increase in interest rates or declines in income or job losses for our students could contribute to higher default rates on student loans. While we anticipate that there will be substantial increases in cohort default rates among institutions generally and that our rates will also increase, we cannot predict the extent of any such increases in our cohort default rates or how our future rates will compare to our historical pre-pandemic levels and to the Department of Education's student loan default rate thresholds. Exceeding the student loan default rate thresholds and losing our eligibility to participate in Title IV programs would have a material adverse effect on our business, prospects, financial condition, and results of operations. Any future changes in the formula for calculating student loan default rates, economic conditions, or other factors that cause our default rates to increase could threaten our eligibility to participate in some or all of the Title IV programs and have a material adverse effect on our business and financial results. In addition, if Congress or the Department of Education restricts permitted types of default prevention assistance, the default rates of our former students may be negatively impacted.

***If we fail to comply with the Department of Education's incentive compensation rule, we could be subject to sanctions and other liabilities.***

As part of an institution's PPA with the Department of Education and under the Higher Education Act and Title IV regulations, an institution participating in Title IV programs cannot provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or the award of Title IV financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance. The restrictions of this incentive compensation rule, which extend to any third-party companies that an educational institution contracts with for student recruitment, admissions, or financial aid awarding services, prohibit us from offering any bonus or incentive-based compensation based on the successful recruitment, admission or enrollment of students or the award of Title IV financial aid to any of our employees involved with or responsible for such activities. The lack of interpretive guidance regarding the rule, however, has caused uncertainty about what constitutes incentive compensation and which employees are covered by the regulation and has made the development of effective and compliant performance metrics for certain categories of employees or service providers more difficult to establish. If the University pays a bonus, commission, or other incentive payment in violation of applicable Department of Education rules or if the Department of Education or other third parties interpret the University's compensation practices as noncompliant, the University could be subject to sanctions, litigation, or other liability. Such failure and resulting penalties, fines or liabilities may have a material adverse effect on our business, financial condition and results of operation. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Restrictions on Incentive Compensation.*"

***If we fail to comply with the Department of Education's misrepresentation rules or its rules prohibiting aggressive and deceptive recruitment tactics, we could be subject to sanctions and other liabilities.***

The Higher Education Act prohibits an institution that participates in Title IV programs from engaging in "substantial misrepresentation" of the nature of its educational programs, its financial charges, or the employability of its graduates. The Department of Education defines "misrepresentation" to include any false, erroneous or misleading statement made by an institution or its representative. A statement is deemed "misleading" if it has the likelihood or tendency to mislead under the circumstances. Misrepresentations also include statements that omit information in such a way as to make the statement false, erroneous, or misleading.

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A misrepresentation rises to the level of a "substantial misrepresentation" if, under the totality of circumstances, the misrepresentation could reasonably be relied upon to that person's detriment. In recent years, the Department of Education has increased its efforts to hold institutions accountable for substantial misrepresentations. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Substantial Misrepresentation.*" In addition, Department of Education regulations prohibit an institution that participates in Title IV programs, any of its representatives, or any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs, marketing, advertising, lead generation, recruiting or admissions services, from engaging in activities that constitute aggressive and deceptive recruitment tactics or conduct. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Aggressive and Deceptive Recruitment Tactics*." If the Department of Education were to interpret statements made by the University or on the University's behalf to be in violation of the misrepresentation rules or the aggressive and deceptive recruitment rules, it could terminate, limit or suspend our participation in Title IV programs, deny our applications to add new programs or locations, or initiate other proceedings or sanctions, any of which could have a material adverse effect on our business, financial condition and results of operation.

***If any of the education regulatory agencies that regulate us delay their approval of, or do not approve, any transaction involving us that constitutes a "change in control," our ability to operate or participate in Title IV programs may be impaired.***

If the University engages in a transaction that involves a change in control of the Company or the University, as such term is defined under the standards of the Department of Education, the HLC, or any other applicable state education agency or accrediting commission, it must notify or seek the approval of each such agency. These agencies do not have uniform criteria for what constitutes a change in control. Transactions or events that typically constitute a change in control include significant acquisitions or dispositions of the voting stock and/or assets of an institution or its parent company, and significant changes in the corporate form, governance structure, or composition of the board of directors of an institution or its parent company. Some of these transactions or events may be beyond our control. Our failure to obtain, or a delay in receiving, approval of any change in control from the Department of Education, the HLC, or any other applicable state education agency or accrediting commission, including with respect to a change of corporate structure, ownership, or control in connection with this offering, could impair our ability to operate or participate in Title IV programs, which could have a material adverse effect on our business, financial condition and results of operations. Our failure to obtain, or a delay in receiving, approval of any change in control from any other state in which we are currently licensed or authorized, or from any of our specialized accrediting commissions, could require us to suspend our activities in that state or suspend offering the applicable programs until we receive the required approval, or could otherwise impair our operations. The potential adverse effects of a change in control could influence future decisions by us and our stockholders regarding the sale, purchase, transfer, issuance, or redemption of our stock, which could discourage bids for your shares of our stock and could have an adverse effect on the market price of your shares.

Under the Department of Education's regulations, an institution that undergoes a change in control loses its eligibility to participate in Title IV programs and must apply to the Department of Education to reestablish such eligibility. We submitted a description of this offering to the Department of Education in March 2025, asking that it confirm our understanding that this offering will not constitute a change in control under Department of Education standards. While there is no formal mechanism for making this request to the Department of Education and the Department of Education is not required to provide any such requested confirmation, on April 22, 2025, the Department of Education confirmed to us that this offering will not constitute a change in ownership resulting in a change in control. If the Department of Education were to reconsider that determination, or if it determined that subsequent offerings or transactions do constitute a change in control under their standards, the University will be subject to a recertification approval requirement that will include extensive documentary submission requirements and to reviews by the Department of Education of the University's financial and administrative capability and to extensive prior review and approval procedures by the HLC. Under some circumstances, the Department of Education may continue an institution's participation in Title IV

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programs on a provisional basis pending completion of the change in control approval process. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Change in Ownership or Control*."

The HLC has informed the University that this offering does not require prior review and approval by HLC under HLC's policies governing changes of control, structure, or organization. If the Department of Education were to reconsider the determination described above, however, the HLC would be expected to require prior review and approval of this offering, which would significantly delay this offering. Furthermore, additional subsequent offerings or transactions may constitute a change in ownership or control of the University under the HLC standards and may therefore require approval of the HLC Board of Trustees, in which case the HLC may undertake an evaluation of the effect of the change on the continuing operations of the University for purposes of determining if continued accreditation is appropriate, which evaluation may include a comprehensive review. Any requested approval from HLC may be granted by HLC without conditions, or with conditions that could limit the University's operations, or could be denied, which would effectively block the applicable offering.

In addition, Arizona rules state that the Arizona State Board for Private Postsecondary Education must approve certain changes of ownership or control, including but not limited to a transfer of 50% or more of a privately held institution's voting stock or assets or a change from one business form to another. If the Arizona State Board for Private Postsecondary Education determined that the transactions in connection with this offering constitute a change of ownership or control requiring its approval, the University would need to complete certain change of control procedures with the Arizona State Board for Private Postsecondary Education following the Corporate Conversion and file an application for reauthorization within 60 days. If this process were delayed or the University's application for reauthorization were denied approval, such consequences could have a material adverse effect on our business, financial condition and results of operation.

Moreover, pursuant to SARA policy, a change of ownership or control for a SARA participating institution is determined by the institution's home state. Accordingly, if the Arizona State Board for Private Postsecondary Education determines the transactions in connection with this offering constitute a change of ownership or control requiring its approval, the University will be placed on provisional status under such additional oversight measures as its home state considers necessary for purposes of ensuring SARA requirements are met regarding program quality, financial stability, and consumer protection. If the University were not successful in meeting requirements as set by the Arizona State Board for Private Postsecondary Education, or in completing the change of control procedures and subsequent reauthorizations with Arizona and SARA, we could lose Arizona and SARA authorization and no longer be able to enroll distance education students unless and until the University is reauthorized in Arizona and subsequently SARA, or obtains individual authorizations in each state. This could have a significant impact on the University's ability to compete in the distance education market, as well as on the University's financial performance, and make it vulnerable to additional challenges in obtaining authorization in individual states.

California is not a member of the SARA compact, and the University is registered as an out-of-state institution with the California Bureau for Private Postsecondary Education to offer its distance education programs to California students. Unless California decides to join SARA as a member state, the University must continue to maintain its individual state authorization through registration as an out-of-state institution. If California's regulations or statutes were to change, the University would need to comply with those changes to continue its separate authorization to offer distance education to California students. If the University was not able to meet California's state authorization requirements to offer distance education in the future, such consequences could have a material adverse effect on our business, financial condition and results of operation.

***The University is subject to sanctions if it fails to calculate accurately and make timely payment of refunds of Title IV program funds for students who withdraw from the University.***

The Higher Education Act and the Department of Education's regulations require the University to calculate refunds of unearned Title IV program funds awarded or disbursed to students who withdraw from their

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educational program before completing the payment period or period of enrollment for which those funds were awarded or disbursed and to return those unearned funds to the Department of Education in a timely manner, within 45 days of the date the University determines that the student has withdrawn. If refunds are not properly calculated or timely returned for a sufficient percentage of students, the University may be required to post a letter of credit with the Department of Education or be subject to sanctions, liabilities or other adverse actions by the Department of Education. Such consequences could have a material adverse effect on our business, financial condition and results of operation. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Return of Title IV Funds*."

***If our institution fails to maintain adequate systems and processes to detect and prevent fraudulent activity in student enrollment and financial aid, our institution may lose the ability to participate in Title IV programs, Department of Defense military tuition assistance programs, or Department of Veterans Affairs veterans' education benefits programs, or have participation in these programs conditioned or limited, or face claims from third parties.***

Institutions must maintain systems and processes to identify and prevent fraudulent applications for enrollment and financial aid. We have been the target of fraudulent and abusive activity, including related to efforts by unqualified third parties to apply to and enroll in our programs and obtain Title IV program funds, and believe that the risk to us of outside parties attempting to perpetrate fraud in connection with the award and disbursement of Title IV program funds, including as a result of identity theft, is heightened due to our being an almost exclusively online education provider. In recent periods, we, and other institutions like us, have experienced a measurable increase in these types of suspicious activities resulting in greater numbers of fraudulent applications and enrollments, including by persons receiving the Title IV funds. Accordingly, we have implemented additional checks and balances to supplement our processes aimed at ensuring that only qualified persons apply to and enroll in our programs and seek or obtain the Title IV program funds. The Department of Education recently issued new guidance regarding institutions' responsibilities to prevent fraud and protect the integrity of the Title IV programs. If the systems and processes that our institution has established to detect and prevent fraud, or our administration of Title IV programs, military tuition assistance, or veterans' education benefits are deemed inadequate or noncompliant in connection with preventing these suspicious activities, the Department of Education may find that our institution has failed to comply with Title IV requirements, including but not limited to the Department of Education's administrative capability requirements. See "—*If we do not comply with the Department of Education's administrative capability standards, we could suffer financial penalties, be required to accept other limitations in order to continue participating in the Title IV programs, or lose our eligibility to participate in the Title IV programs.*" Any significant failure to adequately detect fraudulent activity related to student enrollment and financial aid could cause us to fail to meet accreditor standards, or could subject us to complaints or claims by affected third parties. Furthermore, accrediting agencies that evaluate institutions offering online programs require such institutions to have processes to establish that a student who registers for such a program is the same student who participates in and receives credit for such program. Our failure to meet the requirements of the Department of Education could result in the assertion of liabilities by the Department of Education for the return of Title IV funds or the loss of accreditation, which could result in the loss of our ability to participate in Title IV programs or other federal assistance programs and have a material adverse effect on our business, financial condition and results of operation.

***The U.S. political and economic environment, including the legal, regulatory, administrative and policy changes being pursued by the new U.S. presidential administration, may materially affect our business operations and financial performance.***

In recent decades, our industry has faced an uncertain political and economic environment as important legal, regulatory and policy approaches to higher education in the United States have changed from administration to administration and as a result of changes in Congressional control. Changes in federal policy by the executive branch and regulatory agencies may occur over time through a new presidential administration's executive orders or policy and personnel changes or through a new Congress' legislative priorities, each of which

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can lead to increased oversight of education providers, additional regulations, new interpretations of existing regulations, and/or uncertainty as to the impact of new regulations on those implemented by prior administrations. For example, in addition to the impact that the recent changes to the Higher Education Act may have on the participation by some of our students or programs in the federal student aid programs, those amendments also create uncertainty as to what impact new regulations and policies implementing those statutory changes may have on the University and its administration of the Title IV programs. Overall, these changes from administration to administration have materially increased our regulatory and compliance costs over time.

Executive actions and executive orders, as well as any tandem regulatory changes, implemented by the new administration and its appointees, such as the executive order requiring the elimination of diversity, equity and inclusion initiatives, can require significant management attention to understand and assure compliance and may require changes in our business operations or programs. Others could turn out to be favorable to our industry. For example, in April 2025, the new administration signed a memorandum directing executive agencies to rescind regulations that are unlawful under recent Supreme Court decisions, which could result in certain agencies overturning one or more regulations to which we are currently subject. Still others could adversely impact our industry, including from an administrative perspective, if announced reductions in employee headcount and funding at the Department of Education and other applicable agencies, or steps being taken to seek the closure of the Department of Education and the reallocation of certain of its functions to other branches of the federal government, result in slower processing of Title IV matters, program approvals, or other applicable functions that directly or indirectly impact our operations and business. In this regard, in March 2025, the Department of Education implemented an extensive reduction in force and the President issued an executive order directing the Secretary of Education "to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities . . ." On May 22, 2025, a U.S. District Court preliminarily enjoined the Department of Education from carrying out the reduction in force and the executive order, and on June 6, 2025, the government asked the U.S. Supreme Court for a stay of the injunction, which the Supreme Court granted on July 14, 2025. That litigation remains ongoing. The reductions in the Department of Education workforce, plans for closure of the Department of Education, and other future changes in federal laws and regulations and the interpretation and implementation of such laws and regulations, could affect us in substantial and unpredictable ways. We cannot predict what additional actions the new administration will take with respect to the operations of the Department of Education or the response of the staff of the Department of Education to any such actions; the extent to which the new administration and Congress, or any future administration or Congress, will act to change or eliminate or implement new statutes, regulations, standards, policies, and practices; the form that new statutes, regulations, standards, policies, or practices may take or the extent to which those statutes, regulations, practices or policies may impact us or federal funds disbursed to schools through federal financial aid programs; or whether any challenges to actions taken by the new administration will be successful. Significant changes to the Department of Education or to federal regulation of higher education could have a material adverse impact on our enrollment, revenue, results of operations, and financial condition. In addition, we expect our regulatory and compliance costs to continue to increase for the foreseeable future, which will adversely affect our financial performance.

Additionally, levels of U.S. federal government spending are difficult to predict. Considerable uncertainty exists regarding the spending priorities of the new U.S. presidential administration and Congress and how future budget and program decisions will unfold, including the extent to which future spending reductions may impact us and our industry generally. Pressures on and uncertainty surrounding the U.S. federal government's budget, and potential changes in budgetary priorities, could adversely affect the funding of federal programs providing financial assistance to our students, which could in turn adversely affect our business, financial condition and operating results.

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***Our unauthorized release of, or failure to secure, confidential information could subject us to civil penalties or cause us to lose our eligibility to participate in Title IV programs.***

As an educational institution participating in federal student assistance programs, we collect and retain certain confidential and personal information, including financial information regarding enrollees or their sponsors. Such information may be subject to federal and state privacy and data security rules, including the Family Educational Rights and Privacy Act, the Health Insurance Portability and Accountability Act, the Gramm Leach Bliley Act, and the Fair and Accurate Credit Transactions Act. The Department of Education, which is one of multiple governmental agencies with oversight authority in regard to confidential and personal information, has in recent years stated that it is exercising, and will continue to exercise, heightened scrutiny in regard to the protection of confidential and personal information by Title IV-participating institutions. Our release or failure to secure confidential information or other non-compliance with these rules would likely constitute non-compliance with our obligations under our PPA with the Department of Education and under federal and state privacy and data security rules, and could subject us to fines, loss of our capacity to conduct electronic commerce, and loss of eligibility to participate in Title IV programs, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

***Our reputation and our stock price may be negatively affected by the actions of other postsecondary educational institutions.***

In recent years, the Department of Education, the United States Department of Justice, the SEC, the FTC, state attorneys general, and state governmental agencies, among others, have initiated regulatory proceedings and litigation against various postsecondary educational institutions, including the University, relating to, among other allegations, deceptive trade practices, false claims against the government, and non-compliance with Department of Education requirements, state education laws, and state consumer protection laws. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Federal Trade Commission Investigation*" and "*—Attorney General Investigations*." These actions have attracted adverse media coverage and have been the subject of legislative hearings and regulatory actions at both the federal and state levels, focusing not only on the individual schools but in some cases on the larger for-profit postsecondary education sector as a whole. Adverse media coverage regarding other for-profit education companies or other educational institutions could damage our reputation, result in lower enrollments, revenue, and operating profit, and have a negative impact on our stock price. Such coverage could also result in increased scrutiny and regulation by the Department of Education, Congress, accrediting commissions, state legislatures, state attorneys general, or other governmental authorities of all educational institutions, including us.

**Risks Related to Our Business** 

***We face intense and increasing competition in the post-secondary education market, which could decrease our market share and create pricing pressures.***

The post-secondary education market is highly competitive. We compete for students with traditional public and private degree-granting institutionally accredited colleges and universities, other proprietary degree-granting institutionally accredited schools and other alternatives to higher education. We also compete with various emerging non-traditional, credit-bearing and noncredit-bearing education programs, offered by both proprietary and not-for-profit providers. Some of our competitors have greater financial and non-financial resources than we have and are able to offer programs similar to ours at a lower tuition level for a variety of reasons, including the availability of direct and indirect government subsidies, government and foundation grants, large endowments, tax-deductible contributions and other financial resources not available to proprietary institutions, or by providing fewer student services or larger class sizes. In addition, a significant and increasing number of traditional four-year and community colleges, which are subject to fewer regulatory constraints, offer distance learning and other online education programs, including programs that are offered wholly online and geared towards the needs of working adults. As the proportion of traditional colleges and universities providing alternative learning modalities increases, we will face increased competition from these institutions, including

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those with highly regarded reputations, the degrees from which are perceived as more valuable in the workplace. We may also face increased competition in maintaining and developing new corporate and other engagements with employers, particularly as employers become more selective as to which online universities they will encourage or offer scholarships to their employees to attend and as to the online universities from which they will hire prospective employees. We may limit tuition increases or increase spending in response to competition in order to retain or attract students or pursue new market opportunities. If we cannot effectively respond to competitors, however, it could reduce our enrollment. We cannot be sure that we will be able to compete successfully against current or future competitors or that competitive pressures faced by us will not adversely affect our market share, revenue and operating margin.

***A decline in the overall growth of enrollment in post-secondary institutions, or in the number of students seeking degrees online, could lead to lower enrollment, which could negatively impact our future growth.***

Based on industry analyses, enrollment growth in degree-granting, post-secondary institutions is slowing and the number of high school graduates that are eligible to enroll in degree-granting, post-secondary institutions is expected to continue to decrease over the next few years. In order to maintain current growth rates, we aim to maintain or increase market share in existing markets. Student enrollment at the University, however, is impacted by many factors, including macroeconomic conditions that are beyond our control. For example, during periods when the unemployment rate declines or remains stable, prospective students may have more employment options, leading them to choose to work rather than to pursue post-secondary education. Enrollment may also be impacted by affordability concerns and negative perceptions of the value of a college degree, which can increase prospective students' reluctance to take on debt, including during periods of higher unemployment, and make it more challenging for us to attract and retain students, as well as demographic trends in family size, job growth in fields unrelated to our core disciplines or other societal factors. Education providers are also introducing new education and operating models focused on reducing costs and time to completion, including competency-based and adaptive learning models, intensive and immersive skills-focused bootcamps, other non-degree programs and career-focused educational pathways, tools and services. The increasing acceptance of these programs and pathways among employers as a means to fulfill the huge demand for IT and business career upskilling may make our degree programs that focus on those fields less attractive to prospective students. In addition, student enrollment may be negatively affected by our reputation and any negative publicity related to us. While we continue to make investments in our business that are designed to improve student experiences, retention and academic outcomes and support the sustainable and responsible growth of the University and our reputation, the success of these initiatives may reduce over time. Our failure to attract new students, or the decisions by prospective students to seek degrees in disciplines that we do not offer or to pursue alternative non-degree competency-based credentials rather than our degree programs, would have an adverse impact on our future growth.

***Our financial performance depends on our ability to develop and maintain favorable awareness of the University among, and enroll and retain, students.***

We expend significant resources on public engagement and marketing in order to build favorable awareness of the University and the programs we offer. Creating this awareness is critical to our ability to attract prospective students, to convert prospective students to enrolled students in a cost-effective manner, and to retain these enrolled students throughout their programs. Some of the factors that could prevent us from successfully enrolling and retaining students in our programs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• structural changes in the marketing landscape, including fundamental changes to internet search (both organic
and sponsored), the elimination of third-party "cookies" and the transformation of television, that could result in less efficient student acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the cost or efficacy of our advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws or other regulatory requirements that limit the amount we may spend on advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased competition from schools offering distance learning and other online educational programs;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in the perceived or actual economic benefits that students derive from our programs or education in
general;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in or perceived low student pass rates for professional licenses and other examinations necessary
for students to work in their chosen fields;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory investigations or enforcement proceedings that may damage our or the industry's reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased regulation of online education, including in states in which we do not have a physical presence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation that may damage our or the industry's reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to continue to recruit, train and retain quality faculty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• student or employer dissatisfaction with the quality of our services and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tuition rate reductions by competitors that we are unwilling or unable to match;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in the acceptance of online education;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions to our information technology systems; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative social media sentiment.

If one or more of these factors reduces demand for our programs, our enrollment could be negatively affected or our costs associated with each new enrollment could increase, or both, either of which could have a material adverse impact on our business and financial condition.

***Our Tuition Price Guarantee program limits our ability to raise additional revenue from current students through tuition increases, and any changes to the Tuition Price Guarantee program could harm our reputation, enrollment numbers, retention rates and overall business and financial performance.***

Effective January 2018, the University implemented its Tuition Price Guarantee program. Under this program, a student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date, thereby giving each of our students certainty in the price of tuition through the duration of their programs even if rates are subsequently increased for students who enroll at later dates. The net revenue we generate in a given period largely depends on the total number of courses taken by the enrolled student population and the tuition price per course. As a result of the Tuition Price Guarantee, while we can increase tuition rates over time for new students as they enroll, we may not increase the tuition rates we charge to currently enrolled students even if our costs to provide their programs increase over their programs' duration. Accordingly, our net revenue may be materially lower than the net revenue that could be generated if all enrolled students were subject to normal course tuition increases. In addition, because we heavily promote our Tuition Price Guarantee as a beneficial means of providing students with tuition price certainty, any modification or elimination of this program could adversely affect our reputation among current and prospective students, cause our enrollment and retention to decline, and adversely impact our business and financial performance.

***The occurrence of natural or man-made catastrophes could have a material adverse effect on our business, financial condition, cash flows and results of operations.***

Natural events, acts of God, epidemics, pandemics or other public health emergencies (such as the COVID-19 pandemic), terrorist attacks and other acts of violence, cyber-terrorism or other catastrophes could result in significant worker absenteeism, increased student attrition rates, voluntary or mandatory closure of facilities, our inability to meet dynamic employee health and safety requirements, and other disruptions to our business. In addition, these events could adversely affect, and, in the case of the COVID-19 pandemic, did adversely affect, global economies, market conditions and business operations across industries worldwide, including our industry. Any of these events, their consequences or the costs related to mitigation or remediation could have a material adverse effect on our business, financial condition, results of operations and prospects.

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***If we fail to adapt to changing market needs or new technologies, our business may be adversely affected.***

The nature of the skills required by employers can evolve rapidly in today's changing economic and technological environment and our educational programs must evolve in response to these changes. While we have invested significant resources to develop and implement features that enhance the online classroom experience, such as delivering course content through streaming video, simulations, and other interactive enhancements, our existing and new programs may not meet the needs of current or prospective students or the employers of our graduates. Even if we can develop acceptable new programs that meet current market demands, we may not be able to offer those new programs as quickly as required by prospective employers or as quickly as our competitors can do so. In addition, we may be unable to obtain, or timely obtain, specialized accreditations or licenses that may make certain programs desirable to students. If we are unable to adequately respond to changes in market requirements due to regulatory or financial constraints, unusually rapid technological changes, or other factors, our ability to attract and retain students could be impaired, the rates at which our graduates obtain jobs involving their fields of study could suffer, and our business and financial condition could be adversely affected.

Establishing new academic programs or modifying existing programs requires us to make investments, incur marketing expenses and reallocate other resources. We may have limited experience with the courses in new areas and may need to modify our systems and strategy or enter into arrangements with other educational institutions to provide new programs effectively and profitably. If we are unable to offer new programs in a cost-effective manner or are otherwise unable to effectively manage the operations of newly established academic programs, our business, financial condition and results of operations could be adversely affected.

***Our strategy is to focus on positive student outcomes and the long-term success of students rather than short-term interests of our stockholders, which may negatively influence financial performance.***

We may take actions that we believe will have a positive impact on student outcomes and the long-term success of students, even if these actions may not maximize our short-term or medium-term financial results for investors. We believe this focus on student outcomes and success will benefit the University in the long-term. However, these anticipated long-term benefits may be slow to materialize or may not materialize at all. Our student-centric approach may have an adverse impact on our operational and financial performance and negatively impact our stock price.

***If we do not maintain existing, and develop additional, B2B relationships with employers, our business may be impaired.***

We currently have relationships with large employers to provide their employees with the opportunity to obtain degrees and professional development certificates through us while continuing their employment. These relationships are an important part of our strategy, as they provide us with potential working adult students for particular programs and also increase our reputation among high-profile employers. In addition, degree-granting programs in which employers directly pay tuition have a beneficial impact on our 90/10 Rule percentage calculation by reducing the proportion of our cash basis revenue attributable to Title IV program funds. If, for whatever reason, we are unable to further grow our existing relationships or develop new relationships, if our existing relationships deteriorate or end, or if we fail to offer programs that teach skills demanded by employers, our efforts to attract potential working adult students may be impaired, which could materially and adversely affect our business and financial condition and our compliance with applicable regulations.

***If we cannot attract or retain a qualified senior management team, our business could be adversely affected.***

Our success to date has largely depended on, and our future performance will continue to depend on, the skills, efforts, and motivation of our senior management team, who generally have significant experience with our business and the education industry. Our future success also depends on our continued ability to attract and retain qualified personnel. The loss of the services of any of our key personnel, or our failure to attract and retain other qualified and experienced personnel on acceptable terms, could adversely affect our business results.

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***To effectively educate our students, we must continue to attract and retain qualified faculty members.***

We employ approximately 2,300 faculty members, of which the majority are adjunct, part-time faculty. In order to effectively educate our students, we must retain a large number of faculty on an ongoing basis and keep our faculty engaged and focused on the mission of delivering quality education. If we fail to attract and retain sufficient numbers of qualified faculty members, fail to adequately train new faculty members, or allow our relations with faculty members to deteriorate, our ability to serve our students would be impaired, and we may be required to reduce the scope or number of the classes available to our students, any of which could have a material adverse impact our business.

***If we are unable to successfully conclude pending litigation and governmental inquiries, our business and financial condition could be adversely affected.***

In the ordinary conduct of our business, we are periodically subject to lawsuits, demands in arbitrations, investigations, regulatory proceedings or other claims, including, but not limited to, claims involving current and former students, routine employment matters, business disputes and regulatory demands. See "*Business—Legal Proceedings"* for further discussion of certain pending matters. These matters may cause us to incur substantial damages or settlement costs in excess of our insurance coverage related to these matters or to pay substantial fines or penalties, and they also may require significant time and attention from our management or cause reputational harm, all of which may cause our business to suffer. In addition, an adverse outcome in any of these matters could also materially and adversely affect our licenses, accreditations and eligibility to participate in Title IV programs.

***Our business may be adversely affected if we are unable to adequately establish, maintain, protect and enforce our intellectual property and proprietary rights or prevent third parties from making unauthorized use of such rights.***

Our success depends in part on our ability to protect our intellectual property and proprietary rights, which are an essential asset of our business. Failure to adequately protect our intellectual property rights could result in our competitors offering similar educational programs and services, potentially resulting in the loss of our competitive advantage and a decrease in our revenue, which would adversely affect our business prospects, financial condition and results of operations. We rely on a combination of intellectual property rights, such as copyrights, trademarks, trade secrets (including know-how), patents and domain names, in addition to employee and third-party confidentiality agreements, intellectual property licenses and other contractual rights, to establish, maintain, protect and enforce our rights in our curricula and other course materials, technology, proprietary information, processes and other assets. For example, we rely on trademarks to protect our rights to various marks and logos associated with our products and services. If our trademarks are not adequately protected, then we may not be able to build and maintain name recognition in our markets of interest and our business may be adversely affected. We also rely on agreements under which we contract to own, or license rights to use, intellectual property developed by faculty members, content experts and other third parties. We cannot be sure that these measures are adequate, that we have secured, or will be able to secure, appropriate permissions or protections for all of the intellectual property rights we use or claim rights to, or that third parties will not terminate our license rights. For example, we cannot be certain that patents will be granted with respect to any of our pending patent applications or with respect to any patent applications filed by us in the future, nor can we be sure that any of our existing patents or any patents granted to us in the future will be commercially useful in protecting our technology. Even if we are able to obtain intellectual property rights, we cannot be sure that such rights will permit us to take advantage of current market trends or otherwise provide competitive advantages. Furthermore, intellectual property laws and our procedures and restrictions provide only limited protection and any of our intellectual property rights may be challenged, invalidated, circumvented, infringed or misappropriated. If we fail to protect our intellectual property rights adequately, we may lose an important advantage in the markets in which we compete.

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Our intellectual property rights and the enforcement or defense of such rights may be affected by developments or uncertainty in laws and regulations relating to intellectual property rights. Moreover, many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, may not favor the enforcement of trademarks, copyrights, trade secrets and other intellectual property protections, which could make it difficult for us to stop the infringement, misappropriation or other violation of our intellectual property or marketing of competing products in violation of our intellectual property rights generally.

Despite our efforts to protect our intellectual property rights, unauthorized third parties may attempt to use, duplicate or copy our intellectual property rights, including proprietary aspects of our student recruitment and engagement strategies, educational delivery methods and systems, curricula and online resource material. Furthermore, our efforts to protect these rights may be insufficient or ineffective. The result is that any of our intellectual property rights may be challenged, which could result in them being narrowed in scope or declared invalid or unenforceable. In addition, there can be no assurance that our intellectual property rights will be sufficient to protect against others offering educational programs, services or technologies that are substantially similar or superior to ours and that compete with our business.

Our efforts to protect our intellectual property may require use of funds in litigation to seek to protect our proprietary rights against any infringement, misappropriation or other violation, which could have a material adverse effect on our business and financial condition.

We also rely upon unregistered proprietary information in the operation of our business. For example, we rely on trade secrets to protect intellectual property that may not be patentable, or that we believe is best protected by means that do not require public disclosure. While it is our policy to enter into confidentiality agreements with employees and third parties to protect our proprietary expertise, know-how and trade secrets, and other confidential or proprietary information, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to the same and, even if entered into, these agreements may be breached or may otherwise fail to prevent disclosure, third-party infringement or misappropriation of our confidential or proprietary information. These agreements also may be limited as to their terms and may not provide an adequate remedy in the event of unauthorized disclosure or use of confidential or proprietary information. Monitoring unauthorized uses and disclosures is difficult, and we do not know whether the steps we have taken to protect our confidential or proprietary information will be effective. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret or other confidential or proprietary information can be difficult, expensive and time-consuming, and the outcome can be unpredictable.

In addition, our trade secrets and other confidential or proprietary information may otherwise become known or be independently developed by our competitors or other third parties. If any of the same were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us, which could have a material adverse effect on our business. Furthermore, to the extent that our employees, consultants, contractors, and other third parties use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. Costly and time-consuming litigation could be necessary to enforce and determine the scope and validity of our proprietary rights, and the failure of our confidentiality agreements to protect our confidential or proprietary information or trade secrets could result in significantly lower revenue, reduced or eliminated profit margins, or other adverse effects on our business and financial condition.

Litigation may be necessary to protect our trade secrets and otherwise enforce our intellectual property rights. If we decide to take legal action to protect, defend or enforce our intellectual property rights, our efforts may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Any suit or proceeding initiated by us concerning the violation by third parties of our intellectual property rights could result in substantial costs and diversion of our resources and our management's attention and could have a material adverse effect on our financial condition and results of operations, regardless

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of the final outcome of such legal action. Furthermore, it could result in a court or governmental agency invalidating or rendering unenforceable our patents or other intellectual property rights upon which the suit or proceeding is based.

We will not be able to protect our intellectual property if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property. However, the costs associated with enforcing patents, confidentiality agreements or other intellectual property rights may make aggressive enforcement impracticable. We may be unable or unwilling to incur the costs and resources necessary to determine whether third parties are using our intellectual property rights without our authorization. The undetected or unremedied use of our intellectual property rights or the development or acquisition of intellectual property by third parties could reduce or eliminate any competitive advantage we may have as a result of our intellectual property, adversely affecting our business prospects, financial condition and results of operations.

***We may become subject to litigation brought by third parties claiming infringement, misappropriation or other violation by us of their intellectual property rights.***

Our commercial success depends in part on avoiding infringement, misappropriation or other violations of the intellectual property and proprietary rights of third parties. However, we have in the past been, and may in the future, become party to disputes from time to time over rights and obligations concerning intellectual property held by third parties, and we may not prevail in any such future disputes. For example, third parties may allege that we have infringed upon or not obtained sufficient rights in the technologies used in our financial aid and educational delivery systems, the content of our courses or other educational materials or in our ownership or uses of other intellectual property claimed by that third party. Some third-party intellectual property rights may prove to be extremely broad, and it may not be possible for us to conduct our operations in such a way as to avoid violating those intellectual property rights.

As we face increasing competition and as a public company, the possibility of intellectual property rights claims against us will grow. Such claims and litigation may involve patent holding companies or other adverse intellectual property rights holders who have no relevant product revenue (often referred to as "non-practicing entities" or "patent trolls"), and, therefore, our own pending patents and other intellectual property rights may provide little or no deterrence to these rights holders in bringing intellectual property rights claims against us. There may be intellectual property rights held by others, including issued or pending patents and trademarks, that cover significant aspects of our technologies, content, branding or business methods, and we cannot be sure that we are not infringing or violating, and have not infringed or violated, such third-party intellectual property rights, or that we will not be held or alleged to have done so in the future. We expect that we may receive notices in the future that claim that we or our partners, or clients using our solutions and services, have misappropriated or misused other parties' intellectual property rights, particularly as the number of competitors in our market grows and the functionality of applications amongst competitors overlaps.

Any claim that we have violated the intellectual property or other proprietary rights of third parties, whether such claim is with or without merit, and whether or not it results in litigation, is settled out of court or is determined in our favor, could be time-consuming and costly to address and resolve, and could divert the time and attention of management and technical personnel from our business. Our various liability insurance coverages, if any, may not adequately, or at all, cover potential claims of this type. Furthermore, an adverse outcome of a dispute may result in an injunction and could require us to pay substantial monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a party's intellectual property rights. Any settlement or adverse judgment resulting from such a claim could (i) require us to enter into a licensing agreement to continue using the technology, content or other intellectual property that is the subject of the claim; (ii) restrict or prohibit our use of such technology, content or other intellectual property; (iii) require us to expend significant resources to alter the design and operation of our systems and technology or the content of our courses; and/or (iv) require us to indemnify third parties. Royalty or licensing agreements, if required or desirable, may be unavailable on terms desirable to us, or at all, and may require significant royalty payments

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and other expenditures. We may also be required to develop alternative non-infringing technology, content or other intellectual property, which could require significant time and expense. There also can be no assurance that we would be able to develop or license suitable alternative technology, content or other intellectual property to permit us to continue offering the affected technology, content, products or services to our partners. If we cannot develop or license technology, content or other intellectual property for any allegedly infringing aspect of our business, we would be forced to limit our educational programs and/or other products and services and may be unable to compete effectively. Any of these events could have a material adverse effect on our business and financial condition.

***System disruptions to our computer networks, phone systems, digital platforms or infrastructure could have a material adverse effect on our business.***

We rely upon our own and third-party service providers' information technology ("IT") systems and infrastructure to operate our business. The performance and reliability of the computer networks, phone systems, digital platforms and infrastructure at our campus, and our online programs, is critical to our operations, reputation and ability to attract and retain students. As with any complex technology ecosystem, we experience intermittent outages of the IT systems used by our students and by our employees, including system-wide outages. We also may experience business interruptions and outages resulting from natural disasters, inclement weather, climate change, transit disruptions, political disruptions, or other events in one or more of the geographic areas in which our systems are located. If we fail to effectively assess and identify cybersecurity risks associated with the use of technology in our business operations, we may become increasingly vulnerable to such risks. Our Tier 1 and 2 critical systems are covered by validated disaster recovery service and protected by a formal disaster recovery plan. We also maintain a robust backup and recovery infrastructure to allow timely recovery from catastrophic failure for systems not covered by a formal disaster recovery plan. Our high priority applications (non-SaaS) are currently hosted in Amazon Web Services ("AWS") with the exception of our communications platform which is hosted in a virtual private cloud by Expedient. The communications platform is currently migrating to a Software as a Service ("SaaS") cloud platform, which we expect to complete by the end of calendar year 2025. AWS is a cloud infrastructure provider (rather than a data center). While extremely rare, a multi-region AWS outage could impact the availability of critical systems. An event such as this may require service restoration activities that could take up to several weeks to complete. In addition, high-profile incidents involving third-party service providers that have caused widespread disruptions to their customers' operations, such as the Microsoft Windows outage caused by a flawed CrowdStrike software update in July 2024, have occurred. We cannot guarantee that the systems of our third-party service providers have not been, or will not be, compromised or that errors by our third-party service providers will not cause similar disruptions or outages to our operations.

As part of our technology infrastructure and systems upgrade and our reduction of expenses, we have upgraded or are in the process of upgrading a substantial portion of our key IT systems, including migrating our learning management system, our student relationship platform, and our student financial aid and corporate website to cloud-hosted, SaaS providers. We have also recently migrated our entire technology footprint to a hybrid cloud and, in the process, shut down the last remaining University data center. As a result, the total server count reduced from over 11,000 to roughly 1,300. While this has reduced overall environmental cost and complexity, there are still key systems that must be upgraded from outdated software versions over the next twelve months. Additionally, the continued operation of key SaaS platforms is dependent upon each vendor's ability to meet contractual service level agreements for availability and performance. We cannot be sure that the IT systems and infrastructure on which we depend, including those of third parties, will continue to meet our current and future business needs or adequately safeguard our operations. Our failure to complete or a delay in the migration of our IT systems may result in our failure to reduce or a delay in reducing our technology expenses. Such a failure or delay may adversely affect our business operations and our financial performance.

Significant disruption in SaaS vendor platforms could make significant portions of our operations unavailable without suitable workarounds. Any disruption in our IT systems could significantly impact our

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operations and reputation, reduce student and prospective student confidence in our educational institution, adversely affect our compliance with applicable regulations and accrediting body standards, and have a material adverse effect on our business and financial condition. Although we vet the capabilities of current and future suppliers and maintain insurance for some types of these disruptions, there is no assurance that insurance proceeds would be adequate or available to compensate us for damages sustained due to these disruptions.

***Our collection, use, retention, and processing of personal information makes us a target for security incidents, increasing the risks of personal data breaches, which can impact our business and result in reporting, notice and regulatory obligations.***

Our collection, use, retention, and other processing of personal information—both in our capacity as a data controller as well as a data processor in our role as a service provider—makes us and the systems or vendors we rely upon a target for cyber-attacks, which could harm our business. We collect, use, retain, and otherwise process large amounts of personal and sensitive information regarding our applicants, students, faculty and employees, including social security numbers, tax return information, personal and family financial data, biometric information, health data and payment card information and we and our service providers rely on technology licensed from, or otherwise provided by, third parties to process and store this information. Much of this personal information is held and managed by third-party vendors, and as a result, we are vulnerable to disruptions from utility outages and susceptible to operational and information security risks resulting from system failures and cybersecurity incidents of our third-party vendors, and the technology and services they rely on to provide services to us. We also face risks of the acts and omissions of such third parties as they relate to data privacy and security. Any failure by such third parties to prevent or mitigate security incidents presents risk of operational disruptions and/or legal risk to us under applicable data protection laws and regulations, each of which could have a material adverse effect on our business and reputation.

In instances where personal information is held or managed by us, we use technical, administrative, and physical controls to help limit access and use of personal information. However, a threat actor may be able to circumvent those controls, which could result in a security incident or data breach. In addition, our or a third party's errors in the collection, use, retention, or other processing of personal information could result in a security incident or violation of applicable data protection laws or regulations. A security incident or data breach may require us to shut down relevant systems, terminate vendor relationships, undertake additional remediation measures that may interfere with our business operations and result in IT unavailability and downtime and may result in legal liability. In the event the security incident or data breach involves personal information that is held by us or our vendors, it could have additional material adverse effects on our operations. A security incident or data breach may also result in liability under state, federal and international data privacy laws and statutes, data breach and reporting laws, negative publicity, and legal actions by state attorneys general and private litigants, including class actions, any of which could have a material adverse effect on our reputation and business and financial condition.

Many statutory requirements, both in the United States and abroad, include obligations for companies to notify individuals of data breaches involving certain personal information, which could result from security incidents experienced by us or our third-party service providers. There are federal laws and separate laws in each of the 50 states and the District of Columbia and foreign jurisdictions that may require companies to provide notice to consumers whose personal information has been impacted as a result of a data breach or notice to governmental agencies. These laws are not consistent, and an analysis of the impacted data and individuals is required in order to determine such obligations. Moreover, state data breach notification laws may be amended from time to time, requiring attention to changing regulatory requirements as part of the analysis. Complying with these laws following a security incident may require costly forensics and investigations, in addition to their impact on our business operations.

Given that we rely on a number of third-party vendors for our IT and related infrastructures, the details of our vendor contracts largely determine whether a security incident caused by our vendor results in a breach of

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our contract and the remedies available to us in such instances. Any contractual protections we may have in place for our third-party service providers, contractors or consultants may not be sufficient to adequately protect us from any such liabilities and losses, and we may be unable to enforce any such contractual protections.

Where we are a data processor or service provider, we also may have contractual obligations in the event of a security incident or data breach and may be contractually required to notify customers or counterparties of such incident or breach and pay for or reimburse a third party for costs associated with such incident or breach, even if we are not legally required to do so. As a result, security incidents and data breaches present legal risks under applicable laws, as well as contractual risks under our existing and future contracts. These obligations are time sensitive, and contractual obligations may vary between contracts. Compliance with these contracts requires contract management, including our understanding of our various obligations under such contracts and the ability to undertake those obligations pursuant to the applicable terms.

***We are subject to rapidly changing laws and regulations relating to privacy and data security. Failure to comply with such laws and regulations could lead to government enforcement actions (including civil or criminal penalties), private litigation or adverse publicity and could have a material adverse effect on our business.***

Many U.S. states have now passed comprehensive consumer privacy laws resulting in a patchwork of privacy legislation that heightens the costs of compliance, the risks of noncompliance, and the potential for enforcement actions by individual state attorneys general against the University. Federal and state laws or regulations also impose data security requirements in connection with our processing of personal information. Moreover, the Department of Education has issued regulations governing the collection and disclosure of student data. Our collection, use, storage, disclosure, retention, and other processing of personal information subjects us to a variety of laws and regulations, in the United States. Our legal exposure under data protection laws may expand as a result of new data protection laws and regulations or as a result of our ongoing growth. Such applicability could impact our internal business operations and data practices, and could limit the way we collect, use, retain, and otherwise process personal information, which could impact our business, including how we market and provide our products and services. Our business may be subject to laws regulating the use of marketing activities by telephone, email, mobile devices and the internet, including the CAN-SPAM Act of 2003 and the Telephone Consumer Protection Act of 1991. Compliance with these and the evolving privacy and data security requirements, such as developing and maintaining a robust privacy program, is rigorous and time-intensive and may increase our cost of doing business. In addition, we have in the past, and may in the future, be subject to litigation under state and federal privacy and data security laws and statutes by federal or state authorities and private litigants, including class actions, any of which could have a material adverse effect on our business. See Note 12 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus.

We also make public statements about our collection, use, and disclosure of personal information through our privacy policy and in other public facing policies or statements. Although we endeavor to ensure that these public statements are complete, accurate and fully implemented, we may at times fail to do so or be alleged to have failed to do so. We may be subject to potential regulatory or other legal action if such policies or statements are found to be deceptive, unfair or misrepresentative of our actual practices. Any concerns about our data privacy and security practices (even if unfounded), or any failure, real or perceived, by us to comply with our posted privacy policies or with any other legal or regulatory requirements, standards or other privacy or consumer protection-related laws and regulations applicable to us, could harm our business.

***The types of data that we collect and process are generally higher risk and/or sensitive, which comes with higher regulatory scrutiny and makes us a bigger target for malicious cyber threats.***

The nature of our business requires us to collect and process financial data, social security numbers, and other types of sensitive or higher risk personal data. Such data is the focus of rapidly evolving data protection laws and regulations. This data is also subject to higher regulatory scrutiny. Data security incidents and/or breaches of such data can result in regulatory investigations and legal liability.

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In addition, we (or our third-party vendors on our behalf) may process biometric data, including in connection with our efforts to prevent fraud and abuse. The collection, use, retention, and other processing of biometric data is subject to a complex and evolving regulatory landscape, including various state biometric privacy laws. In addition, a number of state data protection laws treat biometric information as sensitive personal information, bringing biometric information into their purview. Failure to comply with these regulations, or any future laws governing the use of biometric data, could result in significant liabilities, including fines, penalties, and class-action litigation. Additionally, any security breach or misuse of biometric data could harm our reputation, erode customer trust, and lead to substantial financial and operational impacts.

Public concerns about data privacy, particularly related to biometric information, may also result in fewer applicants for our programs or increased pressure to modify our online processes, potentially increasing our costs and reducing our competitiveness. If we are unable to effectively manage these risks, our business, financial condition, and results of operations could be adversely affected.

***We face risks of cyber and other data security incidents, which can impact our business, result in harm to our operations, and require costly remediation measures.***

We face an ever-increasing number of cybersecurity threats from a broad range of threat actors. These threats can result in security incidents, including physical break-ins, hacking, and data breaches, each of which may be caused by intentional or unintentional actions by our employees, contractors, consultants, students, or other third parties, including cyber-attacks by malicious threat actors. Security incidents may take the form of unauthorized activity and access, phishing or spoofing, malicious penetration, system viruses, malicious code, malware, ransomware, denial of service attacks and other organized cyber-attacks that seek to exploit vulnerabilities, affect service reliability and threaten the confidentiality, integrity, and availability of information. We have in the past, and may in the future, be subject to such cyber-security incidents. Incidents may occur as a single instance, or a threat actor can act on multiple occasions over an extended period of time without detection. The motivations of threat actors may vary, but security incidents that compromise our IT systems, including the information contained in such systems, can cause interruptions, unavailability, inaccessibility, delays or operational malfunctions, which in turn could have an adverse effect on our revenue, profitability, reputation and liquidity. Security incidents may also require costly remediation measures and result in regulatory investigations and legal liability, whether via regulatory actions or lawsuits.

The risk of a security incident, particularly through cyber-attacks or intrusions, has generally increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the world have increased. Our size and the amount and sensitivity of personal data that we collect or otherwise process makes us a prominent target for cyber-attacks within the education industry.

In addition, the increased use of mobile devices by our employees and students, including personal mobile devices which use we cannot always control, increases the risk of IT threats and vulnerabilities, such as those involving unsecure networks, as well as unintentional disclosure of personal information, such as through the theft of a mobile device, which can lead to a security incident and/or data breach.

A security incident may impact confidential, proprietary, or sensitive business information, or otherwise rise to the level of a data breach, which can risk business value or otherwise carry burdensome, time-sensitive, and costly obligations, including notification, reporting, and regulatory obligations, particularly if the data involved is personal data regulated by one or more laws or regulations. An incident or data breach could result in the theft, access, or destruction of personal information, sensitive information, intellectual property, data, or other misappropriation of assets, or otherwise compromise our confidential or proprietary information. Because techniques used by threat actors change frequently and generally are not recognized until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.

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We have devoted, and will continue to devote, resources to the security of our IT systems as well as physical security measures to reduce the risk of a security incident or data breach; however, our IT systems may still be vulnerable as there can be no assurance that these measures and efforts will prevent future incidents. In addition, our ability to control the internal security measures implemented by our vendors is necessarily limited by our inability to directly control those measures. We maintain a vendor management process to review the security measures undertaken by our vendors to help try and manage such risk. Nonetheless, we cannot directly control, or always have reliable insight into, our vendors' security measures.

We maintain cybersecurity insurance for these types of events to help protect against the potential monetary and financial adverse impacts of such events, but there is no assurance that insurance proceeds will be adequate or available to compensate or reimburse us for damages sustained due to these events.

***Our use of artificial intelligence may subject us to increased compliance obligations and legal risk.***

We use and are working to further incorporate artificial intelligence ("AI") technologies into our operations to increase efficiencies. We expect our use of AI to help grow our business and benefit our students, but it is not certain that we will realize our desired or anticipated benefits. The presence of AI increases our legal risk due to the increasing scope of AI regulation in various jurisdictions as AI regulation is a top focus of regulators in the US and abroad. Compliance with these AI regulations increases our cost of compliance and may result in legal exposure in the event of noncompliance. Additionally, our development, training and use of AI may require additional investments and/or increase the cost of our offerings, which could impact our financial condition. Furthermore, the use of AI may result in incidents that compromise the confidentiality of data (including personal data). Any such incidents related to our use of AI could harm our business, financial condition and reputation. AI also raises ethical issues and, if our use of AI becomes controversial, we may be subjected to brand or reputational harm.

The complexity of many AI models makes it challenging to understand why they are generating particular outputs. This limited transparency increases the challenges associated with assessing the proper operation of AI models, understanding and monitoring the capabilities of AI models, reducing erroneous output, eliminating bias and complying with regulations that require documentation or explanation of the basis on which decisions are made.

In addition, as AI becomes increasingly prevalent in our operations, we will have increased risk of disputes over the ownership or use of AI-generated content, as well as the risk of inadvertently infringing on third-party intellectual property rights. The intellectual property landscape for AI is evolving, and new laws, regulations, or interpretations may create further uncertainty or increase the likelihood of such claims. If such claims arise, they could result in costly litigation, licensing fees, or limitations on our ability to use certain AI technologies, any of which could adversely affect our business, financial condition, and results of operations. Furthermore, if the content, analyses, or recommendations that AI applications assist in producing are or are alleged to be deficient, inaccurate, or biased, or infringe third-party intellectual property rights, we may be subject to private lawsuits, regulatory scrutiny, or reputational harm, and our business and financial condition may be adversely affected.

***We rely on third-party vendors whose service may be of lower quality than ours, whose responsiveness may be less timely than ours, and whose compliance practices may increase our operational and compliance risk.***

We rely on third-party vendors to provide certain services to our students primarily related to IT services, our learning management system, and financial aid processing, and expect to rely more heavily on such vendors, particularly through cloud computing services, in the future. In particular, we contract with certain third-party vendors for student software systems and services related to the administration of portions of our Title IV and financing programs. Failure of such vendors to comply with applicable regulations could have a material adverse effect on our institution, including fines and the loss of eligibility to participate in Title IV programs, which could have a material adverse effect on our enrollment, revenue, and results of operations and cash flows and result in

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the imposition of significant restrictions on us and our ability to operate. If any such third-party vendors discontinues providing its services to us, we may not be able to replace such third-party vendor in a timely, cost-efficient, or effective manner, or at all, and we could lose our ability to comply with collection, lending, and Title IV requirements, which could have a material adverse effect on our enrollment, revenue, and results of operations, and cash flows and result in the imposition of significant restrictions on us and our ability to operate.

In addition, while we monitor and assess vendor services, it is possible that the quality of the services we receive and the timeliness of vendor responses may not meet our students' expectations or the level of service that we would otherwise provide. Using third-party vendors creates compliance risk that vendors may not adequately protect personal information, or may not comply with applicable federal or state regulations. Further, transitioning from vendors or from in-house processes to new providers or from third-party vendors to in-house processes, involves inherent risks, including the risk of significant disruption of integral processes or the decrease in quality of service as compared to those of the prior provider. In the event third-party vendors fail to provide services, lack adequate business continuity planning, or fail to provide necessary implementation or transition services, our financial condition and results of operations could be adversely affected.

***We may incur liability for the unauthorized duplication, distribution or other use of materials posted online.***

In some instances, our employees, including faculty members, or our students may stream, file share, download or otherwise make unauthorized use of third-party content using our computer networks and/or post various articles or other third-party content online in class discussion boards or in other venues including social networks. While we have policies in place to prevent such unauthorized uses, we cannot guarantee that our employees and students will comply with such policies. The laws governing our obligations with regard to third-party materials are often fact-specific and must be evaluated on a case-by-case basis, which makes it challenging to adopt, implement and/or apply a "one-size fits all" approach with our policies and processes covering these practices. As a result, we could incur liability to third parties for the unauthorized duplication, distribution or other use of these materials. Any such claims could subject us to costly litigation and impose a significant strain on our financial resources and management personnel regardless of whether the claims have merit. Liability insurance policies may not cover potential claims of this type adequately or at all, and we may be required to alter or cease our uses of such material, which may include changing or removing content from our courses, or paying monetary damages, which could have a material adverse effect on our business and financial condition.

***We may have unanticipated tax liabilities that could adversely impact our results of operations and financial condition.***

We are subject to multiple types of taxes in the United States, and the associated laws are complex and subject to different interpretations. The determination of our provision for income taxes and other tax accruals involves various judgments, and therefore the ultimate tax determination is subject to uncertainty. Our future effective tax rates could be subject to volatility or be adversely affected by a number of factors, including changes in the valuation of our deferred taxes, changes in tax laws or regulations, and revised interpretations of existing laws or accounting principles. Such changes may adversely affect our future reported financial results, may impact the way in which we conduct our business, or may increase the risk of audit by the Internal Revenue Service ("IRS") or other tax authorities.

Our U.S. federal income tax return for fiscal year 2023 is currently under review by the IRS and fiscal years 2022 and 2024 are currently open for review. Additionally, tax years as early as fiscal year 2019 remain subject to examination by state or local tax authorities.

Although we believe our tax accruals are reasonable, the final determination of tax returns under review or returns that may be reviewed in the future and any related litigation could result in tax liabilities that materially differ from our historical income tax provisions and accruals.

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**Risks Related to this Offering and Ownership of Our Common Stock** 

***Our stock price may fluctuate significantly and purchasers of our common stock could incur substantial losses.***

After this offering, the market price for our common stock may be volatile. The market price of our common stock could vary significantly as a result of a number of factors, some of which are beyond our control. In the event of a drop in the market price of our common stock, you could lose a substantial part or all of your investment in our common stock, as you may not be able to resell your shares at or above the initial public offering price or at all. The following factors could affect our stock price:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our operating and financial performance and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• quarterly variations in the rate of growth (if any) of our financial or operational indicators, such as
earnings per share, net income, net income margin, net revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Average Total Degreed Enrollment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public reaction to our press releases, our other public announcements and our filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of operations that vary from those of our competitors or other strategic actions by our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in operating performance and the stock market valuations of other companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements related to litigation and governmental inquiries or investigations, and reputational harm
related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the political, legislative, regulatory, and public policy outlook or associated enactments that are
adverse to the University or to the eligibility of proprietary schools to participate in federal student aid programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to meet revenue or earnings estimates made by research analysts or other investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by
equity research analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation in the press or investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of our common stock by us or our stockholders, or the perception that such sales may occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles, policies, guidance, interpretations, or standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and market conditions or trends in our industry or the economy as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• domestic and international economic, legal and regulatory factors unrelated to our performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material weakness in our internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the realization of any risks described under this "*Risk Factors*" section, or other risks
that may materialize in the future.

Furthermore, the stock markets in general have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock, regardless of our actual operating performance. In addition, price volatility may be greater if the public float and trading volume of our common stock are low. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company's securities. Such litigation, if instituted against us, could result in very substantial costs, divert our management's attention and resources, and harm our business, financial condition and results of operations.

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***We are an "emerging growth company" and will be able take advantage of reduced disclosure requirements applicable to "emerging growth companies," which could make our common stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and, for as long as we continue to be an "emerging growth company," we intend to take advantage of certain exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies." These exemptions include, but are not limited to: not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, not being required to communicate critical audit matters in the auditor's report, permission to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our periodic reports and registration statements, including in this prospectus, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding stockholder advisory vote on executive compensation (e.g., "say-on-pay" and "say-on-frequency") and any golden parachute payments not previously approved. In addition, under the JOBS Act, "emerging growth companies" can delay adopting new or revised accounting standards until such time as those standards apply to private companies. While we have elected to avail ourselves of this exemption, we are permitted and may elect to early adopt certain new or revised accounting standards for which the respective standard allows for early adoption. For as long as we take advantage of the reduced reporting obligations, the information that we provide stockholders may be different from information provided by other similarly situated public companies.

We will be an "emerging growth company" until the earliest of (i) the last day of the first fiscal year in which our annual gross revenue equals or exceeds $1.235 billion; (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, with the market value of our common stock that is held by non-affiliates equal to at least $700 million as of the last business day of our most recently completed second fiscal quarter; (iii) the last day of our fiscal year following the fifth anniversary of the date of this offering; and (iv) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period. We cannot predict if investors will find our common stock less attractive if we choose to rely on these exemptions. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock, our stock price may decline or become more volatile and it may be difficult for us to raise additional capital if and when we need it.

***We will incur significant costs and devote substantial management time as a result of operating as a public company, particularly after we are no longer an "emerging growth company."***

As a public company, we will incur significant legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting requirements. For example, we will be required to comply with the requirements of Section 404(a) of the Sarbanes-Oxley Act and the Dodd-Frank Act, heightened auditing standards, and the rules and regulations implemented by the SEC and the NYSE, our stock exchange, including the establishment and maintenance of effective disclosure and financial controls and changes in corporate governance practices. The rules governing management's assessment of our internal control over financial reporting are complex and require significant documentation, testing and possible remediation. We expect that compliance with these requirements will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. For example, the increased legal and regulatory obligations as a public company could make it more difficult or costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage, and it could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our board committees or as our executive officers. In addition, we expect that our management and other personnel will need to divert their attention from operational and other business matters to devote substantial time to these public company requirements. In particular, we expect to incur significant expenses and devote substantial

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management effort toward ensuring compliance with the requirements of the Sarbanes-Oxley Act. In that regard, we may need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge.

After we are no longer an "emerging growth company," and can no longer take advantage of the reporting exemptions available to "emerging growth companies" as discussed above, we expect to incur additional management time and cost to comply with the more stringent reporting requirements applicable to companies that are deemed accelerated filers or large accelerated filers, including complying with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act.

We cannot predict or estimate the amount of additional costs we may incur as a result of becoming a public company or the timing and materiality of such costs.

***If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and financial condition and the trading price of our common stock.***

As a privately-held company, we were not required to evaluate our internal control over financial reporting in a manner that meets the standards of publicly traded companies required by Section 404(a) of the Sarbanes-Oxley Act. As a public company, we will be subject to significant requirements for enhanced financial reporting and internal controls. Effective internal control over financial reporting is necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, is designed to prevent fraud. The process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environment, and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could cause us to fail to meet our reporting obligations on a timely basis, result in material misstatements in our consolidated financial statements and harm our results of operations. In addition, we will be required, pursuant to 404(a) of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting in the second annual report following the completion of this offering. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. The rules governing the standards that must be met for our management to assess our internal control over financial reporting are complex and require significant documentation, testing, and possible remediation. Testing and maintaining internal controls may divert our management's attention from other matters that are important to our business.

Our independent registered public accounting firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer an "emerging growth company," as defined in the JOBS Act, which at the latest would be the end of the fiscal year following the fifth anniversary of this offering. At such time, our internal control over financial reporting may be insufficiently documented, designed or operating, which may cause our independent registered public accounting firm to issue a report that is adverse. Undetected material weaknesses in our internal control over financial reporting could lead to financial statement restatements and require us to incur the expense of remediation, which could have a negative effect on the trading price of our stock.

Furthermore, if we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our consolidated financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the NYSE, regulatory investigations, civil or criminal sanctions and litigation, any of which would have a material adverse effect on our business, results of operations and financial condition.

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***We continue to be controlled by the Apollo Stockholder, and Apollo's interests may conflict with our interests and the interests of other stockholders.***

Following this offering, the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common equity (or approximately % if the underwriters exercise their option to purchase additional shares in full). So long as we remain a "controlled company," the Apollo Stockholder will have the ability to control matters requiring approval by our stockholders, including the election of directors, amendments to our certificate of incorporation and major corporate transactions such as mergers, tender offers, and the sale of all or substantially all of our assets and issuance of additional debt or equity. The interests of Apollo and its affiliates, including the Apollo Stockholder, could conflict with or differ from our interests or the interests of our other stockholders. For example, the concentration of ownership held by the Apollo Stockholder could delay, defer, or prevent a change in control of our company or impede a merger, takeover, or other business combination that may otherwise be favorable for us. Furthermore, the concentration of ownership could deprive you of an opportunity to receive a premium for your shares of common stock as part of a sale of our company and ultimately might affect the market price of our common stock. Apollo and its affiliates, including the Apollo Stockholder, may also have an interest in pursuing acquisitions, divestitures, and other transactions that, in their judgment, could enhance their investment, even though such transactions might involve risks to you. Additionally, Apollo and its affiliates are in the business of making investments in companies and may, from time to time, acquire and hold interests in or provide advice to businesses that compete directly or indirectly with us, or are suppliers or customers of ours. Apollo and its affiliates may also pursue acquisition opportunities that may be complementary to our business and, as a result, those acquisition opportunities may not be available to us. Any such investment may increase the potential for the conflicts of interest discussed in this risk factor. So long as the Apollo Stockholder continues to directly or indirectly beneficially own a significant amount of our equity, even if such amount is less than 50%, the Apollo Stockholder will continue to be able to substantially influence or effectively control our decisions, including our ability to enter into corporate transactions.

The Apollo Stockholder also has a right to nominate a number of directors comprising a percentage of our board of directors in accordance with its beneficial ownership of the voting power of our outstanding common stock (rounded up to the nearest whole number), which currently represents at least a majority of our board of directors. These directors have fiduciary duties to us and, in addition, may have similar duties to the Apollo Stockholder and its affiliates. As a result, these directors may face real or apparent conflicts of interest with respect to matters affecting both us and the Apollo Stockholder, whose interests may be adverse to ours in some circumstances. See "*Management—Board Composition*" and "*Certain relationships and related party transactions—Stockholders Agreement*" for more information.

***We are a "controlled company" within the meaning of the NYSE rules and, as a result, qualify for and intend to rely on exemptions from certain corporate governance requirements. You will not have the same protections afforded to stockholders of companies that are subject to such requirements.***

Following this offering, the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full) and, as a result, we will be a controlled company within the meaning of the NYSE corporate governance standards. The Apollo Stockholder will have effective control over the outcome of votes on all matters requiring approval by our stockholders, including the election of directors, the amendment of our governing documents and the entry into significant corporate transactions. Under the NYSE rules, a company of which more than 50% of the voting power is held by another person or group of persons acting together is a controlled company and may elect not to comply with certain stock exchange corporate governance requirements, including the requirements that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a majority of the board of directors consist of "independent directors" as defined under the rules
of the NYSE;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nominating and corporate governance committee be composed entirely of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the compensation committee be composed entirely of independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there be an annual performance evaluation of the nominating and corporate governance committee and
compensation committee.

We intend to utilize some or all of these exemptions as long as we remain a controlled company. As a result, our board of directors may not have a majority of independent directors, and our nominating and corporate governance and compensation functions may not be decided solely by independent directors. Accordingly, you may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the NYSE.

***Our organizational documents may impede or discourage a takeover, which could deprive our investors of the opportunity to receive a premium on their shares.***

Provisions of our certificate of incorporation and bylaws may make it more difficult for, or prevent a third party from, acquiring control of us without the approval of our board of directors. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that our board of directors will be divided into three classes, with each class of directors serving
staggered three-year terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibiting cumulative voting in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing for the removal of directors only for cause and only upon the affirmative vote of the holders of at
least 66 2/3% in voting power of all the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class, if less than 50.1% of the voting power of our outstanding common stock is beneficially owned by
Apollo and its affiliates, including the Apollo Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• empowering only the board of directors to fill any vacancy on our board of directors (other than in respect of
an Apollo Board Nominee (as defined below) or a Vistria Board Nominee (as defined below)), whether such vacancy occurs as a result of an increase in the number of directors or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorizing the issuance of "blank check" preferred stock without any need for action by
stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibiting stockholders from acting by written consent if less than 50.1% of the voting power of our
outstanding common stock is beneficially owned by Apollo and its affiliates, including the Apollo Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent permitted by law, prohibiting stockholders from calling a special meeting of stockholders if
less than 50.1% of the voting power of our outstanding common stock is beneficially owned by Apollo and its affiliates, including the Apollo Stockholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing advance notice requirements for nominations for election to our board of directors (other than in
respect of an Apollo Board Nominee or a Vistria Board Nominee) or for proposing matters that can be acted on by stockholders at stockholder meetings.

Additionally, our certificate of incorporation will provide that we are not governed by Section 203 of the Delaware General Corporation Law (the "DGCL"), which, in the absence of such provisions, would have imposed additional requirements regarding mergers and other business combinations. However, our certificate of incorporation will include a provision that restricts us from engaging in any business combination with an interested stockholder for three years following the date that person becomes an interested stockholder, but such restrictions shall not apply to any business combination between Apollo and any affiliate thereof, Vistria and any affiliate thereof or their direct and indirect transferees, on the one hand, and us, on the other, or certain other situations as described elsewhere in this prospectus "*Description of Capital Stock—Certain Corporate Anti-takeover Provisions—Delaware Takeover Statute.*"

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Furthermore, any issuance by us of preferred stock could delay or prevent a change in control of us. Our board of directors will have the authority to cause us to issue, without any further vote or action by the stockholders, shares of preferred stock, par value $0.01 per share, in one or more series, to designate the number of shares constituting any series, and to fix the rights, preferences, privileges, and restrictions thereof, including dividend rights, voting rights, rights and terms of redemption, redemption price or prices, and liquidation preferences of such series. The issuance of shares of our preferred stock may have the effect of delaying, deferring, or preventing a change in control without further action by the stockholders, even where stockholders are offered a premium for their shares.

In addition, as long as the Apollo Stockholder beneficially owns a majority of the voting power of our outstanding common stock, the Apollo Stockholder will be able to control all matters requiring stockholder approval, including the election of directors, amendment of our certificate of incorporation and certain corporate transactions. Our Stockholders Agreement will also require the approval of Apollo and its affiliates, including the Apollo Stockholder, for certain important matters, including certain acquisitions and dispositions outside the ordinary course of business, certain issuances of equity securities and incurrence of debt, and mergers, consolidations and transfers of all or substantially all of our assets, until the first time that Apollo and its affiliates, including the Apollo Stockholder, cease to beneficially own at least 33% of our common stock. See "*Description of Capital Stock—Certain Corporate Anti-takeover Provisions—Certain Matters that Require Consent of Our Stockholders.*"

Together, the provisions in our certificate of incorporation, bylaws and the Stockholders Agreement and statutory provisions could make the removal of management more difficult and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our common stock. Furthermore, the existence of the foregoing provisions, as well as the significant common stock beneficially owned by the Apollo Stockholder and its right to nominate a specified number of directors in certain circumstances, could limit the price that investors might be willing to pay in the future for shares of our common stock. They could also deter potential acquirers of us, thereby reducing the likelihood that you could receive a premium for your common stock in an acquisition. For a further discussion of these and other such anti-takeover provisions, see "*Description of Capital Stock—Certain Corporate Anti-takeover Provisions.*"

***Our certificate of incorporation will provide that the Court of Chancery of the State of Delaware and the federal district courts of the United States will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.***

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We recognize that the forum selection clause in our certificate of incorporation may impose additional litigation costs on stockholders in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware. Additionally, the forum selection clause in our certificate of incorporation may limit our stockholders' ability to bring a claim in a forum that they find favorable for disputes with us or our directors, officers or employees, which may discourage such lawsuits against us and our directors, officers and employees even though an action, if successful, might benefit our stockholders. The Court of Chancery of the State of Delaware and the federal district courts of the United States may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.

Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and, to the fullest extent permitted by law, to have consented to the provisions of our certificate of incorporation described above. The choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits against us and our directors, officers and other employees. However, the enforceability of similar exclusive forum provisions (including exclusive federal forum provisions for actions, suits or proceedings asserting a cause of action arising under the Securities Act) in other companies' organizational documents has been challenged in legal proceedings, and there is uncertainty as to whether courts would enforce the exclusive forum provisions in our certificate of incorporation. Additionally, our stockholders cannot waive compliance with the federal securities laws and the rules and regulations thereunder. If a court were to find the choice of forum provision contained in our certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially and adversely affect our business, financial condition and results of operations.

***Our certificate of incorporation will contain a provision renouncing our interest and expectancy in certain corporate opportunities.***

Under our certificate of incorporation, none of Apollo, Vistria, their affiliated funds, the portfolio companies owned by such funds, any other affiliates of Apollo or Vistria or any of their respective officers, directors, principals, partners, members, managers, employees, agents or other representatives will have any duty to refrain from engaging, directly or indirectly, in the same business activities, similar business activities, or lines of business in which we operate. Under our certificate of incorporation, Apollo, Vistria, their affiliated funds, the portfolio companies owned by such funds, any other affiliates of Apollo or Vistria or any of their respective officers, directors, principals, partners, members, managers, employees, agents or other representatives will have the right to invest in, or provide services to, any person that is engaged in the same or similar business activities as us or our affiliates or directly or indirectly competes with us or any of our affiliates. In addition, our certificate of incorporation provides that, to the fullest extent permitted by law, no officer or director of ours who is also an officer, director, principal, partner, member, manager, employee, agent, or other representative of Apollo, Vistria or their respective affiliates will be liable to us or our stockholders for breach of any fiduciary duty by reason of the fact that any such individual directs a corporate opportunity to Apollo, Vistria or their respective affiliates and representatives, instead of us, or does not communicate information regarding a corporate opportunity to us that such individual has directed to Apollo, Vistria or their respective affiliates and representatives. For instance, a director of our company who also serves as a director, officer or employee of Apollo, Vistria or any of their portfolio companies, funds or other affiliates may pursue certain acquisitions or other opportunities that may be complementary to our business and, as a result, such acquisition or other opportunities may not be available to us. Upon consummation of this offering, our board of directors will consist of ten members, three of whom will be Apollo Board Nominees and two of whom will be Vistria Board Nominees. These potential conflicts of interest could have a material and adverse effect on our business, financial condition, results of operations or prospects if attractive corporate opportunities are allocated by any of Apollo or Vistria to itself or its affiliated funds, the portfolio companies owned by such funds or any of their affiliates instead of to us. A description of our obligations related to corporate opportunities under our certificate of incorporation are more fully described in "*Description of Capital Stock—Corporate Opportunity*."

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***We are a holding company and rely on dividends, distributions, and other payments, advances, and transfers of funds from our subsidiaries to meet our obligations.***

We are a holding company that does not conduct any business operations of our own. As a result, we are largely dependent upon cash dividends and distributions and other transfers from our subsidiaries, including the University, to meet our obligations. Agreements governing any future indebtedness of our subsidiaries may impose restrictions on our subsidiaries' ability to pay dividends or other distributions to us. *See* "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources*." Each of our subsidiaries is a distinct legal entity, and under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from them, and we may be limited in our ability to cause any future joint ventures to distribute their earnings to us. The deterioration of the earnings from, or other available assets of, our subsidiaries for any reason could also limit or impair their ability to pay dividends or other distributions to us. Delaware law may also impose requirements that may restrict our ability to pay dividends to holders of our common stock, including our anticipated quarterly dividend beginning in the first full quarter following the completion of this offering. See "*—We cannot guarantee the payment of dividends on our common stock, or the timing or amount of any such dividends, and in the event we determine not to pay any cash dividends in the future, stockholders may not receive any return on investment unless they sell their common stock for a price greater than that which they paid for it.*"

***Investors in this offering will experience immediate and substantial dilution.***

Based on our as adjusted net tangible book value per share as of May 31, 2025, after giving effect to the Reorganization Transactions and an assumed initial public offering price of $ per share, which is the midpoint of the range set forth on the cover page of this prospectus, we expect that purchasers of our common stock in this offering will experience an immediate dilution of $ per share, representing the difference between our as adjusted net tangible book value per share and the initial public offering price. This dilution is due in large part to earlier investors having paid substantially less than the initial public offering price when they purchased their shares. In addition, to the extent that any outstanding options are exercised, or new awards are granted under our equity compensation plans, there will be further dilution to investors participating in this offering. See "*Dilution*."

***You may be diluted by the future issuance of additional common stock or convertible securities in connection with our incentive plans, acquisitions or otherwise, which could adversely affect our stock price.***

After the completion of this offering, we will have shares of common stock authorized but unissued. Our certificate of incorporation will authorize us to issue these shares of common stock, equity-linked securities and options, rights, warrants and appreciation rights relating to common stock for the consideration and on the terms and conditions established by our board of directors in its sole discretion, whether in connection with acquisitions or otherwise. Following the Reorganization Transactions and this offering, we may also be required to issue shares of common stock upon the vesting of the University's outstanding RSUs or in exchange for the University's common stock upon the exercise of the University's outstanding stock options. See "*Executive Compensation—. Management Equity Plan*." We have also reserved approximately shares for future grant under our Omnibus Incentive Plan and approximately shares for future grant under the ESPP. See *"Executive Compensation—2025 Omnibus Incentive Plan"* and *"Executive Compensation—Employee Stock Purchase Plan."* Any common stock that we issue, including under our Omnibus Incentive Plan, the ESPP or other equity incentive plans that we may adopt in the future, as well as under outstanding options or equity awards, would dilute the percentage ownership held by the investors who purchase common stock in this offering and reduce your influence over matters on which our stockholders vote.

From time to time in the future, we may also issue additional shares of our common stock or securities convertible into common stock pursuant to a variety of transactions, including acquisitions. Our issuance of additional shares of our common stock or securities convertible into our common stock would dilute your

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ownership of us and the sale of a significant amount of such shares in the public market could adversely affect prevailing market prices of our common stock.

***Future sales of our common stock in the public market, or the perception in the public market that such sales may occur, could reduce our stock price.***

At the closing of this offering, we will have shares of common stock outstanding and shares of common stock potentially issuable in respect of the University's outstanding stock options and RSUs. Of the outstanding shares, the shares sold in this offering (or shares if the underwriters exercise their option to purchase additional shares in full) will be freely tradable without restriction or further registration under the Securities Act, except that any shares held by our affiliates, as that term is defined under Rule 144 of the Securities Act ("Rule 144"), including our directors, executive officers, and other affiliates, may be sold only in compliance with the limitations described in "*Shares eligible for future sale*."

The number of outstanding shares of common stock after this offering includes shares beneficially owned by the Apollo Stockholder, the Vistria Stockholder and certain of our directors and employees, which are "restricted securities," as defined under Rule 144, and eligible for sale in the public market only if they are registered under the Securities Act or are sold pursuant to an exemption from registration such as Rule 144. In addition, we, the selling stockholders, each of our officers and directors and all of our other existing stockholders have agreed that, for a period of 180 days after the date of this prospectus, we and they will not, without the prior written consent of and on behalf of the underwriters, dispose of any shares of common stock or any securities convertible into or exchangeable for our common stock, subject to certain exceptions. See "*Underwriting (Conflicts of Interest)*." Following the expiration of the applicable lock-up period, all of the issued and outstanding shares of our common stock will be eligible for future sale, subject to the applicable volume, manner of sale, holding periods, and other limitations of Rule 144. and may, in their sole discretion, release all or any portion of the shares subject to lock-up agreements at any time and for any reason. In addition, the Apollo Stockholder, the Vistria Stockholder and certain of our existing stockholders have certain rights to require us to register the sale of common stock held by them including in connection with underwritten offerings. Additionally, we also intend to file a registration statement in respect of all shares of common stock that we may issue under the Omnibus Incentive Plan, the ESPP and the University Equity Plan. Once we register these shares, they can be freely sold in the public market upon issuance. Sales of significant amounts of stock in the public market upon the expiration or early release of lock-up agreements, the exercise by existing stockholders of their registration rights or the perception that such sales may occur could adversely affect prevailing market prices of our common stock or make it more difficult for you to sell your shares of common stock at a time and price that you deem appropriate. See "*Shares Eligible for Future Sale*" for a discussion of the shares of common stock that may be sold into the public market in the future.

***No public market currently exists for our common stock and there can be no assurances that a viable public market for our common stock will develop or be sustained.***

Immediately prior to this offering, our common stock was not traded on any market. An active, liquid and orderly trading market for our common stock may not develop or be maintained after this offering. Active, liquid and orderly trading markets usually result in less price volatility and more efficiency in carrying out investors' purchase and sale orders. We cannot predict the extent to which investor interest in our common stock will lead to the development of an active trading market on the NYSE or otherwise or how liquid that market might become. The initial public offering price for the common stock will be determined by negotiations between the selling stockholders and the representatives of the underwriters and may not be indicative of prices that will prevail in the open market following this offering. See "*Underwriting (Conflicts of Interest)*." If an active public market for our common stock does not develop, or is not sustained, or if the market price of our common stock declines below the initial offering price, it may be difficult for you to sell your shares at a price that is attractive to you or at all.

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***The initial public offering price of our common stock may not be indicative of the market price of our common stock after this offering.***

The initial public offering price will be determined by negotiations between the selling stockholders and representatives of the underwriters, based on numerous factors which we discuss in "*Underwriting (Conflicts of Interest)*," and may not be indicative of the market price of our common stock after this offering. If you purchase our common stock, you may not be able to resell those shares at or above the initial public offering price.

***We cannot guarantee the payment of dividends on our common stock, or the timing or amount of any such dividends, and in the event we determine not to pay any cash dividends on our common stock in the future, stockholders may not receive any return on investment unless they sell their common stock for a price greater than that which they paid for it.***

Beginning in the first full fiscal quarter following the completion of this offering, we anticipate paying a quarterly cash dividend at a rate initially equal to $ per share per annum, or $ per annum in the aggregate, on our common stock to holders of our common stock, and resulting in an annual yield of % based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. Although we currently intend to pay a quarterly cash dividend to holders of our common stock, we have no obligation to do so, and our dividend policy may change at any time without notice to our shareholders. Any declaration and payment of cash dividends in the future, if any, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, cash flows, capital requirements, levels of indebtedness, receipt of cash dividends from our operating subsidiaries, restrictions imposed by applicable law, our overall financial condition, restrictions in debt agreements that we or our subsidiaries may enter into in the future and any other factors deemed relevant by our board of directors. If we pay such dividends, we may in the future reduce or discontinue entirely the payment of such dividends at any time. We are a holding company and our operations are conducted through our operating subsidiaries. In the event that we do pay a dividend, we intend to cause our operating subsidiaries to make distributions to us in an amount sufficient to cover such dividend. Further, to the extent that the other risks described in this section materialize, they could adversely affect our ability to pay dividends in the future. We cannot assure you that we will pay our anticipated dividend in the same amount or frequency, or at all, in the future. If we decide not to pay future dividends, then stockholders may not receive any return on an investment in our common stock unless they sell our common stock for a price greater than the purchase price, which may not occur. See "*Dividend Policy*."

***If securities or industry analysts do not publish research or reports about our business or publish negative reports, our stock price could decline.***

The trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. We may not obtain research coverage of our common stock by securities and industry analysts. If no analysts commence coverage of our common stock, or if one or more of these analysts ceases coverage of our company or fails to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Moreover, if one or more of the analysts who cover our company downgrades our common stock, publishes unfavorable research about our business or if our operating results do not meet their expectations, our stock price could decline.

***We may issue preferred securities, the terms of which could adversely affect the voting power or value of our common stock.***

Our certificate of incorporation will authorize us to issue, without the approval of our stockholders, one or more classes or series of preferred securities having such rights, powers, preferences, participating, optional or other special rights, including preferences over our common stock respecting dividends and distributions, and any qualifications, limitations or restrictions thereof, as our board of directors may determine. The terms of one

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or more classes or series of preferred securities could adversely impact the voting power or value of our common stock. For example, we might grant holders of preferred securities the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred securities could affect the residual value of the common stock.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this prospectus, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. The forward-looking statements are contained principally in the sections entitled *"Prospectus Summary," "Risk Factors," "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations"* and *"Business"* and include, among other things, statements relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our strategy, outlook and growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our operational and financial targets and dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic trends and trends in the industry and markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive environment in which we operate.

These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Important factors that could cause our results to vary from expectations include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with the extensive regulatory requirements for our business, and the impact of a failure
to comply with applicable regulations or regulatory requirements, standards or policies, which could subject us to significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans,
grants and military program benefits for our students, and otherwise have a material adverse impact on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shifts in higher education policy at the federal and state levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our institutional accreditation and our eligibility to participate in Title IV
programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enroll and retain students;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to adapt to changing market needs or new technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain existing, and develop additional, B2B relationships with employers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract or retain a qualified senior management team and qualified faculty members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of compliance reviews, claims, or litigation that government agencies, regulatory agencies, and
third parties may conduct, bring or initiate against us based on alleged violations of the extensive regulatory requirements applicable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to establish, maintain, protect and enforce our intellectual property and proprietary rights and
prevent third parties from making unauthorized use of such rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liability associated with any failure to comply with data privacy and data security laws and the unauthorized
access, duplication, distribution or other use of confidential or personal information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional tax labilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pay dividends on our common stock or the timing or amount of any such dividends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risk factors included under "*Risk Factors*" in this prospectus.

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These forward-looking statements reflect our views with respect to future events as of the date of this prospectus and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this prospectus and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this prospectus. We anticipate that subsequent events and developments will cause our views to change. You should read this prospectus and the documents filed as exhibits to the registration statement of which this prospectus is a part completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements.

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**USE OF PROCEEDS** 

The selling stockholders are selling all of the shares of our common stock being sold in this offering, including any shares that may be sold in connection with the exercise of the underwriters' option to purchase additional shares. See "*Principal and Selling Stockholders*." Accordingly, we will not receive any proceeds from the sale of shares of our common stock in this offering. The selling stockholders will bear the underwriting discounts and commissions attributable to their sale of our common stock in this offering, and we will bear the remaining costs, fees and expenses in connection with this offering, which are estimated to be approximately $ million.

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**DIVIDEND POLICY** 

Beginning in the first full fiscal quarter following the completion of this offering, we anticipate paying a quarterly cash dividend at a rate initially equal to $ per share per annum, or $ per annum in the aggregate, on our common stock to holders of our common stock, and resulting in an annual yield of % based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. Any declaration and payment of cash dividends in the future, if any, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, cash flows, capital requirements, levels of indebtedness, receipt of cash dividends from our operating subsidiaries, restrictions imposed by applicable law, our overall financial condition, restrictions in debt agreements that we or our subsidiaries may enter into in the future and any other factors deemed relevant by our board of directors. If we pay such dividends, we may in the future reduce or discontinue entirely the payment of such dividends at any time. We are a holding company and our operations are conducted through our operating subsidiaries. In the event that we do pay a dividend, we intend to cause our operating subsidiaries to make distributions to us in an amount sufficient to cover such dividend. Any additional financing arrangement we enter into in the future may include restrictive covenants that limit our subsidiaries' ability to pay dividends to us. In addition, Delaware law may impose requirements that may restrict our ability to pay dividends to holders of our common stock. See "*Risk Factors—Risks Related to this Offering and Ownership of Our Common Stock*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources*."

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents and our capitalization as of May 31, 2025 on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an as adjusted basis to give effect to the Reorganization Transactions.

You should read this table together with the information included elsewhere in this prospectus, including "*Prospectus Summary—Summary Consolidated Financial and Other Data*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and our consolidated financial statements and the related notes thereto included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **As of May 31, 2025** | **As of May 31, 2025** |
|  | **Actual** | **As<br>adjusted<sup>(1)(2)(3)</sup>** |
|  **(in thousands, except unit and share data)** |  |  |
|  Cash and cash equivalents | $203497 | $|
|  Total debt | $— | $|
|  Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General partner | $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited partners (partnership units—no par value; 1,028,000 units issued and outstanding (actual); no units issued and outstanding (as adjusted))<sup>(1)</sup> | 309640 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock—$0.01 par value; no shares authorized, no shares issued and outstanding (actual); shares authorized, shares issued and outstanding (as adjusted)<sup>(1)(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock—$0.01 par value; no shares authorized, no shares issued and outstanding (actual); shares authorized, no shares issued and outstanding (as adjusted) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital<sup>(1)(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings<sup>(1)(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (39) |  |
|  Total equity attributable to the Company | $309601 | $|
|  Noncontrolling interests<sup>(2)</sup> | 14884 |  |
|  Total equity | $324485 | $|
|  **Total capitalization** | $324485 | $|

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(1) Prior to the closing of this offering, AP VIII Queso Holdings, L.P. will convert into a Delaware corporation
pursuant to a statutory conversion and change its name to Phoenix Education Partners, Inc. In connection with our conversion into a corporation, all of the      outstanding limited partnership units of AP VIII Queso Holdings,
L.P. will be converted on a -for- basis into an aggregate of     shares of our common stock.

(2) In connection with the Corporate Conversion and this offering, all of the outstanding shares of the
University's common stock owned by persons other than us will be converted into shares of our common stock at a ratio equal to     shares of our common stock for each share of the University's common stock. As a result,
we will issue     shares of our common stock upon the conversion of      outstanding shares of the University's common stock, and the University will then be our wholly owned subsidiary.

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**DILUTION** 

If you invest in our common stock in this offering, your ownership interest will be diluted to the extent of the difference between the initial public offering price per share of our common stock and the as adjusted net tangible book value per share of our currently outstanding common stock. Net tangible book value dilution per share to new investors means that the per share offering price of our common stock exceeds the as adjusted net tangible book value per share attributable to the shares of currently outstanding common stock held by existing stockholders.

Our as adjusted net tangible book value as of May 31, 2025 was $, or $ per share of our common stock. As adjusted net tangible book value per share represents the amount of our total tangible assets (total assets less total intangible assets) less total liabilities divided by the number of shares of common stock issued and outstanding as of May 31, 2025, after giving effect to the Reorganization Transactions.

We will not receive any proceeds from the sale of our common stock offered by the selling stockholders in this offering. Consequently, this offering will not result in any change to our as adjusted net tangible book value per share. Purchasing shares of common stock in this offering will result in net tangible book value dilution to new investors of $ per share. The following table illustrates this per share dilution to new investors purchasing shares in this offering:

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| | |
|:---|:---|
|  | **Per Share** |
|  Assumed initial public offering price per share | $|
|  As adjusted net tangible book value per share as of May 31, 2025 |  |
|  Dilution per share to new investors purchasing shares in this offering | $|

---

Dilution per share to new investors purchasing shares in this offering is determined by subtracting as adjusted net tangible book value per share from the initial public offering price per share of common stock.

The following table summarizes, as of May 31, 2025, on an as adjusted basis as described above, the total number of shares of common stock owned by existing stockholders and to be owned by new investors, the total consideration paid and the average price per share paid by our existing stockholders and to be paid by new investors in this offering at the assumed initial public offering price of $ per share, calculated before deduction of estimated underwriting discounts and commissions.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average Price<br>per Share** |
|  | **Number** | **Percent** | **Percent** | **Percent** | **Average Price<br>per Share** |
|  Existing stockholders<sup>(1)</sup>% |  |  | $nan% |  | $|
|  Investors in the offering% |  |  |  |  |  |
|  Total |  | 100% | $— | 100% | $|

---

(1) Includes     shares of common stock issued to certain stockholders in the University in
connection with the Reorganization Transactions, as described in "*Prospectus Summary—Reorganization Transactions*."

A $1.00 increase (decrease) in the assumed initial public offering price would increase (decrease) total consideration paid by new investors, total consideration paid by all stockholders and average price per share paid by all investors by $, $ and $ per share, respectively.

If the underwriters were to fully exercise their option to purchase additional shares of our common stock, the percentage of common stock held by existing investors would be %, and the percentage of shares of common stock held by new investors would be %.

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The information discussed above is illustrative only and will adjust based on the actual public offering price and other terms of this offering determined at pricing.

The foregoing tables and calculations, except as otherwise indicated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give effect to the Reorganization Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assume an initial public offering price of $ per share of common stock, the
midpoint of the range set forth on the cover page of this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assume no exercise of the underwriters' option to purchase up to      additional
shares of common stock from the selling stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect     shares of our common stock that may be issued upon the vesting of RSUs
outstanding under the University Equity Plan, of which    shares of our common stock may be issued upon the vesting of the University's RSUs that are subject to time-based vesting requirements and    shares
of our common stock may be issued upon the vesting of the University's RSUs that are subject to performance-based vesting requirements. See "*Executive Compensation—Management Equity Plan* "; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect     shares of our common stock reserved for future grant or issuable in
respect of (i) awards that may be granted under the Omnibus Incentive Plan, including    shares of our common stock that may be granted under the Omnibus Incentive Plan in exchange for common stock of the University that
holders would receive upon the exercise of University's outstanding stock options under the University Equity Plan, and (ii) the ESPP. See "*Prospectus Summary—The Offering,*" "*Executive Compensation—2025 Omnibus Incentive Plan*" and "*Executive Compensation—Employee Stock Purchase Plan.* "

We may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of such securities could result in further dilution to our stockholders. To the extent that any outstanding options are exercised, or new awards are granted under our equity compensation plans, there will be further dilution to investors participating in this offering.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL** 

**CONDITION AND RESULTS OF OPERATIONS** 

*You should read the following discussion of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes thereto included elsewhere in this prospectus. This discussion contains forward-looking statements that involve risk, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions and forecasts. Our actual results and the timing of selected events could differ materially from those discussed in these forward-looking statements as a result of several factors, including those set forth under the section of this prospectus titled "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see "Cautionary Note Regarding Forward-Looking Statements." The last day of our fiscal year is August 31. Our fiscal quarters end on the last day of November, February, May and August, respectively.* 

**Overview** 

We, through our subsidiary The University of Phoenix, Inc., are a pioneer of online higher education for working adults in the United States. Since our founding in 1976, the University has been a mission-driven organization focused on offering a distinctive and affordable online higher education experience that is customized for working adults who did not fit the traditional 18- to 22-year-old campus-based student model. The University has been accredited since 1978 by the HLC, an institutional accrediting agency recognized by the Department of Education. In our nearly five decades of operation, we have served more than 1.1 million alumni (including those who have completed non-degree certificates) and conferred nearly 1.3 million degrees.

We believe our outcomes-driven approach to learning empowers our students to achieve their educational and career potential while managing the competing priorities of family, work, community and school. Our commitment to serving the distinctive needs of working adults is reflected in the personalized, affordable and career-driven nature of our programs and support services. We help our students transform or accelerate their career trajectories through both degree-granting programs and non-degree programs that include skills-based certifications.

During fiscal year 2024, the University had Average Total Degreed Enrollment of 78,900, and we had net revenue of $950 million, net income of $115 million, Adjusted EBITDA of $229 million and Adjusted Net Income of $167 million. During the first nine months of fiscal year 2025, Average Total Degreed Enrollment increased to 82,700, and we had net revenue of $750 million, net income of $118 million, Adjusted EBITDA of $187 million and Adjusted Net Income of $133 million. See "*—Key Performance Metrics*" and "*—Non-GAAP Financial Measures and Reconciliations*" for the definitions of Average Total Degreed Enrollment, Adjusted EBITDA and Adjusted Net Income and reconciliations of net income to Adjusted EBITDA and Adjusted Net Income. We have one operating and reportable segment, the University, which represented all of our consolidated net revenue in fiscal year 2024 and in the first nine months of fiscal year 2025. Our chief operating decision maker, Christopher Lynne, President, currently evaluates performance and manages our operations at the consolidated level, and operating results are not evaluated on any component level.

**Factors Affecting Results of Operations** 

We believe our market position provides us with a significant opportunity to drive sustainable growth in the future. The following factors, among others described herein, have historically affected, and we expect in the future will similarly affect, our performance:

*Enrollment*. The net revenue we generate in a given period largely depends on the total number of courses taken by the enrolled student population and the price per course. As part of our focus on affordable and accessible tuition, we have not raised tuition rates since 2018. In addition, in 2018, we implemented our Tuition

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Price Guarantee program under which a student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date, thereby giving each of our students certainty in the price of tuition through the duration of their programs even if rates are subsequently increased for students who enroll at later dates. Our student retention rates (as defined elsewhere in this prospectus) have increased from 59.7% for the 2016/2017 cohort to 71.5% for the 2023/2024 cohort, which is a key factor driving the growth in Average Total Degreed Enrollment in recent years, including an 11.1% increase in fiscal year 2024 as compared to fiscal year 2023 and a 3.1% increase in the first nine months of fiscal year 2025 as compared to the first nine months of fiscal year 2024. We have invested in a data-driven marketing approach to optimize our marketing efforts and enhance the onboarding process for prospective students. Furthermore, over the past five years, we have invested approximately $500 million in technology resources, leveraging AI and proprietary machine learning models across the student journey. We expect these developments will further improve enrollment, retention and graduation rates, which drive sustainable growth. Enrollment and retention of students at the University is impacted by many of the risks described in "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate*" and "*Risk Factors—Risks Related to Our Business*," many of which are beyond our control.

*Career-Relevant Education and Employer Relationships.* Our career-oriented programs and learning platform position us for continued growth in the corporate-sponsored training and education market. Enrollment through our more than 2,500 employer relationships represent approximately 30% of our Average Total Degreed Enrollment in fiscal year 2024. This represents a valuable opportunity to diversify our student population and net revenue, drive growth and reduce acquisition costs as these students generally have higher retention and graduation rates. In addition, we have begun to expand discussions with employers beyond our degree offerings to include our comprehensive suite of talent development solutions, including Skillmore, Talent Source and professional development offerings. While the development of our talent development solutions is in the early stages, our ability to offer these solutions has broadened our relationships with key employers and provides an opportunity for growth.

*Regulatory Requirements*. Our operations are subject to extensive U.S. federal and state regulation applicable to providers of post-secondary education who participate in Title IV programs. Failure to comply with applicable regulatory requirements, standards or policies could subject us to significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans and grants for our students. Any actions that limit our participation in Title IV programs or the amount of student financial aid for which our students are eligible would materially impact our student enrollments and profitability and could impact the continued viability of our business as currently conducted. See "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—If we fail to comply with the extensive regulatory requirements applicable to our business, we could face significant monetary liabilities, fines and penalties, including loss of or limitations upon access to U.S. federal student loans, grants and military program benefits for our students*."

*Cost Structure.* Our ability to grow profitably depends on our ability to manage our cost structure. Our historical margin expansion has been largely derived from the operating leverage resulting from the increase in net revenue relative to our costs that are more fixed in nature and our exit from all but one of our ground campuses. We intend to augment this historical operating leverage through additional strategic and operational initiatives to enhance support for students in a more efficient manner. We continue to invest in optimization and we expect our investments will reduce friction points and increase efficiencies throughout the University.

*Seasonality.* Although the University's non-term academic model encompassing a series of courses taken consecutively over the length of the program reduces seasonal enrollment fluctuations, we have historically experienced, and expect to continue to experience, lower net revenue in our second fiscal quarter (December through February) compared to other quarters due to the University's holiday breaks when no related net revenue is recognized. While our operating costs generally do not fluctuate significantly on a quarterly basis, we have historically experienced, and expect to continue to experience, increased marketing expense in our second and fourth fiscal quarters due to course starts that occur during traditional back-to-school seasons.

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**Key Performance Metrics** 

We review a number of operating and financial metrics, including the key performance metrics presented in the table below, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31, 2024** | **August 31, 2023** | **May 31, 2025** | **May 31, 2024** |
| **(Enrollment statistics rounded to the nearest hundred; dollars<br>in thousands)** | | | | |
|  **Average Total Degreed Enrollment** | 78900 | 71000 | 82700 | 80200 |
|  **Net income** | $115148 | $65932 | $117871 | $105129 |
|  **Net income margin** | 12.1% | 7.9% | 15.7% | 14.8% |
|  **Adjusted EBITDA** | $229053 | $157534 | $187308 | $187426 |
|  **Adjusted EBITDA Margin** | 24.1% | 18.9% | 25.0% | 26.4% |

---

*Average Total Degreed Enrollment*. Enrollment is the primary driver of our net revenue and a key non-financial metric that helps compare our performance on a consistent basis across time periods. Additionally, enrollment is a reflection of our ability to retain continuing students and enroll new students, which are key components of our growth strategy. Enrollment measures in our industry do not have a standardized meaning, and other companies in our industry may calculate various measures of enrollment differently than we do.

Substantially all of our net revenue is generated from student enrollment in tuition-bearing degree programs encompassing a series of courses (e.g., most often five-week courses) taken consecutively over the length of the program. Over comparative periods, Total Degreed Enrollment generally increases as new students attend a credit-bearing course or continuing students return to the University, which increases are generally offset by graduations or continuing students not attending a credit-bearing course (e.g., by withdrawing from the University). Average Total Degreed Enrollment for the periods shown above represents the aggregate of monthly Total Degreed Enrollment during such period divided by the number of months in the period. For example, Average Total Degreed Enrollment for fiscal year 2024 is calculated as the aggregate Total Degreed Enrollment for the months from September 2023 through August 2024 divided by 12.

*Net income, Net income margin, Adjusted EBITDA and Adjusted EBITDA Margin*. We believe net income, net income margin, Adjusted EBITDA and Adjusted EBITDA Margin are primary indicators of our operating performance because they are measures of profitability, help compare our performance across time periods and assist with the evaluation of the effectiveness of our business strategies. Additionally, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that help compare our profitability on a consistent basis across time periods by excluding items that management and the board of directors do not believe are indicative of our core operating performance. We use Adjusted EBITDA and Adjusted EBITDA Margin to supplement GAAP measures of performance and to compare our performance against that of other peer companies using similar measures. See "*Prospectus Summary—Summary Consolidated Financial and Other Data*" and "*—Non-GAAP Financial Measures and Reconciliations*" for the definition of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of net income to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin. We calculate net income margin as net income divided by net revenue, expressed as a percentage.

**Key Components of Consolidated Statements of Income** 

*Net revenue*. The University has historically generated all, or substantially all, of its consolidated net revenue from tuition-bearing degree programs. Under the University's non-term academic delivery model, students generally enroll in a program of study encompassing a series of courses taken consecutively over the length of the program, and net revenue is recognized evenly over the duration of the course (e.g., daily over five weeks for a five-week course, other than the University's holiday breaks when no related net revenue is recognized).

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The amount of net revenue generated in a given period depends on the total number of courses taken by the enrolled student population (see "*—Key Performance Metrics—Average Total Degreed Enrollment*" above) and the price per course. Accordingly, the main drivers of changes in net revenue between periods are enrollment, the price of courses and discounts. The price per course generally varies by degree level and, in some cases, by the college within the University, and is also reduced by any discount programs used by students. Effective January 2018, the University implemented its Tuition Price Guarantee program, under which a student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date, thereby giving each of our students certainty in the price of tuition through the duration of their programs. Our B2B enrollments generally receive discounted tuition from the University.

*Instructional and support costs.* Instructional and support costs principally consist of costs related to the delivery and administration of our educational programs and include costs related to faculty, academic administrators, enrollment and student advisory personnel (including share-based compensation), credit losses associated with uncollectible accounts receivable, financial aid processing costs and depreciation of applicable property and equipment. Instructional and support costs also include course development costs (including amortization of related intangible assets) and costs associated with delivering course content.

*General and administrative*. General and administrative principally consists of costs related to management and employees in administrative functions (including share-based compensation), marketing expense, legal and professional fees, IT infrastructure costs, depreciation of property and equipment associated with our administrative functions, rent and related expenses associated with our corporate facilities and other related costs.

*Restructuring charges, acquisition expense and other*. Restructuring charges, acquisition expense and other principally consists of (1) lease expense for non-cancelable lease obligations and other related expenses for leased space we have exited as part of our ground campus and administrative space rationalization plans, (2) severance and other employee separation costs, (3) other expenses related to exit activities, and (4) unusual or infrequent items such as, but not limited to, expenses associated with our pursuit of strategic alternatives for the future ownership of the University during such periods.

*Litigation charges*. Litigation charges consists of expense recognized for loss contingencies associated with litigation and other matters.

*Provision for income taxes*. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Our income tax expense and deferred tax assets and liabilities reflect our best assessment of estimated current and future taxes to be paid.

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**Results of Operations** 

***Comparison of the Nine Months Ended May 31, 2025 and 2024***

We have included below a discussion of our operating results and significant items explaining the material changes in our operating results for the nine months ended May 31, 2025 and 2024. The following details our consolidated results of operations.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended May 31,**<br>**(Unaudited)** | **Nine Months Ended May 31,**<br>**(Unaudited)** | **Nine Months Ended May 31,**<br>**(Unaudited)** | **Nine Months Ended May 31,**<br>**(Unaudited)** | |
|  | | | **% of Net<br>Revenue** | **% of Net<br>Revenue** |<br>**% Change** |
| **($ in thousands)** | **2025** | **2024** | **2025** | **2024** | **2025 versus 2024** |
|  **Net revenue** | $749801 | $709799 |  |  | 5.6% |
|  Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 325779 | 299778 | 43.4% | 42.2% | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 255703 | 242886 | 34.1% | 34.2% | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 17886 | 38616 | 2.4% | 5.5% | (53.7)% |
|  **Total costs and expenses** | 599368 | 581280 | 79.9% | 81.9% | 3.1% |
|  **Operating income** | 150433 | 128519 | 20.1% | 18.1% | 17.1% |
|  Interest income | 8334 | 12149 | 1.1% | 1.7% | (31.4)% |
|  Interest expense | (332) | (794) | (0.1)% | (0.1)% | (58.2)% |
|  Other loss, net |  | (331) | 0.0% | 0.0% | **\*** |
|  **Income before income taxes** | 158435 | 139543 | 21.1% | 19.7% | 13.5% |
|  Provisions for income taxes | 40564 | 34414 | 5.4% | 4.9% | 17.9% |
|  **Net income** | 117871 | 105129 | 15.7% | 14.8% | 12.1% |
|  **Net income attributable to noncontrolling interests** | (1489) | (1821) | (0.2)% | (0.2)% | (18.2)% |
|  **Net income attributable to the Company** | $116382 | $103308 | 15.5% | 14.6% | 12.7% |

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\* Not meaningful

***Net revenue***

Net revenue increased $40 million, or 5.6%, to $750 million in the first nine months of fiscal year 2025 from $710 million in the first nine months of fiscal year 2024. Since 2018, under our Tuition Price Guarantee, each student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date. The increase in net revenue was principally attributable to enrollment growth, as measured by Average Total Degreed Enrollment, which increased 3.1% in the first nine months of fiscal year 2025 as compared to the first nine months of fiscal year 2024. The remaining increase in net revenue was in part due to an increase in the number of course starts per student during the first nine months of fiscal year 2025 compared to the prior year period.

***Instructional and support costs***

Instructional and support costs increased $26 million, or 8.7%, to $326 million in the first nine months of fiscal year 2025 from $300 million in the first nine months of fiscal year 2024. This resulted in such expenses increasing as a percentage of net revenue by 1.2%. The overall increase in instructional and support costs on a dollar basis was primarily attributable to increases in employee salaries and benefits, financial aid processing costs, credit losses on accounts receivable and variable costs associated with the increase in net revenue, including faculty wages and curriculum expense that generally fluctuate with changes in enrollment. We believe

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part of the increase in employee-related expenses and financial aid processing costs is temporary as we address financial aid processing changes following the Department of Education's implementation of an updated financial aid application form and transition to disbursing financial aid by course (see further disclosure below in —*Liquidity and Capital Resources*).

***General and administrative***

General and administrative costs increased $13 million, or 5.3%, to $256 million in the first nine months of fiscal year 2025 from $243 million in the first nine months of fiscal year 2024. This resulted in such expenses decreasing as a percentage of net revenue by 0.1%. The increase in general administrative costs on a dollar basis was primarily attributable to investments we have made in our marketing function, including increased advertising, and employee salaries and benefits to support our growth.

***Restructuring charges, acquisition expense and other***

Restructuring charges, acquisition expense and other includes the following for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br>**May 31,**<br>**(Unaudited)** | **Nine Months Ended**<br>**May 31,**<br>**(Unaudited)** |
| **($ in thousands)** | **2025** | **2024** |
|  Restructuring lease expenses | $3837 | $12522 |
|  Acquisition expense | 7401 | 19245 |
|  Other | 6648 | 6849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | $17886 | $38616 |

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Restructuring charges, acquisition expense and other decreased $21 million, or 53.7%, to $18 million in the first nine months of fiscal year 2025 from $39 million in the first nine months of fiscal year 2024. This decrease was principally due to lower acquisition expense mainly attributable to the $12.7 million loss on interest rate swaptions included in acquisition expense during the first nine months of fiscal year 2024 associated with the debt financing we expected to be used for the strategic transaction with Four Three (refer to Note 1 to our audited consolidated financial statements and Note 1 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional information). The decrease was also the result of the decline in restructuring lease expense associated with our ground campus and administrative space rationalization plans (refer to Note 2 to our audited consolidated financial statements and Note 2 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional information).

Subsequent to May 31, 2025, we paid $12.2 million to UofI to terminate our agreement with Four Three as we are no longer pursuing the associated strategic transaction. This expense will be included in restructuring charges, acquisition expense and other in the fourth quarter of fiscal year 2025.

***Interest income***

Interest income decreased $4 million, or 31.4%, to $8 million in the first nine months of fiscal year 2025 from $12 million in the first nine months of fiscal year 2024. This decrease was principally attributable to a decrease in average cash and cash equivalents and marketable securities held and a decrease in interest rate yields in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024.

***Interest expense***

We had no outstanding debt as of May 31, 2025 and 2024, respectively, and we incurred insignificant interest expense in the first nine months of fiscal years 2025 and 2024.

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***Other loss, net***

Other loss, net was zero in the first nine months of fiscal year 2025 and was insignificant in the first nine months of fiscal year 2024.

***Provision for income taxes***

Provision for income taxes increased $7 million, or 17.9%, to $41 million in the first nine months of fiscal year 2025 from $34 million in the first nine months of fiscal year 2024. The increase in our provision for income taxes was principally attributable to growth in income before income taxes. Our effective income tax rate in the first nine months of fiscal year 2025 was 25.6% compared to 24.7% in the first nine months of fiscal year 2024. The effective income tax rate for both periods differed from the federal statutory rate of 21% primarily due to state income taxes.

***Comparison of Fiscal Years Ended August 31, 2024 and August 31, 2023***

We have included below a discussion of our operating results and significant items explaining the material changes in our operating results for fiscal years 2024 and 2023. The following details our consolidated results of operations.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended August 31,** | **Fiscal Year Ended August 31,** | **Fiscal Year Ended August 31,** | **Fiscal Year Ended August 31,** | |
|  | | | **% of Net Revenue** | **% of Net Revenue** |<br>**% Change** |
| **($ in thousands)** | **2024** | **2023** | **2024** | **2023** | **2024 versus 2023** |
|  **Net revenue** | $950015 | $835245 |  |  | 13.7% |
|  Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 403923 | 379259 | 42.5% | 45.4% | 6.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 343993 | 328784 | 36.2% | 39.3% | 4.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 50113 | 40744 | 5.3% | 4.9% | 23.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges |  | 4789 | —% | 0.6% | \* |
|  **Total costs and expenses** | 798029 | 753576 | 84.0% | 90.2% | 5.9% |
|  **Operating income** | 151986 | 81669 | 16.0% | 9.8% | 86.1% |
|  Interest income | 16690 | 8529 | 1.8% | 1.0% | 95.7% |
|  Interest expense | (960) | (1769) | (0.1)% | (0.2)% | (45.7)% |
|  Other loss, net | (475) | (791) | (0.1)% | (0.1)% | (39.9)% |
|  **Income before income taxes** | 167241 | 87638 | 17.6% | 10.5% | 90.8% |
|  Provision for income taxes | 52093 | 21706 | 5.5% | 2.6% | 140.0% |
|  **Net income** | 115148 | 65932 | 12.1% | 7.9% | 74.6% |
|  **Net income attributable to noncontrolling interests** | (2018) | (1002) | (0.2)% | (0.1)% | 101.4% |
|  **Net income attributable to the Company** | $113130 | $64930 | 11.9% | 7.8% | 74.2% |

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\* Not meaningful

***Net revenue***

Net revenue increased $115 million, or 13.7%, to $950 million in fiscal year 2024 from $835 million in fiscal year 2023. Since 2018, under our Tuition Price Guarantee, each student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date. The increase in net revenue was principally attributable to enrollment growth, as measured by Average Total Degreed Enrollment, which increased 11.1% in fiscal year

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2024 as compared to fiscal year 2023. The increase in Average Total Degreed Enrollment resulted from new student growth and improved student retention. The remaining increase in net revenue was in part due to one extra day in fiscal year 2024 as a result of a leap year.

***Instructional and support costs***

Instructional and support costs increased $25 million, or 6.5%, to $404 million in fiscal year 2024 from $379 million in fiscal year 2023, but decreased as a percentage of net revenue by 2.9%. The overall increase in instructional and support costs on a dollar basis was primarily due to higher variable costs associated with the increase in net revenue, including faculty wages and curriculum expense that generally fluctuate with changes in enrollment. The decrease in instructional and support costs as a percentage of net revenue was primarily due to operating leverage resulting from the increase in net revenue relative to our costs that are more fixed in nature. This was partially offset by an increase in credit losses on accounts receivable as a percentage of net revenue.

***General and administrative***

General and administrative costs increased $15 million, or 4.6%, to $344 million in fiscal year 2024 from $329 million in fiscal year 2023, but decreased as a percentage of net revenue by 3.1%. The increase in general administrative costs on a dollar basis was primarily attributable to an increase in employee salaries and benefits to support our growth. The decrease in general and administrative costs as a percentage of net revenue was primarily due to investments we have made in our marketing function, which we believe have resulted in more effective and efficient advertising, and operating leverage resulting from the increase in net revenue relative to our costs that are more fixed in nature.

***Restructuring charges, acquisition expense and other***

Restructuring charges, acquisition expense and other includes the following for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended<br>August 31,** | **Fiscal Year Ended<br>August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Restructuring lease expenses | $15201 | $16346 |
|  Acquisition expense | 25257 | 9147 |
|  Impairment charges and asset disposal losses | 212 | 11507 |
|  Other | 9443 | 3744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | $50113 | $40744 |

---

Restructuring charges, acquisition expense and other increased $9 million, or 23.0%, to $50 million in fiscal year 2024 from $41 million in fiscal year 2023. This increase was principally due to costs associated with our pursuit of strategic alternatives during such periods. Refer to Note 2 to our audited consolidated financial statements included elsewhere in this prospectus for additional information on restructuring charges, acquisition expense and other.

***Litigation charges***

We did not record any expense for litigation loss contingencies in fiscal year 2024, and we incurred $4.8 million of such expense in fiscal year 2023. The expense in fiscal year 2023 principally resulted from a settlement that we paid in fiscal year 2024 associated with a state attorney general investigation that was initiated in fiscal year 2015. Refer to Note 10 to our audited consolidated financial statements included elsewhere in this prospectus for additional information.

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***Interest income***

Interest income increased $8 million, or 95.7%, to $17 million in fiscal year 2024 from $9 million in fiscal year 2023. This increase was principally attributable to an increase in average cash and cash equivalents and marketable securities held in fiscal year 2024 compared to fiscal year 2023.

***Interest expense***

We had no outstanding debt as of August 31, 2024 and 2023, respectively, and we incurred insignificant interest expense in fiscal years 2024 and 2023.

***Other loss, net***

Other loss, net was insignificant in fiscal year 2024 and fiscal year 2023.

***Provision for income taxes***

Provision for income taxes increased $30 million, or 140.0%, to $52 million in fiscal year 2024 from $22 million in fiscal year 2023. The increase in our provision for income taxes was principally attributable to growth in income before income taxes, and $8.8 million of tax expense recorded in fiscal year 2024 resulting from our election to no longer pursue a claim of right credit associated with our $50 million settlement payment made in fiscal year 2020 to the Federal Trade Commission. Refer to Notes 8 and 10 to our audited consolidated financial statements included elsewhere in this prospectus for additional information on income taxes and such settlement, respectively.

Our effective income tax rate in fiscal year 2024 was 31.1% compared to 24.8% in fiscal year 2023. The increase in our effective income tax rate was primarily due to the $8.8 million of tax expense recorded in fiscal year 2024 noted above.

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**Unaudited Quarterly Results of Operations Data** 

The following tables set forth our unaudited quarterly condensed consolidated statements of operations data for each of the quarters indicated. The information for each quarter has been prepared on a basis consistent with our audited consolidated financial statements, and reflects, in our opinion, all adjustments of a normal, recurring nature that are necessary for a fair statement of the financial information presented. Our historical results are not necessarily indicative of the results that may be expected in the future. The following quarterly financial data should be read in conjunction with our audited consolidated financial statements and unaudited interim condensed consolidated financial statements included elsewhere in this prospectus.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** |
|  | **May 31,**<br>**2025** | **February 28,<br>2025** | **November 30,<br>2024** | **August 31,<br>2024** | **May 31,<br>2024** | **February 29,<br>2024** | **November 30,<br>2023** | **August 31,<br>2023** |
| **($ in thousands)** | | | | | | | | |
|  **Net revenue** | $271703 | $223406 | $254692 | $240216 | $253848 | $216548 | $239403 | $222372 |
|  Costs and expenses: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 110446 | 107210 | 108123 | 104145 | 106066 | 96214 | 97498 | 98723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 83320 | 90428 | 81955 | 101107 | 80631 | 85265 | 76990 | 83826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 6837 | 6103 | 4946 | 11497 | 11128 | 22107 | 5381 | 6451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges |  |  |  |  |  |  |  | 1235 |
|  **Total costs and expenses** | 200603 | 203741 | 195024 | 216749 | 197825 | 203586 | 179869 | 190235 |
|  **Operating income** | 71100 | 19665 | 59668 | 23467 | 56023 | 12962 | 59534 | 32137 |
|  Interest income | 2278 | 2198 | 3858 | 4541 | 4226 | 4285 | 3638 | 3047 |
|  Interest expense | (107) | (111) | (114) | (166) | (120) | (127) | (547) |  |
|  Other loss, net |  |  |  | (144) | (150) | (181) |  | (187) |
|  **Income before income taxes** | 73271 | 21752 | 63412 | 27698 | 59979 | 16939 | 62625 | 34997 |
|  Provision for income taxes | 18622 | 5648 | 16294 | 17679 | 14765 | 3916 | 15733 | 8373 |
|  **Net income** | 54649 | 16104 | 47118 | 10019 | 45214 | 13023 | 46892 | 26624 |
|  Net (income) loss attributable to noncontrolling interests | (808) | 21 | (702) | (197) | (825) | (241) | (755) | (428) |
|  **Net income attributable to the Company** | $53841 | $16125 | $46416 | $9822 | $44389 | $12782 | $46137 | $26196 |

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**Quarterly GAAP to Non-GAAP Reconciliation** 

The following presents reconciliations of net income to Adjusted EBITDA and Adjusted EBITDA Margin for our quarterly financial data. See "—*Non-GAAP Financial Measures and Reconciliations" for additional information related to our non-GAAP financial measures.*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** | **Three Months Ended**<br>**(Unaudited)** |
|  | **May 31**<br>**2025,** | **February 28,<br>2025** | **November 30,<br>2024** | **August 31,<br>2024** | **May 31,<br>2024** | **February 29,<br>2024** | **November 30,<br>2023** | **August 31,<br>2023** |
| **($ in thousands)** | | | | | | | | |
|  **Net income** | $54649 | $16104 | $47118 | $10019 | $45214 | $13023 | $46892 | $26624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<br>(credit)  | 2121 | (311) | 2027 | 2679 | 6801 | 2822 | 2899 | 5390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense | 2402 | 4124 | 875 | 6012 | 1883 | 2884 | 1751 | 2942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions |  |  |  |  |  | 14246 | (1519) | (3725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment changes and asset disposal losses | 29 | 50 | 34 | 32 | 69 | 60 | 51 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense | 1295 | 1480 | 1205 | 1150 | 1184 | 1593 | 1432 | 3223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense | 645 | 617 | 646 | 2048 | 1721 | 1002 | 1004 | 2176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 5534 | 5622 | 5192 | 4758 | 4995 | 5861 | 5442 | 5441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net of interest expense | (2171) | (2087) | (3744) | (4375) | (4106) | (4158) | (3091) | (3047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | 18622 | 5648 | 16294 | 17679 | 14765 | 3916 | 15733 | 8373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1057 | 1036 | 1195 | 1624 | 1203 | 875 | 980 | 458 |
|  **Adjusted EBITDA** | $84183 | $32283 | $70842 | $41626 | $73729 | $42124 | $71574 | $47907 |
|  **Net income margin** | 20.1% | 7.2% | 18.5% | 4.2% | 17.8% | 6.0% | 19.6% | 12.0% |
|  **Adjusted EBITDA Margin** | 31.0% | 14.5% | 27.8% | 17.3% | 29.0% | 19.5% | 29.9% | 21.5% |

---

**Non-GAAP Financial Measures and Reconciliations** 

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we also provide the below non-GAAP financial measures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted Net Income*. We define Adjusted Net Income as net income, adjusted to eliminate the impact of
restructuring lease expense, strategic alternatives expense, loss (gain) on interest rate swaptions, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation expense, certain tax effects and other items set forth in the applicable table below.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted EBITDA*. We define Adjusted EBITDA as net income, adjusted to eliminate the impact of
restructuring lease expense, strategic alternatives expense, loss (gain) on interest rate swaptions, impairment charges and asset disposal losses, litigation charges and regulatory expense, non-cash share-based compensation expense, depreciation and amortization, interest income, net of interest expense, provision for income taxes and certain other items set forth in the applicable table below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted EBITDA Margin.* We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue,
expressed as a percentage.

Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and are included as supplemental disclosures because we believe they are useful indicators of our operating performance. Derivations of net income and EBITDA are well recognized performance measurements in the education industry that are frequently used by our management, as well as by investors, securities analysts and other interested parties to compare the operating performance of companies in our industry. We believe these non-GAAP measures help compare our performance on a consistent basis across time periods and provide an additional analytical tool to help identify underlying trends in our results of operations. While we believe that these non-GAAP measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for net income recognized in accordance with GAAP.

Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools. Additionally, other companies in our industry may calculate Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, limiting each measure's usefulness as a comparative measure. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect costs or cash outlays for capital expenditures or contractual commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect changes in, or cash requirements for, our working capital needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative
of our ongoing operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA does not reflect our tax expense or the cash requirements to pay our taxes.

Because of these limitations, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. You are cautioned not to place undue reliance on this information.

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##### [**Table of Contents**](#toc)
The following tables present reconciliations of net income to Adjusted Net Income and net income to Adjusted EBITDA and Adjusted EBITDA Margin for the periods presented below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2024** | **August 31,<br>2023** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2025** | **May 31,<br>2024** | **May 31,<br>2024** |
| **(in thousands)** | | | | | | | | |
|  **Net income** | $| 115148 | $| 65932 | $| 117871 | $| 105129 |
|  Special items and share-based compensation: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<sup>(a)</sup> |  | 15201 |  | 16346 |  | 3837 |  | 12522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense<sup>(b)</sup> |  | 12530 |  | 12872 |  | 7401 |  | 6518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions<sup>(c)</sup> |  | 12727 |  | (3725) |  |  |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses<sup>(d)</sup> |  | 212 |  | 11507 |  | 113 |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense<sup>(e)</sup> |  | 5359 |  | 7493 |  | 3980 |  | 4209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense<sup>(f)</sup> |  | 5775 |  | 5558 |  | 1908 |  | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(g)</sup> |  | 4682 |  | 2699 |  | 3288 |  | 3058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effects of special items and share-based compensation<sup>(h)</sup> |  | (13947) |  | (11901) |  | (5050) |  | (10603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax effects from claim of right reversal (credit), net<sup>(i)</sup> |  | 8842 |  | (908) |  |  |  | (869) |
|  **Adjusted Net Income** | $| 166529 | $| 105873 | $| 133348 | $| 136598 |
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
|  | **August 31,<br>2024** | **August 31,<br>2024** | **August 31,<br>2023** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2025** | **May 31,<br>2024** | **May 31,<br>2024** |
| **(in thousands)** |  |  |  |  |  |  |  |  |
|  **Net income** | $| 115148 | $| 65932 | $| 117871 | $| 105129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring lease expense<sup>(a)</sup> |  | 15201 |  | 16346 |  | 3837 |  | 12522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic alternatives expense<sup>(b)</sup> |  | 12530 |  | 12872 |  | 7401 |  | 6518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions<sup>(c)</sup> |  | 12727 |  | (3725) |  |  |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses<sup>(d)</sup> |  | 212 |  | 11507 |  | 113 |  | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges and regulatory expense<sup>(e)</sup> |  | 5359 |  | 7493 |  | 3980 |  | 4209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash share-based compensation expense<sup>(f)</sup> |  | 5775 |  | 5558 |  | 1908 |  | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization |  | 21056 |  | 23906 |  | 16348 |  | 16297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net of interest expense |  | (15730) |  | (6760) |  | (8002) |  | (11355) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes |  | 52093 |  | 21706 |  | 40564 |  | 34414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(g)</sup> |  | 4682 |  | 2699 |  | 3288 |  | 3058 |
|  **Adjusted EBITDA** | $| 229053 | $| 157534 | $| 187308 | $| 187426 |
|  **Net income margin** |  | 12.1% |  | 7.9% |  | 15.7% |  | 14.8% |
|  **Adjusted EBITDA Margin** |  | 24.1% |  | 18.9% |  | 25.0% |  | 26.4% |

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(a) Restructuring lease expense represents non-cancelable lease
obligations, including any offset from sublease income, and other related expenses for leased space we have exited as part of our ground campus and administrative space rationalization plans. In 2012, as a key component of the University's
transformation initiatives, the University began the process of completing the orderly closure of its ground campuses, as more enrolling students made the choice to take their programs online. The University completed the orderly closure of its
campus locations in early fiscal year 2025, with only one physical location, in Phoenix, Arizona, currently enrolling new students. Additionally, as of August 31, 2023, pursuant to its space rationalization plans, the University had exited 19
floors of its 22-floor administrative office buildings. Refer to Note 2 to our audited consolidated financial statements and Note 2 to our unaudited interim condensed consolidated financial statements included
elsewhere in this prospectus for additional information on restructuring lease expense.

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(b) Strategic alternatives expense consists of costs associated with our pursuit of strategic alternatives for
the future ownership of the University during such periods. This includes costs incurred for this offering and costs incurred pursuing a strategic transaction with Four Three, which we are no longer pursuing. Refer to Note 1 to our audited
consolidated financial statements and Note 1 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for additional information.

(c) In July 2023, we purchased two interest rate swaptions for an aggregate premium of $9 million to hedge
interest rate risk associated with the debt financing we expected to be used for the strategic transaction with Four Three. The swaptions were reported at fair value on our consolidated balance sheets until they expired out of the money during
fiscal year 2024. As a result, we recognized a $12.7 million loss and a $3.7 million gain in fiscal years 2024 and 2023, respectively, for associated changes in fair value.

(d) Represents non-cash impairment charges and asset disposal losses,
substantially all of which in fiscal year 2023 resulted from a right-of-use asset impairment charge associated with our space rationalization plans. Refer to Note 2 and
Note 6 to our audited consolidated financial statements included elsewhere in this prospectus for additional information.

(e) Litigation charges and regulatory expense consists of expense recognized for loss contingencies associated
with litigation and certain expenses associated with regulatory matters, in each case, that we believe are not indicative of our ongoing operations, including the items listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.8 million in fiscal year 2024 associated with a multi-year insurance policy pertaining to borrower
defense to repayment claims. Refer to Note 11 to our audited consolidated financial statements and Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus and
" *Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment"* for additional information on borrower defense to repayment. The remaining expense primarily represents
legal fees for non-routine litigation and regulatory matters that are separate and distinct from normal, recurring litigation and regulatory expenses incurred in the normal course of our business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.6 million in fiscal year 2023 resulting from a settlement that we paid in fiscal year 2024 associated
with a state attorney general investigation that was initiated in fiscal year 2015 (refer to Note 10 to our audited consolidated financial statements included elsewhere in this prospectus for additional information), $1.3 million associated
with a multi-year insurance policy pertaining to borrower defense to repayment claims (refer to "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment"* for
additional information), and the remainder principally representing legal fees for non-routine litigation and regulatory matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.6 million in both the nine months ended May 31, 2025 and 2024 associated with the borrower defense
multi-year insurance policy noted above, and the remainder in both periods principally representing legal fees for non-routine litigation and regulatory matters. Refer to Note 11 to our audited consolidated financial statements and Note 13 to our
unaudited interim condensed consolidated financial statements included elsewhere in this prospectus and "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment* "
for additional information on borrower defense to repayment **.** 

(f) Represents non-cash equity-based compensation expense in accordance
with Accounting Standards Codification Topic 718, Compensation: Stock Compensation. Although share-based compensation is a key incentive offered to our employees, we evaluate our business performance excluding share-based compensation expense
because it is a non-cash expense.

(g) Other consists of management fees pursuant to our existing management consulting agreement and other
expenses that we believe are not indicative of our ongoing operations. The existing management consulting agreement will be terminated effective as of the pricing of this offering and therefore no management fees will accrue or be payable for
periods after the pricing of this offering. See "*Certain Relationships and Related Party Transactions—Management Consulting Agreement*" included elsewhere in this prospectus for additional information.

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(h) Represents the income tax effect of these non-GAAP adjustments,
calculated using the appropriate statutory tax rates. The non-GAAP effective tax rates were 24.7% and 22.6% for fiscal year 2024 and fiscal year 2023, respectively, and 24.6% and 24.7% for the nine months
ended May 31, 2025 and 2024, respectively.

(i) Represents income tax effects from a claim of right credit that we elected to no longer pursue in fiscal
year 2024 associated with our $50 million settlement payment made in fiscal year 2020 to the Federal Trade Commission. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Federal Trade Commission Investigation*" for additional information. We do not believe the settlement payment and the related income tax effects are indicative of our ongoing operations. Refer to Note 8 to our audited consolidated financial statements
included elsewhere in this prospectus for additional information on income taxes.

**Liquidity and Capital Resources** 

Our primary sources of cash are cash provided by operations, cash and cash equivalents and marketable securities on hand. Our principal uses of cash are, and we expect to continue to be, payments of our operating expenses, such as wages and benefits, advertising and investments to maintain and enhance our digital technology platform and various technology systems to support and improve the student experience. We believe that our existing cash and investment balances and funds generated from operating activities will be sufficient to meet our working and other capital requirements for the foreseeable future.

Although we currently have substantial liquidity, our ability to deploy currently available liquidity is constrained by our need to maintain a Department of Education financial responsibility composite score of at least 1.5. See "*Business—Regulatory Environment—Regulation of Student Financial Aid Programs—Standards of Financial Responsibility*" included elsewhere in this prospectus for a discussion of composite score requirements and calculations.

During the first nine months of fiscal year 2025, we distributed $149 million (including $134 million to our limited partners and $15 million to noncontrolling interests). Additionally, subsequent to May 31, 2025, we distributed an incremental $88 million (including $80 million to our limited partners and $8 million to noncontrolling interests). Other than these distributions, uses of cash for fiscal year 2025 are expected to consist primarily of operating expenses, an increase in working capital associated with student deposits (see "—*Operating cash flows*") and capital expenditures to maintain and enhance our digital technology platform and various technology systems. Total capital expenditures for fiscal year 2025 are expected to be reasonably consistent with fiscal year 2024. Additionally, as we had no outstanding debt as of August 31, 2024, material future cash requirements are limited to obligations associated with our operating leases.

***Cash and cash equivalents, restricted cash and cash equivalents and marketable securities***

Our cash and cash equivalents, including restricted cash and cash equivalents and marketable securities are placed with high-credit-quality financial institutions. The following provides a summary of these financial instruments as of the respective periods:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **August 31,<br>2024** | **August 31,<br>2023** | **% Change** | **May 31,<br>2025** | **August 31,<br>2024** | **% Change** |
| **($ in thousands)** | | | | | | |
|  Cash and cash equivalents | $297339 | $240660 | 24% | $203497 | $297339 | (32)% |
|  Restricted cash and cash equivalents | 58831 | 54969 | 7% | 39928 | 58831 | (32)% |
|  Current marketable securities | 16336 | 10556 | 55% | 9223 | 16336 | (44)% |
|  Noncurrent marketable securities | 10438 | 11135 | (6)% | 14620 | 10438 | 40% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $382944 | $317320 | 21% | $267268 | $382944 | (30)% |

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Total cash and cash equivalents (including restricted cash and cash equivalents) and marketable securities (including current and noncurrent marketable securities) decreased $116 million, or 30%, to $267 million during

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the first nine months of fiscal year 2025 from $383 million as of August 31, 2024 principally due to $149 million of distributions (including $134 million to our limited partners and $15 million to noncontrolling interests) and $16 million of capital expenditures. This was partially offset by cash generated by operating activities principally attributable to net income and associated non-cash items as further described below in "—*Operating Cash Flows*".

Total cash and cash equivalents (including restricted cash and cash equivalents) and marketable securities (including current and noncurrent marketable securities) increased $66 million, or 21%, to $383 million during fiscal year 2024 from $317 million as of August 31, 2023 due to $163 million of cash generated by operating activities. As further described in "—*Operating Cash Flows*", cash generated by operating activities was principally attributable to net income and associated non-cash items. Cash generated from operating activities was partially offset by $75 million of capital distributions (including $70 million to our limited partners and $5 million to noncontrolling interests) and $23 million of capital expenditures principally for internal software development.

As of May 31, 2025 and August 31, 2024, our cash and cash equivalents (including restricted cash and cash equivalents) approximate fair value because of the short-term nature of the financial instruments. Our marketable securities (including current and noncurrent marketable securities) have original maturities to us greater than three months, and contractual maturities that will occur within three years. Our marketable securities are classified as available-for-sale and are measured at fair value. We determine the fair value of these investments using a market approach with Level 2 observable inputs including quoted prices for similar assets in active markets, or quoted prices for identical or similar assets in markets that are not active. We may sell certain of our marketable securities prior to their stated maturities for strategic reasons including, but not limited to, investment yield and credit risk management. We have not recognized significant gains or losses related to such sales. Additionally, all of the securities we hold are investment grade, and we had no related allowance for credit losses as of May 31, 2025 or August 31, 2024.

***Dividends***

Beginning in the first full fiscal quarter following the completion of this offering, we anticipate paying a quarterly cash dividend at a rate initially equal to $ per share per annum, or $ per annum in the aggregate, on our common stock to holders of our common stock, and resulting in an annual yield of % based on a price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus. Although we currently intend to pay a quarterly cash dividend to holders of our common stock, we have no obligation to do so, and our dividend policy may change at any time without notice to our shareholders. Any declaration and payment of cash dividends in the future, if any, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, cash flows, capital requirements, levels of indebtedness, receipt of cash dividends from our operating subsidiaries, restrictions imposed by applicable law, our overall financial condition, restrictions in debt agreements that we or our subsidiaries may enter into in the future and any other factors deemed relevant by our board of directors. If we pay such dividends, we may in the future reduce or discontinue entirely the payment of such dividends at any time. We are a holding company and our operations are conducted through our operating subsidiaries. In the event that we do pay a dividend, we intend to cause our operating subsidiaries to make distributions to us in an amount sufficient to cover such dividend. See "*Dividend Policy*."

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***Operating cash flows***

The following provides a summary of our operating cash flows during the periods shown below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
| **(in thousands)** | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
|  Net income | $115148 | $65932 | $117871 | $105129 |
|  Non-cash items | 108822 | 102034 | 88509 | 93954 |
|  Changes in assets and liabilities, excluding impact of acquisition | (60734) | (62284) | (154591) | (58558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | $163236 | $105682 | $51789 | $140525 |

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*Nine months ended May 31, 2025 –* Our non-cash items primarily consisted of a $36 million provision for credit losses on accounts receivable, $29 million of deferred income taxes, $16 million of depreciation and amortization, and $5 million of non-cash lease expense.

The changes in assets and liabilities primarily consisted of a $71 million decrease in student deposits resulting from our transition to financial aid disbursements by course (see further discussion below), and a $77 million increase in accounts receivable (excluding provision for credit losses in non-cash items discussed above) primarily due to course start timing and increased enrollment. This was partially offset by a $29 million increase in deferred revenue due to course start timing and increased enrollment.

*Nine months ended May 31 2024 –* Our non-cash items primarily consisted of a $30 million provision for credit losses on accounts receivable, $25 million of deferred income taxes, $16 million of depreciation and amortization, a $13 million loss on interest rate swaptions that were purchased in connection with our pursuit of strategic alternatives (refer to Notes 1 and 2 to our audited consolidated financial statements included elsewhere in this prospectus), and $6 million of non-cash lease expense.

The changes in assets and liabilities primarily consisted of a $36 million increase in accounts receivable (excluding provision for credit losses in non-cash items discussed above) due to course start timing and increased enrollment, and decreases in accrued compensation and benefits, operating lease liabilities and student deposits of $12 million, $11 million and $10 million, respectively. This was partially offset by a $19 million increase in deferred revenue due to course start timing and increased enrollment.

*Fiscal year 2024 –* Our non-cash items primarily consisted of a $41 million provision for credit losses on accounts receivable, $21 million of depreciation and amortization, $21 million of deferred taxes, a $13 million loss on interest rate swaptions that were purchased in connection with our pursuit of strategic alternatives (refer to Notes 1 and 2 to our audited consolidated financial statements included elsewhere in this prospectus), $8 million of non-cash lease expense and $6 million of share-based compensation.

The changes in assets and liabilities primarily consisted of a $46 million increase in accounts receivable (excluding provision for credit losses in non-cash items discussed above) primarily due to increased enrollment and a $26 million decrease in student deposits, which was partially offset by a decrease in prepaid income taxes resulting from our election to no longer pursue a claim of right credit (refer to Note 8 to our audited consolidated financial statements included elsewhere in this prospectus). The decrease in student deposits was primarily due to a change in the timing of financial aid disbursements for the University's students. Before the change, financial aid funds were typically disbursed in two installments that generally involved four courses. Such funding was included in student deposits on our consolidated balance sheets until students began subsequent courses. Beginning in July 2024, the University began transitioning to financial aid disbursements by course with students transitioning after they complete their current academic year. Accordingly, student deposits are expected to continue to decrease in future periods as the University's students transition to single course financial aid disbursements.

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*Fiscal year 2023* – Our non-cash items primarily consisted of a $32 million provision for credit losses on accounts receivable, $24 million of depreciation and amortization, $18 million of deferred taxes, $15 million of non-cash lease expense, $12 million of impairment charges and asset disposal losses and $6 million of share-based compensation expense.

The changes in assets and liabilities primarily consisted of a $36 million increase in accounts receivable (excluding provision for credit losses in non-cash items discussed above) primarily due to increased enrollment, a $36 million increase in other assets primarily due to our purchase of certain multi-year insurance policies and a $28 million decrease in operating lease liabilities from rent payments. This was partially offset by increases in accounts payable, deferred revenue and student deposits of $17 million, $10 million and $7 million, respectively.

***Investing cash flows***

The following provides a summary of our investing cash flows during the periods shown below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
| **(in thousands)** | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
|  Purchases of property and equipment | $(22589) | $(15717) | $(16399) | $(16127) |
|  Marketable securities (purchases) sales and maturities, net | (4560) | 2419 | 2641 | 10756 |
|  Acquisition, net of cash acquired |  |  | (1982) |  |
|  Other investing activities | (353) | (3636) | (58) | (198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | $(27502) | $(16934) | $(15798) | $(5569) |

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*Nine months ended May 31, 2025 and 2024 –* Cash used in investing activities was $16 million and $6 million for the nine months ended May 31, 2025 and 2024, respectively. Capital expenditures were the substantial majority of cash used in investing activities during both periods, and substantially all of our capital expenditures represented internal software development. In addition, we paid approximately $2 million, net of cash acquired, to acquire a controlling interest in Empath, Inc. (see further discussion in Note 3 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus).

*Fiscal year 2024 and fiscal year 2023* – Cash used in investing activities was $28 million and $17 million in fiscal years 2024 and 2023, respectively. Capital expenditures were the substantial majority of cash used in investing activities in both fiscal years, and substantially all of our capital expenditures represented internal software development.

***Financing cash flows***

The following provides a summary of our financing cash flows during the periods shown below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Nine Months Ended**<br>**(Unaudited)** | **Nine Months Ended**<br>**(Unaudited)** |
| **(in thousands)** | **August 31,<br>2024** | **August 31,<br>2023** | **May 31,<br>2025** | **May 31,<br>2024** |
|  Capital distributions to limited partners | $(69959) | $— | $(134001) | $(69959) |
|  Capital distributions to noncontrolling interests | (5332) | (1519) | (14735) | (5315) |
|  Payments on borrowings |  | (5000) |  |  |
|  Capital contributions | 98 |  |  | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | $(75193) | $(6519) | $(148736) | $(75176) |

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*Nine months ended May 31, 2025 and 2024 –* Cash used in financing activities was $149 million for the nine months ended May 31, 2025, which represented capital distributions that included $134 million to our limited partners and $15 million to noncontrolling interests. Cash used in financing activities was $75 million for the nine months ended May 31, 2024, which represented capital distributions that included $70 million to our limited partners and $5 million to noncontrolling interests.

*Fiscal year 2024 and fiscal year 2023* – Cash used in financing activities was $75 million in fiscal year 2024, which represented capital distributions that included $70 million to our limited partners and $5 million to noncontrolling interests. Cash used in financing activities in fiscal year 2023 was $7 million, which included $5 million of debt repayment and $2 million of capital distributions to noncontrolling interests.

***Off-Balance Sheet Arrangements***

On May 31, 2023, the University entered into an Asset Purchase Agreement (as amended, the "Purchase Agreement") with Four Three, under which Four Three would acquire substantially all the assets which relate to, or are used in connection with, operating the business of the University for a base purchase price of $550 million. In June 2024, the Purchase Agreement was extended through June 10, 2025. As part of the extension, the University paid a $5 million extension fee to UofI and the exclusivity clause in the Purchase Agreement was removed, providing the University the right to pursue other transactions at its discretion, including this offering. In June 2025, we terminated the Purchase Agreement and paid an incremental fee of $12.2 million to UofI. We are no longer pursuing this transaction and we do not have any further obligations associated with the transaction.

We had a $32 million and $35 million outstanding cash collateralized letter of credit as of May 31, 2025 and August 31, 2024, respectively, which supports a sublease for a facility we have exited. Additionally, our insurers issue surety bonds that are required by various states where we operate, or that are required for other purposes. We are obligated to reimburse our insurers for any surety bonds that are paid. As of both May 31, 2025 and August 31, 2024, the face amount of these surety bonds was less than $1 million.

**Critical Accounting Estimates** 

Our consolidated financial statements have been prepared in accordance with GAAP. The preparation of these consolidated financial statements in accordance with GAAP requires management to make certain estimates, assumptions and judgments that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Although we believe our estimates, assumptions and judgments are reasonable, actual results may differ from our estimates under different assumptions, judgments or conditions.

Our significant accounting policies, which are detailed in Note 1 to our audited consolidated financial statements included elsewhere in this prospectus, describe the significant accounting policies and methods used in the preparation of our consolidated financial statements. Of our significant accounting policies, we consider the following policies to be critical as they involve a higher degree of subjective or complex judgments and assumptions, often as a result of the need to make estimates about the effect of inherently uncertain matters: (i) Revenue Recognition, (ii) Allowance for Credit Losses, and (iii) Income Taxes.

***Revenue Recognition***

We analyze revenue recognition on a portfolio approach based on our determination that University students generally behave similarly (e.g., enrollment agreements all contain similar terms, refund policies are consistent, and all students work with the University to obtain some type of funding as described above). We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each contract separately.

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Under the University's non-term academic delivery model, students generally enroll in a program of study encompassing a series of courses taken consecutively over the length of the program. Each course represents one performance obligation that the University satisfies over time and, accordingly, time elapsed (an output method) is used to recognize revenue evenly over the duration of the course (e.g., daily over five weeks for a five-week course, other than the University's holiday breaks when no related net revenue is recognized). For students who participate in the University's risk-free, three-week program during their first credit-bearing course, the University does not recognize revenue for the risk-free period until students continue beyond the risk-free period, which is when the contract with the student has commercial substance.

The University's refund policy permits students who attend 60% or less of a course to be eligible for a refund for the portion of the course they did not attend. Accordingly, the University ceases revenue recognition for the remainder of a course if a student withdraws prior to the tuition refund period elapsing. We record refunds as a reduction of deferred revenue, and refunds are limited to the balance of deferred revenue at the date that a student withdraws.

Discounts are generally recognized over the period of instruction in the same manner as the related revenue to which the discount relates. Additionally, the University offers certain discount programs which provide students with the opportunity to earn increased tuition discounts as they take certain courses. The University evaluates such programs to determine whether the future discounts represent a material right to the student. If the future discounts represent a material right, we estimate the amount of these future discounts based on historical experience with student persistence and recognize the associated amount when the performance obligation is satisfied, which is either when the student attends applicable future courses or is no longer eligible for the discount. As of May 31, 2025, August 31, 2024 and August 2023, we had approximately $16 million, $10 million and $9 million, respectively, of contract liabilities for discount programs that represent material rights to students.

Refer to Note 1 to our audited consolidated financial statements included elsewhere in this prospectus for additional information on revenue recognition.

***Allowance for Credit Losses***

Our estimated allowance for credit losses is generally based on historical collection experience and write-offs, current student enrollment, the aging of the receivables, and current trends. Accounts receivable are written off once the account is deemed to be uncollectible, which typically occurs after collection efforts have ceased. We believe our allowance for credit losses reflects the amount of receivables that will become uncollectible by considering our most recent collections experience with respect to such receivables, changes in trends and other relevant facts.

We recorded provisions for credit losses of approximately $36 million and $30 million during the nine months ended May 31, 2025 and 2024, respectively, and approximately $41 million and $32 million during fiscal years 2024 and 2023, respectively. Our allowance for doubtful accounts was approximately $46 million, $49 million and $52 million as of May 31, 2025, August 31, 2024 and August 31, 2023, respectively, which approximated 34%, 51% and 55% of gross student receivables as of the respective dates. For the purpose of sensitivity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A ten percent change in our allowance for doubtful accounts as a percentage of gross student receivables as of
August 31, 2024 would have resulted in a pre-tax change in income of approximately $10 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If our bad debt expense were to have changed by one percent of net revenue for fiscal year 2024, we would have
recorded a pre-tax change in income of approximately $10 million.

Refer to Note 1 and Note 4 to our audited consolidated financial statements included elsewhere in this prospectus for additional information on allowance for credit losses.

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***Income Taxes***

We are subject to the income tax laws of the United States, which are complex and subject to differing interpretations. As a result, significant judgments and interpretations are required in determining our provision for income taxes and evaluating our uncertain tax positions.

As of May 31, 2025 and August 31, 2024, we had approximately $31 million and $47 million of net deferred tax assets, respectively. We have not recorded a valuation allowance for substantially all of our deferred tax assets principally based on our recent cumulative pre-tax income. Additionally, we had $27 million of unrecognized tax benefits, excluding interest and penalties, as of both May 31, 2025 and August 31, 2024.

Refer to Note 1 and Note 8 to our audited consolidated financial statements included elsewhere in this prospectus for additional information on income taxes.

**Recent Accounting Pronouncements** 

See Note 1 to our audited consolidated financial statements included elsewhere in this prospectus for recently issued accounting pronouncements adopted in fiscal years 2024 and 2023 or not yet adopted as of the date of this prospectus.

**Quantitative and Qualitative Disclosure About Market Risk** 

We are subject to the impact of interest rate changes and may be subject to changes in the market values of our investments. We invest our excess cash in cash equivalents and marketable securities and earnings from such investments may be adversely affected in the future should interest rates decline. Our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities that have declined in market value due to changes in interest rates. During the nine months ended May 31, 2025, and fiscal year 2024, our interest rate yields were approximately 4% and 5%, respectively, and we earned $8 million and $17 million of interest income, respectively.

We do not currently have material risk associated with interest expense as we did not have any outstanding debt as of May 31, 2025 and August 31, 2024.

**JOBS Act Accounting Election** 

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for an "emerging growth company." We have elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our audited financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Refer to Note 1 to our audited consolidated financial statements included elsewhere in this prospectus for additional information regarding new or revised accounting pronouncements.

We have chosen to rely on the other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an "emerging growth company" we are not required to, among other things, (i) provide an auditor's attestation report on our system of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies; (iii) comply with certain types of new requirements adopted by the PCAOB; and (iv) disclose certain executive compensation-related items, such as the correlation between executive compensation and performance and comparisons of the chief executive officer's compensation to median employee compensation. We may remain an "emerging growth company" until the last day of the fiscal year following the fifth anniversary of the completion of this offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," our annual gross revenue equals or exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an "emerging growth company" prior to the end of such five-year period.

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**BUSINESS** 

**Our Mission** 

To provide access to higher education opportunities that enable students to develop the knowledge and skills necessary to achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities.

**Our Business** 

We are a mission-driven organization operating at the forefront of the rapidly evolving post-secondary education market. As one of the largest online education providers and a pioneer in our field, we benefit from the dynamic interplay between technological innovation, education, employment and economic trends. The demands of the modern workforce are continually shifting, and we are focused on transforming the way individuals achieve their educational and career aspirations while balancing the unique demands of being an adult learner. We are focused on delivering a personalized, career-relevant and affordable education to our students through our flexible learning model, skills-aligned curriculum and accessible tuition costs. We have created purpose-built platforms that leverage an AI-ready data infrastructure and technology stack to enhance the student experience, increase student success and improve the connectivity between students, educators and employers.

The University of Phoenix was founded in 1976 and has been continuously accredited since 1978 by the HLC, an institutional accrediting agency recognized by the U.S. Department of Education. In our nearly five decades of operation, we have served more than 1.1 million alumni (including those who have completed non-degree certificates) and conferred nearly 1.3 million degrees. According to Forbes, we were the university with the highest number of graduates employed at the top 20 Fortune 500 companies as of September 2021.

Our student body consists primarily of working adults seeking to advance their careers. Adult learners represent an attractive and growing sub-segment of the higher education market. However, they face unique challenges that are not addressed by traditional programs designed for 18- to 22-year-olds, including the time constraints and responsibilities of work, community and caring for dependents. As a result, these students can significantly benefit from an education solution tailored to their needs. We are dedicated to these adult learners, and we are constantly evolving the flexible, asynchronous learning models and the robust technology solutions designed to meet their unique needs. We believe we provide a differentiated value proposition to both students and employers. Both inside and outside of the classroom, our purpose is to help our students achieve their educational and career goals and to assist employers in upskilling their employees.

For the fiscal year ended August 31, 2024, the University's Average Total Degreed Enrollment was 78,900, including 64,100 undergraduate and 14,800 graduate students. During the first nine months of fiscal year 2025, Average Total Degreed Enrollment increased to 82,700. See "*Prospectus Summary—Summary Consolidated Financial and Other Data*" for the definition of Average Total Degreed Enrollment. Students either enroll at the University independently or have the option to enroll through one of our more than 2,500 employer relationships. Many of our students receive discounted tuition benefits under programs offered through our employer relationships, which are classified as B2B enrollment. These include students who enroll in the University through employer-provided programs, as well as students who enroll independently but are employees of employers with whom we have an employer relationship. We view B2B enrollments as a significant opportunity for further growth. B2B enrollments represented 13,300 Average Total Degreed Enrollment (20% of the University's Average Total Degreed Enrollment) in fiscal year 2022 and 23,300 Average Total Degreed Enrollment (30% of the University's Average Total Degreed Enrollment) in fiscal year 2024, reflecting a 32% CAGR.

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The University currently offers 72 degree-granting and 33 non-degree certificate programs across a wide range of disciplines. Our degree-granting programs represented approximately 97% of our net revenue for fiscal year 2024 and serve a diverse set of students who are seeking to improve their career opportunities:

Average Total Degreed Enrollment by degree type for fiscal year 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bachelor's: 70%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Master's: 16%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Associate's: 11%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Doctoral: 3%

Degree completions by discipline for fiscal year 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business and IT: 63%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Health Professions: 15%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Social and Behavioral Sciences: 12%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Education: 4%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nursing: 4%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Doctoral Studies: 2%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• General Studies: less than 1%

Of the University's enrollment during fiscal year 2024, subject to data availability for each metric:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 76% are currently employed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 95% of new students are over the age of 22, with an average age of 37;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 64% care for dependents at home;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 61% are first-generation college students;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 62% of students who completed an optional survey identify as members of a minority group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 71% are female.

Our non-degree offerings for students and employers represent the remaining portion of net revenue and are a growing priority for the University. These non-degree offerings include shorter credit-bearing certificates and non-credit professional development courses that provide students with critical skills for career advancement and benefit employers by upskilling their employees.

We are also developing new talent solutions programs for employers, including: (i) Talent Source, a talent-sourcing platform that connects employers with students whose skills profiles align with job postings and (ii) Skillmore, an AI-powered tool that scans an employer's inventory of sought-after skills and designs development pathways to internal job opportunities.

**Our Market Opportunity** 

According to the U.S. Department of Education's NCES, a total of 19.0 million students were enrolled in degree-granting, post-secondary institutions in fall 2023. This market represented $813 billion of revenue during the 2022-2023 school year. Tuition and fees make up $181 billion of this $813 billion market opportunity. Additionally, according to various studies, including the U.S. Census Bureau's 2024 CPS, graduates with a bachelor's degree or an advanced degree, on average, tend to have better career outcomes than persons with only a high school diploma, which drives continuing demand for higher education.

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We believe demand for higher education will remain strong given its personal and economic benefits. Adult, online learners represent a particularly significant and growing segment of this market due to the following factors:

***Adult Learner Market Represents a Significant Opportunity.*** According to the U.S. Census Bureau, as of 2023, 83.8 million adults in the United States aged 25 or older did not have any college-level education. As of the start of the 2023-24 academic year, the working age SCNC population under 65 was comprised of 37.6 million people, an increase of 2.2% from the start of the prior academic year. The Georgetown University Center on Education and the Workforce estimates 72% of jobs in the U.S. will require a post-secondary education and/or training by 2031, and a recent Gallup-Lumina survey indicated adult learner interest in pursuing higher education has been increasing. A 2023 survey by the Society for Human Resource Management indicated that 48% of employers currently offer some form of undergraduate or graduate tuition assistance for their workers. We believe the University is well-positioned to serve this market with our distinctive learning experience tailored to the unique needs of these working adult students.

***Evolving Workforce Drives Market Demand for Skills-Based Education.*** The extensive impact of technology and the transition to a knowledge-based economy are driving transformative shifts in the U.S. workforce. The U.S. Bureau of Labor Statistics projects that from 2023 to 2033, the U.S. labor market will see a net gain of 6.7 million jobs tied to the expansion of new technologies. Similarly, the World Economic Forum predicts that by 2030, 39% of workers will have their jobs disrupted and 59% of workers will require training for new skills. We believe our skills-aligned, career-relevant curriculum, including our growing non-degree offerings, will be critical in ensuring success for future students and our more than 1.1 million alumni. Corporations in the United States spent more than $101 billion on training in 2023, according to Training Magazine's 42nd Annual Training Industry Report. A 2023 survey by the Society for Human Resource Management indicated that 48% of employers currently offer some form of undergraduate or graduate tuition assistance for their workers. We believe these factors provide a significant market opportunity as we expand discussions with employers beyond our degree offerings.

**Our Transformation** 

In February 2017, funds affiliated with Apollo and Vistria acquired our predecessor company with a vision to transform the University into a smaller and more focused institution that would be better positioned to educate

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and re-skill its working adult students*—*the original legacy of founder John Sperling. Since the acquisition, we have strengthened the University in several ways to drive long-term value for all stakeholders:

***Realigned the University's Strategic Direction.*** We completed a comprehensive transformation of our academic course offerings, aligning 100% of our courses in programs open for enrollment to career-relevant skills. We tailored each degree program to facilitate the learning of career-relevant skills sought by employers as determined by programmatic accreditors, employers, advisory councils, government job definitions and numerous other sources*.*** To increase our focus on the University and its mission, we exited non-core programs and divested the other operations of our predecessor company, including several international schools that shared administrative resources with the University. While maintaining our main campus in Phoenix, Arizona, we exited all of our other campuses. Our multi-year transformation efforts to actively increase the focus of the University drove much of the significant enrollment and revenue declines experienced since 2010, which have now stabilized. From fiscal year 2022 to fiscal year 2024, both net revenue and Average Total Degreed Enrollment increased at a 9% CAGR.

***Strengthened Our Academic Offerings.*** We improved learning outcomes by helping our students master career-relevant skills and by selectively integrating adaptive learning into a wide range of courses. We assess our students' skills for ongoing competency, with students earning "skills badges" by demonstrating mastery, and skills badges are granted to students upon the completion of a course or, as applicable, a series of courses. To date, our students have earned more than 800,000 skills badges, demonstrating their mastery of competencies directly applicable to job requirements. We enhanced pathways to degree completion by redesigning our degree programs to permit greater use of transfer credits. We also launched competency-based programs that provide greater flexibility for students with prior relevant experience to accelerate their progress. Continuous innovation of curriculum and teaching methods, including a redesign of our math courses, has made these courses more accessible and applicable to real-world scenarios. Math is often a significant hurdle for adult learners, and these actions reduced the combined withdrawal and fail rates for these courses by 10%. Our efforts to reinvent key aspects of adult learning have received significant external recognition from multiple organizations, including EC-Council and Gartner, highlighting the impact of these initiatives on student success and career preparation.

***Enhanced the Management Team and Harnessed our Deep Talent.*** We hired highly experienced leaders to spearhead this transformation. In addition to appointing Christopher Lynne as President in December 2022, we also hired key personnel across critical business functions such as academics, finance, information technology and marketing.

***Digitized Career Mobility Tools and Invested in Our Technology Platform.*** Over the past five years, we have invested approximately $500 million in technology resources, leveraging AI across the student journey to improve retention, student-facing capabilities, and internal efficiency. We define AI as machine learning models that autonomously learn from continuously-updated data, extending beyond traditional rule-based automation. Over the last decade, we have implemented AI into core processes and refined these models for incremental improvements. Our AI-enabled enterprise platform stack includes certain long-standing uses of AI, including our student engagement monitoring model, which has been operational for eight years and helps identify at-risk students and trigger timely interventions, our AI assistant, which is widely deployed to address student-facing financial aid questions, and AI-based SMS prospect nurturing, which allows us to reduce enrollment advisor load. Further leveraging our mature technology foundation, we have started to develop and deploy certain advanced AI features such as our job-match algorithms, which align students with suitable job openings, our large language model-based phone agent, which provides phone-based complex technical support for our employees, and certain solutions for our B2B customers, which are designed to structure job competencies and optimize hiring workflows.

***Instituted Career Services for Life.*** As part of our investment in student services, we offer career services to all active students and instituted Career Services for Life for all graduates, providing free lifetime access to career services and our suite of digital career tools.

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***Invested in Data-Driven, Responsible Marketing.*** We exited the low-performing affiliate lead generators channel and instead utilize analytics and performance-based media which have improved enrollment conversion. Through organic channels (e.g., search engine optimization), paid channels (e.g., television and paid search) and earned media, we have achieved industry-leading brand awareness and consideration, resulting in consistent enrollment growth and lower per-student acquisition costs over multiple years.

***Improved Operational Efficiency.*** Between 2016 and 2024, we reduced overhead by more than $100 million by rationalizing our operating structure and decommissioning legacy technology systems in favor of a digital-first technology platform with embedded AI / machine learning tools.

***Transformation Resulted in Significant Student Outcome Improvements.*** These actions have significantly strengthened the University's position, leading to material improvements in the following student outcomes:

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| | | |
|:---|:---|:---|
|  | **Before<br>Transformation** | **After<br>Transformation** |
|  ***Higher Student Satisfaction<sup>(1)</sup>*** | 69.8%<br> (February 2017) | 82.3%<br> (May 2025) |
|  ***Improved Student Retention<sup>(2)</sup>*** | 59.7%<br> (2016/2017 cohort) | 71.5%<br> (2023/2024 cohort) |
|  ***Reduced 3-Year Student Loan Default Rates<sup>(3)</sup>*** | 13.3%<br> (2013 cohort) | 8.7%<br> (2018 cohort) |
|  ***Increased 6-Year Graduation Rates<sup>(4)</sup>*** | 25%<br> (2015/2016 cohort) | 37%<br> (2018/2019 cohort) |

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(1) Based on an internally administered satisfaction survey of students and represents the percentage of
students rating a 9 or 10 on a 10-point scale. We surveyed approximately 15,000 students in February 2017 and approximately 21,000 students in May 2025. In the February 2017 survey, students were asked to rate
their likelihood to recommend the University to a colleague, friend or family member who may be interested in attending the University; and in the May 2025 survey, students were asked to rate their likelihood to recommend the University to a friend,
family member, or co-worker who is considering attending a college or university.

(2) Student retention during a cohort year (federal award year from July 1 to June 30) is calculated as (i)
the number of confirmed undergraduate students who both started a degree or non-degree certificate program and posted attendance in a course within such program (whether or not the course is ultimately completed or passed) as of a specified date (as
described below), divided by (ii) the number of confirmed undergraduate students who started such a program, expressed as a percentage. The University offers traditional undergraduate degree and non-degree certificate programs as well as two
different types of undergraduate competency-based education degree programs, identified as competency-based ("CB") degree programs and direct assessment ("DA") degree programs. Each course within a traditional undergraduate
degree or non-degree certificate program is 35 days in length; a student in such a program is considered "retained" if he or she posted attendance in his or her fourth course within 175 days of starting the program. CB courses are taken
in 16-week blocks; a student in a CB program is considered "retained" if he or she posted attendance by the end of the third week of his or her second block of courses in such program. DA courses are taken in 12-week terms; a student in
a DA program is considered "retained" if he or she was in an active enrollment status as of the fifteenth day of his or her second term of such program. For purposes of each type of program, a student is deemed to have "posted
attendance" in a course when the student completes at least one academic-related activity, such as participating in an online discussion on the course website, submitting an assignment or taking a required quiz or exam that is graded. The
University developed its student retention rate formula in 2014 to evaluate and track performance in the University's undergraduate degree programs. In 2019, the University modified the metric to include undergraduate students enrolled in
non-degree certificate programs as well. As a result, the student retention rate for the 2016/2017 cohort includes only students enrolled in undergraduate degree programs, whereas the rate for the 2023/2024

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cohort includes students enrolled in both undergraduate degree and non-degree certificate programs. For comparison, the student retention rate for just undergraduate degree programs for the 2023/2024 cohort was 72.9%. <br>

(3) Based on the U.S. Department of Education's Cohort Default Rate for CDR FY 2013 and CDR FY 2018. Each
cohort is a group of students who first enter into student loan repayment during a federal fiscal year (ending September 30), and the cohort default rate is the percentage of that cohort who default on their payment by the end of the second full
year after such repayment start date. In CDR FY 2013, the University's official cohort default rate was 13.3% and it has decreased or remained flat every year since. For CDR FY 2018 (partially impacted by the COVID-related federal loan
repayment pause which began in 2020), the University's official cohort default rate was 8.7%. The University's official CDR FY 2021 (the most recent available official rate) was 0.0%, principally due to the U.S. Department of
Education's federal loan repayment pause initiated in response to the COVID-19 pandemic, which expired in September 2023. See "  ***—*** *Regulatory Environment*  ***—*** *Regulation of Student Financial Aid Programs*  ***—*** *Student Loan Cohort Default Rates.* "

(4) See definition of graduation rate below.

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The University serves students with multiple risk factors identified by the U.S. Department of Education that affect completion rates. These risk factors include having children or dependents at home, being a single parent, being a first-generation college student, and being a recipient of the Federal Pell grant. On average, students attending the University exhibit several of these risk factors, some of which are not addressed by traditional programs designed for 18- to 22-year-olds. Even while primarily serving these at-risk students, the University's student outcomes compare favorably against other for-profit institutions that are owned by publicly traded companies and have comparable student demographics to the University. The following table shows the most recent publicly available graduation data (defined as the IPEDS Outcome Measures 6-year rate for all undergraduates) for the undergraduate cohort who matriculated at the University and for-profit peer institutions that are owned by publicly traded companies as of the date of this prospectus between July 1, 2015 and June 30, 2016 and completed an undergraduate credential by August 31, 2021. While the graduation rate for the more recent undergraduate cohort is not yet publicly available for our peer institutions, the University evaluated its cohort of undergraduates who matriculated between July 1, 2018 and June 30, 2019 and completed an undergraduate credential by August 31, 2024. Our improvement in retention is reflected in this cohort's graduation rate increase, as compared to the 2015/2016 cohort.

![LOGO](g876348g14m14.jpg)

(1) Represents the average of the 6-year graduation rates of the 2015/2016 cohort for American InterContinental
University System, Capella University, Colorado Technical University, Strayer University and Walden University.

***Strong Financial Performance.*** Our transformation and resulting significant improvement in student outcomes have also produced material improvements in financial results. Our net revenue has increased from $801 million in fiscal year 2022 to $950 million in fiscal year 2024 and our net income has increased from $52 million in fiscal year 2022 to $115 million in fiscal year 2024, which represented a 570 basis point increase in net income margin from 6.4% in fiscal year 2022 to 12.1% in fiscal year 2024. Adjusted EBITDA increased from $142 million in fiscal year 2022 to $229 million in fiscal year 2024, which represented a 640 basis point increase in Adjusted EBITDA Margin from 17.7% in fiscal year 2022 to 24.1% in fiscal year 2024. Our net revenue has increased from $710 million in the first nine months of fiscal year 2024 to $750 million in the first nine months of fiscal year 2025, and our net income has increased from $105 million in the first nine months of fiscal year 2024 to $118 million in the first nine months of fiscal year 2025, which represented a 90 basis point

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increase in net income margin from 14.8% in the first nine months of fiscal year 2024 to 15.7% in the first nine months of fiscal year 2025. Adjusted EBITDA was flat at $187 million in both the first nine months of fiscal year 2024 and the first nine months of fiscal year 2025, which represented a 140 basis point decrease in Adjusted EBITDA Margin from 26.4% in the first nine months of fiscal year 2024 to 25.0% in the first nine months of fiscal year 2025. The decrease in Adjusted EBITDA Margin during the first nine months of fiscal year 2025 compared to the prior year period was principally attributable to a temporary increase in costs during the first nine months of fiscal year 2025 as we address financial aid processing changes following the Department of Education's implementation of an updated financial aid application form and transition to disbursing financial aid by course (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations*"). Additionally, see "*Prospectus Summary*—*Summary Consolidated Financial and Other Data" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures and Reconciliations"* for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of net income to Adjusted EBITDA.

**Our Competitive Strengths** 

We believe we are well-positioned within our market to deliver strong student outcomes and continued stable growth based on the following competitive strengths:

***Personalized Service and Instruction.*** Our differentiated digital delivery capabilities, integrated with our dedicated live support, enable us to offer a highly personalized and flexible learning and service experience to our students. Our flexible, asynchronous, student-centric instructional model is tailored to the unique demands of our working adult students, and we have a proven track record of rapidly testing and implementing new innovations, including adaptive learning models, the launch of competency-based programs, curricular enhancements (e.g., our redesign of required mathematics courses resulting in 10% improvements to student progression), and the creation of courses tailored for mobile devices. Each student has easy access to academic counseling, school-related financial counseling, tutoring resources, technology support, career coaching and career services, with a focus on improving student outcomes.

***Career-Relevant Education.*** Each of our academic offerings is designed with a focus on career-relevance, and we believe we are the only university to have all courses in active degree programs aligned to skills that are demonstrated via authentic assessments that measure a student's attainment of such skills. Our approximately 100 programs are aligned with more than 300 careers, of which more than 90% are careers in growing fields according to the U.S. Bureau of Labor Statistics' Employment Projections (2023–2033). Both our existing offerings and new program pipeline are focused on preparing students for employment opportunities in fields that project higher-than-average job growth such as healthcare, information technology and business. Each course tests for at least three skills that have career-relevant applications in the workforce and each skill is assessed against an employer-informed rubric. Skills badges are granted to students upon the completion of a course, or as applicable, a series of courses, and these badges can be shared via LinkedIn and certain other jobs websites. We have issued more than 800,000 University of Phoenix skills badges to date.

***Affordable and Accessible Tuition.*** We provide personalized education at affordable prices relative to our peers and have not raised our tuition rates since 2018. According to the January 2024 Noel Levitz PSOL survey, 80% of our students stated that tuition paid was a worthwhile investment, which is 10% higher than the PSOL national benchmark of 70%. For the 2023-2024 academic year, our undergraduate degree program annual tuition and fees of $10,912 was below the average annual undergraduate tuition and fees for the 2022-2023 academic year for private, non-profit institutions ($40,700) and private, for-profit institutions ($18,200) and just slightly above the average annual undergraduate in-state tuition and fees for the 2022-2023 academic year for public institutions ($9,800). Additionally, our Tuition Price Guarantee, launched in 2018 and under which a student's tuition price per course is frozen at the tuition rates in effect at his or her enrollment date, gives students certainty of their tuition price throughout the duration of their programs. We also make it easier for students to reduce both their time to graduate and their tuition costs through alternative credits, prior learning assessments and national

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testing programs, with participating students on average receiving $4,845, $4,055 and $2,150 in tuition savings from these measures respectively in fiscal year 2024. Finally, we expanded the number of employer relationships participating in our tuition assistance program, which lowers or even eliminates tuition costs for their employees.

***Large University Scale and Leading Brand.*** We are one of the largest universities in the United States (ranking fifth among public, private for-profit and private non-profit 4-year, 2-year and less-than 2-year universities based on IPEDS enrollment surveys), with Average Total Degreed Enrollment of 78,900 in fiscal year 2024 under a single university brand. The strength and recognition of our brand is demonstrated by our industry-leading social media presence and an aided awareness score and net consideration score exceeding those of our peers in the online education sector. This combination of awareness and consideration drives higher engagement with prospective students, including fourteen million unique annual visitors to our phoenix.edu website.

***Tech-Enabled Platforms with Robust Data Foundation.*** Through our scale and approximately 50 years of experience serving adult learners, we believe the University has created one of the world's largest digital repositories of data on student behaviors. Leveraging our two-petabyte data lake and highly skilled engineers has allowed us to develop several proprietary analytics models to continuously improve coursework development, support at-risk students, customize student outreach strategies, develop student service innovations, and improve our enrollment process. This infrastructure underpins our AI initiatives, consolidating millions of annual interactions (e.g., calls and portal sessions) for near real-time processing. Its stability and extensibility allow us to support both student and staff-facing services and B2B solutions with confidence. Our data lake ingests both structured and unstructured information (e.g., transcribed calls, session replays and website interactions) and streams it in near real-time, providing continuous feedback loops for model refinement. We have implemented a governance process concerning the deployment of AI. We also have policies and processes around data validation, encryption and compliance. These policies and processes help provide a reliable foundation for existing models and for ongoing AI innovation. We believe the scale of our dataset is difficult to replicate and will continue to serve as a valuable resource as we continue to adopt AI and leverage automation throughout the student experience. These underlying platforms have enabled multiple years of significant improvements in student retention, student satisfaction and cost reduction, which we expect to continue.

***Our Career Services for Life Promise.*** We offer career services to our active students and lifetime access to our career services for graduates. This includes student support services, such as career coaching (including job search support, resume building, and preparation for salary negotiation) and resources to support students in building professional relationships, exploring career opportunities, preparing for interviews, and developing a strong personal brand. We believe our suite of digital career tools also provides us with a competitive advantage. Our Career Navigator platform provides digital tools for career and job exploration, a personalized skill profile, job recommendation engine and career planning tools. According to the January 2024 Noel Levitz Priority Students for Online Learners survey, 82% of our students stated that Online Career Services are available at the University, 11% higher than the PSOL national benchmark of 71%.

***Strong Employer Relationships.*** We are well-positioned to continue to grow our presence in the corporate-sponsored training and education market. Our aim is to become a highly integrated skills development provider, and today we have more than 2,500 corporate employer relationships. These represent a valuable opportunity to diversify our student population and net revenue, drive growth and reduce acquisition costs. Our tuition assistance programs enable employers to subsidize or reimburse the cost of their employees' education. These students also generally have higher retention and graduation rates. Since fiscal year 2022, we have increased B2B enrollment at a 32% CAGR, from 13,300 Average Total Degreed Enrollment (20% of the University's Average Total Degreed Enrollment) in fiscal year 2022 to 23,300 Average Total Degreed Enrollment (30% of the University's Average Total Degreed Enrollment) in fiscal year 2024.

***Focus on Regulatory Compliance.*** We have a consistent track record of regulatory compliance and have successfully completed a significant number of ordinary course evaluations, program reviews and compliance

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audits as a financial aid eligible institution. This history has contributed to strong, established relationships with our academic accreditors including the Higher Learning Commission, state regulators and various federal agencies. To uphold our commitment to honesty, integrity and transparency, the University employs a team of approximately 100 full-time professionals solely dedicated to regulatory compliance, student complaint resolutions and quality control. We have also developed robust compliance measures that are often recognized by regulators and shared with other universities as best practices. For example, we record the vast majority of calls with prospective students, where permissible, and review each interaction with a sophisticated, tech-enabled monitoring system to ensure our enrollment advisors are meeting all regulatory requirements. Furthermore, we derive a substantial portion of our revenue from Title IV funds, and like all other proprietary institutions of higher education, our continued eligibility to participate in Title IV programs requires compliance with the so-called "90/10 Rule" under the Higher Education Act. We derived approximately 88% of our cash basis revenue from Title IV funds in our most recent fiscal year. Our focus on regulatory compliance extends to compliance with respect to the 90/10 Rule. See *"Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—The University may lose eligibility to participate in Title IV programs if the percentage of our revenue derived from federal funding sources is too high."*

***Strong Management and Experienced Staff Dedicated to a Student-Centric Culture.*** Our seasoned management team combines broad experience across the education and consumer services landscape with deep, personal connection and commitment to higher education for working adults. Led by Christopher Lynne, the University's President, our senior leadership team benefits from more than 130 years of cumulative professional experience in education. Our long-tenured staff also brings years of experience executing on the University's student-first mission with our 3,400 employees having an average of 11 years with the University. Additionally, our 2,300 faculty members have an average of 29 years of professional work experience and 16 years of teaching experience at the University. Our management team has successfully transformed our business, and we believe they have the vision and experience to successfully drive our future growth and profitability.

**Our Growth Strategy** 

We believe that we are still in the early stages of realizing the benefits of our transformation, and we intend to leverage our competitive strengths by pursuing the following strategies:

***Continue to Improve Student Retention and Outcomes.*** Our students are our focus, and we will continue to develop tools and resources to support their success. This starts at pre-enrollment, with tools to enhance the personalization of the onboarding process and facilitate the use of prior learning and transfer credits to reduce the time and cost of education. We expect to support enrolled students with Next Best Action models, AI agents and strategic human interventions that optimize their learning path alongside AI-based knowledge centers that are responsive to their individual learning and service needs. We expect these solutions to further improve retention and graduation rates, driving sustainable growth in the future.

***Rapidly Evolve the Student and Employer Experience Platforms.*** The University has implemented a highly dynamic product development capability comprising more than 40 agile teams from all functional groups within the University. These teams dynamically assess critical employer and student needs, quickly develop innovative product solutions to address those needs, and then immediately allocate staffing to deliver the most impactful product capabilities. Innovative digital products, such as Savings Explorer and Phoebe Virtual Assistant, aid prospective students in identifying ways to complete their degrees faster and more affordably. Enrolled students are able to leverage resources such as Talent Source, which dynamically connects employers with our students and alumni, and job and course recommendation engines, which recommend relevant jobs and courses to students based on their current skills profile and skills required for their job advancement interests. The resources provided enhance the University's value proposition to both students and employers.

***Expand Employer Relationships.*** Given the University's career-focused programs and learning platform tailored for working adults, we believe we are well-positioned to continue to grow our presence in the corporate-

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sponsored training and education market, which represented 30% of our Average Total Degreed Enrollment in fiscal year 2024. We see significant headroom for growth in this area, given the approximately 18,400 employers in the United States in target industries that employ approximately 100 million employees. We have driven B2B growth through our more than 2,500 employer relationships, businesses that employ approximately 40 million employees, and we have begun to expand discussions with employers beyond our degree offerings to include our comprehensive suite of talent development solutions, including Skillmore, Talent Source and professional development offerings. While the development of our talent development solutions is in the early stages, we expect these solutions to broaden our relationships with key employers.

***Continue to Drive Efficiency and Effectiveness Across Marketing and Enrollment.*** We focus on lowering our cost to acquire new students by using advanced analytics at every stage of the enrollment process, from efficiently generating demand across marketing channels to improving conversion of that demand through increased personalization and automation. Our robust analytical testing approach for driving performance with our media partners and our internally managed marketing channels enable us to identify prospective students who are more prepared for our academic environment. We continue to invest in marketing and advertising optimization, leveraging algorithmic adjustments to improve efficiencies across all marketing channels and increase conversion, while ensuring transparency and clarity for our prospective students throughout the marketing and enrollment process.

***Increase Operating Margins and Operating Cash Flow.*** We believe that successfully executing our growth plan will increase operating margins and cash flows, while supporting further investments in student services. Our fixed cost structure results in meaningful operating leverage, with incremental revenue gains supporting expanded profitability and margin improvement. Key efforts in the near-term include leveraging our scalable, technology-enabled platform to enhance our onboarding practices, increase efficiency of our student support, and increase retention and student satisfaction by reinvesting into student support services and academics.

***Continue to Evolve into Career Mobility Solutions Provider.*** As employers continue to realize that skills are the new currency of talent selection and progression, we are focused on expanding beyond our degree offerings to become an integrated talent development provider. We aim to provide solutions for critical talent productivity, mobility and sourcing needs. We have developed a comprehensive suite of new products including Skillmore, Talent Source, and professional development offerings to assist employers in developing skills pathways to upskill and reskill their employees into critical jobs. Skillmore is a new AI-based skills matching platform that allows employers and employees to understand critical skills needs within the organization and to create personalized learning pathways. In July 2024, we announced the collaborative testing of a skills-based job search platform, Talent Source, designed to match employer skill needs with a talent pool of participating students and alumni. We believe these solutions will increase the value proposition of the University to employers and prospective students, while also increasing students' success and outcomes.

**Competition** 

There are more than 5,000 colleges and universities serving traditional and adult students in the United States. Competition among these institutions is highly fragmented and varies by geography, program offerings, ownership, quality level, and selectivity of admissions. While we are one of the largest universities in the U.S. that predominantly focuses on the distance education market (defined as universities with 90% or more of students enrolled in distance education) according to NCES, no single institution has a significant share of the total post-secondary market. We compete with online programs offered by local, traditional colleges and universities, with other proprietary institutions that offer online programs, and with institutions that offer non-traditional, credit-bearing and noncredit-bearing education programs. As the proportion of traditional colleges and universities providing alternative learning modalities increases, a trend that accelerated during the COVID-19 pandemic, we expect that competition will increase. See "*Risk Factors*—*Risks Related to Our Business—We face intense and increasing competition in the post-secondary education market, which could decrease our market share and create pricing pressures*."

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Some of our competitors have greater financial and non-financial resources than we have and are able to offer programs similar to ours at lower tuition levels. In addition, the ability to bring online programs to market with the aid of sophisticated online program management companies has allowed some traditional institutions that historically may not have offered online education programs to access the online market quickly. While traditional colleges' and universities' use of online program managers, who assist those universities in bringing program offerings online, has lessened in recent years, these programs tend to target working adults, which is the University's main student base. Accordingly, one of our primary competitive advantages has been diminished as a significant and increasing number of traditional institutions offer an increasing array of distance learning and other online education programs, including programs that are offered wholly online and geared towards the needs of working adults. As the proportion of traditional colleges and universities providing alternative learning platforms increases, we will face increased competition from these institutions, including those with highly regarded reputations, the degrees from which may be perceived as more valuable in the workplace.

In addition, in response to student preferences, in the mid-2000s, education providers began introducing new education and operating models focused on reducing costs and time to completion, including competency-based formats, intensive and immersive skills focused bootcamps, other non-degree programs and career-focused educational pathways, tools and services. While, with the advent of AI, the bootcamp market has tapered and its future growth is uncertain, price sensitive consumers and businesses may nevertheless be attracted to these alternative approaches.

The higher education industry continually evolves in response to shifting regulatory and political considerations, technological developments, the changing needs and objectives of students and employers, economic constraints affecting educational institutions and students, price competition, increased focus on affordability and value, the quality of secondary education in the United States and other factors. We believe we are well-positioned within our market to compete for working adult students and that the primary factors on which we successfully compete are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• affordable and accessible education pathways;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• student-centric policies that recognize the need of adult learners to juggle family and work priorities along
with school;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• scale and experience with online learning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brand recognition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• high quality, outcome-oriented and career-relevant degree portfolio and learning pedagogy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• qualified and experienced faculty that bridge the gap between education and career;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• select, active employer relationships that demonstrate the validity of our curriculum for preparing students
for the modern workforce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speed of implementation in service and learning innovations and the ability to employ sophisticated practices
for assessing levels of student learning, allowing us to issue verifiable badges for skills attainment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• data-driven, multi-dimensional approach to personalized student support;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• digital skills tagging that recommends job pathways to students based on skills attained and gathered from
students via robust data repositories and the digital tools of Career Navigator and Job Explorer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• long-standing record of regulatory compliance with robust accreditation portfolio.

**Employees** 

As of May 31, 2025, we had approximately 3,400 non-faculty employees, the substantial majority of whom were employed full-time. We also have approximately 2,300 faculty members as of May 31, 2025, the substantial

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majority of whom are adjunct faculty who have taught in the last twelve months and are eligible to teach future courses. We believe that our employee relations are good and engagement scores are above national benchmarks determined by our engagement survey provider, Microsoft Viva Glint. Microsoft Viva Glint engagement surveys ask respondents to measure how happy they are working at an organization on a 5-point Likert scale, referred to herein as "engagement scores." Microsoft Viva Glint determines the national benchmark by calculating an average of the engagement scores across organizations nationwide that administer Microsoft Viva Glint engagement surveys. The national benchmark as calculated by Microsoft Viva Glint is 74, and our engagement score was 85 as determined in our most recent survey completed in early 2025.

**Accreditation and Jurisdictional Authorizations** 

The University is institutionally accredited by the HLC, which provides, at least in part, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• validation of the quality of the institution as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional assurance to current and potential students that they are receiving a quality educational
experience from an institution that meets accreditation criteria and is engaged in continuous improvement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• qualification to participate in the federal student financial aid programs under Title IV of the Higher
Education Act (in combination with state higher education operating and degree granting authority and multiple other federal requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• qualification for authority to operate in certain states.

Institutional accreditation is widely accepted nationally as the basis for the recognition of earned credit and degrees for academic, employment, and professional licensure purposes, and, in some states, as a component of authorization to operate as a degree-granting institution. The University's most recent reaffirmation of its institutional accreditation with the HLC took place in 2022-2023, and the next reaffirmation will take place in 2032-2033, with a mid-cycle visit in 2027.

Accreditation information for the University and applicable programs is described below:

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| | | |
|:---|:---|:---|
| **Institution/Program** | **Accrediting Body (Year Accredited)<sup>(1)</sup>** | **Status<sup>(1)</sup>** |
| *University of Phoenix* | • The Higher Learning Commission (1978, reaffirmed in 1982, 1987, 1992, 1997, 2002, 2012 and 2022) | • Accreditation term 2023-2033<br> • Next reaffirmation of accreditation 2032-2033, with a mid-cycle visit in 2027 |
| • Business programs | • Accreditation Council for Business Schools and Programs | • Reaffirmation visit expected in 2027 |
| • Bachelor of Science in Nursing | • Commission on Collegiate Nursing Education (2005, 2010 and 2020)<br> • Previously accredited by National League for Nursing Accrediting Commission from 1989 to 2005 | • Accreditation term (baccalaureate degree program) 2020-2030 |
| • Master of Science in Nursing | • Commission on Collegiate Nursing Education (2005, 2010 and 2020)<br> • Previously accredited by National League for Nursing Accrediting Commission from 1996 to 2005 | • Accreditation term 2020-2025<br> • Reaffirmation visit occurred in March 2025. The report will proceed to the Accreditation Review Committee (July 29-August 1, 2025), followed by the CCNE Board of Commissioners review (September 16-19, 2025), with a final report expected in October 2025 |

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| | | |
|:---|:---|:---|
| **Institution/Program** | **Accrediting Body (Year Accredited)<sup>(1)</sup>** | **Status<sup>(1)</sup>** |
| • Doctor of Nursing Practice | • Commission on Collegiate Nursing Education | • Accreditation term effective March 16, 2022 – December 31, 2027. The next evaluation visit is scheduled for spring 2027 |
| • Master of Counseling in Clinical Mental Health (Arizona campuses) | • Council for Accreditation of Counseling and Related Educational Programs ("CACREP") (1996, 2002, 2010, 2012, 2018) | • Reaffirmation visit expected in 2027 |
| • Master of Counseling in Clinical Mental Health (Online) | • CACREP (2025) | • Accreditation term 2025-2033 (graduation of this program with a conferral date of February 6, 2023 or later are considered completing a CACREP-accredited program) |
| • Master of Counseling in Mental Health Counseling (Utah campus) | • CACREP (2001, reaffirmed in 2010, 2012, 2018 and re-affirmed in 2020) | • This program completed orderly closure in June 2023<br> • Utah CACREP accreditation expired in 2024 |
| • Master of Science in Healthcare Administration | • Commission on Accreditation of Healthcare Management (initial accreditation 2019-2021) | • Accreditation term 2023-2029 |
| • The following programs were accredited at the Hawaii Campus: Bachelor of Science in Education/ Elementary Education; Master of Arts in Education with options in Elementary Education / Secondary Education/and Special Education (Hawaii Campus) | • National Council for Accreditation of Teacher Education ("NCATE") following a merger of accreditors, NCATE accreditation is administered by the Council for the Accreditation of Educator Preparation ("CAEP") (2016-2021) | • Hawaii programs completed orderly closure in August 2021<br> • NCATE/CAEP approval expired in December 2021 |
| • The following programs were accredited at the Utah Campus: Bachelor of Science in Education/Elementary Education; Master of Arts in Education with options in Elementary Teacher Education, Secondary Teacher Education and Special Education (Utah Campus) | • National Council for Accreditation of Teacher Education following a merger of accreditors, NCATE accreditation is administered by the Council for the Accreditation of Educator Preparation (2016-2023) | • Utah programs completed orderly closure in June 2023<br> • NCATE/CAEP approval expired in October 2023 |
| • Master of Science in Counseling/School Counseling (Utah Campus) | • National Council for Accreditation of Teacher Education following a merger of accreditors, NCATE accreditation is administered by the Council for the Accreditation of Educator Preparation (2016-2023) |  |
| • Bachelor of Science in Social Work | • Council for Social Work Education Program achieved Candidacy Status in October 2017 | • Initial Accreditation 2021-2029 |

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(1) The referenced years are on a calendar year basis.

In addition to accreditation by independent accrediting bodies, institutions that participate in Title IV programs must be authorized to operate by the appropriate post-secondary regulatory authority in each state

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where the institution has a physical presence as well as each of the other domestic jurisdictions in which it operates. The University operates its single physical campus in Phoenix, Arizona and is authorized by the Arizona State Board for Private Postsecondary Education to operate both its Phoenix campus and offer distance education under SARA. See "—*Regulatory Environment*—*State Regulation*" and "*Risk Factors*—*Risks Related to the Highly Regulated Industry in Which We Operate*— *If we fail to maintain our state authorization, we would lose our ability to participate in Title IV programs*." The University is also registered as an out-of-state institution with the California Bureau for Private Postsecondary Education to offer its distance education programs to California students.

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| | | |
|:---|:---|:---|
| **Jurisdiction** | **Regulatory Agency** | **Status<sup>(1)</sup>** |
| Arizona | • Arizona State Board for Private Postsecondary Education | • Phoenix Campus and Online licenses effective April 1, 2025 – March 31, 2026 |
| California – Online | • California Bureau for Private Postsecondary Education | • Out-of-State Registration effective July 27, 2023 – July 27, 2028 |
| California – Online | • California Commission on Teacher Credentialing | • Current authorization effective through February 2027/2028 |
| NC SARA and AZ SARA | • National Council for State Authorization Reciprocity Agreements<br> • Arizona Council for State Authorization Reciprocity Agreement | • Current authorization effective April 27, 2025 – April 26, 2026<br> • Current authorization effective April 27, 2025 – April 26, 2026 |
| North Carolina | • North Carolina Department of Public Instruction (NCDPI) | • Current authorization effective through March 2027 |

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(1) As of June 11, 2025.

**Financial Aid Programs** 

The principal source of federal student financial aid in the United States is established and governed by Title IV of the Higher Education Act and regulations promulgated thereunder. We refer to the federal student financial aid programs under the Higher Education Act as "Title IV" programs. The U.S. Congress must periodically reauthorize the Higher Education Act and annually determine the funding level for each Title IV program. The most recent reauthorization of the Higher Education Act occurred in 2008 after multiple extensions of the statutory deadline. This reauthorization expired September 30, 2013. Since this expiration, the Higher Education Act has been extended through a series of temporary extensions by Congress so that Title IV student financial aid programs remain authorized and functioning. Congress continues to engage in discussion and activity regarding Higher Education Act reauthorization, but the timing and the terms of any eventual reauthorization cannot be predicted.

Independent of the ongoing legislative efforts aimed at reauthorization of the Higher Education Act, the U.S. Congress recently enacted amendments to the Higher Education Act as part of its federal budget reconciliation process when President Trump signed the OBBB into law on July 4, 2025. The OBBB's amendments to the Higher Education Act, which generally take effect in July 2026, include provisions that limit or reduce the amount of annual and lifetime federal student aid funding that may be available to some higher education students. For example, the amendments eliminate the federal Grad PLUS loan program for graduate and professional students, establish a lifetime maximum aggregate Title IV student borrowing limit of $257,500 (with exceptions for certain loans made to the student as a parent borrower on behalf of a dependent student), and reduce loan limits for parent borrowers. The recent amendments also include provisions that create new accountability requirements by conditioning the eligibility of programs upon compliance with benchmarks that compare former students' median earnings after completion to the median earnings of working adults with lesser

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credentials. The new OBBB accountability and program eligibility standards require that individual programs (other than undergraduate certificate programs) will lose federal direct loan eligibility if, in two out of three consecutive years, the median earnings (as determined by the Department of Education) of the program's student cohort who received Title IV funds and graduated four years prior falls below the median earnings of working adults aged 25 to 34 who are not enrolled in an institute of higher education and who have only a high school diploma (for undergraduate programs) or only a bachelor's degree (for graduate and professional programs). The details of this new earnings-based eligibility requirement are complex, and it is anticipated that the Department of Education will publish implementing regulations in due course after negotiated rulemaking (see "*Regulatory Environment—Regulation of Student Financial Aid Programs—Recent Department of Education Rulemaking Initiatives*").

The recent amendments also reduce the number of federal student loan repayment programs available to borrowers for loans issued on or after July 2026, revise the repayment terms that will be available to such borrowers, will require certain borrowers on income-contingent plans to transition to a different plan by July 2028, and will impose new restrictions on the availability of loan deferment and forbearance in July 2027.

The amendments also include provisions that delay the implementation of certain of the U.S. Department of Education's most recently promulgated loan discharge regulations by revoking the applicability of such regulations to any loans first originated before July 1, 2035. See "*Regulatory Environment—Regulation of Student Financial Aid Programs—Borrower Defense to Repayment*" and "*—Closed School Loan Discharge*."

Some Title IV programs award financial aid on the basis of financial need, generally defined as the difference between the cost of attending an educational institution and the amount the student and/or the student's family, as the case may be, can reasonably be expected to contribute to that cost. The amount of financial aid awarded to a student each academic year is based on many factors, including, but not limited to, the student's program of study, grade level, Title IV annual loan limits, prior aid received, and financial need. All recipients of Title IV program funds must maintain satisfactory academic progress within the guidelines published by the Department of Education to remain eligible. See "*Risk Factors*—*Risks Related to the Highly Regulated Industry in Which We Operate*—*Further action by Congress to revise the laws governing federal student financial aid programs, including changes applicable only to proprietary educational institutions, could reduce our enrollment and revenue, and increase our costs of operation*."

In addition to Title IV programs, qualifying U.S. active military, veterans, and their family members are eligible for federal student aid from various Department of Defense and Department of Veterans Affairs programs. We refer to the financial aid programs administered by these Departments as "military benefit" programs.

During fiscal year 2024, approximately 88% of the University's cash basis revenue for eligible tuition and fees was derived from the receipt of federal program funds, as calculated under the 90/10 Rule described in *"—Regulatory Environment—Regulation of Student Financial Aid Programs—90/10 Rule*." The majority of these federal program funds are comprised of Title IV funds, specifically, federal student loans and Pell Grants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Student loans currently are the most significant component of Title IV program funds and are administered
through the Federal Direct Loan Program, which includes the Direct Subsidized Loan Program, the Direct Unsubsidized Loan Program, and the Direct PLUS Loan Program. Direct Subsidized and Direct Unsubsidized loans are not based on creditworthiness and
are subject to annual and aggregate loan limits based on the student's grade level and other factors. Direct Subsidized loans are available for undergraduate students only and are based on the statutory calculation of student need. Direct
Unsubsidized loans are not based on student need. Direct PLUS loans are available to parents of dependent undergraduate students and eligibility is based in part on creditworthiness. The Grad PLUS loan program was formerly available to graduate and
professional students but will be eliminated effective July 1, 2026, subject to certain limited exceptions, by the amendments to the Higher

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Education Act recently enacted into law as part of the budget reconciliation legislation. During fiscal year 2024, student loans (including Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans) represented approximately 70% of the gross Title IV program funds received by the University. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Pell Grants are awarded based on financial need and only to eligible undergraduate students who have
not earned a bachelor's or professional degree. Unlike loans, Pell Grants do not have to be repaid. During fiscal year 2024, Pell Grants represented approximately 30% of the gross Title IV program funds received by the University.

The remaining funding for tuition and other fees paid by our students primarily consists of military benefit programs, tuition assistance from employers and personal funds.

**Regulatory Environment** 

We are subject to extensive regulatory requirements imposed by a wide range of federal and state agencies, as well as by institutional and programmatic accreditors. These regulatory requirements cover the vast majority of our operations, including our educational programs, facilities, instructional and administrative staff, administrative procedures, marketing, recruiting, financial operations and financial condition. These regulatory requirements also affect our ability to acquire, expand or open additional institutions or campuses, to revise or expand our educational programs, and to change our corporate structure and ownership. The approvals granted by agencies and accreditors permit us to operate and to participate in a variety of government-sponsored financial aid programs that assist students in paying for their education. The most significant of these are the Title IV federal student aid programs administered by Department of Education pursuant to the Higher Education Act. Generally, to participate in Title IV programs, an institution must be licensed or otherwise legally authorized to operate in the state where it is physically located, be accredited by an accreditor recognized by Department of Education, be certified as an eligible institution by the Department of Education, offer at least one eligible program of education, and comply with other statutory and regulatory requirements. Executive actions and executive orders, as well as any tandem regulatory changes, implemented by the new administration and its appointees could turn out to be favorable to our industry. For example, in April 2025, the new administration signed a memorandum directing executive agencies to rescind regulations that are unlawful under recent Supreme Court decisions, which could result in certain agencies overturning one or more regulations to which we are currently subject. However, these executive actions and executive orders, and related regulatory changes, also could instead adversely impact our industry, including from an administrative perspective if reductions in employee headcount and funding at the Department of Education and other applicable agencies result in slower processing of Title IV matters or other applicable functions that directly or indirectly impact our operations and business.

In addition to governance by the Department of Education, the HLC, state agencies and programmatic accreditors, there has been substantial focus during the past decade by members of the U.S. Congress and other federal agencies, including the Department of Education and its Office of Inspector General, the Consumer Financial Protection Bureau and the FTC, as well as state attorneys general, on the role that proprietary educational institutions play in higher education. Congressional hearings, rulemaking initiatives, and other regulatory oversight activities have focused upon various aspects of the education industry, and reports have been issued that are highly critical of proprietary institutions and include a number of recommendations to be considered by Congress in connection with the reauthorization of the Higher Education Act. A group of influential U.S. senators has strongly and repeatedly encouraged the Departments of Education, Defense and Veterans Affairs to further regulate, limit or terminate the participation of proprietary educational institutions, including the University, in existing federal student aid and tuition assistance programs.

We expect that the regulatory scrutiny of our industry will continue to present risks and challenges for our business. We have summarized below the most significant regulatory requirements applicable to our operations and recent material activity in the regulatory environment affecting our business. However, the current

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legislative, regulatory and political environment is dynamic and unpredictable, and significant changes to the applicable statutes, regulations, guidance, interpretations, and regulatory oversight policies are likely to occur. Changes in or new interpretations of applicable laws, rules, or regulations, or our failure to maintain or renew any required regulatory approvals, accreditations, or state authorizations, could have a material adverse effect on our eligibility to participate in Title IV programs, accreditation, authorization to operate in various states, permissible activities, and financial results.

For more information about the risks associated with the regulatory environment in which we operate, see "*Risk Factors*—*Risks Related to the Highly Regulated Industry in Which We Operate*."

***State Regulation***

To operate and offer postsecondary programs, and to be certified to participate in Title IV programs, we must be authorized to operate by the appropriate post-secondary regulatory authority in each state where we have a physical presence. To offer distance education programs in any given jurisdiction, we also must have state authorization, whether individually or through a reciprocity agreement. Since 2014, the University has been an approved, participating institution in SARA, which enables it to enroll students in distance education programs in each SARA member state and jurisdiction. SARA is a voluntary agreement among 49 member states (all but California), the District of Columbia, Puerto Rico, and the U.S. Virgin Islands that establishes standards for interstate offering of post-secondary distance education. When states, districts and U.S. territories join SARA, their participating degree-granting and accredited institutions are authorized to provide their approved distance education programs through reciprocity to students in other SARA member states. SARA only provides approval to offer exclusively distance education programs in other SARA member states. Institutions that have a "physical presence" in any particular jurisdiction are required to obtain individual authorization in that jurisdiction. The University operates its physical campus in Phoenix, Arizona and is authorized by Arizona for both its Phoenix campus and as the home state for online authorization under SARA. The University is also registered as an out-of-state institution with the California Bureau for Private Postsecondary Education to offer its distance education programs to California students.

Substantially all of the University's enrolled students attend online through authorization under SARA and its policies, and pursuant to the rules, regulations, and complaint procedures of Arizona, or through direct authorization by the State of California. Thus, whether through direct authorization from states, or through participation in the SARA compact, the University is authorized to offer its educational programs at its physical location and online and must continue to maintain such authorization to effectively operate its business.

Under the Department of Education's current state authorization rules, adopted in 2020, institutions offering post-secondary distance education to students located in states other than where the institution is located must meet the state requirements to offer distance education to residents of that state for Title IV eligibility. The rules also provide that a state reciprocity agreement, like SARA, is an acceptable means by which those states may grant that authority. The 2020 rules also expanded the required disclosures to current and prospective students regarding whether programs leading to professional licensure or certification meet their state's licensing requirements. Moreover, for every jurisdiction in which institutions operate, institutions are required to provide a direct written disclosure to students stating whether or not the professional licensure or certification program meets state licensure requirements or whether the institution has made no such determination.

Recently, the Department of Education, assisted by some state attorneys general and consumer advocates, attempted to address perceived areas of consumer protection concerns, by proposing rules that would have essentially eliminated the full reciprocity that SARA provides to institutions by permitting states to enforce their specific education laws and requirements against institutions that are authorized in that state through a reciprocity agreement. Another controversial proposal was the "Rule of 500," which was a proposed regulation that would have removed SARA as a state authorization option for institutions that enrolled more than 500 students in distance education programs in any given state, requiring those institutions to obtain individual state

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authorizations in those jurisdictions. These rules never reached consensus and in December 2024, the Department of Education terminated its proposals. While the 2024 negotiated rulemaking process did not result in any of these changes to the state authorization of distance education, this area remains one of interest and concern by consumer advocates, state attorneys general, and the Department of Education and other regulatory efforts on state authorization issues may be brought in the future.

In addition to being subject to ongoing changes to state authorization requirements in Title IV federal regulations, SARA began a policy modification process in January 2023 and accepted proposals to modify, add, or remove policies within the SARA policy manual. The 2023 initial SARA policy proposal process yielded more than 60 proposals that went through a process of review, public comment, and eventual action by the four Regional Education Compacts and the SARA board. Ultimately, five proposals were passed unanimously by the Regional Education Compacts and approved by the SARA board. One significant policy requires participating institutions to disclose to their home state any adverse action against the institution and any investigation by an oversight entity related to the institution's academic quality, financial stability, student consumer protection policies or practices, or compliance with any state or federal requirement. The 2024 SARA policy proposal process included 50 proposals that resulted in 10 policies being ultimately approved by the SARA board. The approved policies included changes to the requirements for resolution of student complaints, loss of institutional eligibility, changes to provisional status, and aligning licensing program disclosures. Such changes went into effect beginning in January 2025. The 2025 SARA policy proposal process is now underway and expected to again yield more changes and refinements to the SARA policy manual which will apply to the University as a participating institution.

The University will continue to be subject to changes in state authorization from both the Department of Education, as well as SARA while it maintains its participation. Ongoing compliance with all requirements for state authorization from both of these entities is critical to the University. If the University fails to comply with the requirements to participate in SARA or other state regulatory requirements, including state authorization requirements from the Department of Education, the University could lose its ability to participate in SARA or may be subject to the loss of state licensure or authorization to provide distance education, which could have a material adverse effect on the University.

***State Professional Licensure***

Many states have specific requirements that an individual must satisfy in order to be licensed as a professional in specified fields, including fields such as nursing, education, counseling, and social work. These requirements vary by state and by field. A student's success in obtaining licensure following graduation typically depends on several factors, including the background and qualifications of the individual graduate, whether the institution and the program were approved by the state in which the graduate seeks licensure, or by a professional association; whether the program from which the student graduated meets all requirements for professional licensure in that state; whether the institution and the program are accredited and, if so, by what accrediting commissions; and whether the institution's degrees are recognized by other states in which a student may seek to work. Many states also require that graduates pass state and/or national examinations as a prerequisite to becoming certified in certain fields, such as nursing and teaching. Many states will certify individuals if they have already been certified in another state. The University's professional licensing programs must meet all specific state requirements for licensure in any state where the program is offered so that graduates of these programs may pursue licensure in their state.

***Accreditation***

Accreditation is a private, non-governmental process for evaluating the quality of an educational institution and its programs in areas including student performance, governance, integrity, educational quality, faculty, physical resources, administrative capability and resources, and financial stability. To be recognized by the Department of Education, an accrediting commission must adopt specific standards for its review of educational

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institutions, conduct peer-review evaluations of institutions, and publicly designate those institutions that meet its criteria. An accredited school is subject to periodic review by its accrediting commission to determine whether it continues to meet the performance, integrity and quality required for accreditation.

We have been institutionally accredited by the HLC since 1978, most recently obtaining reaccreditation for the ten-year period through 2032-33. The HLC is an accrediting agency recognized by the Secretary of Education and accredits entire institutions of higher education. Institutional accreditation by a recognized accreditation agency is one of the prerequisites for an institution of higher education to be eligible to disburse Title IV aid to students. Institutional accreditation is widely accepted nationally as the basis for the recognition of earned credit and degrees for academic purposes, employment, professional licensure and, in some states, as a component of authorization to operate as a degree-granting institution.

In addition to institutional accreditation, programmatic accreditation may be required for particular educational programs. Programmatic accreditors review specialized and professional programs in a range of fields and disciplines within an institution to ensure the public that an academic program has undergone a rigorous review process and been found to meet high standards for educational quality. Such programs are required to meet the standards of their programmatic accreditor. We hold several programmatic accreditations, including for nursing, education, counseling, and social work, and we must periodically renew these accreditations by completing a comprehensive programmatic accreditation renewal process. See "*—Accreditation and Jurisdictional Authorizations*" for a listing of the institutional, programmatic, and specialized accreditations we hold.

***Regulation of Student Financial Aid Programs***

To be eligible to participate in Title IV programs, an institution must comply with specific requirements contained in the Higher Education Act and the regulations issued thereunder by the Department of Education. The substantial amount of federal funds disbursed to schools through Title IV programs, the large number of students and institutions participating in these programs and allegations of fraud and abuse by certain for-profit educational institutions have caused Congress to require the Department of Education to exercise considerable regulatory oversight over for-profit educational institutions. As a result, for-profit educational institutions, including ours, are subject to extensive oversight and review. Because the Department of Education periodically revises its regulations and changes its interpretations of existing laws and regulations, we cannot predict with certainty how the Title IV program requirements will be applied in all circumstances.

If we fail to comply with the regulatory standards governing Title IV programs, the Department of Education could impose one or more sanctions, including requiring us to repay Title IV program funds, requiring us to post a letter of credit in favor of the Department of Education as a condition for continued Title IV certification, taking emergency action against us, initiating proceedings to impose a fine or to limit, suspend or terminate our participation in Title IV programs, delaying or denying a future application for Title IV recertification, imposing restrictions on our participation in Title IV programs, or referring the matter for civil or criminal prosecution See "Risk Factors—*If the Department of Education were to limit, suspend, or terminate our eligibility or certification to participate in the Title IV programs or if it were to choose not to renew our certification in the future, our students could lose their access to Title IV program funds, our participation in Title IV programs would be restricted or terminated, or we could be required to accept significant limitations as a condition of our continued participation in Title IV programs."* If such sanctions or proceedings were imposed against us and resulted in a substantial curtailment or termination of our participation in Title IV programs, our enrollments, revenue and results of operations could be materially and adversely affected. In addition to the actions that may be brought against us as a result of our participation in Title IV programs, we are also subject to complaints and lawsuits relating to regulatory compliance brought not only by regulatory agencies, but also by other government agencies and third parties, such as current or former students or employees and other members of the public.

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Significant aspects of the regulation of Title IV programs include the following:

*Eligibility and Certification Procedures.* The Higher Education Act specifies the manner in which the Department of Education reviews institutions for eligibility and certification to participate in Title IV programs. Every educational institution involved in Title IV programs must be certified to participate and is required to periodically renew this certification, which is granted in a PPA between the Department of Education and the institution. Such recertification generally is required at least every six years, but may be required earlier, including when an institution undergoes a change in control. An institution may also come under the Department of Education's review when it expands its activities in certain ways, such as opening an additional location, adding a new educational program or modifying the academic credentials it offers. Certification can be granted on a full or provisional basis. Moreover, in instances where the Department of Education is reviewing an application for renewal but does not complete the review by the stated date of expiration, certification may be continued on a month-to-month basis until the review is complete.

The Department of Education may place an institution on provisional certification status if it finds that the institution does not fully satisfy all of the eligibility and certification standards and in certain other circumstances, such as when an institution is certified for the first time or undergoes a change in control. During the period of provisional certification, the institution must comply with any additional conditions included in the institution's PPA with the Department of Education and typically is required to obtain prior Department of Education approval to add an educational program or make any other significant change. In addition, the Department of Education may more closely review an institution that is provisionally certified if it applies for recertification or approval to open a new location, add an educational program, acquire another institution or make any other significant change. If the Department of Education determines that a provisionally certified institution is unable to meet its responsibilities under its PPA, it may seek to revoke the institution's certification to participate in Title IV programs without advance notice or opportunity for the institution to challenge the action. In the case of month-to-month certification, the Department of Education may allow the institution's certification to expire at the end of any month by denying recertification without advance notice, and without any formal procedure for review of such action. Students attending provisionally certified institutions and students attending institutions that are certified on a month-to-month basis remain eligible to receive Title IV program funds, so long as certification remains in place.

New federal regulations relating to certification and imposing additional requirements in PPAs may pose challenges to the University and increase the risk of regulatory noncompliance and a finding by the Department of Education that the University has not or cannot fully satisfy all required eligibility and certification standards. The new regulations, which became effective July 1, 2024, expand the grounds for placing an institution on provisional certification and identify new potential conditions on provisionally certified institutions. The regulations further added new requirements to an institution's PPA including, among other things, restrictions on student transcript withholding and a prohibition on institutional policies and procedures that induce students to limit their amount of federal student aid. The regulations also require that the PPA be signed by entities with direct or indirect ownership of the institution and the power to exercise control over the institution, and require such co-signatories to assume liability for financial losses to the federal government related to the institution's administration of the Title IV programs. The entities required to become co-signatories include, but are not limited to, (i) entities with at least 50% control over an institution through direct or indirect ownership, by voting rights or by its right to appoint board members to an institution or any other entity, whether by itself or in combination with other entities or natural persons with which it is affiliated or related, or pursuant to a proxy or voting or similar agreement; (ii) entities with the power to block significant actions of an institution; (iii) entities that are the 100% direct or indirect interest holder of an institution; and (iv) certain entities that are required to submit financial statements to the Department of Education in connection with an institution. While the rules may be revised and the scope and manner of their implementation may vary or change, in the event that the University were unable to comply with the Department of Education's regulations governing PPAs, this could have a material adverse effect on our business and the Department of Education could impose letter of credit requirements or take other adverse actions against the University up to and including termination of the University's Title IV program participation.

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In August 2025, the Department of Education renewed the University's Title IV PPA and approved the recertification of the University's continued participation in the Title IV programs through June 30, 2031. However, if the Department of Education were to initiate future proceedings to limit, suspend, or terminate the University's eligibility or certification to participate in the Title IV programs, or if it were to choose not to renew our certification in the future, such actions could cause the participation by the University in the Title IV programs to be interrupted, limited, or terminated, and could cause our students to lose access to Title IV program funds.

*Recent Department of Education Rulemaking Initiatives.* In recent years, the Department of Education has engaged in rulemaking discussions intended to develop new regulations focused on various topics. After the Department of Education convenes a committee for the conduct of negotiated rulemaking, the negotiated rulemaking process typically culminates in the publication by the Department of Education of proposed regulations followed by a period for public comment, after which the Department of Education responds and publishes final regulations. Under the new administration, the Department of Education has instituted a negotiated rulemaking process related to public service loan forgiveness regulations, and the Department of Education published a notice on July 25, 2025 of its intention to establish two negotiated rulemaking committees to prepare regulations that will implement the recent amendments to the Higher Education Act under the OBBB. One committee will consider changes to the federal student loan programs and the other committee will consider changes to institutional and programmatic accountability, the Pell Grant Program, and other changes to the Title IV programs. The Department of Education may also initiate additional rulemaking proceedings. We cannot predict the content of any new regulations that may emerge from the negotiated rulemaking process or the potential impact of such regulations on the University. See *"—Borrower Defense to Repayment," "—State Regulation" and "—Gainful Employment and Financial Value Transparency" for additional information regarding recent rulemaking.*

*Borrower Defense to Repayment.* Under the Higher Education Act, the Department of Education's regulations specify acts or omissions of a school that a student loan borrower may assert as a defense to repayment of a federal student loan (referred to as a BDR claim) and thereby seek to obtain a discharge and refund of such loan. Under the BDR Rules, the Department of Education has indicated that it believes it may also assert such a claim on behalf of a student borrower. Additionally, the Department of Education may initiate a recoupment proceeding against a school to collect loan amounts that are discharged or refunded as the result of BDR claims. The BDR Rules have been significantly revised three times in recent years. Currently, a complex framework of rules applies different loan relief and recoupment standards and procedures based upon the date that the loan in question was first disbursed.

The Department of Education's first iteration of BDR Rules, effective July 1, 1995 (the "1995 Rule"), permits student borrowers to assert a school's misconduct as a defense to repayment of student loans, and if the borrower's claim is successful, permits the Department of Education to initiate proceedings to recoup the discharged funds from the school. Under the 1995 Rule, a borrower defense must be based on an act or omission of the school that would give rise to a cause of action against the school under applicable state law. The 1995 Rule currently applies to borrower defenses with respect to federal student loans first disbursed before July 1, 2017.

Following the high-profile closing of a large proprietary school in 2015, the Department of Education promulgated new regulations amending the BDR standards and procedures, with an original scheduled effective date of July 1, 2017, but which was subsequently delayed in taking effect by litigation until 2019 (the "2017 Rule"). The "2017 Rule" expanded the grounds for borrower defenses, including: (i) certain qualifying non-default, contested judgments against the school; (ii) a school's breach of contract; and (iii) a school's substantial misrepresentation. The 2017 Rule applies to loans first disbursed on or after July 1, 2017, and before July 1, 2020. The 2017 Rule also set forth procedures for resolving borrower defenses on a group basis, in the event the Department of Education identifies a group of borrowers sharing common facts and claims, including, in certain circumstances, with respect to borrower who have not submitted a BDR application. The 2017 Rule

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again permits the Department of Education to initiate proceedings to seek to recoup the discharged amounts from the school.

Additionally, regulations promulgated in connection with the 2017 Rule introduced a "financial responsibility" trigger in which an institution with certain BDR liability may be required to post a letter of credit or other financial protection to the Department of Education. See "*-—Standards of Financial Responsibility.*"

Amid litigation on the 2017 Rule, the Department of Education convened a new negotiated rulemaking committee and published final regulations further revising the BDR Rules, effective July 1, 2020 (the "2020 Rule"). Under the 2020 Rule, which applies to loans first disbursed on or after July 1, 2020, a borrower may assert a borrower defense to repayment by establishing by a preponderance of the evidence that: (i) the school made a misrepresentation of a material fact upon which the borrower reasonably relied upon in deciding to obtain a loan and that directly and clearly relates to enrollment or continuing enrollment at the school or the provision of educational services for which the loan was made; and (ii) that the borrower was financially harmed by the misrepresentation. Additionally, the 2020 Rule limits the borrower's qualifying financial harm, including that it cannot be predominantly due to intervening economic or labor market conditions, and that it cannot arise from the borrower's voluntary decision to work less or change occupations. As with the 1995 and 2017 Rules, the 2020 Rule permits the Department of Education to initiate proceedings to seek to recoup the discharged amounts from the school. Additional financial responsibility provisions were promulgated in connection with the 2020 Rule revising triggering events requiring schools to post a letter of credit or other financial protection to the Department of Education to insure against BDR and other liabilities. See "*—Standards of Financial Responsibility.*"

The Department of Education's most recent iteration of BDR Rules, scheduled to take effect July 1, 2023 (the "2023 Rule"), is now enjoined by litigation. Among other things, the 2023 Rule would (i) apply a single standard and process to all future and pending borrower defense applications as of July 1, 2023, instead of the various standards based on the date of loan disbursement; (ii) further define the grounds of school misconduct giving rise to a borrower defense; (iii) establish a reconsideration process for borrowers whose defenses to repayment are not initially approved for a full loan discharge; (iv) govern the formation and adjudication of borrower group defenses based on common facts, including group defenses filed by "third-party requestors"; and (v) provide a new timeline for adjudication of group and individual borrower defenses. The 2023 Rule also would apply a rebuttable presumption that each member of a borrower group knew about and reasonably relied upon the school's alleged wrongdoing. The 2023 Rule would abolish limitations periods for asserting borrower defenses and would permit the Department of Education to seek recoupment of funds from institutions for discharged and refunded loans through an expedited program review process. Further, recent amendments to the Higher Education Act, enacted July 4, 2025, as part of the OBBB, delay the implementation of the 2023 Rule by revoking the applicability of the 2023 Rule to any loans first originated before July 1, 2035.

In addition to this legislative delay to the applicability of the 2023 Rule, the litigation in connection with which the 2023 Rule is currently enjoined, filed February 28, 2023, challenges the legality of several aspects of the 2023 Rule and the Department of Education's general borrower-defense-to-repayment authority, including whether the Department of Education can (i) expand a borrower's "defense to repayment" into an affirmative "claim"; (ii) adjudicate borrower defense and recoupment claims against schools; and (iii) apply "rebuttable presumptions" and utilize a group claims process. On April 4, 2024, the U.S. Court of Appeals for the Fifth Circuit ordered that the effective date of the 2023 Rule be stayed pending final judgment in the case. *Career Colleges and Schools of Texas v. U.S. Department of Education*, 23-50491 (5th Cir. 2024). On January 10, 2025, the U.S. Supreme Court granted the Department of Education's request to review the Fifth Circuit's decision. However, on January 24, 2025, the Department of Education asked the Supreme Court to hold the briefing schedule in abeyance while the Department of Education "reassess[es] the basis for and soundness of the Department's borrower defense regulations." The Supreme Court granted this request on February 6, 2025. On May 29, 2025, the Department of Education filed a motion asking the Supreme Court to resume briefing in the case. The motion stated that the Department of Education has decided to adhere to its position defending the

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Department of Education's statutory authority permitting the assessment of borrower defenses before default, in administrative proceedings, and on a group basis. The Department of Education emphasized the "exceptional and lasting importance" of the issue and stated that if the Supreme Court were to reverse the Fifth Circuit, the Department of Education would promulgate a new BDR Rule to replace the 2023 Rule. On June 23, 2025 the Supreme Court granted the Department of Education's request to resume briefing. However, on August 8, 2025, the Department of Education filed a letter (along with a Joint Stipulation to Dismiss) asking the Supreme Court to dismiss the appeal, citing the effect of the OBBB on the 2023 Rule, and the appeal was dismissed on August 11, 2025. The litigation remains pending, and the Department of Education's complete position on those legal issues is unknown at present. In addition to the delay imposed by the OBBB on the implementation of the 2023 Rule, the 2023 Rule remains stayed under the Fifth Circuit's April 2024 ruling pending the conclusion of the district court case. As a result, the 2023 Rule is not in effect, and the 1995, 2017, and 2020 Rules remain in effect and apply different substantive standards and procedures depending on the disbursement date of the loan in question. Furthermore, the borrower defense regulations may undergo further changes in the future, and we cannot predict the content of any such revisions.

In a different lawsuit, a California federal court approved a settlement between the Department of Education and a class of student loan borrowers, on November 16, 2022. *Sweet v. Cardona*, No. 3:19-cv-3674 (N.D. Cal.) ("*Sweet*"). Under the *Sweet* settlement, the Department of Education agreed to grant automatic loan discharge and refund relief on borrower defense applications pending as of June 22, 2022, that were filed with respect to about 150 institutions that were identified in a list attached to the settlement agreement, which list included the University. The Department also agreed to an expedited resolution process for borrower defense applications filed between June 22, 2022, and November 15, 2022, under the 2017 Rule, regardless of the date of disbursement of the underlying loans. In the course of the *Sweet* litigation, various court rulings have referenced the Department of Education's assurances that it will not rely on the automatic discharges under the *Sweet* settlement as the basis upon which to recoup such discharged loans from institutions. However, litigation remains pending in *Sweet*, and those court rulings may be subject to appeal or further challenge. In addition, we have no assurances, however, regarding the extent to which the Department of Education will agree with or adhere to this position in the future.

Beginning in June 2020 and continuing until April 2024, the University received approximately 48,000 borrower defense applications from the Department of Education as part of the fact-finding process by which the Department of Education notifies institutions regarding BDR claims received from student borrowers and provides the institution an opportunity to respond. The University provided substantive, timely responses related to each such application and other requested evidence to the Department of Education. While the University believes it has both factual and procedural defenses to the claims made in the applications regardless of applicable BDR Rules, we cannot predict how the Department of Education will evaluate the evidence and adjudicate each claim. Additionally, approximately one-third of the applications received by the University were dated on or before June 22, 2022, which would subject the underlying loans associated with those BDR claims to automatic discharge under the terms of the *Sweet* settlement and potentially prevent such claims from serving as the basis of a recoupment action by the Department of Education against us. The remaining applications received by the University were dated between June 23, 2022, and November 15, 2022, rendering them subject to the *Sweet* settlement's expedited resolution procedures discussed above. The Department of Education has not identified the total number of BDR claims that are related to our institution, nor identified which claims are covered by and subject to the *Sweet* settlement.

In September 2023, the Department of Education announced that it had approved more than 1,200 BDR claims and discharged nearly $37 million federal student loans from borrowers who made claims regarding the University's "Let's Get to Work" ad campaign, which ran from 2012 to 2014. The Department of Education announced it had determined that the University substantially misrepresented its relationships with outside companies in the ad campaign. The Department of Education further indicated its intent to commence a recoupment effort against the University for approximately $37 million in discharged loans, but the Department of Education has not yet commenced any such action. While these BDR claims that were discharged appear to also have been subject to automatic discharge under the terms of the *Sweet* settlement, and the settlement itself

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could not serve as the basis of a recoupment action by the Department of Education under its stated position, the Department of Education may still attempt to seek recoupment of such discharged payments in the future, and we cannot predict the timing or scale of such recoupment efforts if pursued. Furthermore, there may be additional pending or adjudicated BDR claims against the University that have not yet been provided by the Department of Education and of which the University has not been notified.

The BDR Rules require that the University dedicate significant resources to navigating as many as four different Rules—the 1995 Rule (applicable to loans first disbursed before July 1, 2017), the 2017 Rule (applicable to loans first disbursed between July 1, 2017, and before July 1, 2020), the 2020 Rule (applicable to loans first disbursed on or after July 1, 2020), and potentially the 2023 Rule. The University also maintains reporting procedures to comply with the financial responsibility provisions related to BDR. See "*—Standards of Financial Responsibility.*"

The current BDR Rules and regulations could result in significant risks for our business and the application of the various BDR standards may be unclear or subject to interpretation in a manner that is adverse to us and unpredictable. The Department of Education's administration of the regulations may result in unexpected outcomes that materially and adversely affect our business, including with respect to the University's potential liabilities from the recoupment of discharged loans and related financial responsibility and letter of credit requirements. The potentially significant discretion vested in the Department of Education to administer the regulations, including whether to seek recoupment of discharged loan amounts or require letters of credit from institutions, may result in unexpected outcomes that materially and adversely affect our business and liquidity. In addition, the manner in which we respond to state or federal and certain private lawsuits may be materially impacted as a result of the possible significant consequences of an adverse judgment or finding in such matters on the subsequent adjudication of BDR claims.

Since individual BDR applications are submitted by student loan borrowers to the Department of Education, rather than to us, and since the BDR Rules provide for group claims without an underlying individual BDR application from a borrower in certain circumstances, it is unknown how many BDR claims have been asserted with respect to the University, how many have been approved or denied by the Department of Education, or how many BDR claims will be asserted, approved or denied in the future. It is further unknown whether and to what extent the Department of Education may seek to recoup the amount of discharged or refunded loans or impose such liability against the University, whether our legal and factual defenses with respect to such BDR claims and recoupment proceedings or imposition of liability would succeed, or even which procedures will ultimately govern the BDR resolution process. Additionally, the University could receive negative coverage in the media regarding BDR claims that could impede the recruitment of students. All of these potential factors may have a material adverse effect on our business and financial performance. Moreover, the legality of aspects of the Department's BDR regulations, policies, and rules is under challenge, and the outcome and consequences of pending litigation is uncertain.

The University maintains certain BDR-related insurance coverages, which could serve to mitigate a portion of the risk associated with potential BDR recoupment actions that may be asserted against the University by the Department of Education. The most relevant insurance policy covers recoupment actions that correspond to a population of BDR claims that the Department of Education has sent to the University for response thus far. Coverage by this policy is also contingent upon the University's obligation to first exhaust all non-frivolous appeals and challenges to a recoupment action, and as such, there could be a significant delay between the initiation of a recoupment action and a determination as to the applicability of the insurance coverage. Other potentially applicable insurance coverages cover recoupment actions that correspond to a separate and smaller portion of the claims that the Department of Education has sent to the University for response thus far. The availability and amount of these coverages could be affected by the existence of other non-BDR related claims, which could erode the available coverage. These coverages are contingent upon the University's obligation to exhaust federal court appeals.

*Closed School Loan Discharge ("CSLD").* Under the Higher Education Act, if a student "is unable to complete the program in which such student is enrolled due to the closure of the institution," the Department of

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Education discharges the borrower's federal student loan liability and "shall subsequently pursue any claim available to such borrower against the institution . . . ." 20 U.S.C. § 1087(c)(1). The Department of Education's CSLD regulations currently in effect provide that a school's closure is the date that the school "ceases to provide educational instruction," and that a "school" includes a school's main campus or any location or branch of the main campus. For loans first disbursed before July 1, 2020, in order to qualify for a discharge by means of an application, borrowers must submit an application for a CSLD stating, among other things, that the student did not complete his or her program of study because the school closed while the student was enrolled, or the student withdrew from the school not more than 120 days before the school closed, and that the student did not complete his or her program of study through a teach-out at another school. For loans first disbursed on or after July 1, 2020, the 120-day withdrawal "look-back" period is 180 days, but the Department of Education may extend those look-back periods for "exceptional circumstances," which expands the window for loan discharges. The current regulations also permit the Secretary of the Department to provide a CSLD without an application from the borrower based on information in the Secretary's possession, and with respect to schools that closed between November 1, 2013, and July 1, 2020, only if the borrower did not subsequently re-enroll in any Title IV-eligible institution within three years from the date of the school closure. If a loan is discharged on these grounds, then the Department of Education may seek recoupment of the discharged amount from the responsible institution.

As discussed above in "—*Borrower Defense to Repayment*," the 2023 Rule is currently enjoined by court order. The 2023 Rule also included changes to the CSLD regulations, and the court injunction extends to the new 2023 CSLD regulations. Accordingly, the Department of Education cannot apply the new 2023 CSLD regulations, which would have been effective July 1, 2023, to any institution. We are unable to predict how this pending litigation will be resolved, and whether or to what extent the Department of Education may ultimately apply and enforce the 2023 CSLD regulations. Among other changes, the 2023 CSLD regulations expand upon the Department of Education's authority to grant a loan discharge without a borrower application, extend the withdrawal "look-back" period to 180 days to loans first disbursed before July 1, 2020, provide for extension of that period based upon "exceptional circumstances," and limit the applicability of the teach-out exception for CSLD eligibility. In addition to the court-ordered injunction, and as with the 2023 Rule regarding borrower defense to repayment regulations, recent amendments to the Higher Education Act delay the implementation of the 2023 CSLD regulations by revoking the applicability of the 2023 CSLD regulations to any loans first originated before July 1, 2035.

Commencing in June 2021, the Department conducted an off-site program review focused on possible liabilities for closed school loan discharges related to the University's closing of various locations. Following the Department's issuance of a final program review determination in September 2022 and a subsequent administrative appeal, an Administrative Law Judge ruled in December 2024 that the University owes liabilities for closed school loan discharges for three student borrowers in the amount of approximately $44,000. The University has appealed this decision to the Secretary of the Department of Education, and the ultimate outcome of the proceedings is uncertain. Although this liability is de minimis, the outcome of the proceedings, along with the evolving regulations governing closed school loan discharges, could have potential implications with respect to student borrowers who attended the substantial number of physical campuses and learning centers that the University has closed in recent years. These closures were made in connection with its Campus Footprint Initiative, where the University worked closely with its regulatory oversight bodies and students to adhere to the University's commitment to ensure that every impacted student would have the opportunity to complete their education program at their location or attend online at their choice. The University has not received data on the number of closed school loan discharges that have been, or may be, approved by the Department of Education in regard to the University's closed locations. If the number of discharges is substantial, the impact on the terms of the University's participation in the Title IV programs or on the financial condition of the University could be material and adverse.

*Standards of Financial Responsibility.* To participate in Title IV programs, the Department of Education regulations specify that an eligible institution of higher education must satisfy specific measures of financial responsibility prescribed by the Department of Education or post a letter of credit in favor of the Department of Education and accept other conditions on its participation in Title IV programs. These financial responsibility tests are applied on an annual basis based on each institution's audited financial statements, and may be applied

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at other times, such as if the institution undergoes a change in control. These tests may also be applied to an institution's parent company or other related entity. The most significant financial responsibility standard is the institution's composite score, which is derived from a formula established by the Department of Education based on a weighted average of the following three annual ratios which assess the financial condition of the institution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• primary reserve ratio, which measures an institution's financial viability and liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity ratio, which measures an institution's capital resources and its ability to borrow; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• net income ratio, which measures an institution's profitability.

The Department of Education assigns a strength factor to the results of each of these ratios on a scale from negative 1.0 to positive 3.0, with negative 1.0 reflecting financial weakness and positive 3.0 reflecting financial strength. It then assigns a weighting percentage to each ratio and adds the weighted scores for the three ratios together to produce a composite score for the institution. An institution's composite score must be at least 1.5 for it to be considered financially responsible and without need for further Department of Education oversight. If an institution's composite score is less than 1.5 but is 1.0 or higher, it is still considered financially responsible, and the institution may continue to participate as a financially responsible institution for up to three years under the Department of Education's "zone" alternative. Under the zone alternative, the Department of Education may subject the institution to various operating or other requirements. This may include (i) being transferred from the "advance" method of payment of Title IV program funds to the heightened cash monitoring payment method under which the institution is required to make Title IV disbursements to eligible students and parents before it requests or receives funds from the Department of Education for the amount of those disbursements, or (ii) being transferred to the more onerous reimbursement payment method under which an institution must submit to the Department of Education documentation demonstrating the eligibility for each Title IV disbursement and wait for the Department of Education's approval before drawing down Title IV funds. Institutions placed on either the heightened cash monitoring payment method or the reimbursement payment method must pay Title IV credit balances to students and parents before requesting Title IV funds from the Department of Education and may not hold Title IV credit balances on behalf of students or parents, even if authorized by the student or parent to hold and apply these credit balances to future tuition payments.

If an institution does not achieve a composite score of at least 1.0, it is subject to additional requirements in order to continue its participation in Title IV programs. These additional requirements can include (i) submitting to the Department of Education a letter of credit in an amount equal to at least 10% or, at the Department of Education's discretion, up to 50% of the Title IV funds received by the institution during its most recently completed fiscal year; (ii) being placed on provisional certification status, under which the institution must receive Department of Education approval before implementing new locations or educational programs; and (iii) complying with other restrictions, including reduced due process rights in subsequent proceedings before the Department of Education.

The Department of Education measures our financial responsibility on the basis of the Company's consolidated audited financial statements. Our composite scores, which are calculated as of the end of our fiscal year, were 2.8, 2.7 and 2.7 for fiscal years 2024, 2023 and 2022, respectively.

In addition to the above, new Department of Education financial responsibility regulations that took effect on July 1, 2024 revised the timing for submission of audit reports and identified events that constitute a failure of an institution to demonstrate its ability to meet its financial obligations, including certain mandatory triggering events upon which an institution is deemed automatically to lack financial responsibility. Mandatory triggering events include certain final monetary judgments or settlements in legal proceedings, certain borrower defense recoupment proceedings initiated by the Department of Education, receiving at least 50% of Title IV program funds in the prior year from programs that are failing the Department of Education's new gainful employment metrics, certain actions by the U.S. Securities and Exchange Commission, certain creditor events, and failing to comply with certain other metrics related to the 90/10 Rule and an institution's cohort default rates. The

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regulations also identified new discretionary triggering events, upon which the Department of Education may determine that the institution lacks financial responsibility, including, among other things, the occurrence of: specified defaults, delinquencies, creditor events and judgments; significant fluctuations in volume of Title IV program funds from year to year; high annual dropout rates; the formation of a group process by the Department of Education with respect to recoupment of pending BDR claims; for an institution owned at least 50% by a publicly traded entity, a disclosure by the entity in public filing that it is under investigation for possible violations of state, federal or foreign law; certain other state, federal, and accreditation regulatory actions; or any other event or condition that the Department of Education determines is likely to have a "significant adverse effect" on the financial condition of the institution. An institution that suffers a triggering event and is thus determined by the Department of Education or otherwise deemed automatically to lack financial responsibility must (i) provide a letter of credit or other form of acceptable financial protection to the Department of Education, and (ii) accept other conditions on its Title IV eligibility. Under these regulations, the Department of Education requires an institution to provide financial protection, including a letter of credit, if applicable, in an amount of not less than 10% of the institution's total Title IV funding in the prior year for each individual triggering event, such that multiple triggering events could subject an institution to substantial cumulative financial protection obligations. We did not have any triggering events for our fiscal year ended August 31, 2024.

*Administrative Capability.* The Higher Education Act directs the Department of Education to assess the administrative capability of each institution to participate in Title IV programs. The failure of an institution to satisfy any of the criteria used to assess administrative capability may cause the Department of Education to determine that the institution lacks administrative capability and, therefore, subject the institution to fines, sanctions, and additional scrutiny, including the limitation or denial of eligibility for Title IV programs. These criteria impose requirements that, among other things, an institution administer the Title IV programs in accordance with all applicable federal student financial aid requirements, with adequate checks and balances in its system of internal controls over financial reporting, and with capable and sufficient personnel. The criteria further include, among other requirements, that the institution maintain certain records and reporting, reasonable standards for measuring satisfactory academic progress, and systems for resolving certain financial aid discrepancies, and that the institution refer to the Office of Inspector General of the Department of Education credible information indicating that a Title IV applicant may have engaged in fraud or other criminal misconduct in connection with his or her application. See "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—If our institution fails to maintain adequate systems and processes to detect and prevent fraudulent activity in student enrollment and financial aid, our institution may lose the ability to participate in Title IV programs, Department of Defense military tuition assistance programs, Department of Veterans Affairs veterans education benefit programs, or have participation in these programs conditioned or limited, or face claims from third parties.*" Recent amendments by the Department of Education to the administrative capability regulations, which became effective July 1, 2024, impose additional requirements, including revised and new criteria regarding an institution's validation of high school diplomas, financial aid counseling, career services, provision of clinical or externship opportunities, disbursement of Title IV funds, offering of gainful employment programs, substantial misrepresentations, and aggressive and deceptive recruitment tactics or conduct. The recent amendments also provide the Department of Education with increased and explicit authority to make an adverse administrative capability finding based on a broader set of issues than it has used historically.

*90/10 Rule.* The University, and all other proprietary institutions of higher education, are subject to the so-called "90/10 Rule" under the Higher Education Act. Under this rule, a proprietary institution will be ineligible to participate in Title IV programs for at least two fiscal years if, for any two consecutive fiscal years, it derives more than 90% of its cash basis revenue, as defined in the rule, from Title IV programs or other qualifying federal funding sources, including tuition assistance programs offered by the U.S. Department of Defense (military tuition assistance) and U.S. Department of Veterans Affairs (veterans education benefits). If an institution is determined to be ineligible, any disbursements of Title IV program funds made after the end of the second fiscal year in the measuring period must be repaid to the Department of Education. An institution that derives more than 90% of its cash basis revenue from Title IV programs or other qualifying federal funding sources for any single fiscal year will be automatically placed on provisional certification for two fiscal years and

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will be subject to possible additional sanctions or requirements determined to be appropriate under the circumstances by the Department of Education. The institution would also be required to provide notices to existing students about the potential loss of Title IV funding. While the Department of Education has broad discretion to impose additional sanctions or requirements on such an institution, there is only limited precedent available to predict what those sanctions might be. For example, the Department of Education could impose conditions in the provisional certification such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the total amount of Title IV program funds that may be disbursed to students;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on programmatic and geographic expansion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requirements to obtain and post letters of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional reporting requirements such as interim financial reporting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other conditions deemed appropriate by the Department of Education.

The University's 90/10 Rule percentages were approximately 88%, 81% and 80% for the fiscal years ended August 31, 2024, 2023 and 2022, respectively. New Department of Education regulations, which became effective July 1, 2023 and applicable starting in our fiscal year 2024, for the first time included tuition assistance programs offered by the U.S. Department of Defense and U.S. Department of Veterans Affairs within the types of funds that are considered federal funding sources under the 90/10 Rule, and this change was a principal cause of the increase in the University's 90/10 Rule percentage from 2023 to 2024. While the University currently remains in compliance with the rule, the new regulations that became effective July 1, 2023 increased the risk that the University may not comply with the 90/10 Rule in the future. The University has no direct control over the amount of Title IV student loans and grants sought and other federal funds for which its students are determined to be eligible.

*Gainful Employment and Financial Value Transparency.* Under the Higher Education Act, proprietary schools are generally eligible to participate in Title IV programs only in respect of educational programs that lead to "gainful employment in a recognized occupation." An initial attempt by the Department of Education in 2010 to promulgate, for the first time, regulations that would have applied program-specific, student outcome-based eligibility criteria to determine whether individual educational programs offered by proprietary schools led to "gainful employment" were judicially rejected prior to implementation. Subsequently revised regulations were implemented by the Department of Education in 2014 but later repealed in 2020. In October 2023, the Department of Education released new financial value transparency and gainful employment regulations that established two independent "gainful employment" metrics. To maintain Title IV eligibility, an institution must comply with both metrics, along with a related financial value transparency regulation. The two gainful employment metrics are (i) a debt-to-earnings ratio that compares the median earnings of graduates who received federal financial aid to the median annual payments on loan debt borrowed for the program, and (ii) an earnings premium test that measures whether the typical graduate from a program that received federal financial aid is earning more than a typical high school graduate in their state (or, in some cases, nationally) and within a certain age range in the labor force. Any program that fails either or both metrics in a single year would be required to disclose such failure to students, and any program that fails the same metric in any two out of three consecutive years, or is voluntarily discontinued by the institution, would not be eligible to have Title IV reinstated for a minimum of three years. Nearly all programs at the University would be subject to this "gainful employment" evaluation. The Department of Education has indicated that it does not expect to release gainful employment metrics before the fall of 2025, and, if so, we expect that the earliest a program could fail these gainful employment tests and therefore risk losing access to Title IV federal financial aid, is 2026. On May 16, 2025, in a pending federal court case challenging the regulations published in October 2023, the Department of Education defended the gainful employment and financial value transparency regulations in a court filing.

The Department of Education's financial value transparency rule requires all colleges to provide certain student and financial information about their programs to the Department of Education. That information, including student debt burdens and program costs, will be published on a Department of Education consumer-

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facing website to help students make informed enrollment decisions. Beginning in 2026, a student interested in a program deemed to leave students with high debt burdens will need to acknowledge having viewed that information before they can enroll.

Our ability to satisfy the gainful employment metrics for certain of our programs is subject to some extent on factors outside of our control, including general economic conditions affecting our graduates, changes in labor markets, increases in student borrowing levels, increases in interest rates, changes in the federal poverty income levels, and changes in the percentage of our former students who are current in repayment of their student loans. Additionally, certain programs we offer that typically lead to lower-paying, service-oriented professions may be unable to satisfy the gainful employment metrics and have to be discontinued. Additionally, future enrollments could also be impacted if students were required by the transparency rule to acknowledge that the program they are interested in has been known to leave students with high debt burdens. Further, it is uncertain whether or how the Department of Education will modify the current gainful employment and financial value transparency rules as a result of the recent amendments to the Higher Education Act introducing the new program eligibility requirements based on student earning outcomes, or for other purposes. See "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—Recent action by Congress that revised the laws governing federal student financial aid programs, including changes to the level of federal student aid funding available to our students and to the requirements educational programs must meet to qualify for such funding, could reduce our enrollment and revenue, and increase our costs of operation*."

*Student Loan Cohort Default Rates.* To remain eligible to participate in Title IV programs, an educational institution's student loan cohort default rates must remain below certain specified levels. Each cohort is the group of students who first enter into student loan repayment during a federal fiscal year (ending September 30) and the default rate is the percentage of that cohort who default on their payment by the end of the second full year after such repayment start date. The cohort default rates are published by the Department of Education approximately 12 months after the end of the applicable measuring period. Thus, in September 2024, the Department of Education published the cohort default rates for the 2021 cohort. An educational institution loses eligibility to participate in Title IV programs if its cohort default rate equals or exceeds 40% for any given year or 30% for three consecutive years. If an institution's cohort default rate equals or exceeds 30% for any given year, it must establish a default prevention task force and develop a default prevention plan with measurable objectives for improving the cohort default rate. We believe that our current repayment management efforts would meet these requirements.

Based on information published by the Department of Education, the cohort default rates for the University and for all proprietary post-secondary institutions for the applicable federal fiscal years were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Cohort Default Rates for<br>Cohort Years Ended September 30,** | **Cohort Default Rates for<br>Cohort Years Ended September 30,** | **Cohort Default Rates for<br>Cohort Years Ended September 30,** |
|  | **2021** | **2020** | **2019** |
|  The University | 0.0% | 0.0% | 2.6% |
|  All proprietary post-secondary institutions | 0.0% | 0.0% | 3.1% |

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As part of the federal relief enacted regarding the COVID-19 pandemic, federal student loan payments were paused until September 1, 2023 causing our three-year cohort default rates and those of other proprietary post-secondary institutions to decline significantly beginning in 2020. The restarting of payment obligations in September 2023 following the multi-year COVID-19 interruption is expected to cause a material increase in reported rates, which are not yet known. Although our cohort default rates, even prior to the COVID-19 pause, have historically been significantly below the mandated levels, any increase in interest rates or declines in income or job losses for our students could contribute to higher default rates on student loans. While we anticipate that there will be substantial increases in cohort default rates among institutions generally and that our rates will also increase, we cannot predict the extent of any such increases in our cohort default rates or how our future rates will compare to our historical pre-pandemic levels and to the Department of Education's student loan default rate thresholds. In addition, recent changes implemented by the OBBB to the loan repayment plans

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available to student borrowers could affect the ability of borrowers to repay their loans and potentially result in an increased number of borrower defaults, including among our graduates. See "*Business—Financial Aid Programs.*"

On May 5, 2025, the Department of Education announced that the United States faces critical challenges related to the federal student loan programs, citing its estimates that "only 38% of Direct Loan and Department-held Federal Family Education Loan Program borrowers" are in repayment and current on their loans and that "almost 25% of the entire portfolio is either in default or a late stage of delinquency," and it encouraged institutions to conduct outreach to all borrowers who ceased enrollment since January 1, 2020, to engage student borrowers and support the repayment of their federal student loans. We believe that our investment in student protection initiatives and repayment management services will continue to favorably impact our rates. As part of our repayment management initiatives, we engage third-party service providers to assist our students who are at risk of default. These service providers contact students and offer assistance, which includes providing students with specific loan repayment information such as repayment options and loan servicer contact information, and they attempt to transfer these students to the relevant loan servicer to resolve their delinquency.

*Restrictions on Incentive Compensation.* As part of an institution's PPA with the Department of Education and under the Higher Education Act and Title IV regulations, an institution participating in Title IV programs cannot provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or the award of Title IV financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance. The Department of Education issued new rules on incentive compensation that took effect in 2011 and eliminated various safe harbors that had previously defined categories of compensation deemed permissible and thereby increased the uncertainty as to the scope of the incentive compensation restrictions and how the restrictions are and will be interpreted and applied. In February 2023, the Department of Education announced that it would begin gathering information and feedback with the intent to revise the incentive compensation rule. In July 2024, the Department of Education indicated that revised guidance, which could materially change the contours of the established incentive compensation rule and could therefore negatively impact our ability to comply with it, would be promulgated no sooner than the end of the 2024 calendar year. Such guidance has not been issued to date.

The incentive compensation ban also applies to certain vendors of the University who have been deemed a "third-party servicer" because the vendor's activities and functions are intrinsically intertwined with the institution's administration of Title IV programs. In February 2023, the Department of Education issued new revised guidance regarding the parameters of third-party servicers), which created significant confusion in the marketplace and appeared to increase the number of vendors who would subsequently be considered a third-party servicer. In the uproar that followed, the Department received more than 1,000 comments from institutions, and announced that the implementation of the February 2023 revised guidance would be delayed. In July 2024, the Department of Education announced its intent to conduct negotiated rulemaking regarding third-party servicers, which could result in significant changes to the established third-party servicer rules and could negatively impact the University's ability to comply with them. The rulemaking plans remain uncertain: the process could begin as early as calendar year 2025, or it could be cancelled or revised by the new administration.

The restrictions of the incentive compensation rule prohibit us from offering any bonus or incentive-based compensation based on the successful recruitment, admission or enrollment of students or the award of Title IV financial aid to any of our employees involved with or responsible for such activities. The lack of interpretive guidance regarding the rule, however, has caused uncertainty about what constitutes incentive compensation and which employees are covered by the regulation and has made the development of effective and compliant performance metrics for certain categories of employees or service providers more difficult to establish. Additionally, the incentive compensation rule may impact the University's contracts with certain third parties, pending clarification from the Department of Education on the scope of the incentive compensation rule and the parameters around "third-party servicers." The Department of Education has provided very limited published

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guidance regarding the incentive compensation rule and does not establish clear criteria for compliance for many circumstances.

*Substantial Misrepresentation.* The Higher Education Act prohibits an institution participating in Title IV programs from engaging in substantial misrepresentation of the nature of its educational programs, financial charges, or graduate employability. The Department of Education defines "misrepresentation" to include any false, erroneous or misleading statement made by an institution or its representative. A statement is deemed "misleading" if it has the likelihood or tendency to mislead under the circumstances. Misrepresentations include statements that omit information in such a way as to make the statement false, erroneous, or misleading. A misrepresentation rises to the level of a "substantial misrepresentation" if, under the totality of circumstances, the misrepresentation could reasonably be relied upon to that person's detriment. Following a report from the U.S. Government Accountability Office in December 2022 that urged the Department of Education to more aggressively police colleges to prevent substantial misrepresentations, the Department of Education has significantly increased its efforts. The Department of Education established an Office of Enforcement in the Office of Federal Student Aid, undertook secret shopping of institutions, and solicited the public to report suspected misrepresentations by colleges, among other actions. In September 2024, the Department of Education issued an Enforcement Bulletin warning of additional specific conduct uncovered during its oversight activities that could rise to the level of actionable substantial misrepresentation and noting that it will continue to aggressively monitor complaints and tips in order to hold institutions accountable for substantial misrepresentations.

*Aggressive and Deceptive Recruitment Tactics.* Institutions participating in Title IV programs are prohibited by regulation from engaging in activities that constitute aggressive and deceptive recruitment tactics or conduct. An eligible institution is deemed to have engaged in aggressive and deceptive recruitment tactics or conduct when the institution itself, one of its representatives, or any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs, marketing, advertising, lead generation, recruiting or admissions services, engages in one or more of the prohibited practices. In the event an institution has engaged in aggressive and deceptive recruitment strategies, the Department of Education may revoke or terminate an institution's PPA, limit the institution's participation in Title IV programs, deny applications from the institution, such as to add new programs or locations, initiate proceedings to fine the institution, or limit, suspend or terminate its eligibility to participate in Title IV programs.

*Return of Title IV Funds.* When a student who has received Title IV funds withdraws from school, the University must determine the amount of Title IV program funds the student has "earned." If the student withdraws during the first 60% of any period of enrollment or payment period, the amount of Title IV program funds that the student has earned is equal to a pro rata portion of the funds the student received or for which the student would otherwise be eligible. If the student withdraws after the 60% threshold, then the student is deemed to have earned 100% of the Title IV program funds he or she received. The University must return any unearned Title IV program funds to the Department of Education in a timely manner, which is no later than 45 days after the date the University determined that the student withdrew. If such payments are not timely made, the University will be required to submit a letter of credit to the Department of Education equal to 25% of the Title IV funds that the University should have returned for withdrawn students in its most recently completed fiscal year. Under Department of Education regulations, late returns of Title IV program funds for 5% or more of the withdrawn students in the audit sample in the University's annual Title IV compliance audit for either of the University's two most recent fiscal years or in a Department of Education program review triggers this letter of credit requirement. We did not exceed this 5% threshold in our annual Title IV compliance audit for either of our two most recent fiscal years.

*Branching and Classroom Locations.* The Title IV regulations contain specific requirements governing the establishment of new locations at which an eligible institution offers, or could offer, 50% or more of an educational program. The Department of Education requires that the institution notify the Department of Education of each location offering 50% or more of an educational program prior to disbursing Title IV program

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funds to students at that location. The University has procedures in place to ensure timely notification and acquisition of all necessary location approvals prior to disbursing Title IV program funds to students attending any new location. In addition, the HLC and state regulators have requirements for the establishment of new locations.

The University is also subject to state regulatory and accreditation requirements associated with closing locations. As a higher education institution focused on serving working adults, the University has consistently prioritized flexibility and access while responding to our students' shifting needs and preferences, particularly as demand for online education surged and then further accelerated during the 2020 global pandemic. As student enrollment patterns evolved, it became clear that online education was becoming the preferred modality, with in-person instruction on the decline. In 2012, the University conducted a comprehensive review of its physical locations, which revealed the changing preferences of students for distance education that they could access on their schedule. This analysis prompted the University to take the significant step of phasing out many local campuses and learning centers across the U.S. This decision was not only guided by the growing shift toward online learning but also the University's commitment to staying at the forefront of innovation in higher education.

The process to transform the University's physical footprint, called the Campus Footprint Initiative, began in October 2012. The University worked closely with its regulatory oversight bodies and students to adhere to the University's commitment to ensure that every impacted student would have the opportunity to complete their education program at their location or attend online at their choice. The initial Campus Footprint Initiative phase concluded in 2016.

Between 2015 and 2021, the University completed additional Campus Footprint Initiative phases and continued its focus on streamlining its national campus footprint and strengthening its regional presence. By strategically investing in fewer markets, the University was able to foster stronger connections among students, faculty, alumni, and employers while retaining a national presence. Throughout the Campus Footprint Initiative, the University remained steadfast in its core mission to provide high-quality education that meets the needs of its students. The decision to phase out physical campuses allowed the University to shift resources to enhancing its online offerings, thus expanding its ability to deliver personalized learning experiences. The University completed closure of the remaining out-of-state locations as of October 30, 2024. Looking ahead, the University is focused on ensuring that students have the tools and support necessary to succeed in a digital learning environment. This transition to a predominantly online model reflects the University's commitment to remaining adaptable, student-centered, and innovative, positioning it to meet the evolving demands of higher education and employers into the future.

***Change in Ownership or Control***

If the University engages in a transaction that involves a change in control of the Company or the University, including this offering or subsequent offerings, under the standards of the Department of Education, the HLC, or any other applicable state education agency or accrediting commission, it must notify or seek the approval of each such agency. These agencies do not have uniform criteria for what constitutes a change in control. Transactions or events that typically constitute a change in control include significant acquisitions or dispositions of the voting stock and/or assets of an institution or its parent company, and significant changes in the corporate form, governance structure, or composition of the board of directors of an institution or its parent company. Some of these transactions or events may be beyond our control.

Under the Department of Education's regulations, an institution that undergoes a change in control loses its eligibility to participate in Title IV programs and must apply to the Department of Education to reestablish such eligibility. If an institution files the required application and follows other procedures, the Department of Education may temporarily certify the institution on a provisional basis following the change in control, so that the institution's students retain continued access to Title IV program funds. In addition, the Department of Education may extend such temporary provisional certification if the institution timely files certain required

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materials, including the approval of the change in control by its state authorizing agency and accrediting agency and certain financial information pertaining to the financial condition of the institution or its parent corporation.

We submitted a description of this offering to the Department of Education in March 2025, asking that it confirm our understanding that this offering will not constitute a change in control under Department of Education standards. While there is no formal mechanism for making this request to the Department of Education and the Department of Education is not required to provide any such requested confirmation, on April 22, 2025, the Department of Education confirmed to us that this offering will not constitute a change in ownership resulting in a change in control. If the Department of Education were to reconsider that determination, or if it determined that subsequent offerings or transactions do constitute a change in control under their standards, the University will be subject to a recertification approval requirement that will include extensive documentary submission requirements and to reviews by the Department of Education of the University's financial and administrative capability and to extensive prior review and approval procedures by HLC. In addition, the Department of Education further requires that institutions periodically report changes in ownership, even when a change does not result in a change in control that would require approval by the Department of Education. Regulations require that changes of ownership representing at least 5% but under 25% ownership be reported on a quarterly basis, and within 10 days in the event the institution plans to undergo a change in ownership. The University's failure to timely report required ownership information to the Department of Education could result in adverse action by the Department of Education or imposition of conditions or restrictions on the University's participation in the Title IV programs.

The University is also required to report any material change in stock ownership to the HLC and must obtain approval prior to undergoing any transaction that affects, or may affect, within definitions adopted by the HLC, its corporate control or governance. The HLC has informed the University that this offering does not require prior review and approval by HLC under HLC's policies governing changes of control, structure, or organization. If the Department of Education were to reconsider the determination described above, however, the HLC would be expected to require prior review and approval of this offering, which would significantly delay this offering. Furthermore, additional subsequent offerings or transactions may constitute a change in ownership or control of the University under the HLC standards and may therefore require approval of the HLC Board of Trustees, in which case the HLC may undertake an evaluation of the effect of the change on the continuing operations of the University for purposes of determining if continued accreditation is appropriate, which evaluation may include a comprehensive review. That approval may be granted without conditions, granted with conditions that could limit the University's operations, or could be denied, which would effectively block those subsequent offerings.

In addition, Arizona rules state that the Arizona State Board for Private Postsecondary Education must approve certain changes of ownership or control, including but not limited to a transfer of 50% or more of a privately held institution's voting stock or assets or a change from one business form to another. If the Arizona State Board for Private Postsecondary Education determined that the transactions in connection with this offering constitute a change of ownership or control requiring its approval, the University would need to complete certain change of control procedures with the Arizona State Board for Private Postsecondary Education following the Corporate Conversion and file an application for reauthorization within 60 days. If this process were delayed or the University's application for reauthorization were denied approval, such consequences could have a material adverse effect on our business, financial condition and results of operation.

Moreover, pursuant to SARA policy, a change in ownership or control for a SARA participating institution is determined by the institution's home state. Accordingly, if the Arizona State Board for Private Postsecondary Education determines the transactions in connection with this offering constitute a change of ownership or control requiring its approval, the University will be placed on provisional status under such additional oversight measures as its home state considers necessary for purposes of ensuring SARA requirements are met regarding program quality, financial stability, and consumer protection. If the University were not successful in meeting requirements as set by the Arizona State Board for Private Postsecondary Education, or in completing the change

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of control procedures and subsequent reauthorizations with the Arizona State Board for Private Postsecondary Education and SARA, we could lose Arizona and SARA authorization and no longer be able to enroll distance education students unless and until the University is reauthorized in Arizona and subsequently SARA, or obtains individual authorizations in each state. This could have a significant impact on the University's ability to compete in the distance education market, as well as on the University's financial performance, and make it vulnerable to additional challenges in obtaining authorization in individual states.

California is not a member of the SARA compact, and the University is registered as an out-of-state institution with the California Bureau for Private Postsecondary Education to offer its distance education programs to California students. Unless California decides to join SARA as a member state, the University must continue to maintain its individual state authorization through registration as an out-of-state institution. If California's regulations or statutes were to change, the University would need to comply with those changes to continue its separate authorization to offer distance education to California students. If the University was not able to meet California's state authorization requirements to offer distance education in the future, such consequences could have a material adverse effect on our business, financial condition and results of operation. See "*Risk Factors—Risks Related to the Highly Regulated Industry in Which We Operate—If we fail to maintain our state authorization, we would lose our ability to participate in Title IV programs.*"

***Compliance Reviews and Other Regulatory Investigations***

We are subject to ongoing and continuous oversight actions by the Department of Education and other regulatory agencies, including, but not limited to, those conducted by our institutional accreditor, the HLC, other agencies that accredit programs that we offer, our state authorizing agencies, the FTC, and state attorneys general.

*Department of Education Program Reviews.* In conducting oversight of the administration of the federal student aid program by Title IV-participating institutions, the Department of Education relies on compliance reviews, including program reviews conducted by Department of Education staff, mandatory annual compliance audits by independent audit firms, and audits conducted by the Department of Education's Office of Inspector General. As discussed above in "*—Regulation of Student Financial Aid Programs—Closed School Loan Discharge (CSLD)*," commencing in June 2021, the Department conducted an off-site program review focused on possible liabilities for closed school loan discharges related to the University's closing of various locations. As was previously detailed, the liability determination from that review remains subject to an ongoing appeal proceeding before the Secretary of the Department of Education.

*United States Department of Veterans Affairs Risk-Based Surveys*. As part of its oversight of veteran education benefit programs, the United States Department of Veterans Affairs conducts risk-based surveys of eligible institutions through the various state approving agencies. On May 21, 2025, the University received a Notice (the "Notice") of Risk-Based Survey (the "RBS") for its online facility code from the Arizona Department of Veterans' Services ("AZDVS"). The Notice explained that after a review of publicly available data, the University was selected for the RBS based on "complaints" and "cautionary flag warning." The RBS consists of a review by AZDVS of student files as well as financial information, graduation rates for veteran and non-veteran students, licensure pass rates and job placement rates (if applicable), marketing and advertising documents, and student complaints for the audit period May 2023-May 2025. Following the document review, a site visit was conducted on July 17, 2025. The auditors expressed no concerns with the University's marketing, financials, files, or complaints. The University received the RBS final report on July 18, 2025. The report noted "no findings" and affirmed the University's approval in accordance with 38 USC 3679(a)(1).

*Federal Trade Commission Investigation.* In July 2015, the University received a Civil Investigative Demand (the "Demand") from the FTC relating to an investigation to determine if certain unnamed persons, partnerships, corporations, or others have engaged or were engaging in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing, or sale of secondary or post-secondary educational products or

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services or educational accreditation products or services. The Demand required the production of documents and information regarding a broad spectrum of the business and practices of the University, including but not limited to marketing, recruiting, enrollment, financial aid, tuition and fees, academic programs, academic advising, student retention, billing and debt collection, complaints, accreditation, training, military recruitment, and other compliance matters for the time period from January 1, 2011.

The FTC ultimately narrowed its investigation to one advertising campaign that aired between approximately late 2012 and early 2014. In December 2019, we agreed to resolve this matter with the FTC. Under the terms of the resolution, we paid $50 million to the FTC and agreed to forgiveness of certain student debts owed to the University, which totaled approximately $150 million. Substantially all of these student debts had already been deemed uncollectible and had been written-off in prior fiscal years. As a result, the forgiveness of these student debts had no impact on our consolidated financial statements. We do not believe we have any future exposure to the FTC associated with this matter. However, as part of the settlement with the FTC, we agreed to ongoing obligations such as specific prohibitions against misrepresentations about subject matters that were a focus of the FTC's investigation, as well as notification, recordkeeping and reporting requirements. Actual or perceived non-compliance with these ongoing obligations could prompt the FTC to seek fines and penalties via an enforcement action against the University.

In fiscal year 2023, we received follow-up inquiries from the FTC under the compliance monitoring provisions of the settlement order related to portions of the University's advertising which stated that the University does not charge out-of-state tuition. We cooperated with this inquiry by producing the requested relevant documents and information. The University has not received any further related communications or requests for additional information from the FTC. However, it is believed that the FTC coordinated with the Department of Education in this inquiry, turning over to the Department of Education the documents and information provided by the University in response to the FTC's inquiry. As a result, in September 2023, the University received a letter from the Investigations Group from Federal Student Aid, which is an office within the Department of Education, stating that it believed the University may have engaged in substantial misrepresentations to prospective students regarding the nature of its financial charges and/or its educational programs. The letter allowed the University to submit a response for the Department of Education's consideration before any action would be taken, which we provided. The Department of Education subsequently informed the University that it is not taking any action associated with this matter. As such, though the University has not received a formal notice of closure from the FTC, this matter is presumed closed for all practical purposes.

*Attorney General Investigations.* In August 2015 and February 2016, the University received investigative subpoenas from the Office of the Attorney General of the State of California. The subpoenas required the production of documents and information regarding a broad spectrum of our business and practices relating to marketing, recruiting, compensation of enrollment advisors, complaints, financial aid, compliance, accreditation, other governmental investigations, private litigation and other matters, as well as additional information relating to marketing and services to members and former members of the U.S. military and California National Guard, for the time period of July 1, 2010 to the present. We cooperated with the California Attorney General in these investigative proceedings. During fiscal year 2024, the University reached a mutually agreeable resolution with the Office of the Attorney General of the State of California to resolve this matter for $4.5 million, $1.0 million of which was donated to military relief organizations. This agreement also contains various injunctive provisions related to the University's recruiting activities on military installations, the vast majority of which were already part of the University's policies and practices. The agreement also contains recordkeeping and reporting obligations that last approximately three years after the settlement date. It is possible that the Department of Education could use this settlement to pursue borrower defense to repayment-based group recovery for military and veteran students who enrolled during the timeframe related to the Attorney General's inquiry, but the Department of Education has thus far taken no such action.

The State of Massachusetts Office of the Attorney General issued a Civil Investigative Demand (the "CID") on July 6, 2020 related to the University's students in Massachusetts, including communications, disclosures, catalogs and advertising that these students may have seen during three "snapshot" time periods: October 1, 2016 to March 31, 2017, March 1, 2018 to August 31, 2018, and September 1, 2019 to February 29, 2020. This CID

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also requested copies of any complaints about the University from Massachusetts-based students during the time period of July 1, 2016 to present. The University has cooperated with the Massachusetts Attorney General's office, and completed its production of responsive documents and information in December 2020. The University has not received any findings, decisions or additional inquiries from the Attorney General's office since that time. As such, though the University has not received a formal notice of closure, this matter is presumed closed for all practical purposes.

Additionally, with respect to the borrower defense to repayment regulations, under the 2023 Rule (which is currently stayed in litigation), actions by a state attorney general could become the basis for a group discharge of student loans and subsequent recoupment of funds from the institution.

*Potential Effect of Regulatory Violations.* If we fail to comply with the regulatory standards governing Title IV programs, the Department of Education could impose one or more sanctions, including requiring us to repay Title IV program funds, requiring us to post a letter of credit in favor of the Department of Education as a condition for continued Title IV certification, taking emergency action against us, initiating proceedings to impose a fine or to limit, suspend or terminate our participation in Title IV programs, delaying or denying a future application for Title IV recertification, imposing restrictions on our participation in Title IV programs, or referring the matter for civil or criminal prosecution. If such sanctions or proceedings were imposed against us and resulted in a substantial curtailment or termination of our participation in Title IV programs, our enrollments, revenue and results of operations could be materially and adversely affected.

**Intellectual Property** 

We have developed and own, or are licensed to use in connection with our business, intellectual property that is or will be the subject of copyright, trademark, service mark, patent, trade secret, or other protections. This intellectual property includes, but is not limited to, rights in our curricula and other course materials, technology, proprietary information, processes and other assets. We rely on a combination of intellectual property rights, such as copyrights, trademarks, service marks, trade secrets (including know-how), patents and domain names, in addition to employee and third-party confidentiality agreements, intellectual property licenses and other contractual rights, to establish, maintain, protect and enforce our rights in our curricula and other course materials, technology, proprietary information, processes and other assets. We also rely on agreements under which we contract to own, or license rights to use, intellectual property developed by faculty members, content experts and other third parties.

**Properties** 

As of May 31, 2025, we have one leased facility in Phoenix, Arizona that consists of dual purpose space for our corporate headquarters and Phoenix ground campus. The facility represents approximately 600,000 square feet and the lease expires in March 2031. Of that total, we are actively using approximately 79,000 square feet and the remaining square feet have been abandoned. Of the abandoned square feet, we have sublet approximately 268,000 square feet through March 2031. Refer to Note 2 to our audited financial statements included elsewhere in this prospectus for further discussion of our space rationalization plans executed in recent years.

**Legal Proceedings** 

We are subject to various claims and contingencies that arise from time to time in the ordinary course of business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. While the outcomes of these matters are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material effect on our consolidated financial position, results of operations or cash flows.

A description of pending litigation, settlements, and other proceedings that fall outside the scope of ordinary and routine litigation incidental to our business is provided under Note 10 to our audited financial statements and Note 12 to our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus, which are incorporated herein by reference.

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**MANAGEMENT** 

**Executive Officers and Directors** 

The following table sets forth the name, age and position of each of our executive officers and director nominees as of the date of this prospectus. Each of our director nominees will be appointed to our board of directors in connection with this offering, following the Corporate Conversion.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  Christopher Lynne | 52 | President and Director Nominee |
|  Blair Westblom | 49 | Chief Financial Officer and Treasurer |
|  Raghu Krishnaiah | 59 | Chief Operating Officer |
|  Srini Medi | 57 | Senior Vice President, General Counsel and Secretary |
|  Cheryl Naumann | 63 | Chief Human Resources Officer |
|  John Woods | 57 | Chief Academic Officer and Provost |
|  Andrew Bird | 61 | Director Nominee |
|  Peter Cohen | 70 | Director Nominee |
|  Jeffrey Denham | 58 | Director Nominee |
|  Theodore Kwon | 43 | Director Nominee (Chairman) |
|  Martin H. Nesbitt | 62 | Director Nominee |
|  Adnan A. Nisar | 44 | Director Nominee |
|  John Sizer | 63 | Director Nominee |
|  Itai Wallach | 37 | Director Nominee |
|  Johannes Worsoe | 58 | Director Nominee |

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The following are brief biographies describing the backgrounds of the executive officers and directors of the Company.

**Executive Officers** 

***Christopher Lynne*** has served as our President since March 2023 and will be appointed to serve as our Chief Executive Officer and a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Lynne has served as the President and as a Trustee of the University since December 2022 after serving as interim president since June 2022. In his previous role at the University, Mr. Lynne served as Senior Vice President, Chief Financial Officer and Treasurer from 2018 to 2022. Prior to joining the University, Mr. Lynne served as Chief Financial Officer of Cadence Education LLC from 2017 to 2018. Previous roles include Founder and Managing Principal at Transcend Education Group LLC from 2015 to 2016; President and Chief Operating Officer of HotChalk, Inc. from 2014 to 2015; and Executive Vice President, Chief Financial and Operating Officer at Northcentral University from 2010 to 2014. Earlier in his career, he served in several financial leadership roles at Education Management Corporation, including Senior Vice President and Chief Accounting Officer, and as an Audit Manager for Arthur Andersen LLC. Mr. Lynne holds a Bachelor of Science in Accounting from Purdue University and a Master of Business Administration from The University of Chicago Booth School of Business. We believe that Mr. Lynne is qualified to serve as a member of our board of directors because of his extensive senior management experience and leadership experience with education companies.

***Blair Westblom*** has served as our Chief Financial Officer and Treasurer since March 2023 and as the Chief Financial Officer and Treasurer of the University since January 2023. While at the University, Ms. Westblom has also held the role of Vice President, Financial Planning & Analysis from 2014 to 2022 and as Director of Finance, with multiple promotions and responsibility expansions, from February 2010 to 2014. Prior to joining

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the University, Ms. Westblom served in various finance leadership roles in the biotechnology industry including Senior Group Controller, Commercial Finance at Genentech and Associate Director, Finance at Elan Pharmaceuticals. Earlier in her career, Ms. Westblom served as Financial Analyst at Thomas Weisel Partners Investment Bank and Analyst at Healthcare Realty Trust. Ms. Westblom holds a Bachelor of Arts in Economics and a minor in Business Administration from Vanderbilt University.

***Raghu Krishnaiah*** has served as Chief Operating Officer of the University since October 2015. Prior to joining the University, Mr. Krishnaiah served as Chief Operating Officer at Western Governors University. Earlier in his career, Mr. Krishnaiah served as Senior Vice President at Kaplan Higher Education Group and has held senior leadership roles in global financial services, management consulting and business services organizations. Mr. Krishnaiah holds both a Bachelor of Science in Electrical Engineering and Computer Science and a Master of Science in Electrical Engineering from the Massachusetts Institute of Technology and a Master of Business Administration from The Wharton School of the University of Pennsylvania.

***Srini Medi*** has served as Senior Vice President, General Counsel and Secretary of the University since June 2020 and will be appointed to serve as our Chief Legal Officer and Secretary in connection with this offering, following our Corporate Conversion. Prior to joining the University, Mr. Medi served in a number of different legal roles at Bisk Education, Inc. including Associate General Counsel from January 2017 to September 2017, General Counsel from October 2017 to January 2019 and Chief Legal Officer from February 2019 to June 2020. Prior to that, Mr. Medi served as Associate General Counsel at Vantage Hospitality Group, Inc. n/k/a Red Lion Hotel Corporation from January 2016 to December 2017. Earlier in his career, Mr. Medi worked for approximately eight years at Kaplan, Inc., where he led their Commercial Transaction team and served as the lead attorney of Kaplan University, a global provider of higher education and education-related services. Mr. Medi began his legal career at various law firms working in the areas of corporate securities, corporate finance, technology, and real estate. Mr. Medi holds a Bachelor of Business Administration in Accounting, a Master of Business Administration and a Juris Doctorate from the University of Houston.

***Cheryl Naumann*** has served as Chief Human Resources Officer of the University since May 2017. Prior to her current role, Ms. Naumann served as Senior Vice President, Human Resources from March 2013 to May 2017. Prior to joining the University, Ms. Naumann's roles included Vice President of Human Resources for AEG, Vice President of Human Resources, North America for Avnet, Inc., and Vice President of Human Resources for the Phoenix Suns and Arizona Diamondbacks. Ms. Naumann holds a Bachelor of Arts in English and a Bachelor of Science in Business Administration from the University of Texas at San Antonio.

***John Woods*** has served as Chief Academic Officer and Provost of the University since January 2018. Prior to joining the University, Dr. Woods served as Chief Academic Officer of Education Corporation of America Inc. from December 2014 to December 2017. Earlier in his career, Dr. Woods served in several roles, such as Dean, Adjunct Faculty Member and Chief Academic Officer, at various companies that focused on adult education. Dr. Woods holds both a Bachelor of Arts and a Master of Arts from Carleton University and a PhD in Higher Education Administration from Bowling Green State University.

**Non-Employee Directors** 

***Andrew Bird*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Bird most recently served as Chief Executive Officer of Pearson plc, a FTSE100 company, from 2020 to 2024 where he led the transformation of the business into the digital and AI age. Prior to his appointment as CEO, Mr. Bird was a member of Pearson's board of directors. Before joining Pearson, Mr. Bird spent 14 years as Chairman of Walt Disney International, where he was responsible for all of the company's activities outside the United States across all business units except Parks & Resorts, from 2004 to 2018. Earlier in his career, Mr. Bird served as President of Turner Broadcasting International from 1993 to 2003, where he oversaw the launch and growth of Turner's entertainment brands, including Cartoon Network, TNT, and TCM, as well as the distribution and sales for CNN International. Mr. Bird has also served as an advisor to

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His Majesty's Government Department of Business & Trade. In recognition of his services to UK media and entertainment, Mr. Bird was appointed Commander of the Most Excellent Order of the British Empire in the 2012 Queen's Birthday Honours. Mr. Bird received a Bachelor of Arts degree in English language and literature at Newcastle University. We believe that Mr. Bird is qualified to serve as a member of our board of directors because of his extensive leadership experience in global media, digital transformation expertise and his significant board and advisory experience.

***Peter Cohen*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Cohen has owned an education consulting firm, COWATCO LLC, since February 2022. Previously, Mr. Cohen served as President of the University from May 2017 to January 2022. Prior to that, he was the U.S. Group President for McGraw Hill Education from November 2013 to April 2017, overseeing the company's U.S. K-12 and higher education businesses. Earlier in his career, Mr. Cohen was CEO of Pearson plc's K-12 Schools division in the United States from 2008 to 2013, and served as both President and CEO of Sylvan Learning from 1996 to 2008. Mr. Cohen currently serves as a board member of FullBloom, a provider of K-12 education services, and as a senior advisor to Boston Consulting Group, where he consults on pre-K-12, higher education, and workforce development. He is also a board member and treasurer of Education Week, a leading education information publication, and serves on the boards of Carnegie Learning, a provider of K-12 education products and services, and Primrose Schools, an early childhood education provider. In addition, Mr. Cohen is the board chair of Teachers of Tomorrow, a K-12 teacher certification and training organization. Mr. Cohen is a graduate of the University of Redlands, where he earned his Bachelor of Arts in Business. We believe that Mr. Cohen is qualified to serve as a member of our board of directors because of his extensive executive leadership experience in the education sector, his significant board and advisory experience, and his expertise in higher education, including at the University.

***Jeffrey Denham*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Denham currently serves as Senior Policy Director at Dentons, a position he has held since 2022. From 2019 to 2022, Mr. Denham served as Public Policy Director at K&L Gates LLP. Mr. Denham is a former member of the U.S. House of Representatives, having served four terms, from 2011 to 2018, representing California's 10th and formerly 19th districts. As a member of the Transportation and Infrastructure Committee, he served as chairman of the Subcommittee on Railroads, Pipelines, and Hazardous Materials and the Agriculture, Natural Resources, and Veterans' Affairs Committees. From 2002 to 2010, Mr. Denham was a member of the California State Senate, representing the state's 12th District. He was chairman of the Agriculture and Veterans' Affairs Committees and focused on such issues as education, government waste, agriculture, and economic development. Mr. Denham founded Denham Plastics LLC, a full-service provider of plastic material handling solutions in Salinas, CA. A staff sergeant in the U.S. Air Force, Mr. Denham served in Operation Desert Storm with the 452nd Air Force Refueling Wing and was awarded a Meritorious Service Medal, the Kuwait Liberation Medal and various campaign medals for combat duty. Mr. Denham received a Bachelor of Arts in Political Science from California Polytechnic University, San Luis Obispo. We believe that Mr. Denham is qualified to serve as a member of our board of directors because of his extensive leadership and government experience and his industry expertise.

***Theodore Kwon*** is a Trustee of the University and will be appointed a member and Chairman of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Kwon is a Partner of Apollo having joined in 2015. Prior to joining Apollo, Mr. Kwon was a Vice President at Angelo, Gordon & Co. from 2012 to 2015. Prior thereto, Mr. Kwon worked at Weston Presidio and was a member of the Mergers & Acquisitions group at Citigroup. Mr. Kwon also serves on the board of directors of Vanta Education, a collection of premier higher education schools located in various international markets, Apollo Enterprise Strategies, a global services company that provides business critical solutions to Apollo's strategic origination platforms, and the investment committee and oversight committee of Apollo Aligned Alternatives, a leading semi-liquid private markets fund with over $23 billion in diversified assets. Mr. Kwon previously served on the board of directors of The Fresh Market, a specialty grocery business with 166 stores located predominantly in the Southeastern U.S, and Tegra Global, a sportswear apparel manufacturer in the Western Hemisphere. Mr. Kwon is also a non-profit

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board director of The Korea Society. Mr. Kwon graduated with a Bachelor of Science in Economics and a Master of Business Administration from The Wharton School of the University of Pennsylvania. We believe that Mr. Kwon is qualified to serve as a member of our board of directors because of his extensive financial services and investment experience, board experience and industry expertise.

***Martin H. Nesbitt*** is a Trustee of the University and will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Nesbitt is a Senior Partner, Co-Chairman and Co-Chief Executive Officer of The Vistria Group, having founded the firm in 2013. Prior to founding Vistria, Mr. Nesbitt served as President and Chief Executive Officer of TPS Parking Management, LLC (dba The Parking Spot) from 1998 to 2012. Mr. Nesbitt conceptualized and co-founded The Parking Spot. Previously, Mr. Nesbitt served as an officer of the Pritzker Realty Group, L.P. and an Equity Vice President and Investment Manager at LaSalle Partners. Mr. Nesbitt currently serves on the board of directors of (i) CareMetx, a digital hub platform that focuses on specialty patient treatments, (ii) Help at Home, an innovative program and service to provide in-home care, (iii) Treliant, a consulting firm, (iv) Chewy, Inc., an online source for pet-related necessities, and (v) American Airlines Group, an airline holding company. Mr. Nesbitt is also a Trustee of Chicago's Museum of Contemporary Art, a Trustee of Rush University Medical Center and serves as Chairman of the Barack Obama Foundation. Mr. Nesbitt received a Bachelor of Arts and Honorary Doctorate from Albion College and a Master of Business Administration from The University of Chicago Booth School of Business. We believe that Mr. Nesbitt is qualified to serve as a member of our board of directors because of his extensive financial services experience, public company board experience, executive leadership experience and industry expertise.

***Adnan A. Nisar*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Nisar is a Senior Partner and Co-Head of Knowledge and Learning Solutions at The Vistria Group having joined at its inception in 2013. Prior to joining Vistria, Mr. Nisar was a Senior Associate at Mubadala Development Company in Abu Dhabi from 2011 to 2013. Earlier in his career, Mr. Nisar worked at M3 Capital Partners. Mr. Nisar currently serves on the boards of directors of (i) Risepoint, a leading technology-enabled services company that assists institutions of higher education in taking academic programs online, (ii) Unitek Learning, the parent company for five distinguished learning institutions in the areas of healthcare, nursing, and emergency medical services, (iii) Sleep Doctor, a sleep wellness company, (iv) The Gardner School, an early childhood education provider, and (v) Vanta Education, a collection of premier higher education schools located in various international markets. Mr. Nisar holds a Bachelor of Arts in Economics and Finance from Washington University in St. Louis and a Master of Business Administration from The University of Chicago Booth School of Business. We believe that Mr. Nisar is qualified to serve as a member of our board of directors because of his extensive financial services and investment experience, board experience and industry expertise.

***John Sizer*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Until 2020, Mr. Sizer was a Partner at Deloitte & Touche LLP, having worked for the firm for nearly 37 years. Mr. Sizer is a Certified Public Accountant in the state of Arizona and prior to retiring from Deloitte & Touche LLP was an audit partner to public companies and higher education companies. Currently, Mr. Sizer is a board member of Stearns Bank, N.A., a privately held bank based in Minnesota. He also serves on the boards of the Arizona Hispanic Chamber of Commerce and Aguila Youth Leadership Institute, a not-for-profit organization in Arizona. Mr. Sizer received a Bachelor's Degree in Accounting from Arizona State University. We believe that Mr. Sizer is qualified to serve as a member of our board of directors because of his extensive financial services experience, industry expertise and board experience.

***Itai Wallach*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Itai Wallach is a partner in the Private Equity group of Apollo, which he joined in 2012. Mr. Wallach also currently serves on the board of directors of Arconic and Cengage Group, and previously served on the board of directors of Qdoba Restaurant Corporation from January 2022 to September 2022, McGraw-Hill Education from March 2017 to July 2021, Smart & Final from June 2019 to July 2021,

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Smart Stores Holding Corp. from April 2019 to April 2020, The Fresh Market from January 2017 to December 2020 and Jacuzzi Brands from February 2017 to February 2019. Prior to joining Apollo, Mr. Wallach was a member of the Financial Sponsors Investment Banking group at Barclays Capital. Mr. Wallach graduated with distinction as an Ivey scholar from the Richard Ivey School of Business at the University of Western Ontario with a B.A. in Honors Business Administration. We believe Mr. Wallach is qualified to serve as a member of our board of directors because of his extensive financial services experience, industry expertise, investment experience and board experience.

***Johannes Worsoe*** will be appointed a member of our board of directors in connection with this offering, following our Corporate Conversion. Mr. Worsoe is an alumnus of the University of Phoenix and currently serves as the Chief Financial Officer of Apollo Asset Management, a position he has held since 2022. Prior to joining Apollo, Mr. Worsoe held various positions with Mitsubishi UFJ Financial Group ("MUFG") Americas Holdings and its predecessor entities, stretching back to 2001. Most recently, he served as Chief Financial Officer of the Americas from 2016 to 2021 and Americas Head of Investment Banking and Markets from 2013 to 2016. Prior to his time with MUFG, Mr. Worsoe held capital markets, private banking and other investment related roles in Denmark, Spain and the United States. Currently, Mr. Worsoe also serves as the Vice Chair of the board of RoundAbout Theatre Company and as an advisory board member of the Mount Sinai Department of Dermatology. Mr. Worsoe holds a Bachelor of Science in Business Management from the University of Phoenix and a Master of Business Administration from the University of Southern California. He is also a graduate of the Danish Banking School and has attended executive leadership programs at Harvard Business School. We believe Mr. Worsoe is qualified to serve as a member of our board of directors because of his experience as a University of Phoenix student as well as his extensive executive experience, financial services experience and investment experience.

**Senior Management** 

The following table sets forth the name, age and position of additional members of our senior management as of the date of this prospectus.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Age** | **Position** |
|  Steven Gross |  | 65 | Chief Marketing Officer |
|  Eric Rizzo |  | 54 | Senior Vice President, Government Affairs |
|  Jamie L. Smith |  | 52 | Chief Information Officer |
|  Ruth Veloria |  | 57 | Chief Strategy and Customer Officer |

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***Steven Gross*** has served as Chief Marketing Officer of the University since August 2019. Prior to joining the University, Mr. Gross served as Chief Executive Officer of Calvert Education from February 2015 to July 2019. Earlier in his career, Mr. Gross served as Divisional Global Chief Marketing officer at Pearson and he served in several marketing leadership roles at Lexis Nexis, Arch Wireless and Pepsi. Mr. Gross holds a Bachelor of Arts in Economics and Political Science from State University of New York at Albany and a Master of Business Administration from The Wharton School of the University of Pennsylvania.

***Eric Rizzo*** has served as Senior Vice President, Government Affairs of the University since November 2019. Prior to joining the University, Mr. Rizzo served as Director, Government Affairs at Mizuho Bank Ltd. from December 2017 to November 2019. Earlier in his career, Mr. Rizzo served as Vice President, Government Affairs Officer at Fifth Third Bancorp from June 2011 to November 2017 and Assistant Vice President, Government Affairs at Farmers Insurance Group from April 2002 to May 2011. Mr. Rizzo began his public policy career as a legislative aide in the U.S. House of Representatives. Mr. Rizzo holds a Bachelor of Science in Marketing and Business Communications from Bentley University.

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***Jamie L. Smith*** has served as Chief Information Officer of the University since April 2018. Prior to joining the University, Mr. Smith served as Chief Information Officer at ServiceMaster Global Holdings from February 2014 to March 2018. Earlier in his career, Mr. Smith served in a variety of roles in leading organizations such as Nissan, IBM and PriceWaterhouseCoopers LLP. Mr. Smith holds a Bachelor of Arts in Business Administration from Iowa State University.

***Ruth Veloria*** has served as Chief Strategy and Customer Officer of the University since September 2017. While at the University, Ms. Veloria has also held other roles such as Executive Dean, School of Business from September 2014 until September 2017 and Senior Vice President of Student Experience from September 2011 until September 2014. Prior to joining the University, Ms. Veloria served as Chief of Staff to the President and Chief Operating Officer of AEG from June 2009 to September 2011. Earlier in her career, Ms. Veloria served as Vice President, Strategy and Vice President, Call Center Operations for Charles Schwab & Co. and various roles at strategic consulting firms such as Booz Allen and Hamilton and the Boston Consulting Group. Ms. Veloria holds a Bachelor of Arts in Chemistry from New College at the University of Oxford in the U.K. and a Master of Business Administration in Finance, Marketing and Organizational Behavior from the Kellogg School of Management at Northwestern University.

**Family Relationships** 

There are no family relationships among our directors and executive officers.

**Controlled Company** 

We have applied to list our common stock on the NYSE. As the Apollo Stockholder will beneficially own approximately % of the voting power of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full) upon the completion of this offering, we will be considered a "controlled company" for the purposes of the NYSE's rules and corporate governance standards. So long as we remain a "controlled company," the Apollo Stockholder will have the ability to control matters requiring approval by our stockholders, including the election of directors, amendments to our certificate of incorporation and major corporate transactions. As a "controlled company," we will be permitted to, and we intend to, elect not to comply with certain corporate governance requirements, including (i) those that would otherwise require our board of directors to have a majority of independent directors, (ii) those that would require that we establish a compensation committee composed entirely of independent directors and (iii) those that would require that we have a nominating and corporate governance committee composed entirely of independent directors. Accordingly, you will not have the same protections afforded to stockholders of companies that are subject to all of these corporate governance requirements. In the event that we cease to be a "controlled company" and our shares of common stock continue to be listed on the NYSE, we will be required to comply with these provisions within the applicable transition periods.

**Director Independence** 

While we are a "controlled company," we are not required to have a majority of independent directors. As allowed under the applicable rules and regulations of the SEC and the NYSE, we intend to phase in compliance with the heightened independence requirements prior to the end of the one-year transition period after we cease to be a "controlled company." Upon consummation of this offering, we expect our independent directors, as such term is defined by the applicable rules and regulations of the NYSE, will be Andrew Bird, Jeffrey Denham and John Sizer. We expect that Peter Cohen will become an independent director, as such term is defined by the applicable rules and regulations of the NYSE, in January 2026.

**Board Composition** 

Upon the consummation of this offering, our board of directors will consist of 10 members. We intend to avail ourselves of the "controlled company" exception under the NYSE rules, which eliminates the requirements

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that we have a majority of independent directors on our board of directors and that we have a compensation committee and a nominating/corporate governance committee composed entirely of independent directors. We will be required, however, to have an audit committee with one independent director during the 90-day period beginning on the date of effectiveness of the registration statement of which this prospectus is a part. After such 90-day period and until one year from the date of effectiveness of the registration statement, we will be required to have a majority of independent directors on our audit committee. Thereafter, we will be required to have an audit committee composed entirely of independent directors.

If at any time we cease to be a "controlled company" under the NYSE rules, the board of directors will take all action necessary to comply with the applicable NYSE rules, including appointing a majority of independent directors to the board of directors and establishing certain committees composed entirely of independent directors, subject to a permitted "phase-in" period.

Upon the consummation of this offering, our board of directors will be divided into three classes. The members of each class will serve staggered, three-year terms (other than with respect to the initial terms of the Class I and Class II directors, which will be one and two years, respectively). Upon the expiration of the term of a class of directors, directors in that class will be elected for three-year terms at the annual meeting of stockholders in the year in which their term expires. Upon consummation of this offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Peter Cohen, Itai Wallach and Johannes Worsoe will be Class I directors, whose initial terms will expire
at the fiscal 2026 annual meeting of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Andrew Bird, Jeffrey Denham and Adnan A. Nisar will be Class II directors, whose initial terms will
expire at the fiscal 2027 annual meeting of stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Theodore Kwon, Chistopher Lynne, Martin H. Nesbitt and John Sizer will be Class III directors, whose
initial terms will expire at the fiscal 2028 annual meeting of stockholders.

Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of our directors. At each annual meeting, our stockholders will elect the successors to one class of our directors. This classification of our board of directors may have the effect of delaying or preventing changes in control.

The authorized number of directors may be increased or decreased by our board of directors in accordance with our certificate of incorporation. At any meeting of the board of directors, except as otherwise required by law, a majority of the total number of directors then in office will constitute a quorum for all purposes, provided that for so long as Apollo and its affiliates, including the Apollo Stockholder, beneficially own at least 5% of the voting power of our outstanding common stock and at least one board member is an Apollo Board Nominee, a quorum shall include at least one Apollo Board Nominee.

The Apollo Stockholder has the right, at any time until Apollo and its affiliates, including the Apollo Stockholder, no longer beneficially own at least 5% of the voting power of our outstanding common stock, to nominate a number of directors (the "Apollo Board Nominees") comprising a percentage of the board in accordance with their beneficial ownership of the voting power of our outstanding common stock (rounded up to the nearest whole number), except that if Apollo and its affiliates, including the Apollo Stockholder, beneficially own more than 50% of the voting power of our outstanding common stock, the Apollo Stockholder will have the right to nominate a majority of the directors.

The Apollo Stockholder will have the right to nominate six Apollo Board Nominees as of the closing of this offering. As of the date of this prospectus, Theodore Kwon, Itai Wallach and Johannes Worsoe are the Apollo Board Nominees.

Vistria has the right, at any time until the Vistria Stockholder and its affiliates no longer beneficially own at least 5% of the voting power of our outstanding common stock, to nominate a number of directors (the "Vistria Board Nominees") comprising a percentage of the board in accordance with their beneficial ownership of the voting power of our outstanding common stock (rounded up to the nearest whole number).

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Vistria will have the right to nominate two Vistria Board Nominees as of the closing of this offering. As of the date of this prospectus, Martin Nesbitt and Adnan Nisar are the Vistria Board Nominees.

Upon the consummation of this offering, Theodore Kwon will serve as chairman of our board of directors.

**Board Committees** 

Following the completion of this offering, the board committees will include an audit committee, a compensation committee, a nominating and corporate governance committee and a student outcome advisory committee. Each committee of our board will consist of at least two directors. For so long as Apollo and its affiliates, including the Apollo Stockholder, beneficially own at least 5% of the voting power of our outstanding common stock, at least one Apollo Board Nominee will be entitled to be a member of each committee of our board of directors, other than the audit committee, subject to compliance with applicable law and the rules and regulations of the NYSE. For so long as we are a "controlled company" within the meaning of the NYSE rules and the Vistria Stockholder and its affiliates beneficially own at least 5% of the voting power of our outstanding common stock, at least one Vistria Board Nominee will be entitled to be a member of each committee of our board of directors of which an Apollo Board Nominee is a member, other than the audit committee, subject to compliance with applicable law and the rules and regulations of the NYSE.

*Audit Committee* 

Following the consummation of this offering, our audit committee will consist of Peter Cohen, Jeffrey Denham and John Sizer, with John Sizer serving as chair of the committee. The NYSE rules allow us to phase in an independent audit committee. We will be required to have an audit committee with one independent director by the date we list our shares of common stock on the NYSE. Within 90 days of the date of effectiveness of the registration statement of which this prospectus is a part, we will be required to have a majority of independent directors on our audit committee. Within one year of the date of effectiveness of the registration statement and thereafter, we will be required to have an audit committee composed entirely of independent directors. Our board of directors has determined that John Sizer qualifies as an "audit committee financial expert" as such term is defined in Item 407(d)(5) of Regulation S-K and that John Sizer and Jeff Denham are independent as defined in Rule 10A-3 of the Exchange Act and under the listing standards. We expect that Peter Cohen will become an independent director for purposes of the Audit Committee in January 2026. The principal duties and responsibilities of our audit committee will be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to prepare the annual audit committee report to be included in our annual proxy statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor our accounting and financial reporting processes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor the integrity of our financial statements and internal control system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor the independence, retention, performance and compensation of our independent registered
public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor the performance, appointment and retention of our internal audit department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to discuss, oversee and monitor policies with respect to risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor our compliance with legal and regulatory matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee and monitor our cybersecurity, information and technology security and data privacy strategies and
policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to provide regular reports to the board.

The audit committee will also have the authority to retain counsel and advisors to fulfill its responsibilities and duties and to form and delegate authority to subcommittees. In connection with the consummation of this offering, our board of directors will adopt a written charter for the audit committee, which will be available on our website.

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*Compensation Committee* 

Following the consummation of this offering, our compensation committee will consist of Theodore Kwon, Adnan A. Nisar and Itai Wallach, with Theodore Kwon serving as chair of the committee. The principal duties and responsibilities of the compensation committee will be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review, evaluate and make recommendations to the full board of directors regarding our compensation
policies and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review and approve the compensation of our chief executive officer, other executive officers and key
employees, including all material benefits, option or stock award grants and perquisites and all material employment agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review and recommend to the board of directors development plans for other key corporate positions as shall
be deemed necessary from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review and make recommendations to the board of directors with respect to our incentive compensation plans
and equity-based compensation plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to administer incentive compensation and equity-related plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review and make recommendations to the board of directors with respect to the financial and other
performance targets that must be met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee our human capital management policies, including policies related to talent development; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to prepare an annual compensation committee report and take such other actions as are necessary and consistent
with the governing law and our organizational documents.

We intend to avail ourselves of the "controlled company" exception under the NYSE rules which exempts us from the requirement that we have a compensation committee composed entirely of independent directors. In connection with the consummation of this offering, our board of directors will adopt a written charter for the compensation committee, which will be available on our website.

*Nominating and Corporate Governance Committee* 

Following the consummation of this offering, our nominating and corporate governance committee will consist of Andrew Bird, Theodore Kwon and Adnan A. Nisar, with Andrew Bird serving as chair of the committee. The principal duties and responsibilities of the nominating and corporate governance committee will be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to identify candidates qualified to become directors of the Company, consistent with criteria approved by our
board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to recommend to our board of directors nominees for election as directors at the next annual meeting of
stockholders or a special meeting of stockholders at which directors are to be elected, as well as to recommend directors to serve on the other committees of the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to recommend to our board of directors candidates to fill vacancies and newly created directorships on the
board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to develop and recommend to our board of directors guidelines setting forth corporate governance principles
applicable to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to identify best practices and recommend corporate governance principles, including giving proper attention
and making effective responses to stockholder concerns regarding corporate governance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to review and recommend to our board of directors a succession plan for the chief executive officer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to oversee the evaluation of our board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to set and review the compensation of non-executive members of our board of directors.

We intend to avail ourselves of the "controlled company" exception under the NYSE rules which exempts us from the requirement that we have a nominating and corporate governance committee composed entirely of independent directors. In connection with the consummation of this offering, our board of directors will adopt a written charter for the nominating and corporate governance committee, which will be available on our website.

*Student Outcome Advisory Committee* 

Following the consummation of this offering, our student outcome advisory committee will consist of Andrew Bird, Peter Cohen, Jeffrey Denham, Christopher Lynne, John Sizer and Johannes Worsoe, with Peter Cohen serving as chair of the committee. The student outcome advisory committee will be tasked with reviewing, identifying and recommending initiatives and industry best practices to improve student outcome metrics for the University.

**Code of Conduct and Ethics** 

Upon the consummation of this offering, our board of directors will adopt an amended code of conduct and ethics that will apply to all of our directors, officers and employees and is intended to comply with the relevant listing requirements for a code of conduct as well as qualify as a "code of ethics" as defined by the rules of the SEC. The code of conduct and ethics will contain, as it does today, general guidelines for conducting our business consistent with the highest standards of business ethics. We intend to disclose future amendments to certain provisions of our code of conduct and ethics, or waivers of such provisions applicable to any principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions, and our directors, on our website at . Following the consummation of this offering, the code of conduct and ethics will be available on our website.

**Board Leadership Structure and Board's Role in Risk Oversight** 

The board of directors has an oversight role, as a whole and also at the committee level, in overseeing management of its risks. The board of directors will regularly review information regarding our credit, liquidity and operations, as well as the risks associated with each. The board of directors also plays an active role in monitoring and overseeing environmental, social and governance risks, as well as cybersecurity and IT risks, including those that arise in connection with our relationships with service providers, and receives regular reports from management regarding such risks and our controls and procedures relating to such risks. Following the completion of this offering, the compensation committee of the board of directors will be responsible for overseeing the management of risks relating to employee compensation plans and arrangements and the audit committee of the board of directors will oversee the management of financial and cybersecurity risks. While each committee will be responsible for evaluating certain risks and overseeing the management of such risks, the entire board of directors will be regularly informed through committee reports about such risks.

**Clawback Policy** 

In connection with this offering, we will adopt a policy regarding the recovery of erroneously awarded compensation in accordance with Rule 10D-1 of the Exchange Act and applicable listing standards.

**Compensation Committee Interlocks and Insider Participation** 

We did not have a compensation committee during the last completed fiscal year. Compensation of our executive officers during the last completed fiscal year was determined by the University's board of trustees and the compensation committee of the board of directors of AEG. None of our executive officers serves, or in the past year has served, as a member of the board of directors or compensation committee of any entity (excluding our subsidiaries) that has one or more executive officers serving on our board of directors or compensation committee.

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**EXECUTIVE COMPENSATION** 

**Summary Compensation Table** 

Our named executive officers ("NEOs") for our fiscal year ended August 31, 2024 are our principal executive officer and our next two most highly compensated executive officers for such year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Christopher Lynne, President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raghu Krishnaiah, Chief Operating Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cheryl Naumann, Chief Human Resources Officer

The following table provides information regarding the compensation of our NEOs during the fiscal year ended August 31, 2024.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal<br>Position** | **Fiscal<br>Year** | **Salary<br>($)** | **Bonus<br>($)<sup>(1)</sup>** | **Stock<br>Awards<br>($)** | **Option<br>Awards<br>($)** | **Non-equity<br>Incentive<br>Compensation<br>Plan<br>($)<sup>(2)</sup>** | **Change in<br>Pension and<br>Nonqualified<br>Deferred<br>Compensation<br>Earnings ($)** | **All Other<br>Compensation<br>($)<sup>(3)</sup>** | **Total<br>($)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Christopher Lynne,<br> President | 2024 | 854967 | 472611 | – |  | 1712000 | – | 240757 | 3280335 |
| &nbsp;&nbsp;&nbsp;&nbsp; Raghu Krishnaiah,<br> Chief Operating Officer | 2024 | 464977 | 139478 | – |  | 557914 | – | 366118 | 1528487 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cheryl Naumann,<br> Chief Human Resources Officer | 2024 | 408868 | 122648 | – |  | 490590 | – | 340025 | 1362131 |

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(1) The amount shown represents a special discretionary bonus paid under The University of Phoenix, Inc. Bonus
Plan (the "Bonus Plan") to each NEO for exceeding the maximum fiscal year 2024 financial targets for Bonus Plan EBITDA and Bonus Plan Revenue (each as defined below) by 21.6% and 3.1%, respectively.

(2) The amounts shown for each NEO reflect the annual cash bonuses paid under the Bonus Plan for the fiscal year
ended August 31, 2024. The performance metrics for the Bonus Plan for fiscal year 2024 were equally weighted (at 50% each) based on the University's EBITDA (as determined for the Bonus Plan ("Bonus Plan EBITDA")) and the
University's revenue (as determined for the Bonus Plan ("Bonus Plan Revenue")). Threshold and target Bonus Plan EBITDA and Bonus Plan Revenue performance goals were established by AEG's compensation committee along with their
corresponding payout opportunities. In addition, each NEO is eligible for a bonus upside payout (up to maximum multiplier shown below), which is achieved when full-year performance of Bonus Plan EBITDA and Bonus Plan Revenue each exceed their
respective target; but, from time to time, supplemental performance conditions may be implemented. If such supplemental performance conditions are not achieved, no bonus upside payout will occur, regardless of whether Bonus Plan EBITDA or Bonus Plan
Revenue exceed their respective targets. The annual target bonus (as a percent of base salary) for each of Messrs. Lynne and Krishnaiah and Ms. Naumann under the Bonus Plan for fiscal year 2024 was 100%, 60%, and 60%, respectively.

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The following tables outline the Bonus Plan EBITDA and Bonus Plan Revenue performance objectives and the respective payout multipliers for fiscal year 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Below Threshold** | **Threshold** | **Target** | **Maximum** |
|  Bonus Plan EBITDA | < $174 million | $174 million | $193 million | $212 million |
|  Payout Multiplier | No payout | 50% | 100% | 200% |
|  | **Below Threshold** | **Threshold** | **Target** | **Maximum** |
|  Bonus Plan Revenue | < $833 million | $833 million | $877 million | $921 million |
|  Payout Multiplier | No payout | 50% | 100% | 200% |

---

Payout percentages are linearly interpolated for performance in between levels. In fiscal year 2024, the University exceeded maximum Bonus Plan EBITDA and Bonus Plan Revenue performance objectives, with actual Bonus Plan EBITDA of $255.4 million and Bonus Plan Revenue of $950 million. As a result, the NEOs earned payouts of 200% of their targets. Bonus Plan EBITDA was determined by adding back to Adjusted EBITDA the expense for the University's Bonus Plan of $26.39 million. Bonuses were paid to each of our NEOs in October 2024.

(3) Amounts under "All Other Compensation" for fiscal year 2024 consist of the following payments we
paid to or on behalf of the NEOs.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Fiscal<br>Year** | **Dividends for<br>Vested Stock<br>Options**<br>**($)<sup>(a)</sup>** | **University Match**<br>**Under 401(k)<br>Plan**<br>**($)<sup>(b)</sup>** | **Executive**<br>**Physical Fees<br>($)** | **Other<br>($)<sup>(c)</sup>** |
|  Christopher Lynne | 2024 | 232324 | 6900 | 1425 | 108 |
|  Raghu Krishnaiah | 2024 | 356260 | 6900 | 2850 | 108 |
|  Cheryl Naumann | 2024 | 333017 | 6900 |  | 108 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents University dividends paid on March 22, 2024 for vested stock options with a strike price below
$10.00 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The University provides the NEOs with certain customary retirement and health and welfare benefits, which are
in line with those offered to other groups of University employees, and which comprise a modest portion of the NEO's compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Represents payments for the medical subscription plan fee.

None of our NEOs received grants of any equity awards during the fiscal year ended August 31, 2024, as their grants in the preceding fiscal year were intended to cover multiple years.

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**2024 Outstanding Equity Awards At Fiscal Year-End** 

The following table details the outstanding equity awards held by our NEOs as of August 31, 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** |
|  | | **# of Securities Underlying<br>Unexercised Options** | **# of Securities Underlying<br>Unexercised Options** | | | |
| **Name** |<br>**Grant Date** | **Exercisable<br>(#)** | **Unexercisable**<br>**(#)** |<br>**Equity Incentive Plan<br>Awards; # of Securities<br>Underlying<br>Unexercised/Unearned<br>Options**<br>**(#)<sup>(1)</sup>** |<br>**Option<br>Exercise<br>Price<br>($)<sup>(2)</sup>** |<br>**Option<br>Expiration<br>Date** |
|  Christopher Lynne | 11/12/2018 | 115584 |  |  | 5.23 | 11/12/2028 |
| <sup>(3)</sup> | 11/17/2021 |  |  | 75260 | 11.04 | 8/31/2026 |
| <sup>(4)</sup> | 2/17/2023 | 184800 |  | 92400 | 10.61 | 2/17/2033 |
| <sup>(5)</sup> | 2/17/2023 |  |  | 277200 | 10.61 | 8/31/2030 |
|  Raghu Krishnaiah | 8/30/2017 | 161820 |  |  | 3.79 | 8/30/2027 |
|  | 1/18/2018 | 15424 |  |  | 3.79 | 1/18/2028 |
| <sup>(6)</sup> | 11/17/2021 |  |  | 62782 | 11.04 | 8/31/2026 |
| <sup>(7)</sup> | 2/17/2023 | 41068 |  | 20534 | 10.61 | 2/17/2033 |
| <sup>(8)</sup> | 2/17/2023 |  |  | 61602 | 10.61 | 8/31/2030 |
|  Cheryl Naumann | 8/30/2017 | 150260 |  |  | 3.79 | 8/30/2027 |
|  | 1/18/2018 | 11568 |  |  | 3.79 | 1/18/2028 |
|  | 2/6/2019 | 3852 |  |  | 5.23 | 2/6/2029 |
| <sup>(9)</sup> | 11/17/2021 |  |  | 58883 | 11.04 | 8/31/2026 |
| <sup>(10)</sup> | 2/17/2023 | 41068 |  | 20534 | 10.61 | 2/17/2033 |
| <sup>(11)</sup> | 2/17/2023 |  |  | 61602 | 10.61 | 8/31/2030 |

---

(1) Each of the stock option awards was granted under the University Equity Plan. Awards shown in this column
remain subject to applicable performance-based vesting conditions. Currently, only the awards with a vesting date of August 31, 2025 remain subject to performance-based vesting conditions.

(2) All stock option awards were granted with a per share exercise price equal to the fair market value of one
share of common stock of University of Phoenix, Inc. on the date of grant. The exercise price shown reflects adjustments from the original exercise price for extraordinary dividends through August 31, 2024.

(3) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2026, provided Mr. Lynne remains continuously employed in active service by the University through the closing date.

(4) The shares subject to the option become vested and exercisable in three equal annual installments beginning
on August 31, 2023, provided Mr. Lynne remains continuously employed in active service by the University as of each such vesting date and specified performance targets are achieved. With respect to such award, 92,400 options have a vesting
date of August 31, 2025, subject to applicable time- and performance- based vesting conditions.

(5) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2030, provided Mr. Lynne remains continuously employed in active service by the University through the closing date of the Change in Control.

(6) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2026, provided Mr. Krishnaiah remains continuously employed in active service by the University through the closing date of the Change in Control.

(7) The shares subject to the option become vested and exercisable in three equal annual installments beginning
on August 31, 2023, provided Mr. Krishnaiah remains continuously employed in active service by the University as of each such vesting date and specified performance targets are achieved. With respect to such award, 20,534 options have a
vesting date of August 31, 2025, subject to applicable time- and performance- based vesting conditions.

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(8) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2030, provided Mr. Krishnaiah remains continuously employed in active service by the University through the closing date of the Change in Control.

(9) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2026, provided Ms. Naumann remains continuously employed in active service by the University through the closing date of the Change in Control.

(10) The shares subject to the option become vested and exercisable in three equal annual installments beginning
on August 31, 2023, provided Ms. Naumann remains continuously employed in active service by the University as of each such vesting date and specified performance targets are achieved. With respect to such award, 20,534 options have a
vesting date of August 31, 2025, subject to applicable time- and performance- based vesting conditions.

(11) The shares subject to the option become vested and exercisable in full upon the closing date of a Change in
Control if the Change in Control occurs on or before August 31, 2030, provided Ms. Naumann remains continuously employed in active service by the University through the closing date of the Change in Control.

**Executive Employment Arrangements** 

We have not entered into employment agreements with any of the NEOs. Mr. Lynne and Mr. Krishnaiah entered into an offer letter in connection with their employment, which generally provides that the NEO will serve as an at-will employee and will be offered compensation, including base salary, annual bonus target and equity awards, commensurate with his position at the University, as well as other benefits, including health and welfare benefits and participation in the University's 401(k) Plan, that are offered to employees of the University generally. We did not enter into an offer letter with Ms. Naumann in connection with her promotion to Chief Human Resources Officer.

***Christopher Lynne***

In connection with his promotion to President, we entered into an offer letter with Mr. Lynne on December 15, 2022, which provides for his at-will employment, an initial annual base salary of $820,000 ($856,000 as of the end of our 2024 fiscal year), a performance bonus opportunity with a target amount equal to 100% of his base salary (up to a maximum payout equal to 200% of his base salary), employee benefits and an initial one-year cash long-term incentive award commensurate with the position of President and to be determined by the University's board of trustees.

***Raghu Krishnaiah***

We entered into an offer letter with Mr. Krishnaiah on August 28, 2015, which provides for his at-will employment, an initial annual base salary of $365,000 ($464,928 as of the end of our 2024 fiscal year), a performance bonus opportunity with an initial target amount equal to 50% of his base salary (60% as of the end of our 2024 fiscal year) (up to a maximum payout equal to 200% of his target bonus (120% as of the end of our 2024 fiscal year)), employee benefits and an initial annual long-term equity grant equal to $350,000. Mr. Krishnaiah's initial offer letter also included a $150,000 sign-on bonus and reimbursement for two months of COBRA benefit expenses to help bridge the gap between University benefit plan eligibility.

***Cheryl Naumann***

Ms. Naumann is an at-will employee of the University, and in connection with her promotion to Chief Human Resources Officer, her annual base salary was increased to $300,000 ($408,825 as of the end of our 2024 fiscal year) and her performance bonus opportunity was increased to a target amount equal to 50% of her base salary (60% as of the end of our 2024 fiscal year) (up to a maximum payout equal to 200% of her target bonus (120% as of the end of our 2024 fiscal year)). Ms. Naumann was also offered employee benefits and received an initial option grant commensurate with the position of Chief Human Resources Officer.

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**Payments upon Termination; Change in Control** 

***Severance Plan***

Each of our NEOs participates in The University of Phoenix, Inc. Senior Executive Severance Pay Plan, as Amended and Restated Effective May 17, 2023 (the "Severance Plan"). The Severance Plan provides that each NEO will be entitled to the following payments or benefits upon a termination by the University other than a "termination with cause" or due to the NEO's death or disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash severance equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of Mr. Lynne, (a) 18 months' base salary plus (b) one times the average of the
annual bonuses earned by the NEO for the three fiscal years immediately preceding the year in which involuntary termination occurs (or, if shorter, from the time the NEO was employed with the University) ("Average Annual Bonus"), to be
paid in a series of substantially equal payments over 18 months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of Mr. Krishnaiah and Ms. Naumann, (a) 12 months' salary plus (b) 50% of the
NEO's Average Annual Bonus, to be paid in a series of substantially equal payments over 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To the extent an NEO participated in our health care plans prior to the NEO's termination, a lump sum
payment in an amount equal to the premium cost of continued health, dental and vision coverage under COBRA for the NEO, NEO's spouse and eligible dependents, for the period of time the NEO receives their cash severance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Outplacement services, as determined by the Severance Plan administrator.

Receipt of the payments and benefits under the Severance Plan is subject to the NEO's timely execution, delivery and non-revocation of a complete and permanent general release of all claims against the University and its affiliates and related parties, which also includes certain confidentiality, non-solicitation, non-disparagement and non-compete covenants.

For purposes of the Severance Plan, a "termination for cause" generally means a termination that is the result of (i) repeated dereliction of the material duties and responsibilities of the NEO's position with the University; (ii) misconduct, insubordination or failure to comply with University policies governing employee conduct and procedures; (iii) excessive lateness or absenteeism; (iv) conviction of or pleading guilty or *nolo contendere* to any felony involving theft, embezzlement, dishonesty or moral turpitude; (v) commission of any act of fraud against, or the misappropriation of property belonging to, the University; (vi) commission of any act of dishonesty in connection with the NEO's responsibilities as an employee that is intended to result in the NEO's personal enrichment or the personal enrichment of the NEO's family or others; (vii) any other misconduct adversely affecting the business or affairs of the University; or (viii) a material breach of any agreement the NEO may have at the time with the University, including (without limitation) any proprietary information, non-disclosure or confidentiality agreement.

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In addition, an NEO will not be entitled to severance payments or benefits under the Severance Plan if the NEO fails to accept an alternate position offered by the University if (i) the principal place of employment for such alternate position is less than 25 miles from the NEO's former principal place of employment with the University; (ii) the NEO's base pay and annual bonus opportunity in the alternate position are not less than 90% of the NEO's base pay and annual bonus opportunity, as applicable, in the former position with the University; or (iii) the Severance Plan administrator has determined, in its sole discretion prior to the time the NEO is offered the alternate position, that the alternate position will not result in a material reduction in the NEO's duties and responsibilities.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Benefit** | **Termination w/o Cause<br>($)** | **Change in Control<br>($)** | **Death or<br>Disability<br>($)** |
|  Christopher Lynne | Cash Severance | 1902608<sup>(1)</sup> |  |  |
|  | <br> COBRA Premium<br>Reimbursement | <br> 34443<br><sup>(2)</sup>  |  |  |
|  | <br> Outplacement | <br> 5200<br><sup>(3)</sup>  |  |  |
|  | <br> Equity Acceleration |  | <br> 3152836<br><sup>(4)</sup>  |  |
|  <br> Raghu Krishnaiah | <br> Cash Severance | <br> 601208<br><sup>(1)</sup>  |  |  |
|  | <br> COBRA Premium<br>Reimbursement | <br> 22862<br><sup>(2)</sup>  |  |  |
|  | <br> Outplacement | <br> 5200<br><sup>(3)</sup>  |  |  |
|  | <br> Equity Acceleration |  | <br> 1010617<br><sup>(4)</sup>  |  |
|  <br> Cheryl Naumann | <br> Cash Severance | <br> 526653<br><sup>(1)</sup>  |  |  |
|  | <br> COBRA Premium<br>Reimbursement | <br> 14751<br><sup>(2)</sup>  |  |  |
|  | <br> Outplacement | <br> 5200<br><sup>(3)</sup>  |  |  |
|  | <br> Equity Acceleration |  | <br> 984376<br><sup>(4)</sup>  |  |

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(1) Represents an amount equal to the product of (a) 12 months (18 months for Mr. Lynne) of the
executive's annual base salary, plus (b) the average annual bonus amount for the three prior fiscal years (which, in this case, is fiscal years 2021, 2022, and 2023), payable in equal installments over 12 months (18 months for
Mr. Lynne).

(2) Represents an amount equal to the product of (a) the amount of monthly premiums of the
executive's group health plan, including coverage for the participant's eligible dependents, if any, that the University paid immediately prior to the termination date, and (b) the number of months of severance base pay such
executive is entitled to (18 months for Mr. Lynne and 12 for each of Mr. Krishnaiah and Ms. Naumann), payable in a lump-sum.

(3) Represents outplacement benefits determined by the Plan Administrator pursuant to the Severance Plan.
Amounts assume $5,200 worth of outplacement services.

(4) Amounts reflect the value of unvested stock options on August 31, 2024 that would be subject to
accelerated vesting upon a change in control that occurs on August 31, 2024, based on an assumed per-share price of $17.77.

***Equity Awards***

Equity awards held by the NEOs are eligible for vesting acceleration pursuant to the applicable grant agreements. Upon a change in control, any time-based awards will accelerate and vest and become exercisable, and any performance goals for the fiscal year of the change in control occurs and any future years for which the option is eligible to vest will be deemed met and the corresponding portion of such performance-based awards

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will vest and become exercisable. For this purpose, if an NEO's employment terminates for any reason other than (x) by the University or any of its affiliates for cause or (y) by the NEO for any reason, and the closing date of the change in control occurs during the ninety (90) day period immediately following such date of termination, then immediately prior to such change in control, the options shall vest or terminate, as applicable, in accordance with the vesting terms of the options as if the NEO had remained employed through such closing date. In addition, if a change in control occurs after the end of a given fiscal year but prior to the committee's (which may be the board of trustees of the University, the compensation committee of the board of trustees of the University or such committee appointed by either of the foregoing (the "Committee")) certification of the University's annual EBITDA and annual free cash flow for such fiscal year, (x) the installment of the option that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest and become exercisable in respect of such fiscal year upon the Committee's certification, and (y) to the extent that such installment does not vest and become exercisable, it shall terminate for no consideration and become null and void as of the date of such Committee certification. This offering will not constitute a change in control for purposes of the equity awards, and therefore the awards will not be accelerated.

With respect to performance-based options, if an NEO's employment is terminated by us without "cause" or due to the NEO's death or disability in each case, not in connection with a change in control, then a prorated portion (based on the number of days that elapsed in that fiscal year) of the next installment of an award will vest and become exercisable as of the date such award was scheduled to vest, based on actual achievement of the applicable performance conditions.

For purposes of the equity awards, "cause" means a finding by the Committee of: (i) the NEO's gross negligence or willful misconduct, or willful failure to attempt in good faith to substantially perform the NEO's duties (other than due to physical or mental illness or incapacity); (ii) the NEO's conviction of, or plea of guilty or *nolo contendere* to, or confession to, (a) a misdemeanor involving moral turpitude or (b) a felony (or the equivalent of a misdemeanor involving moral turpitude or felony in a jurisdiction other than the United States); (iii) the NEO's knowingly willful material violation of the University's written policies that the Committee determines is materially detrimental to the best interests of the University; (iv) the NEO's fraud or misappropriation, embezzlement or material misuse of funds or property belonging to the University; (v) the NEO's use of alcohol or drugs that materially interferes with the performance of the NEO's duties; or (vi) willful or reckless misconduct in respect of the NEO's obligations to the University or other acts of misconduct by the NEO occurring during the course of the NEO's employment that in either case results in or could reasonably be expected to result in material damage to the property, business or reputation of the University. In order for a termination to be deemed for cause, the NEO will be given a single 15-day period to cure any of the events or occurrences described in any of clauses (i), (iii), (v) and (vi), to the extent curable. If, within six months subsequent to a termination of service for any reason other than by the University for cause, the University determines that such NEO's termination of service could have been for cause, such termination of service will be deemed to have been for cause for all purposes, and such NEO will be required to disgorge to the University all amounts received under the equity plan, any grant certificate or otherwise that would not have been payable to such NEO had such termination of service been by the University for cause.

**Management Equity Plan** 

The University Equity Plan was adopted by the University effective on May 9, 2017. The purpose of the University Equity Plan is to give the University a competitive edge in attracting, retaining and motivating employees, directors and consultants and to provide the University with a stock plan providing incentives directly related to increases in our stockholder value. Following the completion of this offering, no further awards will be granted under the University Equity Plan.

*Administration.* The Committee administers the University Equity Plan. The Committee has the authority to select individuals who will receive an award; determine the number of shares subject to an award; determine the

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terms and conditions of an award; determine the restrictions or conditions related to shares acquired upon exercising an award; determine and/or increase the vested portion of an award; prescribe the form of each grant certificate; adopt, amend, suspend, waive, alter and repeal rules, guidelines and practices relating to the University Equity Plan; correct any defect, supply any omission, reconcile any inconsistency or interpret the University Equity Plan and any award granted under the University Equity Plan; and to make all other decisions and determinations as the Committee deems necessary or advisable for the administration of the University Equity Plan.

Any action of the Committee pursuant to the authority granted to it under the University Equity Plan and any grant certificate is final, conclusive and binding on all applicable parties.

*Eligibility.* Any employees, directors, officers or consultants of the University or its subsidiaries or their respective affiliates will be eligible for awards under the University Equity Plan. The Committee has the sole and complete authority to determine who will be granted an award under the University Equity Plan.

*Number of Shares Authorized.* The University Equity Plan provides that the total number of shares of the University's common stock with respect to which awards may be granted under the University Equity Plan may not exceed 7,368,124. If, prior to the exercise of a stock option, the lapse of restrictions on restricted stock or the settlement of restricted stock unit awards, all or any portion of such awards is forfeited, lapses or terminates and consideration is not received by the grantee in respect of such award, the shares of the University's common stock covered by such portion will again be available for grants under the University Equity Plan. In addition, shares of the University's common stock issued in connection with any awards that are repurchased for no value by the University pursuant to the terms of such award or the University's Stockholders' Agreement (as defined in the University Equity Plan) will again be available for grants under the University Equity Plan. The shares of the University's common stock to be offered under the University Equity Plan will be authorized and unissued common stock, or issued common stock that will have been reacquired by the University. If there is any change in the University's corporate capitalization, the Committee may make substitutions or adjustments to the number of shares reserved for issuance under the University Equity Plan, the number of shares covered by awards then outstanding under the University Equity Plan, the performance goals or targets of any awards granted under the University Equity Plan, the exercise price of outstanding options, the options granted in connection with a Change in Control or IPO (as described below) and such other equitable substitution or adjustments as it may determine appropriate.

*Awards Available for Grant.* The Committee may grant awards of nonqualified stock options, restricted stock, restricted stock unit awards, other stock-based awards or any combination of the foregoing.

*Stock Options.* The Committee is authorized to grant options to purchase shares of the University's common stock. Each option granted under the University Equity Plan is a nonqualified option and is not intended to qualify as an incentive stock option under Section 422 of the Code. Options granted under the University Equity Plan will be subject to such terms, including the exercise price and the conditions and timing of exercise, as may be determined by the Committee and specified in the applicable award agreement. The maximum term of an option granted under the University Equity Plan will be ten years from the date of grant. Payment in respect of the exercise of an option may be made by check or bank draft, by a "net exercise" procedure effected by withholding the number of shares of the University's common stock otherwise deliverable in respect of the option having an aggregate fair market value equal to the aggregate exercise price of all shares of the University's common stock with respect to which the option is to be exercised, or the Committee may, in its discretion and to the extent permitted by law, allow such payment to be made through a broker-assisted cashless exercise mechanism following the University's IPO or by such other method as the Committee may determine to be appropriate. The Committee may in its sole discretion accelerate the vesting of any or all options, which acceleration will not affect any other terms and conditions of such awards.

*Restricted Stock.* The Committee is authorized to award restricted stock under the University Equity Plan. Awards of restricted stock will be subject to the terms and conditions established by the Committee. Restricted

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stock is common stock that generally is non-transferable and is subject to other restrictions determined by the Committee for a specified period. Unless the Committee determines otherwise or specifies otherwise in an award agreement, if the grantee terminates employment or services during the restricted period, then any unvested restricted stock is forfeited. The Committee may in its sole discretion accelerate the vesting and/or the lapse of any or all the restrictions on the restricted stock, which acceleration will not affect any other terms and conditions of such awards.

*Restricted Stock Unit Awards.* The Committee is authorized to award restricted stock unit awards. Restricted stock unit awards will be subject to the terms and conditions established by the Committee. Unless the Committee determines otherwise, or specifies otherwise in an award agreement, if the grantee terminates employment or services during the period of time over which all or a portion of the units are to be earned, then any unvested units will be forfeited. The Committee may in its sole discretion accelerate the vesting and/or the lapse of any or all the restrictions on the restricted stock unit awards, which acceleration will not affect any other terms and conditions of such awards. When the restrictions on the restricted stock unit award lapse, the grantee will receive a number of shares of our common stock equal to the number of units earned or, the Committee may in its sole discretion elect to pay such restricted stock unit award in cash equal to the fair market value of that number of shares at the expiration of the period over which the units are to be earned or at a later date selected by the Committee, or a combination of cash and shares. At the discretion of the Committee, each restricted stock unit (representing one share of the University's common stock) may be credited with dividends paid in respect of one share of the University's common stock, and such dividend may be either currently paid to the grantee or withheld for the grantee's account until the underlying award is settled, and interest may be credited on the amount of cash dividend equivalents withheld at a rate and subject to such terms as determined by the Committee.

*Other Stock-Based Awards.* The Committee is authorized to grant awards of unrestricted shares of the University's common stock, rights to receive grants of awards at a future date, other awards denominated in shares of our common stock (including, without limitation, performance shares or performance units), or awards that provide for cash payments based in whole or in part on the value or future value of shares of the University's common stock under the University Equity Plan to grantees, either alone or in tandem with other awards, under such terms and conditions as the Committee may determine.

*Transferability.* Except as otherwise provided by the Committee, no award granted under the University Equity Plan may be sold, transferred, assigned, pledged or otherwise encumbered, except by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order, and an award will be exercisable during the grantee's lifetime only by the grantee. Upon a grantee's death, the estate or other beneficiary of such deceased grantee will be subject to all the terms and conditions of the University Equity Plan and the applicable grant certificate, including the provisions relating to the termination of the right to exercise the award.

Notwithstanding the foregoing, the Committee may permit awards to be transferred by a grantee, without consideration, subject to such rules as the Committee may adopt, to (i) a spouse and/or other lineal descendants and any other person as to which such natural person is a lineal descendant; (ii) any trust or other entity solely for the benefit of any person described in clause (i) or combinations of such persons; or (iii) any other transferee as may be approved either by the Committee, or as provided in the applicable grant certificate.

*Amendment/Termination.* The Committee may, at any time, alter, amend, suspend, discontinue or terminate the University Equity Plan, provided that such action will not materially adversely affect the rights of any grantee with respect to awards previously granted under the University Equity Plan without such grantee's consent.

*Change in Control/IPO.* Immediately prior to the first to occur of a Change in Control and an IPO (each as defined in the University Equity Plan), the Chief Executive Officer of the University may allocate (and the Committee will cause to be awarded and issued) to then-active service providers of the University options with respect to a number of shares of the University's common stock no greater than the number of shares of the University's common stock that remain available for grant pursuant to the University Equity Plan. As of the date

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of this Offering, no shares of the University's common stock remain available for grant pursuant to this provision of the University Equity Plan. Such options would have (i) had an exercise price of $10, and (ii) had terms and conditions (including, without limitation, with respect to vesting) that are substantially identical to those set forth in the option grant certificate attached as an exhibit to the University Equity Plan, except that such options (x) would be vested upon grant with respect to substantially the same percentage of shares of our common stock as an option granted pursuant to such form of option grant certificate attached as an exhibit to the University Equity Plan on May 9, 2017, to a service provider of the University who remained continuously employed by the University through the date of such Change in Control or IPO, and (y) would be exercisable only upon a Change in Control or, if earlier, upon the applicable grantee's termination of employment or engagement with the University or its affiliates. No options will be granted pursuant to this provision in connection with this Offering.

*Treatment of Outstanding University Equity Plan Awards.* Upon the future vesting of outstanding restricted stock units granted under the University Equity Plan, we will issue shares of our common stock at the same ratio as described in "*Prospectus Summary—The Reorganization Transactions*." Upon the future exercise of outstanding stock options granted under the University Equity Plan, we will have the right to either issue shares of our common stock in exchange for the shares of University common stock received upon exercise at the same ratio as described above, or purchase the shares of University common stock received upon exercise for cash.

**2025 Omnibus Incentive Plan** 

In connection with this offering, our board of directors expects to adopt, and we expect our stockholders to approve, our 2025 Omnibus Incentive Plan (the "Omnibus Incentive Plan") to become effective in connection with the consummation of this offering. Following the adoption of the Omnibus Incentive Plan, we do not expect to issue additional awards under the University Equity Plan. This summary is qualified in its entirety by reference to the Omnibus Incentive Plan attached as an exhibit to the registration statement of which this prospectus forms a part. You are encouraged to read the full Omnibus Incentive Plan.

*Administration.* The compensation committee of our board of directors (the "Compensation Committee") will administer the Omnibus Incentive Plan. The Compensation Committee will have the authority to determine the terms and conditions of any agreements evidencing any awards granted under the Omnibus Incentive Plan and to adopt, alter and repeal rules, guidelines and practices relating to the Omnibus Incentive Plan. The Compensation Committee will have full discretion to administer and interpret the Omnibus Incentive Plan and to adopt such rules, regulations and procedures as it deems necessary or advisable and to determine, among other things, the time or times at which the awards may be exercised and whether and under what circumstances an award may be exercised.

*Eligibility.* Any current or prospective employees, directors, officers, consultants or advisors of the Company or its affiliates who are selected by the Compensation Committee will be eligible for awards under the Omnibus Incentive Plan. Except as otherwise required by applicable law or regulation or stock exchange rules, the Compensation Committee will have the sole and complete authority to determine who will be granted an award under the Omnibus Incentive Plan.

*Number of Shares Authorized*. Pursuant to the Omnibus Incentive Plan, we have reserved an aggregate of shares of our common stock for issuance of awards to be granted thereunder. In addition, the number of shares of our common stock reserved for issuance under the Omnibus Incentive Plan will automatically increase on January 1 of each year, commencing on January 1, 2026, in an amount equal to 5% of the total number of shares of our common stock outstanding as of the immediately preceding December 31, or a lesser number of shares determined by our board of directors. No more than shares of our common stock may be issued with respect to incentive stock options under the Omnibus Incentive Plan. The maximum grant date fair value of cash and equity awards that may be awarded to a non-employee director under the Omnibus Incentive Plan during any one fiscal year, taken together with any cash fees paid to such non-employee director during such

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fiscal year, will be (i) $750,000 or (ii) $1,000,000 for the first year of service, provided that the foregoing limitation will not apply to any awards issued to a non-employee director in respect of any one-time initial equity grant upon a non-employee director's appointment to the board of directors. If any award granted under the Omnibus Incentive Plan expires, terminates, or is canceled or forfeited without being settled, vested or exercised, shares of our common stock subject to such award will again be made available for future grants. Any shares that are surrendered or tendered to pay the exercise price of an award or to satisfy withholding taxes owed, or any shares reserved for issuance, but not issued, with respect to settlement of a stock appreciation right, will not again be available for grants under the Omnibus Incentive Plan. Shares of common stock withheld by, or otherwise remitted to the Company to satisfy a participant's tax withholding obligations upon the lapse of restrictions on, or settlement of, an award will again be available for awards under the share pool.

*Change in Capitalization.* If there is a change in our capitalization in the event of a stock or extraordinary cash dividend, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of our common stock or other relevant change in capitalization or applicable law or circumstances, such that the Compensation Committee determines that an adjustment to the terms of the Omnibus Incentive Plan (or awards thereunder) is necessary or appropriate, then the Compensation Committee shall make adjustments in a manner that it deems equitable. Such adjustments may be to the number of shares reserved for issuance under the Omnibus Incentive Plan, the number of shares covered by awards then outstanding under the Omnibus Incentive Plan, the limitations on awards under the Omnibus Incentive Plan, the exercise price of outstanding options, or any applicable performance measures (including, without limitation, performance conditions and performance periods), or such other equitable substitution or adjustments as the Compensation Committee may determine appropriate.

*Awards Available for Grant.* The Compensation Committee may grant awards of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights ("SARs"), restricted stock awards, restricted stock units, other stock-based awards, other cash-based awards or any combination of the foregoing. Awards may be granted under the Omnibus Incentive Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired by the Company or with which the Company combines, which are referred to herein as "Substitute Awards." All awards granted under the Omnibus Incentive Plan will vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Compensation Committee.

*Stock Options.* The Compensation Committee will be authorized to grant options to purchase shares of our common stock that are either "qualified," meaning they are intended to satisfy the requirements of Section 422 of the Code for incentive stock options, or "non-qualified," meaning they are not intended to satisfy the requirements of Section 422 of the Code. All options granted under the Omnibus Incentive Plan shall be non-qualified unless the applicable award agreement expressly states that the option is intended to be an incentive stock option. Options granted under the Omnibus Incentive Plan will be subject to the terms and conditions established by the Compensation Committee. Under the terms of the Omnibus Incentive Plan, the exercise price of the options will not be less than the fair market value of our common stock at the time of grant (except with respect to Substitute Awards). Options granted under the Omnibus Incentive Plan will be subject to such terms, including the exercise price and the conditions and timing of exercise, as may be determined by the Compensation Committee and specified in the applicable award agreement. The maximum term of an option granted under the Omnibus Incentive Plan will be ten years from the date of grant, provided that if the term of a non-qualified option would expire at a time when trading in the shares of our common stock is prohibited by the Company's insider trading policy, the option's term shall be extended automatically until the 30th day following the expiration of such prohibition (as long as such extension shall not violate Section 409A of the Code). Payment in respect of the exercise of an option may be made in cash, by check, by cash equivalent and/or shares of our common stock valued at the fair market value at the time the option is exercised, provided that such shares are not subject to any pledge or other security interest, or by such other method as the Compensation Committee may permit in its sole discretion, including (i) in other property having a fair market value equal to the exercise price and all applicable required withholding taxes, (ii) if there is a public market for the shares of our common stock at such time, by means of a broker-assisted cashless exercise mechanism or (iii) by means of a "net

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exercise" procedure effected by withholding the minimum number of shares otherwise deliverable in respect of an option that are needed to pay the exercise price and all applicable required withholding taxes. The Compensation Committee will determine whether fractional shares of common stock will be settled in cash, other securities, or other property, or whether such fractional shares of Common Stock or any rights thereto shall be canceled, terminated, or otherwise eliminated. If, on the last day of an option period, the fair market value of the common stock exceeds the exercise price, the participant has not exercised the option, and the option has not previously expired, such option will be deemed exercised by the participant on such last day by means of a "net exercise" procedure as described above.

*Stock Appreciation Rights.* The Compensation Committee will be authorized to award SARs under the Omnibus Incentive Plan. SARs will be subject to the terms and conditions established by the Compensation Committee. A SAR is a contractual right that allows a participant to receive, in the form of either cash, shares or any combination of cash and shares, the appreciation, if any, in the value of a share over a certain period of time. An option granted under the Omnibus Incentive Plan may include SARs, and SARs may also be awarded to a participant independent of the grant of an option. SARs granted in connection with an option shall be subject to terms similar to the option corresponding to such SARs, including with respect to vesting and expiration. Except as otherwise provided by the Compensation Committee (in the case of Substitute Awards or SARs granted in tandem with previously granted options), the strike price per share of our common stock underlying each SAR shall not be less than 100% of the fair market value of such share, determined as of the date of grant and the maximum term of a SAR granted under the Omnibus Incentive Plan will be ten years from the date of grant. If on the last day of the option period (or in the case of a SAR independent of an option, the SAR period), the fair market value exceeds the applicable strike price, the participant has not exercised the SAR or the corresponding option (if applicable) has not previously expired, such SAR will be deemed to have been exercised by the participant on such last day and the Company will make the appropriate payment therefor.

*Restricted Stock.* The Compensation Committee will be authorized to grant restricted stock under the Omnibus Incentive Plan, which will be subject to the terms and conditions established by the Compensation Committee. Restricted stock is common stock that is generally non-transferable and is subject to other restrictions determined by the Compensation Committee for a specified period. Any accumulated dividends will be payable at the same time as the underlying restricted stock vests.

*Restricted Stock Unit Awards.* The Compensation Committee will be authorized to grant restricted stock unit awards, which will be subject to the terms and conditions established by the Compensation Committee. A restricted stock unit award, once vested, may be settled in a number of shares of our common stock equal to the number of units earned, in cash equal to the fair market value of the number of shares of our common stock earned in respect of such restricted stock unit award or in a combination of the foregoing, at the election of the Compensation Committee. Restricted stock units may be settled at the expiration of the period over which the units are to be earned or at a later date selected by the Compensation Committee. To the extent provided in an award agreement, the holder of outstanding restricted stock units shall be entitled to be credited with dividend equivalent payments upon the payment by us of dividends on shares of our common stock, either in cash or, at the sole discretion of the Compensation Committee, in shares of our common stock having a fair market value equal to the amount of such dividends (or a combination of cash and shares), and interest may, at the sole discretion of the Compensation Committee, be credited on the amount of cash dividend equivalents at a rate and subject to such terms as determined by the Compensation Committee, which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable at the same time that the underlying restricted stock units are settled.

*Other Stock-Based Awards.* The Compensation Committee will be authorized to grant awards of unrestricted shares of our common stock, rights to receive grants of awards at a future date, other awards denominated in shares of our common stock, or awards that provide for cash payments based in whole or in part on the value of our common stock under such terms and conditions as the Compensation Committee may determine and as set forth in the applicable award agreement.

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*Effect of a Change in Control. In* the event of a change in control (as defined in the Omnibus Incentive Plan), the Compensation Committee may in its discretion, cause any outstanding awards to be continued, substituted or assumed by the surviving corporation, accelerate the vesting of outstanding awards, and/or cancel any outstanding options or SARs and pay the holders in cash or other consideration for the value of such awards based upon the price per share of the Company's common stock received or to be received by other stockholders of the Company in connection with the transaction (it being understood that any option or SAR having a per-share exercise price or strike price equal to, or in excess of, the fair market value (as of the date specified by the Compensation Committee) of a share of the Company's common stock subject thereto may be canceled and terminated without payment or consideration therefor). Notwithstanding the above, the Compensation Committee shall exercise such discretion over the timing of settlement of any award subject to Section 409A of the Code at the time such award is granted.

*Nontransferability.* Each award may be exercised during the participant's lifetime by the participant or, if permissible under applicable law, by the participant's guardian or legal representative. No award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a participant other than by will or by the laws of descent and distribution unless the Compensation Committee permits the award to be transferred to a permitted transferee (as defined in the Omnibus Incentive Plan).

*Amendment.* The Omnibus Incentive Plan will have a term of ten years. Our board of directors may amend, suspend or terminate the Omnibus Incentive Plan at any time, subject to stockholder approval if necessary to comply with any tax, exchange rules, or other applicable regulatory requirement. No amendment, suspension or termination will materially and adversely affect the rights of any participant or recipient of any award without the consent of the participant or recipient.

The Compensation Committee may, to the extent consistent with the terms of any applicable award agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any award theretofore granted or the associated award agreement, prospectively or retroactively; provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any participant or any holder or beneficiary with respect to any award theretofore granted will not to that extent be effective without the consent of the affected participant, holder or beneficiary; and provided further that, without stockholder approval, (i) no amendment or modification may reduce the exercise price of any option or the strike price of any SAR, (ii) the Compensation Committee may not cancel any outstanding option and replace it with a new option (with a lower exercise price) or cancel any SAR and replace it with a new SAR (with a lower strike price) or, in each case, with another award or cash in a manner that would be treated as a repricing (for compensation disclosure or accounting purposes), and (iii) the Compensation Committee may not take any other action considered a repricing for purposes of the stockholder approval rules of the applicable securities exchange on which our common shares are listed. However, stockholder approval is not required with respect to clauses (i), (ii) and (iii) above with respect to certain adjustments on changes in capitalization.

*Clawback/Forfeiture.* Awards may be subject to clawback or forfeiture to the extent required by applicable law (including, without limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of the NYSE or other applicable securities exchange, or if so required pursuant to a written policy adopted by the Company or the provisions of an award agreement.

***U.S. Federal Income Tax Consequences***

*The following is a general summary of the material U.S. federal income tax consequences of the grant, exercise and vesting of awards under the Omnibus Incentive Plan and the disposition of shares acquired pursuant to the exercise or settlement of such awards and is intended to reflect the current provisions of the Code and the regulations thereunder. This summary is not intended to be a complete statement of applicable law, nor does it address foreign, state, local or payroll tax considerations. This summary assumes that all awards described in the summary are exempt from, or comply with, the requirement of Section 409A of the Code.* 

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*Moreover, the U.S. federal income tax consequences to any particular participant may differ from those described herein by reason of, among other things, the particular circumstances of such participant.* 

*Stock Options.* Holders of incentive stock options will generally incur no federal income tax liability at the time of grant or upon vesting or exercise of those options. However, the spread at exercise will be an "item of tax preference," which may give rise to "alternative minimum tax" liability for the taxable year in which the exercise occurs. If the holder does not dispose of the shares before the later of two years following the date of grant and one year following the date of exercise, the difference between the exercise price and the amount realized upon disposition of the shares will constitute long-term capital gain or loss, as the case may be. Assuming the holding period is satisfied, no deduction will be allowed to us for federal income tax purposes in connection with the grant or exercise of the incentive stock option. If, within two years following the date of grant or within one year following the date of exercise, the holder of shares acquired through the exercise of an incentive stock option disposes of those shares, the participant will generally realize taxable compensation at the time of such disposition equal to the difference between the exercise price and the lesser of the fair market value of the share on the date of exercise or the amount realized on the subsequent disposition of the shares, and that amount will generally be deductible by us for federal income tax purposes, subject to the possible limitations on deductibility under Sections 280G and 162(m) of the Code for compensation paid to executives designated in those Sections. Finally, if an incentive stock option becomes first exercisable in any one year for shares having an aggregate value in excess of $100,000 (based on the grant date value), the portion of the incentive stock option in respect of those excess shares will be treated as a non-qualified stock option for federal income tax purposes.

No income will be realized by a participant upon grant or vesting of an option that does not qualify as an incentive stock option ("a non-qualified stock option"). Upon the exercise of a non-qualified stock option, the participant will recognize ordinary compensation income in an amount equal to the excess, if any, of the fair market value of the underlying exercised shares over the option exercise price paid at the time of exercise, and the participant's tax basis will equal the sum of the compensation income recognized and the exercise price. We will be able to deduct this same excess amount for U.S. federal income tax purposes, but such deduction may be limited under Sections 280G and 162(m) of the Code for compensation paid to certain executives designated in those Sections. In the event of a sale of shares received upon the exercise of a non-qualified stock option, any appreciation or depreciation after the exercise date generally will be taxed as capital gain or loss and will be long-term gain or loss if the holding period for such shares is more than one year.

*SARs*. No income will be realized by a participant upon grant or vesting of a SAR. Upon the exercise of a SAR, the participant will recognize ordinary compensation income in an amount equal to the fair market value of the payment received in respect of the SAR. We will be able to deduct this same amount for U.S. federal income tax purposes, but such deduction may be limited under Sections 280G and 162(m) of the Code for compensation paid to certain executives designated in those Sections.

*Restricted Stock.* A participant will not be subject to tax upon the grant of an award of restricted stock unless the participant otherwise elects to be taxed at the time of grant pursuant to Section 83(b) of the Code. On the date an award of restricted stock becomes transferable or is no longer subject to a substantial risk of forfeiture, the participant will have taxable compensation equal to the difference between the fair market value of the shares on that date over the amount the participant paid for such shares, if any, unless the participant made an election under Section 83(b) of the Code to be taxed at the time of grant. If the participant made an election under Section 83(b), the participant will have taxable compensation at the time of grant equal to the difference between the fair market value of the shares on the date of grant over the amount the participant paid for such shares, if any. If the election is made, the participant will not be allowed a deduction for amounts subsequently required to be returned to us. (Special rules apply to the receipt and disposition of restricted shares received by officers and directors who are subject to Section 16(b) of the Exchange Act). We will be able to deduct, at the same time as it is recognized by the participant, the amount of taxable compensation to the participant for U.S. federal income tax purposes, but such deduction may be limited under Sections 280G and 162(m) of the Code for compensation paid to certain executives designated in those Sections.

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*Restricted Stock Units.* A participant will not be subject to tax upon the grant or vesting of a restricted stock unit award. Rather, upon the delivery of shares or cash pursuant to a restricted stock unit award, the participant will have taxable compensation equal to the fair market value of the number of shares (or the amount of cash) the participant actually receives with respect to the award. We will be able to deduct the amount of taxable compensation to the participant for U.S. federal income tax purposes, but the deduction may be limited under Sections 280G and 162(m) of the Code for compensation paid to certain executives designated in those Sections.

**Employee Stock Purchase Plan** 

The following summary describes the material terms of the Employee Stock Purchase Plan ("ESPP"), which was adopted by the Company in connection with this offering.

*Administration*. The Compensation Committee will administer the ESPP. The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of our common stock at a favorable price and upon favorable terms on specified dates during such offerings. Under the ESPP, the plan administrator has full discretion to administer and interpret the ESPP and to adopt such rules, regulations and procedures as it deems necessary or advisable and to determine, among other things, the duration, frequency, start date and end dates of the offering periods. The Company intends that the ESPP will qualify as options issued under an "employee stock purchase plan" as that term is defined in Section 423(b) of the Code.

*Eligibility*. Generally, all regular employees, including executive officers, employed by the Company or one of the Company's designated affiliates, will be eligible to participate in the ESPP, subject to Section 423(b) of the Code, and may contribute, normally through payroll deductions, an aggregate amount equal to their contribution for the purchase of the University's common stock under the ESPP. Unless otherwise determined by the plan administrator, common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to not less than the lesser of (i) 85% of the fair market value of a share of the University's common stock on the first trading date of an offering period or (ii) 85% of the fair market value of a share of the University's common stock on the date of purchase.

*Number of Shares Authorized.* Pursuant to the ESPP, we have reserved an aggregate of shares of our common stock, subject to an annual increase on January 1st of each year for a period of ten years commencing on January 1, 2026 and ending on (and including) January 31, 2035, in an amount equal to the lesser of (a) 1% of the fully-diluted number of shares of our common stock outstanding on December 31st of the immediately preceding calendar year (inclusive of the share reserve under the ESPP and the Omnibus Incentive Plan (or any successor to either of the foregoing)), (b) shares and (c) such smaller number of shares as is determined by our board of directors.

*Limitations*. Employees may have to satisfy one or more of the following service requirements before participating in the ESPP, as determined by the plan administrator, including: (i) being customarily employed for more than 20 hours per week; (ii) being customarily employed for more than five months per calendar year; or (iii) classified as an employee for tax purposes. No employee will be eligible for the grant of any purchase rights under the ESPP if immediately after such rights are granted, such employee has voting power over 5% or more of our capital stock measured by vote or value pursuant to Section 424(d) of the Code.

*Changes to Capital Structure*. In the event that there occurs a change in the Company's capital structure through such actions as a stock split, merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other similar equity restructuring transactions, the plan administrator will make appropriate adjustments to (i) the class(es) and maximum number of shares reserved under the ESPP, (ii) the class(es) and maximum number of shares by which the share reserve may increase automatically each year, (iii) the class(es) and maximum number of shares and purchase price applicable to all outstanding offerings and purchase rights and (iv) the class(es) and number of shares that are subject to purchase limits under ongoing offerings.

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*Corporate Transactions*. In the event of a corporate transaction, as defined in the ESPP, any then-outstanding rights to purchase shares under the ESPP may be assumed, continued or substituted by any surviving or acquiring entity (or its parent company). If the surviving or acquiring entity (or its parent company) elects not to assume, continue or substitute such purchase rights, then each offering period in progress will be shortened and a new purchase date will be set by the Compensation Committee, and such purchase rights will terminate immediately.

*ESPP Amendment or Termination*. Our board of directors has the authority to amend or terminate the ESPP, provided that except in certain circumstances such amendment or termination may not materially and adversely affect any outstanding purchase rights without the holder's consent. The Company must obtain shareholder approval of any amendment to the ESPP to the extent required by applicable law or listing rules.

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**DIRECTOR COMPENSATION** 

Prior to this offering, none of our directors or the members of the board of directors of AEG received any compensation for their services as a member of the board. Prior to the commencement of this offering, we expect that our board of directors will adopt a director compensation policy that will set forth the initial cash and equity compensation to be paid to our non-employee directors. Neither directors who are officers of the Company nor any director nominated by the Apollo Stockholder or the Vistria Stockholder will receive any compensation in connection with the offering or for services as directors following the offering.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

Other than compensation arrangements for our executive officers and directors (see "*Executive Compensation*" for a discussion of compensation arrangements for our named executive officers and directors) and the transactions discussed below, there were no transactions since September 1, 2023, to which we were a party or will be a party, in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amounts involved exceeded or will exceed $120,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers or holders of more than 5% of our capital stock, or any member of the
immediate family of the foregoing persons, had or will have a direct or indirect material interest.

**Policies and Procedures for Related Party Transactions** 

Upon the consummation of this offering, we will adopt a written Related Person Transactions Policy (the "Policy"), which will set forth our policy with respect to the review, approval, ratification and disclosure of all material related person transactions by our audit committee. In accordance with the Policy, our audit committee will have overall responsibility for implementation of and compliance with the Policy.

For purposes of the Policy, a "related person transaction" is a transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships) in which we were, are or will be a participant and the amount involved exceeds $120,000 and in which any related person (as defined in the policy) had, has or will have a direct or indirect material interest. A "related person transaction" does not include any employment relationship or transaction involving an executive officer and any related compensation resulting solely from that employment relationship that has been reviewed and approved by our board of directors, compensation committee or group of independent directors.

The Policy will require that notice of a proposed related person transaction be provided to our legal department prior to entry into such transaction. If our legal department determines that such transaction is a related person transaction, the proposed transaction will be submitted to our audit committee for consideration. Under the Policy, our audit committee may approve only those related person transactions that are in, or not inconsistent with, our best interests and the best interests of our stockholders. In the event that we become aware of a related person transaction that has not been previously reviewed, approved or ratified under the Policy and that is ongoing or is completed, the transaction will be promptly submitted to the audit committee so that it may determine whether to ratify, rescind or terminate the related person transaction.

The Policy will also provide that the audit committee review certain previously approved or ratified related person transactions that are ongoing to determine whether the related person transaction remains in our best interests and the best interests of our stockholders. Additionally, we will make periodic inquiries of directors and executive officers with respect to any potential related person transaction of which they may be a party or of which they may be aware.

**This Offering** 

As more fully discussed in "*Underwriting (Conflicts of Interest)—Conflicts of Interest*," Apollo Global Securities, LLC, an affiliate of Apollo, is an underwriter in this offering and will receive a portion of the underwriting discounts and commissions in connection with this offering. Affiliates of Apollo beneficially own in excess of 10% of our issued and outstanding common stock. As a result, Apollo Global Securities, LLC is deemed to have a "conflict of interest" under FINRA Rule 5121, and this offering will be conducted in compliance with the requirements of Rule 5121. See "*Underwriting (Conflicts of Interest)*."

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**UoPX Stockholders' Agreement** 

On September 21, 2017, the University and AEG entered into a Stockholders' Agreement relating to the University's management co-investment and equity awards programs. Prior to the consummation of this offering, the University, AEG, Phoenix Education Partners, Inc. and certain other parties thereto intend to enter into an amended and restated Stockholder's Agreement (the "Management Stockholders' Agreement"). The Management Stockholders' Agreement will include customary provisions which, among other things, will (a) provide for the agreement of the non-AEG stockholders to vote for candidates for the University's independent trustees nominated in accordance with the University's bylaws and to vote for other trustees of the University nominated by AEG and (b) provide restrictions on transfer and certain piggy-back registration rights in accordance with the Registration Rights Agreement (as defined below).

**Stockholders Agreement** 

On February 1, 2017, in connection with the acquisition of AEG by AP VIII Queso Holdings, L.P., Queso GP, LLC (the general partner of AP VIII Queso Holdings, L.P.), the Apollo Stockholder (which for purposes of the summary of the Stockholders Agreement, will include any affiliates of the Apollo Stockholder to who acquire shares of our common stock), TVG-I-E-AEG Holdings, LP (the "Vistria Stockholder") and the other limited partners of AP VIII Queso Holdings, L.P. entered into an amended and restated agreement of limited partnership with respect to AP VIII Queso Holdings, L.P. Concurrently with the consummation of this offering and the Corporate Conversion, such limited partnership agreement will be terminated. After the Corporate Conversion, we will be governed by a certificate of incorporation and bylaws rather than a limited partnership agreement, and we intend to enter into a stockholders agreement with the Apollo Stockholder and the Vistria Stockholder (the "Stockholders Agreement") to provide the Apollo Stockholder and its affiliates and the Vistria Stockholder and its affiliates with certain rights and obligations as described below.

The Stockholders Agreement will provide that, as long as the Vistria Stockholder and its affiliates continue to beneficially own at least 5% of our issued and outstanding common stock, the Vistria Stockholder will have the right, but not the obligation, to (a) nominate a number of directors comprising a percentage of our board of directors in accordance with its beneficial ownership of our outstanding common stock (rounded up to the nearest whole number) (at least one of whom will serve as a Class III director), (b) designate one director to the boards of directors (or similar body) of any subsidiary of the Company on which any affiliate of the Apollo Stockholder serves as a director or to which the Apollo Stockholder and its affiliates appoint any director and (c) designate one member of each committee of the board of directors (other than the audit committee) to which the Apollo Stockholder and its affiliates appoint any director.

Pursuant to the Stockholders Agreement, the Apollo Stockholder will have the right, at any time until the Apollo Stockholder and its affiliates no longer beneficially own at least 5% of our issued and outstanding common stock, to nominate a number of directors comprising a percentage of our board of directors in accordance with their beneficial ownership of our outstanding common stock (rounded up to the nearest whole number), except that if Apollo and its affiliates, including the Apollo Stockholder, beneficially own more than 50% of the voting power of our outstanding common stock, the Apollo Stockholder will have the right to nominate a majority of the directors.

Any vacancy on our board of directors in respect of an Apollo Board Nominee or Vistria Board Nominee will be filled only by individuals designated by the Apollo Stockholder and its affiliates or the Vistria Stockholder and its affiliates, as applicable, for so long as they respectively beneficially own at least 5% of our issued and outstanding common stock.

In the event that the Apollo Stockholder has nominated fewer than the total number of Apollo Board Nominees that the Apollo Stockholder is entitled to nominate or the Vistria Stockholder has nominated fewer than the total number of Vistria Board Nominees that the Vistria Stockholder is entitled to nominate, the Apollo Stockholder or the Vistria Stockholder, as applicable, will have the right, at any time, to nominate such additional nominee(s), and our board of directors will take all necessary actions, whether by increasing the size of our board of directors or otherwise, to effect the election of such additional nominee(s) to fill any existing vacancy or

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newly-created directorship. In the event that a vacancy is created at any time by the death, resignation, removal, disqualification or other cause of any Apollo Board Nominee or Vistria Board Nominee, including the failure of any Apollo Board Nominee or Vistria Board nominee to be elected as a director at a meeting of our stockholders, the Apollo Stockholder and its affiliates or the Vistria Stockholder and its affiliates, as applicable, will continue to have the right to nominate the Apollo Board Nominee or the Vistria Board Nominee, as applicable, and our board of directors will take all necessary actions, whether by increasing the size of our board of directors or otherwise, to effect the election of such additional nominee(s) to fill any existing vacancy or newly-created directorship. Nevertheless, in the event that the removal or election of any director would require the University to make any filing, notice or report, or obtain any consent, registration, approval, permit or authorization from any educational agency in order to maintain, continue or reinstate any Educational Approval (as defined in the Stockholders Agreement) presently held by the University (each, an "Educational Consent"), the University shall not be required to take any action to remove or elect, as applicable, such director until such Educational Consent has been made, obtained or is otherwise not required at the time of such director's removal or election.

The Stockholders Agreement will provide that for so long as the Apollo Stockholder and its affiliates beneficially own at least 33% of our issued and outstanding common stock, we will not, and we will cause our subsidiaries not to, take certain significant actions specified therein without the prior consent of the Apollo Stockholder, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in the size of our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the incurrence of indebtedness for borrowed money, in a single transaction or a series of related
transactions, aggregating to more than $50 million, except for (i) debt under a revolving credit facility that has previously been approved or is in existence on the date of closing of this offering or (ii) intercompany indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance of additional shares of any class of our capital stock or equity securities exceeding
$50 million in any single issuance or an aggregate amount of $100 million during a calendar year (other than any award under any stockholder approved equity compensation plan or intracompany issuance among us and our wholly owned
subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other than in the ordinary course of business with vendors, customers and suppliers, the acquisition of equity
interests or assets of any other entity, or any business, properties, assets or entities, exceeding $50 million in any single transaction or $100 million in the aggregate in any series of transactions during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other than in the ordinary course of business with vendors, customers and suppliers, the disposition of any of
our or our subsidiaries' assets or equity interests, exceeding $50 million in any single transaction or $100 million in the aggregate in any series of transactions during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hiring or terminating the Chief Executive Officer or Chief Financial Officer of the Company or the University
or designating any new Chief Executive Officer or Chief Financial Officer of the Company or the University; provided, that, the rights of the Apollo Stockholder with respect to the hiring or termination of the Chief Executive Officer (or equivalent
position) or Chief Financial Officer of the University will be subject in all respects to the requisite independence of the University's board of trustees as set forth in the bylaws of the University, including the right of the
University's board of trustees to appoint or remove the President and Chief Financial Officer of the University as set forth therein, and the parties to the Stockholders Agreement are required to take only such action as may be permissible or
appropriate under applicable law and the bylaws of the University to give effect to this consent right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• merging or consolidating with or into any other entity, or transferring (by lease, assignment, sale or
otherwise) all or substantially all of the Company's and our subsidiaries' assets, taken as a whole, to another entity, or enter into or agree to undertake any other transaction that would constitute a "change of control" as
defined in the Stockholders Agreement (other than, in each case, transactions among the Company and our wholly owned subsidiaries);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• undertaking any liquidation, dissolution or winding up of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effecting any material change in the nature of the business of the Company and its subsidiaries, taken as a
whole; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amending, modifying or repealing (whether by merger, consolidation or otherwise) any provision of our
certificate of incorporation, our bylaws or equivalent organizational documents of our subsidiaries in a manner that adversely affects any affiliates of the Apollo Stockholder.

The Stockholders Agreement will also provide that for so long that the Vistria Stockholder and its affiliates beneficially own at least 5% of our issued and outstanding common stock, we will not amend, modify or repeal (whether by merger, consolidation or otherwise) any provision of our certificate of incorporation, our bylaws or equivalent organizational documents of our subsidiaries in a manner that adversely affects any affiliates of the Vistria Stockholder without the prior consent of the Vistria Stockholder. The Stockholders Agreement also sets forth certain information rights granted to the Apollo Stockholder and the Vistria Stockholder.

**Management Consulting Agreement** 

On February 1, 2017, in connection with the acquisition of AEG, an affiliate of Apollo and an affiliate of Vistria (each, a "Management Service Provider," and together, the "Management Service Providers") entered into a management consulting agreement with AEG (as amended, the "Management Consulting Agreement") relating to the provision of certain management consulting and advisory services by the Management Service Providers to us. In exchange for the provision of such services, we were required to pay a non-refundable quarterly management consulting fee equal to $2.0 million in the aggregate annually to such Management Service Providers. On March 1, 2018, AEG entered into an amendment to the Management Consulting Agreement with the Management Service Providers, which reduced the non-refundable quarterly management consulting fee to $1.75 million in the aggregate annually. Under the Management Consulting Agreement, the management consulting fees are allocated between the Management Service Providers on a pro rata basis in proportion to their respective ownership of equity of the Company. Each Management Service Provider is permitted, at its sole discretion, to waive or defer, in full or in part, AEG's payment of the management consulting fee to such Management Service Provider. For the fiscal years ended August 31, 2022, 2023 and 2024, we paid approximately $1.5 million, $1.5 million and $1.5 million, respectively, of management consulting fees to the Management Service Provider affiliated with Apollo. For the first nine months of fiscal year 2025, we paid approximately $1.1 million of management consulting fees to the Management Service Provider affiliated with Apollo. We paid approximately $0.3 million, $0.3 million and $0.3 million of management consulting fees for the fiscal years ended August 31, 2022, 2023 and 2024, respectively, to the Management Service Provider affiliated with Vistria. We paid approximately $0.2 million of management consulting fees for the first nine months of fiscal year 2025 to the Management Service Provider affiliated with Vistria.

The Management Consulting Agreement also provides that, in connection with any transaction in which an affiliate of Apollo is providing services and receives a fee pursuant to the terms of the Transaction Fee Agreement described below, the Management Service Provider affiliated with Vistria may also provide such services and receive a pro rata portion of the fee payable in respect thereof.

The parties to the Management Consulting Agreement have agreed to terminate such agreement effective as of the pricing of this offering, and therefore no management consulting fees will accrue or be payable under the Management Consulting Agreement for periods subsequent to the pricing of this offering.

**Transaction Fee Agreement** 

In connection with the acquisition of AEG, an affiliate of Apollo entered into a transaction fee agreement (the "Transaction Fee Agreement") with AEG relating to the provision of certain transaction services in support of the acquisition of AEG and future acquisitions. The Transaction Fee Agreement will be terminated automatically upon the termination of the Management Consulting Agreement.

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The Transaction Fee Agreement and the Management Consulting Agreement together provided that in the event of any acquisition (including of assets or equity interests) of any business or entity by any of us, our direct or indirect divisions and subsidiaries, parent entities or controlled affiliates (collectively, the "Company Group"), we are required to pay an aggregate fee equal to 1.0% of the aggregate enterprise value paid by the Company Group (or otherwise indicated by the acquisition) to the affiliates of Apollo and Vistria, which fee is to be paid to such affiliates on a pro rata basis in proportion to their respective ownership of equity of the Company. The affiliate of Apollo was permitted, at its sole discretion, to waive or defer, in full or in part, payment of any such company acquisition fee.

For the fiscal years ended August 31, 2022, 2023 and 2024 and during the first nine months of fiscal year 2025, we were not required to pay any fees pursuant to the terms of the Transaction Fee Agreement.

The parties to the Transaction Fee Agreement have agreed to terminate such agreement effective as of the pricing of this offering and therefore no transaction fees will be payable under this agreement after the pricing of this offering.

**Registration Rights Agreement** 

Prior to the consummation of this offering, we intend to enter into a registration rights agreement (the "Registration Rights Agreement") with the Apollo Stockholder, the Vistria Stockholder and certain of our existing stockholders. Subject to several exceptions, including our right to defer a demand registration, shelf registration or underwritten offering under certain circumstances, the Apollo Stockholder and the Vistria Stockholder may require that we register for public resale under the Securities Act all shares of common stock that they request to be registered at any time following this offering, subject to the restrictions in the lock-up agreements entered into by each of those parties in connection with this offering, so long as the securities being registered in each registration statement or sold in any underwritten offering are reasonably expected to produce aggregate proceeds of at least $50 million (or $25 million if a shelf takedown).

If we become eligible to register the sale of our securities on Form S-3 under the Securities Act, which will not be until at least twelve calendar months after the date of this prospectus, the Apollo Stockholder and, subject to certain exceptions, the Vistria Stockholder, will have the right to require us to register the sale of the common stock held by it on Form S-3, subject to offering size and other restrictions. The Apollo Stockholder and the Vistria Stockholder will also have the right to request marketed and non-marketed underwritten offerings using a shelf registration statement.

We will not be obligated under the Registration Rights Agreement to effectuate more than one demand registration or underwritten offering under a shelf registration statement for the Vistria Stockholder, and, without our consent, the Vistria Stockholder will not be able to exercise its demand registration until following the one-year anniversary of this offering.

If we propose to file certain types of registration statements under the Securities Act with respect to an offering of equity securities (including for sale by us or at the request of the Apollo Stockholder or the Vistria Stockholder), we will be required to use our reasonable best efforts to offer the parties to the Registration Rights Agreement the opportunity to register the sale of all or part of their shares on the terms and conditions set forth in the Registration Rights Agreement (customarily known as "piggyback rights").

All expenses of registration under the Registration Rights Agreement, including the legal fees of counsel chosen by stockholders participating in a registration, will be paid by us.

The registration rights granted in the Registration Rights Agreement are subject to customary restrictions including blackout periods and, if a registration is underwritten, any limitations on the number of shares to be included in the underwritten offering as reasonably advised by the managing underwriter or underwriters. The

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Registration Rights Agreement also contains customary indemnification and contribution provisions. The Registration Rights Agreement is governed by Delaware law.

Any sales in the public market of any common stock registrable pursuant to the Registration Rights Agreement could adversely affect prevailing market prices of our common stock. See "*Risk Factors—Risks Related to this Offering and Ownership of our Common Stock—Future sales of our common stock in the public market, or the perception in the public market that such sales may occur, could reduce our stock price" and "Shares Eligible for Future Sale*."

**Other Agreements** 

In the normal course of business, we had the following transactions with Apollo's affiliated funds' portfolio companies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We paid approximately $3.4 million and $2.7 million in fiscal years 2024 and 2023, respectively, and
approximately $3.2 million in the first nine months of fiscal year 2025, to Rackspace Technology, Inc. for technology services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We paid approximately $0.2 million and $0.3 million in fiscal years 2024 and 2023, respectively, and
approximately $0.3 million in the first nine months of fiscal year 2025, to Cengage Learning Holdings II, Inc. for materials the University used in providing educational services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We paid approximately $0.1 million and $0.7 million in fiscal years 2024 and 2023, respectively, to Yahoo,
Inc. for advertising services.

As of August 31, 2024, Talent Mobility, LLC, a wholly owned subsidiary of AEG, had a minority ownership interest in Empath, Inc. ("Empath"). Empath provides clients with a company-wide skills inventory for its employees through machine learning-based skills inference. During fiscal year 2024, we loaned $0.6 million to Empath, which is included in accounts receivable, net on our consolidated balance sheets as of August 31, 2024. Subsequent to fiscal year 2024, AEG acquired a controlling interest in Empath pursuant to an Agreement and Plan of Merger, by merging Talent Mobility, LLC with Empath, with Empath surviving as a subsidiary of AEG. AEG paid $2 million, net of cash acquired, to Empath to facilitate this merger. Upon consummation of the merger, Empath was renamed Talent Mobility, Inc.

**Indemnification Agreements** 

We will enter into agreements with our officers and directors to provide contractual indemnification in addition to the indemnification provided in our certificate of incorporation and bylaws. We believe that these provisions and agreements are necessary to attract qualified officers and directors. We expect to purchase a policy of directors' and officers' liability insurance that insures our officers and directors against the cost of defense, settlement or payment of a judgment in some circumstances and insures us against our obligations to indemnify our officers and directors.

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**PRINCIPAL AND SELLING STOCKHOLDERS** 

The following table sets forth the beneficial ownership of our common stock as of , 2025, after giving effect to the Reorganization Transactions, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person, or group of affiliated persons, who we know to beneficially own more than 5% of either class of
our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers for our fiscal year ended August 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of the selling stockholders.

Beneficial ownership is determined in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to such securities, which includes the power to dispose of or to direct the disposition of the securities or have the right to acquire such powers within 60 days. Securities subject to stock option grants or other awards that have vested or will vest within 60 days are deemed outstanding for calculating the percentage ownership of the person holding such securities, but are not deemed outstanding for calculating the percentage ownership of any other person.

Except as otherwise indicated, all persons listed below have sole voting and investment power with respect to the shares beneficially owned by them, subject to applicable community property laws. Unless otherwise indicated, the address of each person or entity named in the table below is 4035 S. Riverpoint Parkway, Phoenix, Arizona 85040. The beneficial ownership percentages provided in the table below are based on shares of our common stock, par value $0.01 per share, outstanding as of , 2025, after giving effect to the Reorganization Transactions.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares of<br>Common Stock<br>Beneficially<br>Owned Before<br>the Offering** | **Shares of<br>Common Stock<br>Beneficially<br>Owned Before<br>the Offering** | **Shares of<br>Common Stock<br>Being Offered**<br>**assuming<br>underwriters'<br>option is not<br>exercised** | **Shares of<br>Common Stock<br>Being Offered<br>assuming<br>underwriters'<br>option is<br>exercised in full** | **Shares of Common Stock<br>Beneficially Owned After<br>the Offering assuming<br>underwriters' option is<br>not exercised** | **Shares of Common Stock<br>Beneficially Owned After<br>the Offering assuming<br>underwriters' option is<br>not exercised** | **Shares of Common Stock<br>Beneficially Owned After<br>the Offering assuming<br>underwriters' option is<br>exercised in full** | **Shares of Common Stock<br>Beneficially Owned After<br>the Offering assuming<br>underwriters' option is<br>exercised in full** |
|  | **Number** | **Percent** | **Shares of<br>Common Stock<br>Being Offered**<br>**assuming<br>underwriters'<br>option is not<br>exercised** | **Shares of<br>Common Stock<br>Being Offered<br>assuming<br>underwriters'<br>option is<br>exercised in full** | **Number** | **Percent** | **Number** | **Percent** |
|  **5% Stockholders and Other Selling Stockholders** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AP VIII Socrates Holdings, L.P.<sup>(1)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TVG-I-E-AEG Holdings, LP<sup>(2)</sup> |  |  |  |  |  |  |  |  |
|  **Named Executive Officers and Directors** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Christopher Lynne |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raghu Krishnaiah |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cheryl Naumann |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Andrew Bird |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peter Cohen |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeff Denham |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Theodore Kwon |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Martin H. Nesbitt |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adnan A. Nisar |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; John Sizer |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Itai Wallach |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Johannes Worsoe |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All directors and executive officers as a group (12 persons) |  |  |  |  |  |  |  |  |

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(1) AP VIII Socrates Holdings, L.P. (the "Apollo Stockholder") is the record holder of the shares of
our common stock reported above. AP VIII Socrates Holdings GP, LLC ("Socrates GP") is the general partner of the Apollo Stockholder. Apollo Advisors VIII, L.P. ("Advisors VIII") is the general partner of the members of
Socrates GP. Apollo Capital Management VIII, LLC ("Capital Management VIII") is the general partner of Advisors VIII, and APH Holdings, L.P. ("APH Holdings") is the sole member and manager of Capital Management VIII. Apollo
Principal Holdings A GP, Ltd. ("Principal A GP") is the general partner of APH Holdings. Marc Rowan, James Zelter and Scott Kleinman are the directors of Principal A GP, and as such may be deemed to have voting and dispositive control of
the shares of our common stock held by the Apollo Stockholder. Each of Socrates GP, Advisors VIII, Capital Management VIII, APH Holdings, Principal A GP, and Messrs. Rowan, Zelter and Kleinman disclaims beneficial ownership of any shares held of
record by the Apollo Stockholder, in each case except to the extent of any pecuniary interest therein. The address of each of the Apollo Stockholder, Socrates GP, Advisors VIII, Capital Management VIII, APH Holdings, Principal A GP, and Messrs.
Rowan, Zelter and Kleinman is 9 West 57th Street, 42nd Floor, New York, New York 10019.

(2) TVG-I-E-AEG Holdings, LP (the "Vistria Stockholder") is the record holder of the shares of our common stock reported above. Vistria-AEG GP, LLC ("Vistria GP") is the general partner of the Vistria
Stockholder and Adnan A. Nisar is the sole manager of Vistria GP. The Vistria Group, LP ("Vistria LP") is the sole member of Vistria GP. The Vistria Group, LLC is the general partner of Vistria LP and Harreld N. Kirkpatrick III and
Martin H. Nesbitt are the sole members of The Vistria Group, LLC. Messrs. Kirkpatrick, Nesbitt and Nisar each may be deemed to have voting and dispositive control of the shares of our common stock held by the Vistria Stockholder. Each of Vistria GP,
Mr. Nisar, Vistria LP, The Vistria Group, LLC, and Messrs. Kirkpatrick and Nesbitt disclaim beneficial ownership of any shares held of record by the Vistria Stockholder except to the extent of any pecuniary interest therein. The address of each
of the Vistria Stockholder, Vistria GP, Vistria LP, The Vistria Group, LLC, and Messrs. Kirkpatrick, Nesbitt and Nisar is 300 East Randolph Street, Suite 3850, Chicago, IL 60601.

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**DESCRIPTION OF CAPITAL STOCK** 

*The following is a description of the material terms of our certificate of incorporation and bylaws, each of which will become effective prior to the consummation of this offering, and of specific provisions of Delaware law. The following description also assumes the completion of the Reorganization Transactions unless the context requires otherwise. The following description is intended as a summary only and is qualified in its entirety by reference to our certificate of incorporation, our bylaws and the Delaware General Corporation Law, or the DGCL.* 

**General** 

Upon the closing of this offering and the filing of our certificate of incorporation that will become effective prior to the closing of this offering, our capital stock will consist of authorized shares, of which shares, par value $0.01 per share, will be designated as "common stock" and shares, par value $0.01 per share, will be designated as "preferred stock." After giving effect to the Reorganization Transactions, immediately prior to this offering there were shares of common stock outstanding and no shares of preferred stock outstanding.

**Common Stock** 

*Voting Rights*. The holders of our common stock are entitled to one vote per share on all matters submitted for action by the stockholders generally.

*Dividend Rights*. Subject to any preferential rights of any then outstanding preferred stock, all shares of our common stock are entitled to receive dividends as our board of directors may from time to time declare from legally available sources.

*Liquidation Rights*. Upon our liquidation, dissolution or winding up, whether voluntary or involuntary, after payment in full of our debts and other liabilities and subject to the rights of holders of any outstanding preferred stock, all shares of our common stock are entitled to share ratably in the assets available for distribution to stockholders.

*Other Matters*. Holders of our common stock have no preemptive or conversion rights, and our common stock is not subject to further calls or assessments by us. There are no redemption or sinking fund provisions applicable to our common stock. The rights, powers, preferences and privileges of holders of our common stock will be subject to those of the holders of any shares of our preferred stock that we may designate and issue in the future.

**Preferred Stock** 

Pursuant to our certificate of incorporation, shares of preferred stock are issuable from time to time, in one or more series, with the designations, voting rights (full, limited or no voting rights), powers, preferences, participating, optional or other special rights (if any), and any qualifications, limitations or restrictions thereof, of each series as our board of directors from time to time may adopt by resolution (and without further stockholder approval). Each series of preferred stock will consist of an authorized number of shares as will be stated and expressed in the certificate of designations providing for the creation of the series.

**Composition of Board of Directors; Election and Removal of Directors** 

In accordance with our certificate of incorporation and our bylaws, the number of directors comprising our board of directors is determined from time to time by our board of directors; provided that the number of directors shall not be less than three and shall not exceed 15. Our certificate of incorporation will

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provide for a board of directors divided into three classes (each as nearly as equal as possible and with directors in each class serving staggered three-year terms), initially consisting of three directors in Class I, three directors in Class II and four directors in Class III. See "*Description of Capital Stock—Certain Corporate Anti-takeover Provisions—Classified Board of Directors*."

Under our Stockholders Agreement, Apollo and its affiliates have the right, but not the obligation, at any time until Apollo and its affiliates, including the Apollo Stockholder, no longer beneficially own at least 5% of our issued and outstanding common stock, to nominate a number of directors comprising a percentage of our board of directors in accordance with their beneficial ownership of our outstanding common stock (rounded up to the nearest whole number), except that if Apollo and its affiliates, including the Apollo Stockholder, beneficially own more than 50% of the voting power of our outstanding common stock, the Apollo Stockholder will have the right to nominate a majority of the directors. We refer to the directors nominated by Apollo and its affiliates based on such percentage ownership as the "Apollo Board Nominees." Under the Stockholders Agreement, the Vistria Stockholder has the right, but not the obligation, at any time until the Vistria Stockholder and its affiliates no longer beneficially own at least 5% of our issued and outstanding common stock, to nominate a number of directors comprising a percentage of our board of directors in accordance with their beneficial ownership of our outstanding common stock (rounded up to the nearest whole number). We refer to the directors nominated by Vistria based on such percentage ownership as the "Vistria Board Nominees." See "*Certain Relationships and Related Party Transactions—Stockholders Agreement*."

Each director is to hold office for a three year term and until the annual meeting of stockholders for the election of the class of directors to which such director has been elected and until his or her successor is duly elected and qualified or until his or her earlier death, resignation or removal. Any vacancy on our board of directors (other than in respect of an Apollo Board Nominee or a Vistria Board Nominee) will be filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum. Any vacancy on our board of directors in respect of an Apollo Board Nominee will be filled only by individuals designated by Apollo and its affiliates, including the Apollo Stockholder, for so long as Apollo and its affiliates, including the Apollo Stockholder, beneficially own at least 5% of our issued and outstanding common stock. Any vacancy on our board of directors in respect of a Vistria Board Nominee will be filled only by individuals designated by the Vistria Stockholder and its affiliates, for so long as they beneficially own at least 5% of our issued and outstanding common stock. See "*Certain Relationships and Related Party Transactions—Stockholders Agreement*."

At any meeting of our board of directors, except as otherwise required by law, a majority of the total number of directors then in office will constitute a quorum for all purposes, but in no event shall less than one-third of the total number of directors (including any vacancies or newly created directorships) constitute a quorum; provided that for so long as Apollo and its affiliates, including the Apollo Stockholder, beneficially own at least 5% of the voting power of our outstanding common stock and at least one board member is an Apollo Board Nominee, a quorum shall include at least one Apollo Board Nominee.

**Certain Corporate Anti-takeover Provisions** 

Certain provisions in our certificate of incorporation, bylaws and the Stockholders Agreement summarized below may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders.

***Authorized but Unissued Shares***

Our authorized but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval, subject to applicable NYSE rules. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate

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acquisitions and team member benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise.

***Preferred Stock***

Our certificate of incorporation contains provisions that permit our board of directors to issue, without any further vote or action by stockholders, shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting rights (if any) of the shares of the series, the powers, preference, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions of the shares of such series.

***Classified Board of Directors***

Our certificate of incorporation provides that our board of directors will be divided into three classes of directors, with the classes to be as nearly equal in number as possible, and with the directors in each class serving staggered three-year terms. As a result, approximately one-third of our board of directors will be elected each year. The classification of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors. Our certificate of incorporation provides that, subject to any rights of holders of preferred stock to elect additional directors under specified circumstances, the number of directors will be fixed from time to time exclusively pursuant to a resolution adopted by our board of directors, as described above in "—*Composition of Board of Directors; Election and Removal of Directors*."

***Removal of Directors; Vacancies***

Under the DGCL, unless otherwise provided in our certificate of incorporation, directors serving on a classified board may be removed by the stockholders only for cause. Our certificate of incorporation provides that directors may be removed with or without cause upon the affirmative vote of a majority in voting power of all outstanding shares of stock entitled to vote thereon; provided, however, that from and after the time Apollo and its affiliates, including the Apollo Stockholder, cease to beneficially own, in the aggregate, at least 50.1% of the voting power of our outstanding common stock, directors may only be removed for cause, and only by the affirmative vote of holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class. For so long as at least 5% of the voting power of our outstanding common stock is beneficially owned by Apollo and its affiliates, including the Apollo Stockholder, any vacancy on our board of directors in respect of an Apollo Board Nominee will only be filled by individuals designated by Apollo and its affiliates, including the Apollo Stockholder. For so long as at least 5% of the voting power of our outstanding common stock is beneficially owned by the Vistria Stockholder and its affiliates, any vacancy on our board of directors in respect of a Vistria Board Nominee will only be filled by individuals designated by the Vistria Stockholder and its affiliates. Any other vacancy on our board of directors will be filled only by the affirmative vote of a majority of the remaining directors, although less than a quorum, as described above in "—*Composition of Board of Directors; Election and Removal of Directors*."

***No Cumulative Voting***

Under our certificate of incorporation, stockholders do not have the right to cumulative votes in the election of directors.

***Special Meetings of Stockholders***

Our certificate of incorporation provides that if less than 50.1% of the voting power of our outstanding common stock is beneficially owned by Apollo and its affiliates, including the Apollo Stockholder, special meetings of the stockholders may be called only by the chairman of the board of directors or by the secretary at

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the direction of a majority of the directors then in office. For so long as at least 50.1% of the voting power of our outstanding common stock is beneficially owned by Apollo and its affiliates, including the Apollo Stockholder, special meetings may also be called by the secretary at the written request of the holders of a majority of the voting power of the then outstanding common stock. The business transacted at any special meeting will be limited to the purpose or purposes stated in the notice of the meeting.

***Stockholder Action by Written Consent***

Subject to the rights of the holders of one or more series of our preferred stock then outstanding, any action required or permitted to be taken by stockholders must be effected at a duly called annual or special meeting of our stockholders; provided, that prior to the time at which Apollo and its affiliates, including the Apollo Stockholder, cease to beneficially own at least 50.1% of the voting power of our outstanding common stock, any action required or permitted to be taken at any annual or special meeting of our stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, is signed by or on behalf of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and are delivered in accordance with applicable Delaware law.

***Advance Notice Requirements for Stockholder Proposals and Director Nominations***

Our bylaws provide that stockholders who are seeking to bring business before an annual meeting of stockholders and stockholders (other than Apollo and its affiliates, including the Apollo Stockholder, and Vistria) who are seeking to nominate candidates for election as directors at an annual meeting of stockholders, must provide timely notice thereof in writing. To be timely, a stockholder's notice generally must be delivered to and received at our principal executive offices not earlier than the close of business on the 120<sup>th</sup> day and not later than the close of business of the 90<sup>th</sup> day prior to the first anniversary of the preceding year's annual meeting; provided, that in the event that the date of such meeting is advanced by more than 30 days prior to, or delayed by more than 60 days after, the anniversary of the preceding year's annual meeting of our stockholders, a stockholder's notice to be timely must be so delivered not earlier than the close of business on the 120th day prior to such meeting and not later than the close of business on the 90th day prior to such meeting or, if the first public announcement of the date of such meeting is less than 100 days prior to the date of such annual meeting, the tenth day following the day on which public announcement of the date of such meeting is first made. Our bylaws specify certain requirements as to the form and content of a stockholder's notice. These provisions may preclude stockholders from bringing matters before an annual meeting of stockholders or from making nominations for directors at an annual meeting of stockholders.

All of the foregoing provisions of our certificate of incorporation and bylaws could discourage potential acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood of continuity and stability in the composition of the board of directors and in the policies formulated by the board of directors and to discourage certain types of transactions that may involve an actual or threatened change in control. These same provisions may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interest. In addition, such provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations in the market price of our common stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in our management.

***Delaware Takeover Statute***

Our certificate of incorporation provides that we are not governed by Section 203 of the DGCL which, in the absence of such provisions, would have imposed additional requirements regarding mergers and other business combinations.

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However, our certificate of incorporation, which will become effective prior to the consummation of this offering, will include a provision that restricts us from engaging in any business combination with an interested stockholder for three years following the date that person becomes an interested stockholder. Such restrictions shall not apply to any business combination between Apollo and any affiliate thereof, including the Apollo Stockholder, Vistria and any affiliate thereof or their direct and indirect transferees, on the one hand, and us, on the other. In addition, such restrictions will not apply if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a stockholder becomes an interested stockholder inadvertently and (i) as soon as practicable divests
itself of ownership of sufficient shares so that it ceases to be an interested stockholder and (ii) within the three-year period immediately prior to the business combination between the Company and such stockholder, would not have been an
interested stockholder but for the inadvertent acquisition of ownership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the business combination is proposed prior to the consummation or abandonment of, and subsequent to the
earlier of the public announcement or the notice required under the certificate of incorporation of, a proposed transaction that (i) constitutes one of the transactions described in the proviso of this sentence, (ii) is with or by a person
who either was not an interested stockholder during the previous three years or who became an interested stockholder with the approval of our board of directors and (iii) is approved or not opposed by a majority of the directors then in office (but
not less than one) who were directors prior to any person becoming an interested stockholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors; provided that the
proposed transactions are limited to (x) a merger or consolidation of the Company (except for a merger in respect of which, pursuant to Section 251(f) of the DGCL, no vote of the stockholders of the Company is required), (y) a sale, lease,
exchange, mortgage, whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-owned subsidiary of the Company (other than to any wholly owned subsidiary or to the Company) having an aggregate
market value equal to 50% or more of either that aggregate market value of all the assets of the Company determined on a consolidated basis or the aggregate market value of all the outstanding stock of the Company or (z) a proposed tender or
exchange offer for 50% or more of the outstanding voting stock of the Company; provided further that the Company will give not less than 20 days' notice to all interested stockholders prior to the consummation of any of the transactions
described in clause (x) or (y) above.

Additionally, we would be able to enter into a business combination with an interested stockholder if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• before that person became an interested stockholder, our board of directors approved the transaction in which
the interested stockholder became an interested stockholder or approved the business combination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon consummation of the transaction that resulted in the interested stockholder becoming an interested
stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the
interested stockholder) stock held by directors who are also officers of our Company and by employee stock plans that do not provide employees with the right to determine confidentially whether shares held under the plan will be tendered in a tender
or exchange offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following the transaction in which that person became an interested stockholder, the business combination is
approved by our board of directors and authorized at a meeting of stockholders by the affirmative vote of the holders of at least 66 2/3% of the voting power of our outstanding voting stock not owned by the interested stockholder.

In general, a "business combination" is defined to include mergers, asset sales and other transactions resulting in financial benefit to a stockholder and an "interested stockholder" is any person who, together with

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affiliates and associates, is the owner of 15% or more of our outstanding voting stock or is our affiliate or associate and was the owner of 15% or more of our outstanding voting stock at any time within the three-year period immediately before the date of determination. Under our certificate of incorporation, an "interested stockholder" generally does not include Apollo and any affiliate thereof, Vistria and any affiliate thereof or their direct and indirect transferees.

This provision of our certificate of incorporation could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

***Amendment of Our Certificate of Incorporation***

Under Delaware law, our certificate of incorporation may be amended only with the affirmative vote of holders of at least a majority of the outstanding stock entitled to vote thereon.

Notwithstanding the foregoing, our certificate of incorporation provides that, from and after the time Apollo and its affiliates, including the Apollo Stockholder, cease to beneficially own at least 50.1% of the voting power of our outstanding common stock, in addition to any vote required by applicable law, our certificate of incorporation or bylaws, the affirmative vote of holders of at least 66 2/3% of the voting power of our outstanding shares of our capital stock entitled to vote thereon, voting together as a single class, is required to alter, amend or repeal the following provisions of our certificate of incorporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provision authorizing the board of directors to designate one or more series of preferred stock and, by
resolution, to provide the rights, powers and preferences, and the qualifications, limitations and restrictions thereof, of any series of preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions providing for a classified board of directors and the number of the directors, establishing the
term of office of directors, setting forth the quorum of any meeting of the board of directors, relating to the removal of directors, specifying the manner in which vacancies on the board of directors and newly created directorships may be filled
and relating to any voting rights of preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions authorizing our board of directors to make, alter, amend or repeal our bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions regarding the calling of special meetings and stockholder action by written consent in lieu of
a meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions eliminating monetary damages for breaches of fiduciary duty by a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions providing for indemnification and advance of expenses of our directors and officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions regarding competition and corporate opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provision specifying that, unless we consent in writing to the selection of an alternative forum, the
Chancery Court of the State of Delaware will be the sole and exclusive forum for intra-corporate disputes and the federal district courts of the United States will be the exclusive forum for causes of actions arising under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provisions regarding entering into business combinations with interested stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provision requiring that, from and after the time Apollo and its affiliates, including the Apollo
Stockholder, cease to beneficially own at least 50.1% of the voting power of our outstanding common stock, amendments to specified provisions of our certificate of incorporation require the affirmative vote of 66 2/3% in voting power of our
outstanding stock, voting as a single class; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the provision requiring that, from and after the time Apollo and its affiliates, including the Apollo
Stockholder, cease to beneficially own at least 50.1% of the voting power of our outstanding common stock, amendments by the stockholders to our bylaws require the affirmative vote of 66 2/3% in voting power of our outstanding stock, voting as a
single class.

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***Amendment of Our Bylaws***

Our bylaws provide that they can be amended by the vote of the holders of shares constituting a majority of the voting power or by the vote of a majority of the board of directors. However, our certificate of incorporation provides that, from and after the time Apollo and its affiliates, including the Apollo Stockholder, cease to beneficially own at least 50.1% of the voting power of our outstanding common stock, in addition to any vote required under our certificate of incorporation, the affirmative vote of the holders of at least 66 2/3% of the voting power of the outstanding shares of stock entitled to vote thereon, voting as a single class, is required for the stockholders to alter, amend or repeal any provision of our bylaws or to adopt any provision inconsistent therewith.

***Certain Matters that Require Consent of Our Stockholders***

The Stockholders Agreement provides that until Apollo and its affiliates, including the Apollo Stockholder, no longer beneficially own at least 33% of our issued and outstanding common stock, we will not take certain significant actions specified therein without the prior consent of Apollo and its affiliates, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other than in the ordinary course of business with vendors, customers and suppliers, acquisition of equity
interests or assets of any other entity, or any business, properties, assets or entities, exceeding $50 million in any single transaction or $100 million in the aggregate in any series of transactions during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other than in the ordinary course of business with vendors, customers and suppliers, disposition of any of our
or our subsidiaries' assets or equity interests, exceeding $50 million in any single transaction or $100 million in the aggregate in any series of transactions during a calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into or agree to undertaking any transaction that would constitute a "change of control"
as defined in the Stockholders Agreement (other than transactions among us and our wholly owned subsidiaries). See "*Certain Relationships and Related Party Transactions – Stockholders Agreement*."

The provisions of the DGCL, our certificate of incorporation, our bylaws and our Stockholders Agreement could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.

**Corporate Opportunity** 

Under Delaware law, officers and directors generally have an obligation to present to the corporation they serve business opportunities which the corporation is financially able to undertake and which falls within the corporation's business line and are of practical advantage to the corporation, or in which the corporation has an actual or expectant interest. A corollary of this general rule is that when a business opportunity comes to an officer or director that is not one in which the corporation has an actual or expectant interest, the officer is generally not obligated to present it to the corporation. Certain of our officers and directors may serve as officers, directors or fiduciaries of other entities and, therefore, may have legal obligations relating to presenting available business opportunities to us and to other entities. Potential conflicts of interest may arise when our officers and directors learn of business opportunities (e.g., the opportunity to acquire an asset or portfolio of assets, to make a specific investment, to effect a sale transaction, etc.) that would be of material advantage to us and to one or more other entities of which they serve as officers, directors or other fiduciaries.

Section 122(17) of the DGCL permits a corporation to renounce, in advance, in its certificate of incorporation or by action of its board of directors, any interest or expectancy of a corporation in certain classes

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or categories of business opportunities. Where business opportunities are so renounced, certain of our officers and directors will not be obligated to present any such business opportunities to us. Our certificate of incorporation provides that, to the fullest extent permitted by law, no officer or director of ours who is also an officer, director, principal, partner, member, manager, employee, agent or other representative of Apollo or Vistria or their respective affiliates will be liable to us or our stockholders for breach of any fiduciary duty by reason of the fact that any such individual directs a corporate opportunity to Apollo or Vistria or their respective affiliates and representatives, as applicable, instead of us, or does not communicate information regarding a corporate opportunity to us that such individual has directed to Apollo or Vistria or their respective affiliates and representatives, as applicable. As of the date of this prospectus, this provision of our certificate of incorporation relates only to the directors nominated by the Apollo Stockholder or Vistria.

**Exclusive Forum Selection** 

Unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware lacks jurisdiction over such action or proceeding, then another court of the State of Delaware, or if no court of the State of Delaware has jurisdiction, then the United States District Court for the District of Delaware) will, to the fullest extent permitted by law, be the sole and exclusive forum for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees
or agents to us or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim arising pursuant to any provision of the DGCL or of our certificate of
incorporation or our bylaws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us or any of our directors or officers governed by the internal affairs
doctrine,

in each such case subject to the Court of Chancery of the State of Delaware having personal jurisdiction over the indispensable parties named as defendants.

We recognize that the forum selection clause in our certificate of incorporation may impose additional litigation costs on stockholders in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware. Additionally, the forum selection clause in our certificate of incorporation may limit our stockholders' ability to bring a claim in a forum that they find favorable for disputes with us or our directors, officers or employees, which may discourage such lawsuits against us and our directors, officers and employees even though an action, if successful, might benefit our stockholders. Alternatively, if a court were to find the choice of forum provision contained in our certificate of incorporation to be inapplicable or unenforceable in an

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action, we may incur additional costs associated with resolving such action in other jurisdictions. The Court of Chancery of the State of Delaware and the federal district courts of the United States may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.

**Limitation of Liability and Indemnification** 

Our certificate of incorporation limits the liability of our directors and officers to the maximum extent permitted by the DGCL. The DGCL provides that directors and officers will not be personally liable for monetary damages for breach of their fiduciary duties as directors or officers, except liability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for any breach of their duty of loyalty to the corporation or its stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of
laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for a director under Section 174 of the DGCL (governing distributions to stockholders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for any transaction from which the director or officer derived an improper personal benefit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for an officer in any action by or in the right of the corporation.

However, if the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of our directors and officers will be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. The modification or repeal of this provision of our certificate of incorporation will not adversely affect any right or protection of a director or officer existing at the time of such modification or repeal.

Our certificate of incorporation provides that we will, to the fullest extent from time to time permitted by law, indemnify our directors and officers against all liabilities and expenses in any suit or proceeding, arising out of their status as an officer or director or their activities in these capacities. We will also indemnify any person who, at our request, is or was serving as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise. We may, by action of our board of directors, provide indemnification to our employees and agents within the same scope and effect as the foregoing indemnification of directors and officers.

The right to be indemnified will include the right of an officer or a director to be paid expenses in advance of the final disposition of any proceeding, provided that, if required by law, we receive an undertaking to repay such amount if it will be determined that he or she is not entitled to be indemnified.

Our board of directors may take such action as it deems necessary to carry out these indemnification provisions, including adopting procedures for determining and enforcing indemnification rights and purchasing insurance policies. Our board of directors may also adopt bylaws, resolutions or contracts implementing indemnification arrangements as may be permitted by law. Neither the amendment nor the repeal of these indemnification provisions, nor any provision of our certificate of incorporation that is inconsistent with these indemnification provisions, will eliminate or reduce any rights to indemnification relating to their status or any activities prior to such amendment, repeal or adoption.

We believe these provisions will assist in attracting and retaining qualified individuals to serve as directors.

The limitation of liability and indemnification provisions that will be included in our certificate of incorporation and bylaws, respectively, may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against our directors and officers, even though such an action, if successful, might otherwise

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benefit us and our stockholders. However, these provisions will not limit or eliminate our rights, or those of any stockholder, to seek non-monetary relief such as an injunction or rescission in the event of a breach of a director's duty of care. The provisions will not alter the liability of directors under the federal securities laws. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. There is currently no pending material litigation or proceeding against any of our directors, officers, or employees for which indemnification is sought. We believe these provisions will assist in attracting and retaining qualified individuals to serve as directors.

**Listing** 

We have applied to list our shares of common stock on the NYSE under the symbol "PXED."

**Transfer Agent and Registrar** 

The transfer agent and registrar for our common stock is Equiniti Trust Company, LLC.

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our common stock. As described below, only a limited number of shares will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless, sales of a substantial number of shares of our common stock in the public market after such restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price of our common stock at such time and our ability to raise equity-related capital at a time and price we deem appropriate. See "*Risk Factors—Risks Related to this Offering and Ownership of our Common Stock—Future sales of our common stock in the public market, or the perception in the public market that such sales may occur, could reduce our stock price*."

**Sales of Restricted Shares** 

Upon the completion of this offering, we will have outstanding an aggregate of shares of common stock, excluding up to shares of common stock that we may be required to issue in respect of the University's outstanding RSUs and stock options. Of these shares, all of the shares of common stock to be sold in this offering (or shares assuming the underwriters exercise their option to purchase additional shares in full) will be freely tradable without restriction unless the shares are held by any of our "affiliates" as such term is defined in Rule 144 under the Securities Act, and without further registration under the Securities Act.

Restricted securities may be sold in the public market only if they qualify for an exemption from registration under Rule 144 under the Securities Act, which is summarized below, or any other applicable exemption under the Securities Act, or pursuant to a registration statement that is effective under the Securities Act. Immediately following the consummation of this offering, the holders of approximately shares of our common stock will be entitled to dispose of their shares following the expiration of an initial 180-day underwriter "lock-up" period, subject to the holding period, volume and other restrictions of Rule 144. is entitled to waive these lock-up provisions in its discretion prior to the expiration date of such lock-up agreements.

**Lock-up Agreements** 

We, the selling stockholders, all of our other existing stockholders and all of our directors and executive officers have agreed not to sell any common stock or securities convertible into or exercisable or exchangeable for shares of common stock for a period of 180 days from the date of this prospectus, subject to certain exceptions. Please see "*Underwriting (Conflicts of Interest)*" for a description of these lock-up provisions. and , in their sole discretion, may at any time release all or any portion of the shares from the restrictions in such agreements, subject to applicable notice requirements.

**Rule 144** 

In general, under Rule 144 under the Securities Act as currently in effect, once we have been subject to public company reporting requirements for at least 90 days, a person (or persons whose shares are aggregated) who is not deemed to be or have been an affiliate of ours at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months would be entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. Such a non-affiliated person who has beneficially owned restricted securities within the meaning of Rule 144 for at least one year would be entitled to sell those shares without regard to the provisions of Rule 144.

A person (or persons whose shares are aggregated) who is deemed to be an affiliate of ours and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months would be entitled to sell, within any three-month period beginning 90 days after the date of this prospectus a number of shares that

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does not exceed the greater of (i) one percent of the then outstanding shares of our common stock or (ii) the average weekly trading volume of our common stock reported by the NYSE during the four calendar weeks preceding the filing of notice of the sale. Such sales are also subject to certain manner of sale provisions, notice requirements and the availability of current public information about us.

**Rule 701** 

In general, under Rule 701 under the Securities Act, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering is entitled to sell such shares 90 days after the effective date of this offering in reliance on Rule 144, in the case of affiliates, without having to comply with the holding period requirement of Rule 144 and, in the case of non-affiliates, without having to comply with the public information, holding period requirement, volume limitation or notice filing provisions of Rule 144. The SEC has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after the date of this prospectus.

**Stock Options** 

Upon the completion of this offering, the University will have options to purchase an aggregate of shares of the University's common stock outstanding, of which options to purchase shares of the University's common stock will have met the time-based requirements of the applicable vesting schedule. Upon a holder's exercise of one University stock option, the University would be required to issue to the holder one share of the University's common stock. However, the Company has the right to deliver shares of our common stock in lieu of one share of the University's common stock or otherwise pay cash in lieu of delivering a share of the University's common stock. During the period the University's options are outstanding, we will reserve from our authorized and unissued common stock a sufficient number of shares to provide for the issuance of shares of common stock upon the exercise of the University's outstanding stock options.

**Restricted Stock Units** 

Upon the completion of this offering, there will be shares of our common stock issuable upon the vesting of of the University's outstanding RSUs. During the period the RSUs are outstanding, we will reserve from our authorized and unissued common stock a sufficient number of shares to provide for the issuance of shares of common stock underlying the University's RSUs.

**Stock Issued Under Employee Plans** 

We intend to file a registration statement on Form S-8 under the Securities Act to register our common stock issuable under the Omnibus Incentive Plan, the ESPP and the University Equity Plan. This registration statement on Form S-8 is expected to be filed following the effective date of the registration statement of which this prospectus is a part and will be effective upon filing. Accordingly, shares registered under such registration statement will be available for sale in the open market following the effective date, unless such shares are subject to vesting restrictions with us, Rule 144 restrictions applicable to our affiliates or the lock-up restrictions described above.

**Registration Rights** 

Following this offering and subject to the lock-up agreements, certain of our stockholders will be entitled to certain rights with respect to the registration of the sale of their shares of common stock under the Securities Act. For more information, see "*Certain Relationships and Related Party Transactions—Registration Rights Agreement*." After such registration, these shares of common stock will become freely tradable without restriction under the Securities Act.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS** 

The following is a discussion of the material U.S. federal income tax considerations applicable to Non-U.S. Holders (as defined herein) with respect to the acquisition, ownership and disposition of our common stock issued pursuant to this offering. The following discussion is based upon current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), U.S. judicial decisions, administrative pronouncements of the U.S. Internal Revenue Service (the "IRS") and existing and proposed Treasury regulations promulgated under the Code, all as in effect as of the date hereof. All of the preceding authorities are subject to change at any time, possibly with retroactive effect, so as to result in U.S. federal income tax consequences different from those discussed below. We have not requested, and will not request, a ruling from the IRS with respect to any of the U.S. federal income tax consequences described below, and as a result there can be no assurance that the IRS or a court will not disagree with or challenge any of the conclusions we have reached and describe herein.

This discussion only addresses Non-U.S. Holders that hold our common stock as a capital asset within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all aspects of U.S. federal income taxation that may be important to a Non-U.S. Holder in light of such Non-U.S. Holder's particular circumstances or that may be applicable to Non-U.S. Holders subject to special treatment under U.S. federal income tax law (including, for example, partnerships and other pass-through entities, financial institutions, regulated investment companies, dealers in securities, traders in securities that elect mark-to-market treatment, insurance companies, tax-exempt entities, Non-U.S. Holders who acquire our common stock pursuant to the exercise of employee stock options or otherwise as compensation for their services, Non-U.S. Holders liable for the alternative minimum tax, controlled foreign corporations, passive foreign investment companies, former citizens or former long-term residents of the United States, Non-U.S. Holders that hold our common stock as part of a hedge, straddle, constructive sale or conversion transaction, Non-U.S. Holders subject to special tax accounting rules as a result of any item of gross income with respect to our common stock being taken into account in an applicable financial statement, "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds, and Non-U.S. Holders that are foreign governments and other entities eligible for the benefits of Section 892 of the Code). In addition, this discussion does not address U.S. federal tax laws other than those pertaining to U.S. federal income tax (such as U.S. federal estate or gift tax or the Medicare contribution tax on certain net investment income), nor does it address any aspects of U.S. state, local or non-U.S. taxes. Non-U.S. Holders are urged to consult with their own tax advisors regarding the possible application of these taxes.

For purposes of this discussion, the term "Non-U.S. Holder" means a beneficial owner of our common stock that is an individual, corporation, estate or trust, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States, as determined for U.S. federal income tax
purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or
organized in the United States or under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust if: (i) a court within the United States is able to exercise primary supervision over the
administration of the trust and one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code) have the authority to control all substantial decisions of the trust; or (ii) it has a valid election
in effect under applicable U.S. Treasury regulations to be treated as a United States person for U.S. federal income tax purposes.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds shares of our common stock, the tax treatment of a person treated as a partner of such partnership generally will depend on the status of the partner and the activities of the partnership. Persons that, for U.S. federal income tax purposes, are

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treated as partners in a partnership holding shares of our common stock are urged to consult their own tax advisors.

THIS DISCUSSION IS FOR INFORMATION PURPOSES ONLY AND IS NOT TAX ADVICE. PROSPECTIVE PURCHASERS ARE URGED TO CONSULT THEIR TAX ADVISORS AS TO THE PARTICULAR CONSEQUENCES TO THEM UNDER U.S. FEDERAL, STATE AND LOCAL, AND APPLICABLE NON-U.S. TAX LAWS OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK.

**Distributions** 

Distributions of cash or property that we pay in respect of our common stock will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Subject to the discussions below under "*—U.S. Trade or Business Income*," "*—Information Reporting and Backup Withholding*" and "*—FATCA*," you generally will be subject to U.S. federal withholding tax at a 30% rate, or at a reduced rate prescribed by an applicable income tax treaty, on any dividends received in respect of our common stock. If the amount of the distribution exceeds our current and accumulated earnings and profits, such excess first will be treated as a return of capital to the extent of your tax basis in our common stock, and thereafter will be treated as capital gain and will be treated as described below under "*—Sale, Exchange or Other Taxable Disposition of Common Stock*." However, except to the extent that we elect (or the paying agent or other intermediary through which you hold your common stock elects) otherwise, we (or the intermediary) must generally withhold at the applicable rate on the entire distribution, in which case you may be entitled to a refund from the IRS for the withholding tax on the portion, if any, of the distribution that exceeded our current and accumulated earnings and profits.

In order to obtain a reduced rate of U.S. federal withholding tax under an applicable income tax treaty, you will be required to provide a properly executed IRS Form W-8BEN or Form W-8BEN-E (or, in each case, a successor form) certifying your entitlement to benefits under such treaty. If you are eligible for a reduced rate of U.S. federal withholding tax under an income tax treaty but do not provide the documentation described in the preceding sentence, you may obtain a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. You are urged to consult your own tax advisor regarding your possible entitlement to benefits under an applicable income tax treaty.

**Sale, Exchange or Other Taxable Disposition of Common Stock** 

Subject to the discussions below under "—*U.S. Trade or Business Income*," "—*Information Reporting and Backup Withholding*" and "—*FATCA*," you generally will not be subject to U.S. federal income or withholding tax in respect of any gain on a sale, exchange or other taxable disposition of our common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is U.S. trade or business income (as defined below), in which case, such gain will be taxed as
described in "— *U.S. Trade or Business Income*" below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are an individual who is present in the United States for 183 or more days in the taxable year of the
disposition and certain other conditions are met, in which case you will be subject to U.S. federal income tax at a rate of 30% (or a reduced rate under an applicable income tax treaty) on the amount by which certain capital gains allocable to U.S.
sources exceed certain capital losses allocable to U.S. sources, provided you have timely filed your U.S. federal income tax return with respect to such losses; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are or have been a "United States real property holding corporation" (a "USRPHC")
under Section 897 of the Code at any time during the shorter of the five-year period ending on the date of the disposition and your holding period for such common stock, in which case, subject to the exception set forth in the third sentence of
the next paragraph, such gain will be subject to U.S. federal income tax as described in "— *U.S. Trade or Business Income*" below.

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In general, a corporation is a USRPHC if the fair market value of its "United States real property interests" (as defined in the Code) equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business. We believe that we are not currently, and we do not anticipate becoming in the future, a USRPHC for U.S. federal income tax purposes. In the event that we are determined to be a USRPHC, your gain on the sale, exchange or other taxable disposition of our common stock will, nonetheless, not be subject to tax as U.S. trade or business income if your holdings (direct and indirect, taking into account certain constructive ownership rules) at all times during the applicable period described in the third bullet point above constituted 5% or less of our common stock, provided that our common stock was "regularly traded" (as defined by applicable Treasury regulations) on an established securities market during such period.

**U.S. Trade or Business Income** 

For purposes of this discussion, your dividend income with respect to our common stock and gain on the sale, exchange or other taxable disposition of our common stock will be considered to be "U.S. trade or business income" (A) if such dividend income or gain is effectively connected with your conduct of a trade or business within the United States and, if required by an applicable income tax treaty, is attributable to a permanent establishment (or, if you are an individual, a fixed base) that you maintain in the United States, or (B) with respect to gain, if we are or have been a USRPHC at any time during the shorter of the five-year period ending on the date of the disposition of our common stock and your holding period for our common stock (subject to the 5% ownership exception set forth above in the last sentence of the second paragraph of "—*Sale, Exchange or Other Taxable Disposition of Common Stock*"). Generally, a Non-U.S. Holder's U.S. trade or business income is not subject to U.S. federal withholding tax (provided that the Non-U.S. Holder complies with applicable certification and disclosure requirements, including providing a properly executed IRS Form W-8ECI (or successor form)); instead, such income is subject to U.S. federal income tax on a net basis at regular U.S. federal income tax rates (generally in the same manner as a United States person). If you are a corporation, any U.S. trade or business income that you receive may also be subject to a "branch profits tax" at a 30% rate, or at a lower rate prescribed by an applicable income tax treaty.

**Information Reporting and Backup Withholding** 

We must annually report to the IRS and to each Non-U.S. Holder any dividend income that is subject to U.S. federal withholding tax or that is exempt from such withholding tax pursuant to an income tax treaty. Copies of these information returns may also be made available under the provisions of a specific treaty or agreement to the tax authorities of the country in which a Non-U.S. Holder resides or is established. Under certain circumstances, the Code imposes a backup withholding obligation on certain reportable payments. Dividends paid to you will generally be exempt from backup withholding if you certify your non-U.S. status by providing a properly executed IRS Form W-8BEN, Form W-8BEN-E or Form W-8ECI (or, in each case, a successor form) or otherwise establish an exemption and the applicable withholding agent does not have actual knowledge or reason to know that you are a United States person or that the conditions of such other exemption are not, in fact, satisfied.

The payment of the proceeds from a Non-U.S. Holder's sale, exchange or other taxable disposition of our common stock to or through the U.S. office of any broker (U.S. or non-U.S.) will be subject to information reporting and, depending on the circumstances, backup withholding unless you certify as to your non-U.S. status under penalties of perjury by providing the certification described above to the broker or otherwise establish an exemption, and the broker does not have actual knowledge or reason to know that you are a United States person or that the conditions of any other exemption are not, in fact, satisfied. The payment of proceeds from a Non-U.S. Holder's sale, exchange or other taxable disposition of our common stock to or through a non-U.S. office of a non-U.S. broker will not be subject to information reporting or backup withholding unless the non-U.S. broker has certain types of relationships with the United States (a "U.S. related financial intermediary"). In the case of the payment of proceeds from a Non-U.S. Holder's sale, exchange or other taxable disposition of our common

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stock to or through a non-U.S. office of a broker that is either a United States person or a U.S. related financial intermediary, the Treasury regulations require information reporting (but generally not backup withholding) unless the broker has documentary evidence in its files, such as the certifications described above, that the Non-U.S. Holder is not a United States person and the broker has no knowledge to the contrary. You are urged to consult your tax advisor on the application of information reporting and backup withholding in light of your particular circumstances.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules from a payment to you will be refunded or credited against your U.S. federal income tax liability, if any, provided that the required information is timely furnished to the IRS.

**FATCA** 

Pursuant to Sections 1471 through 1474 of the Code, commonly referred to as the Foreign Account Tax Compliance Act ("FATCA"), "foreign financial institutions" (which include most foreign hedge funds, private equity funds, mutual funds, securitization vehicles and any other investment vehicles) and "non-financial foreign entities" (each as defined in the Code) that do not otherwise qualify for an exemption must comply with information reporting rules with respect to their U.S. account holders and investors or be subject to a withholding tax on certain types of U.S.-source payments made to them (whether received as a beneficial owner or as an intermediary for another party).

More specifically, a foreign financial institution or non-financial foreign entity that does not comply with the FATCA reporting requirements or otherwise qualify for an exemption will generally be subject to a 30% withholding tax with respect to any "withholdable payments." The FATCA withholding tax will apply even if the payment would otherwise not be subject to U.S. nonresident withholding tax. For this purpose, withholdable payments generally include U.S.-source payments otherwise subject to nonresident withholding tax (such as U.S.-source dividends) and, subject to the proposed Treasury regulations discussed below, gross proceeds from the disposition of any equity instruments of U.S. issuers (such as our common stock). The U.S. Department of the Treasury has proposed regulations, the preamble to which state that they can generally be relied upon until final regulations are issued, that exempt from FATCA withholding gross proceeds from the dispositions of stock. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Withholding under FATCA currently applies to dividends paid in respect of our common stock. To prevent withholding on dividends, you may be required to provide the Company (or its withholding agents) with applicable tax forms or other information. You are urged to consult with your own tax advisors regarding the effect, if any, of FATCA to you based on your particular circumstances.

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**UNDERWRITING (CONFLICTS OF INTEREST)** 

Under the terms and subject to the conditions in an underwriting agreement dated the date of this prospectus, the underwriters named below, for whom are acting as representatives, have severally agreed to purchase, and the selling stockholders have agreed to sell to them, severally, the number of shares indicated below:

---

| | |
|:---|:---|
| **Name** | **Number of Shares** |
|  Morgan Stanley & Co. LLC |  |
|  Goldman Sachs & Co. LLC |  |
|  BMO Capital Markets Corp. |  |
|  Jefferies LLC |  |
|  Apollo Global Securities, LLC |  |
|  Total |  |

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The underwriters and the representatives are collectively referred to as the "underwriters" and the "representatives," respectively. The underwriters are offering the shares of common stock subject to their acceptance of the shares and subject to prior sale. The underwriting agreement provides that the obligations of the several underwriters to pay for and accept delivery of the shares of common stock offered by this prospectus are subject to the approval of certain legal matters and to certain other conditions. The underwriters are obligated to take and pay for all of the shares of common stock offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below.

The underwriters initially propose to offer part of the shares of common stock directly to the public at the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the initial offering of the shares of common stock, the offering price and other selling terms may from time to time be varied by the representatives.

The selling stockholders have granted to the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase up to additional shares of common stock at the public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering of the shares of common stock offered by this prospectus. To the extent the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase about the same percentage of the additional shares of common stock as the number listed next to the underwriter's name in the preceding table bears to the total number of shares of common stock listed next to the names of all underwriters in the preceding table.

The following table shows the per share and total public offering price, underwriting discounts and commissions and proceeds before expenses to the selling stockholders. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase up to an additional shares of common stock.

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| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  |<br>**Per<br>Share** | **No Exercise** | **Full<br>Exercise** |
|  Public offering price | $| $| $|
|  Underwriting discounts and commissions to be paid by the selling stockholders | $| $| $|
|  Proceeds, before expenses, to selling stockholders | $| $| $|

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The estimated offering expenses payable by us, exclusive of the underwriting discounts and commissions, are approximately $. We have agreed to reimburse the underwriters for expenses relating to clearance of this offering with the Financial Industry Regulatory Authority up to $.

The underwriters have informed us that they do not intend sales to discretionary accounts to exceed 5% of the total number of shares of common stock offered by them.

We have applied to list our common stock on the NYSE under the trading symbol "PXED."

We, our directors and officers, the selling stockholders and the holders of substantially all of our outstanding stock and stock options have agreed that, without the prior written consent of and on behalf of the underwriters, we and they will not, and will not publicly disclose an intention to, during the period ending 180 days after the date of this prospectus (the "restricted period"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of common stock or any securities convertible into or exercisable or exchangeable for shares of common
stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file any registration statement with the Securities and Exchange Commission relating to the offering of any
shares of common stock or any securities convertible into or exercisable or exchangeable for common stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the common stock,

whether any such transaction described above is to be settled by delivery of common stock or such other securities, in cash or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and , in their sole discretion, may release the common stock and other securities subject to the lock-up agreements described above in whole or in part at any time.

In order to facilitate the offering of the common stock, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the common stock. Specifically, the underwriters may sell more shares than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares available for purchase by the underwriters under the over-allotment option. The underwriters can close out a covered short sale by exercising the over-allotment option or purchasing shares in the open market. In determining the source of shares to close out a covered short sale, the underwriters will consider, among other things, the open market price of shares compared to the price available under the over-allotment option. The underwriters may also sell shares in excess of the over-allotment option, creating a naked short position. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the common stock in the open market after pricing that could adversely affect investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid for, and purchase, shares of common stock in the open market to stabilize the price of the common stock. These activities may raise or maintain the market price of the common stock above independent market levels or prevent or retard a decline in the market price of the common stock. The underwriters are not required to engage in these activities and may end any of these activities at any time.

We, the selling stockholders and the underwriters have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

A prospectus in electronic format may be made available on websites maintained by one or more underwriters or selling group members, if any, participating in this offering. The representatives may agree to

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allocate a number of shares of common stock to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representatives to underwriters that may make internet distributions on the same basis as other allocations.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees and expenses.

In addition, in the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

**Pricing of the Offering** 

Prior to this offering, there has been no public market for our common stock. The initial public offering price will be determined by negotiations between the selling shareholders and the representatives. Among the factors to be considered in determining the initial public offering price will be our future prospects and those of our industry in general, our sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios, price-sales ratios, market prices of securities and certain financial and operating information of companies engaged in activities similar to ours.

**Conflicts of Interest** 

Affiliates of Apollo beneficially own in excess of 10% of our issued and outstanding common stock. Because Apollo Global Securities, LLC, an affiliate of Apollo, is an underwriter in this offering and its affiliates own in excess of 10% of our issued and outstanding common stock, Apollo Global Securities, LLC is deemed to have a "conflict of interest" under FINRA Rule 5121. Accordingly, this offering is being made in compliance with the requirements of FINRA Rule 5121. Pursuant to that rule, the appointment of a "qualified independent underwriter" is not required in connection with this offering as the members primarily responsible for managing the public offering do not have a conflict of interest, are not affiliates of any member that has a conflict of interest and meet the requirements of paragraph (f)(12)(E) of Rule 5121. Apollo Global Securities, LLC will not confirm any sales to any account over which it exercises discretionary authority without the specific written approval of the account holder.

**Selling Restrictions** 

***Canada***

The shares of common stock may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the shares of common stock must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

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Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, *provided* that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts ("NI 33-105"), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

***European Economic Area***

In relation to each member state of the European Economic Area (each, a "Relevant State"), no shares of common stock have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares of common stock which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that offers of shares may be made to the public in that Relevant State at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under Article 2 of the Prospectus
Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under
Article 2 of the Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

*provided* that no such offer of the shares of common stock shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

Each person in a Relevant State who receives any communication in respect of, or who acquires any shares under, the offering contemplated hereby will be deemed to have represented, warranted and agreed to and with each of the underwriters, their affiliates and us that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is a "qualified investor" within the meaning of the Prospectus Regulation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of any shares acquired by it as a financial intermediary (as that term is used in Article 5 of the
Prospectus Regulation), (i) the shares of common stock acquired by it in this offering have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer
or resale to, persons in any Relevant State other than qualified investors (as that term is defined in the Prospectus Regulation), or have been acquired in other circumstances falling within the points (a) to (d) of Article 1(4) of the
Prospectus Regulation and the prior consent of the representatives has been given to the offer or resale; or (ii) where the shares of common stock have been acquired by it on behalf of persons in any Relevant State other than qualified
investors, the offer of those shares to it is not treated under the Prospectus Regulation as having been made to such persons.

We, the underwriters, their affiliates and others will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the foregoing, a person who is not a "qualified investor" and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire shares in this offering. Neither we nor the underwriters have authorized, nor do we authorize, the making of any offer of the shares of common stock through any financial intermediary, other than offers made by the underwriters which constitute the final placement of the shares of common stock contemplated in this prospectus.

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For the purposes of this provision, the expression an "offer to the public" in relation to the shares of common stock in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

***United Kingdom***

This prospectus and any other material in relation to the shares of common stock described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this prospectus relates is available only to, and will be engaged in only with persons who are (i) persons having professional experience in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO"); (ii) high net worth entities falling within Article 49(2)(a) to (d) of the FPO; (iii) outside the United Kingdom (the "UK"); or (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000, as amended (the "FSMA") in connection with the issue or sale of any shares may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). The shares of common stock are only available in the UK to, and any invitation, offer or agreement to purchase or otherwise acquire the shares of common stock will be engaged in only with, Relevant Persons. This prospectus and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person in the UK. Any person in the UK that is not a Relevant Person should not act or rely on this Prospectus or any of its contents.

No shares have been offered or will be offered pursuant to the offering to the public in the UK prior to the publication of a prospectus in relation to the shares of common stock which has been approved by the Financial Conduct Authority, except that the shares of common stock may be offered to the public in the UK at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under Article 2 of the UK
Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under
Article 2 of the UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Section 86 of the FSMA,

*provided* that no such offer of the shares of common stock shall require us and/or any underwriter or any of their affiliates to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

Each person in the UK who receives any communication in respect of, or who acquires any shares under, the offering contemplated hereby will be deemed to have represented, warranted and agreed to and with each of the underwriters, their affiliates and us that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is a "qualified investor" within the meaning of the UK Prospectus Regulation and meets the
criteria outlined in this section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of any shares acquired by it as a financial intermediary (as that term is used in Article 5 of the
UK Prospectus Regulation), (i) the shares of common stock acquired by it in this offering have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their
offer or resale to, persons in the UK other than qualified investors (as that term is defined in the UK Prospectus Regulation), or have been acquired in other circumstances falling within the points (a) to (d) of Article 1(4) of the UK
Prospectus Regulation and the prior consent of the representatives

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has been given to the offer or resale; or (ii) where the shares of common stock have been acquired by it on behalf of persons in the UK other than qualified investors, the offer of those shares to it is not treated under the UK Prospectus Regulation as having been made to such persons.

We, the underwriters, their affiliates and others will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the foregoing, a person who is not a "qualified investor" and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire shares in this offering. Neither we nor the underwriters have authorized, nor do we authorize, the making of any offer of the shares of common stock through any financial intermediary, other than offers made by the underwriters which constitute the final placement of the shares of common stock contemplated in this prospectus.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares of common stock in the UK means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase any shares, and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

***Hong Kong***

The shares of common stock may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (the "CO"), or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) (the "SFO"); (ii) to "professional investors" as defined in the SFO and any rules made thereunder; or (iii) in other circumstances which do not result in the document being a "prospectus" as defined in the CO, and no advertisement, invitation or document relating to the shares may be issued or may be in the possession of any person for the purpose of issue (in each case, whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the SFO and any rules made thereunder.

***Japan***

No registration pursuant to Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) (the "FIEL") has been made or will be made with respect to the solicitation of the application for the acquisition of the shares of common stock.

Accordingly, the shares of common stock have not been, directly or indirectly, offered or sold and will not be, directly or indirectly, offered or sold in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan) or to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements, and otherwise in compliance with, the FIEL and the other applicable laws and regulations of Japan.

*For Qualified Institutional Investors ("QII")* 

Please note that the solicitation for newly-issued or secondary securities (each as described in Paragraph 2, Article 4 of the FIEL) in relation to the shares of common stock constitutes either a "QII only private placement" or a "QII only secondary distribution" (each as described in Paragraph 1, Article 23-13 of the FIEL). Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the FIEL, has not been made in relation to the shares of common stock. The shares of common stock may only be transferred to QIIs.

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*For Non-QII Investors* 

Please note that the solicitation for newly-issued or secondary securities (each as described in Paragraph 2, Article 4 of the FIEL) in relation to the shares of common stock constitutes either a "small number private placement" or a "small number private secondary distribution" (each as is described in Paragraph 4, Article 23-13 of the FIEL). Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the FIEL, has not been made in relation to the shares of common stock. The shares of common stock may only be transferred en bloc without subdivision to a single investor.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares of common stock may not be circulated or distributed, nor may the shares of common stock be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA; (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA; or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares of common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the shares of common stock under Section 275 of the SFA, except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32").

Where the shares of common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for 6 months after that trust has acquired the shares of common stock under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA or (6) as specified in Regulation 32.

***Switzerland***

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document does not constitute a prospectus within the meaning of, and has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure

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standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the shares of common stock or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, us, or the shares of common stock have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of the shares of common stock will not be supervised by, the Swiss Financial Market Supervisory Authority, and the offer of shares has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the shares of common stock.

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus. The shares of common stock to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the shares of common stock offered should conduct their own due diligence on the shares of common stock. If you do not understand the contents of this prospectus you should consult an authorized financial advisor.

***Australia***

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to this offering. This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001 (the "Corporations Act") and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the shares of common stock may only be made to persons ("Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act), or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer our common stock without disclosure to investors under Chapter 6D of the Corporations Act.

The shares of common stock applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares of common stock must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

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***Israel***

In the State of Israel this prospectus shall not be regarded as an offer to the public to purchase shares of common stock under the Israeli Securities Law, 5728—1968, which requires a prospectus to be published and authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli Securities Law, 5728–1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35 investors, subject to certain conditions (the "Addressed Investors"), or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728—1968, subject to certain conditions (the "Qualified Investors"). The Qualified Investors shall not be taken into account in the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed Investors. We have not and will not take any action that would require it to publish a prospectus in accordance with and subject to the Israeli Securities Law, 5728—1968. We have not and will not distribute this prospectus or make, distribute or direct an offer to subscribe for our common stock to any person within the State of Israel, other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in of the First Addendum to the Israeli Securities Law, 5728—1968. In particular, we may request, as a condition to be offered common stock, that Qualified Investors will each represent, warrant and certify to us and/or to anyone acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968; (ii) which of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968 regarding Qualified Investors is applicable to it; (iii) that it will abide by all provisions set forth in the Israeli Securities Law, 5728—1968 and the regulations promulgated thereunder in connection with the offer to be issued common stock; (iv) that the shares of common stock that it will be issued are, subject to exemptions available under the Israeli Securities Law, 5728—1968: (a) for its own account; (b) for investment purposes only; and (c) not issued with a view to resale within the State of Israel, other than in accordance with the provisions of the Israeli Securities Law, 5728—1968; and (v) that it is willing to provide further evidence of its Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and may have to sign and submit a declaration containing, inter alia, the Addressed Investor's name, address and passport number or Israeli identification number.

***Brazil***

The offer and sale of our common stock have not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM Resolution no 160, dated July 13, 2022, as amended, or unauthorized distribution under Brazilian laws and regulations. Our common stock may only be offered to Brazilian professional investors (as defined by applicable CVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of our common stock on regulated securities markets in Brazil is prohibited.

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**LEGAL MATTERS** 

The validity of the shares of common stock offered hereby will be passed upon for us by Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York. The validity of the shares of common stock offered hereby will be passed upon for the underwriters by Simpson Thacher & Bartlett LLP, New York, New York.

**EXPERTS** 

The financial statements of AP VIII Queso Holdings, L.P. as of August 31, 2024 and 2023, and for each of the two years in the period ended August 31, 2024, included in this prospectus, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 with respect to the common stock being sold in this offering. This prospectus constitutes a part of that registration statement. This prospectus does not contain all the information set forth in the registration statement and the exhibits and schedules to the registration statement, because some parts have been omitted in accordance with the rules and regulations of the SEC. For further information with respect to us and our common stock being sold in this offering, you should refer to the registration statement and the exhibits and schedules filed as part of the registration statement. Statements contained in this prospectus regarding the contents of any agreement, contract or other document referred to herein are not necessarily complete; reference is made in each instance to the copy of the contract or document filed as an exhibit to the registration statement. Each statement is qualified by reference to such exhibit.

After we have completed this offering, we will be subject to the informational reporting requirements of the Exchange Act and, in accordance with the Exchange Act, we will be required to file annual, quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The SEC's website address is www.sec.gov.

We maintain a website at www.phoenix.edu. We intend to make the information filed with or furnished to the SEC available free of charge on our website after the completion of this offering. You can review these documents on the SEC's website, as described above. In addition, we will provide electronic or paper copies of our filings free of charge upon request. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this prospectus or any other report or documents we file with or furnish to the SEC.

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**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  | **Page** |
|  **Audited Consolidated Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin876348_2) | F-2 |
|  [Consolidated Balance Sheets as of August 31, 2024 and August 31, 2023](#fin876348_3) | F-3 |
|  [Consolidated Statements of Income for the years ended August 31, 2024 and August 31, 2023](#fin876348_4) | F-4 |
|  [Consolidated Statements of Comprehensive Income for the years ended August 31, 2024 and August 31, 2023](#fin876348_5) | F-5 |
|  [Consolidated Statements of Equity for the years ended August 31, 2024 and August 31, 2023](#fin876348_6) | F-6 |
|  [Consolidated Statements of Cash Flows for the years ended August 31, 2024 and August 31, 2023](#fin876348_7) | F-7 |
|  [Notes to Consolidated Financial Statements](#fin876348_8) | F-8 |
|  | **Page** |
|  **Unaudited Condensed Consolidated Financial Statements** |  |
|  [Condensed Consolidated Balance Sheets as of May 31, 2025 and August 31, 2024](#fin876348_9) | F-33 |
|  [Condensed Consolidated Statements of Income for the nine months ended May 31, 2025 and 2024](#fin876348_10) | F-34 |
|  [Condensed Consolidated Statements of Comprehensive Income for the nine months ended May 31, 2025 and 2024](#fin876348_11) | F-35 |
|  [Condensed Consolidated Statements of Equity for the nine months ended May 31, 2025 and 2024](#fin876348_12) | F-36 |
|  [Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2025 and 2024](#fin876348_13) | F-37 |
|  [Notes to Condensed Consolidated Financial Statements](#fin876348_14) | F-38 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the stockholders and the Board of Directors of Apollo Education Group, Inc. and the limited partners and the general partner of AP VIII Queso Holdings, L.P.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of AP VIII Queso Holdings, L.P. and subsidiaries (the "Company") as of August 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the two years in the period ended August 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended August 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Tempe, Arizona

January 29, 2025

We have served as the Company's auditor since 2004.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONSOLIDATED BALANCE SHEETS** 

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| | | |
|:---|:---|:---|
|  | **As of August 31,** | **As of August 31,** |
| **(In thousands)** | **2024** | **2023** |
|  **ASSETS** |  |  |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $297339 | $240660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 58831 | 54969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable securities | 16336 | 10556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 51245 | 45875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid income taxes | 871 | 20782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 16844 | 29047 |
|  Total current assets | 441466 | 401889 |
|  Marketable securities | 10438 | 11135 |
|  Property and equipment, net | 36262 | 33888 |
|  Intangible assets, net | 82725 | 82805 |
|  Operating lease right-of-use assets | 49073 | 56856 |
|  Deferred income taxes, net | 46503 | 67334 |
|  Other assets | 28783 | 28354 |
|  **Total assets** | $695250 | $682261 |
|  **LIABILITIES AND EQUITY** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $33476 | $23291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and benefits | 33939 | 29247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Student deposits | 83823 | 109494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 45089 | 50960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | 9367 | 12603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 44814 | 46954 |
|  Total current liabilities | 250508 | 272549 |
|  Long-term operating lease liabilities | 74848 | 85707 |
|  Other long-term liabilities | 20964 | 20635 |
|  **Total liabilities** | 346320 | 378891 |
|  Commitments and contingencies (Note 10 and Note 11) |  |  |
|  Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General partner |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited partners (1,028 units outstanding as of August 31, 2024 and 2023) | 327259 | 284088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income (loss) | 45 | (234) |
|  Total Queso equity | 327304 | 283854 |
|  Noncontrolling interests | 21626 | 19516 |
|  **Total equity** | 348930 | 303370 |
|  **Total liabilities and equity** | $695250 | $682261 |

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The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF INCOME** 

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| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **(In thousands, except per unit data)** | **2024** | **2023** |
|  **Net revenue** | $950015 | $835245 |
|  Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 403923 | 379259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 343993 | 328784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 50113 | 40744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation charges |  | 4789 |
|  **Total costs and expenses** | 798029 | 753576 |
|  **Operating income** | 151986 | 81669 |
|  Interest income | 16690 | 8529 |
|  Interest expense | (960) | (1769) |
|  Other loss, net | (475) | (791) |
|  **Income before income taxes** | 167241 | 87638 |
|  Provision for income taxes | 52093 | 21706 |
|  **Net income** | 115148 | 65932 |
|  **Net income attributable to noncontrolling interests** | (2018) | (1002) |
|  **Net income attributable to Queso** | $113130 | $64930 |
|  **Earnings per unit:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic income per unit attributable to Queso | $110.05 | $63.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted income per unit attributable to Queso | $104.95 | $60.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted weighted average units outstanding | 1028 | 1028 |

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The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

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| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Net income** | $115148 | $65932 |
|  Other comprehensive income (net of tax)<sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of available-for-sale securities | 279 | 208 |
|  **Comprehensive income** | 115427 | 66140 |
|  **Comprehensive income attributable to noncontrolling interests** | (2018) | (1002) |
|  **Comprehensive income attributable to Queso** | $113409 | $65138 |

---

(1) The tax effect during fiscal years 2024 and 2023 was not material.

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF EQUITY** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **General<br>Partner** | **Limited**<br>**Partners** | **Limited**<br>**Partners** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
| **(In thousands)** | **Equity** | **Units** | **Equity** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
|  **Balance as of August 31, 2022** | $— | 1028 | $227486 | $(442) | $227044 | $14475 | $241519 |
|  Impact of adopting new accounting standard for leases |  |  | (8328) |  | (8328) |  | (8328) |
|  Change in fair value of available-for-sale securities, net of tax |  |  |  | 208 | 208 |  | 208 |
|  Share-based compensation in subsidiary equity |  |  |  |  |  | 5558 | 5558 |
|  Capital distributions to noncontrolling interests |  |  |  |  |  | (1519) | (1519) |
|  Net income |  |  | 64930 |  | 64930 | 1002 | 65932 |
|  **Balance as of August 31, 2023** | $— | 1028 | $284088 | $(234) | $283854 | $19516 | $303370 |
|  Change in fair value of available-for-sale securities, net of tax |  |  |  | 279 | 279 |  | 279 |
|  Share-based compensation in subsidiary equity |  |  |  |  |  | 5775 | 5775 |
|  Capital contributions |  |  |  |  |  | 98 | 98 |
|  Capital distributions to noncontrolling interests |  |  |  |  |  | (5781) | (5781) |
|  Capital distributions to limited partners ($68.05 per unit) |  |  | (69959) |  | (69959) |  | (69959) |
|  Net income |  |  | 113130 |  | 113130 | 2018 | 115148 |
|  **Balance as of August 31, 2024** | $— | 1028 | $327259 | $45 | $327304 | $21626 | $348930 |

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The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

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| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $115148 | $65932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 5775 | 5558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 21056 | 23906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash lease expense | 7783 | 14809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on interest rate swaptions | 12727 | (3725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses | 212 | 11507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses on accounts receivable | 40532 | 32104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 20737 | 17875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (45902) | (36394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid income taxes | 19911 | (2262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (1104) | (35508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 10185 | 17329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and benefits | 4692 | 3961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Student deposits | (25671) | 6955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (5871) | 10296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (14095) | (28112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (2879) | 1451 |
|  **Net cash provided by operating activities** | 163236 | 105682 |
|  Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of property and equipment | (22589) | (15717) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of marketable securities | (15316) | (13628) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of marketable securities | 10756 | 16047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investing activities | (353) | (3636) |
|  **Net cash used in investing activities** | (27502) | (16934) |
|  Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on borrowings |  | (5000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions | 98 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital distributions to noncontrolling interests | (5332) | (1519) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital distributions to limited partners | (69959) |  |
|  **Net cash used in financing activities** | (75193) | (6519) |
|  **Net change in cash and restricted cash** | 60541 | 82229 |
|  Cash and restricted cash, beginning | 295629 | 213400 |
|  Cash and restricted cash, end | $356170 | $295629 |
|  Supplemental disclosure information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payments, net | $11445 | $7074 |

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The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 1. Nature of Operations and Significant Accounting Policies** 

***Description of Business***

AP VIII Queso Holdings, L.P. ("Queso", and together with its subsidiaries, the "Company", "we", "us", or "our") is a limited partnership that was formed in accordance with the laws of Delaware on January 9, 2014. However, Queso has made an election to be classified as a corporation for federal income tax purposes.

As of August 31, 2024, the limited partners have contributed $1,028 million to the Company, in exchange for the issuance of units representing a fractional part of the partnership interests of all limited partners in Queso. No limited partner has any right or obligation to make any further capital contributions to Queso. Additional capital contributions may be made to Queso pursuant to the issuance of additional equity interests of Queso, subject to the preemptive rights of the limited partners. Distributions of available cash or other assets to the limited partners of Queso (in proportion to their relative percentage interests) are to be made at such times and in such amounts as its general partner determines. Queso distributed $70 million to its limited partners during fiscal year 2024, representing $68.05 per unit, and did not make any distributions to its limited partners in fiscal year 2023.

On February 1, 2017, Queso acquired Apollo Education Group, Inc. and its subsidiaries ("AEG"), which was publicly-traded prior to the acquisition, pursuant to an Agreement and Plan of Merger, dated February 7, 2016, by merging Socrates Merger Sub, Inc., an Arizona corporation and a wholly-owned subsidiary of Queso, with and into AEG (the "Merger"), with AEG surviving as a wholly-owned subsidiary of Queso. Following the Merger, Queso holds all of the equity interests in AEG, an education provider that offers undergraduate, graduate, certificate and nondegree educational programs and services principally online to working adults in the U.S. through The University of Phoenix, Inc. (the "University"). The University represents all of our net revenue in both fiscal years 2024 and 2023.

Our fiscal year is from September 1 to August 31.

***Pursuit of Strategic Alternatives***

On May 31, 2023, the University entered into an Asset Purchase Agreement (the "Purchase Agreement") with Four Three Education, Inc. ("Four Three"), an Idaho non-profit corporation affiliated with The Regents of the University of Idaho ("UofI"), under which Four Three would acquire substantially all the assets which relate to, or are used in connection with, operating the business of the University for a base purchase price of $550 million. In June 2024, the Purchase Agreement was extended through June 10, 2025 to provide additional time to complete the sale. As part of the extension, University of Phoenix paid a $5 million extension fee to UofI and the exclusivity clause in the Purchase Agreement was removed providing University of Phoenix the right to pursue other transactions at its discretion. If the sale under the amended Purchase Agreement is not completed, University of Phoenix may be obligated to pay UofI an incremental fee up to $15 million. Consummation of the sale is subject to normal and customary conditions, including, but not limited to, the receipt of consents or approvals from applicable educational governing bodies. In addition, consummation of the sale is subject to Four Three obtaining financing for the purchase, and subject to the University maintaining certain operating results. Accordingly, consummation of the pending sale is uncertain.

In July 2023, we purchased two interest rate swaptions for an aggregate premium of $9 million to hedge interest rate risk associated with the debt financing we expected to be used for the sale to Four Three. The swaptions had an aggregate notional amount of $681 million and they expired in February 2024. As of August 31, 2023, the swaptions were reported at fair value of $12.7 million in other current assets on our consolidated balance sheets, with changes in fair value reflected in earnings on our consolidated statements of

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

income. The fair value was determined primarily by using discounted cash flow valuation methods encompassing Level 2 significant observable inputs such as estimated cash flows based on interest rate data and relevant curves from public markets and discount rates applied. The swaptions expired out of the money and, accordingly, we recognized a $12.7 million loss for the change in fair value in fiscal year 2024, which is included in restructuring charges, acquisition expense and other on our consolidated statements of income.

We expense all offering costs, primarily consisting of accounting, legal, printing and filing services, and other third-party fees related to an initial public offering ("IPO"), as incurred because we will not receive any proceeds from such offering. We did not incur any of these offering costs in fiscal year 2024 or fiscal year 2023.

***Basis of Presentation***

Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

***Estimates, Assumptions and Judgments***

The preparation of these consolidated financial statements in accordance with GAAP requires management to make certain estimates, assumptions and judgments that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during applicable reporting periods. Although we believe our estimates, assumptions and judgments are reasonable, actual results may differ from our estimates under different assumptions, judgments or conditions.

***Principles of Consolidation***

These consolidated financial statements include the assets, liabilities, revenues and expenses of Queso, our wholly-owned subsidiaries and other subsidiaries that we control, substantially all of which represents the University. We eliminate intercompany transactions and balances in consolidation.

We record noncontrolling interests to recognize the noncontrolling ownership interests in our consolidated subsidiaries. We allocate a portion of the net income (loss) of such subsidiaries to our noncontrolling interests generally based on the respective noncontrolling shareholder's ownership interest in the consolidated subsidiary.

***Revenue Recognition***

We recognize revenue in a manner to depict the transfer of goods or services to our customers at an amount that reflects the consideration we expect to receive in exchange for our goods or services. The University generates all of our consolidated net revenue, and substantially all of the University's net revenue is generated from tuition-bearing degree programs. The University's students generally fund their education through loans and/or grants from U.S. federal financial aid programs established by Title IV of the Higher Education Act and regulations promulgated thereunder ("Title IV"), military benefit programs, tuition assistance from their employers, or personal funds.

We analyze revenue recognition on a portfolio approach based on our determination that the University's students generally behave similarly (e.g., enrollment agreements all contain similar terms, refund policies are consistent, and all students work with the University to obtain some type of funding as described above). We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each contract separately.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

Under the University's non-term academic delivery model, students generally enroll in a program of study encompassing a series of courses taken consecutively over the length of the program. Each course represents one performance obligation that the University satisfies over time and, accordingly, time elapsed (an output method) is used to recognize revenue evenly over the duration of the course (e.g., daily over five weeks for a five-week course). For students who participate in the University's risk-free, three-week program during their first credit-bearing course, the University does not recognize revenue for the risk-free period until students continue beyond the risk-free period, which is when the contract with the student has commercial substance.

The University's refund policy permits students who attend 60% or less of a course to be eligible for a refund for the portion of the course they did not attend. Accordingly, the University ceases revenue recognition for the remainder of a course if a student withdraws prior to the tuition refund period elapsing. We record refunds as a reduction of deferred revenue, and refunds are limited to the balance of deferred revenue at the date that a student withdraws.

Discounts are generally recognized over the period of instruction in the same manner as the related revenue to which the discount relates. Additionally, the University offers certain discount programs which provide students with the opportunity to earn increased tuition discounts as they take certain courses. The University evaluates such programs to determine whether the future discounts represent a material right to the student. If the future discounts represent a material right, we estimate the amount of these future discounts based on historical experience with student persistence and recognize the associated amount when the performance obligation is satisfied, which is either when the student attends applicable future courses or is no longer eligible for the discount. As of August 31, 2024 and 2023, we had $10.3 million and $9.4 million, respectively, of contract liabilities for discount programs that represent material rights to students.

Tuition benefits for our employees and their eligible dependents are included in net revenue and instructional and support costs and were $3.3 million and $2.7 million during fiscal years 2024 and 2023, respectively.

Sales and other indirect taxes collected from students and remitted to governmental authorities are excluded from net revenue. Collected but unremitted sales and other indirect taxes are included as a liability on our consolidated balance sheets and are not material to our consolidated financial statements.

As of August 31, 2024 and 2023, we had contract liabilities consisting of deferred revenue and student deposits as reflected on our consolidated balance sheets. Changes in the opening and closing balances of our contract liabilities primarily results from the timing of Title IV fund disbursements and course starts along with our associated performance.

***Allowance for Credit Losses***

We reduce our accounts receivable by an allowance for estimated losses, which encompasses estimates that are subjective and require judgment. Our estimates generally are based on historical collection experience and write-offs, current student enrollment, the aging of the receivables, and current trends. Accounts receivable are written off once the account is deemed to be uncollectible, which typically occurs after collection efforts have ceased.

***Cash and Cash Equivalents and Restricted Cash and Cash Equivalents***

We consider all highly liquid investments with original maturities to us of three months or less from the date we purchase the investment to be cash equivalents. Our cash and cash equivalents are all placed with high-credit-quality financial institutions and only a limited portion is insured by the Federal Deposit Insurance Corporation. We have not experienced any losses on our cash and cash equivalents.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

Restricted cash and cash equivalents are presented separately from cash and cash equivalents on our consolidated balance sheets. Restricted cash primarily represents collateral for an outstanding letter of credit that supports a sublease for a facility we have exited, and Title IV funds held for students that results in credit balances on a student's account, which we are required to maintain and restrict pursuant to the terms of our program participation agreement with the Department of Education. The terms and conditions of Title IV programs are the only restriction on the use of these funds.

The following provides a reconciliation of cash and restricted cash as presented on our consolidated statements of cash flows as of August 31:

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| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Cash and cash equivalents | $297339 | $240660 |
|  Restricted cash and cash equivalents | 58831 | 54969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total cash and restricted cash** | $356170 | $295629 |

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***Marketable Securities***

We invest a portion of our excess cash in instruments that may include corporate bonds, tax-exempt municipal bonds, time deposits, commercial paper and other marketable securities. We present such instruments with original maturities to us greater than three months as marketable securities on our consolidated balance sheets, and we classify our marketable securities as either current or noncurrent based on each instrument's remaining contractual maturity. Securities with maturities of twelve months or less are classified as current, and securities with maturities greater than twelve months are classified as noncurrent.

We determine the designation of our marketable securities at the time of purchase and reevaluate such designation at the end of each period. We designate and account for our marketable securities as available-for-sale. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, reflected in equity as a component of accumulated other comprehensive income (loss).

We periodically review our marketable securities for impairment by considering whether we intend to sell the impaired security or whether it is more likely than not that we will be required to sell the security before recovering its amortized cost basis. If a security is impaired, the credit loss is recognized in earnings on our consolidated statements of income.

***Property and Equipment, Net***

Property and equipment is recorded at cost less accumulated depreciation. We capitalize certain costs to internally develop software consisting primarily of the direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs expensed as incurred), the application development stage (certain costs capitalized, certain costs expensed as incurred), and the post-implementation/operation stage (all costs expensed as incurred). The costs capitalized in the application development stage primarily include the costs of designing the application, coding, installation of hardware, and testing.

Our construction in progress principally represents internally developed software. Such construction in progress is recorded at cost and is depreciated once the related asset is ready for its intended use. The costs of repairs and maintenance are expensed as incurred.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

Property and equipment is depreciated using the straight-line method over the following useful lives:

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| | |
|:---|:---|
|  Software | 3 years |
|  Furniture and equipment | 3 to 5 years |
|  Leasehold improvements | Shorter of useful life or lease term |

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***Intangibles***

As of August 31, 2024 and 2023, we had indefinite-lived intangibles of $82.1 million, which includes $61.5 million and $20.6 million for the University's accreditation and trademark, respectively. Intangibles as of August 31, 2024 and 2023 also includes $0.6 million and $0.7 million, respectively, of finite-lived intangibles related to new program development that is being amortized over three years.

We assign indefinite lives to intangibles that we believe have the continued ability to generate cash flows indefinitely; have no legal, regulatory, contractual, economic or other factors limiting the useful life of the respective intangible; and we intend to renew the respective intangible, as applicable, and renewal can be accomplished at little cost.

We assess indefinite-lived intangibles for impairment at least annually. In performing our impairment tests, we first consider the option to assess qualitative factors to determine whether it is more likely than not that the fair value of an intangible is less than its carrying amount. If we conclude that it is more likely than not that the fair value is less than the carrying amount based on our qualitative assessment, or that a qualitative assessment should not be performed, we proceed with quantitative impairment tests. In performing quantitative impairment tests for intangibles, we compare the estimated fair value of the intangible with its carrying value and recognize an impairment if the carrying value of the intangible exceeds its fair value.

***Other Long-Lived Asset Impairments***

We evaluate the carrying amount of our other long-lived assets whenever changes in circumstances or events indicate that the carrying value of such assets may not be recoverable. If such circumstances or events occur, we assess recoverability by comparing the estimated undiscounted future cash flows expected to be generated by the assets with their carrying value. If the carrying value of the assets exceeds the estimated undiscounted future cash flows expected to be generated by the assets, an impairment loss is recognized for the difference between the estimated fair value of the assets and their carrying value.

***Leases***

We have non-cancelable operating leases for our campuses and administrative facility that expire through 2031. The leases may include lease incentives in the form of rent abatements and tenant improvement allowances, and/or renewal options to extend the lease term. We determine if an arrangement is or contains a lease at the lease inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheets and instead, the short-term lease cost is accounted for on a straight-line basis over the lease term.

At the lease commencement date, we recognize a lease liability and a right-of-use ("ROU") asset representing our right to use the underlying asset over the lease term. The initial measurement of the lease liability is calculated on the basis of the present value of the remaining lease payments and the ROU asset is measured on the basis of this liability, adjusted by prepaid and accrued rent, lease incentives, and initial direct

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

costs. The subsequent measurement of a lease is dependent on whether the lease is classified as an operating lease or a finance lease. We do not have any financing leases and operating lease cost is recognized on a straight-line basis over the lease term, with the cost included in instructional and support costs, general and administrative and restructuring charges, acquisition expense and other on our consolidated statements of income.

Our leases require other payments such as costs related to service components, real estate taxes, common area maintenance, and insurance. These costs are generally variable in nature and based on the actual costs incurred and required by the lease. As we have elected to not separate lease and non-lease components for all classes of underlying asset, all variable costs associated with the lease are expensed in the period incurred and presented and disclosed as variable lease costs. Our lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. We do not have any leases that have not yet commenced that create significant rights and obligations for the lessee.

A lessee is required to use the rate implicit in the lease when measuring the lease liability, unless that rate is not readily determinable. Alternatively, we are permitted to use our incremental borrowing rate ("IBR"), which is defined as the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. Since the rates implicit in our leases are not readily determinable, we use our IBR when measuring our leases. The IBR is calculated using treasury yield curve rates, adjusted with a risk base spread.

***Restructuring Charges, Acquisition Expense and Other***

Restructuring charges principally consist of expense associated with non-cancelable lease obligations and other related expenses for leased space we have exited as part of our ground campus and administrative space rationalization plans, severance and other employee separation costs, and other expenses related to exit activities. We recognize restructuring obligations and liabilities for exit and disposal activities at fair value in the period the liability is incurred. Measuring fair value and recognizing the associated liabilities is subjective and requires significant judgment. For our non-cancelable lease obligations, we record the obligation when we terminate the contract in accordance with the contract terms or when we cease using the right conveyed by the contract. Our employee severance costs are expensed on the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed over the future service period. As of August 31, 2024, our remaining restructuring liabilities associated with leases consists of future non-rent, executory costs from leases we exited prior to adopting the new lease standard.

We record a cumulative adjustment resulting from changes in the estimated timing or amount of cash flows associated with restructuring obligations in the period of change using the same discount rate that was initially used to measure the obligation's fair value. Changes in restructuring obligations resulting from the passage of time are recorded as accretion expense. Adjustments to restructuring obligations, including accretion expense, are included in restructuring charges, acquisition expense and other on our consolidated statements of income.

We also include unusual or infrequent items in restructuring charges, acquisition expense and other such as, but not limited to, expenses associated with our pursuit of strategic alternatives. See Note 2, Restructuring Charges, Acquisition Expense and Other, for additional disclosure.

***Loss Contingencies***

We are subject to various claims and contingencies that arise from time to time in the ordinary course of business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. When we become aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount of the loss or range of loss can be estimated, we

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

record a liability for the loss. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where we believe a conclusion to the matter will be reached. The liability excludes any anticipated loss recoveries from third parties such as insurers, which are recorded as a receivable if recovery is probable. If the loss is not probable or estimable, we disclose the claim if the likelihood of a potential loss is reasonably possible and the range of reasonably possible loss could be material. For matters where no loss contingency is recorded, we expense legal fees as incurred.

***Share-Based Compensation***

As described in Note 9, Share-Based Awards and Savings Plan, all of our share-based awards cover common stock in our subsidiary, the University. Accordingly, we record compensation expense associated with these share-based awards as a component of noncontrolling interests on our consolidated balance sheets.

We measure and recognize compensation expense for our equity classified share-based awards based on the estimated fair value of the awards on the grant date. We record compensation expense for these awards over the requisite service period using the straight-line method for awards with a service condition and the graded vesting attribution method for awards with both service and performance conditions. We account for forfeitures when they occur.

For share-based awards with service and performance conditions, we measure the fair value of such awards as of the grant date and record expense for our estimate of the number of shares expected to vest. Our estimate of the number of shares expected to vest is based on our determination of the probable outcome of the performance condition. For awards that vest solely upon a change in control, we typically do not believe a change in control is probable (and therefore omit the related shares from our estimate) until an applicable transaction is consummated. We record a cumulative adjustment to share-based compensation expense in periods that we change our estimate of the number of shares expected to vest. Additionally, we ultimately adjust the expense recognized to reflect the actual vested shares following the resolution of the performance conditions.

***Income Taxes***

We are subject to the income tax laws of the United States, which are complex and subject to differing interpretations. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the new rate is enacted. We record a valuation allowance to reduce deferred tax assets to the amount that we believe is more likely than not to be realized.

We evaluate and account for uncertain tax positions using a two-step approach. Recognition (step one) occurs when we conclude that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Derecognition of a tax position that was previously recognized would occur when we subsequently determine that a tax position no longer meets the more likely than not threshold of being sustained. We classify interest and penalties accrued in connection with unrecognized tax benefits as income tax expense on our consolidated statements of income.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

***Advertising Costs***

We expense advertising costs as incurred. Our advertising costs were $176 million and $175 million in fiscal years 2024 and 2023, respectively, and are included in general and administrative on our consolidated statements of income.

***Earnings per Unit***

We calculate earnings per unit by dividing net income attributable to Queso by the weighted average units outstanding. The units are held by the limited partners and there are no potentially dilutive securities in Queso. However, as further described in *Share-Based Compensation* above, all of our share-based awards cover common stock in our subsidiary, the University, and the issuance of such shares are potentially dilutive by increasing noncontrolling interests and thereby decreasing income attributable to Queso. We calculate the dilutive effect of our share-based awards by applying the treasury stock method.

The components of basic and diluted earnings per unit consist of the following for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **(In thousands, except per unit data)** | **2024** | **2023** |
|  **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Queso | $113130 | $64930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive effect of share-based awards in subsidiary<sup>(1),(2)</sup> | (5239) | (2321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to Queso after dilutive effect | $107891 | $62609 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted weighted average units outstanding | 1028 | 1028 |
|  Basic income per unit attributable to Queso | $110.05 | $63.16 |
|  Diluted income per unit attributable to Queso<sup>(1),(2)</sup> | $104.95 | $60.90 |

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(1) Diluted income per unit attributable to Queso in fiscal year 2024 represents the impact of approximately
1.6 million and 0.1 million dilutive stock options and restricted stock units, respectively, and fiscal year 2023 represents the impact of approximately 1.2 million and 0.1 million dilutive stock options and restricted stock
units, respectively.

(2) Diluted income per unit attributable to Queso in fiscal year 2024 excludes approximately 2.1 million
and 0.1 million outstanding stock options and restricted stock units, respectively, and fiscal year 2023 excludes approximately 2.5 million and 0.1 million outstanding stock options and restricted stock units, respectively, because
such awards are contingently issuable shares. Substantially all of the contingently issuable awards vest upon certain changes in control or ownership and some are contingently issuable because they vest upon achievement of performance conditions.

***Related Party Transactions***

We receive management consulting and advisory fees for approximately $2 million per year, which includes certain reimbursable costs, payable to an affiliate of Apollo Global Management, Inc. ("Apollo") and The Vistria Group, LP ("Vistria"). Apollo and Vistria are affiliated with entities that have ownership interests in Queso. Fees associated with these services are included in restructuring charges, acquisition expense and other on our consolidated statements of income.

We also have related party transactions with certain Apollo-affiliated portfolio companies, which includes payments of $3.4 million and $2.7 million in fiscal years 2024 and 2023, respectively, to Rackspace Technology, Inc. for technology services.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

***Fair Value***

The carrying amount of financial assets and financial liabilities reported on our consolidated balance sheets, including accounts receivable and accounts payable, approximate fair value because of the short-term nature of these financial instruments.

For fair value measurements of assets and liabilities that are recognized or disclosed at fair value, we consider fair value to be an exit price, which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. We use valuation techniques to determine fair value consistent with the market approach, income approach and/or cost approach, and we prioritize the inputs used in our valuation techniques using the following three-tier fair value hierarchy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—Observable inputs that reflect unadjusted quoted prices in active markets for identical assets
and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—Observable inputs other than quoted prices in active markets for identical assets or
liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or
liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—Unobservable inputs that are supported by little or no market activity.

We categorize each of our fair value measurements for disclosure purposes in one of the above three levels based on the lowest level input that is significant to the fair value measurement in its entirety. In measuring fair value, our valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. We use prices and inputs that are current as of the measurement date, including during periods of market volatility. Therefore, classification of inputs within the hierarchy may change from period to period depending upon the observability of those prices and inputs.

***Segment Reporting***

We have one operating and reportable segment, the University, which represents all of our consolidated net revenue in fiscal years 2024 and 2023. Our chief operating decision maker, Christopher Lynne, President, currently evaluates performance and manages our operations at the consolidated level, and operating results are not evaluated on any component level.

***New Accounting Standards***

*Financial Instruments—Credit Losses* 

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (*"*ASU*")* 2016-13, *Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326)*. This update changes the way that entities measure credit losses by requiring such losses to be estimated using an "expected credit loss" approach rather than the historical "incurred loss" approach. The new approach requires entities to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable forecasts of collectability. We adopted this update as of September 1, 2023 using the modified retrospective approach without adjusting prior comparative periods. The adoption did not have a material impact on our financial statements and, therefore, did not result in an adjustment to retained earnings.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

*Segment Reporting—Reportable Segment Disclosures* 

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,* which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This ASU will be effective for our fiscal year beginning on September 1, 2024 and we are currently evaluating the impact this ASU may have on our financial statement disclosures.

*Income Taxes—Income Tax Disclosures* 

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740)—Improvements to Income Tax Disclosures*, which modifies and enhances certain required income tax disclosures. ASU 2023-09 will be effective for our fiscal year beginning on September 1, 2025 and we are currently evaluating the impact it may have on our financial statement disclosures.

*Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures* 

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,* which requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations, as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. This ASU will be effective for our fiscal year beginning on September 1, 2027 and we are currently evaluating the impact this ASU may have on our financial statement disclosures.

***Subsequent Events***

We have evaluated events after August 31, 2024 and through January 29, 2025, which is the date the consolidated financial statements were available to be issued.

As of August 31, 2024, Talent Mobility, LLC, a wholly-owned subsidiary of AEG, had a minority ownership interest in Empath, Inc. ("Empath"). Empath provides clients with a company-wide skills inventory for its employees through machine learning-based skills inference. During fiscal year 2024, we loaned $0.6 million to Empath, which is included in accounts receivable, net on our consolidated balance sheets as of August 31, 2024. Subsequent to fiscal year 2024, AEG acquired a controlling interest in Empath pursuant to an Agreement and Plan of Merger, by merging Talent Mobility, LLC with Empath, with Empath surviving as a subsidiary of AEG. AEG paid $2 million, net of cash acquired, to facilitate this merger.

In December 2024, Queso distributed approximately $134 million to its limited partners, representing $130.35 per unit, and approximately $14 million to noncontrolling interests.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 2. Restructuring Charges, Acquisition Expense and Other** 

Restructuring charges, acquisition expense and other include the following for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Lease expense for space exited prior to adopting new accounting standard for leases | $5091 | $3427 |
|  Other lease expense for exited space | 10110 | 12919 |
|  Severance costs | 1091 | 1057 |
|  Other restructuring costs |  | 416 |
|  Impairment charges and asset disposal losses<sup>(1)</sup> | 212 | 11507 |
|  Loss (gain) on interest rate swaptions | 12727 | (3725) |
|  Strategic alternatives expense<sup>(2)</sup> | 12530 | 12872 |
|  Other<sup>(3)</sup> | 8352 | 2271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Restructuring charges, acquisition expense and other** | $50113 | $40744 |

---

(1) Substantially all of the expense in fiscal year 2023 resulted from a right-of-use asset impairment charge (refer to Note 6, Leases), and the write-off of leasehold improvement assets at the University's main administrative office
buildings as part of its rationalization plan discussed below.

(2) Strategic alternatives expense includes costs associated with the evaluation of strategic alternatives for
the future ownership of the University (refer to Note 1, Nature of Operations and Significant Accounting Policies).

(3) Other includes unusual or infrequent items, including a reversal of a $2.6 million charge in fiscal
year 2023 associated with a regulatory matter.

The following details the changes in our restructuring liabilities during the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Lease and**<br>**Related**<br>**Costs, Net** | **Severance and**<br>**Other Employee**<br>**Separation Costs** | **Other**<br>**Restructuring**<br>**Related Costs** | **Total** |
|  **August 31, 2022** | $56283 | $1257 | $477 | $58017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense | 3427 | 1057 | 416 | 4900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of adopting new accounting standard for leases | (30436) |  |  | (30436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments | (7804) | (2237) | (893) | (10934) |
|  **August 31, 2023** | 21470 | 77 |  | 21547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense | 5091 | 1091 |  | 6182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments | (4891) | (952) |  | (5843) |
|  **August 31, 2024<sup>(1)</sup>** | $21670 | $216 | $— | $21886 |

---

(1) The gross, undiscounted obligation associated with our restructuring liabilities as of August 31, 2024
was approximately $27 million, which principally represents future estimated non-rent, executory costs associated with certain leases we have exited that will be paid over the respective lease terms
through fiscal year 2031.

The University's restructuring activities over recent years principally include closing its ground locations, rationalizing its leased administrative office facilities, and workforce reductions. The University's main administrative office buildings have 22 floors and the University's rationalization plan consisted of exiting 19 of the floors, all of which were exited as of August 31, 2023.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 3. Financial Instruments** 

The following summarizes our cash and cash equivalents, restricted cash and cash equivalents and marketable securities by financial instrument category as of the respective periods:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** |
| **($ in thousands)** | **Amortized<br>Cost** | **Unrealized<br>Gains** | **Unrealized<br>Losses** | **Fair Value** | **Cash and Cash<br>Equivalents<sup>(1)</sup>** | **Current<br>Marketable<br>Securities** | **Noncurrent<br>Marketable<br>Securities** |
|  Cash | $162273 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $162273 | $162273 | $— | $— |
|  **Level 1:** |  |  |  |  |  |  |  |
|  Money market funds | 193897 |  |  | 193897 | 193897 |  |  |
|  **Level 2:** |  |  |  |  |  |  |  |
|  Corporate bonds | 26714 | 75 | (15) | 26774 |  | 16336 | 10438 |
|  **Total** | $382884 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75 | $(15) | $382944 | $356170 | $16336 | $10438 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **August 31, 2023** | **August 31, 2023** | **August 31, 2023** | **August 31, 2023** | **August 31, 2023** | **August 31, 2023** | **August 31, 2023** |
| **($ in thousands)** | **Amortized<br>Cost** | **Unrealized<br>Gains** | **Unrealized<br>Losses** | **Fair Value** | **Cash and Cash<br>Equivalents<sup>(1)</sup>** | **Current<br>Marketable<br>Securities** | **Noncurrent<br>Marketable<br>Securities** |
|  Cash | $168685 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $168685 | $168685 | $— | $— |
|  **Level 1:** |  |  |  |  |  |  |  |
|  Money market funds | 126944 |  |  | 126944 | 126944 |  |  |
|  **Level 2:** |  |  |  |  |  |  |  |
|  Corporate bonds | 20990 | 21 | (300) | 20711 |  | 9576 | 11135 |
|  Other | 1014 |  | (34) | 980 |  | 980 |  |
|  **Total** | $317633 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21 | $(334) | $317320 | $295629 | $10556 | $11135 |

---

(1) Cash and cash equivalents includes restricted cash and cash equivalents.

We measure our financial instruments at fair value on a recurring basis as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Money market funds—We use Level 1 inputs that primarily consist of real-time quotes for
transactions in active exchange markets involving identical assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other financial instruments—We use a market approach with Level 2 observable inputs for all other
securities. The Level 2 inputs include quoted prices for similar assets in active markets, or quoted prices for identical or similar assets in markets that are not active.

Our marketable securities have maturities that occur within three years. We may sell certain of our marketable securities prior to their stated maturities for strategic reasons including, but not limited to, investment yield and credit risk management. We have not recognized significant gains or losses related to such sales. Additionally, all of our securities are investment grade and we have no related allowance for credit losses as of August 31, 2024.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 4. Accounts Receivable, Net** 

Accounts receivable, net consist of the following as of August 31:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Student accounts receivable | $97388 | $94190 |
|  Allowance for credit losses | (49200) | (51972) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net student accounts receivable | 48188 | 42218 |
|  Related party receivable | 600 |  |
|  Other receivables | 2457 | 3657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Accounts receivable, net** | $51245 | $45875 |

---

The student receivables are not collateralized; however, credit risk is reduced as the amount owed by any individual student is insignificant relative to the total student receivables.

The following summarizes the activity in allowance for credit losses during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Beginning allowance for credit losses** | $51972 | $45100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses on accounts receivable | 40532 | 32104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs, net of recoveries | (43304) | (25232) |
|  **Ending allowance for credit losses** | $49200 | $51972 |

---

**Note 5. Property and Equipment, Net** 

Property and equipment, net consist of the following as of August 31:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Software | $40373 | $50662 |
|  Leasehold improvements (includes tenant improvement allowances) | 7562 | 6101 |
|  Furniture and equipment | 7065 | 8763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross property and equipment, less any construction in progress** | 55000 | 65526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated depreciation | (24439) | (36275) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Property and equipment, net, less any construction in progress** | 30561 | 29251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress | 5701 | 4637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Property and equipment, net** | $36262 | $33888 |

---

Depreciation expense was the following during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Software depreciation | $16229 | $20617 |
|  Other depreciation | 4394 | 2971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Depreciation expense** | $20623 | $23588 |

---

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 6. Leases** 

Lease expense is included in instructional and support costs, general and administrative and restructuring charges, acquisition expense and other on our consolidated statements of income. The components of our operating lease costs were the following during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Operating lease cost | $15258 | $24192 |
|  Right-of-use asset impairment<sup>(1)</sup> |  | 9584 |
|  Variable lease cost<sup>(2)</sup> | 4096 | 4040 |
|  Less: Sublease income | (5647) | (11357) |
|  Total lease cost | $13707 | $26459 |

---

(1) As discussed in Note 2, Restructuring Charges, Acquisition Expense and Other, the University's main
administrative office buildings has 22 floors and the University's rationalization plan consisted of exiting 19 of the floors, all of which were exited as of August 31, 2023. During fiscal year 2023, we evaluated the right-of-use asset associated with this lease for recoverability. Accordingly, we compared the estimated undiscounted cash flows associated with the lease, which principally
consisted of estimated future sublease income over the remaining lease term, to the carrying amount of the right-of-use asset. Based on our analysis, the right-of-use asset was not recoverable, and we recorded a $9.6 million impairment charge to reduce the asset to its estimated fair value.

(2) We did not have any material short-term lease cost in fiscal years 2024 and 2023.

The maturities of our operating lease payments were as follows for periods subsequent to August 31, 2024:

---

| | |
|:---|:---|
| **($ in thousands)** | |
| 2025 | $15913 |
| 2026 | 16180 |
| 2027 | 16265 |
| 2028 | 16590 |
| 2029 | 16922 |
|  Thereafter | 27445 |
|  Total operating lease payments | 109315 |
|  Less: liability accretion | (25100) |
|  Present value of operating lease liabilities | 84215 |
|  Less: current operating lease liabilities | (9367) |
|  Long-term operating lease liabilities | $74848 |

---

The following table provides supplemental information related to leases for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
|  | **2024** | **2023** |
|  Cash paid for amounts included in the measurement of operating lease liabilities | $21.4 million | $37.3 million |
|  Operating lease ROU asset changes in exchange for new / remeasured lease liabilities<sup>(1)</sup> |  |  |
|  Weighted-average remaining operating lease term | 6 years | 7 years |
|  Weighted-average operating lease discount rate | 8.6% | 8.5% |

---

(1) Excludes the impact of adopting the new lease standard, which resulted in the recognition of
$81 million in ROU assets and $126 million in lease liabilities in fiscal year 2023.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 7. Other Liabilities** 

Other current liabilities consist of the following as of August 31:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Accrued advertising | $15378 | $10284 |
|  Contract liabilities for discount programs | 10305 | 9394 |
|  Restructuring obligations | 3408 | 3116 |
|  Other | 15723 | 24160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other current liabilities** | $44814 | $46954 |

---

Other long-term liabilities consist of the following as of August 31:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Restructuring obligations | $18478 | $18431 |
|  Other | 2486 | 2204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other long-term liabilities** | $20964 | $20635 |

---

**Note 8. Income Taxes** 

All of our income before income taxes was generated in the United States in fiscal years 2024 and 2023. The provision for income taxes consists of the following during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. federal | $26668 | $929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and local | 4688 | 2902 |
|  **Total current** | 31356 | 3831 |
|  Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. federal | 16683 | 15400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and local | 4054 | 2475 |
|  **Total deferred** | 20737 | 17875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Provision for income taxes** | $52093 | $21706 |

---

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

The provision for income taxes differs from the tax computed using the statutory U.S. federal income tax rate of 21% as a result of the following during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Provision for income taxes at the statutory U.S. federal income tax rate | $35121 | $18404 |
|  Effect of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal benefit | 6574 | 4488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claim of right reversal (credit), net<sup>(1)</sup> | 8842 | (908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 1556 | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Provision for income taxes** | $52093 | $21706 |

---

(1) During fiscal year 2024, we elected to no longer pursue a claim of right credit associated with our
$50 million settlement payment to the Federal Trade Commission (see Note 10, Commitments and Contingencies) principally due to the extension of the Purchase Agreement with UofI (see Note 1, Nature of Operations and Significant Accounting
Policies). As a result of the extension, we used and expect to use more of our net operating losses than previously expected.

Deferred tax assets and liabilities consist of the following as of August 31:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **2024** | **2023** |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasing transactions | $26118 | $29664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforward<sup>(1)</sup> | 25264 | 50800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 27886 | 26030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross deferred tax assets** | 79268 | 106494 |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed assets | 568 | 3046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangibles | 19123 | 19071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 12105 | 14080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 969 | 2963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross deferred tax liabilities** | 32765 | 39160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Deferred income taxes, net** | $46503 | $67334 |

---

(1) As of August 31, 2024, we had approximately $163 million of federal net operating loss
carryforwards that carryforward indefinitely. We also had approximately $16 million of state net operating loss carryforwards that carryforward indefinitely and $306 million that expire in various years beginning 2024 through 2039. Our
utilization of net operating loss carryforwards may be subject to annual limitations due to ownership change provisions, as applicable, under income tax laws.

As of August 31, 2024 and August 31, 2023, we have not recorded a valuation allowance for any of our deferred tax assets principally based on our recent cumulative pre-tax income.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

***Uncertain Tax Positions***

The following summarizes the activity in unrecognized tax benefits, excluding interest and penalties, for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Beginning unrecognized tax benefits** | $26585 | $27340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increases for tax positions taken in current year |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increases for tax positions taken in prior years |  | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decreases for settlements with tax authorities |  | (1372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decreases for tax positions of prior years |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decreases due to lapse of applicable statutes of limitations |  |  |
|  **Ending unrecognized tax benefits** | $26585 | $26585 |

---

Interest and penalties related to unrecognized tax benefits, which are included in provision for income taxes on our consolidated statements of income, were insignificant in fiscal years 2024 and 2023. As of August 31, 2024 and 2023, our accrued interest and penalties related to unrecognized tax benefits on our consolidated balance sheets were insignificant.

Although we cannot predict the timing of resolution with taxing authorities, if any, we do not believe it is reasonably possible that any of our unrecognized tax benefits will be reduced in the next twelve months due to settlement with tax authorities or expiration of the applicable statute of limitations.

As of August 31, 2024, $25.5 million of our unrecognized tax benefits would favorably affect our effective tax rate if recognized. If amounts accrued are less than amounts ultimately assessed by the taxing authorities, we would record additional income tax expense.

***Income Tax Audits***

Our U.S. federal income tax returns for fiscal years 2021 through 2023 are currently open for review by the Internal Revenue Service. Additionally, tax years as early as fiscal year 2019 remain subject to examination by state or local tax authorities.

**Note 9. Share-Based Awards and Savings Plan** 

***Share-Based Awards***

The University adopted the University of Phoenix, Inc. Management Equity Plan ("UOPX Plan") whereby the University may grant various share-based awards covering shares of its common stock, including nonqualified stock options, restricted stock units ("RSUs") and other equity-based awards. Approximately 7.4 million shares of the University's common stock have been reserved for issuance over the term of the UOPX Plan and 5.5 million shares are available for issuance under the UOPX Plan as of August 31, 2024.

Awards granted under the UOPX Plan may have both service-vesting and performance-vesting conditions and generally vest over one to five years. However, the majority of the University's share-based awards vest or become exercisable, as applicable, immediately upon certain changes in control or ownership.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

*University of Phoenix Stock Options* 

Under the UOPX Plan, stock options are granted at exercise prices equal to or exceeding the fair market value of the University's common stock on the date of the grant and have contractual terms of five or ten years. The University issues new shares of common stock when stock options are exercised.

The University has granted stock options which vest over time periods ranging from one to five years, vest based on financial performance measures and/or vest upon certain changes in control or ownership. For stock options subject to performance conditions, we record expense for our estimate of the number of options expected to vest based on our determination of the probable outcome of the performance conditions, and we ultimately adjust the expense recognized to reflect the actual vested options following the resolution of the performance conditions.

The following provides a summary of the University's stock option activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** |
|  | **Number of**<br>**Shares**<br>**(in thousands)** | **Weighted**<br>**Average**<br>**Exercise Price**<br>**per Share<sup>(1)</sup>** | **Weighted**<br>**Average**<br>**Remaining**<br>**Contractual<br>Term**<br>**(Years)** | **Aggregate<br>Intrinsic<br>Value**<br>**(in thousands)** |
|  **Balance at August 31, 2022** | 2540 | $7.34 |  |  |
|  Granted | 2427 | $12.62 |  |  |
|  Exercised<sup>(2)</sup> |  | N/A |  | N/A |
|  Forfeited, canceled or expired |  | N/A |  |  |
|  **Balance at August 31, 2023** | 4967 | $9.92 |  |  |
|  Granted |  | N/A |  |  |
|  Exercised<sup>(2)</sup> | (25) | $3.90 |  | $285 |
|  Forfeited, canceled or expired |  | N/A |  |  |
|  **Balance at August 31, 2024** | 4942 | $8.61 | 7 | $45257 |
|  **Vested and expected to vest as of August 31, 2024** | 3202 | $7.46 | 7 | $33022 |
|  **Exercisable as of August 31, 2024** | 2393 | $6.39 | 5 | $27230 |
|  **Available for future grant as of August 31, 2024** | 286 |  |  |  |

---

(1) During fiscal year 2024, the University paid dividends of $2.01 per share. The outstanding stock options as
of the dividend date participated in the dividend through either a cash payment or a reduction in exercise price.

(2) In fiscal year 2024, cash received from options was $0.1 million, and the actual tax benefit realized
on stock option exercises was insignificant. We did not receive any cash from stock option exercises in fiscal year 2023.

As of August 31, 2024, the University had approximately $1 million of unrecognized compensation expense related to unvested stock options that are expected to vest, and approximately $12 million of unrecognized compensation expense related to stock options that vest upon certain changes in control or ownership. The fair value of stock options that vested during fiscal years 2024 and 2023 was $2.6 million and $1.1 million, respectively.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

The University did not grant any stock options during fiscal year 2024. For grants during fiscal year 2023, the University used the Black-Scholes-Merton option pricing model to estimate the fair value of stock options on the grant dates using the following weighted average assumptions:

---

| | |
|:---|:---|
|  Expected volatility<sup>(1)</sup> | 50.0% |
|  Expected term (in years)<sup>(2)</sup> | 5.5 |
|  Risk-free interest rate<sup>(3)</sup> | 3.9% |
|  Expected dividend yield<sup>(4)</sup> | 0.0% |
|  Estimated fair value per option granted | $6.7 |

---

(1) The University's stock is not publicly traded and expected volatility was estimated primarily based on
the historical stock price volatility of a peer group of similar, publicly traded companies over the expected term of the options.

(2) The University estimated the term of its stock options based primarily on the contractual term of the
options and expected future employee behavior.

(3) The University determined the risk-free interest rate using the yield currently available on U.S. Treasury zero-coupon securities with a remaining term equal to the expected term of the options.

(4) The University's expected dividend yield was zero because the stock options are expected to
participate in future dividends.

*University of Phoenix Restricted Stock Units* 

The University has granted RSUs which generally vest over three years with 50% vesting based on financial performance measures and the remaining 50% vesting ratably, over three years, in each case subject to continued service. For RSUs subject to performance conditions, we record expense for our estimate of the number of RSUs expected to vest based on our determination of the probable outcome of the performance conditions, and we ultimately adjust the expense recognized to reflect the actual vested RSUs following the resolution of the performance conditions.

The following provides a summary of the University's RSU activity:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br>**Shares**<br>**(in thousands)** | **Weighted**<br>**Average**<br>**Grant Date**<br>**Fair Value** |
|  **Nonvested at August 31, 2022** | 221 | $14.81 |
|  Granted | 150 | $12.62 |
|  Vested and released | (142) | $14.38 |
|  Forfeited | (7) | $14.49 |
|  **Nonvested at August 31, 2023** | 222 | $13.62 |
|  Granted | 169 | $17.77 |
|  Vested and released | (150) | $14.68 |
|  Forfeited | (3) | $13.26 |
|  **Nonvested at August 31, 2024** | 238 | $15.91 |

---

As of August 31, 2024, the University had $2.4 million of unrecognized compensation expense related to unvested RSUs that are expected to vest. This expense is expected to be recognized over a weighted average period of approximately two years. The fair value of RSUs that vested during fiscal years 2024 and 2023 was $2.2 million and $2.0 million, respectively.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

*Share-based Compensation and Associated Tax Benefits* 

The following details share-based compensation for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Year Ended August 31,** | **Year Ended August 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Instructional and student support costs | $1910 | $1523 |
|  General and administrative | 3865 | 4035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Share-based compensation** | 5775 | 5558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of share-based compensation | (1426) | (1376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Share-based compensation, net of tax** | $4349 | $4182 |

---

***Savings Plan***

We offer a 401(k) savings and investment plan which provides eligible employees the opportunity to contribute a portion of their pre-tax compensation. Participants are eligible to receive discretionary matching contributions up to certain levels of their pre-tax compensation and our matching contributions were approximately $6 million for both fiscal years 2024 and 2023.

**Note 10. Commitments and Contingencies** 

***Guarantees***

Queso has indemnified its officers, its general partner, its limited partners and their respective affiliates, and their respective officers, directors, employees, agents and certain other persons from losses and other amounts arising from certain events or occurrences. Additionally, AEG has indemnified its directors, effective as of February 1, 2017, and its officers and directors in place prior to Merger close from losses and other amounts arising from certain events or occurrences. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have liability insurance that mitigates our exposure and enables us to recover a portion of any future amounts paid. The fair value of these indemnification agreements, if any, cannot be estimated.

***Sponsorship Rights Agreement***

In August 2018, AEG entered into an agreement for sponsorship rights on a stadium in Glendale, Arizona, which is the home to the Arizona Cardinals team in the National Football League. The agreement term is in effect until 2030 with options to extend. Pursuant to the agreement, AEG was required to pay $1.5 million for the initial contract year, which increases 3% per year until 2030. As of August 31, 2024, our remaining contractual obligation pursuant to the agreement was approximately $11 million.

***Letters of Credit***

As of August 31, 2024, we had a $35 million outstanding cash collateralized letter of credit, which supports a sublease for a facility we have exited.

***Surety Bonds***

Our insurers issue surety bonds that are required by various states where we operate, or that are required for other purposes. We are obligated to reimburse our insurers for any surety bonds that are paid. As of August 31, 2024, the face amount of these surety bonds was less than $1 million.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

***Litigation and Other Matters***

We are subject to various claims and contingencies that arise from time to time in the ordinary course of business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. We do not believe any of these are material for separate disclosure and we do not believe any of these, individually or in the aggregate, will have a material effect on our consolidated financial position, results of operations or cash flows.

The following is a description of pending litigation, settlements, and other proceedings that fall outside the scope of ordinary and routine litigation incidental to our business.

*Federal Trade Commission ("FTC") Inquiries* 

In December 2019, we executed a Complaint and Settlement with the FTC related to its investigation to determine if the University engaged in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing, or sale of educational products or services. As part of the settlement, we agreed to ongoing obligations with respect to our operations going forward, such as specific prohibitions against misrepresentations regarding subject matters that were a focus of the FTC's investigation, as well as notification, recordkeeping and reporting requirements. In fiscal year 2023, we received follow-up inquiries from the FTC under the compliance monitoring provisions of the settlement order. We have cooperated with the inquiries, and cannot predict the eventual scope, duration or outcome at this time and, accordingly, we have not accrued any liability associated with these inquiries.

*Department of Education Investigation* 

In September 2023, we received a letter from the Investigations Group from Federal Student Aid, which is an office within the Department of Education, stating that it believes the University may have engaged in substantial misrepresentations to prospective students regarding the nature of its financial charges and/or its educational programs. The letter allowed the University to submit a response for the Department's consideration before any action is taken, which we submitted in October 2023. The Department has subsequently informed us that it is not taking any action associated with this matter and, accordingly, we do not believe we have any exposure associated with this matter.

*California Employee Private Attorney General Act Lawsuit* 

In March 2021, a complaint was filed in the Superior Court for the State of California captioned *Gerald W. Olivas vs. The University of Phoenix, Inc.,* Case Number 21091953. The complaint alleges that the University failed to reimburse employees for business related expenses while working from home, and was filed as a representative action on behalf of all University of Phoenix faculty and staff who reside in California. Based on discussions to settle this matter, we accrued an immaterial estimated liability during fiscal year 2022, which we paid in fiscal year 2024 to settle the matter.

*Attorney General Investigations* 

In August 2015 and February 2016, we received investigative subpoenas from the Office of the Attorney General of the State of California. The subpoenas required the production of documents and information regarding a broad spectrum of our business and practices. During fiscal year 2024, we agreed to resolve this matter, which included the payment of an immaterial amount. We do not believe we have any exposure associated with this matter.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 11. Regulatory Matters** 

***Accreditation***

University of Phoenix has been accredited by the Higher Learning Commission ("HLC") since 1978 and holds other programmatic accreditations. In fiscal year 2023, the accreditation of the University was reaffirmed by the HLC through the 2032-2033 academic year.

***Student Financial Aid***

All U.S. federal student financial aid programs are established by Title IV of the Higher Education Act and regulations promulgated thereunder. The Higher Education Act specifies the manner in which the U.S. Department of Education reviews institutions for eligibility and certification to participate in Title IV programs and enters into a Program Participation Agreement ("PPA") with institutions. In October 2020, the University received renewal of its Title IV PPA approving the University's continued participation in Title IV programs with full certification through September 30, 2023. While the University submitted necessary documentation for re-certification in anticipation of the expiration of its certification on September 30, 2023, the Department of Education did not make a decision on our recertification application by such date. Accordingly, our participation in Title IV programs has been automatically extended on a month-to-month basis pending the Department of Education's decision on our application.

***Borrower Defense to Repayment Claims and Closed School Loan Discharges***

In fiscal year 2020, the U.S. Department of Education began sending borrower defense applications to the University. As part of the fact-finding process, the Department sends individual student applications to the University and allows the University the opportunity to submit responses to the borrower defense applications. The University has submitted initial substantive responses to these applications to the Department within the prescribed time period.

In August 2021, the Department announced its intention to establish a negotiated rulemaking committee to develop proposed regulations for borrower defense to repayment and other topics. This negotiated rulemaking began in October 2021 and concluded in December 2021 with the committee failing to reach consensus on borrower defense to repayment. In July 2022, the Department released proposed borrower defense regulations for public comment ("2022 Rules"). Notably, although the 2022 Rules went into effect on July 1, 2023, they were retroactively stayed a short time later in connection with a challenge in the 5th Circuit Court of Appeals. The 5<sup>th</sup> Circuit also remanded the case back to the lower court for the continuation of the litigation challenging the validity of the 2022 Rules, and the Department has asked the Supreme Court to review the 5<sup>th</sup> Circuit's decision. The Supreme Court has decided to hear the appeal, and the district court appears to be waiting for that appellate process to finalize before moving forward with the case at the district court level. Either way, the 5<sup>th</sup> Circuit's stay of the 2022 Rules will remain in place while the litigation moves forward.

If the 2022 Rules are ultimately allowed to move forward, they would, among other things, set a single standard and streamlined process for loan discharge that would apply to all future and pending borrower defense claims as of July 1, 2023, instead of various standards based on the date of the borrower's first loan disbursement; define what kinds of misconduct could lead to borrower defense discharges; establish a presumption that borrowers reasonably relied upon misrepresentations or omissions; establish a reconsideration process for borrowers whose claims are not approved for a full discharge, and create a process for forming groups of borrowers and adjudicating claims based on the common facts of those group claims. The 2022 Rules maintained the Department's ability to seek recoupment of funds from institutions for discharged loans, and the

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

recoupment process remains separate from the loan discharge process. In addition, the 2022 Rules prohibit institutions from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class action waivers for claims related to the making of a Federal Direct Loan or the provision of educational services for which the loan was obtained.

On October 31, 2022, the Department published final rules updating the eligibility criteria for and the process by which borrowers can be eligible to receive a closed school loan discharge. The updated rules allow the Department to process automatic closed school discharges and establishes a discharge window of 180 days prior to the school's closure. The regulation also states that eligible borrowers may receive a discharge if the borrower does not complete either a teach-out or the continuation of their program at a particular location of the school, and gives the Department the authority to adjust the closure date in cases where the institution discontinues the programs in which most borrowers were enrolled. The new regulations were effective July 1, 2023, and have been stayed pursuant to the same litigation impacting the borrower defense rules. Pending the resolution of the litigation, the Department will process closed school loan discharge applications using earlier rules.

On September 20, 2023, the Department announced its approval to discharge nearly $37 million in borrower defense claims for more than 1,200 students who enrolled at University of Phoenix between September 21, 2012 and December 31, 2014. The Department's announcement noted it reviewed evidence obtained from the FTC related to its December 2019 Complaint and Settlement with the University, as well as information the Department obtained from the University's responses to borrower defense claims in connection with its fact-finding process. Although the Department announced that it intends to initiate a recoupment proceeding against the University to seek repayment of the liabilities associated with these approved claims, we have not received any associated communication from the Department. In addition, a recent ruling from the 9<sup>th</sup> Circuit Court of Appeals in a borrower defense-related case to which the University is not a party appears to signal that the Department cannot pursue recoupment of the 1,200 claims mentioned above.

Because of the many questions of fact and law that may arise, the outcome of borrower defense claims is uncertain at this point. Based on the information available to us at present, we cannot estimate a reasonably possible range of loss for borrower defense claims and, accordingly, we have not accrued any liability associated with such claims.

***Gainful Employment Regulations***

Under the Higher Education Act, proprietary institutions are generally eligible to participate in Title IV programs only in respect of educational programs that lead to "gainful employment in a recognized occupation", as defined by the Department of Education.

In October 2023, the Department released final rules on gainful employment that established two independent metrics, both of which must be passed by a program subject to the rule in order to maintain Title IV eligibility. Any program that fails either or both metrics in a single year would be required to provide a disclosure to students, and any program that fails the same metric in two of three consecutive years would lose its access to federal financial aid. The two metrics are 1) a debt-to-earnings ratio that compares the median earnings of graduates who received federal financial aid to the median annual payments on loan debt borrowed for the program, and 2) an earnings premium test that measures whether the typical graduate from a program that received federal financial aid is earning more than a typical high school graduate in their state (or, in some cases, nationally) and within a certain age range in the labor force. A program that fails in two out of three consecutive years, or is voluntarily discontinued by the institution, would not be eligible to have Title IV reinstated for a minimum of three years. Substantially all of the University's programs would be subject to this "gainful employment" evaluation. The final rule also includes the requirement that all schools provide a link to a

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

Department of Education-hosted website that includes related information. The final gainful employment rules were effective July 1, 2024; however it remains uncertain when the Department will release metrics and we continue to evaluate the potential impact the gainful employment regulations may have on our business.

In December 2023, a lawsuit was filed against the Department in the United States District Court for the Northern District of Texas alleging that the rulemaking process and final rule were based on arbitrary and capricious decisions made by the Department, and that the rule violates constitutional rights related to speech, equal protection, and due process. In March 2024, another lawsuit was filed against the Department in the United States District Court for the Northern District of Texas seeking a preliminary and permanent injunction enjoining the Department from enforcing the final rule on the grounds that the rule exceeds the Department's statutory authority, and is arbitrary, capricious, an abuse of discretion, and otherwise is not in accordance with law, and the motion for preliminary injunction was denied in June 2024. In July 2024, these cases were consolidated into one and the outcome remains uncertain.

***Financial Responsibility Composite Score***

To participate in Title IV programs, the U.S. Department of Education regulations specify that an eligible institution of higher education must satisfy specific measures of financial responsibility prescribed by the Department, which is based on a weighted average of the following three annual ratios:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Primary Reserve Ratio—measure of an institution's financial viability and liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity Ratio—measure of an institution's capital resources and its ability to borrow; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net Income Ratio—measure of an institution's profitability.

These ratios provide three individual scores which are converted into a single composite score. The maximum composite score is 3.0. If an institution's composite score is at least 1.5, it is considered financially responsible. If an institution's composite score is less than 1.5 but is 1.0 or higher, it is still considered financially responsible, and the Department may subject the institution to various operating or other requirements. If an institution does not achieve a composite score of at least 1.0, it is subject to additional requirements in order to continue its participation in the Title IV programs, including, but not limited to, submitting to the Department a letter of credit in an amount equal to at least 10%, and at the Department's discretion up to or exceeding 50%, of the Title IV funds received by the institution during its most recently completed fiscal year.

The Department measures the financial responsibility of the University based on Queso's consolidated financial statements, and the fiscal year 2024 composite score for Queso was 2.8.

***90/10 Rule***

To remain eligible to participate in Title IV programs, proprietary institutions of higher education must comply with the so-called "90/10 Rule" under the Higher Education Act and must derive no more than 90% of their cash basis revenue from Federal education assistance funds, as defined in the rule. Failing the 90/10 calculation for a single year would require an institution to notify students that a subsequent failure could result in the institution's inability to participate in Title IV programs. An institution would lose eligibility to participate in Title IV programs upon failing the 90/10 calculation for two consecutive years.

Prior to our fiscal year 2024, only Title IV funds were considered within the 90%. Due to statutory changes that are in effect for fiscal years beginning on or after January 1, 2023, the University's fiscal year 2024 90% metric includes all Federal education assistance funds. All Federal education assistance funds includes funds

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

from programs offered by the U.S. Department of Defense and U.S. Department of Veterans Affairs in addition to the Title IV funds already covered by the 90/10 Rule. University of Phoenix's fiscal year 2024 90/10 Rule percentage was 88%.

***Student Loan Cohort Default Rates***

To remain eligible to participate in Title IV programs, an educational institution's student loan cohort default rates must remain below certain specified levels. An educational institution loses eligibility to participate in Title IV programs if its cohort default rate equals or exceeds 40% for any given year or 30% for three consecutive years. The University's cohort default rate for the 2021 federal fiscal year was zero, principally due to the Department's federal loan payment pause initiated following the Covid-19 pandemic.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
| **($ in thousands)** | **May 31,**<br>**2025** | **August 31,**<br>**2024** |
|  **ASSETS** |  |  |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $203497 | $297339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 39928 | 58831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable securities | 9223 | 16336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 92075 | 51245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid income taxes | 1147 | 871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 20806 | 16844 |
|  Total current assets | 366676 | 441466 |
|  Marketable securities | 14620 | 10438 |
|  Property and equipment, net | 37899 | 36262 |
|  Goodwill | 3732 |  |
|  Intangible assets, net | 87893 | 82725 |
|  Operating lease right-of-use assets | 43703 | 49073 |
|  Deferred income taxes, net | 30614 | 46503 |
|  Other assets | 21617 | 28783 |
|  **Total assets** | $606754 | $695250 |
|  **LIABILITIES AND EQUITY** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $22296 | $33476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and benefits | 22556 | 33939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Student deposits | 12961 | 83823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 73935 | 45089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | 8660 | 9367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 44446 | 44814 |
|  Total current liabilities | 184854 | 250508 |
|  Long-term operating lease liabilities | 67045 | 74848 |
|  Other long-term liabilities | 30370 | 20964 |
|  **Total liabilities** | 282269 | 346320 |
|  Commitments and contingencies (Note 12 and Note 13) |  |  |
|  Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General partner |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited partners | 309640 | 327259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive (loss) income | (39) | 45 |
|  Total Queso equity | 309601 | 327304 |
|  Noncontrolling interests | 14884 | 21626 |
|  **Total equity** | 324485 | 348930 |
|  **Total liabilities and equity** | $606754 | $695250 |

---

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **(In thousands, except per unit data)** | **2025** | **2024** |
|  **Net revenue** | $749801 | $709799 |
|  Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instructional and support costs | 325779 | 299778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 255703 | 242886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, acquisition expense and other | 17886 | 38616 |
|  **Total costs and expenses** | 599368 | 581280 |
|  **Operating income** | 150433 | 128519 |
|  Interest income | 8334 | 12149 |
|  Interest expense | (332) | (794) |
|  Other loss, net |  | (331) |
|  **Income before income taxes** | 158435 | 139543 |
|  Provision for income taxes | 40564 | 34414 |
|  **Net income** | 117871 | 105129 |
|  **Net income attributable to noncontrolling interests** | (1489) | (1821) |
|  **Net income attributable to Queso** | $116382 | $103308 |
|  **Earnings per unit:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic income per unit attributable to Queso | $113.21 | $100.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted income per unit attributable to Queso | $105.27 | $96.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted weighted average units outstanding | 1028 | 1028 |

---

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  **Net income** | $117871 | $105129 |
|  Other comprehensive income (net of tax)<sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of available-for-sale securities | (84) | 209 |
|  **Comprehensive income** | 117787 | 105338 |
|  **Comprehensive income attributable to noncontrolling interests** | (1489) | (1821) |
|  **Comprehensive income attributable to Queso** | $116298 | $103517 |

---

(1) The tax effect during the nine months ended May 31, 2025 and 2024, respectively, was not material.

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF EQUITY** 

**(Unaudited)** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **General<br>Partner** | **Limited**<br>**Partners** | **Limited**<br>**Partners** | **Accumulated<br>Other<br>Comprehensive<br>(Loss) Income** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
| **(In thousands)** | **Equity** | **Units** | **Equity** | **Accumulated<br>Other<br>Comprehensive<br>(Loss) Income** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
|  **Balance as of August 31, 2024** | $— | 1028 | $327259 | $45 | $327304 | $21626 | 348930 |
|  Noncontrolling interest issued in business combination |  |  |  |  |  | 4147 | 4147 |
|  Change in fair value of available-for-sale securities, net of tax |  |  |  | (84) | (84) |  | (84) |
|  Share-based compensation in subsidiary equity |  |  |  |  |  | 1908 | 1908 |
|  Capital distributions to limited partners ($130.35 per unit) |  |  | (134001) |  | (134001) |  | (134001) |
|  Capital distributions to noncontrolling interests |  |  |  |  |  | (14286) | (14286) |
|  Net income |  |  | 116382 |  | 116382 | 1489 | 117871 |
|  **Balance as of May 31, 2025** | $— | 1028 | $309640 | $(39) | $309601 | $14884 | $324485 |
|  | **General<br>Partner** | **Limited**<br>**Partners** | **Limited**<br>**Partners** | **Accumulated<br>Other<br>Comprehensive<br>(Loss) Income** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
| **(In thousands)** | **Equity** | **Units** | **Equity** | **Accumulated<br>Other<br>Comprehensive<br>(Loss) Income** | **Total**<br>**Queso**<br>**Equity** | **Noncontrolling**<br>**Interests** | **Total**<br>**Equity** |
|  **Balance as of August 31, 2023** | $— | 1028 | $284088 | $(234) | $283854 | $19516 | 303370 |
|  Change in fair value of available-for-sale securities, net of tax |  |  |  | 209 | 209 |  | 209 |
|  Share-based compensation in subsidiary equity |  |  |  |  |  | 3727 | 3727 |
|  Capital contributions |  |  |  |  |  | 98 | 98 |
|  Capital distributions to limited partners ($68.05 per unit) |  |  | (69959) |  | (69959) |  | (69959) |
|  Capital distributions to noncontrolling interests |  |  |  |  |  | (5315) | (5315) |
|  Net income |  |  | 103308 |  | 103308 | 1821 | 105129 |
|  **Balance as of May 31, 2024** | $— | 1028 | $317437 | $(25) | $317412 | $19847 | $337259 |

---

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $117871 | $105129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 1908 | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 16348 | 16297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash lease expense | 5370 | 5942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on interest rate swaptions |  | 12727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment charges and asset disposal losses | 113 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses on accounts receivable | 35885 | 29930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 28885 | 25151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities, excluding the impact of acquisition: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (76715) | (36320) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid income taxes | (276) | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 983 | (5382) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (11197) | 1192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and benefits | (11383) | (11984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Student deposits | (70862) | (10473) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 28742 | 19460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (8510) | (11291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (5373) | (4212) |
|  **Net cash provided by operating activities** | 51789 | 140525 |
|  Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of property and equipment | (16399) | (16127) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of marketable securities | (20557) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of marketable securities | 8475 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of marketable securities | 14723 | 10756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition, net of cash acquired | (1982) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investing activities | (58) | (198) |
|  **Net cash used in investing activities** | (15798) | (5569) |
|  Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contributions |  | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital distributions to noncontrolling interests | (14735) | (5315) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital distributions to limited partners | (134001) | (69959) |
|  **Net cash used in financing activities** | (148736) | (75176) |
|  **Net change in cash and restricted cash** | (112745) | 59780 |
|  **Cash and restricted cash, beginning** | 356170 | 295629 |
|  **Cash and restricted cash, end** | $243425 | $355409 |
|  Supplemental disclosure of cash payments and non-cash activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payments, net | $11987 | $8812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest issued in business combination | $4147 | $— |

---

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

**Note 1. Nature of Operations and Significant Accounting Policies** 

***Description of Business***

AP VIII Queso Holdings, L.P. ("Queso", and together with its subsidiaries, the "Company", "we", "us", or "our") is a limited partnership that was formed in accordance with the laws of Delaware on January 9, 2014. However, Queso has made an election to be classified as a corporation for federal income tax purposes. Our fiscal year is from September 1 to August 31.

As of May 31, 2025, the limited partners have contributed $1,028 million to the Company, in exchange for the issuance of units representing a fractional part of the partnership interests of all limited partners in Queso. No limited partner has any right or obligation to make any further capital contributions to Queso. Additional capital contributions may be made to Queso pursuant to the issuance of additional equity interests of Queso, subject to the preemptive rights of the limited partners. Distributions of available cash or other assets to the limited partners of Queso (in proportion to their relative percentage interests) are to be made at such times and in such amounts as its general partner determines.

On February 1, 2017, Queso acquired Apollo Education Group, Inc. and its subsidiaries ("AEG") which was publicly traded prior to the acquisition, pursuant to an Agreement and Plan of Merger, dated February 7, 2016, by merging Socrates Merger Sub, Inc., an Arizona corporation and a wholly owned subsidiary of Queso, with and into AEG (the "Merger"), with AEG surviving as a wholly owned subsidiary of Queso. Following the Merger, Queso holds all of the equity interests in AEG, an education provider that offers undergraduate, graduate, certificate and nondegree educational programs and services principally online to working adults in the U.S. through The University of Phoenix, Inc. (the "University").

***Pursuit of Strategic Alternatives***

On May 31, 2023, the University entered into an Asset Purchase Agreement (the "Purchase Agreement") with Four Three Education, Inc. ("Four Three"), an Idaho non-profit corporation affiliated with The Regents of the University of Idaho ("UofI"), under which Four Three would acquire substantially all the assets which relate to, or are used in connection with, operating the business of the University for a base purchase price of $550 million. In June 2024, the Purchase Agreement was extended through June 10, 2025 to provide additional time to complete the sale. As part of the extension, University of Phoenix paid a $5 million extension fee to UofI and the exclusivity clause in the Purchase Agreement was removed providing University of Phoenix the right to pursue other transactions at its discretion. In June 2025, we terminated the Purchase Agreement and paid an incremental fee of $12.2 million to UofI, which will be included in restructuring charges, acquisition expense and other on our condensed consolidated statements of income in the fourth quarter of fiscal year 2025.

We expense all offering costs, primarily consisting of accounting, legal, printing and filing services, and other third-party fees related to an IPO, as incurred because we are not expecting to receive any proceeds from such offering. We have incurred approximately $6 million of these offering costs in the nine months ended May 31, 2025, and did not incur any of these offering costs in fiscal year 2024. These costs are included in restructuring charges, acquisition expense and other on our condensed consolidated statements of income.

***Basis of Presentation***

These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") regarding interim

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

reporting and, in our opinion, reflect all adjustments of a normal, recurring nature that are necessary for the fair presentation of our financial condition, results of operations and cash flows for the periods presented. These unaudited interim condensed consolidated financial statements do not include all of the information and note disclosures required by GAAP for annual financial statements. Therefore, this information should be read in conjunction with our audited consolidated financial statements and related notes for the fiscal year ended August 31, 2024. We consistently applied the accounting policies described in the notes to audited consolidated financial statements in preparing these unaudited interim condensed consolidated financial statements.

***Principles of Consolidation***

These condensed consolidated financial statements include the assets, liabilities, revenues and expenses of Queso, our wholly owned subsidiaries and other subsidiaries that we control, substantially all of which represents the University. We eliminate intercompany transactions and balances in consolidation.

***Seasonality***

Although the University's non-term academic model encompassing a series of courses taken consecutively over the length of the program reduces seasonal enrollment fluctuations, we have historically experienced, and expect to continue to experience, lower net revenue in our second fiscal quarter (December through February) compared to other quarters due to the University's holiday breaks when no related net revenue is recognized. While our operating costs generally do not fluctuate significantly on a quarterly basis, we have historically experienced, and expect to continue to experience, increased marketing expense in our second and fourth fiscal quarters due to course starts that occur during traditional back-to-school seasons. Because of these seasonal trends and other factors, the results of operations for the nine months ended May 31, 2025 are not necessarily indicative of the results to be expected for the fiscal year ending August 31, 2025.

***Revenue Recognition***

We recognize revenue in a manner to depict the transfer of goods or services to our customers at an amount that reflects the consideration we expect to receive in exchange for our goods or services. The University generates all of our consolidated net revenue, and substantially all of the University's net revenue is generated from tuition-bearing degree programs. The University's students generally fund their education through loans and/or grants from U.S. federal financial aid programs established by Title IV of the Higher Education Act and regulations promulgated thereunder ("Title IV"), military benefit programs, tuition assistance from their employers, or personal funds.

We analyze revenue recognition on a portfolio approach based on our determination that the University's students generally behave similarly (e.g., enrollment agreements all contain similar terms, refund policies are consistent, and all students work with the University to obtain some type of funding as described above). We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each contract separately.

Under the University's non-term academic delivery model, students generally enroll in a program of study encompassing a series of courses taken consecutively over the length of the program. Each course represents one performance obligation that the University satisfies over time and, accordingly, time elapsed (an output method) is used to recognize revenue evenly over the duration of the course (e.g., daily over five weeks for a five-week course). For students who participate in the University's risk-free, three-week program during their first credit-bearing course, the University does not recognize revenue for the risk-free period until students continue beyond the risk-free period, which is when the contract with the student has commercial substance.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

The University's refund policy permits students who attend 60% or less of a course to be eligible for a refund for the portion of the course they did not attend. Accordingly, the University ceases revenue recognition for the remainder of a course if a student withdraws prior to the tuition refund period elapsing. We record refunds as a reduction of deferred revenue, and refunds are limited to the balance of deferred revenue at the date that a student withdraws.

Discounts are generally recognized over the period of instruction in the same manner as the related revenue to which the discount relates. Additionally, the University offers certain discount programs which provide students with the opportunity to earn increased tuition discounts as they take certain courses. The University evaluates such programs to determine whether the future discounts represent a material right to the student. If the future discounts represent a material right, we estimate the amount of these future discounts based on historical experience with student persistence and recognize the associated amount when the performance obligation is satisfied, which is either when the student attends applicable future courses or is no longer eligible for the discount. As of May 31, 2025 and August 31, 2024, we had $16.3 million and $10.3 million, respectively, of contract liabilities for discount programs that represent material rights to students.

Tuition benefits for our employees and their eligible dependents are included in net revenue and instructional and support costs and were $2.8 million and $2.4 million during the nine months ended May 31, 2025 and 2024, respectively.

Sales and other indirect taxes collected from students and remitted to governmental authorities are excluded from net revenue. Collected but unremitted sales and other indirect taxes are included as a liability on our condensed consolidated balance sheets and are not material to our condensed consolidated financial statements.

As of May 31, 2025 and August 31, 2024, we had contract liabilities consisting of deferred revenue and student deposits as reflected on our condensed consolidated balance sheets. The decrease in student deposits from August 31, 2024 to May 31, 2025 was primarily due to a change in the timing of financial aid disbursements for the University's students. Before the change, financial aid funds were typically disbursed in two installments that generally involved four courses. Such funding was included in student deposits on our condensed consolidated balance sheets until students began subsequent courses. Beginning in July 2024, the University began transitioning to financial aid disbursements by course with students transitioning after they complete their current academic year. Other changes in our contract liabilities primarily result from the timing of financial aid disbursements and course starts along with our associated performance.

***Cash and Cash Equivalents and Restricted Cash and Cash Equivalents***

The following provides a reconciliation of cash and restricted cash as presented on our condensed consolidated statements of cash flows as of the respective period ends:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **May 31,**<br>**2025** | **August 31,**<br>**2024** |
|  Cash and cash equivalents | $203497 | $297339 |
|  Restricted cash and cash equivalents | 39928 | 58831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total cash and restricted cash** | $243425 | $356170 |

---

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

***Related Party Transactions***

We receive management consulting and advisory fees for approximately $2 million per year, which includes certain reimbursable costs, payable to an affiliate of Apollo Global Management, Inc. ("Apollo") and The Vistria Group, LP ("Vistria"). Apollo and Vistria are affiliated with entities that have ownership interests in Queso. Fees associated with these services are included in restructuring charges, acquisition expense and other on our condensed consolidated statements of income.

We also have related party transactions with certain Apollo-affiliated portfolio companies, which includes payments of $3.2 million and $2.6 million in the nine months ending May 31, 2025 and 2024, respectively, to Rackspace Technology, Inc. for technology services.

***Segment Reporting***

We have one operating segment, the University, which represents all of our consolidated net revenue in fiscal years 2024 and 2023 and in the first nine months of fiscal year 2025. Our chief operating decision maker evaluates performance and manages our operations as a whole at the consolidated level, and operating results are not evaluated on any component level.

***New Accounting Standards***

<u>Segment Reporting—Reportable Segment Disclosures</u>

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,* which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This ASU is effective for our annual financial statements for fiscal year 2025 and our interim financial statements beginning in fiscal year 2026. We are currently evaluating the impact this ASU may have on our financial statement disclosures.

<u>Income Taxes—Income Tax Disclosures</u>

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740)—Improvements to Income Tax Disclosures*, which modifies and enhances certain required income tax disclosures. ASU 2023-09 will be effective for our fiscal year beginning on September 1, 2025 and we are currently evaluating the impact it may have on our financial statement disclosures.

<u>Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures</u>

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,* which requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations, as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. This ASU will be effective for our fiscal year beginning on September 1, 2027 and we are currently evaluating the impact this ASU may have on our financial statement disclosures.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

***Subsequent Events***

We have evaluated events after May 31, 2025 and through July 10, 2025, which is the date the unaudited condensed consolidated financial statements were available to be issued.

Subsequent to May 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Queso distributed approximately $80 million to its limited partners, representing $78.21 per unit, and
approximately $8 million to noncontrolling interests, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Queso paid a $12.2 million termination fee to UofI as described above.

**Note 2. Restructuring Charges, Acquisition Expense and Other** 

Restructuring charges, acquisition expense and other include the following for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  Exited leases expense, net | $3837 | $12522 |
|  Severance costs | 192 | 525 |
|  Loss on interest rate swaptions |  | 12727 |
|  Strategic alternatives expense<sup>(1)</sup> | 7401 | 6518 |
|  Other | 6456 | 6324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Restructuring charges, acquisition expense and other** | $17886 | $38616 |

---

<sup>(1)</sup> Strategic alternatives expense includes costs associated with the evaluation of strategic alternatives for the future ownership of the University (refer to Note 1, Nature of Operations and Significant Accounting Policies).

The University's restructuring activities over recent years have been completed and principally included closing ground locations, rationalizing leased administrative office facilities, and workforce reductions. Our liability associated with these activities was $16.6 million and $21.9 million as of May 31, 2025 and August 31, 2024, respectively, and principally represents the present value of future estimated non-rent, executory costs associated with an exited lease that will be paid over the respective lease term through fiscal year 2031. The decrease in the liability during the nine months ended May 31, 2025 was principally attributable to payments related to such lease and a decrease in estimated future costs. The gross, undiscounted obligation associated with this liability was approximately $20 million as of May 31, 2025.

**Note 3**. **Acquisition**

As of August 31, 2024, Talent Mobility, LLC, a wholly owned subsidiary of AEG, had a minority ownership interest in Empath, Inc. ("Empath"). Empath provides clients with a company-wide skills inventory for its employees through machine learning-based skills inference. In the first quarter of fiscal year 2025, AEG acquired a controlling interest in Empath pursuant to an Agreement and Plan of Merger, by merging Talent Mobility, LLC with Empath, with Empath surviving as a subsidiary of AEG. AEG paid approximately $2 million, net of cash acquired, to facilitate this merger and did not incur material transaction costs.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

We accounted for this merger as a business combination and allocated the purchase price to the assets acquired and liabilities assumed at fair value as summarized below:

---

| | |
|:---|:---|
| **($ in thousands)** | |
|  Cash | $2418 |
|  Definite-lived intangibles - Technology (3 year useful life) | 7254 |
|  Goodwill | 3732 |
|  Deferred income taxes | (1706) |
|  Other | (99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets acquired and liabilities assumed, net** | 11599 |
|  Less: Fair value of noncontrolling interests | (4147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total fair value of consideration transferred** | 7452 |
|  Less: Cash acquired | (2418) |
|  Less: Fair value of equity method investment | (2452) |
|  Less: Note forgiven | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Cash paid for acquisition, net of cash acquired** | $1982 |

---

We determined fair value using the following assumptions, the majority of which include significant unobservable inputs (Level 3), that we believe reasonable market participants would use while employing the concept of highest and best use of the respective items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intangibles—We valued the technology primarily using the replacement cost approach. We determined this
acquired intangible asset is finite-lived and we are amortizing the asset on a straight-line basis over three years, which we believe reflects the pattern in which the economic benefits of the asset are expected to be consumed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other—The carrying value of all other assets and liabilities approximated fair value at the time of
acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noncontrolling interests—We estimated the fair value of the noncontrolling interests principally as the
noncontrolling ownership percentage of the implied fair value of the acquired entity, and applied a discount for lack of control.

The goodwill resulting from the merger is principally attributable to the future earnings potential associated with customer enrollment growth and other intangibles that do not qualify for separate recognition such as the assembled workforce.

The operating results of Empath are included in our condensed consolidated financial statements from the date of acquisition and its results are not material to our condensed consolidated results of operations. Pro forma financial information is not presented as Empath's results were not material to our condensed consolidated statements of income.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

**Note 4. Financial Instruments** 

The following summarizes our cash and cash equivalents, restricted cash and cash equivalents and marketable securities by financial instrument category as of the respective period ends:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** |
| **($ in thousands)** | **Amortized<br>Cost** | **Unrealized<br>Gains** | **Unrealized<br>Losses** | **Fair Value** | **Cash and Cash<br>Equivalents<sup>(1)</sup>** | **Current<br>Marketable<br>Securities** | **Noncurrent<br>Marketable<br>Securities** |
|  Cash | $139708 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $139708 | $139708 | $— | $— |
|  **Level 1:** |  |  |  |  |  |  |  |
|  Money market funds | 103717 |  |  | 103717 | 103717 |  |  |
|  **Level 2:** |  |  |  |  |  |  |  |
|  Corporate bonds | 21875 | 2 | (51) | 21826 |  | 9223 | 12603 |
|  Other | 2020 |  | (3) | 2017 |  |  | 2017 |
|  **Total** | $267320 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 | $(54) | $267268 | $243425 | $9223 | $&nbsp;&nbsp;&nbsp;&nbsp;14620 |
|  | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** |
| **($ in thousands)** | **Amortized<br>Cost** | **Unrealized<br>Gains** | **Unrealized<br>Losses** | **Fair Value** | **Cash and Cash<br>Equivalents<sup>(1)</sup>** | **Current<br>Marketable<br>Securities** | **Noncurrent<br>Marketable<br>Securities** |
|  Cash | $162273 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $162273 | $162273 | $— | $— |
|  **Level 1:** |  |  |  |  |  |  |  |
|  Money market funds | 193897 |  |  | 193897 | 193897 |  |  |
|  **Level 2:** |  |  |  |  |  |  |  |
|  Corporate bonds | 26714 | 75 | (15) | 26774 |  | 16336 | 10438 |
|  **Total** | $382884 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75 | $(15) | $382944 | $356170 | $16336 | $&nbsp;&nbsp;&nbsp;&nbsp;10438 |

---

(1) Includes restricted cash and cash equivalents.

We measure our financial instruments at fair value on a recurring basis as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Money market funds—We use Level 1 inputs that primarily consist of real-time quotes for
transactions in active exchange markets involving identical assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other financial instruments—We use a market approach with Level 2 observable inputs for all other
securities. The Level 2 inputs include quoted prices for similar assets in active markets, or quoted prices for identical or similar assets in markets that are not active.

Our marketable securities have maturities that occur within three years. We may sell certain of our marketable securities prior to their stated maturities for strategic reasons including, but not limited to, investment yield and credit risk management. We have not recognized significant gains or losses related to such sales. Additionally, all of our securities are investment grade and we have no related allowance for credit losses as of May 31, 2025.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

**Note 5. Accounts Receivable, Net** 

Accounts receivable, net consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **May 31,<br>2025** | **August 31,<br>2024** |
|  Student accounts receivable | $136050 | $97388 |
|  Allowance for credit losses | (46388) | (49200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net student accounts receivable | 89662 | 48188 |
|  Related party receivable |  | 600 |
|  Other receivables | 2413 | 2457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Accounts receivable, net** | $92075 | $51245 |

---

The student receivables are not collateralized; however, credit risk is reduced as the amount owed by any individual student is insignificant relative to the total student receivables.

The following summarizes the activity in allowance for credit losses during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  **Beginning allowance for credit losses** | $49200 | $51972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses on accounts receivable | 35885 | 29930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-offs, net of recoveries | (38697) | (19402) |
|  **Ending allowance for credit losses** | $46388 | $62500 |

---

**Note 6. Leases** 

Lease expense is included in instructional and support costs, general and administrative and restructuring charges, acquisition expense and other on our condensed consolidated statements of income. The components of our operating lease costs were the following during the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  Operating lease cost | $10307 | $11668 |
|  Variable lease cost<sup>(1)</sup> | 2090 | 2962 |
|  Less: Sublease income | (4960) | (4086) |
|  Total lease cost | $7437 | $10544 |

---

(1) We did not have any material short-term lease cost in the nine months ended May 31, 2025 and 2024,
respectively.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

The maturities of our operating lease payments were as follows for periods subsequent to May 31, 2025:

---

| | |
|:---|:---|
| **($ in thousands)** | |
|  Remainder of 2025 | $2635 |
| 2026 | 15946 |
| 2027 | 16265 |
| 2028 | 16590 |
| 2029 | 16922 |
|  Thereafter | 27445 |
|  Total operating lease payments | 95803 |
|  Less: liability accretion | (20098) |
|  Present value of operating lease liabilities | 75705 |
|  Less: current operating lease liabilities | (8660) |
|  Long-term operating lease liabilities | $67045 |

---

The following provides supplemental information related to leases:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended**<br>**May 31,** | **Nine Months Ended**<br>**May 31,** | **Nine Months Ended**<br>**May 31,** | **Nine Months Ended**<br>**May 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  Cash paid for amounts included in the measurement of operating lease liabilities | $| 13.4 million | $| 17.0 million |
|  Operating lease right-of-use asset changes in exchange for new / remeasured lease liabilities |  |  |  |  |
|  | **May 31,**<br>**2025** | **May 31,**<br>**2025** | **August 31,**<br>**2024** | **August 31,**<br>**2024** |
|  Weighted-average remaining operating lease term |  | 6 years |  | 7 years |
|  Weighted-average operating lease discount rate |  | 8.6% |  | 8.6% |

---

**Note 7. Intangibles** 

Intangibles consist of the following as of the respective period ends:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **May 31, 2025** | **May 31, 2025** | **May 31, 2025** | **August 31, 2024** | **August 31, 2024** | **August 31, 2024** |
| **($ in thousands)** | **Gross**<br>**Carrying**<br>**Amount<sup>(1)</sup>** | **Accumulated**<br>**Amortization** | **Net**<br>**Carrying**<br>**Amount** | **Gross**<br>**Carrying**<br>**Amount** | **Accumulated**<br>**Amortization** | **Net**<br>**Carrying**<br>**Amount** |
|  Curriculum | $1110 | $(758) | $352 | $1154 | $(529) | $625 |
|  Technology<sup>(1)</sup> | 7254 | (1813) | 5441 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total finite-lived intangibles** | 8364 | (2571) | 5793 | 1154 | (529) | 625 |
|  Trademark | 20600 |  | 20600 | 20600 |  | 20600 |
|  Accreditation | 61500 |  | 61500 | 61500 |  | 61500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total indefinite-lived intangibles** | 82100 |  | 82100 | 82100 |  | 82100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total intangible assets, net** | $90464 | $(2571) | $87893 | $83254 | $(529) | $82725 |

---

(1) As disclosed in Note 3, Acquisition, we acquired certain intangibles in fiscal year 2025.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

The weighted average remaining useful life of our finite-lived intangibles as of May 31, 2025 was approximately 2 years and the estimated future amortization expense of our finite-lived intangibles as of May 31, 2025 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Remainder<br>of 2025** | **2026** | **2027** | **2028** | **Total** |
|  Estimated future amortization expense<sup>(1)</sup> | $682 | $2588 | $2514 | $9 | $5793 |

---

(1) Estimated future amortization expense may vary if acquisitions and dispositions occur in the future.

**Note 8. Other Liabilities** 

Other current liabilities consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **May 31,<br>2025** | **August 31,<br>2024** |
|  Contract liabilities for discount programs | $16293 | $10305 |
|  Accrued advertising | 9692 | 15378 |
|  Restructuring obligations | 2922 | 3408 |
|  Other | 15539 | 15723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other current liabilities** | $44446 | $44814 |

---

Other long-term liabilities consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **May 31,<br>2025** | **August 31,<br>2024** |
|  Uncertain tax position<sup>(1)</sup> | $14674 | $— |
|  Restructuring obligations | 13652 | 18478 |
|  Other | 2044 | 2486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other long-term liabilities** | $30370 | $20964 |

---

(1) This uncertain tax position relates to a worthless stock deduction taken in fiscal year 2019. We have
recorded an uncertain tax position liability as we use the net operating losses associated with the unrecognized tax benefits.

**Note 9. Income Taxes** 

We determine our interim income tax provision by estimating our effective income tax rate expected to be applicable for the full fiscal year. Our effective income tax rate is dependent upon several factors, such as tax rates in state jurisdictions and the relative amount of income we earn in such jurisdictions. In determining our full year estimate, we do not include the estimated impact of unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. We exercise significant judgment in determining our income tax provision due to transactions, credits and calculations where the ultimate tax determination is uncertain.

Our income tax expense for the nine months ended May 31, 2025 was $40.6 million, or 25.6% of pre-tax income, compared to $34.4 million, or 24.7% of pre-tax income, for the nine months ended May 31, 2024. The effective income tax rate for both periods differed from the federal statutory rate of 21% primarily due to state income taxes.

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##### [**Table of Contents**](#toc)
**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

Our U.S. federal income tax returns for fiscal years 2022 through 2024 are currently open for review by the Internal Revenue Service. Additionally, tax years as early as fiscal year 2019 remain subject to examination by state or local tax authorities.

**Note 10. Share-based Compensation** 

The following details share-based compensation for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **($ in thousands)** | **2025** | **2024** |
|  Instructional and support costs | $654 | $1166 |
|  General and administrative | 1254 | 2561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Share-based compensation** | 1908 | 3727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of share-based compensation | 469 | 920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Share-based compensation, net of tax** | $1439 | $2807 |

---

The University adopted the University of Phoenix, Inc. Management Equity Plan ("UOPX Plan") whereby the University may grant various share-based awards covering shares of its common stock, including nonqualified stock options, restricted stock units ("RSUs") and other equity-based awards. Approximately 7.4 million shares of the University's common stock have been reserved for issuance over the term of the UOPX Plan and 5.4 million shares are available for issuance under the UOPX Plan as of May 31, 2025.

We did not grant any equity awards during the nine months ended May 31, 2025.

As of May 31, 2025, the University had $0.3 million of unrecognized compensation expense related to unvested stock options that are expected to vest, and approximately $12 million of unrecognized compensation expense related to stock options that vest upon certain changes in control or ownership.

As of May 31, 2025, the University had $1.2 million of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of approximately one year.

**Note 11**. **Earnings Per Unit**

We calculate earnings per unit by dividing net income attributable to Queso by the weighted average units outstanding. The units are held by the limited partners and there are no potentially dilutive securities in Queso. However, all of our share-based awards cover common stock in our subsidiary, the University, and the issuance of such shares are potentially dilutive by increasing noncontrolling interests and thereby decreasing income attributable to Queso. We calculate the dilutive effect of our share-based awards by applying the treasury stock method.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

The components of basic and diluted earnings per unit consist of the following for the respective periods:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>May 31,** | **Nine Months Ended<br>May 31,** |
| **(In thousands, except per unit data)** | **2025** | **2024** |
|  **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Queso | $116382 | $103308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive effect of share-based awards in subsidiary | (8163) | (4227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to Queso after dilutive effect | $108219 | $99081 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted weighted average units outstanding | 1028 | 1028 |
|  Basic income per unit attributable to Queso | $113.21 | $100.49 |
|  Diluted income per unit attributable to Queso | $105.27 | $96.38 |
|  **Share-based awards in subsidiary:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive stock options<sup>(1)</sup> | 2224 | 1482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive restricted stock units<sup>(1)</sup> | 51 | 29 |

---

(1) Diluted income per unit attributable to Queso during the nine months ended May 31, 2025 excludes
approximately 2.1 million and 0.1 million outstanding stock options and restricted stock units, respectively, and 2.5 million and 0.1 million during the nine months ended May 31, 2024, respectively, because such awards are
contingently issuable shares. Substantially all of the contingently issuable awards vest upon certain changes in control or ownership and some are contingently issuable because they vest upon achievement of performance conditions.

**Note 12**. **Commitments and Contingencies**

***Letters of Credit***

We had a $32 million and $35 million outstanding cash collateralized letter of credit as of May 31, 2025 and August 31, 2024, respectively, which supports a sublease for a facility we have exited.

***Surety Bonds***

Our insurers issue surety bonds that are required by various states where we operate, or that are required for other purposes. We are obligated to reimburse our insurers for any surety bonds that are paid. As of both May 31, 2025 and August 31, 2024, the face amount of these surety bonds was less than $1 million.

***Litigation and Other Matters***

We are subject to various claims and contingencies that arise from time to time in the ordinary course of business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. We do not believe any of these are material for separate disclosure and we do not believe any of these, individually or in the aggregate, will have a material effect on our consolidated financial position, results of operations or cash flows.

The following is a description of pending litigation, settlements, and other proceedings that fall outside the scope of ordinary and routine litigation incidental to our business.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

***Class Action Lawsuit***

On April 1, 2025, Janielle Dawson filed a class action complaint against University of Phoenix in the United States District Court for the Northern District of Illinois. The complaint alleges that University of Phoenix violated the Video Privacy Protection Act, Electronic Communications and Privacy Act, and the Illinois Eavesdropping Act by integrating third-party tracking technology in its website and thereby disclosing to third parties its users' personally identifiable and other protected information. The complaint seeks to recover damages on behalf of plaintiff and other members of the class.

Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of loss for this action and, accordingly, we have not accrued any liability associated with this action.

**Note 13. Regulatory Matters** 

***Accreditation***

University of Phoenix has been accredited by the Higher Learning Commission ("HLC") since 1978 and holds other programmatic accreditations. In fiscal year 2023, the accreditation of the University was reaffirmed by the HLC through the 2032-2033 academic year.

***Student Financial Aid***

All U.S. federal student financial aid programs are established by Title IV of the Higher Education Act and regulations promulgated thereunder. The Higher Education Act specifies the manner in which the U.S. Department of Education reviews institutions for eligibility and certification to participate in Title IV programs and enters into a Program Participation Agreement ("PPA") with institutions. In October 2020, the University received renewal of its Title IV PPA approving the University's continued participation in Title IV programs with full certification through September 30, 2023. While the University submitted necessary documentation for re-certification in anticipation of the expiration of its certification on September 30, 2023, the Department of Education did not make a decision on our recertification application by such date. Accordingly, our participation in Title IV programs has been automatically extended on a month-to-month basis pending the Department of Education's decision on our application.

The U.S. Congress must periodically reauthorize the Higher Education Act and annually determine the funding level for each Title IV program. The most recent reauthorization of the Higher Education Act expired September 30, 2013, but Title IV student financial aid programs remain authorized and functioning. However, as part of the annual federal budget reconciliation process, on July 4, 2025, amendments to the Higher Education Act revising certain federal student aid program provisions were enacted into law. Amongst other provisions, the recent amendments create new accountability standards conditioning the eligibility of educational programs upon compliance with benchmarks that compare former students' earnings after completion to amounts earned by working adults with lesser credentials. The impact of the recent amendments to the Higher Education Act, and of future regulatory and policy changes resulting from those amendments, cannot be predicted, and could have a material adverse effect on our business, financial condition and results of operations.

***Borrower Defense to Repayment Claims and Closed School Loan Discharges***

In fiscal year 2020, the U.S. Department of Education began sending borrower defense applications to the University. As part of the fact-finding process, the Department sends individual student applications to the

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

University and allows the University the opportunity to submit responses to the borrower defense applications. The University has submitted initial substantive responses to these applications to the Department within the prescribed time period.

In August 2021, the Department announced its intention to establish a negotiated rulemaking committee to develop proposed regulations for borrower defense to repayment and other topics. This negotiated rulemaking began in October 2021 and concluded in December 2021 with the committee failing to reach consensus on borrower defense to repayment. In July 2022, the Department released proposed borrower defense regulations for public comment ("2022 Rules"). Notably, although the 2022 Rules went into effect on July 1, 2023, they were retroactively stayed a short time later in connection with a challenge in the 5th Circuit Court of Appeals. The 5<sup>th</sup> Circuit also remanded the case back to the lower court for the continuation of the litigation challenging the validity of the 2022 Rules, and the Department subsequently asked the Supreme Court to review the 5th Circuit's decision, which it agreed to do. The Department (after the January 2025 change in administration) initially asked for the appeal to be held in abeyance to allow the Department to "reassess the basis for and soundness of the Department's borrower-defense regulations," which request the Supreme Court granted. However, on May 29, 2025, the Department asked the Supreme Court to resume briefing. On June 23, 2025 the Supreme Court granted the Department of Education's request to resume briefing. The litigation remains pending, and the Department of Education's complete position on those legal issues is unknown at present. The 5th Circuit's stay of the 2022 Rules will remain in place while the litigation moves forward. The recent amendments to the Higher Education Act, enacted on July 4, 2025, described above delay the implementation of the 2022 Rules until June 30, 2035. It is unclear what effect this will have on the above litigation proceedings.

If the 2022 Rules are ultimately allowed to move forward, they would, among other things, set a single standard and streamlined process for loan discharge that would apply to all future and pending borrower defense claims as of July 1, 2023, instead of various standards based on the date of the borrower's first loan disbursement; define what kinds of misconduct could lead to borrower defense discharges; establish a presumption that borrowers reasonably relied upon misrepresentations or omissions; establish a reconsideration process for borrowers whose claims are not approved for a full discharge, and create a process for forming groups of borrowers and adjudicating claims based on the common facts of those group claims. The 2022 Rules maintained the Department's ability to seek recoupment of funds from institutions for discharged loans, and the recoupment process remains separate from the loan discharge process. In addition, the 2022 Rules prohibit institutions from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class action waivers for claims related to the making of a Federal Direct Loan or the provision of educational services for which the loan was obtained.

On October 31, 2022, the Department published final rules updating the eligibility criteria for and the process by which borrowers can be eligible to receive a closed school loan discharge. The updated rules allow the Department to process automatic closed school discharges and establishes a discharge window of 180 days prior to the school's closure. The regulation also states that eligible borrowers may receive a discharge if the borrower does not complete either a teach-out or the continuation of their program at a particular location of the school, and gives the Department the authority to adjust the closure date in cases where the institution discontinues the programs in which most borrowers were enrolled. The new regulations were effective July 1, 2023, and have been stayed pursuant to the same litigation impacting the borrower defense rules. Pending the resolution of the litigation, the Department will process closed school loan discharge applications using earlier rules. The recent amendments to the Higher Education Act also delayed the implementation of the updated 2022 closed school loan discharges rules until June 30, 2035.

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**AP VIII QUESO HOLDINGS, L.P. AND SUBSIDIARIES** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)** 

On September 20, 2023, the Department announced its approval to discharge nearly $37 million in borrower defense claims for more than 1,200 students who enrolled at University of Phoenix between September 21, 2012 and December 31, 2014. The Department's announcement noted it reviewed evidence obtained from the FTC related to its December 2019 Complaint and Settlement with the University, as well as information the Department obtained from the University's responses to borrower defense claims in connection with its fact-finding process. Although the Department announced that it intends to initiate a recoupment proceeding against the University to seek repayment of the liabilities associated with these approved claims, we have not received any associated communication from the Department. In addition, a recent ruling from the 9th Circuit Court of Appeals in a borrower defense-related case to which the University is not a party appears to signal that the Department cannot pursue recoupment of the 1,200 claims mentioned above.

Because of the many questions of fact and law that may arise, the outcome of borrower defense claims is uncertain at this point. Based on the information available to us at present, we cannot estimate a reasonably possible range of loss for borrower defense claims and, accordingly, we have not accrued any liability associated with such claims.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Shares*![LOGO](g876348g00a02.jpg)

## Phoenix Education Partners, Inc.
*Common Stock* 

**PROSPECTUS** 

*Morgan Stanley* *Goldman Sachs & Co. LLC* *BMO Capital Markets* *Jefferies* <br> *Apollo Global Securities*

**Through and including , 2025 (the 25th day after the date of this prospectus), all dealers effecting transactions in the common stock, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

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##### [**Table of Contents**](#toc)
**PART II** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution** 

Set forth below is a table of the registration fee for the SEC and all other expenses to be paid by the registrant in connection with the issuance and distribution of the securities described in the registration statement. All of such expenses are estimates, except for the SEC registration fee, the Financial Industry Regulatory Authority Inc. filing fee, and the stock exchange listing fee.

---

| | |
|:---|:---|
|  SEC registration fee | $15310 |
|  Stock exchange listing fee | \* |
|  Financial Industry Regulatory Authority filing fee | 15500 |
|  Printing expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Blue Sky fees and expenses | \* |
|  Transfer agent and registrar fees | \* |
|  Miscellaneous | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $\* |

---

\* To be completed by amendment.

**Item 14. Indemnification of Directors and Officers** 

Section 145 of the Delaware General Corporation Law (the "DGCL") provides that a corporation may indemnify directors and officers as well as other employees and individuals against expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened, pending, or completed actions, suits, or proceedings in which such person is made a party by reason of such person being or having been a director, officer, employee or agent to the registrant. The DGCL provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders, or disinterested directors or otherwise. The registrant's bylaws provide for indemnification by the registrant of its directors, officers, and employees to the fullest extent permitted by the DGCL.

Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director or officer of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, except for liability (i) for any breach of the director's or officer's duty of loyalty to the corporation or its stockholders; (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii) a director for unlawful payments of dividends or unlawful stock repurchases, redemptions, or other distributions; (iv) for any transaction from which the director or officer derived an improper personal benefit; or (v) an officer in any action by or in the right of the corporation. The registrant's certificate of incorporation provides for such limitation of liability.

The registrant maintains standard policies of insurance under which coverage is provided (a) to its directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (b) to the registrant with respect to payments which may be made by the registrant to such officers and directors pursuant to the above indemnification provision or otherwise as a matter of law.

The proposed form of underwriting agreement we enter into in connection with the sale of common stock being registered will provide for indemnification of directors and officers of the registrant by the underwriters against certain liabilities.

We expect to enter into customary indemnification agreements with our executive officers and directors that provide them, in general, with customary indemnification in connection with their service to us or on our behalf.

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**Item 15. Recent Sales of Unregistered Securities** 

Set forth below is information regarding securities sold or granted by us within the past three years that were not registered under the Securities Act. Also included is the consideration, if any, received by us for such securities and information relating to the section of the Securities Act, or rule of the SEC, under which exemption from registration was claimed for such sales and grants. Such information is rounded to the nearest whole number.

In connection with the Reorganization Transactions described in "*Prospectus Summary—The Reorganization Transactions*," Phoenix Education Partners, Inc. will issue shares of common stock and may also be required to issue shares of common stock upon the vesting of the University's outstanding RSUs or in exchange for the University's common stock upon the exercise of the University's outstanding stock options. The shares of common stock described above will be issued in reliance on the exemption provided by Section 4(a)(2) of the Securities Act on the basis that it will not involve a public offering.

**Item 16. Exhibits and Financial Statement Schedules** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Exhibits***

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1 | [Form of Certificate of Incorporation of Phoenix Education Partners, Inc., to become effective immediately prior to the completion of this offering](d876348dex31.htm) |
| 3.2 | [Form of Bylaws of Phoenix Education Partners, Inc., to become effective immediately prior to the completion of this offering](d876348dex32.htm) |
| 5.1\* | Opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP as to the validity of the securities being offered |
| 10.1 | [Form of Stockholders Agreement by and among Phoenix Education Partners, Inc., TVG-I-E-AEG Holdings, LP and AP VIII Socrates Holdings, L.P.](d876348dex101.htm) |
| 10.2 | [Form of Registration Rights Agreement by and among Phoenix Education Partners, Inc. and the Holders party thereto](d876348dex102.htm) |
| 10.3 | [Form of Amended and Restated Stockholders Agreement by and among the University of Phoenix, Inc., Phoenix Operating Corp. and Phoenix Education Partners, Inc.](d876348dex103.htm) |
| 10.4† | [Offer Letter, between The University of Phoenix, Inc. and Christopher Lynne, dated as of December 15, 2022](d876348dex104.htm) |
| 10.5† | [Offer Letter, between The University of Phoenix, Inc. and Raghu Krishnaiah, dated as of August 28, 2015](d876348dex105.htm) |
| 10.6† | [Form of The University of Phoenix, Inc. Nonqualified Stock Option Grant Certificate for Fiscal Year 2022 (Executives – Change in Control Standard)](d876348dex106.htm) |
| 10.7† | [Form of The University of Phoenix, Inc. Nonqualified Stock Option Grant Certificate for Fiscal Year 2023 (Change in Control Standard)](d876348dex107.htm) |
| 10.8† | [Form of The University of Phoenix, Inc. Nonqualified Stock Option Grant Certificate for Fiscal Year 2023 (Performance Standard)](d876348dex108.htm) |
| 10.9† | [Form of The University of Phoenix, Inc. RSU Grant Certificate for Fiscal Year 2023 (Performance Standard)](d876348dex109.htm) |

---

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 10.10† | [Form of The University of Phoenix, Inc. RSU Grant Certificate for Fiscal Year 2023 (Time Standard)](d876348dex1010.htm) |
| 10.11† | [Form of The University of Phoenix, Inc. RSU Grant Certificate for Fiscal Year 2024 (Performance Standard)](d876348dex1011.htm) |
| 10.12† | [Form of The University of Phoenix, Inc. RSU Grant Certificate for Fiscal Year 2024 (Time Standard)](d876348dex1012.htm) |
| 10.13† | [The University of Phoenix, Inc. Management Equity Plan](d876348dex1013.htm) |
| 10.14† | [Phoenix Education Partners, Inc. 2025 Omnibus Incentive Plan](d876348dex1014.htm) |
| 10.15† | [Form of Phoenix Education Partners, Inc. RSU Grant Certificate](d876348dex1015.htm) |
| 10.16† | [Form of Phoenix Education Partners, Inc. PSU Grant Certificate](d876348dex1016.htm) |
| 10.17† | [The University of Phoenix, Inc. Bonus Plan – Executive Team](d876348dex1017.htm) |
| 10.18† | [The University of Phoenix, Inc. Bonus Plan – Leadership Team](d876348dex1018.htm) |
| 10.19† | [The University of Phoenix, Inc. Deferred Compensation Plan](d876348dex1019.htm) |
| 10.20† | [Amended and Restated The University of Phoenix, Inc. Senior Executive Severance Pay Plan](d876348dex1020.htm) |
| 10.21† | [Phoenix Education Partners, Inc. Employee Stock Purchase Plan](d876348dex1021.htm) |
| 10.22† | [Form of Indemnification Agreement](d876348dex1022.htm) |
| 21.1 | [Subsidiaries of the registrant](d876348dex211.htm) |
| 23.1 | [Consent of Deloitte & Touche LLP, independent registered public accounting firm](d876348dex231.htm) |
| 23.2\* | Consent of Paul, Weiss, Rifkind, Wharton & Garrison LLP (included in Exhibit 5.1) |
| 24.1 | [Powers of Attorney (included in signature page)](#ii876348_sig) |
| 99.1 | [Consent of Christopher Lynne to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex991.htm) |
| 99.2 | [Consent of Andrew Bird to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex992.htm) |
| 99.3 | [Consent of Peter Cohen to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex993.htm) |
| 99.4 | [Consent of Jeffrey Denham to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex994.htm) |
| 99.5 | [Consent of Theodore Kwon to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex995.htm) |
| 99.6 | [Consent of Martin H. Nesbitt to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex996.htm) |
| 99.7 | [Consent of Adnan A. Nisar to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex997.htm) |
| 99.8 | [Consent of John Sizer to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex998.htm) |
| 99.9 | [Consent of Itai Wallach to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex999.htm) |
| 99.10 | [Consent of Johannes Worsoe to be named as director nominee of Phoenix Education Partners, Inc.](d876348dex9910.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;107 | [Filing Fee Table](d876348dexfilingfees.htm) |

---

\* To be filed by amendment.

† Indicates management contract or compensatory plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Financial Statement Schedules***

See the Index to the consolidated financial statements included on page F-1 for a list of the financial statements included in this registration statement. All schedules have been omitted because they are not required,

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##### [**Table of Contents**](#toc)
are inapplicable, or the information is included in the consolidated financial statements or notes contained in this registration statement.

**Item 17. Undertakings** 

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable*.* In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of
prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of
this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For purposes of determining any liability under the Securities Act, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Phoenix, Arizona, on the 29<sup>th</sup> day of August, 2025.

---

| | |
|:---|:---|
| **AP VIII QUESO HOLDINGS, L.P.** | **AP VIII QUESO HOLDINGS, L.P.** |
| By: | /s/ Christopher Lynne |
|  | Name: Christopher Lynne |
|  | Title: President |

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##### [**Table of Contents**](#toc)
**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Christopher Lynne, Blair Westblom and Srini Medi, his or her true and lawful agent, proxy and attorney-in-fact, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to (i) act on, sign and file with the Securities and Exchange Commission any and all amendments (including post-effective amendments) to this registration statement together with all schedules and exhibits thereto and any subsequent registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, together with all schedules and exhibits thereto, (ii) act on, sign and file such certificates, instruments, agreements and other documents as may be necessary or appropriate in connection therewith, (iii) act on and file any supplement to any prospectus included in this registration statement or any such amendment or any subsequent registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and (iv) take any and all actions which may be necessary or appropriate in connection therewith, granting unto such agents, proxies and attorneys-in-fact, and each of them, full power and authority to do and perform each and every act and thing necessary or appropriate to be done, as fully for all intents and purposes as he or she might or could do in person, hereby approving, ratifying and confirming all that such agents, proxies and attorneys-in-fact or any of their substitutes may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following officers in their capacities at AP VIII Queso Holdings, L.P., and by the following directors in their capacities at Queso GP, LLC, the general partner of AP VIII Queso Holdings, L.P., and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Christopher Lynne<br> Christopher Lynne | President and Director<br> (Principal Executive Officer) | August 29, 2025 |
| /s/ Blair Westblom<br> Blair Westblom | Chief Financial Officer and Treasurer<br> (Principal Financial Officer) | August 29, 2025 |
| /s/ Jeff Honaker<br> Jeff Honaker | Vice President and Corporate Controller<br> (Principal Accounting Officer) | August 29, 2025 |
| /s/ Theodore Kwon<br> Theodore Kwon | Director | August 29, 2025 |
| /s/ Martin H. Nesbitt<br> Martin H. Nesbitt | Director | August 29, 2025 |
| /s/ Adnan A. Nisar<br> Adnan A. Nisar | Director | August 29, 2025 |
| /s/ John Sizer<br> John Sizer | Director | August 29, 2025 |
| /s/ Johannes Worsoe<br> Johannes Worsoe | Director | August 29, 2025 |

---

## Exhibit 3.1

**Exhibit 3.1** 

**CERTIFICATE OF INCORPORATION OF** 

**PHOENIX EDUCATION PARTNERS, INC.** 

Phoenix Education Partners, Inc. (the "<u>Corporation</u>"), a corporation organized and existing under the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), does hereby certify as follows:

**ARTICLE I** 

The name of the corporation (hereinafter the "<u>Corporation</u>") is Phoenix Education Partners, Inc.

**ARTICLE II** 

The address of the Corporation's registered office in the State of Delaware is Corporation Service Company, 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808. The name of the Corporation's registered agent at such address is the Corporation Service Company.

**ARTICLE III** 

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

**ARTICLE IV** 

Section 4.01 <u>Authorized Capital Stock</u>. The total number of shares of all classes of capital stock that the Corporation is authorized to issue is [•] shares of capital stock, of which [•] shares shall be common stock, par value $0.01 per share (the "<u>Common Stock</u>"), and [•] shares shall be preferred stock, par value $0.01 per share (the "<u>Preferred Stock</u>"). Subject to the rights of the holders of any series of Preferred Stock then outstanding, the number of authorized shares of any of the Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority in voting power of the stock of the Corporation entitled to vote thereon irrespective of the provisions of Section 242(b)(2) of the DGCL or any successor provision thereof, and no vote of the holders of any of the Common Stock or Preferred Stock voting separately as a class shall be required therefor.

Section 4.02 <u>Common Stock</u>. The terms of the Common Stock set forth below shall be subject to the express terms of any series of Preferred Stock then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voting Ri</u>g<u>hts</u>. Except as otherwise required by applicable law or this Certificate of Incorporation of the Corporation (as the same may be amended and/or restated, this "<u>Certificate of Incorporation</u>"), the holders of Common Stock, as such, shall be entitled to one vote per share on all matters submitted to a vote of the Corporation's stockholders generally.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends</u>. Subject to applicable law and the rights, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Common Stock with respect to the payment of dividends or distributions, the holders of Common Stock shall be entitled to receive, as, if and when declared by the board of directors of the Corporation (the "<u>Board</u>") out of the funds of the Corporation legally available therefor, such dividends (payable in cash, shares of stock of the Corporation, property or assets of the Corporation or otherwise) as the Board may from time to time in its sole discretion determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Liquidation</u>. In the event of any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, after the payment or provision for the payment of any debts and other liabilities of the Corporation, and subject to the rights, if any, of the holders of any outstanding series of Preferred Stock or other class or series of stock having a preference over or the right to participate with the Common Stock with respect to the distribution of assets upon any such liquidation, dissolution or winding up, the remaining assets of the Corporation available for distribution to stockholders shall be distributed among and paid to the holders of Common Stock ratably in proportion to the number of shares of Common Stock held by them respectively.

Section 4.03 <u>Preferred Stock</u>. The Board is authorized, by resolution or resolutions, to provide, out of the authorized but unissued shares of Preferred Stock, for the issuance from time to time of shares of Preferred Stock in one or more series and, by filing a certificate of designation (a "<u>Preferred Stock Certificate of Desi</u>g<u>nation</u>") pursuant to the applicable provisions of the DGCL, to establish from time to time the number of shares to be included in each such series, with such powers (including voting powers, if any), designations, preferences, participating, optional or other rights, if any, and qualifications, limitations or restrictions thereof, if any, as are stated and expressed in the resolution or resolutions providing for the issuance thereof adopted by the Board, including, but not limited to, determination of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the distinctive designation of the series, whether by number, letter or title, and the number of shares which will constitute the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the dividend rate, if any, and the times of payment of dividends, if any, on the shares of the series, whether such dividends will be cumulative and, if so, from what date or dates, and the relation which such dividends, if any, shall bear to the dividends payable on any other class or classes or series of stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the price or prices at which, and the terms and conditions on which, the shares of the series may be redeemed at the option of the Corporation or the holder thereof or upon the happening of a specified event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether or not the shares of the series will be entitled to the benefit of a retirement or sinking fund to be applied to the purchase or redemption of such shares and, if so entitled, the amount of such fund and the terms and provisions relative to the operation thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amounts payable on, and the preferences, if any, of the shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation or upon the happening of any other specified event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether or not the shares of the series will be convertible into, or exchangeable for, at the option of either the holder or the Corporation or upon the happening of a specified event, shares of any other class or classes or series of stock of the Corporation and, if so convertible or exchangeable, the conversion price or prices, or the rates of exchange, and any adjustments thereof, at which such conversion or exchange may be made, and any other terms and conditions of such conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether or not the shares of the series will have priority over or be on a parity with or be junior to the shares of any other class or classes or series of stock of the Corporation in any respect, or will be entitled to the benefit of limitations restricting the issuance of shares of any other class or classes or series of stock of the Corporation, restricting the payment of dividends on or the making of other distributions in respect of shares of any other class or classes or series of stock of the Corporation ranking junior to the shares of the series as to dividends or distributions, or restricting the purchase or redemption of the shares of any such junior class or classes or series of stock of the Corporation, and the terms of any such restriction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) whether or not the shares of the series will have voting rights or powers and, if so, the terms of such voting rights and powers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any other powers, preferences and rights, and qualifications, limitations and restrictions thereof, of the series.

Except as otherwise required by law, holders of any series of Preferred Stock shall be entitled to only such voting rights and powers, if any, as shall expressly be granted thereto by this Certificate of Incorporation. Except as otherwise expressly provided in this Certificate of Incorporation, no vote of the holders of shares of Preferred Stock or Common Stock shall be a prerequisite to the issuance of any shares of any series of the Preferred Stock so authorized in accordance with this Certificate of Incorporation. Except as otherwise required by law, holders of Common Stock shall not be entitled to vote on any amendment to this Certificate of Incorporation that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately as a class or together with the holders of one or more other such series as a separate class, to vote thereon pursuant to this Certificate of Incorporation or pursuant to the DGCL. Unless otherwise provided by this Certificate of Incorporation, the Board may, by resolution or resolutions, increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series of Preferred Stock established by a Preferred Stock Certificate of Designation pursuant to this <u>Article IV</u> and the DGCL and, if the number of shares of such series shall be so decreased, the shares constituting such decrease shall resume the status that they had prior to the adoption of the resolution originally fixing the number of shares of such series.

------

**ARTICLE V** 

Section 5.01 <u>General Powers</u>. Except as otherwise provided by applicable law or this Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board.

Section 5.02 <u>Number of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided for or fixed pursuant to <u>Article IV</u> and this <u>Article V</u> (relating to the rights of any series of Preferred Stock to elect additional directors), the total number of directors shall be as determined from time to time exclusively by the Board; provided, that in no event shall the total number of directors be less than three (3) nor more than fifteen (15); provided, further, that, for so long as the Apollo Percentage Interest (as defined in the Stockholders Agreement, dated on or about the date of the effectiveness of the filing of this Certificate of Incorporation, by and among the Corporation, TVG-I-E-AEG Holdings, LP (the "<u>Vistria Stockholder</u>") and AP VIII Socrates Holdings, L.P. (the "<u>Apollo Stockholder</u>") (as the same may be amended, supplemented, restated or otherwise modified from time to time, the "<u>Stockholders A</u>g<u>reement</u>")) is at least 33%, without the prior written approval of the Apollo Stockholder, the Board shall not increase or decrease the total number of directors. Election of directors need not be by written ballot unless the Bylaws (as defined below) shall so require.

Section 5.03 <u>Classified Board; Term of Office</u>. The directors (other than those directors elected by the holders of any series of Preferred Stock, voting separately as a series or together with one or more other such series, as the case may be) shall be divided into three classes designated Class I, Class II and Class III. Each class shall consist, as nearly as possible, of one-third of the total number of such directors. Class I directors shall initially serve for a term expiring at the first annual meeting of stockholders following the date the Common Stock is first publicly traded (the "<u>IPO Date</u>"), Class II directors shall initially serve for a term expiring at the second annual meeting of stockholders following the IPO Date and Class III directors shall initially serve for a term expiring at the third annual meeting of stockholders following the IPO Date. At each succeeding annual meeting, successors to the class of directors whose term expires at that annual meeting shall be elected for a term expiring at the third succeeding annual meeting of stockholders. If the number of such directors is changed, any increase or decrease shall be apportioned among the classes so as to maintain the number of directors in each class as nearly equal as possible, and any such additional director of any class elected to fill a newly created directorship resulting from an increase in such class shall hold office for a term that shall coincide with the remaining term of that class, but in no case shall a decrease in the number of directors remove or shorten the term of any incumbent director. Each director shall hold office until the annual meeting at which his or her term expires and until his or her successor shall be elected and qualified, subject, however, to such director's earlier death, resignation, retirement, removal or disqualification. The Board is authorized to assign the initial members of the Board to their respective classes.

------

Section 5.04 <u>Quorum</u>. Notwithstanding anything to the contrary set forth in this Certificate of Incorporation, the Bylaws or applicable law, but in addition to any requirements set forth in this Certificate of Incorporation, the Bylaws and applicable law, if Apollo Global Management, Inc. (together with its subsidiaries, "<u>Apollo</u>"), investment funds managed by affiliates of Apollo, including Apollo Management VIII, L.P., and their respective affiliates, including the Apollo Stockholder (collectively, the "<u>Apollo Entities</u>" and, each, an "<u>Apollo Entity</u>"), own, beneficially or of record, at least 5% of the outstanding Common Stock of the Corporation and there is at least one member of the Board who is an Apollo Board Nominee (as defined in the Stockholders Agreement), a quorum for the transaction of business at any meeting of the Board shall include at least one Apollo Board Nominee unless each Apollo Board Nominee provides notice in writing or by electronic transmission to the remaining members of the Board waiving his or her right to be included in the quorum at such meeting. Notwithstanding anything to the contrary set forth herein, but in addition to any other vote required by this Certificate of Incorporation, the Bylaws or applicable law, at any time that the Apollo Entities own, beneficially or of record, at least 5% of the outstanding Common Stock of the Corporation, the Corporation shall not (directly or indirectly, by merger, consolidation or otherwise) amend, alter or repeal this <u>Section</u> <u>5.04</u>, or adopt any provision inconsistent herewith, without the prior written consent of the Apollo Stockholder.

Section 5.05 <u>Vacancies; Newly Created Directorships</u>. Except as otherwise provided by this Certificate of Incorporation, any vacancy resulting from the death, resignation, removal or disqualification of a director or other cause, or any newly created directorship in the Board, shall be filled only by an affirmative vote of a majority of the directors then in office, although less than a quorum, or by the sole remaining director, and shall not be filled by the stockholders of the Corporation; <u>provided</u>, that, (i) for so long as the Apollo Nomination Condition (as defined in the Stockholders Agreement) is satisfied, any vacancy resulting from the death, resignation, removal, disqualification or other cause in respect of any Apollo Board Nominee, including the failure of any Apollo Board Nominee to be elected, shall be filled only by the Apollo Stockholder and (ii) for so long as the Vistria Nomination Condition (as defined in the Stockholders Agreement) is satisfied, any vacancy resulting from the death, resignation, removal, disqualification or other cause in respect of such Vistria Board Nominee (as defined in the Stockholders Agreement), including the failure of the Vistria Board Nominee to be elected, shall be filled only by the Vistria Stockholder. Except as otherwise provided by this Certificate of Incorporation, a director elected to fill a vacancy or newly created directorship shall hold office until the annual meeting of stockholders for the election of directors of the class to which he or she has been appointed and until his or her successor has been duly elected and qualified, subject, however, to such director's earlier death, resignation, retirement, removal or disqualification.

Section 5.06 <u>Removal of Directors</u>. Except as otherwise provided by law or this Certificate of Incorporation, directors may be removed with or without cause by the affirmative vote of the holders of a majority of the voting power of the outstanding shares of the stock of the Corporation entitled to vote generally in the election of directors; provided, however, that, from and after the Trigger Event (as defined in <u>Article VII</u> hereof) any such director or all such directors may be removed only for cause and only by the affirmative vote of the holders of at least two-thirds (2/3rds or 66 2/3%) of the voting power of the then-outstanding shares of stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class. Notwithstanding anything to the contrary in this Certificate of Incorporation, the Company and the Directors shall, to the fullest extent permitted by applicable law, take all actions necessary at any time and from time to time so that (i) an Apollo Board Nominee will not be removed from the Board without the approval of the Apollo Stockholder, so long as the Apollo Nomination Condition is satisfied and (ii) a Vistria Board Nominee will not be removed from the Board without the approval of the Vistria Stockholder, so long as the Vistria Nomination Condition is satisfied.

------

Section 5.07 <u>Voting Rights of Preferred Stock</u>. Notwithstanding the foregoing, whenever the holders of any one or more series of Preferred Stock shall have the right, voting separately as a series or separately as a class with one or more such other series of Preferred Stock, to elect directors, the election, term of office, removal, filling of vacancies (including filling any newly created directorships) any and other features of such directorships shall be governed by the terms of the other provisions of this Certificate of Incorporation (including any Preferred Stock Certificate of Designation). Notwithstanding anything herein to the contrary, during any period when the holders of any series of Preferred Stock have the right to elect additional directors, then upon commencement and for the duration of the period during which such right continues: (i) the then otherwise total number of directors of the Corporation shall automatically be increased by such specified number of directors, and the holders of such Preferred Stock shall be entitled to elect the additional directors so provided for or fixed pursuant to such provisions, and (ii) each such additional director shall serve until such director's successor shall have been duly elected and qualified, or until such director's right to hold such office terminates pursuant to such provisions, whichever occurs earlier, subject to his or her earlier death, resignation, retirement, removal or disqualification. Except as otherwise provided by the Board in the resolution or resolutions establishing such series, whenever the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the provisions of such stock, the terms of office of all such additional directors elected by the holders of such stock, or elected to fill any vacancies resulting from the death, resignation, retirement, removal or disqualification of such additional directors, shall forthwith terminate, and the total authorized number of directors of the Corporation shall be reduced accordingly.

**ARTICLE VI** 

In furtherance and not in limitation of the rights, powers, privileges and discretionary authority granted or conferred by the DGCL or other statutes or laws of the State of Delaware, the Board is expressly authorized to make, alter, amend or repeal the bylaws of the Corporation (as the same may be amended and/or restated from time to time, the "<u>Bylaws</u>"), without any action on the part of the stockholders.

**ARTICLE VII** 

Except as otherwise required by law, and subject to the rights of the holders of any series of Preferred Stock, special meetings of the stockholders of the Corporation may be called only by (i) the Chairman of the Board, at any time, (ii) the Secretary of the Corporation at the direction of a majority of the directors then in office, at any time, or (iii) until such time as the Apollo Entities cease to beneficially own at least 50.1% of the outstanding shares of Common Stock (the "<u>Trigger Event</u>"), the Secretary of the Corporation at the written request of the holders of a majority of the voting power of the then outstanding Common Stock, and special meetings may not be called by any other person or persons. Business transacted at any special meeting of stockholders shall be limited to the purpose or purposes stated in the notice.

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**ARTICLE VIII** 

To the fullest extent permitted by the DGCL, as it now exists or may hereafter be amended, a director or officer of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty owed to the Corporation or its stockholders. Any repeal or amendment or modification of this <u>Article VIII</u> (including by changes in applicable law), or the adoption of any provision of this Certificate of Incorporation inconsistent with this <u>Article VIII</u>, shall, to the extent permitted by applicable law, be prospective only (except to the extent such amendment or change in applicable law permits the Corporation to provide a broader limitation on a retroactive basis than permitted prior thereto), and shall not adversely affect any limitation on the personal liability of any director or officer of the Corporation with respect to acts or omissions occurring prior to the time of such repeal or amendment or modification or adoption of such inconsistent provision. If any provision of the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of directors or officers, as applicable, shall be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. References in this Article VIII to an "officer" shall mean a person who, at the time of an act or omission as to which liability is asserted, falls within the meaning of the term "officer" as defined in Section 102(b)(7) of the DGCL.

**ARTICLE IX** 

Subject to the rights of the holders of one or more series of Preferred Stock then outstanding to act by written consent as provided in any Preferred Stock Certificate of Designation, any action required or permitted to be taken by stockholders must be effected at a duly called annual or special meeting of stockholders; provided, that prior to the Trigger Event, any action required or permitted to be taken at any annual or special meeting of stockholders of the Corporation may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, is signed by or on behalf of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation in accordance with the DGCL.

**ARTICLE X** 

Section 10.01 <u>Indemnification</u>. Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "<u>Proceedin</u>g"), by reason of the fact that he or she or a person of whom he or she is the legal representative is or was, at any time during which this Certificate of Incorporation is in effect (whether or not such person continues to serve in such capacity at the time any indemnification or payment of expenses pursuant hereto is sought or at the time any proceeding relating thereto exists or is brought), a director or officer of the Corporation or, while a director or officer of the Corporation, is or was at any such time serving at the request of the Corporation as a director, officer, trustee, employee or agent of

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another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans maintained or sponsored by the Corporation (hereinafter, an "<u>Indemnitee</u>"), whether the basis of such Proceeding is alleged action in an official capacity as a director, officer, trustee, employee or agent or in any other capacity while serving as a director, officer, trustee, employee or agent, shall be (and shall be deemed to have a contractual right to be) indemnified and held harmless by the Corporation (and any successor of the Corporation by merger or otherwise) to the fullest extent permitted by the DGCL as the same exists or may hereafter be amended or modified from time to time (but, in the case of any such amendment or modification, only to the extent that such amendment or modification permits the Corporation to provide greater indemnification rights than said law permitted the Corporation to provide prior to such amendment or modification), against all expense, liability and loss (including attorneys' fees, judgments, fines, excise taxes or penalties arising under the Employee Retirement Income Security Act of 1974 and amounts paid or to be paid in settlement) incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director, officer, trustee, employee or agent and shall inure to the benefit of his or her heirs, executors and administrators; provided, however, that except as provided in <u>Section</u> <u>10.04</u> of this <u>Article X</u>, the Corporation shall indemnify any such person seeking indemnification in connection with a Proceeding (or part thereof) initiated by such person only if such Proceeding (or part thereof) was authorized in the first instance by the Board.

Section 10.02 <u>Advancement of Expenses</u>. The right to indemnification conferred upon Indemnitees in this <u>Article X</u> shall include the right, without the need for any action by the Board, to be paid by the Corporation (and any successor of the Corporation by merger or otherwise) the expenses incurred in defending any such Proceeding in advance of its final disposition, such advances to be paid by the Corporation within twenty (20) days after the receipt by the Corporation of a statement or statements from the claimant requesting such advance or advances from time to time; provided, however, to the extent required by the DGCL, the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such person while a director or officer, including, without limitation, service to an employee benefit plan) shall be made only upon delivery to the Corporation of an undertaking by or on behalf of such director or officer to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right of appeal that such director or officer is not entitled to be indemnified for such expenses under this <u>Article X</u> or otherwise.

Section 10.03 <u>Nature of Rights; Other Sources</u>. The rights conferred upon Indemnitees in this <u>Article X</u> shall be contract rights between the Corporation and each Indemnitee to whom such rights are extended that vest at the commencement of such person's service to or at the request of the Corporation and all such rights shall continue as to an Indemnitee who has ceased to be a director or officer of the Corporation or ceased to serve at the Corporation's request as a director, officer, trustee, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, as described herein, and shall inure to the benefit of the Indemnitee's heirs, executors and administrators. The Corporation hereby acknowledges that certain Indemnitees may have certain rights to indemnification, advancement of expenses and/or insurance (other than directors' and officers' liability insurance or similar insurance obtained or maintained by or on behalf of the Corporation, its controlled affiliates or any of the foregoing's respective subsidiaries) from persons or entities other than the Corporation (collectively, the

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"<u>Other Indemnitors</u>"). The Corporation hereby agrees (i) that it is the indemnitor of first resort of the Indemnitees (i.e., its obligations to an Indemnitee hereunder are primary and any obligation of the Other Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Indemnitee are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by an Indemnitee and shall be liable for the full amount of all losses, claims, damages, liabilities and expenses (including attorneys' fees, judgments, fines, penalties and amounts paid in settlement) to the extent legally permitted and as required by the terms hereof, without regard to any rights an Indemnitee may have against the Other Indemnitors, and (iii) that it irrevocably waives, relinquishes and releases the Other Indemnitors from any and all claims against the Other Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Corporation further agrees that no advancement or payment by the Other Indemnitors on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from the Corporation hereunder shall affect the foregoing and the Other Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Indemnitee against the Corporation. For the avoidance of doubt, no person or entity providing directors' or officers' liability insurance or similar insurance obtained or maintained by or on behalf of the Corporation, any of its controlled affiliates or any of the foregoing's respective subsidiaries, including any person or entity providing such insurance obtained or maintained as contemplated by <u>Section</u> <u>10.08</u>, shall be an Other Indemnitor.

Section 10.04 <u>Claims</u>. To obtain indemnification under this <u>Article X</u>, a claimant shall submit to the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to the claimant and is reasonably necessary to determine whether and to what extent the claimant is entitled to indemnification. Upon written request by a claimant for indemnification pursuant to the first sentence of this <u>Section</u> <u>10.04</u>, a determination, if required by applicable law, with respect to the claimant's entitlement thereto shall be made as follows: (i) if requested by the claimant, by Independent Counsel (as hereinafter defined), or (ii) if no request is made by the claimant for a determination by Independent Counsel, (a) by a majority vote of Disinterested Directors (as hereinafter defined), even though less than a quorum, (b) if there are no such Disinterested Directors, or if a majority of the Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to the claimant, or (c) if a majority of Disinterested Directors so directs, by a majority of the stockholders of the Corporation. In the event the determination of entitlement to indemnification is to be made by Independent Counsel, the Independent Counsel shall be selected by the Board. If it is so determined that the claimant is entitled to indemnification, payment to the claimant shall be made within ten (10) days after such determination.

Section 10.05 <u>Enforcement</u>. If a claim under <u>Section</u> <u>10.01</u> of this <u>Article X</u> is not paid in full by the Corporation within sixty (60) days after a written claim pursuant to <u>Section</u> <u>10.04</u> of this <u>Article X</u> has been received by the Corporation, or if a claim under <u>Section</u> <u>10.02</u> of this <u>Article</u> <u>X</u> is not paid in full by the Corporation within twenty (20) days after a written claim therefor has been made, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim to the fullest extent permitted by law. It shall be a defense to any such action that in the case of a claim for

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indemnification, the claimant has not met the standard of conduct which makes it permissible under the DGCL for the Corporation to indemnify the claimant for the amount claimed. Neither the failure of the Corporation (including its Board, Disinterested Directors, Independent Counsel or stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by the Corporation (including its Board, Disinterested Directors, Independent Counsel or stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.

Section 10.06 <u>Procedures</u>. If a determination shall have been made pursuant to <u>Section</u> <u>10.04</u> of this <u>Article X</u> that the claimant is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding commenced pursuant to <u>Section</u> <u>10.05</u> of this <u>Article X</u>. The Corporation shall be precluded from asserting in any judicial proceeding commenced pursuant to <u>Section</u> <u>10.05</u> of this <u>Article X</u> that the procedures and presumptions of this <u>Article X</u> are not valid, binding and enforceable and shall stipulate in such proceeding that the Corporation is bound by all the provisions of this <u>Article X</u>.

Section 10.07 <u>Non-Exclusive Rights</u>. The right to indemnification and the payment of expenses incurred in defending a Proceeding in advance of its final disposition conferred in this <u>Article X</u>: (i) shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of this Certificate of Incorporation, Bylaws, agreement, vote of stockholders or Disinterested Directors or otherwise and (ii) cannot be terminated by the Corporation, the Board or the stockholders of the Corporation with respect to any act or omission that is the subject of the Proceeding for which indemnification or advancement of expenses is sought prior to the date of such termination. Any amendment, modification, alteration or repeal of this <u>Article X</u> (by merger, consolidation or otherwise) that in any way diminishes, limits, restricts, adversely affects or eliminates any right of an Indemnitee or his or her successors to indemnification, advancement of expenses or otherwise shall be prospective only and shall not, without the written consent of the Indemnitee, in any way diminish, limit, restrict, adversely affect or eliminate any such right with respect to any actual or alleged state of facts, occurrence, action or omission then or previously existing, or any action, suit or proceeding previously or thereafter brought or threatened based in whole or in part upon any such actual or alleged state of facts, occurrence, action or omission.

Section 10.08 <u>Insurance</u>. The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise, against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the DGCL.

Section 10.09 <u>Additional Rights</u>. The Board may grant rights to indemnification, and rights to be paid by the Corporation the expenses incurred in connection with any Proceeding in advance of its final disposition, to any current or former employee or agent of the Corporation to the fullest extent of the provisions of this <u>Article X</u> with respect to the indemnification and advancement of expenses of current or former directors and officers of the Corporation.

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Section 10.10 <u>Severability</u>. If any provision or provisions of this <u>Article X</u> shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this <u>Article X</u> (including, without limitation, each portion of any Section of this <u>Article X</u> containing any such provision held to be invalid, illegal or unenforceable, that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (ii) to the fullest extent possible, the provisions of this <u>Article X</u> (including, without limitation, each such portion of any Section of this <u>Article X</u> containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

Section 10.11 <u>Definitions; Construction</u>. For purposes of this <u>Article X</u>: "<u>Disinterested Director</u>" means a director of the Corporation who is not and was not a party to the Proceeding in respect of which indemnification is sought by the claimant; and "<u>Independent Counsel</u>" means a law firm, a member of a law firm, or an independent practitioner, that is experienced in matters of corporate law and shall include any person who, under the applicable standards of professional conduct then prevailing, would not have a conflict of interest in representing either the Corporation or the claimant in an action to determine the claimant's rights under this <u>Article</u> <u>X</u>. Any reference to an officer of the Corporation in this <u>Article X</u> shall be deemed to refer exclusively to the officers appointed as such pursuant to the Bylaws by the Board or by an officer to whom the Board has delegated the power to appoint officers, and any reference to an officer of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be deemed to refer exclusively to an officer appointed by the board of directors (or equivalent governing body) of such other entity pursuant to the certificate of incorporation and bylaws (or equivalent organizational documents) of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. The fact that any person who is or was an employee of the Corporation or an employee of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise has been given or has used the title of "vice president" or any other title that could be construed to suggest or imply that such person is or may be an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to be, an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for purposes of this <u>Article X</u>.

Section 10.12 <u>Notices</u>. Any notice, request or other communication required or permitted to be given to the Corporation under this <u>Article X</u> shall be in writing and either delivered in person or sent by telecopy, fax, email, overnight mail or courier service, or certified or registered mail, postage prepaid, return receipt requested, to the Secretary of the Corporation and shall be effective only upon receipt by the Secretary.

**ARTICLE XI** 

Section 11.01 <u>Recognition of Corporate Opportunities</u>. In recognition and anticipation that (i) certain directors, officers, principals, partners, members, managers, employees, agents and/or other representatives of the Apollo Entities and their respective Affiliates (as defined below) and the Vistria Stockholder and its respective Affiliates may serve as directors, officers or agents of the Corporation and its Affiliates, and (ii) the Apollo Entities and their respective Affiliates and the Vistria Stockholder and its respective Affiliates may now engage and may

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continue to engage in the same or similar activities or related lines of business as those in which the Corporation and Affiliates, directly or indirectly, may engage and/or other business activities that overlap with or compete with those in which the Corporation and its Affiliates, directly or indirectly, may engage, the provisions of this <u>Article XI</u> are set forth to regulate and define the conduct of certain affairs of the Corporation and its Affiliates with respect to certain classes or categories of business opportunities as they may involve the Apollo Entities and their respective Affiliates or the Vistria Stockholder and its respective Affiliates, as applicable, and any person or entity who, while a stockholder, director, officer or agent of the Corporation or any of its Affiliates, is a director, officer, principal, partner, member, manager, employee, agent and/or other representative of the Apollo Entities and their respective Affiliates or the Vistria Stockholder and its respective Affiliates, as applicable (each, an "<u>Identified Person</u>"), on the one hand, and the powers, rights, duties and liabilities of the Corporation and its Affiliates and its and their respective stockholders, directors, officers, and agents in connection therewith, on the other. To the fullest extent permitted by law (including, without limitation, the DGCL), and notwithstanding any other duty (contractual, fiduciary or otherwise, whether at law or in equity), each Identified Person (i) shall have the right to and shall have no duty (contractual, fiduciary or otherwise, whether at law or in equity) not to, directly or indirectly, engage in and possess interests in other business ventures of every type and description, including those engaged in the same or similar business activities or lines of business as the Corporation or any of its Affiliates or deemed to be competing with the Corporation or any of its Affiliates, on its own account, or in partnership with, or as a direct or indirect equity holder, controlling person, stockholder, director, officer, employee, agent, Affiliate (including any portfolio company), member, financing source, investor, director or indirect manager, general or limited partner or assignee of any other person or entity with no obligation to offer to the Corporation or its subsidiaries or other Affiliates the right to participate therein and (ii) shall have the right to invest in, or provide services to, any person that is engaged in the same or similar business activities as the Corporation or its Affiliates or directly or indirectly competes with the Corporation or any of its Affiliates.

Section 11.02 <u>Competitive Opportunities</u>. In the event that any Identified Person acquires knowledge of a potential transaction or matter which may be an investment, corporate or business opportunity or prospective economic or competitive advantage in which the Corporation or its Affiliates could have an interest or expectancy (contractual, equitable or otherwise) (a "<u>Competitive Opportunity</u>") or otherwise is then exploiting any Competitive Opportunity, to the fullest extent permitted under the DGCL and notwithstanding any other duty existing at law or in equity, the Corporation and its Affiliates will have no interest in, and no expectation (contractual, equitable or otherwise) that such Competitive Opportunity be offered to it. To the fullest extent permitted by law, any such interest or expectation (contractual, equitable or otherwise) is hereby renounced so that such Identified Person shall (i) have no duty to communicate or present such Competitive Opportunity to the Corporation or its Affiliates, (ii) have the right to either hold any such Competitive Opportunity for such Identified Person's own account and benefit or the account of the former, current or future direct or indirect equity holders, controlling persons, stockholders, directors, officers, employees, agents, Affiliates, members, financing sources, investors, direct or indirect managers, general or limited partners or assignees of any Identified Person or to direct, recommend, assign or otherwise transfer such Competitive Opportunity to persons or entities other than the Corporation or any of its subsidiaries, Affiliates or direct or indirect equity holders and (iii) notwithstanding any provision in this Certificate of Incorporation to the contrary, not be obligated or liable to the Corporation,

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any stockholder, director or officer of the Corporation or any other person or entity by reason of the fact that such Identified Person, directly or indirectly, took any of the actions noted in the immediately preceding clause (ii), pursued or acquired such Competitive Opportunity for itself or any other person or entity or failed to communicate or present such Competitive Opportunity to the Corporation or its Affiliates.

Section 11.03 <u>Acknowledgement</u>. Any person or entity purchasing or otherwise acquiring or holding any interest in any shares of capital stock of the Corporation or any other interest in the Corporation shall be deemed to have notice of and to have consented to the provisions of this <u>Article XI</u>.

Section 11.04 <u>Interpretation; Duties</u>. In the event of a conflict or other inconsistency between this <u>Article XI</u> and any other Article or provision of this Certificate of Incorporation, this <u>Article XI</u> shall prevail under all circumstances. Notwithstanding anything to the contrary herein, under no circumstances shall the provisions of this <u>Article XI</u> (other than this <u>Section</u> <u>11.04</u> of this <u>Article XI</u>) apply to (or result in or be deemed to result in a limitation or elimination of any duty (contractual, fiduciary or otherwise, whether at law or in equity)) owed by any employee of the Corporation or any of its subsidiaries, irrespective of whether such employee otherwise would be an Identified Person, and any Competitive Opportunity waived or renounced by any person or entity pursuant to such other provisions of this <u>Article XI</u> shall be expressly reserved and maintained by such person or entity, as applicable (and shall not be waived or renounced) as to any such employee.

Section 11.05 <u>Section</u> <u>122(17) of the DGCL</u>. For the avoidance of doubt, subject to <u>Section</u> <u>11.04</u> of this <u>Article XI</u>, this <u>Article XI</u> is intended to constitute, with respect to the Identified Persons, a disclaimer and renunciation, to the fullest extent permitted under Section 122(17) of the DGCL, of any right of the Corporation or any of its Affiliates with respect to the matters set forth in this <u>Article XI</u>, and this <u>Article XI</u> shall be construed to effect such disclaimer and renunciation to the fullest extent permitted under the DGCL.

Section 11.06 <u>Definitions</u>. Solely for purposes of this <u>Article XI</u>, "<u>Affiliate</u>" shall mean (a) with respect to the Apollo Entities, any person or entity that, directly or indirectly, is controlled by an Apollo Entity, controls an Apollo Entity, or is under common control with an Apollo Entity, but excluding (x) the Corporation, and (y) any entity that is controlled by the Corporation (including its direct and indirect subsidiaries), (b) with respect to the Vistria Stockholder, any person or entity that, directly or indirectly, is controlled by, or is under common control with, The Vistria Group, LP and (c) in respect of the Corporation, any person or entity that, directly or indirectly, is controlled by the Corporation. As used in this <u>Section</u> <u>11.06</u>, the term "control" when used with respect to any person shall mean the power to direct the management or policies of such person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise, and the terms "controlling" and "controlled" shall have meanings correlative to the foregoing.

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**ARTICLE XII** 

Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware lacks jurisdiction over such action or proceeding, then another court of the State of Delaware, or if no court of the State of Delaware has jurisdiction, then the United States District Court for the District of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Corporation, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, other employee or stockholder of the Corporation to the Corporation or any of its stockholders, (c) any action asserting a claim arising pursuant to any provision of the DGCL or of this Certificate of Incorporation or the Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (d) any action asserting a claim against the Corporation or any director or officer of the Corporation governed by the internal affairs doctrine. Notwithstanding anything to the contrary herein, but subject to the foregoing provisions of this <u>Article XII</u>, the federal district courts of the United States shall be the exclusive forum for the resolution of any action, suit or proceedings asserting a cause of action arising under the Securities Act of 1933, as amended. The provisions of this <u>Article XII</u> do not apply to claims arising under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"). Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and, to the fullest extent permitted by law, to have consented to the provisions of this <u>Article XII</u>.

**ARTICLE XIII** 

Section 13.01 <u>Section</u> <u>203 of the DGCL</u>. The Corporation hereby expressly elects not to be governed by Section 203 of the DGCL.

Section 13.02 <u>Interested Stockholders</u>. Notwithstanding the foregoing, the Corporation shall not engage in any business combination (as defined below), at any point in time at which the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, with any interested stockholder (as defined below) for a period of three (3) years following the time that such stockholder became an interested stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prior to such time, the Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock (as defined below) of the Corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (a) by persons who are directors and also officers and (b) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at or subsequent to such time, the business combination is approved by the Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock of the Corporation which is not owned by the interested stockholder.

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Section 13.03 <u>Certain Exceptions</u>. The restrictions contained in this <u>Article XIII</u> shall not apply if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a stockholder becomes an interested stockholder inadvertently and (i) as soon as practicable divests itself of ownership of sufficient shares so that the stockholder ceases to be an interested stockholder and (ii) would not, at any time, within the three-year period immediately prior to the business combination between the Corporation and such stockholder, have been an interested stockholder but for the inadvertent acquisition of ownership, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the business combination is proposed prior to the consummation or abandonment of and subsequent to the earlier of the public announcement or the notice required hereunder of a proposed transaction which (i) constitutes one of the transactions described in the second sentence of this <u>Section</u> <u>13.03(b)</u>, (ii) is with or by a person who either was not an interested stockholder during the previous three years or who became an interested stockholder with the approval of the Board and (iii) is approved or not opposed by a majority of the directors then in office (but not less than one) who were directors prior to any person becoming an interested stockholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors. The proposed transactions referred to in the preceding sentence are limited to (x) a merger or consolidation of the Corporation (except for a merger in respect of which, pursuant to Section 251(f) of the DGCL, no vote of the stockholders of the Corporation is required), (y) a sale, lease, exchange, mortgage, whether as part of a dissolution or otherwise, of assets of the Corporation or of any direct or indirect majority-owned subsidiary of the Corporation (other than to any direct or indirect wholly owned subsidiary or to the Corporation) having an aggregate market value equal to fifty percent or more of either that aggregate market value of all the assets of the Corporation determined on a consolidated basis or the aggregate market value of all the outstanding stock of the Corporation or (z) a proposed tender or exchange offer for fifty percent or more of the outstanding voting stock of the Corporation. The Corporation shall give not less than 20 days' notice to all interested stockholders prior to the consummation of any of the transactions described in clause (x) or (y) of the second sentence of this <u>Section</u> <u>13.03</u>.

Section 13.04 <u>Definitions</u>. For purposes of this <u>Article XIII</u> only, references to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>affiliate</u>" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Apollo Direct Transferee</u>" means any person that acquires (other than in a registered public offering) directly from an Apollo Entity or any of its affiliates or successors or any "group", or any member of any such group, of which such persons are a party under Rule 13d-5 of the Exchange Act, beneficial ownership of 15% or more of the then outstanding voting stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Apollo Indirect Transferee</u>" means any person that acquires (other than in a registered public offering) directly from any Apollo Direct Transferee or any other Apollo Indirect Transferee beneficial ownership of 15% or more of the then outstanding voting stock of the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>associate</u>", when used to indicate a relationship with any person, means: (i) any corporation, partnership, unincorporated association or other entity of which such person is a director, officer or partner or is, directly or indirectly, the owner of 20% or more of any class of voting stock; (ii) any trust or other estate in which such person has at least a 20% beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity; and (iii) any relative or spouse of such person, or any relative of such spouse, who has the same residence as such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>business combination</u>", when used in reference to the Corporation and any interested stockholder of the Corporation, means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any merger or consolidation of the Corporation or any direct or indirect majority-owned subsidiary of the Corporation (a) with the interested stockholder, or (b) with any other corporation, partnership, unincorporated association or other entity if the merger or consolidation is caused by the interested stockholder and as a result of such merger or consolidation <u>Section</u> <u>13.02</u> of this <u>Article XIII</u> is not applicable to the surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except proportionately as a stockholder of the Corporation, to or with the interested stockholder, whether as part of a dissolution or otherwise, of assets of the Corporation or of any direct or indirect majority-owned subsidiary of the Corporation which assets have an aggregate market value equal to 10% or more of either the aggregate market value of all the assets of the Corporation determined on a consolidated basis or the aggregate market value of all the outstanding stock of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any transaction which results in the issuance or transfer by the Corporation or by any direct or indirect majority-owned subsidiary of the Corporation of any stock of the Corporation or of such subsidiary to the interested stockholder, except: (a) pursuant to the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into stock of the Corporation or any such subsidiary which securities were outstanding prior to the time that the interested stockholder became such; (b) pursuant to a merger under Section 251(g) of the DGCL; (c) pursuant to a dividend or distribution paid or made, or the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into stock of the Corporation or any such subsidiary which security is distributed, pro rata to all holders of a class or series of stock of the Corporation subsequent to the time the interested stockholder became such; (d) pursuant to an exchange offer by the Corporation to purchase stock made on the same terms to all holders of said stock; or (e) any issuance or transfer of stock by the Corporation; provided, however, that in no case under items (c)-(e) of this subsection (iii) shall there be an increase in the interested stockholder's proportionate share of the stock of any class or series of the Corporation or of the voting stock of the Corporation (except as a result of immaterial changes due to fractional share adjustments);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any transaction involving the Corporation or any direct or indirect majority-owned subsidiary of the Corporation which has the effect, directly or indirectly, of increasing the proportionate share of the stock of any class or series, or securities convertible into the stock of any class or series, of the Corporation or of any such subsidiary which is owned by the interested stockholder, except as a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any shares of stock not caused, directly or indirectly, by the interested stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any receipt by the interested stockholder of the benefit, directly or indirectly (except proportionately as a stockholder of the Corporation), of any loans, advances, guarantees, pledges, or other financial benefits (other than those expressly permitted in subsections (i)-(iv) above) provided by or through the Corporation or any direct or indirect majority-owned subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>control</u>", including the terms "controlling," "controlled by" and "under common control with," means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting stock, by contract, or otherwise. A person who is the owner of 20% or more of the outstanding voting stock of a corporation, partnership, unincorporated association or other entity shall be presumed to have control of such entity, in the absence of proof by a preponderance of the evidence to the contrary. Notwithstanding the foregoing, a presumption of control shall not apply where such person holds voting stock, in good faith and not for the purpose of circumventing this Section, as an agent, bank, broker, nominee, custodian or trustee for one or more owners who do not individually or as a group have control of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>interested stockholder</u>" means any person (other than the Corporation or any direct or indirect majority-owned subsidiary of the Corporation) that (i) is the owner of 15% or more of the outstanding voting stock of the Corporation, or (ii) is an affiliate or associate of the Corporation and was the owner of 15% or more of the outstanding voting stock of the Corporation at any time within the three (3) year period immediately prior to the date on which it is sought to be determined whether such person is an interested stockholder; and the affiliates and associates of such person; but "interested stockholder" shall not include (A) the Apollo Entities, any Apollo Direct Transferee, any Apollo Indirect Transferee, Vistria, any Vistria Direct Transferee, any Vistria Indirect Transferee, or any of their respective affiliates or successors or any "group", or any member of any such group, of which such persons are a party under Rule 13d-5 of the Exchange Act, or (B) any person whose ownership of shares in excess of the 15% limitation set forth herein is the result of any action taken solely by the Corporation, provided that, in the case of clause (B), such person shall be an interested stockholder if thereafter such person acquires additional shares of voting stock of the Corporation, except as a result of further corporate action not caused, directly or indirectly, by such person. For the purpose of determining whether a person is an interested stockholder, the voting stock of the Corporation deemed to be outstanding shall include stock deemed to be owned by the person through application of the definition of "owner" below but shall not include any other unissued stock of the Corporation which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>owner</u>," including the terms "<u>own</u>" and "<u>owned</u>," when used with respect to any stock, means a person that individually or with or through any of its affiliates or associates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beneficially owns such stock, directly or indirectly; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has (1) the right to acquire such stock (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; provided, however, that a person shall not be deemed the owner of stock tendered pursuant to a tender or exchange offer made by such person or any of such person's affiliates or associates until such tendered stock is accepted for purchase or exchange; or (2) the right to vote such stock pursuant to any agreement, arrangement or understanding; provided, however, that a person shall not be deemed the owner of any stock because of such person's right to vote such stock if the agreement, arrangement or understanding to vote such stock arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made to ten (10) or more persons; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in item (2) of subsection (h)(ii) above), or disposing of such stock with any other person that beneficially owns, or whose affiliates or associates beneficially own, directly or indirectly, such stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>person</u>" means any individual, corporation, partnership, unincorporated association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>stock</u>" means, with respect to any corporation, capital stock and, with respect to any other entity, any equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Vistria</u>" means The Vistria Group, LP and any affiliate thereof, including the Vistria Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Vistria Direct Transferee</u>" means any person that acquires (other than in a registered public offering) directly from Vistria or any of its affiliates or successors or any "group", or any member of any such group, of which such persons are a party under Rule 13d-5 of the Exchange Act, beneficial ownership of 15% or more of the then outstanding voting stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Vistria Indirect Transferee</u>" means any person that acquires (other than in a registered public offering) directly from any Vistria Direct Transferee or any other Vistria Indirect Transferee beneficial ownership of 15% or more of the then outstanding voting stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>voting stock</u>" means stock of any class or series entitled to vote generally in the election of directors. Every reference to a percentage of voting stock shall refer to such percentages of the votes of such voting stock.

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**ARTICLE XIV** 

If any provision or provisions of this Certificate of Incorporation shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Certificate of Incorporation (including, without limitation, each portion of any Article (or section or subsection thereof) of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (ii) to the fullest extent possible, the provisions of this Certificate of Incorporation (including, without limitation, each such portion of any Article (or any section or subsection thereof) of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service to or for the benefit of the Corporation to the fullest extent permitted by law.

**ARTICLE XV** 

The Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by this Certificate of Incorporation and the DGCL, and all rights, preferences and privileges herein conferred upon stockholders by and pursuant to this Certificate of Incorporation in its current form or as hereafter amended are granted subject to the right reserved in this <u>Article XV</u>. Notwithstanding the foregoing, from and after the occurrence of the Trigger Event, notwithstanding any other provisions of this Certificate of Incorporation or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to greater or additional vote or consent required hereunder (including any vote of the holders of any particular class or classes or series of stock required by law or by this Certificate of Incorporation), the affirmative vote of the holders of at least 66 2/3% of the voting power of the outstanding shares of stock entitled to vote thereon, voting together as a single class, shall be required to alter, amend or repeal <u>Section</u> <u>4.03</u> of <u>Article IV</u>, <u>Articles V</u>, <u>VI</u>, <u>VII</u>, <u>VIII</u>, I<u>X</u>, <u>X</u>, <u>XI</u>, <u>XII</u> and <u>XIII</u>, and this <u>Article XV</u>.

From and after the occurrence of the Trigger Event, notwithstanding any other provisions of this Certificate of Incorporation or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any additional or greater vote or consent required hereunder (including any vote of the holders of any particular class or classes or series of stock required by law or by this Certificate of Incorporation), the affirmative vote of the holders of at least 66 2/3% of the voting power of the outstanding shares of stock entitled to vote thereon, voting together as a single class, shall be required in order for the stockholders of the Corporation to alter, amend or repeal, in whole or in part, any provision of the Bylaws or to adopt any provision inconsistent therewith.

*[Remainder of Page Intentionally Left Blank]* 

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IN WITNESS WHEREOF, the Corporation has caused this Certificate of Incorporation to be signed by a duly authorized officer as of this [•] date of [•], [•].

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| |
|:---|
| PHOENIX EDUCATION PARTNERS, INC. |
| By: |
| Name: [•] |
| Title: [•] |

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*Phoenix Education Partners, Inc. – CERTIFICATE OF INCORPORATION*

## Exhibit 3.2

**Exhibit 3.2** 

**BYLAWS** 

**OF** 

**PHOENIX EDUCATION PARTNERS, INC.** 

(Adopted as of [•], 2025)

**ARTICLE I** 

**OFFICES** 

Section 1.01 <u>Registered Office</u>. The address of the registered office of Phoenix Education Partners, Inc. (hereinafter the "<u>Corporation</u>") in the State of Delaware, and the name of its registered agent at such address, shall be as set forth in the Certificate of Incorporation of the Corporation, as the same may be amended and/or restated from time to time (the "<u>Certificate of Incorporation</u>").

Section 1.02 <u>Other Offices</u>. The Corporation may have a principal or other office or offices at such other place or places, either within or without the State of Delaware, as the Board of Directors may from time to time determine or as shall be necessary or appropriate for the conduct of the business of the Corporation.

**ARTICLE II** 

**STOCKHOLDERS** 

Section 2.01 <u>Place of Meetings</u>. All meetings of stockholders shall be held at the principal office of the Corporation or at such other place, if any, within or without the State of Delaware, or solely by means of remote communication in accordance with <u>Section</u> <u>2.13</u> of these Bylaws and applicable law, as may be designated by the Board of Directors and stated in the notice of the meeting.

Section 2.02 <u>Annual Meetings</u>. An annual meeting of stockholders for the election of directors and the transaction of such other business as may properly be brought before the meeting in accordance with <u>Section</u> <u>2.07</u> of these Bylaws shall be held on such day and at such hour, as shall be fixed by the Board of Directors and designated in the notice of meeting. The Board of Directors may postpone, adjourn, reschedule or cancel any previously scheduled annual meeting of stockholders.

Section 2.03 <u>Special Meetings</u>. Special meetings of stockholders may only be called in the manner provided in the Certificate of Incorporation. Special meetings of stockholders shall be held on such day and at such hour, as shall be designated in the notice of meeting. Business transacted at any special meeting of stockholders shall be limited to the purpose or purposes stated in the notice of meeting. Except in the case of a special meeting of stockholders called at the request of the stockholders pursuant to the express terms of the Certificate of Incorporation, the Board of Directors may postpone, adjourn, reschedule or cancel any previously scheduled special meeting of stockholders.

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Section 2.04 <u>Notice of Meetings</u>. Except as otherwise provided by the Certificate of Incorporation or applicable law, notice, stating the place, if any, date and time of the meeting, the means of remote communication, if any, by which stockholders and proxyholders not physically present may be deemed to be present and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given not less than ten (10) days nor more than sixty (60) days before the date on which the meeting is to be held, to each stockholder entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting. Notice may be given either personally, by courier service, by electronic mail, by other form of electronic transmission in the manner provided in Section 232 of the General Corporation Law of the State of Delaware or by mail. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with postage thereon prepaid, addressed to the stockholder at such stockholder's address as it appears on the stock transfer books of the Corporation. If delivered by courier service, such notice shall be deemed to be given at the earlier of when the notice is received or left at such stockholder's address. If notice is given by electronic transmission, such notice shall be deemed to be given at the times provided in the General Corporation Law of the State of Delaware. When a determination of stockholders entitled to notice of or to vote at any meeting of stockholders has been made as provided in this Section 2.04, such determination shall apply to any adjournment thereof, unless the Board of Directors fixes a new notice or voting record date for the adjourned meeting. Such further notice shall be given as may be required by law.

Section 2.05 <u>Quorum; Adjournment of Meetings</u>. Except as otherwise provided by law or by the Certificate of Incorporation, the holders of a majority in voting power of the outstanding capital stock entitled to vote at the meeting, represented in person or by proxy, shall constitute a quorum at a meeting of stockholders, except that when specified business is to be voted on by a class or series or classes or series of stock voting as a separate class, the holders of a majority in voting power of the shares of such class or series or classes or series shall constitute a quorum of such class or series or classes or series with respect to the vote on such business. The chairman of the meeting may adjourn the meeting from time to time, whether or not there is such a quorum. No notice of an adjourned meeting need be given except as required by law. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. The stockholders present at a duly called meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

Section 2.06 <u>Proxies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each stockholder entitled to vote at a meeting of stockholders or to express consent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy in any manner provided by applicable law, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary a revocation of the proxy or a new proxy bearing a later date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>White Card</u>. Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for exclusive use by the Board of Directors.

Section 2.07 <u>Notice of Stockholder Business and Nominations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Meeting of Stockholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any annual meeting of the stockholders, only such nominations of persons for election to the Board of Directors and only other business shall be considered or conducted, as shall have been properly brought before the meeting. For nominations to be properly made at an annual meeting, and proposals of other business to be properly brought before an annual meeting, nominations and proposals of other business must be made: (A) pursuant to the Corporation's notice of meeting (or any supplement thereto) delivered pursuant to <u>Section</u> <u>2.04</u> of these Bylaws, (B) by or at the direction of the Board of Directors or any duly authorized committee thereof, (C) by any stockholder of the Corporation who (i) was a stockholder of record at the time of giving of notice provided for in this Bylaw and at the time of the annual meeting, (ii) is entitled to vote at the meeting and (iii) complies with the notice procedures set forth in this Bylaw as to such business or nomination or (D) as provided in the Stockholders Agreement (as defined in the Certificate of Incorporation). Subject to the Stockholders Agreement, clause (C) of this <u>Section</u> <u>2.07(a)(i)</u> shall be the exclusive means for a stockholder to make nominations or submit other business (other than matters properly brought under Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the "<u>Exchan</u>g<u>e Act</u>"), and included in the Corporation's notice of meeting) before an annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without qualification or limitation, for any nominations or any other business to be properly brought before an annual meeting by a stockholder pursuant to paragraph (a)(1)(C) of this Bylaw, the stockholder must have given timely notice thereof in writing to the Secretary and such other business must otherwise be a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the close of business on the 120th day and not later than the close of business on the 90th day prior to the first anniversary of the preceding year's annual meeting (which date shall, for purposes of the Corporation's first annual meeting of stockholders after its shares of Common Stock are first publicly traded, be deemed to have occurred on [•], 2025); <u>provided</u>, <u>however</u>, that in the event that the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to the date of such annual meeting and not later than the close of business on the 90th day prior to the date of such annual meeting or, if the first public announcement of the date of such annual meeting is less than 100 days prior to the date of such annual meeting, the 10th day following the day on which public announcement of the date of such meeting is first made by the Corporation. "Close of business" means 5:00 p.m. local time at the principal executive offices of the Corporation on any calendar day, whether or not such day is a business day. In no event shall any adjournment or postponement of an annual meeting or the announcement thereof

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commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. In addition, to be timely, a stockholder's notice shall further be updated and supplemented, if necessary, so that the information provided or required to be provided in such notice or otherwise at the request of the Corporation or pursuant to these Bylaws shall be true, correct and complete as of the record date for determining the stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to the Secretary at the principal executive offices of the Corporation not later than five (5) business days after such record date for the meeting in the case of the update and supplement required to be made as of such record date, and not later than eight (8) business days prior to the date for the meeting, any adjournment or postponement thereof in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof. To be in proper form, a stockholder's notice (whether given pursuant to this paragraph (a)(ii) or paragraph (b)) to the Secretary must: (a) set forth, as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such stockholder, as they appear on the Corporation's books and records, of such beneficial owner, if any, and of their respective affiliates or associates or others acting in concert therewith, (ii) (A) the class or series and number of shares of capital stock of the Corporation which are, directly or indirectly, owned beneficially and of record by such stockholder, such beneficial owner, and of their respective affiliates or associates or others acting in concert therewith, (B) any option, warrant, convertible security, stock appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of the Corporation or with a value derived in whole or in part from the value of any class or series of shares of the Corporation, any derivative or synthetic arrangement having the characteristics of a long position in any class or series of shares of the Corporation, or any contract, derivative, swap or other transaction or series of transactions designed to produce economic benefits and risks that correspond substantially to the ownership of any class or series of shares of the Corporation, including due to the fact that the value of such contract, derivative, swap or other transaction or series of transactions is determined by reference to the price, value or volatility of any class or series of shares of the Corporation, whether or not such instrument, contract or right shall be subject to settlement in the underlying class or series of capital stock of the Corporation or otherwise, through the delivery of cash or other property, or otherwise, and without regard of whether the stockholder of record, the beneficial owner, if any, or any affiliates or associates or others acting in concert therewith, may have entered into transactions that hedge or mitigate the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the value of shares of the Corporation (any of the foregoing, a "<u>Derivative Instrument</u>") directly or indirectly owned beneficially by such stockholder, the beneficial owner, if any, or any affiliates or associates or others acting in concert therewith, (C) any proxy, contract, arrangement, understanding, or relationship pursuant to which such stockholder or beneficial owner has a right to vote any shares of any security of the Corporation, (D) any contract, arrangement, understanding, relationship or otherwise, including any repurchase or similar so-called "stock borrowing" agreement or arrangement, engaged in, directly or indirectly, by such stockholder or beneficial owner, the purpose or effect of which is to mitigate loss to, reduce the economic risk (of ownership or otherwise) of any class or series of the shares of the Corporation by, manage the risk of share price changes for, or increase or decrease the voting

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power of, such stockholder or beneficial owner with respect to any class or series of the shares of the Corporation, or which provides, directly or indirectly, the opportunity to profit or share in any profit derived from any decrease in the price or value of any security of the Corporation (any of the foregoing, a "<u>Short Interest</u>"), (E) any rights to dividends on the shares of the Corporation owned beneficially by such stockholder or beneficial owner that are separated or separable from the underlying shares of the Corporation, (F) any proportionate interest in shares of the Corporation or Derivative Instruments held, directly or indirectly, by a general or limited partnership in which such stockholder or beneficial owner is a general partner or, directly or indirectly, beneficially owns an interest in a general partner of such general or limited partnership, (G) any performance-related fees (other than an asset-based fee) that such stockholder or beneficial owner is entitled to based on any increase or decrease in the value of shares of the Corporation or Derivative Instruments, if any, as of the date of such notice, including without limitation any such interests held by members of such stockholder's or beneficial owner's immediate family sharing the same household, (H) any significant equity interests or any Derivative Instruments or Short Interests in any principal competitor of the Corporation (as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended from time to time) held by such stockholder or beneficial owner, and (I) any direct or indirect interest of such stockholder or beneficial owner in any contract with the Corporation, any affiliate of the Corporation or any principal competitor of the Corporation (as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended from time to time) (including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement), and (iii) any other information relating to such stockholder and beneficial owner, if any, that would be required to be disclosed in a proxy statement and form of proxy or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; (b) a representation that the stockholder giving notice (i) is a stockholder entitled to vote at the meeting and intends to appear in person or by a qualified representative at the meeting to propose such business or nomination; (ii) intends (A) to deliver a proxy statement and form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve the business or nomination, and (B) to solicit proxies from stockholders in support of the stockholder proposal or nomination, including in accordance with Rule 14a-19 under the Exchange Act as applicable; and (iii) shall provide all other information and affirmations, updates and supplements required pursuant to these Bylaws; (c) if the notice relates to any business other than a nomination of a director or directors that the stockholder proposes to bring before the meeting, set forth (i) a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest of such stockholder and beneficial owner, if any, on whose behalf such proposal is made in such business, (ii) the text of the proposal or business (including the text of any resolutions proposed for consideration, and, in the event that such business includes a proposal to amend the Bylaws, the text of such proposed amendment) and (iii) a description of all agreements, arrangements and understandings between such stockholder and beneficial owner, if any, and any other person or persons (including their names) in connection with the proposal of such business by such stockholder; (d) set forth, as to each person, if any, whom the stockholder proposes to nominate for election or reelection to the Board of Directors (i) all information relating to such person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies

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for election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder (including such person's written consent to being named in the Corporation's proxy statement as a nominee and to serving as a director if elected) and (ii) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three (3) years, and any other material relationships, between or among such stockholder and beneficial owner, if any, and their respective affiliates and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his or her respective affiliates and associates, or others acting in concert therewith, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K if the stockholder making the nomination and any beneficial owner on whose behalf the nomination is made, if any, or any affiliate or associate thereof or person acting in concert therewith, were the "registrant" for purposes of such rule and the nominee were a director or executive officer of such registrant; and (e) with respect to each nominee for election or reelection to the Board of Directors, include a completed and signed questionnaire, representation and agreement required by Section 2.08 of these Bylaws. The Corporation may require any proposed nominee or proposing or nominating stockholder to furnish such other information as may reasonably be required by the Corporation to determine the eligibility of such proposed nominee to serve as a director of the Corporation or that could be material to a reasonable stockholder's understanding of the independence, or lack thereof, or other qualifications of such nominee. Any proposed nominee and proposing or nominating stockholder shall (i) provide any other information reasonably requested from time to time by the Corporation within five (5) business days after each such request and (ii) update and supplement promptly (and in any event no later than two (2) business days prior to the commencement of the applicable meeting of stockholders) any information provided to the Corporation in the stockholders' notice, or at the Corporation's request pursuant to the foregoing clause (i) or any other provision of these Bylaws, if any such information ceases for any reason to be accurate or complete in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Special Meetin</u>g<u>s of Stockholders</u>. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting. Nominations of persons for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation's notice of meeting (A) by or at the direction of the Board of Directors or any duly authorized committee thereof, (B) provided that the Board of Directors has determined that directors shall be elected at such meeting, by any stockholder of the Corporation

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who (i) is a stockholder of record at the time of giving of notice provided for in this Bylaw and at the time of the special meeting, (ii) is entitled to vote at the meeting, and (iii) complies with the notice procedures set forth in this Bylaw as to such nomination, or (C) as provided in the Stockholders Agreement. The immediately preceding sentence shall be the exclusive means for a stockholder to make nominations before a special meeting of stockholders at which directors are to be elected or appointed. In the event that the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, other than with respect to any nomination made in the manner provided in the Stockholders Agreement, any stockholder may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation's notice of meeting only if the stockholder's notice required by paragraph (a)(ii) of this Bylaw with respect to any nomination (including the completed and signed questionnaire, representation and agreement required by <u>Section</u> <u>2.08</u> of these Bylaws) shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the close of business on the 120th day prior to the date of such special meeting and not later than the close of business on the later of the 90th day prior to the date of such special meeting or, if the first public announcement of the date of such special meeting is less than 100 days prior to the date of such special meeting, the 10th day following the day on which the Corporation first makes a public announcement of the date of the special meeting at which directors are to be elected. In no event shall any adjournment or postponement of a special meeting or the announcement thereof commence a new time period (or extend any time period) for the giving of a stockholder's notice as described in the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Only such persons who are nominated in accordance with the procedures set forth in this Bylaw or in the Stockholders Agreement shall be eligible to serve as directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Bylaw. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in this Bylaw and, if any proposed nomination or business is not in compliance with this Bylaw, to declare that such defective proposal or nomination shall be disregarded; <u>provided</u>, that nothing shall limit the power and authority of the Board of Directors to make any such determinations in advance of any meeting of stockholders. Notwithstanding anything herein to the contrary, unless otherwise required by law, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to make a nomination or present a proposal of other business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this Bylaw, to be considered a qualified representative of the stockholder, a person must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For purposes of this Bylaw, "public announcement" shall mean disclosure in a press release reported by a national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding the foregoing provisions of this Bylaw, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Bylaw; <u>provided</u>, <u>however</u>, that any references in these Bylaws to the Exchange Act or the rules promulgated thereunder are not intended to and shall not limit the requirements applicable to nominations or proposals as to any other business to be considered pursuant to paragraph (a)(i)(C) or paragraph (b) of this Bylaw. Nothing in this Bylaw shall be deemed to affect any rights (i) of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act or (ii) of the holders of any series of Preferred Stock if and to the extent provided for under law, the Certificate of Incorporation or these Bylaws. Subject to Rule 14a-8 and 14a-19 under the Exchange Act, nothing in these Bylaws shall be construed to permit any stockholder, or give any stockholder the right, to include or have disseminated or described in the Corporation's proxy statement any nomination of director or directors or any other business proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding the foregoing, the nomination of any Apollo Board Nominee or Vistria Board Nominee (each as defined in the Stockholders Agreement) shall not be subject to the provisions of this <u>Section</u> <u>2.07</u>.

Section 2.08 <u>Submission of Questionnaire, Representation and Agreement</u>. To be eligible to be a nominee for election or reelection as a director of the Corporation and qualified to serve as a director, a person must deliver (such delivery to be made, in the case of a person nominated for election as a director of the Corporation pursuant to paragraph (a)(1)(C) or paragraph (b) of <u>Section</u> <u>2.07</u> of these Bylaws, in accordance with the time periods prescribed for delivery of notice under <u>Section</u> <u>2.07</u> of these Bylaws) to the Secretary at the principal executive offices of the Corporation a written questionnaire with respect to the background, citizenship and qualification of such person and the background of any other persons or entities on whose behalf the nomination is being made pursuant to paragraph (a)(1)(C) or paragraph (b) <u>Section</u> <u>2.07</u> of these Bylaws (which questionnaire shall be provided by the Secretary upon written request) and a written representation and agreement (in the form provided by the Secretary upon written request) that such person (A) is not and will not become a party to (1) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>Votin</u>g <u>Commitment</u>") that has not been disclosed to the Corporation or (2) any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein and (C) in such person's individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Corporation.

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Section 2.09 <u>Required Vote</u>. At all meetings of the stockholders at which directors are to be elected and a quorum is present, a plurality of the votes cast by stockholders entitled to vote for the election of such directors shall be sufficient to elect such directors. Except as otherwise provided by applicable law, the Certificate of Incorporation, these Bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or any regulation applicable to the Corporation, its stockholders or its securities (in which case such vote as prescribed by applicable law shall be the applicable vote on the matter), in all matters other than the election of directors, the affirmative vote of the holders of a majority in voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the matter shall be the act of the stockholders.

Section 2.10 <u>Inspectors of Elections</u>. The Corporation may, and to the extent required by applicable law shall, in advance of any meeting of stockholders, appoint one or more inspectors of election, which inspector or inspectors may include individuals who serve the Corporation in other capacities, including, without limitation, as officers, employees, agents or representatives, to act at the meetings of stockholders and make a written report thereof. One or more persons may be designated as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate has been appointed to act or is able to act at a meeting of stockholders, the chairman of the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall have the duties prescribed by law.

Section 2.11 <u>Action Without a Meeting</u>. Unless prohibited by the Certificate of Incorporation, any action permitted or required to be taken at a meeting of stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by or on behalf of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation in accordance with applicable law. Prompt notice of the taking of corporate action without a meeting by less than a unanimous written consent shall be given to those stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting had been the date that written consents signed by a sufficient number of the holders to take the action were delivered to the Corporation.

Section 2.12 <u>Conduct of Meetings</u>. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the chairman of the meeting. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the chairman of any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such

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presiding person, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the chairman of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the chairman of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. Unless and to the extent determined by the Board of Directors or the chairman of the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

Section 2.13 <u>Remote Meetings</u>. If authorized by the Board of Directors in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, stockholders and proxyholders not physically present at a meeting of stockholders may, by means of remote communication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) participate in a meeting of stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication; <u>provided</u>, that (i) the Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxyholder, (ii) the Corporation shall implement reasonable measures to provide such stockholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with such proceedings, and (iii) if any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the Corporation.

**ARTICLE III** 

**BOARD OF DIRECTORS** 

Section 3.01 <u>General Powers</u>. Except as otherwise provided in the General Corporation Law of the State of Delaware or the Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors.

Section 3.02 <u>Number of Directors</u>. The total number of directors shall be fixed from time to time in the manner provided by the Certificate of Incorporation. No decrease in the total number of directors shall shorten the term of any incumbent director.

Section 3.03 <u>Quorum; Required Vote</u>. Except as otherwise provided by law or the Certificate of Incorporation, a majority of the total number of directors then in office shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, but in no event shall less than one-third of the total number of directors (including any vacancies or unfilled newly created directorships) constitute a quorum. Except as otherwise provided by law or the Certificate of Incorporation, the vote of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

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Section 3.04 <u>Telephonic Participation</u>. All or any one or more directors may participate in a meeting of the Board of Directors or of any committee thereof by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other and participation in a meeting pursuant to such communications equipment shall constitute presence in person at such meeting.

Section 3.05 <u>Place of Meetings</u>. The Board of Directors may hold its meetings at such place or places, if any, within or without the State of Delaware, as the Board of Directors may from time to time determine.

Section 3.06 <u>Regular Meetings</u>. Regular meetings of the Board of Directors may be held at such time and place, if any, within or without the State of Delaware, as shall from time to time be determined by the Board of Directors. After there has been such determination, and notice thereof has been given to each member of the Board of Directors, regular meetings may be held without further notice being given.

Section 3.07 <u>Special Meetings</u>. Subject to the notice requirements of <u>Section</u> <u>3.08</u>, special meetings of the Board of Directors shall be held whenever called by the Chairman of the Board, if any, the Chief Executive Officer or by a majority of the directors.

Section 3.08 <u>Notice</u>. Notice of any special meeting of directors shall be given to each director at his or her business or residence in writing by hand delivery, overnight mail or courier service, facsimile, electronic mail or other electronic transmission, or orally in person or by telephone. If by overnight mail or courier service, such notice shall be deemed adequately delivered when the notice is delivered to the overnight mail or courier service company at least twenty-four (24) hours before such meeting. If by facsimile, electronic mail or other electronic transmission, such notice shall be deemed adequately delivered when the notice is transmitted at least twelve (12) hours before such meeting. If given orally in person or by telephone or by hand delivery, the notice shall be given at least twelve (12) hours prior to the time set for the meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice of such meeting.

Section 3.09 <u>Resignation</u>. Any director of the Corporation may resign at any time by giving notice in writing or by electronic transmission thereof to the Corporation. The resignation of any director shall be effective when the resignation is delivered, unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 3.10 <u>Vacancies on Board of Directors; Newly Created Directorships</u>. Except as otherwise provided in the Certificate of Incorporation, and subject to the terms of the Stockholders Agreement, any vacancy resulting from the death, resignation, removal or disqualification of any director or other cause, or any newly created directorship resulting from

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any increase in the authorized number of directors, shall be filled only by an affirmative vote of a majority of the directors then in office, although less than a quorum, or by the sole remaining director, and shall not be filled by the stockholders of the Corporation; <u>provided</u>, that (i) for so long as the Apollo Entities own, beneficially or of record, at least 5% of the outstanding Common Stock of the Corporation, any vacancy resulting from the death, resignation, removal, disqualification or other cause in respect of any Apollo Board Nominee, including the failure of any Apollo Board Nominee to be elected, shall be filled only by the Apollo Stockholder (as defined in the Certificate of Incorporation) and (ii) for so long as the Vistria Nomination Condition (as defined in the Stockholders Agreement) is satisfied, any vacancy resulting from the death, resignation, removal, disqualification or other cause in respect of such Vistria Board Nominee (as defined in the Stockholders Agreement), including the failure of the Vistria Board Nominee to be elected, shall be filled in the manner set forth in the Stockholders Agreement. Except as otherwise provided by this Bylaw, a director elected to fill a vacancy or newly created directorship shall hold office until the annual meeting of stockholders for the election of directors of the class to which such director shall have been appointed and until his or her successor has been duly elected and qualified, subject, however, to such director's earlier death, resignation, retirement, removal or disqualification.

Section 3.11 <u>Committees of the Board</u>. The Board of Directors may designate one or more committees of the Board of Directors to exercise, subject to applicable provisions of law, all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation when the Board of Directors is not in session. Each such committee shall consist of two (2) or more directors of the Corporation and, subject to applicable law and any other law, rule or regulation applicable to the Corporation (including the rules and regulations of any securities exchange on the which the Corporation's shares are listed), at least one Apollo Board Nominee shall be entitled to be a member of each such committee, for so long as the Apollo Entities (as defined in the Certificate of Incorporation) own, beneficially or of record, at least 5% of the outstanding Common Stock of the Corporation. The Board of Directors may designate one (1) or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Except to the extent restricted by law, the Certificate of Incorporation or these Bylaws, any such committee, to the extent provided by the General Corporation Law of the State of Delaware, these Bylaws or the designating resolution, shall have and may exercise all the powers and authority of the Board of Directors. In the absence or disqualification of any member of such committee or committees, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Each committee shall keep written minutes of its proceedings and shall report such proceedings to the Board of Directors when required.

Each committee of the Board of Directors may fix its own rules of procedure and shall hold its meetings as provided by such rules, except as may otherwise be provided by in these Bylaws or by resolution of the Board of Directors designating such committee. Notice of such meetings shall be given to each member of the committee in the manner provided for in <u>Section</u> <u>3.08</u> of these Bylaws. Each committee shall serve at the pleasure of the Board of Directors and the Board of Directors shall have power at any time to fill vacancies in, to change the membership of, or to dissolve any such committee. Unless otherwise provided in the

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Certificate of Incorporation, these Bylaws or the resolution of the Board of Directors designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee. Except as otherwise expressly provided in these Bylaws or the by resolution of the Board of Directors designating such committee, every reference to a committee or to a member of a committee in these Bylaws shall apply to any subcommittee or member of a subcommittee *mutatis mutandis*.

Section 3.12 <u>Action Without Meeting</u>. Unless otherwise restricted by the Certificate of Incorporation, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting if all members of the Board of Directors or any committee thereof, as the case may be, consent thereto in writing or by electronic transmission. After an action is taken, the consent or consents relating thereto shall be filed with the minutes or proceedings of the Board of Directors or committee in the same paper or electronic form as the minutes are maintained.

Section 3.13 <u>Fees and Compensation</u>. The Board of Directors shall have the authority to fix the compensation, including fees, reimbursement of expenses and equity compensation, of directors for services to the Corporation in any capacity, including for attendance of meetings of the Board of Directors or participation on any committees. Directors who are officers or employees of the Corporation may receive, if the Board of Directors desires, compensation for service as directors. Nothing herein contained shall be construed to preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

**ARTICLE IV** 

**OFFICERS** 

Section 4.01 <u>Officers</u>. The elected officers of the Corporation shall be chosen by the Board of Directors and may include a Chairman of the Board, a Chief Executive Officer, one or more Presidents, a Chief Financial Officer, and a Secretary, all of whom shall be elected by the Board of Directors. The Chairman of the Board, if any, shall be chosen from among the directors. All officers elected by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this <u>Article IV</u>. Such officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof. In addition, the Board of Directors or any committee thereof may from time to time elect, or the Chief Executive Officer may appoint, such other officers (including one or more Vice Presidents, Assistant Secretaries, Treasurers and Controllers) and such agents, as may be necessary or desirable for the conduct of the business of the Corporation. Any number of offices may be held by the same person. Such other officers and agents shall have such duties and shall hold their offices for such terms as shall be provided in these Bylaws or as may be prescribed by the Board of Directors or such committee or by the Chief Executive Officer, as the case may be.

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Section 4.02 <u>Term of Office</u>. The principal officers of the Corporation shall hold office until his or her successor shall have been duly chosen and shall qualify, or until his or her earlier death, resignation, retirement, removal or disqualification.

Section 4.03 <u>Removal</u>. Any officer may be removed, either with or without cause, at any time, by the Board of Directors. Any officer or agent appointed by the Chief Executive Officer may also be removed by him or her whenever, in his or her judgment, the best interests of the Corporation would be served thereby. No elected officer shall have any contractual rights against the Corporation for compensation by virtue of such election beyond the date of the election of his or her successor or his or her earlier death, resignation, removal or disqualification, whichever event shall first occur, except as otherwise provided in an employment contract or under an employee deferred compensation plan.

Section 4.04 <u>Resignations</u>. Any officer may resign at any time by giving notice in writing or by electronic transmission thereof to the Corporation. The resignation of any officer shall be effective when the resignation is delivered, unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 4.05 <u>Vacancies</u>. A vacancy in any office may be filled in the manner prescribed in these Bylaws for appointment to such office.

Section 4.06 <u>Powers and Duties</u>. Subject to the control of the Board of Directors, the officers shall each have such authority and perform such duties in the management of the Corporation as from time to time may be prescribed by the Board of Directors and as may be delegated by the Chief Executive Officer without limiting the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Chairman of the Board</u>. The Chairman of the Board, if any, shall preside at all meetings of the Board of Directors and he or she shall have and perform such other duties as from time to time may be assigned to him or her by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Chief Executive Officer</u>. The Chief Executive Officer of the Corporation shall, subject to the control of the Board of Directors, have general supervision, direction and control of the business and officers of the Corporation. The Chief Executive Officer shall preside at all meetings of the stockholders and, in the absence of a Chairman of the Board, at all meetings of the Board of Directors. Unless there shall have been elected one or more Presidents of the Corporation, the Chief Executive Officer shall be the President of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>President</u>. Each President shall have such general powers and duties of supervision and management as shall be assigned to him or her by the Board of Directors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Chief Financial Officer</u>. The Chief Financial Officer shall have the custody of the corporate funds and securities and shall keep full and accurate account of receipts and disbursements in books belonging to the Corporation. He or she shall deposit all moneys and other valuables in the name and to the credit of the Corporation in such depositaries as may be designated by the Board of Directors. He or she shall disburse the funds of the Corporation as may be ordered by the Board of Directors, the Chairman of the Board, Chief Executive Officer or a President, taking proper vouchers for such disbursements. He or she shall render to the Chairman of the Board, Chief Executive Officer, each President and the Board of Directors at the regular meetings of the Board of Directors, or whenever they may request it, an account of all his or her transactions as Chief Financial Officer and of the financial condition of the Corporation. If required by the Board of Directors, he or she shall give the Corporation a bond for the faithful discharge of his or her duties in such amount and with such surety as the Board of Directors shall prescribe. The Chief Executive Officer may direct the Treasurer or any assistant Treasurer to assume and perform the duties of the Chief Financial Officer in the absence or disability of the Chief Financial Officer, and the Treasurer or any assistant Treasurer shall perform other duties commonly incident to his or her office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Secretar</u>y. The Secretary, if present, shall act as secretary at all meetings of the Board of Directors or any committee thereof and of the stockholders and keep the minutes thereof in a book or books to be provided for that purpose. He or she shall see that all notices required to be given by the Corporation are duly given and served; he or she shall have charge of the stock records of the Corporation; he or she shall see that all reports, statements and other documents required by law are properly kept and filed; and in general, he or she shall perform all the duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the Chief Executive Officer or the Board of Directors.

Section 4.07 <u>Salaries</u>. The salaries of the principal officers shall be fixed from time to time by the Board of Directors or a committee thereof appointed for such purpose, and the salaries of any other officers may be fixed by the Chief Executive Officer.

**ARTICLE V** 

**CAPITAL STOCK** 

Section 5.01 <u>Certificated and Uncertificated Stock; Transfers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The shares of stock of the Corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of the Corporation's stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Every holder of stock in the Corporation represented by certificates shall be entitled to have a certificate signed by, or in the name of the Corporation by any two authorized officers certifying the number and class of shares of stock of the Corporation owned by such holder. Unless the Board of Directors by resolution directs otherwise, the Chairman of the Board, the Chief Executive Officer, any President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary and any Assistant Secretary of the Corporation shall be

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authorized to sign stock certificates. Any or all of the signatures on such certificates may be an electronic signature. In case any officer, transfer agent or registrar who has signed or whose electronic signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she were such officer, transfer agent or registrar at the date of issue.

Section 5.02 <u>Last, Stolen, Mutilated or Destroyed Certificates</u>. As a condition to the issue of a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued and alleged to have been lost, stolen, mutilated or destroyed, the Corporation may require the owner of any such certificate, or such owner's legal representatives, to give the Corporation a bond in such sum and in such form as it may direct or to otherwise indemnify the Corporation against any claim that may be made against it on account of the alleged loss, theft, mutilation or destruction of any such certificate or the issuance of such new certificate or uncertificated shares. Proper evidence of such loss, theft, mutilation or destruction shall be procured for the Corporation, if required. The Corporation may authorize the issuance of such new certificate without any bond when in its judgment it is proper to do so.

Section 5.03 <u>Record Owners</u>. The stock ledger shall be the only evidence as to who are the stockholders of the Corporation and the Corporation shall be entitled to recognize the exclusive right of a person registered on its stock ledger as the owner of shares to receive dividends, to vote and to receive notice, and otherwise to exercise all of the rights and powers of an owner of such shares, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise required by law.

Section 5.04 <u>Transfer and Registry Agents</u>. The Corporation may from time to time maintain one or more transfer offices or agencies and registry offices or agencies at such place or places as may be determined from time to time by the Board of Directors.

Section 5.05 <u>Record Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order that the Corporation may determine the stockholders entitled to notice of and to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted and which record date, unless otherwise required by law, shall not be more than 60 nor less than 10 days before the date of such meeting. If the Board of Directors so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board of Directors determines, at the time it fixes such record date, that a later date on or before the date of meeting shall be the date for making such determination. If no such record date is fixed by the Board of Directors, then the record date shall, unless otherwise required by law, be at the close of business on the day next preceding the day on which notice of such meeting is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted and which record date shall not be more than 60 days prior to such action. If no such record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In order that the Corporation may determine the stockholders entitled to express consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors and which record date shall not be more than 10 days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date for determining stockholders entitled to express consent to corporate action in writing without a meeting has been fixed by the Board of Directors (i) when no prior action of the Board of Directors is required by law, the record date for such purpose shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Corporation in accordance with applicable law, and (ii) if prior action by the Board of Directors is required by law, the record date for such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action.

**ARTICLE VI** 

**AMENDMENTS** 

Section 6.01 <u>Amendments by Stockholders</u>. These Bylaws may be altered, amended or repealed and new Bylaws may be added by the stockholders (i) prior to the Trigger Event (as defined in the Certificate of Incorporation), by the affirmative vote of the holders of a majority in voting power of the stock entitled to vote thereon and (ii) after the Trigger Event, by the affirmative vote of the holders of at least 66 2/3% of the voting power of the stock entitled to vote thereon at any annual meeting of the stockholders or at any special meeting thereof if notice of the proposed alteration, amendment, repeal or addition is contained in the notice of such special meeting.

Section 6.02 <u>Amendments by the Board of Directors</u>. The Board of Directors may adopt, amend or repeal these Bylaws as provided in the Certificate of Incorporation.

**ARTICLE VII** 

**MISCELLANEOUS PROVISIONS** 

Section 7.01 <u>Fiscal Year</u>. The fiscal year of the Corporation shall be fixed by resolution of the Board of Directors.

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Section 7.02 <u>Voting of Securities Owned by the Corporation</u>. The Board of Directors may authorize any person on behalf of the Corporation to attend and vote at any meeting of security holders of any entity in which the Corporation holds securities and to exercise, on behalf of the Corporation, any and all of the rights and powers incident to the ownership of such securities, including the authority to execute and deliver proxies, powers of attorney and consents on behalf of the Corporation. Unless the Board of Directors directs otherwise, each of the Chairman, the Chief Executive Officer and any President shall have the powers specified in the preceding provisions of this <u>Section</u> <u>7.02</u>.

Section 7.03 <u>Dividends</u>. Subject to the provisions of the Certificate of Incorporation, the Board of Directors may declare and pay dividends upon the capital stock of the Corporation as and when they deem expedient, in accordance with law. Before declaring any dividend there may be set apart out of any funds of the Corporation available for dividends such sum or sums as the directors from time to time in their discretion may deem proper. The Board of Directors may abolish any such reserve at any time.

Section 7.04 <u>Waiver of Notice</u>. Whenever any notice is required to be given under the provisions of the General Corporation Law of the State of Delaware, the Certificate of Incorporation or these Bylaws, a written waiver, signed by the person or persons entitled to such notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any annual, regular or special meeting of the stockholders or the Board of Directors or committee thereof need be specified in any waiver of notice of such meeting.

Section 7.05 <u>Contracts</u>. Except as otherwise required by law, the Certificate of Incorporation or these Bylaws, any contracts or other instruments may be executed and delivered in the name and on the behalf of the Corporation by such officer or officers of the Corporation as the Board of Directors may from time to time direct. Such authority may be general or confined to specific instances as the Board of Directors may determine. The Chairman of the Board, the Chief Executive Officer, each President, the Chief Financial Officer or any Vice President may execute bonds, contracts, deeds, leases and other instruments to be made or executed for or on behalf of the Corporation. Subject to any restrictions imposed by the Board of Directors or the Chairman of the Board, the Chief Executive Officer, each President, the Chief Financial Officer or any Vice President of the Corporation may delegate contractual powers to others under his or her jurisdiction, it being understood, however, that any such delegation of power shall not relieve such officer of responsibility with respect to the exercise of such delegated power.

## Exhibit 10.1

**Exhibit 10.1** 

**STOCKHOLDERS' AGREEMENT** 

by and among

**PHOENIX EDUCATION PARTNERS, INC.,** 

**TVG-I-E-AEG HOLDINGS, LP,** 

and

**AP VIII SOCRATES HOLDINGS, L.P.** 

Dated as of [•], 2025

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | Page |
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Definitions | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Interpretation | 6 |
| ARTICLE II DISPOSITIONS | ARTICLE II DISPOSITIONS | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Disposition and Joinders | 7 |
| ARTICLE III GOVERNANCE AND ADDITIONAL AGREEMENTS | ARTICLE III GOVERNANCE AND ADDITIONAL AGREEMENTS | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Board Composition | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Matters Requiring Approval of the Apollo Investor | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Matters Requiring Approval of the Vistria Investor | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Assurances | 12 |
| ARTICLE IV NOTICES | ARTICLE IV NOTICES | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Notices | 12 |
| ARTICLE V CERTAIN OTHER AGREEMENTS | ARTICLE V CERTAIN OTHER AGREEMENTS | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Books and Records; Access | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Sharing of Information | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3 | Confidential Information | 14 |
| ARTICLE VI MISCELLANEOUS | ARTICLE VI MISCELLANEOUS | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | GOVERNING LAW | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Binding Effect | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3 | Amendment | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4 | Termination | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5 | Specific Performance | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6 | Counterparts | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7 | Severability | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8 | Further Assurances | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.9 | Submission to Jurisdiction | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10 | Waiver | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11 | WAIVER OF JURY TRIAL | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12 | Entire Agreement | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.13 | No Third Party Beneficiaries | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.14 | Changes in Company Group Equity Securities | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.15 | No Recourse | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.16 | Issuance of Additional Securities | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.17 | Aggregation of Securities | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.18 | Assignment | 20 |

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- i -

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**STOCKHOLDERS' AGREEMENT** 

This **STOCKHOLDERS' AGREEMENT** dated as of [•], 2025 (this "<u>Agreement</u>"), by and among (i) **PHOENIX EDUCATION PARTNERS, INC.**, a Delaware corporation (the "<u>Company</u>"), (ii) **TVG-I-E-AEG HOLDINGS, LP**, a Delaware limited partnership (the "<u>Vistria Investor</u>"), and (iii) **AP VIII SOCRATES HOLDINGS, L.P.**, a Delaware limited partnership (the "<u>Apollo Investor</u>").

**WHEREAS**, in connection with, and effective upon, the date of completion of the initial public offering of the Company, the Company, the Vistria Investor and the Apollo Investor wish to set forth their agreements with respect to certain matters concerning the Company.

**NOW, THEREFORE**, in consideration of the promises and of the mutual consents and obligations hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, the parties hereto hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

Section 1.1 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used in this Agreement:

"<u>Affiliate</u>" means, with respect to any Person, any Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. As used in this definition, the term "control," including the correlative terms "controlling," "controlled by" and "under common control with," means possession, directly or indirectly, of the power to direct or cause the direction of the management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person. Notwithstanding the foregoing, (1) except as otherwise specified herein, none of the Apollo Group, the Apollo Investor, the Vistria Investor, the Vistria Fund, any Permitted Transferee or the other Holders shall be considered an Affiliate of (i) any portfolio company in which the Apollo Group, the Apollo Investor, the Vistria Investor, the Vistria Fund, any Permitted Transferee, such other Holders or any of their respective investment fund affiliates, as applicable, have made a debt or equity investment (and vice versa), (ii) any limited partner of, non-managing member of, or other similar direct or indirect investor in the Apollo Funds, the Vistria Investor, the Vistria Fund, any Permitted Transferee or any of their respective alternative investment vehicles or (iii) any portfolio company in which any limited partner of, non-managing member of, or other similar direct or indirect investor in the Apollo Group, the Apollo Investor, the Vistria Investor, the Vistria Fund, any Permitted Transferee or the other Holders or any of their respective affiliates have made a debt or equity investment (and vice versa), and none of the Persons described in clauses (i) through (iii) of this definition shall be considered an Affiliate of each other (the exclusion in this clause (1), the "<u>Affiliate Exclusion</u>") and (2) each of the Holders (other than the Apollo Investor) shall not be considered an Affiliate of the Company or any of its Subsidiaries, the Apollo Investor or the Apollo Group.

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Notwithstanding anything to the contrary herein, to the extent that AGS would be considered an "Affiliate" of the Apollo Investor or any of its Affiliates, AGS shall not be considered such an "Affiliate" of the Apollo Investor or any of its Affiliates when AGS acts as a broker-dealer, underwriter, placement agent, initial purchaser, arranger or lender or in any similar role in the ordinary course of its business.

"<u>AGS</u>" means Apollo Global Securities, LLC, a Delaware limited liability company.

"<u>Apollo Funds</u>" means Apollo Investment Fund VIII, L.P., Apollo Overseas Partners (Delaware 892) VIII, L.P., Apollo Overseas Partners (Delaware) VIII, L.P., Apollo Overseas Partners VIII, L.P. and AP Socrates Co-Invest, L.P.

"<u>Apollo Group</u>" means the Apollo Funds and the Apollo Investor, collectively with each of their respective Affiliates (other than the Company and its Subsidiaries) (it being agreed that the Affiliate Exclusion shall apply to all uses of the term "Apollo Group" in this Agreement unless otherwise specified). Notwithstanding anything to the contrary herein, to the extent that AGS would be considered a member of the "Apollo Group", AGS shall not be considered such a member of the "Apollo Group" when AGS acts as a broker-dealer, underwriter, placement agent, initial purchaser, arranger or lender or in any similar role in the ordinary course of its business.

"<u>Apollo Group Related Person</u>" means (x) any member of the Apollo Group (disregarding the Affiliate Exclusion) or (y) any Person who is a general partner, partner, managing director, manager, officer, director, employee or principal of any member of the Apollo Group (disregarding the Affiliate Exclusion) (including any Apollo Board Nominee) or any Affiliate (disregarding the Affiliate Exclusion) of any of the foregoing (it being agreed that the Affiliate Exclusion shall be disregarded for purposes of all uses of the term "Apollo Group Related Person" in this Agreement). Notwithstanding anything to the contrary herein, to the extent that AGS would be considered an "Apollo Group Related Person", AGS shall not be considered such an "Apollo Group Related Person" when AGS acts as a broker-dealer, underwriter, placement agent, initial purchaser, arranger or lender or in any similar role in the ordinary course of its business.

"<u>Board</u>" means the Board of Directors of the Company.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day on which banks are required or authorized by Law to be closed in the City of New York.

"<u>Bylaws</u>" means the bylaws of the Company, as the same may be amended and/or restated from time to time.

"<u>Change of Control</u>" means the direct or indirect (x) sale of all or substantially all of such Person's assets in one transaction or series of related transactions, (y) merger, consolidation, refinancing or recapitalization as a result of which the holders of such Person's issued and outstanding capital stock (or equivalent Equity Securities) immediately before such transaction own or control less than 50% of the voting power of the capital stock (or equivalent Equity Securities) of such Person or of the continuing or surviving entity immediately after such transaction or (z) acquisition (in one or more transactions) by any Person or Persons acting together or constituting a "group" under Section 13(d) of the Exchange Act together with any

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Affiliates thereof (other than equity holders of such Person as of the date hereof and their respective Affiliates) of beneficial ownership (as defined in Rule 13d-3 under the Exchange Act) or control, directly or indirectly, of at least 50% of the total voting power of all classes of securities entitled to vote generally in the election of such Person's board of directors or similar governing body.

"<u>Charter</u>" means the certificate of incorporation of the Company, as the same may be amended and/or restated from time to time.

"<u>Common Stock</u>" means the common stock of the Company, par value $0.01 per share.

"<u>Company Confidential Information</u>" means any confidential and proprietary information, documents and materials of the Company and its Subsidiaries and all of the foregoing's respective employees, officers, trustees, directors, managers, consultants, representatives, analyses, models, securities positions, purchases, sales, investments, competitive strategies, marketing plans, student data, educational methods and technology, activities, business, affairs or other transactions or matters, in each case that are provided by or on behalf of the Company or any of its Subsidiaries.

"<u>Company Group Equity Linked Securities</u>" means (x) any securities convertible into or exchangeable for, or any warrants or options or other rights to acquire, any capital stock, voting securities or equity interests of the Company or any of its Subsidiaries, (y) any warrants or options or other rights to acquire from the Company or any of its Subsidiaries, or any other obligation of the Company or any of its Subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, any Company Group Equity Securities or (z) any rights that are linked in any way to the price of any Equity Securities of, or to the value of or of any part of, or to any dividends or distributions paid on any capital stock or other Equity Securities of, the Company or any of its Subsidiaries.

"<u>Company Group Equity Securities</u>" means any Equity Securities issued by the Company or any of its Subsidiaries or Company Group Equity Linked Securities.

"<u>Company School</u>" means the University or any educational institution or location owned or operated by the Company or any of its Subsidiaries.

"<u>Disposition</u>" means any direct or indirect transfer, assignment, exchange, gift, pledge, encumbrance, hypothecation or sale or any other disposition, of Company Group Equity Securities, or any legal, economic or beneficial interest in any Company Group Equity Securities (in each case, whether by merger, consolidation or otherwise, whether held in its own right or by its representative and whether voluntary or involuntary or by operation of law). "<u>Dispose</u>" and "<u>Disposed</u>" have correlative meanings.

"<u>Educational Agency</u>" means any Person, whether governmental, government chartered, private or quasi-private, that engages in granting or withholding Educational Approvals for, administers any form of Student Financial Assistance to or for students of, or otherwise regulates private postsecondary schools in accordance with standards relating to the performance, operation, financial condition or academic standards of such schools.

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"<u>Educational Approvals</u>" means any Licenses or similar approval issued or required to be issued by an Educational Agency to a Company School with respect to any aspect of the Company School's operations subject to the oversight of such Educational Agency, including any such approval for the Company School to participate in any program of Student Financial Assistance offered by such Educational Agency, but excluding any Licenses or similar approval issued to the Company Schools or the Company School's employees on an individual basis.

"<u>Equity Securities</u>" has the meaning ascribed to such term in Rule 405 promulgated under the Securities Act as in effect on the date hereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder.

"<u>Governmental Authority</u>" means any international, national, federal, state, provincial or local governmental, regulatory or administrative authority, agency, commission, court, tribunal, arbitral body or self-regulated entity (including any stock exchange), whether domestic or foreign.

"<u>Holder</u>" means any Person holding Company Group Equity Securities.

"<u>Law</u>" means any federal, state, local, municipal, foreign or other law, statute, legislation, constitution, principle of common law, ordinance, code, decree, order, judgment, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority or Educational Agency and any order or decision of an applicable arbitrator or arbitration panel.

"<u>Licenses</u>" means any licenses, permits, certifications, accreditations, approvals, registrations, consents, authorizations, franchises, variances, exemptions, identification numbers, concessions, grants, directives, guidelines, policies, requirements, ruling, decrees or orders.

"<u>Percentage Interest</u>" means, with respect to any Holder at any time, the percentage reflecting the share of (x) the voting power represented by the Equity Securities of the Company held by such Holder in (y) the aggregate voting power represented by all of the issued and outstanding Equity Securities of the Company.

"<u>Permitted Transferee</u>" means, (x) with respect to the Vistria Investor, the Vistria Fund or any of its respective Affiliates (it being understood that a Person shall not be deemed to be an Affiliate of the Vistria Investor or the Vistria Fund merely by virtue of also being a Holder of Company Group Equity Securities) or any investment fund managed by The Vistria Group, LP or by any successor thereto and (y) with respect to the Apollo Investor, any member of the Apollo Group; <u>provided</u>, that in no event shall any portfolio company in which any such Person or any of its Affiliates has made a debt or equity investment be deemed a Permitted Transferee.

"<u>Person</u>" means any individual, corporation (including any non-profit corporation), limited liability company, joint stock company, general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, firm, Governmental Authority or other enterprise, association, organization or entity of any kind, whether domestic or foreign.

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"<u>Representative</u>" means, with respect to any Person, the investors, financing sources, partners, employees, officers, directors, managers, consultants and representatives of such Person.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission or any successor agency.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder.

"<u>Student Financial Assistance</u>" means any form of student financial assistance, grants or loans that is administered by any Educational Agency or other Governmental Authority.

"<u>Subsidiary</u>" means each Person in which another Person (x) owns or controls, directly or indirectly, capital stock or other Equity Securities representing more than 50% of the outstanding voting stock or other Equity Securities or (y) is a general partner, manager, managing member or other controlling Person.

"<u>University</u>" means The University of Phoenix, Inc., a Subsidiary of the Company.

"<u>Vistria Fund</u>" means Vistria Fund, LP.

---

| | |
|:---|:---|
| **Term** | **Section** |
|  Agreement | Preamble |
|  AP VIII Holdings | Preamble |
|  Apollo Board Nominee | 3.1(b) |
|  Apollo Investor | Preamble |
|  Apollo Nomination Condition | 3.1(b) |
|  Company | Preamble |
|  Director | 3.1(a) |
|  Educational Consent | 3.1(d) |
|  Information | 5.1 |
|  Receiving Party | 5.3(a) |
|  Related Parties | 6.15 |
|  Related Party | 6.15 |
|  Apollo Percentage Interest | 3.1(b) |
|  Vistria Board Nominee | 3.1(c) |
|  Vistria Investor | Preamble |
|  Vistria Investor Participants | 3.1(c) |
|  Vistria Percentage Interest | 3.1(c) |
|  Vistria Nomination Condition | 3.1(c) |
|  Vistria Subsidiary Designee | 3.1(c) |

---

Section 1.2 <u>Interpretation</u>. Interpretation of this Agreement shall be governed by the following rules of construction: (a) references to the terms Article, Section, paragraph, Annex, and Exhibit are references to the Articles, Sections, paragraphs, Annexes and Exhibits to this Agreement unless otherwise specified; (b) the terms "hereof," "herein," "hereby," "hereto," and derivative or similar words refer to this entire Agreement, including Exhibits hereto;

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(c) references to "$" or "Dollars" shall mean United States dollars; (d) the words "include," "includes," "including" and words of similar import when used in this Agreement shall mean "including without limitation," unless otherwise specified; (e) the word "or" shall not be exclusive; (f) references to "written" or "in writing" include in electronic form; (g) provisions shall apply, when appropriate, to successive events and transactions; (h) the headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (i) each of the Company, AP VIII Holdings and the Vistria Investor has participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or burdening either party by virtue of the authorship of any of the provisions in this Agreement; (j) a reference to any Person includes such Person's permitted successors and assigns; (k) references to "days" mean calendar days unless Business Days are expressly specified; (l) the word "will" shall be construed to have the same meaning and effect as the word "shall"; (m) the terms "party", "party hereto", "parties" and "party hereto" shall mean a party to this Agreement and the parties to this Agreement, as applicable, unless otherwise specified; (n) with respect to the determination of any period of time, "from" means "from and including"; (o) any deadline or time period set forth in this Agreement that by its terms ends on a day that is not a Business Day shall be automatically extended to the next succeeding Business Day; and (p) the gender of all words used herein shall include the masculine, feminine and neuter, and the number of all words shall include the singular and plural. Unless otherwise specified, any agreement, instrument or statute defined or referred to herein means such agreement, instrument or statute as from time to time may be amended, supplemented, restated or modified, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes.

**ARTICLE II** 

**DISPOSITIONS** 

Section 2.1 <u>Disposition and Joinders</u>. When any shares of Common Stock or other Company Group Equity Securities are Disposed of to a Permitted Transferee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Disposition or attempted or purported Disposition in violation of this Agreement shall be null and void *ab initio*, and the Company shall not be required to give effect to such attempted or purported Disposition on the books and records of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it shall be a condition of any Disposition (A) if the transferee is not a party to this Agreement that such Disposition not be effected unless and until such transferee has entered into a customary joinder agreement to this Agreement and such further customary documentation, in the reasonable judgment of the Company, as may be necessary to make such Person a party hereto and bound by the obligations and entitled to the rights set forth herein and (B) such Disposition complies with all requirements of applicable Law; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it shall be a condition of any Disposition that the Disposition shall not impose material liability or material reporting obligations on the Company or any Holder in any jurisdiction, whether domestic or foreign, or result in the Company or any Holder becoming subject to the jurisdiction of any court or governmental entity anywhere (other than for matters in connection with such Disposition), other than the jurisdictions, courts and governmental entities in which the Company or such Holder, as applicable, is then subject to such liability, reporting obligation or jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it shall be a condition of any Disposition that the Disposition shall not cause the termination, qualification, default, suspension or other loss (whether temporary or permanent) of any material Educational Approval.

**ARTICLE III** 

**GOVERNANCE AND ADDITIONAL AGREEMENTS** 

Section 3.1 <u>Board Composition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each member of the Board (each, a "<u>Director</u>") of the Company shall serve for the time periods set forth in the Charter or Bylaws. Subject to <u>Section</u> <u>3.2</u>, without limiting the Apollo Investor's or the Vistria Investor's rights pursuant to this <u>Section</u> <u>3.1</u>, the Board may increase or decrease its size in accordance with the provisions of the Charter and Bylaws. The Charter and Bylaws and the organizational documents of the Company's Subsidiaries, as they may be amended from time to time subject to the terms and conditions of this Agreement, shall not at any time be inconsistent with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nomination by the Apollo Investor</u>. For so long as the Percentage Interest of the Apollo Investor (the "<u>Apollo Percentage Interest</u>") is at least 5% (the "<u>Apollo Nomination Condition</u>"), the Apollo Investor shall have the right, but not the obligation, to nominate for election to the Board by the Company's stockholders a number of Directors (any such nominee, an "<u>Apollo Board Nominee</u>") that equals the Apollo Percentage Interest multiplied by the total number of Directors comprising the Board (for the avoidance of doubt, including any vacancies and newly created directorships), and rounded up to the nearest whole number, it being understood that the Apollo Nomination Condition can only fail to be satisfied as a result of Dispositions by the Apollo Investor and not the issuance of additional Company Group Equity Securities) and is subject to applicable SEC and stock exchange rules and standards (<u>provided</u>, <u>however</u>, that the Apollo Board Nominees shall not be required to be "independent" for purposes of such rules and standards). No delay by the Apollo Investor in nominating its Apollo Board Nominees shall impair its right to subsequently nominate its Apollo Board Nominees. In the event that the Apollo Investor has nominated less than the total number of nominees the Apollo Investor shall be entitled to nominate pursuant to this <u>Section</u> <u>3.1(b)</u>, the Apollo Investor shall have the right, at any time, to nominate such additional nominees to which it is entitled, in which case, the Company and the Directors shall take all necessary corporate actions, to the fullest extent permitted by applicable law, to (x) enable the Apollo Investor to nominate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board, or otherwise, and (y) effect the election or appointment of such additional individuals nominated by the Apollo Investor to fill such newly-created directorships or to fill any other existing vacancies. In the event that the Apollo Nomination Condition is no longer satisfied, the Apollo Investor shall have no right to nominate the Apollo Board Nominees and the Apollo Investor shall take all actions necessary, appropriate or otherwise reasonably

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requested by the Company to cause the Apollo Board Nominees to resign or be removed from the boards and committees of the Company and its Subsidiaries. The Apollo Board Nominees shall be entitled to the same notice and information rights as all other members of the board of directors (or similar body) of the Company or its applicable Subsidiary or any member of the applicable committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Nomination by the Vistria Investor</u>. For so long as the Percentage Interest of the Vistria Investor (the "<u>Vistria Percentage Interest</u>") is at least 5% (the "<u>Vistria Nomination Condition</u>"), the Vistria Investor shall have the right, but not the obligation, to (i) nominate for election to the Board by the Company's stockholders a number of Directors (any such nominee, a "<u>Vistria Board Nominee</u>") that equals the Vistria Percentage Interest multiplied by the total number of Directors comprising the Board (for the avoidance of doubt, including any vacancies and newly created directorships), and rounded up to the nearest whole number, it being understood that the Vistria Nomination Condition can only fail to be satisfied as a result of Dispositions by the Vistria Investor and not the issuance of additional Company Group Equity Securities) and is subject to applicable SEC and stock exchange rules and standards (<u>provided</u>, <u>however</u>, that the Vistria Investor Participants shall not be required to be "independent" for purposes of such rules and standards), (ii) designate one (1) member of the board of directors (or other similar body) of any Subsidiary to which any Affiliate of the Apollo Investor appoints any director or serves as a director (the "<u>Vistria Subsidiary Designee</u>", and, together with the Vistria Board Nominee(s), the "<u>Vistria Investor Participants</u>") and (iii) designate one (1) member of each committee of the Board (other than the Audit Committee) to which the Apollo Investor or any of its affiliates appoint any director. One (1) of the Vistria Board Nominees shall be designated as a Class III director pursuant to the classified board structure provided in <u>Section</u> <u>5.03</u> of the Charter, unless the Vistria Investor otherwise provides its prior written consent for the Vistria Board Nominee to be in a different class. No delay by the Vistria Investor in nominating or designating a Vistria Investor Participant shall impair its right to subsequently nominate or designate the Vistria Investor Participants. In the event that the Vistria Investor has nominated less than the total number of nominees the Vistria Investor shall be entitled to nominate pursuant to this <u>Section</u> <u>3.1(c)</u>, the Vistria Investor shall have the right, at any time, to nominate such additional nominees to which it is entitled, in which case, the Company and the Directors shall take all necessary corporate actions, to the fullest extent permitted by applicable law, to (x) enable the Vistria Investor to nominate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board, or otherwise, and (y) effect the election or appointment of such additional individuals nominated by the Vistria Investor to fill such newly-created directorships or to fill any other existing vacancies. In the event that the Vistria Nomination Condition is no longer satisfied, the Vistria Investor shall have no right to nominate the Vistria Investor Participants and the Vistria Investor shall take all actions necessary, appropriate or otherwise reasonably requested by the Company or the Apollo Investor to cause the Vistria Investor Participants to resign or be removed from the boards and committees of the Company and its Subsidiaries. The Vistria Board Nominee(s) and Vistria Subsidiary Designee shall be entitled to the same notice and information rights as all other members of the board of directors (or similar body) of the Company or its applicable Subsidiary or any member of the applicable committee thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Vacancies</u>. In the event that a vacancy is created at any time by the death, resignation, removal, disqualification or other cause of any Apollo Board Nominee or Vistria Board Nominee, including the failure of any Apollo Board Nominee or Vistria Board Nominee to be elected, the Apollo Investor or the Vistria Investor, as applicable, shall have the right to designate a replacement to fill such vacancy (but only if the Apollo Investor or the Vistria Investor, as applicable, would be then entitled to nominate such designee pursuant to <u>Section</u> <u>3.1(b)</u> or <u>Section</u> <u>3.1(c)</u>, as applicable). The remaining Directors and the Company shall, to the fullest extent permitted by applicable law, take all actions necessary at any time and from time to time to cause the vacancy created thereby to be filled by the individual so designated and to cause the Board to elect such designee to the Board as soon as possible; <u>provided</u>, that in the event that the removal or election of any Director would require the Company or any of its Subsidiaries to make any filing, notice or report, or obtain any consent, registration, approval, permit or authorization from any Educational Agency in order to maintain, continue or reinstate any Educational Approval presently held by any Company School (each, an "<u>Educational Consent</u>"), the Company shall not be required to take any action to remove or elect, as applicable, such Director until such Educational Consent has been made, obtained or is otherwise not required at the time of such Director's removal or election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Assurances</u>. The Company agrees, to the fullest extent permitted by applicable law, to include in the slate of nominees recommended by the Board for election at any meeting of stockholders (and in any election by written consent) called for the purpose of electing directors the persons nominated pursuant to this <u>Section</u> <u>3.1</u> and to nominate and recommend each such individual to be elected as a Director as provided herein, and to use the same efforts to cause the election of such nominees as it uses to cause other nominees recommended by the Board to be elected, including soliciting proxies or consents in favor thereof. The Company is entitled, solely for the purposes set forth in this <u>Section</u> <u>3.1(e)</u>, to identify such individual as an Apollo Board Nominee or a Vistria Board Nominee pursuant to this Agreement. The Company and the Directors shall, to the fullest extent permitted by applicable law, take all actions necessary at any time and from time to time so that (i) an Apollo Board Nominee will not be removed from the Board without the approval of the Apollo Investor, so long as the Apollo Percentage Interest is at least 5%, and (ii) a Vistria Board Nominee will not be removed from the Board without the approval of the Vistria Investor, so long as the Vistria Percentage Interest is at least 5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Corporate Opportunities</u>. The Charter (and equivalent organizational documents of each Subsidiary of the Company) shall at all times include a waiver of any interest or expectancy of the Company or any such Subsidiary in, or in being offered an opportunity to participate in, any business opportunity, and of any other "corporate opportunity" or similar restriction, in favor of the Vistria Investor, the Apollo Investor, and their respective Affiliates (disregarding the Affiliate Exclusion) and the respective Representatives of the foregoing to the fullest extent permitted by law, including pursuant to Section 122(17) of the Delaware General Corporation Law.

Section 3.2 <u>Matters Requiring Approval of the Apollo Investor</u>. For so long as the Apollo Percentage Interest is at least 33%, without the prior written approval of the Apollo Investor, the Company shall not, and shall (to the extent applicable) cause each of its Subsidiaries not to, take any action to (or agree or commit to):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase or decrease the size of the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) incur indebtedness for borrowed money, in a single transaction or a series of related transactions, aggregating to more than $50 million, except for (i) borrowings under a revolving credit facility that has previously been approved or is in existence (with no increase in maximum availability) on the date of closing of the Company's initial public offering or (ii) intercompany indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) issue additional Common Stock or Company Group Equity Securities where the value of any such issuance exceeds $50 million in any single issuance, or an aggregate amount of $100 million during a calendar year, other than (A) any award under any stockholder-approved equity compensation plan or (B) any intra-company issuance among the Company and its wholly-owned Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other than in the ordinary course of business with vendors, customers and suppliers, enter into or effect any (A) acquisition by the Company or any Subsidiary of the equity interests or assets of any Person, or the acquisition by the Company or any Subsidiary of any business, properties, assets, or Persons, in one transaction or a series of related transactions or (B) disposition of assets of the Company or any Subsidiary or the shares or other equity interests of any Subsidiary, in each case where the amount of consideration for any such acquisition or disposition exceeds $50 million in any single transaction, or an aggregate amount of $100 million in any series of transactions during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) hire or terminate the Chief Executive Officer or the Chief Financial Officer of the Company or the University or designate any Chief Executive Officer or Chief Financial Officer of the Company or the University; <u>provided</u>, <u>that</u>, with respect to any appointment or removal of the President, the Chief Executive Officer (if applicable) or the Chief Financial Officer of the University, the rights of the Apollo Investor set out in this <u>Section 3.2(e)</u> shall be subject in all respects to the requisite independence of the Board of Trustees of the University as set forth in the bylaws of the University, including the right of the Board of Trustees of the University to appoint or remove the President and Chief Financial Officer of the University as set forth therein, and the parties hereto shall be obligated only to take such action as may be permissible or appropriate under applicable Law and the bylaws of the University to give effect to this <u>Section</u> <u>3.2(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) merge or consolidate with or into any other entity, or transfer (by lease, assignment, sale or otherwise) all or substantially all of the Company's and its Subsidiaries' assets, taken as a whole, to another entity, or enter into or agree to undertake any other transaction that would constitute a Change of Control (other than, in each case, transactions among the Company and its wholly-owned Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) undertake any liquidation, dissolution or winding up of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) effect any material change in the nature of the business of the Company and its Subsidiaries, taken as a whole; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, modify or repeal (whether by merger, consolidation or otherwise) any provision of the Charter, the Bylaws or equivalent organizational documents of its Subsidiaries in a manner that adversely affects any member of the Apollo Group.

Section 3.3 <u>Matters Requiring Approval of the Vistria Investor</u>. For so long as the Vistria Percentage Interest is at least 5%, without the prior written approval of the Vistria Investor, the Company shall not, and shall (to the extent applicable) cause each of its Subsidiaries not to, amend, modify or repeal (whether by merger, consolidation or otherwise) any provision of the Charter, Bylaws or equivalent organizational documents of its Subsidiaries in a manner that adversely affects the Vistria Investor or any of its Affiliates.

Section 3.4 <u>Assurances</u>. The Company and the Directors shall, to the fullest extent permitted by applicable law, take all actions necessary at any time and from time to time ensure that the Charter and Bylaws and the organizational documents of the Company's Subsidiaries facilitate and implement the terms and conditions of, and do not at any time conflict with any provision of, this Agreement.

**ARTICLE IV** 

**NOTICES** 

Section 4.1 <u>Notices</u>. In the event a notice or other document is required to be sent hereunder to the Company, to the Apollo Investor or to the Vistria Investor, such notice or other document shall be given in writing, shall be either personally delivered to the Company, to the Apollo Investor or to the Vistria Investor, as applicable, or delivered by an established delivery service by which receipts are given or mailed by first-class mail, postage prepaid, or sent by electronic mail, addressed to the party entitled to receive such notice or other document pursuant to the contact information for each party set forth on <u>Annex</u> <u>I</u> hereto. All notices, other communications or documents shall be deemed to have been duly given: (i) at the time delivered by hand, if personally delivered; (ii) when sent, if by electronic mail (except if any error or "bounce back" electronic mail message is received by the sender and, in such case, upon actual receipt by the party to whom such notice or document is being sent); (iii) five (5) Business Days after having been deposited in the mail, postage prepaid, if mailed by first class mail; and (iv) on the first Business Day with respect to which a reputable air courier guarantees delivery; <u>provided</u>, <u>however</u>, that notices of a change of address shall be effective only upon receipt. Without limiting the foregoing, each of the Company, the Apollo Investor and the Vistria Investor agrees to receive notice under the Charter and Bylaws or under the Delaware General Corporation Law, or under the organizational documents and applicable entity law of any Subsidiary of the Company, by electronic transmission at the e-mail address on file with the Company, and the Vistria Investor covenants and agrees to keep a current e-mail address on file with the Company for such purpose.

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**ARTICLE V** 

**CERTAIN OTHER AGREEMENTS** 

Section 5.1 <u>Books and Records; Access</u>. The Company shall, and shall cause its Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall be made of all financial transactions and the assets and business of the Company and each of its Subsidiaries in accordance with generally accepted accounting principles, subject to <u>Section 5.3</u> hereof. For each of the Apollo Investor and the Vistria Investor, for so long as it beneficially owns 3% or more of the outstanding shares of Common Stock, the Company shall, and shall cause its Subsidiaries to, (A) permit the Apollo Investor or the Vistria Investor, as applicable, and, in each case, its respective designated representatives, at reasonable times and upon reasonable prior notice to the Company, to inspect, review and/or make copies and extracts from the books and records of the Company or any of such Subsidiaries and to discuss the affairs, finances and condition of the Company or any of such Subsidiaries with the officers of the Company or any such Subsidiary and (B) upon the written request of the Apollo Investor or the Vistria Investor, provide the Apollo Investor or the Vistria Investor, as applicable, in addition to other information that might be reasonably requested by the Apollo Investor or the Vistria Investor, as applicable, from time to time, (i) direct access to the Company's auditors and officers, (ii) quarter-end reports to be provided within 45 days after the end of each quarter, (iii) copies of all materials provided to the Board (or committee of the Board) at the same time as provided to the Directors (or members of a committee of the Board), (iv) access to appropriate officers and directors of the Company and its Subsidiaries at such times as may be requested by the Apollo Investor or the Vistria Investor, as applicable, as the case may be, for consultation with the Apollo Investor or the Vistria Investor, as applicable, with respect to matters relating to the business and affairs of the Company and its Subsidiaries, (v) information in advance with respect to any significant corporate actions, including, without limitation, extraordinary dividends, stock redemptions or repurchases, mergers, acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the Charter or Bylaws or the organizational documents of any of its Subsidiaries, and to provide the Apollo Investor or the Vistria Investor, as applicable, with the right to consult with the Company and its Subsidiaries with respect to such actions, (vi) flash data to be provided within ten days after the end of each quarter and (vii) to the extent otherwise prepared by the Company, operating and capital expenditure budgets and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries (all such information so furnished pursuant to this <u>Section</u> <u>5.1</u>, the "<u>Information</u>"); provided, that each of the Apollo Investor and the Vistria Investor may waive, in its sole discretion, in whole or in part, any right to receive all or any portion of the Information contemplated by this <u>Section</u> <u>5.1</u> at any time. The Company agrees to consider, in good faith, the recommendations of the Apollo Investor or the Vistria Investor in connection with the matters on which the Company is consulted as described above. Subject to <u>Section</u> <u>5.2</u>, any Affiliate of the Apollo Investor or the Vistria Investor (and any party receiving Information from the Apollo Investor or the Vistria Investor) who shall receive Information shall maintain the confidentiality of such Information in accordance with <u>Section</u> <u>5.3</u>, and the Company shall not be required to disclose any privileged Information of the Company so long as the Company has used its commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Apollo Investor and the Vistria Investor without the loss of any such privilege.

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Section 5.2 <u>Sharing of Information</u>. Individuals associated with each of the Apollo Investor and the Vistria Investor may from time to time serve on the Board or the equivalent governing body of the Company's Subsidiaries. The Company, on its behalf and on behalf of its Subsidiaries, recognizes that such individuals (a) will from time to time receive non-public information concerning the Company and its Subsidiaries and (b) may (subject to the obligation to maintain the confidentiality of such information in accordance with <u>Section</u> <u>5.3</u>) share such information with other individuals associated with the Apollo Investor and the Vistria Investor, as applicable. Such sharing will be for the dual purpose of facilitating support to such individuals in their capacity as Directors (or members of the governing body of any Subsidiary) and enabling the Apollo Investor and the Vistria Investor, as applicable, as equityholders, to better evaluate the Company's performance and prospects. The Company, on behalf of itself and its Subsidiaries, hereby irrevocably consents to such sharing.

Section 5.3 <u>Confidential</u> <u>Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality Obligations</u>. Each of the Vistria Investor and the Apollo Investor agrees that all Company Confidential Information is proprietary and confidential to the Company. The (x) Vistria Investor (on behalf of itself, its Affiliates and its Representatives) agrees that it will not, during or after the term of this Agreement, whether through an Affiliate, Representative or otherwise, use Company Confidential Information or disclose Company Confidential Information to any Person for any reason or purpose whatsoever and (y) the Apollo Investor (on behalf of itself, its Affiliates and its Representatives) (the Vistria Investor in clause (x) and the Apollo Investor in clause (y), the "<u>Receiving Party</u>") agrees that it will not, during or after the term of this Agreement, whether through an Affiliate, Representative or otherwise, use Company Confidential Information or disclose Company Confidential Information to any Person for any reason or purpose whatsoever, except, in the case of each of clauses (x) and (y):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to authorized representatives and employees of the Company or its Subsidiaries and as otherwise is proper in the course of performing the Receiving Party's obligations hereunder or under any other agreement between such Receiving Party and the Company or its Subsidiaries, or as a member of the board of directors of any of the foregoing for the purpose of discharging such member's fiduciary or other duties to the Company or its Subsidiaries, provided such member acts in good faith and in a manner such member reasonably believes to be in the best interests of the Company or its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as part of such Receiving Party's *bona fide* reporting or review procedures, or in connection with such Receiving Party's or its Affiliates' *bona fide* fund raising or marketing (subject to the recipients thereof being bound by substantially similar confidentiality obligations and use restrictions as set forth herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in accordance with <u>Section</u> <u>5.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to such Receiving Party's (or any of its Affiliates') general partners, partners, managing directors, managers, officers, directors, employees, principals, Representatives, agents, auditors, attorneys or other advisors on a "need to know" basis; <u>provided</u>, that the Receiving Party shall notify such Persons of the confidential nature of such Company Confidential Information and its obligations hereunder and instruct such Persons to abide by the confidentiality and use restrictions set forth herein applicable to such Persons (unless such Persons are otherwise already bound by a duty of confidentiality to such Receiving Party),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to any *bona fide* prospective purchaser of the Receiving Party or assets of the Receiving Party or its Affiliates or the Company Group Equity Securities held by such Holder, or *bona fide* prospective merger partner of such Receiving Party or its Affiliates; <u>provided</u>, that such *bona fide* prospective purchaser or *bona fide* prospective merger partner agrees to be bound by the provisions of this <u>Section</u> <u>5.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in connection with the performance of any party's obligations under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) as is required to be disclosed by order of a court of competent jurisdiction, administrative body or governmental body, or by subpoena, summons or legal process, or by law, rule or regulation (including as part of any governmental or regulatory investigation or review, or to comply with SEC rules or regulations); <u>provided</u>, that the Receiving Party required to make such disclosure shall, to the extent legally permissible, provide to the Company prompt written notice of any such requirement and shall cooperate with the Company in seeking a protective order or other appropriate remedy, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance of and Liability for Affiliates and Representatives</u>. Each of the Apollo Investor and the Vistria Investor shall cause their respective Affiliates to abide by and comply with the provisions of this <u>Section</u> <u>5.3</u>. The Vistria Investor shall, with respect to the Company Confidential Information, be liable to the Company for any and all breaches of the confidentiality and use restrictions set forth herein by the Vistria Investor, its Affiliates and its and their Representatives (including the Vistria Investor Participants) for any and all breaches of the confidentiality and use restrictions set forth herein by the Vistria Investor, its Affiliates and its and their Representatives (including the Vistria Investor Participants). The Apollo Investor shall, with respect to the Company Confidential Information, be liable to the Company for any and all breaches of the confidentiality and use restrictions set forth herein by the Apollo Investor, its Affiliates, and its and their Representatives. Notwithstanding anything to the contrary herein or otherwise, any liability for breach of this <u>Section</u> <u>5.3</u> shall survive the termination of this Agreement and shall continue in effect forthwith. Notwithstanding the foregoing, no Person (including any investment fund managed by the Receiving Party or its Affiliates or any portfolio company of any such investment fund) shall be deemed to be a Representative of the Receiving Party for purposes of this <u>Section</u> <u>5.3</u> or have any obligation hereunder unless such Person actually receives Company Confidential Information from, or on behalf of, the Receiving Party. Further, no Affiliate or portfolio company of the Receiving Party shall be deemed to be a Representative hereunder for purposes of this <u>Section</u> <u>5.3</u> solely due to the fact that one of the Receiving Party's employees who has received or had access to Company Confidential Information serves as an officer or member of the board of directors (or similar governing body) of such Affiliate or portfolio company; <u>provided</u>, that such employee does not provide Company Confidential Information to the other directors, officers or employees of such Affiliate or portfolio company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this <u>Section</u> <u>5.3</u>, "Company Confidential Information" shall not include, with respect to any Person, information: (A) which such Person (or its Affiliates) can demonstrate was already in the possession of such Person (or its Affiliates) prior to its receipt from the Company or any Subsidiary thereof lawfully and from a source not subject to any confidentiality obligation to such Person, the Company, their respective Affiliates or the foregoing's respective Representatives, (B) which such Person (or its Affiliates) can demonstrate was learned from sources other than the Company, its Affiliates or its Representatives and, that to the knowledge of such Person (or its Affiliates), is not bound by any duty of confidentiality to any Person in respect of such information, after such information was disclosed by the Company or its Subsidiaries, (C) which is or becomes generally available to the public or the participants in the industry in which the Company and its Subsidiaries participate, other than as a result of a disclosure by such Person, any of its Affiliates or any of its or its Affiliates' respective Representatives in violation hereof or (D) which is independently developed by such Person or its Affiliates without use, reliance upon or reference to Company Confidential Information.

**ARTICLE VI** 

**MISCELLANEOUS** 

Section 6.1 <u>GOVERNING LAW</u>. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT EVEN IF, UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

Section 6.2 <u>Binding Effect</u>. This Agreement shall be binding upon the Company, each of the parties hereto, and their respective permitted successors and assigns.

Section 6.3 <u>Amendment</u>. This Agreement may be amended, modified or supplemented, and any provision hereof may be waived, from time to time by an instrument in writing signed by the Company and the Apollo Investor; <u>provided</u>, <u>however</u>, that any such amendment, modification, supplement or waiver shall require the consent of the Vistria Investor if such amendment, modification, supplement or waiver (a) would adversely affect the Vistria Investor in any respect or (b) would disproportionately benefit any other Holder or confer any benefit on any other Holder to which the Vistria Investor would not be entitled. Upon obtaining any such consent and without any further action or execution by the Vistria Investor, (x) any amendment, modification, supplement or waiver of this Agreement may be implemented and reflected in writing executed solely by the Company and the Apollo Investor and (y) each other party to this Agreement shall be deemed a party to and bound by such amendment, modification, supplement or waiver. Notwithstanding anything to the contrary in this Agreement, any addition of a transferee of the Company Group Equity Securities in accordance with <u>Article II</u> shall not constitute an amendment hereto and need be signed only by the Company and such transferee or recipient.

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Section 6.4 <u>Termination</u>. Unless earlier terminated by the mutual agreement of all the parties hereto, this Agreement shall terminate with respect to each of the Apollo Investor and the Vistria Investor, as applicable, upon such time as it ceases to own any Company Group Equity Securities. Except as otherwise provided herein, if the Apollo Investor or the Vistria Investor Disposes of all of its Company Group Equity Securities, the Apollo Investor and the Vistria Investor, as applicable, shall cease to be a party to this Agreement and shall have no further rights or obligations hereunder.

Section 6.5 <u>Specific Performance</u>. Each party to this Agreement acknowledges that a remedy at law for any breach or attempted breach of this Agreement will be inadequate, agrees that each other party to this Agreement shall be entitled to specific performance and injunctive and other equitable relief in case of any such breach or attempted breach and further agrees to waive (to the extent legally permissible) any legal conditions required to be met for the obtaining of any such injunctive or other equitable relief (including posting any bond in order to obtain equitable relief). Each party to this Agreement further agrees not to raise as a defense or objection to the request or granting of such relief that any breach of this Agreement is or would be compensable by an award of money damages or that there is an adequate remedy at law.

Section 6.6 <u>Counterparts</u>. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. This Agreement may be executed by facsimile or .pdf signature which shall constitute an original for all purposes.

Section 6.7 <u>Severability</u>. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, and such invalid, illegal or otherwise unenforceable provisions shall be null and void as to such jurisdiction. It is the intent of the parties, however, that any invalid, illegal or otherwise unenforceable provisions be automatically replaced by other provisions which are as similar as possible in terms to such invalid, illegal or otherwise unenforceable provisions but are valid and enforceable to the fullest extent permitted by applicable Law.

Section 6.8 <u>Further Assurances</u>. Subject to the terms and conditions of this Agreement, each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments and other documents as any other party hereto reasonably may request in order to carry out the provisions of this Agreement and the consummation of the transactions contemplated hereby.

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Section 6.9 <u>Submission to Jurisdiction</u>. Each of the parties hereto irrevocably (i) consents to submit itself to the personal jurisdiction of the Delaware Court of Chancery or, in the event (but only in the event) that the Delaware Court of Chancery does not have subject matter jurisdiction over such legal action or proceeding, the United States District Court for the District of Delaware or, in the event (but only in the event) that such United States District Court for the District of Delaware also does not have subject matter jurisdiction over such legal action or proceeding, any Delaware state court sitting in New Castle County, in connection with any matter based upon or arising out of this Agreement or the actions of the parties hereof, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it will not bring any action relating to this Agreement in any court other than the courts of the State of Delaware, as described above. Each of the parties hereto hereby agrees that service of any process, summons, notice or document by U.S. registered mail to the addresses set forth in <u>Annex</u> <u>I</u> shall be effective service of process for any suit or proceeding in connection with this Agreement. Each party to this Agreement hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement, any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason other than the failure to serve process in accordance with this <u>Section</u> <u>6.9</u>, that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and to the fullest extent permitted by applicable Law, that the suit, action or proceeding in any such court is brought in an inconvenient forum, that the venue of such suit, action or proceeding is improper, or that this Agreement, or the subject matter hereof, may not be enforced in or by such courts and further irrevocably waives, to the fullest extent permitted by applicable Law, the benefit of any defense that would hinder, fetter or delay the levy, execution or collection of any amount to which a party hereto is entitled pursuant to the final judgment of any court having jurisdiction. Each party hereto expressly acknowledges that the foregoing waiver is intended to be irrevocable under the Laws of the State of Delaware and of the United States of America; <u>provided</u>, that each such party's consent to jurisdiction and service contained in this <u>Section</u> <u>6.9</u> is solely for the purpose referred to in this <u>Section</u> <u>6.9</u> and shall not be deemed to be a general submission to said courts or in the State of Delaware other than for such purpose.

Section 6.10 <u>Waiver</u>. No course of dealing between or among the Company or its Subsidiaries, the Apollo Investor and the Vistria Investor (or any of them) or any delay in exercising any rights hereunder will operate as a waiver of any rights of any party to this Agreement. The failure of any party to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

Section 6.11 <u>WAIVER OF JURY TRIAL</u>. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE

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JUDICIAL SYSTEM, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHT OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS ENTERED INTO IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN.

Section 6.12 <u>Entire Agreement</u>. Except as otherwise expressly provided, this Agreement sets forth the entire agreement of the parties hereto as to the subject matter hereof and supersedes all previous and contemporaneous agreements among all or some of the parties hereto, whether written, oral or otherwise, as to such subject matter. Unless otherwise provided herein, any consent required by any party hereto may be withheld by such party in its sole and absolute discretion.

Section 6.13 <u>No Third Party Beneficiaries</u>. Except as expressly provided in this Agreement, none of the provisions in this Agreement shall be for the benefit of or enforceable by any Person other than the parties to this Agreement, their respective heirs, executors, administrators, successors and assigns and, with respect to <u>Section</u> <u>6.15</u> only, Related Parties. The covenants and agreements contained herein shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the respective parties hereto.

Section 6.14 <u>Changes in Company Group Equity Securities</u>. If, and as often as, there are any changes in the Company Group Equity Securities by way of a dividend, distribution, stock split or combination, reclassification, recapitalization, exchange or readjustment, whether in a merger, consolidation, conversion or similar transaction, or by any other means, appropriate adjustment shall be made in the provisions of this Agreement, as may be required, so that the rights, privileges, duties and obligations hereunder shall continue with respect to Company Group Equity Securities as so changed.

Section 6.15 <u>No Recourse</u>. Notwithstanding anything that may be expressed or implied in this Agreement or otherwise, and notwithstanding the fact that certain Holders may be partnerships, limited liability companies, corporations or other entities, each party hereto covenants, agrees and acknowledges that no recourse under this Agreement or any documents or instruments delivered by any Person pursuant hereto or otherwise shall be had against any of the Apollo Investor's, Apollo Group's (disregarding the Affiliate Exclusion), the Vistria Investor's or any of the foregoing's respective Affiliates' (disregarding the Affiliate Exclusion) former, current or future direct or indirect equity holders, controlling Persons, stockholders, directors, officers, employees, agents, Affiliates (disregarding the Affiliate Exclusion), members, financing sources, managers, general or limited partners or assignees (each, a "<u>Related Party</u>" and, collectively, the "<u>Related Parties</u>") (it being agreed that the Affiliate Exclusion shall be disregarded for purposes of all uses of the terms "Related Party" and "Related Parties" in this Agreement), in each case other than (subject, for the avoidance of doubt, to the provisions of this Agreement) each party hereto or any of its respective assignees under this Agreement, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of the Related Parties, as such, for any obligation or liability of any party hereto or any of its respective assignees under this Agreement or any documents or instruments delivered by any Person pursuant hereto for any claim based on, in respect of or by reason of such obligations or liabilities or their creation; <u>provided</u>, <u>however</u>, that nothing in this <u>Section</u> <u>6.15</u> shall relieve or otherwise limit the liability of any party hereto or any of its respective assignees for any breach or violation of its obligations under such agreements, documents or instruments.

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Section 6.16 <u>Issuance of Additional</u> <u>Securities</u>. If additional Company Group Equity Securities are issued to the Vistria Investor or the Apollo Investor at any time during the term of this Agreement, either directly or upon the exercise or exchange of securities or loans of the Company (or its Subsidiary, as applicable) exercisable for or exchangeable into Company Group Equity Securities, such additional Company Group Equity Securities, as a condition to their issuance, shall become subject to the terms and provisions of this Agreement.

Section 6.17 <u>Aggregation of</u> <u>Securities</u>. All Company Group Equity Securities beneficially owned by (a) the Vistria Investor and its Permitted Transferees shall be aggregated together and (b) the Apollo Investor and its Permitted Transferees shall be aggregated together, in each case for purposes of determining the rights or obligations of the Vistria Investor or the Apollo Investor, respectively, or the application of any restrictions to the Vistria Investor or the Apollo Investor, respectively, under this Agreement in each instance in which such right, obligation or restriction is determined in respect of or with reference to any Percentage Interest or ownership of Company Group Equity Securities, including in connection with any right pursuant to <u>Article III</u>. All rights held by the Vistria Investor, its Affiliates or their respective Permitted Transferees under this Agreement shall be exercised solely by the Vistria Investor.

Section 6.18 <u>Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained herein, the Apollo Investor may assign its rights or obligations, in whole or in part, under this Agreement to any member of the Apollo Group (disregarding the Affiliate Exclusion). In the event that any additional member of the Apollo Group (disregarding the Affiliate Exclusion) becomes an owner of Company Group Equity Securities, such Person shall, as a condition to acquiring such Company Group Equity Securities, become party to this Agreement and this Agreement shall be amended and restated to provide that such Person or a designee of such Person shall have the same rights and obligations of the Apollo Investor hereunder to the extent of such Person's ownership of Company Group Equity Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained herein, the Vistria Investor may assign, in connection with a Disposition otherwise permitted hereby, (x) any of its rights or obligations to any Permitted Transferee or (y) any of its rights (other than the rights set forth in <u>Article III</u>) to any transferee of Company Group Equity Securities to whom the Vistria Investor Disposes of at least fifty percent (50%) of Company Group Equity Securities that it holds as of the date of this Agreement (subject to <u>Section</u> <u>6.14</u>). For the avoidance of doubt, except as set forth in the immediately preceding sentence, the Vistria Investor shall be prohibited from assigning to any Person any right contained in this Agreement.

[*Signature pages follow.*]

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This Agreement is executed by the Company and by the other parties hereto to be effective as of the date first above written.

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| | |
|:---|:---|
| **<u>COMPANY</u>** | **<u>COMPANY</u>** |
| **PHOENIX EDUCATION PARTNERS, INC.** | **PHOENIX EDUCATION PARTNERS, INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **<u>APOLLO INVESTOR</u>** | **<u>APOLLO INVESTOR</u>** |
| **AP VIII SOCRATES HOLDINGS, L.P.** | **AP VIII SOCRATES HOLDINGS, L.P.** |
| By: | AP VIII Socrates Holdings GP, LLC, its general partner |
| By: |  |
|  | Name: |
|  | Title: |

---

*Signature Page to Phoenix Education Partners, Inc. Stockholders' Agreement* 

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| | |
|:---|:---|
| **<u>VISTRIA INVESTOR</u>** | **<u>VISTRIA INVESTOR</u>** |
| **TVG-I-E-AEG HOLDINGS, LP** | **TVG-I-E-AEG HOLDINGS, LP** |
| By: | Vistria-AEG GP, LP, its general partner |
| By: |  |
|  | Name: |
|  | Title: |

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*Signature Page to Phoenix Education Partners, Inc. Stockholders' Agreement* 

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**ANNEX I** 

**ADDRESSES FOR NOTICE** 

PHOENIX EDUCATION PARTNERS, INC.

4025 S. Riverpoint Parkway

Phoenix, AZ 85040

Attention: [•]

Email: [•]

AP VIII SOCRATES HOLDINGS, L.P.

c/o Apollo Management VIII, L.P.

21221 Rosecrans Ave.

El Segundo, CA 90245

Attention: [•]

Email: [•]

With a copy to (which copy shall not constitute notice):

Apollo Management VIII, L.P.

9 West 57th Street

New York, NY 10019

Attention: [•]

Email: [•]

With respect to each of Phoenix Education Partners, Inc. and AP VIII Socrates Holdings, L.P., with a copy to (which copy shall not constitute notice):

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Attention: Brian P. Finnegan, Brian M. Janson, and Luke R. Jennings

Email: bfinnegan@paulweiss.com, bjanson@paulweiss.com and ljennings@paulweiss.com

TVG-I-E-AEG HOLDINGS, LP

Vistria-AEG GP, LLC

c/o The Vistria Group, LP

300 E. Randolph St.

Suite 3850

Chicago, IL 60601

Attention: [•]

Email: [•]

Annex I

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With a copy to (which copy shall not constitute notice):

WINSTON & STRAWN LLP

35 W. Wacker Drive

Chicago, IL 60601-9703

Attention: Steven J. Gavin and Timothy D. Kincaid

Email: sgavin@winston.com; tkincaid@winston.com

Annex I

## Exhibit 10.2

**Exhibit 10.2** 

**REGISTRATION RIGHTS AGREEMENT** 

**among** 

**PHOENIX EDUCATION PARTNERS, INC.** 

**AND** 

**THE HOLDERS PARTY HERETO** 

**DATED [•], 2025** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Definitions | 1 |
|  ARTICLE II DEMAND AND SHELF REGISTRATION | ARTICLE II DEMAND AND SHELF REGISTRATION | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Right to Demand; Demand Notices | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Shelf Registration | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Deferral or Suspension of Registration | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Effective Registration Statement | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Selection of Underwriters; Cutback | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6 | Lock-up | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7 | Participation in Underwritten Offering; Information by Holder | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8 | Registration Expenses | 15 |
|  ARTICLE III PIGGYBACK REGISTRATION | ARTICLE III PIGGYBACK REGISTRATION | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Notices | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Underwriter's Cutback | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Company Control | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Selection of Underwriters | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.5 | Withdrawal of Registration | 18 |
|  ARTICLE IV REGISTRATION PROCEDURES | ARTICLE IV REGISTRATION PROCEDURES | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Registration Procedures | 19 |
|  ARTICLE V INDEMNIFICATION | ARTICLE V INDEMNIFICATION | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Indemnification by the Company | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Indemnification by Selling Investors | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3 | Conduct of Indemnification Proceedings | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.4 | Settlement Offers | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.5 | Other Indemnification | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.6 | Contribution | 25 |
|  ARTICLE VI EXCHANGE ACT COMPLIANCE | ARTICLE VI EXCHANGE ACT COMPLIANCE | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | Exchange Act Compliance | 26 |
|  ARTICLE VII TERMINATION | ARTICLE VII TERMINATION | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Termination | 26 |
|  ARTICLE VIII MISCELLANEOUS | ARTICLE VIII MISCELLANEOUS | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Severability | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Governing Law; Jurisdiction; Waiver of Jury Trial | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | Other Registration Rights | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Successors and Assigns | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5 | Notices | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6 | Headings | 29 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7 | Additional Parties | 29.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.8 | Adjustments | 29.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.9 | Entire Agreement | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.10 | Counterparts; Facsimile or.pdf Signature | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.11 | Amendment | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.12 | Extensions; Waivers | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.13 | Further Assurances | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.14 | No Third-Party Beneficiaries | 30.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.15 | Interpretation; Construction | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.16 | Changes in Common Stock | 31.0 |

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ii

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**THIS REGISTRATION RIGHTS AGREEMENT,** dated as of [•], 2025 (this "<u>Agreement</u>"), is entered into by and among Phoenix Education Partners, Inc., a Delaware corporation (together with any successor entity thereto, the "<u>Company</u>"), and each of the Holders (as defined below) that are parties hereto from time to time.

**WHEREAS,** in connection with the Company's initial public offering, the parties hereto desire to enter into this Agreement in order to grant certain registration rights with respect to the Registrable Securities (as defined below).

**NOW, THEREFORE,** in consideration of the promises and of the mutual consents and obligations hereinafter set forth, the parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

Section 1.1 <u>Definitions</u>. As used herein, the following terms shall have the following respective meanings:

"<u>Adoption Agreement</u>" shall mean an Adoption Agreement in the form attached hereto as <u>Exhibit A</u>.

"<u>Affiliate</u>" shall mean, with respect to any Person, any Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. As used in this definition, the term "control," including the correlative terms "controlling," "controlled by" and "under common control with," means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person. Notwithstanding the foregoing, (a) the Company, its Subsidiaries and their respective joint ventures (if any) shall not be considered Affiliates of any Holder, (b) no Holder shall be considered an Affiliate of (i) any portfolio company in which investment funds affiliated with such Holder have made a debt or equity investment (and vice versa), (ii) any limited partners, non-managing members of, or other similar direct or indirect investors in such Holder or its investment fund affiliates, (iii) any portfolio company in which any limited partner, non-managing member of, or other similar direct or indirect investor in such Holder or any of its investment fund affiliates have made a debt or equity investment (and vice versa) or (iv) any other Holder, and none of the Persons described in clauses (i) through (iv) of this definition shall be considered an Affiliate of each other and (c) without giving effect to the exception set forth in the beginning of this sentence, no Holder shall be considered an Affiliate of the Persons described in clauses (a) and/or (b) of this definition (and vice versa).

"<u>Agreement</u>" shall have the meaning ascribed to it in the introductory paragraph.

"<u>Apollo Investor</u>" shall mean AP VIII Socrates Holdings, L.P. and each of its permitted successors and assigns.

"<u>Assignee</u>" shall have the meaning set forth in <u>Section</u> <u>8.4</u>.

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"<u>Automatic Shelf Registration Statement</u>" shall mean an "automatic shelf registration statement" as defined in Rule 405 (or successor rule) promulgated under the Securities Act.

"<u>beneficially owned</u>", "<u>beneficial ownership</u>" and similar phrases have the same meanings as such terms have under Rule 13d-3 (or any successor rule then in effect) under the Exchange Act, except that in calculating the beneficial ownership of any Holder, such Holder shall be deemed to have beneficial ownership of all securities that such Holder has the right to acquire, whether such right is currently exercisable or is exercisable upon the occurrence of a subsequent event.

"<u>Board of Directors</u>" shall mean the Board of Directors of the Company.

"<u>Business Day</u>" shall mean any day other than a Saturday, a Sunday or a day on which banks in New York, New York are authorized or obligated by law or executive order to close.

"<u>Commission</u>" shall mean the Securities and Exchange Commission or any other Federal agency at the time administering the Securities Act.

"<u>Common Stock</u>" shall mean, collectively, the Company's common stock, par value $0.01 per share, any additional security paid, issued or distributed in respect of any such shares by way of a dividend, stock split or distribution, or in connection with a combination of shares, and any security into which such Common Stock or additional securities shall have been converted or exchanged in connection with a recapitalization, reorganization, reclassification, merger, consolidation, exchange, distribution or otherwise.

"<u>Control</u>," and its correlative meanings, "Controlling," and "Controlled," shall mean the possession, direct or indirect (including through one or more intermediaries), of the power to direct or cause the direction of the management of a Person, whether through the ownership of voting securities, by contract or otherwise.

"<u>Demand Holder</u>" shall mean each of (i) the Apollo Investor, (ii) the Vistria Investor and (iii) each Transferee of the Apollo Investor or the Vistria Investor to whom the Apollo Investor or the Vistria Investor, as applicable, has Transferred rights in accordance with <u>Section</u> <u>2.1(a)</u> and <u>Section</u> <u>8.4</u>.

"<u>Demand Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.1(b)</u>.

"<u>Demand Registration</u>" shall mean a registration of Shares pursuant to <u>Section</u> <u>2.1</u>.

"<u>Demand Rights</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.1(a)</u>.

"<u>Determination Date</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(e)</u>.

"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>FINRA</u>" shall mean the Financial Industry Regulatory Authority or any successor regulatory authority.

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"<u>Holders</u>" shall mean the holders of Registrable Securities who are parties hereto (including, for the avoidance of doubt, Transferees of such Holders that acquire Registrable Securities in accordance with <u>Section</u> <u>8.4</u> and execute an Adoption Agreement in accordance with <u>Section</u> <u>8.4</u>).

"<u>Information</u>" shall have the meaning ascribed to it in <u>Section</u> <u>4.1(h)</u>.

"<u>Initial Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>3.1</u>.

"<u>Inspectors</u>" shall have the meaning ascribed to it in <u>Section</u> <u>4.1(i)</u>.

"<u>Investor Shelf Holders</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)(i)</u>.

"<u>Lock-up Period</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.6(a)</u>.

"<u>Marketed Underwritten Shelf Take-Down</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)(ii)</u>.

"<u>Non-Marketed Shelf Take-Down</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(d)</u>.

"<u>Person</u>" shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

"<u>Piggyback Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>3.1(a)</u>.

"<u>Piggyback Registration</u>" shall mean any registration pursuant to <u>Section</u> <u>3.1(a)</u>.

"<u>Prospectus</u>" shall mean the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the securities covered by such Registration Statement and, in each case, by all other amendments and supplements to such prospectus, including post-effective amendments and, in each case, all material incorporated by reference in such prospectus.

"<u>Records</u>" shall have the meaning ascribed to it in <u>Section</u> <u>4.1(i)</u>.

"<u>Registrable Securities</u>" shall mean, with respect to any Holder, at any time, the Shares held or beneficially owned by such Holder at such time or which such Holder has the right to acquire pursuant to the exercise of any option, warrant or right or the conversion or exchange of any convertible or exchangeable security held by such Holder at such time, regardless of whether then exercisable, convertible or exchangeable; <u>provided</u>, <u>however</u>, that as to any Registrable Securities, such securities shall cease to be Registrable Securities (i) upon the sale thereof pursuant to an effective registration statement, (ii) upon the sale thereof pursuant to Rule 144 or Rule 145 under the Securities Act, (iii) when the Holder of such securities holds less than one percent (1%) of the then issued and outstanding shares of Common Stock (determined as the aggregate number of Registrable Securities held by such Holder with all of its Affiliates), such securities are eligible for sale pursuant to Rule 144 under the Securities Act (or any successor provision) without

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compliance with the manner of sale, volume and other limitations under such rule and the Holder of such securities is not subject to the provisions of <u>Section</u> <u>2.6</u> hereof, (iv) when such securities cease to be outstanding or (v) if such securities shall have been otherwise transferred and new certificates or book-entries for them not bearing a legend restricting transfer shall have been delivered by the Company and such securities may be publicly resold without registration under the Securities Act.

"<u>Registration Statement</u>" shall mean any Registration Statement of the Company which covers the Registrable Securities, including any preliminary Prospectus and the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits thereto and all material incorporated by reference in such Registration Statement.

"<u>Requesting Holder</u>" shall mean the Holder exercising a Demand Right.

"<u>Restricted Shelf Take-Down</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)(iii)</u>.

"<u>Restricted Shelf Take-Down Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)(iii)</u>.

"<u>Rule 144</u>" shall mean Rule 144 under the Securities Act (or successor rule).

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Selling Investors</u>" shall mean the Holders selling Registrable Securities pursuant to a Registration Statement under this Agreement.

"<u>Selling Investors' Counsel</u>" shall have the meaning set forth in <u>Section</u> <u>4.1(b)</u>.

"<u>Shares</u>" shall mean shares of Common Stock and shall also include any security of the Company issued in respect of or in exchange for such securities of the Company, whether by way of dividend or other distribution, split, recapitalization, merger, rollup transaction, consolidation or reorganization.

"<u>Shelf Holder</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(b)</u>.

"<u>Shelf Registration</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(a)</u>.

"<u>Shelf Registration Statement</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(a)</u>.

"<u>Shelf Take-Down</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(b)</u>.

"<u>Short-Form Registration Statement</u>" shall mean a registration statement on Form S-3 or any similar short-form registration statement, as it may be amended from time to time, or any similar successor form.

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"<u>Subsidiary</u>" shall mean each Person in which another Person owns or controls, directly or indirectly, capital stock or other equity interests representing more than 50% in voting power of the outstanding capital stock or other equity interests.

"<u>Take-Down Participation Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)(iv)</u>.

"<u>Transfer</u>" shall mean any direct or indirect sale, assignment, transfer, conveyance, gift, bequest by will or under intestacy laws, pledge, hypothecation or other encumbrance, or any other disposition, of the stated security (or any interest therein or right thereto, including the issuance of any total return swap or other derivative whose economic value is primarily based upon the value of the stated security) or of all or part of the voting power (other than the granting of a revocable proxy) associated with the stated security (or any interest therein) whatsoever, or any other transfer of beneficial ownership of the stated security, with or without consideration and whether voluntarily or involuntarily (including by operation of law).

"<u>Transferee</u>" shall mean a Person acquiring Shares pursuant to a Transfer.

"<u>Underwritten Offering</u>" shall mean a sale, on the Company's or any Holder's behalf, of Shares by the Company or a Holder to an underwriter for reoffering to the public.

"<u>Underwritten Shelf Take-Down</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)</u>.

"<u>Underwritten Shelf Take-Down Notice</u>" shall have the meaning ascribed to it in <u>Section</u> <u>2.2(c)</u>.

"<u>Vistria Investor</u>" shall mean TVG-I-E-AEG Holdings, LP and each of its permitted successors and assigns.

"<u>Well-Known Seasoned Issuer</u>" shall mean a "well-known seasoned issuer" as defined in Rule 405 (or successor rule) promulgated under the Securities Act.

**ARTICLE II** 

**DEMAND AND SHELF REGISTRATION** 

Section 2.1 <u>Right to Demand; Demand Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders</u><u>'</u> <u>Demand for Registration</u>. Subject to the provisions of this <u>Article</u> <u>II</u>, at any time and from time to time, each Demand Holder shall have the right to request in writing that the Company register the sale under the Securities Act of all or part of the Registrable Securities beneficially owned by such Demand Holder or its Affiliates (a "<u>Demand Right</u>"). Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Apollo Investor shall have an unlimited number of Demand Rights; <u>provided</u>, that, subject to <u>Section</u> <u>8.4</u>, the Apollo Investor may provide a Transferee with the following Demand Rights: (A) no Demand Rights if such Transferee acquires less than 5% of the outstanding Shares, (B) one Demand Right if such Transferee acquires at least 5% but not more than 15% of the outstanding Shares and (C) two Demand Rights if such Transferee acquires at least 15% of the outstanding Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Vistria Investor shall have one Demand Right (so long as the Vistria Investor has not initiated an Underwritten Shelf Take-Down under <u>Section</u> <u>2.2(c)</u>); <u>provided</u>, that no Demand Registration shall be deemed to be a Demand Registration for the purposes of this clause (ii) if the Vistria Investor is not able to sell all of the Registrable Securities proposed to be sold therein as a result of the participation of any other Holder in such Demand Registration or the application of <u>Section</u> <u>2.5(b)</u>; <u>provided</u>, <u>further</u>, that, (A) the Company shall not be obligated to take any action to effect any Demand Registration at the request of the Vistria Investor until the one-year anniversary of the closing of the Company's initial public offering unless (x) the Company is eligible to file a Shelf Registration Statement using a Short-Form Registration Statement and the Lock-up Period relating to the initial public offering has expired or (y) the prior written consent of the Company is obtained, and (B) subject to <u>Section</u> <u>8.4</u>, the Vistria Investor may provide a Transferee with its Demand Right so long as the Vistria Investor Transfers at least 50% of the Shares that it holds as of the date of this Agreement (subject to <u>Section</u> <u>8.16</u>) to such Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Demand Right may be exercised only if (x) the aggregate offering price of the Shares to be sold by the Demand Holder and its Affiliates in the applicable offering (before deduction of underwriter discounts and commissions) is reasonably expected to exceed, in the aggregate, $50.0 million or (y) such Demand Right is exercised with respect to all remaining Registrable Securities held by the Demand Holder; <u>provided</u>, that if the Company has previously effected a Demand Registration pursuant to this <u>Section</u> <u>2.1</u>, the Company shall not be required to effect an additional Demand Registration pursuant to this <u>Section</u> <u>2.1</u> until a period of 75 days shall have elapsed from the date on which such previous registration became effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Demand Notices</u>. All requests made pursuant to this <u>Section</u> <u>2.1</u> shall be made by providing written notice to the Company (each such written notice, a "<u>Demand Notice</u>"), which notice shall (i) specify the aggregate number and class or classes of Registrable Securities proposed to be registered by the Demand Holder (and its Affiliates) providing such Demand Notice (which may include a range or be specified in an aggregate dollar amount rather than an aggregate number of shares) and (ii) state the intended methods of disposition in the offering (including whether or not such offering shall be an Underwritten Offering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Demand Filing</u>. Subject to <u>Section</u> <u>2.3</u>, promptly (but in any event within five (5) Business Days) after receipt of any Demand Notice, the Company shall give written notice of the Demand Notice to all other Holders of Registrable Securities and otherwise comply with <u>Section</u> <u>3.1</u> when and if required. Subject to <u>Section</u> <u>2.3</u>, the Company shall use reasonable best efforts to file the registration statement in respect of a Demand Notice as soon as practicable and, in any event, within 90 days after receiving a Demand Notice and shall use reasonable best efforts to cause the same to be declared effective by the Commission as promptly as practicable after such filing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Demand Registration Form</u>. Registrations under this <u>Section</u> <u>2.1</u> shall be on such appropriate registration form of the Commission that the Company is eligible to use (i) as reasonably requested by the Requesting Holder (which form may include a confidential submission if permitted under applicable rules of the Commission) and (ii) as shall permit the disposition of the Registrable Securities in accordance with the intended method or methods of disposition specified in the Demand Notice. If, in connection with any registration under this <u>Section</u> <u>2.1</u> that is requested by the Requesting Holder to be on a Short-Form Registration Statement, the managing underwriter, if any, shall advise the Company that in its opinion, or if the Company independently determines in good faith, the use of another permitted form is of material importance to the success of the offering, then such registration shall be permitted to be on such other permitted form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Demand Withdrawal</u>. A Requesting Holder may withdraw all or any portion of its Registrable Securities from a Demand Registration by providing written notice to the Company at least five (5) Business Days prior to the earliest of (i) effectiveness of the applicable Registration Statement, (ii) the filing of any Registration Statement relating to such Demand Registration that includes a pricing range or (iii) the commencement of a roadshow relating to the Registration Statement for such Demand Registration, and no such registration shall be counted for purposes of determining the number of Demand Registrations to which such Requesting Holder is entitled pursuant to <u>Section</u> <u>2.1(a)</u> if the Requesting Holder withdraws all of its Registrable Securities from such Demand Registration.

Section 2.2 <u>Shelf Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Filing</u>. Notwithstanding anything contained in this Agreement to the contrary, (i) from and after such time as the Company shall have qualified for the use of a Short-Form Registration Statement, upon the written request by the Apollo Investor or the Vistria Investor, (A) subject to <u>Section</u> <u>2.3</u>, promptly (but in any event within five (5) Business Days) after receipt of any such written request, the Company shall give written notice to all other Holders of Registrable Securities and otherwise comply with <u>Section</u> <u>3.1</u>, and (B) the Company shall use its reasonable best efforts to file as soon as reasonably practicable and in any event within 60 days with the Commission a Short-Form Registration Statement (a "<u>Shelf Registration Statement</u>") to register the sale of all of the Registrable Securities then outstanding on a delayed or continuous basis in accordance with Rule 415 under the Securities Act (a "<u>Shelf Registration</u>") and (ii) the Company shall use its reasonable best efforts to cause to be declared effective the Shelf Registration Statement as promptly as practicable after such filing. In no event shall the Company be required to file, and maintain effectiveness of, more than one Shelf Registration Statement at any one time pursuant to this <u>Section</u> <u>2.2</u>. For the avoidance of doubt, no request for the filing of a Shelf Registration Statement pursuant to this <u>Section</u> <u>2.2(a)</u> shall count as a Demand Registration for purposes of <u>Section</u> <u>2.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shelf Take-Downs</u>. Any Holder whose Registrable Securities are included in an effective Shelf Registration Statement (a "<u>Shelf Holder</u>") may initiate an offering or sale of all or part of such Registrable Securities (a "<u>Shelf Take-Down</u>"), in which case the provisions of this <u>Section</u> <u>2.2</u> shall apply. Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any such Shelf Holder may initiate an unlimited number of Non-Marketed Shelf Take-Downs pursuant to <u>Section</u> <u>2.2(d)</u> below; <u>provided</u>, that such Non-Marketed Shelf Take-Downs do not constitute an Underwritten Shelf Take-Down;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Apollo Investor may initiate an unlimited number of Underwritten Offerings (including any block trade) pursuant to <u>Section</u> <u>2.2(c)</u> below; <u>provided</u>, that, subject to <u>Section</u> <u>8.4</u>, the Apollo Investor may provide a Transferee with the following Underwritten Shelf Take-Down rights: (A) such Transferee may not initiate any Underwritten Offerings (including any block trade) if such Transferee acquires less than 5% of the outstanding Shares, (B) such Transferee may initiate one Underwritten Offering (including any block trade) pursuant to <u>Section</u> <u>2.2(c)</u> below if such Transferee acquires at least 5% but not more than 15% of the outstanding Shares and (C) such Transferee may initiate up to two Underwritten Offerings (including any block trade) pursuant to <u>Section</u> <u>2.2(c)</u> below if such Transferee acquires at least 15% of the outstanding Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Vistria Investor may initiate one Underwritten Offering (including a block trade and only so long as the Vistria Investor has not exercised a Demand Registration under <u>Section</u> <u>2.1</u>) pursuant to <u>Section</u> <u>2.2(c)</u> below; <u>provided</u>, that (A) no Underwritten Shelf Take-Down shall be deemed to have been exercised or to count against the number of Demand Registrations for the purposes of <u>Section</u> <u>2.1</u> if such Shelf Holder is not able to sell all of the Registrable Securities proposed to be sold therein as a result of the participation of any other Holder in any such Underwritten Shelf Take-Down and the application of <u>Section</u> <u>2.5(b)</u>; and (B) subject to <u>Section</u> <u>8.4</u>, the Vistria Investor may provide a Transferee with its Underwritten Shelf Take-Down right under this <u>Section</u> <u>2.2(b)(iii)</u> so long as the Vistria Investor Transfers at least 50% of the Shares that it holds as of the date of this Agreement (subject to <u>Section</u> <u>8.16</u>) to such Transferee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of clauses (ii) and (iii) of this <u>Section</u> <u>2.2(b)</u>, (A) in each case, the Registrable Securities proposed to be sold by the initiating Shelf Holder shall be required to (x) have a reasonably anticipated aggregate offering price of at least $25.0 million (before deduction of underwriting discounts and commissions) or (y) constitute all remaining Registrable Securities held by such Shelf Holder and (B) if the Company has previously effected a Shelf Take-Down that is an Underwritten Offering pursuant to this <u>Section</u> <u>2.2</u>, the Company shall not be required to effect an additional Shelf Take-Down that is an Underwritten Offering pursuant to this <u>Section</u> <u>2.2</u> until a period of 75 days shall have elapsed from the date of such prior Shelf Take-Down that was an Underwritten Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Underwritten Shelf Take-Downs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>Section</u> <u>2.2(b)</u>, if a Demand Holder that is a Shelf Holder (collectively, "<u>Investor Shelf Holders</u>") so elects in a written request delivered to the Company (an "<u>Underwritten Shelf Take-Down Notice</u>"), a Shelf Take-Down may be in the form of an Underwritten Offering (an "<u>Underwritten Shelf Take-Down</u>") and, if necessary, the Company shall use its reasonable best efforts to file and effect an amendment or supplement to its Shelf Registration Statement for such purpose as soon as practicable.

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Such initiating Investor Shelf Holder shall indicate in such Underwritten Shelf Take-Down Notice the number of Registrable Securities of such Investor Shelf Holder to be included in such Underwritten Shelf Take-Down and whether it intends for such Underwritten Shelf Take-Down to involve a customary "road show" (including an "electronic road show") or other marketing effort by the underwriters (a "<u>Marketed Underwritten Shelf Take-Down</u>"); <u>provided</u>, that any such Underwritten Shelf Take-Down requested by an Investor Shelf Holder shall be deemed to reduce the number of Demand Rights such Investor Shelf Holder is entitled to under <u>Section</u> <u>2.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly upon delivery of an Underwritten Shelf Take-Down Notice with respect to a Marketed Underwritten Shelf-Take Down (but in no event more than ten (10) days prior to the expected date of such Marketed Underwritten Shelf Take-Down), the Company shall promptly deliver a written notice of such Marketed Underwritten Shelf Take-Down to all Shelf Holders with Registrable Securities under such Shelf Registration Statement and, in each case, subject to <u>Section</u> <u>2.5(b)</u> and <u>Section</u> <u>2.7</u>, the Company shall include in such Marketed Underwritten Shelf Take-Down all such Registrable Securities of such Shelf Holders that are registered on such Shelf Registration Statement for which the Company has received written requests, which requests must specify the aggregate amount of such Registrable Securities of such Holder to be offered and sold pursuant to such Marketed Underwritten Shelf Take-Down, for inclusion therein at least three (3) Business Days prior to the expected date of such Marketed Underwritten Shelf Take-Down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to <u>Section</u> <u>2.2(b)</u>, if an Investor Shelf Holder desires to effect an Underwritten Shelf Take-Down that is not a Marketed Underwritten Shelf Take-Down (a "<u>Restricted Shelf Take-Down</u>"), the Investor Shelf Holder initiating such Restricted Shelf Take-Down shall provide written notice (a "<u>Restricted Shelf Take-Down Notice</u>") of such Restricted Shelf Take-Down to the other Shelf Holders as far in advance of the completion of such Restricted Shelf Take-Down as shall be reasonably practicable in light of the circumstances applicable to such Restricted Shelf Take-Down, which Restricted Shelf Take-Down Notice shall set forth (A) the total number of Registrable Securities expected to be offered and sold in such Restricted Shelf Take-Down, (B) the expected plan of distribution of such Restricted Shelf Take-Down and (C) an invitation to the other Shelf Holders to elect to include in the Restricted Shelf Take-Down Registrable Securities held by such other Shelf Holders (but subject to <u>Section</u> <u>2.5(b)</u> and <u>Section</u> <u>2.7</u>) and (D) the action or actions required (including the timing thereof) in connection with such Restricted Shelf Take-Down with respect to the other Investor Shelf Holders if any such Shelf Holder elects to exercise such right. Any Restricted Shelf Take-Down shall be (x) deemed to reduce the number of Demand Rights the initiating Investor Shelf Holder is entitled to under <u>Section</u> <u>2.1(a)</u>, (y) required to comply with a minimum size requirement equal to fifty percent (50%) of the minimum size requirements set forth in <u>Section</u> <u>2.2(b)</u> (unless the initiating Investor Shelf Holder requests the filing of a new Shelf Registration Statement in order to effect such Restricted Shelf Take-Down and at such time the Company is not eligible to use an Automatic Shelf Registration Statement, in which case the minimum size requirements set forth in <u>Section</u> <u>2.2(b)</u> shall apply), and (z) subject to the limits set forth in <u>Section</u> <u>2.2(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon delivery of a Restricted Shelf Take-Down Notice, the other Shelf Holders may elect to sell Registrable Securities in such Restricted Shelf Take-Down, at the same price per Registrable Security and pursuant to the same terms and conditions with respect to payment for the Registrable Securities as agreed to by the initiating Investor Shelf Holder, by sending an irrevocable written notice (a "<u>Take-Down Participation Notice</u>") to the initiating Investor Shelf Holder, indicating its election to participate in the Restricted Shelf Take-Down and the total number of its Registrable Securities to include in the Restricted Shelf Take-Down (but, in all cases, subject to <u>Section</u> <u>2.5(b)</u> and <u>Section</u> <u>2.7</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding the delivery of any Underwritten Shelf Take-Down Notice, all determinations as to whether to complete any Underwritten Shelf Take-Down and as to the timing, manner, price and other terms of any Underwritten Shelf Take-Down shall be at the discretion of the Investor Shelf Holder initiating the Underwritten Shelf Take-Down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Marketed Shelf Take-Downs</u>. If a Shelf Holder desires to effect a Shelf Take-Down that does not constitute an Underwritten Shelf Take-Down (a "<u>Non-Marketed Shelf Take-Down</u>"), such Shelf Holder shall so indicate in a written request delivered to the Company no later than three (3) Business Days prior to the expected date of such Non-Marketed Shelf Take-Down (or such shorter period as the Company may agree), which request shall include (i) the aggregate number and class or classes of Registrable Securities expected to be offered and sold in such Non-Marketed Shelf Take-Down, (ii) the expected plan of distribution of such Non-Marketed Shelf Take-Down and (iii) the action or actions required (including the timing thereof) in connection with such Non-Marketed Shelf Take-Down, and, if necessary, the Company shall use its reasonable best efforts to file and effect an amendment or supplement to its Shelf Registration Statement for such purpose as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Filing for Well-Known Seasoned Issuer</u>. Upon the Company becoming a Well-Known Seasoned Issuer, (x) the Company shall give written notice to the Apollo Investor and the Vistria Investor as promptly as practicable but in no event later than ten (10) Business Days thereafter and such notice shall describe, in reasonable detail, the basis on which the Company has become a Well-Known Seasoned Issuer, and (y) the Company shall, upon written request by the Apollo Investor or the Vistria Investor, as promptly as practicable, but in no event later than 20 Business Days after receiving such request, use its reasonable best efforts to register, under an Automatic Shelf Registration Statement, the sale of all of the Registrable Securities in accordance with the terms of this Agreement. The Company agrees that if any Holder beneficially owns any Registrable Securities three years after the filing of the most recent Automatic Shelf Registration Statement in compliance with this <u>Section</u> <u>2.2(e)</u>, the Company shall, if permitted under applicable rules of the Commission, file and cause to remain effective a new Automatic Shelf Registration Statement that registers the sale of any Registrable Securities that remain outstanding at such time. The Company shall give written notice of filing such Registration Statement to all of the Holders as promptly as practicable thereafter. At any time after the filing of an Automatic Shelf Registration Statement by the Company, if the Company is no longer a Well-Known Seasoned Issuer (the "<u>Determination Date</u>"), within ten (10) Business Days after such Determination Date, the Company shall (A) give written notice thereof to all of the Holders and (B) to the extent the Company continues to qualify for the use of Form S-3 promulgated under

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the Securities Act or any successor form thereto, the Company shall file, if necessary, a Short-Form Registration Statement (or a post-effective amendment converting the Automatic Shelf Registration Statement to a Short-Form Registration Statement) covering all of the Registrable Securities, and the Company shall use its reasonable best efforts to have such Short-Form Registration Statement declared effective as promptly as practicable after the date the Automatic Shelf Registration Statement is no longer useable by the Holders to sell their Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Continued Effectiveness</u>. The Company shall use its reasonable best efforts to keep the Shelf Registration Statement filed pursuant to <u>Section</u> <u>2.2(a)</u> or <u>Section</u> <u>2.2(e)</u> hereof, as applicable, continuously effective under the Securities Act in order to permit the Prospectus forming a part thereof to be usable by a Shelf Holder until the date as of which all Registrable Securities registered by such Shelf Registration Statement have been sold.

Section 2.3 <u>Deferral or Suspension of Registration</u>. If (a) the Company receives a Demand Notice, a request to file a Shelf Registration Statement, or a written request from a Shelf Holder for a Shelf Take-Down and the Board of Directors, in its good faith judgment, determines that it would be materially adverse to the Company for such Registration Statement to be filed or declared effective on or before the date such filing or effectiveness would otherwise be required hereunder, or for such Registration Statement or prospectus included therein to be used to sell Shares or for such Shelf Take-Down to be effected, because such action would: (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) conflict with any laws or regulations applicable to the Company in any material respect to the Company; (iii) based on the advice of the Company's outside counsel, require disclosure of material non-public information that the Company has a bona fide business purpose for preserving as confidential; or (iv) render the Company unable to comply with requirements under the Securities Act or the Exchange Act, or (b) the Company is subject to any of its customary suspension or blackout periods, for all or part of the period of such blackout period, or upon issuance by the Commission of a stop order suspending the effectiveness of any Registration Statement or the initiation of proceedings with respect to such Registration Statement under Section 8(d) or 8(e) of the Securities Act, then the Company shall have the right to defer such filing (but not the preparation), initial effectiveness or continued use of a Registration Statement and the prospectus included therein for a period of not more than 60 days (or such longer period as the Requesting Holder or Shelf Holder, as applicable, may determine). If the Company shall so postpone the filing or initial effectiveness of a Registration Statement with respect to a Demand Notice and if the Requesting Holder within 30 days after receipt of the notice of postponement advises the Company in writing that it has determined to withdraw such Demand Notice, then such Demand Registration shall be deemed to be withdrawn and shall not be deemed to be an exercise of one of the Demand Rights to which such Requesting Holder is entitled under <u>Section</u> <u>2.1</u>. Unless consented to in writing by the Holders, the Company shall not use the deferral or suspension rights provided under this <u>Section</u> <u>2.3</u> (x) more than twice in any 12-month period (except that the Company shall be able to use this right more than twice in any 12-month period if the Company is exercising such right during the 15-day period prior to the Company's regularly scheduled quarterly earnings announcement date and the total number of days of postponement in such 12-month period does not exceed 120 days) or (y) except as contemplated in the parenthetical in (x) immediately above, in the aggregate for more than 90 days in any 12-month period. In the event of any deferral or suspension pursuant to this <u>Section</u> <u>2.3</u>, the Company shall (i) use its reasonable best efforts to keep the Requesting Holder, if applicable, apprised of the estimated

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length of the anticipated delay; and (ii) notify the Requesting Holder or Shelf Holders, as applicable, promptly upon termination of the deferral or suspension. After the expiration of the deferral or suspension period and without any further request from the Requesting Holder or Shelf Holders, as applicable, to the extent such Requesting Holder has not withdrawn the Demand Notice, if applicable, the Company shall as promptly as reasonably practicable prepare and file a Registration Statement or post-effective amendment or supplement to the applicable Registration Statement or document, or file any other required document, as applicable, so that, as thereafter delivered to purchasers of the Registrable Securities included therein, the prospectus will not include a material misstatement or omission and will be effective and useable for the sale of Registrable Securities.

Section 2.4 <u>Effective Registration Statement</u>. A registration requested pursuant to this <u>Article</u> <u>II</u> shall not be deemed to have been effected:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) unless a registration statement with respect thereto has been declared effective by the Commission and remains effective in compliance with the provisions of the Securities Act and the laws of any U.S. state or other jurisdiction applicable to the disposition of Registrable Securities covered by such registration statement for not less than 180 days (or such shorter period as will terminate when all of such Registrable Securities shall have been disposed of in accordance with such registration statement) or, if such registration statement relates to an underwritten offering, such longer period as, in the opinion of counsel for the Company, a prospectus is required by law to be delivered in connection with sales of Registrable Securities by an underwriter or dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if, after it becomes effective, such registration is interfered with by any stop order, injunction or other order or requirement of the Commission or other governmental authority or court for any reason other than a violation of applicable law solely by any Selling Investor and has not thereafter become effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if, in the case of an Underwritten Offering, the conditions to closing specified in an underwriting agreement applicable to the Company are not satisfied or waived other than by reason of any breach or failure by any Selling Investor.

Section 2.5 <u>Selection of Underwriters</u><u>; Cutback</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Selection of Underwriters</u>. If a Requesting Holder intends to offer and sell the Registrable Securities covered by its request under this <u>Article</u> <u>II</u> by means of an Underwritten Offering, such Requesting Holder shall, in reasonable consultation with other participating Holders, select the managing underwriter or underwriters to administer such offering, which managing underwriter or underwriters shall be firms of nationally recognized standing and shall be reasonably acceptable to the Company. If an Investor Shelf Holder intends to offer and sell the Registrable Securities covered by its request under this <u>Article</u> <u>II</u> by means of an Underwritten Shelf Take-Down, the participating Investor Shelf Holders shall mutually select the managing underwriter or underwriters to administer such offering, which managing underwriter or underwriters shall be firms of nationally recognized standing and shall be reasonably acceptable to the Company. For the avoidance of doubt, nationally recognized investment banks shall be deemed reasonably acceptable for purposes of this <u>Section</u> <u>2.5</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Underwriter</u><u>'</u><u>s Cutback</u>. Notwithstanding any other provision of this <u>Article</u> <u>II</u> or <u>Section</u> <u>3.1</u>, if the managing underwriter or underwriters of an Underwritten Offering in connection with a Demand Registration or a Shelf Registration advise the Company in their good faith opinion that the inclusion of all such Registrable Securities proposed to be included in the Registration Statement or such Underwritten Offering would be reasonably likely to interfere with the successful marketing, including, but not limited to, the pricing, timing or distribution, of the Registrable Securities to be offered thereby or in such Underwritten Offering, and no Holder has delivered a Piggyback Notice with respect to such Underwritten Offering, then the number of Shares proposed to be included in such Registration Statement or Underwritten Offering shall be allocated among the Company, the Selling Investors and all other Persons selling Shares in such Underwritten Offering in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, the Registrable Securities of the class or classes proposed to be registered held by the Holder that initiated such Demand Registration, Shelf Registration or Underwritten Offering and the Registrable Securities of the same class or classes (or exercisable for or convertible into, at the Holder's option, such class or classes) held by other Holders requested to be included in such Demand Registration, Shelf Registration or Underwritten Offering (*pro rata* among the respective Holders of such Registrable Securities in proportion, as nearly as practicable, to the amounts of Registrable Securities requested to be included in such registration by each such Holder at the time of such Demand Registration, Shelf Registration or Underwritten Offering);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second,* all other securities of the same class or classes (or exercisable for or convertible into, at the holder's option, such class or classes) requested to be included in such Demand Registration, Shelf Registration or Underwritten Offering other than Shares to be sold by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third*, the Shares of the same class or classes to be sold by the Company.

No Registrable Securities excluded from the underwriting by reason of the underwriter's marketing limitation shall be included in such registration or offering. If the underwriter has not limited the number of Registrable Securities to be underwritten, the Company may include securities for its own account (or for the account of any other Persons) in such registration if the underwriter so agrees and if the number of Registrable Securities would not thereby be limited.

Section 2.6 <u>Lock-up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If requested by the managing underwriters in connection with any Underwritten Offering, each Holder (i) who beneficially owns 1% or more of the outstanding Shares or (ii) who is a natural person and serving as a director or executive officer of the Company shall agree to be bound by customary lock-up agreements providing that such Holder shall not, directly or indirectly, effect any Transfer (including sales pursuant to Rule 144) of any such Shares without prior written consent from the underwriters managing such Underwritten Offering during a period beginning on the date of launch of such Underwritten Offering and ending up to 90 days from and including the date of pricing or such shorter period as reasonably requested by the underwriters managing such Underwritten Offering (the "<u>Lock-Up Period</u>"); <u>provided</u> that (A) the

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foregoing shall not apply to any Shares that are offered for sale as part of such Underwritten Offering, (B) such Lock-Up Period shall be no longer than and on substantially the same terms as the lock-up period applicable to the Company and the executive officers and directors of the Company, and (C) such Lock-Up Period shall not commence unless the Company notifies the Holders in writing prior to the commencement of the Lock-Up Period. Each such Holder agrees to execute a customary lock-up agreement in favor of the underwriters to such effect. The provisions of this <u>Section</u> <u>2.6(a)</u> will no longer apply to a Holder if (x) such Holder ceases to hold any Shares or (y) except in the case of any Holder who is a current director or executive officer of the Company, such Holder beneficially owns less than 1% of the outstanding Shares. In addition, any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters in order to allow a Holder to participate in an offering contemplated by this Agreement shall apply pro rata to all Holders that are subject to such agreements, based on the number of Registrable Securities subject to such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing in <u>Section</u> <u>2.6(a)</u> shall prevent: (i) any Holder that is a partnership, limited liability company or corporation from (A) making a distribution of Shares to the partners, members or stockholders thereof or (B) Transferring Shares to an Affiliate of such Holder; (ii) any Holder who is an individual from Transferring Shares to (A) an individual by will or the laws of descent or distribution or by gift without consideration of any kind or (B) a trust or estate planning-related entity for the sole benefit of such Holder or a lineal descendant or antecedent or spouse; (iii) any Holder from (A) pledging, hypothecating or otherwise granting a security interest in Shares or securities convertible into or exchangeable for Shares to one or more lending institutions as collateral or security for any loan, advance or extension of credit and any transfer upon foreclosure upon such Shares or such securities or (B) Transferring Shares pursuant to a final non-appealable order of a court or regulatory agency or (iv) any Holder from Transferring Shares in a manner that was permitted under, but subject to the conditions described in, the lock-ups entered into in connection with the Company's initial public offering; <u>provided</u> that, in the case of clauses (i), (ii), (iii) and (iv), such Transfer is otherwise in compliance with applicable securities laws and; <u>provided</u>, <u>further</u>, that, in the case of clause (i), clause (ii) and, if applicable, clause (iv), each such Transferee agrees in writing to become subject to the terms of this Agreement by executing an Adoption Agreement and agrees to be bound by the applicable underwriter lock-up.

Section 2.7 <u>Participation in Underwritten Offering</u><u>; Information by Holder</u>. No Holder may participate in an Underwritten Offering hereunder unless such Holder (a) agrees to sell such Holder's Shares on the basis provided in any underwriting arrangements, and in accordance with the terms and provisions of this Agreement, including any lock-up arrangements, and (b) completes and executes all questionnaires, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements. In addition, the Holders shall furnish to the Company such information regarding such Holder or Holders and the distribution proposed by such Holders, as applicable, as the Company may reasonably request in writing and as shall be required in connection with any registration, qualification or compliance referred to in this <u>Article</u> <u>II</u>. Nothing in this <u>Section</u> <u>2.7</u> shall be construed to create any additional rights regarding the registration of Shares in any Person otherwise than as set forth herein. The Company will use its commercially reasonable efforts to ensure that no underwriter shall require any Holder to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Holder and such

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Holder's intended method of distribution, any representation required by law and any other customary representations, warranties and agreements and if, despite the Company's commercially reasonable efforts, an underwriter requires any Holder of to make additional representations or warranties to or agreements with such underwriter, such Holder may elect not to participate in such underwritten offering. Any liability of a Holder to any underwriter or other person pursuant to any applicable underwriting agreement shall be limited to liability arising from breach of its representations and warranties, shall be several, not joint and several, and shall be limited to the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to liability.

Section 2.8 <u>Registration Expenses</u>. All expenses incident to the Company's performance of or compliance with this Agreement, including without limitation (i) all registration and filing fees, and any other fees and expenses associated with filings required to be made with any stock exchange, the Commission and FINRA (including, if applicable, the fees and expenses of any "qualified independent underwriter" and its counsel as may be required by the rules and regulations of FINRA), (ii) all fees and expenses of compliance with state securities or blue sky laws (including fees and disbursements of counsel for the underwriters or Selling Investors in connection with blue sky qualifications of the Shares and determination of their eligibility for investment under the laws of such jurisdictions as the managing underwriters or the Demand Holders may designate), (iii) all printing and related messenger and delivery expenses (including expenses of printing certificates for the Shares in a form eligible for deposit with The Depository Trust Company and of printing prospectuses, all fees and disbursements of counsel for the Company and of all independent certified public accountants of the Company and its Subsidiaries (including the expenses of any special audit and "cold comfort" letters required by or incident to such performance)), (iv) all fees and expenses incurred in connection with the listing of the Shares on any securities exchange and all rating agency fees, (v) all reasonable and documented out-of-pocket fees and disbursements of the Selling Investors' Counsel, (vi) all fees and documented out-of-pocket disbursements of underwriters customarily paid by the issuer or sellers of securities, including liability insurance if the Company so desires or if the underwriters so require and expenses of any special experts retained in connection with the requested registration (excluding underwriting discounts and commissions and transfer taxes, if any, and fees and disbursements of counsel to underwriters (other than such fees and disbursements incurred in connection with any registration or qualification of Shares under the securities or blue sky laws of any state)), (vii) Securities Act liability insurance or similar insurance if the Company or the underwriters so require in accordance with then-customary underwriting practice, (viii) fees and expenses of other Persons retained by the Company, and the reasonable and documented fees and expenses of one legal counsel chosen by the Holders of a majority of the Registrable Securities included in such Demand Registration, Piggyback Registration or Shelf Registration, as applicable, and (ix) for any Demand Holder, any other reasonable expenses customarily paid by the issuers of securities, including reasonable and documented legal fees and expenses for such Demand Holder's legal counsel if other than the legal counsel selected by the Holders in (viii) above, will be borne by the Company, regardless of whether the Registration Statement becomes effective (or such offering is completed) and whether or not all or any portion of the Registrable Securities originally requested to be included in such registration are ultimately included in such registration; <u>provided</u>, <u>however</u>, that (x) any underwriting discounts, commissions or fees in connection with the sale of the Registrable Securities will be borne by the Holders pro rata on the basis of the number of Shares so registered and sold, (y) transfer taxes with respect to the sale of Registrable Securities will be borne by the Holder of such Registrable Securities and (z) the fees and expenses of any other counsel, accountants or other persons retained or employed by any Holder will be borne by such Holder.

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**ARTICLE III** 

**PIGGYBACK REGISTRATION** 

Section 3.1 <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Company at any time proposes for any reason to register the sale of a class or classes of Shares under the Securities Act (other than a registration on Form S-4 or Form S-8, or any successor of either such form, or a registration relating solely to the offer and sale to the Company's directors or employees pursuant to any employee stock plan or other employee benefit plan or arrangement) whether or not Shares are to be sold by the Company or otherwise, and whether or not in connection with any Demand Registration pursuant to <u>Section</u> <u>2.1</u>, any Shelf Registration pursuant to <u>Section</u> <u>2.2</u> or any other agreement (such registration, a "<u>Piggyback Registration</u>"), the Company shall give to each Holder holding Registrable Securities eligible to participate in such Piggyback Registration written notice of its intention to so register the Shares at least five (5) Business Days (or such shorter period as reasonably practical) prior to the expected date of filing of such Registration Statement or amendment thereto in which the Company first intends to identify the selling stockholders and the number of Registrable Securities to be sold (each such notice, an "<u>Initial Notice</u>"). The Company shall, subject to the provisions of <u>Section</u> <u>3.2</u> and <u>Section</u> <u>3.3</u> below, include in such Piggyback Registration on the same terms and conditions as the securities otherwise being sold, all Registrable Securities of the same class or classes as the Shares proposed to be registered (or exercisable for or convertible into, at the Holder's option, such class or classes) with respect to which the Company has received written requests from Holders for inclusion therein within the time period specified by the Company in the applicable Initial Notice, which time period shall be not less than ten (10) days after sending the applicable Initial Notice (each such written request, a "<u>Piggyback Notice</u>"), which Piggyback Notice shall specify the number of Shares proposed to be included in the Piggyback Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Holder does not deliver a Piggyback Notice within the period specified in <u>Section</u> <u>3.1(a)</u>, such Holder shall be deemed to have irrevocably waived any and all rights under this <u>Article</u> <u>III</u> with respect to such registration (but not with respect to future registrations in accordance with this <u>Article</u> <u>III</u>). For the avoidance of doubt, no Piggyback Registration shall count towards the number of Demand Registrations that a Demand Holder is entitled to make pursuant to <u>Section</u> <u>2.1</u> or Underwritten Shelf Take-Downs that an Investor Shelf Holder is entitled to make pursuant to <u>Section</u> <u>2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No registration effected under this <u>Section</u> <u>3.1</u> shall relieve the Company of its obligation to effect any registration upon request under <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u> hereof, and no registration effected pursuant to this <u>Section</u> <u>3.1</u> shall be deemed to have been effected pursuant to <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u> hereof. The Initial Notice, the Piggyback Notice and the contents thereof shall be kept confidential until the public filing of the Registration Statement.

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Section 3.2 <u>Underwriter</u><u>'</u><u>s Cutback</u>. If the managing underwriter of an Underwritten Offering (including an offering pursuant to <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u>) that includes a Piggyback Registration advises the Company that it is the managing underwriter's good faith opinion that the inclusion of all such Registrable Securities proposed to be included in the Registration Statement for such Underwritten Offering would be reasonably likely to interfere with the successful marketing, including, but not limited to, the pricing, timing or distribution, of the Registrable Securities to be offered thereby, then the number of Shares proposed to be included in such Underwritten Offering shall be allocated among the Company, the Selling Investors and all other Persons selling Shares in such Underwritten Offering in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Piggyback Registration referred to in <u>Section</u> <u>3.1</u> is initiated as an underwritten primary registration on behalf of the Company, then, with respect to each class proposed to be registered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, the Shares held by the Company of the class or classes proposed to be registered that the Company proposes to sell, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second*, all Registrable Securities of the same class or classes (or exercisable for or convertible into, at the Holder's option, such class or classes) held by Holders requested to be included in such Piggyback Registration (*pro rata* among the respective Holders of such Registrable Securities in proportion, as nearly as practicable, to the amounts of Registrable Securities requested to be included in such registration) by each such Holder at the time of such Piggyback Registration); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third*, all other securities of the same class or classes (or convertible at the holder's option into such class or classes) requested to be included in such Piggyback Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Piggyback Registration referred to in <u>Section</u> <u>3.1</u> is an underwritten secondary registration on behalf of any Holder, then, with respect to each class proposed to be registered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, the Registrable Securities of the class or classes proposed to be registered held by such Holder and the Registrable Securities of the same class or classes (or exercisable for or convertible into, at the Holder's option, such class or classes) held by other Holders requested to be included in such Piggyback Registration (*pro rata* among the respective Holders of such Registrable Securities in proportion, as nearly as practicable, to the amounts of Registrable Securities requested to be included in such registration by each such Holder at the time of such Piggyback Registration);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second,* all other securities of the same class or classes (or exercisable for or convertible into, at the Holder's option, such class or classes) requested to be included in such Piggyback Registration other than Shares to be sold by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third*, the Shares of the same class or classes to be sold by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Piggyback Registration referred to in <u>Section</u> <u>3.1</u> is an underwritten secondary registration on behalf of any holder of Common Stock other than a Holder, then, with respect to each class proposed to be registered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, the securities of the class or classes proposed to be registered held by such holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second*, the Registrable Securities of the same class or classes (or exercisable for or convertible into, at the Holder's option, such class or classes) held by Holders requested to be included in such Piggyback Registration (*pro rata* among the respective Holders of such Registrable Securities in proportion, as nearly as practicable, to the amounts of Registrable Securities requested to be included in such registration by each such Holder at the time of such Piggyback Registration);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third,* all other securities of the same class or classes (or convertible at the holder's option into such class or classes) requested to be included in such Piggyback Registration other than Shares to be sold by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *fourth*, the Shares of the same class or classes to be sold by the Company.

Section 3.3 <u>Company Control</u>. Except for a Registration Statement being filed in connection with the exercise of a Demand Right or a Shelf Registration, the Company may decline to file a Registration Statement after an Initial Notice has been given or after receipt by the Company of a Piggyback Notice, and the Company may withdraw a Registration Statement after filing and after such Initial Notice or Piggyback Notice, but prior to the effectiveness of the Registration Statement, <u>provided</u> that (i) the Company shall promptly notify the Selling Investors in writing of any such action and (ii) nothing in this <u>Section</u> <u>3.3</u> shall prejudice the right of any Demand Holder to immediately request that such registration be effected as a registration under <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u> to the extent permitted thereunder.

Section 3.4 <u>Selection of Underwriters</u>. If the Company intends to offer and sell Shares by means of an Underwritten Offering (other than an offering pursuant to <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u>), the Company shall select the managing underwriter or underwriters to administer such Underwritten Offering, which managing underwriter or underwriters shall be firms of nationally recognized standing.

Section 3.5 <u>Withdrawal of Registration</u>. Any Holder shall have the right to withdraw all or a part of its Piggyback Notice by giving written notice to the Company of such withdrawal at least five (5) Business Days prior to the earliest of (i) effectiveness of the applicable Registration Statement, (ii) the filing of any Registration Statement relating to such Piggyback Registration that includes a price range or (iii) commencement of a roadshow relating to the Registration Statement for such Piggyback Registration.

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**ARTICLE IV** 

**REGISTRATION PROCEDURES** 

Section 4.1 <u>Registration Procedures</u>. If and whenever the Company is under an obligation pursuant to the provisions of this Agreement to use its reasonable best efforts to effect the registration of any Registrable Securities, the Company shall, as expeditiously as practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of Registrable Securities, use its reasonable best efforts to cause a Registration Statement that registers such Registrable Securities to become and remain effective for a period of 180 days or, if earlier, until all of such Registrable Securities covered thereby have been disposed of; <u>provided</u>, that, in the case of any registration of Registrable Securities on a Shelf Registration Statement which are intended to be offered on a continuous or delayed basis, such 180-day period shall be extended, if necessary, to keep the registration statement continuously effective, supplemented and amended to the extent necessary to ensure that it is available for sales of such Registrable Securities, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, until the earlier of when (i) the Holders have sold all of such Registrable Securities, (ii) all of such Registrable Securities have become eligible for immediate sale pursuant to Rule 144 under the Securities Act by the Holder thereof without restriction by the manner of sale, volume and other limitations under such rule and (iii) in the case of an Automatic Shelf Registration Statement, such Automatic Shelf Registration Statement has been effective for three years (provided that the Company's obligations under this <u>Section</u> <u>4.1(a)</u> shall be renewed with respect to such Registrable Securities upon the filing of a new Automatic Shelf Registration Statement pursuant to <u>Section</u> <u>2.2(e)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) furnish to each Selling Investor, at least five (5) Business Days before filing a Registration Statement, or such shorter period as reasonably practical, copies of such Registration Statement or any amendments or supplements thereto, which documents shall be subject to the review, comment and approval by one lead counsel (and any reasonably necessary local counsel) selected by the Holders who beneficially own a majority of such Registrable Securities, which counsel (who may also be counsel to the Company), in each case, shall be subject to the reasonable approval of each Demand Holder whose Registrable Securities are included in such registration, and who shall represent all Selling Investors as a group (the "<u>Selling Investors</u><u>'</u> <u>Counsel</u>") (it being understood that such five (5) Business Day period need not apply to successive drafts of the same document proposed to be filed so long as such successive drafts are supplied to the Selling Investors' Counsel in advance of the proposed filing by a period of time that is customary and reasonable under the circumstances);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to each Selling Investor and each underwriter, if any, such number of copies of final conformed versions of the applicable registration statement and of each amendment and supplement thereto (in each case including all exhibits and any documents incorporated by reference) reasonably requested by such Selling Investor or underwriter in writing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the case of Registrable Securities, prepare and file with the Commission such amendments, including post-effective amendments, and supplements to such Registration Statement and the applicable prospectus or prospectus supplement, including any free writing prospectus as defined in Rule 405 under the Securities Act, used in connection therewith as may be (i) reasonably requested by any Holder (to the extent such request relates to information relating to such Holder), or (ii) necessary to keep such Registration Statement effective for at least the period specified in <u>Section</u> <u>4.1(a)</u> and to comply with the provisions of this Agreement and the Securities Act with respect to the sale or other disposition of such Registrable Securities, and furnish to each Selling Investor and to the managing underwriter(s), if any, within a reasonable period of time prior to the filing thereof a copy of any amendment or supplement to such registration statement or prospectus; <u>provided</u>, <u>however</u>, that, with respect to each free writing prospectus or other materials to be delivered to purchasers at the time of sale of the Registrable Securities, the Company shall (i) ensure that no Registrable Securities are sold "by means of" (as defined in Rule 159A(b) under the Securities Act) such free writing prospectus or other materials without the prior written consent of the sellers of the Registrable Securities, which free writing prospectus or other materials shall be subject to the review of counsel to such sellers and (ii) make all required filings of all free writing prospectuses or other materials with the Commission as are required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) notify in writing each Holder promptly (i) of the receipt by the Company of any notification with respect to any comments by the Commission with respect to such Registration Statement or any amendment or supplement thereto or any request by the Commission for the amending or supplementing thereof or for additional information with respect thereto, (ii) of the receipt by the Company of any notification with respect to the issuance by the Commission of any stop order suspending the effectiveness of such Registration Statement or any amendment or supplement thereto or the initiation or threatening of any proceeding for that purpose and (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification of such Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes and, in any such case as promptly as reasonably practicable thereafter, prepare and file an amendment or supplement to such registration statement or prospectus which will correct such statement or omission or effect such compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as the Holders reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holders to consummate their disposition in such jurisdictions; <u>provided</u>, <u>however</u>, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this <u>Section</u> <u>4.1(f)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) furnish to each Selling Investor such number of copies of a summary prospectus or other prospectus, including a preliminary prospectus and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents as such Selling Investors or any underwriter may reasonably request in writing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notify on a timely basis each Holder of such Registrable Securities at any time when a prospectus relating to such Registrable Securities is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and, at the request of such Holder, as soon as practicable prepare and furnish to such Holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the offeree of such securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) make available for inspection by the Selling Investors, the Selling Investors' Counsel or any underwriter participating in any disposition pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such Selling Investor or underwriter (collectively, the "<u>Inspectors</u>"), all pertinent financial and other records, pertinent corporate documents and properties of the Company (collectively, the "<u>Records</u>"), as shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information (together with the Records, the "<u>Information</u>") requested by any such Inspector in connection with such Registration Statement and request that the independent public accountants who have certified the Company's financial statements make themselves available, at reasonable times and for reasonable periods, to discuss the business of the Company. Any of the Information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, shall not be disclosed by the Inspectors unless (i) the disclosure of such Information is necessary to avoid or correct a misstatement or omission in the Registration Statement, (ii) the release of such Information is requested or required pursuant to a subpoena, order from a court of competent jurisdiction or other interrogatory by a governmental entity or similar process; (iii) such Information has been made generally available to the public; or (iv) such information is or becomes available to such Inspector on a non-confidential basis other than through the breach of an obligation of confidentiality (contractual or otherwise). The Holder(s) of Registrable Securities agree that they will, upon learning that disclosure of such Information is sought in a court of competent jurisdiction or by another governmental entity, give notice to the Company and allow the Company, at the Company's expense, to undertake appropriate action to prevent disclosure of the Information deemed confidential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in the case of an Underwritten Offering, deliver to the underwriters of such Underwritten Offering a "comfort" letter in customary form and at customary times and covering matters of the type customarily covered by such comfort letters from its independent certified public accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) in the case of an Underwritten Offering, deliver to the underwriters of such Underwritten Offering a written and signed legal opinion or opinions in customary form from its outside or in-house legal counsel dated the closing date of the Underwritten Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) provide a transfer agent and registrar (which may be the same entity and which may be the Company) for such Registrable Securities and deliver to such transfer agent and registrar such customary forms, legal opinions from its outside or in-house legal counsel, agreements and other documentation as such transfer agent and/or registrar so request;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) issue to any underwriter to which any Selling Investors may sell Registrable Securities in such offering certificates evidencing such Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) upon the request of any Holder of the Registrable Securities included in such registration, use reasonable best efforts to cause such Registrable Securities to be listed on any national securities exchange on which any Shares are listed or, if the Shares are not listed on a national securities exchange, use its reasonable best efforts to qualify such Registrable Securities for inclusion on such national securities exchange as the Company shall designate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission and make available to its security holders, as soon as reasonably practicable, earnings statements (which need not be audited) covering a period of 12 months beginning within three months after the effective date of the Registration Statement, which earnings statements shall satisfy the provisions of Section 11(a) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) notify the Holders and the lead underwriter or underwriters, if any, and (if requested) confirm such advice in writing, as promptly as reasonably practicable after notice thereof is received by the Company when the applicable registration statement or any amendment thereto has been filed or becomes effective and when the applicable prospectus or any amendment or supplement thereto has been filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) use its reasonable best efforts to prevent the entry of, and use its reasonable best efforts to obtain as promptly as reasonably practicable the withdrawal of, any stop order with respect to the applicable registration statement or other order suspending the use of any preliminary or final prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) promptly incorporate in a prospectus supplement or post-effective amendment to the applicable registration statement such information as the lead underwriter or underwriters, if any, and the Holders holding a majority of each class of Registrable Securities being sold agree (with respect to the relevant class) should be included therein relating to the plan of distribution with respect to such class of Registrable Securities; and make all required filings of such prospectus supplement or post-effective amendment as promptly as reasonably practicable after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) cooperate with each Holder and each underwriter or agent, if any, participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) provide a CUSIP number or numbers for all such shares, in each case not later than the effective date of the applicable registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) to the extent reasonably requested by the lead or managing underwriters in connection with an Underwritten Offering (including an Underwritten Offering pursuant to <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u>), send appropriate officers of the Company to attend any "road shows" scheduled in connection with any such Underwritten Offering, with all out of pocket costs and expenses incurred by the Company or such officers in connection with such attendance to be paid by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) enter into such agreements (including an underwriting agreement in customary form) and take such other actions as the Selling Investor or Selling Investors, as the case may be, owning at least a majority of the Registrable Securities covered by any applicable registration statement shall reasonably request in order to expedite or facilitate the disposition of such Registrable Securities, including customary indemnification and contribution to the effect and to the extent provided in <u>Article</u> <u>V</u> hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) subject to all the other provisions of this Agreement, use its reasonable best efforts to take all other steps necessary to effect the registration, marketing and sale of such Registrable Securities contemplated hereby.

**ARTICLE V** 

**INDEMNIFICATION** 

Section 5.1 <u>Indemnification by</u> <u>the Company</u>. The Company agrees to indemnify and hold harmless, to the full extent permitted by law, each Selling Investor, its Affiliates and their respective officers, directors, managers, partners, members and representatives, and each of their respective successors and assigns, against any losses, claims, damages, liabilities and expenses caused by any violation by the Company of the Securities Act or the Exchange Act applicable to the Company and relating to action or inaction required of the Company in connection with the registration contemplated by a Registration Statement or any untrue or alleged untrue statement of a material fact contained in any Registration Statement, prospectus, or preliminary prospectus or any amendment thereof or supplement thereto, or any other disclosure document (including reports and other documents filed under the Exchange Act and any document incorporated by reference therein) or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same was made in reliance on and in conformity with any information furnished in writing to the Company by such Selling Investor expressly for use therein; <u>provided</u>, <u>however</u>, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Registration Statement, prospectus, or preliminary prospectus or any amendment thereof or supplement thereto in reliance upon and in conformity with information furnished to the Company in writing by the Person asserting such loss, claim, damage, liability or expense specifically for use therein. The Company will also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers and directors and each Person who Controls such Persons to the same extent as provided above with respect to the indemnification of the Selling Investor, if requested.

Section 5.2 <u>Indemnification by Selling Investors</u>. Each Selling Investor agrees to indemnify and hold harmless, to the full extent permitted by law, the Company, the Company's Controlled Affiliates and their respective directors, managers, partners, members and representatives, and each of their respective successors and assigns, and each Person who Controls the Company against any losses, claims, damages or liabilities and expenses caused by any untrue or alleged untrue statement of a material fact contained in any Registration Statement, prospectus, or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make

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the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or omission was made in reliance on and in conformity with any information furnished in writing by such Selling Investor to the Company expressly for inclusion in such Registration Statement and has not been corrected in a subsequent writing prior to or concurrently with the sale of the Registrable Securities to the Person asserting such loss, claim, damage, liability or expense; <u>provided</u> that the obligation to indemnify shall be several, not joint and several, for each Selling Investor and in no event shall the liability of any Selling Investor hereunder be greater in amount than the dollar amount of the net proceeds received by such Selling Investor upon the sale of the Registrable Securities giving rise to such indemnification obligation.

Section 5.3 <u>Conduct of Indemnification Proceedings</u>. Any Person entitled to indemnification hereunder will (i) give prompt (but in any event within 30 days after such Person has actual knowledge of the facts constituting the basis for indemnification) written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; <u>provided</u>, <u>however</u>, that any delay or failure to so notify the indemnifying party shall relieve the indemnifying party of its obligations hereunder only to the extent, if at all, that it is prejudiced by reason of such delay or failure. Any Person entitled to indemnification hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (a) the indemnifying party has agreed in writing to pay such fees or expenses, (b) the indemnifying party shall have failed to assume the defense of such claim within a reasonable time after receipt of notice of such claim from the Person entitled to indemnification hereunder and employ counsel reasonably satisfactory to such Person, (c) the indemnified party has reasonably concluded, based on the advice of counsel, that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party or (d) in the reasonable judgment of any such Person, based upon advice of counsel, a conflict of interest may exist between such Person and the indemnifying party with respect to such claims (in which case, if such Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person). If such defense is not assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld, conditioned or delayed). No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action or claim in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes (i) an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action, (ii) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party and (iii) does not commit any indemnified party to take, or hold back from taking, any action. No indemnified party shall, without the written consent of the indemnifying party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder, and no indemnifying party shall be liable for any settlement or compromise of, or consent to the entry of judgment with respect to, any such action or claim effected without its consent, in each case which consent shall not be unreasonably withheld.

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Section 5.4 <u>Settlement Offers</u>. Whenever the indemnified party or the indemnifying party receives a firm offer to settle a claim for which indemnification is sought hereunder, it shall promptly notify the other of such offer. If the indemnifying party refuses to accept such offer within 20 Business Days after receipt of such offer (or of notice thereof), such claim shall continue to be contested and, if such claim is within the scope of the indemnifying party's indemnity contained herein, the indemnified party shall be indemnified pursuant to the terms hereof. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim in any one jurisdiction, unless in the written opinion of counsel to the indemnified party, reasonably satisfactory to the indemnifying party, use of one counsel would be expected to give rise to a conflict of interest between such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of one additional counsel.

Section 5.5 <u>Other Indemnification</u>. Indemnification similar to that specified in this <u>Article</u> <u>V</u> (with appropriate modifications) shall be given by the Company and each Selling Investor with respect to any required registration or other qualification of Registrable Securities under Federal or state law or regulation of governmental authority other than the Securities Act.

Section 5.6 <u>Contribution</u>. If for any reason the indemnification provided for in <u>Section</u> <u>5.1</u> or <u>Section</u> <u>5.2</u> is unavailable to an indemnified party or insufficient to hold it harmless as contemplated by <u>Section</u> <u>5.1</u> and <u>Section</u> <u>5.2</u>, then (i) the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and such prospective sellers, on the other hand, from their sale of the Registrable Securities, <u>provided</u> that, no Selling Investor shall be required to contribute in an amount greater than the dollar amount of the net proceeds received by such Selling Investor with respect to the sale of the Registrable Securities giving rise to such indemnification obligation. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities, or expenses (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or, except as provided in <u>Section</u> <u>5.3</u>, defending any such action or claim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders' obligations in this <u>Section</u> <u>5.6</u> to contribute shall be several in proportion to the amount of Registrable Securities registered by them and not joint.

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**ARTICLE VI** 

**EXCHANGE ACT COMPLIANCE** 

Section 6.1 <u>Exchange Act Compliance</u>. So long as the Company (a) has registered a class of securities under Section 12 or Section 15 of the Exchange Act and (b) files reports under Section 13 of the Exchange Act, then the Company shall take all actions reasonably necessary to enable Holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such rule may be amended from time to time or any similar rules or regulations adopted by the Commission, including, without limiting the generality of the foregoing, (i) making and keeping public information available, as those terms are understood and defined in Rule 144 promulgated under the Securities Act, (ii) filing with the Commission in a timely manner all reports and other documents required of the Company under the Exchange Act and (iii) at the request of any Holder if such Holder proposes to sell securities in compliance with Rule 144, forthwith furnish to such Holder, as applicable, a written statement of compliance with the reporting requirements of the Commission as set forth in Rule 144 and make available to such Holder such information as will enable the Holder to make sales pursuant to Rule 144.

**ARTICLE VII** 

**TERMINATION** 

Section 7.1 <u>Termination</u>. The registration rights hereunder shall cease to apply to any particular Registrable Security when: (a) a registration statement with respect to the sale of such Shares shall have become effective under the Securities Act and such Shares shall have been disposed of in accordance with such registration statement; (b) such Shares shall have been sold to the public pursuant to Rule 144 under the Securities Act (or any successor provision); (c) such Shares shall have been otherwise transferred, new certificates or book-entries for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution of them shall not require registration or qualification of them under the Securities Act or any similar state law then in force; (d) such Shares shall have ceased to be outstanding; or (e) the Holder of such Registrable Security holds less than one percent (1%) of the then issued and outstanding shares of Common Stock (determined as the aggregate number of Registrable Securities held by such Holder with all of its Affiliates), such Registrable Securities are eligible for sale pursuant to Rule 144 under the Securities Act (or any successor provision) without compliance with the manner of sale, volume and other limitations under such rule and the Holder of such securities is not subject to the provisions of <u>Section</u> <u>2.6</u> hereof. The Company shall promptly upon the request of any Holder furnish to such Holder evidence of the number of shares of Common Stock then outstanding.

**ARTICLE VIII** 

**MISCELLANEOUS** 

Section 8.1 <u>Severability</u>. If any provision of this Agreement is adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

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Section 8.2 <u>Governing Law; Jurisdiction; Waiver of Jury Trial</u>. This Agreement and any action of any kind or any nature (whether at law or in equity, based in contract or in tort or otherwise) that is any way related to this Agreement or any of the transactions related hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware applicable to contracts executed in and to be performed in that state without regard to the conflict of laws rules thereof. Each party to this Agreement (i) consents to submit to the exclusive jurisdiction of the Court of Chancery of the State of Delaware and any state appellate court therefrom located in the State of Delaware (or, only if the Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court sitting in Wilmington, Delaware), (ii) waives any objection to the laying of venue of any action related to the transactions contemplated by this Agreement brought in such court, (iii) waives and agrees not to plead or claim in any such court that any such action brought in any such court has been brought in an inconvenient forum and (iv) agrees that service of process or of any other papers upon such party by registered mail at the address to which notices are required to be sent to such party under <u>Section</u> <u>8.5</u> shall be deemed good, proper and effective service upon such party. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION PROCEEDING, CLAIM OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 8.3 <u>Other Registration Rights</u>. If the Company shall at any time hereafter provide to any holder of any securities of the Company rights with respect to the registration of such securities under the Securities Act, such rights shall not be in conflict with or adversely affect any of the rights provided to the holders of Registrable Securities in, or conflict (in a manner that adversely affects holders of Registrable Securities) with any other provisions included in, this Agreement.

Section 8.4 <u>Successors and Assigns</u>. Subject to <u>Section</u> <u>8.4</u>, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto, each of which, in the case of the Holders, shall agree to become subject to the terms of this Agreement by executing an Adoption Agreement and be bound to the same extent as the parties hereto. The Company may not assign any of its rights or delegate any of its duties hereunder without the prior written consent of the Holders of a majority of the Registrable Securities. Subject to <u>Section</u> <u>2.1(a)</u> and <u>Section</u> <u>2.2(b)</u>, each of the the Apollo Investor or the Vistria Investor may, at its election and at any time or from time to time, assign its rights and delegate its duties hereunder, in whole or in part, to any Transferee of such Holder (each, an "<u>Assignee</u>"); <u>provided</u>, that no such assignment shall be binding upon or obligate the Company to any such Assignee unless and until such Assignee delivers the Company an Adoption Agreement. If a Holder assigns its rights under this Agreement in connection with the Transfer of less than all of its Registrable Securities, the Holder shall retain its rights under this Agreement with respect to its remaining Registrable Securities. If a Holder assigns its rights under this Agreement in connection with the Transfer of all of its Registrable Securities, the Holder shall have no further rights or obligations under this Agreement, except under <u>Article</u> <u>V</u> hereof in respect of offerings in which such Holder participated or registrations in which Registrable Securities held by such Holder were included. Any purported assignment that is not expressly permitted by this provision shall be null and *void ab initio*.

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Section 8.5 <u>Notices</u>. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if delivered in writing in person, by electronic mail or facsimile or sent by nationally-recognized overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below or at such other address as may hereafter be designated in writing by such party to the other parties. All such notices, requests, consents and other communications shall be delivered as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Company to:

Phoenix Education Partners, Inc.

4035 S. Riverpoint Parkway

Phoenix, Arizona 85040

Attention: [•]

Email: [•]

with a copy (which shall not constitute notice) to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attention: Brian M. Janson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luke R. Jennings

Email: bjanson@paulweiss.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ljennings@paulweiss.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Apollo Investor to:

AP VIII Socrates Holdings, L.P.

c/o Apollo Global Management, Inc.

9 West 57th Street, 42nd Floor

New York, NY 10019

Attention: [•]

Email: [•]

with a copy, in each case, (which shall not constitute notice) to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attention: Brian M. Janson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luke R. Jennings

Email: bjanson@paulweiss.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ljennings@paulweiss.com

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If to the Vistria Investor to:

TVG-I-E-AEG HOLDINGS, LP

Vistria-AEG GP, LLC

c/o The Vistria Group, LP

300 E. Randolph St.

Suite 3850

Chicago, IL 60601

Attention: [•]

Email: [•]

with a copy (which shall not constitute notice) to:

Winston & Strawn LLP

35 W. Wacker Drive

Chicago, IL 60601-9703

Attention: Steven J. Gavin and Timothy D. Kincaid

Email: sgavin@winston.com; tkincaid@winston.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If to another Holder, to the address set forth under such Holder's name in <u>Schedule I</u> attached
hereto.

All such notices, requests, consents and other communications shall be deemed to have been received (i) in the case of personal delivery or delivery by facsimile or electronic mail, on the date of such delivery, (ii) in the case of dispatch by nationally recognized overnight courier, on the next Business Day following such dispatch and (iii) in the case of mailing, on the fifth (5<sup>th</sup>) Business Day after the posting thereof.

Section 8.6 <u>Headings</u>. The headings contained in this Agreement are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement.

Section 8.7 <u>Additional Parties</u>. Additional parties to this Agreement shall only include each Holder (a) who has executed an Adoption Agreement, in the form attached hereto as <u>Exhibit</u> <u>A</u>, or (b) who (i) is bound by and subject to the terms of this Agreement, and (ii) has adopted this Agreement with the same force and effect as if it were originally a party hereto. For the avoidance of doubt, the Company shall be entitled to add, pursuant to this <u>Section</u> <u>8.7</u>, any holder of Shares who came to own such Shares as a result of his, her or its equity interests of The University of Phoenix, Inc. (an indirect subsidiary of the Company) as an additional Holder in accordance with this <u>Section</u> <u>8.7</u>.

Section 8.8 <u>Adjustments</u>. If, and as often as, there are any changes in the Shares or securities convertible into or exchangeable into or exercisable for Shares as a result of any reclassification, recapitalization, stock split (including a reverse stock split) or subdivision or combination, exchange or readjustment of shares, or any stock dividend or stock distribution, merger or other similar transaction affecting such Shares or such securities, appropriate adjustment shall be made in the provisions of this Agreement, as may be required, so that the rights, privileges, duties and obligations hereunder shall continue with respect to such Shares or such securities as so changed.

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Section 8.9 <u>Entire Agreement</u>. This Agreement and the other writings referred to herein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such subject matter.

Section 8.10 <u>Counterparts; Facsimile or.pdf Signature</u>. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same document. This Agreement may be executed by facsimile or.pdf signature and a facsimile or.pdf signature shall constitute an original for all purposes.

Section 8.11 <u>Amendment</u>. Other than with respect to amendments to <u>Schedule</u> <u>I</u> attached hereto, which may be amended by the Company from time to time to reflect the Holders at such time, this Agreement may not be amended, modified or supplemented without the written consent of the Apollo Investor (as long as it owns Registrable Securities); <u>provided</u>, <u>however</u>, that, with respect to a particular Holder or group of Holders, any such amendment, supplement, modification or waiver that would materially and adversely affect such Holder or group of Holders in any respect relative to other Holders shall not be effective against such Holder or group of Holders unless approved in writing by such Holder or the Holders of a majority of the Registrable Securities held by such group of Holders, as the case may be.

Section 8.12 <u>Extensions; Waivers</u>. Any party may, for itself only, (a) extend the time for the performance of any of the obligations of any other party under this Agreement, (b) waive any inaccuracies in the representations and warranties of any other party contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions for the benefit of such party contained herein. Any extension or waiver pursuant to this <u>Section</u> <u>8.12</u> will be valid only if set forth in a writing signed by the party to be bound thereby. No waiver by any party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent such occurrence. Neither the failure nor any delay on the part of any party to exercise any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise of the same or of any other right or remedy.

Section 8.13 <u>Further Assurances</u>. Each of the parties hereto shall execute all such further instruments and documents and take all such further action as the Company may reasonably require in order to effectuate the terms and purposes of this Agreement.

Section 8.14 <u>No Third-Party Beneficiaries</u>. Except pursuant to <u>Article</u> <u>V</u>, this Agreement shall not confer any rights or remedies upon any Person other than the parties hereto and their respective successors and permitted assigns and other Persons expressly named herein.

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Section 8.15 <u>Interpretation; Construction</u>. This Agreement has been freely and fairly negotiated among the parties. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement. Any reference to any law will be deemed to refer to such law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words "include," "includes," and "including" will be deemed to be followed by "without limitation." Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words "this Agreement," "herein," "hereof," "hereby," "hereunder" and words of similar import refer to this Agreement as a whole, including the schedules, exhibits and annexes, as the same may from time to time be amended, modified or supplemented, and not to any particular subdivision unless expressly so limited. All references to sections, schedules, annexes and exhibits mean the sections of this Agreement and the schedules, annexes and exhibits attached to this Agreement, except where otherwise stated. The parties intend that each representation, warranty, and covenant contained herein will have independent significance. If any party has breached any covenant contained herein in any respect, the fact that there exists another covenant relating to the same subject matter (regardless of the relative levels of specificity) that the party has not breached will not detract from or mitigate the party's breach of the first covenant.

Section 8.16 <u>Changes in Common Stock</u>. If, and as often as, there are any changes in Common Stock by way of by way of a dividend, distribution, stock split or combination, reclassification, recapitalization, exchange or readjustment, whether in a merger, consolidation, conversion or similar transaction, or by any other means, appropriate adjustment shall be made in the provisions of this Agreement, as may be required, so that the rights, privileges, duties and obligations hereunder shall continue with respect to Common Stock as so changed.

\* \* \* \*

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

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| | |
|:---|:---|
| **<u>THE COMPANY</u>:** | **<u>THE COMPANY</u>:** |
| **PHOENIX EDUCATION PARTNERS, INC.** | **PHOENIX EDUCATION PARTNERS, INC.** |
| By: |  |
|  | Name: |
|  | Title: |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **<u>APOLLO INVESTOR</u>:** | **<u>APOLLO INVESTOR</u>:** |
| **AP VIII SOCRATES HOLDINGS, L.P.** | **AP VIII SOCRATES HOLDINGS, L.P.** |
| By: | QUESO GP, LLC |
|  | its general partner |
| By: |  |
|  | Name: |
|  | Title: |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **<u>VISTRIA INVESTOR</u>:** | **<u>VISTRIA INVESTOR</u>:** |
| **TVG-I-E-AEG HOLDINGS, LP** | **TVG-I-E-AEG HOLDINGS, LP** |
| By: | [•], |
|  | its [•] |
| By: |  |
|  | Name: |
|  | Title: |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **<u>OTHER HOLDERS</u>:** | **<u>OTHER HOLDERS</u>:** |
| By: |  |
|  | Name: [•] |
| By: |  |
|  | Name: [•] |
| By: |  |
|  | Name: [•] |

---

[*Signature Page to Registration Rights Agreement*]

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**EXHIBIT A** 

**ADOPTION AGREEMENT** 

This Adoption Agreement ("<u>Adoption Agreement</u>") is executed pursuant to the terms of the Registration Rights Agreement, dated as of [•], 2025, a copy of which is attached hereto (as amended, the "<u>Registration Rights Agreement</u>"), by the undersigned (the "<u>Undersigned</u>") executing this Adoption Agreement. Capitalized terms used herein without definition are defined in the Registration Rights Agreement and are used herein with the same meanings set forth therein. By the execution of this Adoption Agreement, the Undersigned agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Acknowledgment</u>. The Undersigned acknowledges that the Undersigned is acquiring or has acquired certain Shares, subject to the terms and conditions of the Registration Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Agreement</u>. The Undersigned (i) agrees that the Shares acquired by the Undersigned, and certain other Shares and other securities of the Company that may be acquired by the Undersigned in the future, shall be bound by and subject to the terms of the Registration Rights Agreement, pursuant to the terms thereof, and (ii) hereby adopts the Registration Rights Agreement with the same force and effect as if the undersigned were originally a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Notice</u>. Any notice required as permitted by the Registration Rights Agreement shall be given to the Undersigned at the address listed beside the Undersigned's signature below.

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| | |
|:---|:---|
| [NAME OF HOLDER] | <u>Address for Notices</u>: |
| By: | [•] |
| Name: | [•] |
| Title: | Telephone: [•] |
| Date: | Email: [•] |

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**SCHEDULE I** 

**List of Holders** 

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| | | |
|:---|:---|:---|
| **Name** | **Address for Notice** | **Shares** |
| Apollo Investor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AP VIII SOCRATES HOLDINGS, L.P.<br> c/o Apollo Global Management, Inc. <br>9 West 57th Street, 42nd Floor <br>New York, NY 10019 <br>Attention: [•]<br>Email: [•]<br>with a copy (which shall not constitute notice) to:<br>Paul, Weiss, Rifkind, Wharton & Garrison LLP<br> 1285 Avenue of the Americas<br> New York, NY 10019-6064<br> Attention: Brian M. Janson<br> Luke R. Jennings<br> Email: bjanson@paulweiss.com<br> ljennings@paulweiss.com | [•] Shares |
| Vistria Investor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TVG-I-E-AEG HOLDINGS, LP<br> Vistria-AEG GP, LLC<br> c/o The Vistria Group, LP<br> 300 E. Randolph St.<br> Suite 4030<br> Chicago, IL 60601<br> Attention: [•]<br> Email: [•]<br>with a copy (which shall not constitute notice) to:<br>Winston & Strawn LLP<br> 35 W. Wacker Drive<br> Chicago, IL 60601-9703<br> Attention: Steven J. Gavin and Timothy D.<br> Kincaid<br> Email: sgavin@winston.com;<br> tkincaid@winston.com | [•] Shares |
| [•] | [•]<br> Attention: [•]<br> Email: [•]<br>with a copy to (which shall not constitute notice):<br>[•]<br> Attention: [•]<br> Email: [•] | [•] Shares |

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## Exhibit 10.3

**Exhibit 10.3** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**AMENDED & RESTATED** 

**STOCKHOLDERS' AGREEMENT** 

Dated as of [•], 2025

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| | | **Page** |
|  Section 1. | Definitions | 1 |
|  Section 2. | [RESERVED] | 5 |
|  Section 3. | [RESERVED] | 5 |
|  Section 4. | [RESERVED] | 5 |
|  Section 5. | [RESERVED] | 5 |
|  Section 6. | Election of Trustees; Certain Waivers | 5 |
|  Section 7. | Certain Treatment of Company Common Stock | 6 |
|  Section 8. | Restriction on Transfer | 7 |
|  Section 9. | Notices | 8 |
|  Section 10. | [RESERVED] | 8 |
|  Section 11. | [RESERVED] | 8 |
|  Section 12. | Piggyback Registration Rights | 8 |
|  Section 13. | [RESERVED] | 8 |
|  Section 14. | Confidentiality | 8 |
|  Section 15. | Distributions in Connection with Merger; Cooperation with Merger, Reorganization and SEC Filings | 9 |
|  Section 16. | Representations and Warranties | 10 |
|  Section 17. | Miscellaneous Provisions | 10 |

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i

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This **AMENDED & RESTATED STOCKHOLDERS' AGREEMENT** is made as of [•], 2025 (this "<u>Agreement</u>"), by and among **THE UNIVERSITY OF PHOENIX, INC.**, an Arizona corporation (the "<u>Company</u>"), **PHOENIX EDUCATION OPERATING CORP.**, an Arizona corporation ("<u>Parent</u>"), and **PHOENIX EDUCATION PARTNERS, INC.**, a Delaware corporation ("<u>Holdco</u>").

**WHEREAS,** the Company, Parent and Holdco are parties to that certain Stockholders' Agreement of the Company, dated as of September 21, 2017 (the "<u>Original Agreement</u>");

**WHEREAS**, Parent deems it to be in the best interest of the Company and Parent that provision be made for the continuity and stability of the business and policies of the Company;

**WHEREAS,** pursuant to Section 17.3 of the Original Agreement, the Original Agreement may be amended or waived from time to time by an instrument in writing signed by the Company and Parent; and

**WHEREAS,** in connection with the consummation of an initial public offering of the securities of Holdco on or about the date hereof (the "<u>IPO</u>"), the Company and Parent desire to amend and restate the Original Agreement as more fully set forth herein, including to reflect the exchange by certain Holders of Company Common Stock for Holdco Common Stock.

**NOW, THEREFORE**, in consideration of the premises and of the mutual consents and obligations hereinafter set forth, the parties hereto hereby agree to amend and restate the Original Agreement in its entirety as follows:

Section 1. Definitions.

As used in this Agreement:

"<u>Adoption Agreement</u>" means an Adoption Agreement in the form attached as Exhibit A to the Original Agreement (or such other form that was satisfactory to Parent).

"<u>Affiliate</u>" of the Company, Parent, Holdco, a Sponsor or any other Person (other than a Holder) means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company, Parent, Holdco, a Sponsor or such other Person (other than a Holder), as applicable. As used in this definition, the term "control," including the correlative terms "controlling," "controlled by" and "under common control with," means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person. Notwithstanding the foregoing, except with respect to <u>Sections 17.19</u>, <u>17.20</u> and <u>17.22</u>, and the definition of "Control Disposition", (a) Holdco and its Subsidiaries and their respective joint ventures shall not be considered Affiliates of the Sponsors or their respective Affiliates (excluding, for the avoidance of doubt, Holdco and its Subsidiaries) and (b) no Sponsor shall be considered an Affiliate of (i) any portfolio company in which such Sponsor or its Affiliates has made a debt or equity investment (and vice versa), (ii) any limited partners, non-managing members or other similar direct or indirect investors in any of such Sponsor, such Sponsor's investment fund Affiliates or alternative investment vehicle or (iii) any portfolio company in which any limited partner, non-managing member of, or other similar direct or indirect investor in a Sponsor or such Sponsor's Affiliates have made a debt or equity investment (or vice versa), and none of the Persons described in clauses (i) through (iii) of this definition shall be considered an Affiliate of each other. Without giving effect to the exception set forth in the beginning of the immediately preceding sentence, no Holder shall be considered an Affiliate of any Person described in clauses (a) or (b) of the immediately preceding sentence (and vice versa). Notwithstanding anything to the contrary herein, to the

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extent that AGS would be considered an "Affiliate" of a Sponsor or any of their respective Affiliates, AGS shall not be considered such an "Affiliate" of such Sponsor or any of its respective Affiliates when AGS acts as a broker-dealer, underwriter, placement agent, initial purchaser, arranger or lender or in any similar role in the ordinary course of its business.

"<u>Affiliate</u>" of a Holder means: (a) the spouse and lineal descendants (including children by adoption and step-children) of the Applicable Employee for an individual Holder, and in any such case, any trust formed in connection with the bona fide estate planning activities of the Applicable Employee for such Holder: (i) the beneficiaries of which may include only the Applicable Employee for such Holder, and the spouse and lineal descendants (including children by adoption and step-children) of the Applicable Employee and (ii) with respect to which such Applicable Employee is the sole trustee or custodian, (b) any limited liability company or partnership: (i) with respect to which at least eighty percent (80%) of the outstanding equity interests are beneficially owned by the Applicable Employee for such Holder, or the spouse and lineal descendants (including children by adoption and step-children) of the Applicable Employee, (ii) with respect to which the Applicable Employee, or the spouse and lineal descendants (including children by adoption and step-children) of such Applicable Employee, is the sole manager or managing member or general partner, as the case may be, and otherwise has the sole power to direct or cause the direction of management and policies of such limited liability company or partnership, whether through the ownership of voting securities, by contract or otherwise and (iii) which is not formed for the purpose of circumventing the requirements of the transfer restrictions set forth in this Agreement.

"<u>AGS</u>" means Apollo Global Securities, LLC, a Delaware limited liability company.

"<u>Applicable Employee</u>" means (a) with respect to any Holder that is or was an employee, officer, director, consultant or trustee of the Company or its Subsidiaries, such employee, officer, director, consultant or trustee and (b) with respect to any Holder that is not and was not an employee, officer, director, consultant or trustee of the Company or any of its Subsidiaries, the current or former employee, officer, director, consultant or trustee of the Company or its Subsidiaries with respect to whom such Holder received Company Common Stock in accordance with and subject to the terms and conditions of this Agreement or pursuant to an Award that was issued to such current or former employee, officer, director, consultant or trustee of the Company or its Subsidiaries. Notwithstanding the foregoing, in no event shall any Sponsor Director be deemed an Applicable Employee for purposes of this Agreement.

"<u>Award</u>" means an award of Options, restricted stock or restricted stock units granted pursuant to the Company's Management Equity Plan, or any other equity plan approved by the Company.

"<u>Award Shares</u>" means shares of Company Common Stock issued pursuant to an Award.

"<u>Board of Trustees</u>" means the Board of Trustees of the Company and any duly authorized committee thereof. All determinations by the Board of Trustees required pursuant to the terms of this Agreement to be made by the Board of Trustees shall be binding and conclusive.

"<u>Company Common Stock</u>" means: (a) all shares of the voting or non-voting common stock of the Company owned by any Person, and (b) all securities of the Company or any other Person that any Person acquires in respect of his, her or its Company Common Stock in connection with any exchange, merger, conversion, reclassification, recapitalization, consolidation, reorganization or other transaction involving the Company or its securities. All references herein to Company Common Stock owned by a Holder include the community interest or similar marital property interest, if any, of the spouse of such Holder in such Company Common Stock. The term "common stock" means any stock of any class of the Company which has no preference over any other class of Equity Securities of the Company in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject by the terms of the Company's Articles of Incorporation to redemption by the Company (whether or not shares of such class have voting rights).

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"<u>Control Disposition</u>" means a Disposition, (a) following which, a Person or Group other than Socrates and its Affiliates becomes the beneficial owner, directly or indirectly, of 35% or more of the combined voting power of the Company's outstanding securities, and such combined voting power beneficially owned is greater than the percentage of the combined voting power of the Company's outstanding securities beneficially owned, directly or indirectly, by the Socrates and its Affiliates; or (b) that would have the effect of transferring all or substantially all of the assets of the Company to a Person or Group that is not an Affiliate of Socrates; <u>provided</u>, <u>however</u>, that an initial public offering or a merger or other acquisition or combination transaction after which the Socrates and its Affiliates retain control or shared control of the Company, or have otherwise not sold or disposed of more than 50% of its investment in the Company as of the date hereof in exchange for cash or marketable securities, shall not be a Control Disposition.

"<u>Disposition</u>" means any transaction or series of related transactions resulting in direct or indirect transfer, assignment, sale, gift, pledge, hypothecation or other encumbrance, or any other disposition, whether by merger, consolidation or otherwise, of Company Common Stock, Parent Common Stock or Holdco Common Stock (or any interest therein or right thereto), as applicable, or of all or part of the voting power (other than the granting of a revocable proxy) associated with the Company Common Stock, Parent Common Stock or Holdco Interests (or any interest therein) whatsoever, as applicable, or any other transfer of legal, economic or beneficial ownership of Company Common Stock, Parent Common Stock or Holdco Interests or any interest therein, as applicable, whether voluntary or involuntary, including (a) as a part of any liquidation of a Holder's assets or (b) as a part of any reorganization of a Holder pursuant to the United States or other bankruptcy law or other similar debtor relief laws; <u>provided</u>, <u>however</u>, in no event shall (i) any direct or indirect transfer, assignment, sale, gift, pledge, hypothecation or other encumbrance, or any other disposition, whether by merger, consolidation or otherwise, of any Equity Securities of a Sponsor or any of their respective current or prospective direct or indirect members, stockholders, partners or other equity holders (as applicable) or (ii) any transfer, exchange, merger, conversion, reclassification, recapitalization, consolidation, reorganization or other similar action or transaction involving Apollo Global Inc. or any of its Subsidiaries be considered a "Disposition" hereunder. The terms "<u>Dispose</u>" or "<u>Disposed</u>" shall have correlative meanings.

"<u>Equity Securities</u>" has the meaning ascribed to such term in Rule 405 promulgated under the Securities Act as in effect on the date hereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934.

"<u>Group</u>" has the meaning ascribed thereto in Section 13(d)(3) of the Exchange Act.

"<u>Holdco</u>" means Phoenix Education Partners, Inc. or any successor thereof.

"<u>Holdco Common Stock</u>" means the "Common Stock" of Holdco as set forth in the Certificate of Incorporation of Holdco, as amended and/or restated from time to time.

"<u>Holders</u>" means Persons who from time to time executed an Adoption Agreement prior to the date hereof and hold securities of the Company, other than the Company and Parent.

"<u>IPO Issuer</u>" means the Company or an Affiliate of the Company (including, for the avoidance of doubt, Parent, Holdco or an Affiliate thereof) that will be a successor to the Company or such Affiliate and the issuer in an initial public offering.

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"<u>Management Equity Plan</u>" means the University of Phoenix, Inc. Management Equity Plan, as amended from time to time.

"<u>New Equity Securities</u>" has the meaning ascribed to such term in <u>Section</u> <u>15.2</u>.

"<u>Newco</u>" has the meaning ascribed to such term in <u>Section</u> <u>15.2</u>.

"<u>Option</u>" means the options to purchase or acquire Company Common Stock issued to Applicable Employees pursuant to the Company's Management Equity Plan, or any other equity plan approved by the Board of Trustees.

"<u>Parent Common Stock</u>" means: (a) all shares of the voting or non-voting common stock of Parent owned by any Person and (b) all common stock of Parent or any other Person that any Person acquires in respect of his, her or its Parent Common Stock in connection with any exchange, merger, conversion, reclassification, recapitalization, consolidation, reorganization or other transaction involving Parent or its securities. All references herein to Parent Common Stock owned by a Holder include the community interest or similar marital property interest, if any, of the spouse of such Holder in such Parent Common Stock. The term "common stock" means any stock of any class of Parent which has no preference over any other class of Equity Securities of Parent in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of Parent and which is not subject by the terms of Parent's Articles of Incorporation to redemption by Parent (whether or not shares of such class have voting rights).

"<u>Person</u>" shall be construed broadly and shall include an individual, a partnership (general or limited), a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department agency or political subdivision thereof.

"<u>Registration Rights Agreement</u>" means that certain Registration Rights Agreement, dated as of the date hereof, among Holdco and the holders party thereto.

"<u>Reorganization</u>" has the meaning ascribed to such term in <u>Section</u> <u>15.2</u>.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Socrates</u>" means AP VIII Socrates Holdings, L.P. or any successor thereof.

"<u>Sponsor</u>" means, as of a given date, (i) Socrates, (ii) TVG-I-E-AEG Holdings, LP or (iii) any Affiliate of Apollo Management VIII, L.P. or The Vistria Group, LP to whom securities of the Company are Disposed or that otherwise acquires record or beneficial ownership of the Company, Parent or Holdco.

"<u>Sponsor Director</u>" means any trustee or director, as the case may be, of the Company or its Affiliates who is also a general partner, partner, managing director, manager, officer, director, principal or employee of any of the Sponsors and their Affiliates.

"<u>Subsidiary</u>" means each Person in which another Person owns or controls, directly or indirectly, capital stock or other equity interests representing more than 50% in voting power of the outstanding capital stock or other equity interests.

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"<u>Underwriters Lock-Up Period</u>" has the meaning ascribed to such term in <u>Section</u> <u>17.17</u>.

"<u>Voting Securities</u>" means the Company Common Stock (or, if applicable, Parent Common Stock or Holdco Common Stock, as applicable, based upon an exchange of Company Common Stock for Parent Common Stock or Holdco Common Stock, as applicable, as provided in <u>Section</u> <u>7.3</u>) and any other securities of the Company or any Subsidiary of the Company entitled to vote generally in the election of members of the Board of Trustees or any successor body or other board of directors under Title 10 of the Arizona Revised Statutes or the Company's Articles of Incorporation).

Section 2. <u>[RESERVED]</u>.

Section 3. <u>[RESERVED]</u>.

Section 4. <u>[RESERVED]</u>.

Section 5. <u>[RESERVED]</u>.

Section 6. <u>Election of Trustees; Certain Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Agreements with Respect to Election of Trustees</u>. Each Holder, as a holder of Voting Securities, hereby agrees on behalf of itself and any transferee or assignee of any such Voting Securities, to hold all of the Voting Securities held of record by such Holder or beneficially owned by such Holder by virtue of having voting power over such Voting Securities, and any other Voting Securities subsequently acquired by such Holder in the future (including any Voting Securities issued with respect to, upon conversion of, or in exchange or substitution for shares of Company Common Stock), and to vote such Voting Securities at any regular or special meeting of the stockholders (or by written consent) (a) so as to cause to be elected to the Board of Trustees and to continue in office, at any given time, (i) the candidates for Independent Trustees nominated in accordance with the Bylaws of the Company and (ii) the candidates for Other Trustees nominated by Parent (or nominated by the Board of Trustees or a committee appointed by the Board of Trustees for such purposes if such candidate is supported by Parent) and (b) subject to Section 2.2(f) of the Bylaws of the Company, in favor of the removal of any member of the Board of Trustees in the event Parent is voting in favor of such removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Irrevocable Proxy</u>. Solely for purposes of this <u>Section</u> <u>6</u>, and in order to secure the performance of each Holder's obligations under this <u>Section</u> <u>6</u>, each Holder hereby irrevocably and unconditionally appoints Parent, as the attorney-in-fact and proxy of such Holder (with full power of substitution and re-substitution) to vote (if applicable), provide a written consent (if applicable), or take any other action required to be taken by a Holder with respect to such Holder's Voting Securities so as to vote such Voting Securities in accordance with this Agreement, and Parent shall have, and is hereby granted, a proxy and power of attorney to vote, provide a written consent or take any other action with respect to each such Holder's Voting Securities for purposes of taking the actions required by this <u>Section</u> <u>6</u>. Each Holder agrees that this proxy and power of attorney is given as a condition to this Agreement and intends this irrevocable and unconditional proxy and power of attorney to be, and it shall be, irrevocable and coupled with an interest, and each Holder shall take further action and execute such other instruments as may be necessary to effectuate the intent of this proxy and power of attorney and hereby revoke any proxy and power of attorney previously granted by it with respect to the matters set forth in this <u>Section</u> <u>6</u>. The irrevocable and unconditional proxy and power of attorney granted hereby is intended to be, and is, attached to the Company Common Stock and any other Voting Securities acquired by such Holder, shall be deemed to have been delivered by a Holder to the Secretary of the Company upon execution of this Agreement, a joinder or Adoption Agreement (as applicable) by such Holder, and shall have a term valid for, and shall survive for, the duration of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Certain Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder hereby waives in accordance with Section 4.1(d) of the Bylaws of the Company written notice of any annual or special meeting of shareholders of the Company (including any adjourned meeting) and acknowledges that such Holder shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by Title 10 of the Arizona Revised Statutes, each Holder hereby waives any rights it may have to receive notice of the taking of a corporate action without a meeting pursuant to subsection H of Section 10-704 of the Arizona Revised Statutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by Title 10 of the Arizona Revised Statutes, each Holder hereby waives its rights to inspect and copy the records of the Company pursuant to Section 10-602 of the Arizona Revised Statutes, and agrees, for the duration of this Agreement, not to make any demand with respect to such rights of inspection.

Section 7. <u>Certain Treatment of Company Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Conversion, Exchange or Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of any exercise of restructuring or reorganization of Holdco or any of its Subsidiaries, if necessary or desirable in connection with such transaction (as determined, in each case, by Parent in its sole discretion), the Company, Parent, and all Holders shall, and Parent shall cause Holdco, the Sponsors and their respective Affiliates to, cause the Company Common Stock held by all Holders to be converted, redeemed or exchanged for Parent Common Stock or Holdco Common Stock of the same class or type held by the Sponsors, as applicable, in an exchange ratio to be determined by the Board of Directors of Parent in good faith, which exchange ratio shall reflect, the equivalent economic rights of the Holders as in effect immediately prior to such conversion, redemption or exchange without any minority discount. For the sake of clarity, the Fair Market Value of the payments or securities received in such conversion, redemption or exchange shall be equal to the Fair Market Value of the securities exchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in the foregoing, if a conversion, redemption or exchange of the Company Common Stock held by the Holders pursuant to this <u>Section</u> <u>7.3</u> is in connection with the transactions described in <u>Section</u> <u>7.3(a)</u> above, (i) the Holders shall have substantially equivalent economic, preemptive (to the extent applicable) and transfer rights, and other rights and obligations, as set forth in this Agreement as in effect immediately prior to such conversion, redemption or exchange and (ii) the Holders, Parent, Holdco shall, or shall cause their respective Affiliates to, as applicable, shall enter into a stockholders' agreement or similar agreement with respect to the shares of Parent Common Stock or Holdco Common Stock received by the Holders in connection with such conversion, exchange or redemption with terms that are substantially equivalent (to the extent practicable) to, *mutatis mutandis*, the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent, Holdco and each Holder, shall cooperate in good faith to effect such conversion, redemption or exchange in an efficient manner, including with respect to any regulatory or other requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Automatic Exchange of Company Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions set forth herein, and in reliance upon the mutual representations and warranties set forth herein, on the date hereof, each Holder automatically (without a need for any further action on the part of such Holder or any other Person) exchanges, and shall be deemed to have surrendered and exchanged, all of its rights, title and interest in, to it each share of Company Common Stock that he, she or it holds for, subject to the requirements set forth in <u>Section</u> <u>7.4(b)</u>, [•] shares of Holdco Common Stock (such exchange, the "<u>Exchange</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the Exchange, each Holder shall complete, execute and deliver to the Company lock-up agreements and other documents as may be required by the managing underwriters of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Power of Attorney</u>. Solely for purposes of this <u>Section</u> <u>7</u>, and in order to secure the performance of each Holder's obligations under this <u>Section</u> <u>7</u>, each Holder hereby irrevocably and unconditionally appoints Parent as the attorney-in-fact and proxy of such Holder (with full power of substitution and re-substitution) to vote (if applicable), provide a written consent (if applicable), or take any other action with respect to such Holder's Company Common Stock and Award Shares in connection with any proposed transaction contemplated by <u>Section</u> <u>7.3</u> or <u>Section</u> <u>7.4</u> and Parent shall have, and is hereby granted, a proxy and power of attorney to vote, provide a written consent or take any other action with respect to each such Holder's Company Common Stock and Award Shares for purposes of taking the actions contemplated by <u>Section</u> <u>7.3</u> or <u>Section</u> <u>7.4</u>. Each Holder agrees that this proxy and power of attorney is given as a condition to this Agreement and intends this irrevocable and unconditional proxy to be, and it shall be, irrevocable and coupled with an interest, and each Holder shall take further action and execute such other instruments as may be necessary to effectuate the intent of this proxy and power of attorney and hereby revoke any proxy and power of attorney previously granted by it with respect to the matters set forth in this <u>Section</u> <u>7</u>. The irrevocable and unconditional proxy and power of attorney granted hereby is intended to be, and is, attached to the Company Common Stock, shall be deemed to have been delivered by a Holder to the Secretary of the Company upon execution of this Agreement, a joinder or Adoption Agreement (as applicable) by such Holder, and shall have a term valid for, and shall survive for, the duration of this Agreement.

Section 8. <u>Restriction on Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Each Holder acknowledges that no Holdco Common Stock may be transferred except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration under the Securities Act and applicable local law. Each Holder agrees that he, she or it will not make any Disposition at any time if such action would or would reasonably be likely to constitute a violation of any securities laws of any applicable jurisdiction or a breach of the conditions to any exemption from registration of Holdco Common Stock under any such laws or a breach of any undertaking or agreement of such Holder entered into pursuant to such laws or in connection with obtaining an exemption thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Restrictive Legend</u>. Each certificate (or book-entry interest), if any, representing Holdco Common Stock shall be stamped or otherwise imprinted with a legend in substantially the following form, with such additions and or changes as Holdco may reasonably determine (in its sole discretion) are warranted based on the circumstances:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR LAWS."

Section 9. <u>Notices</u>.

In the event that a notice or other document is required to be sent hereunder to the Company, Parent or any Holder or the spouse or legal representative of a Holder, such notice or other document, if sent by mail, shall be sent by registered mail, return receipt requested (and by air mail in the event that the addressee is not in the continental United States), to the party entitled to receive such notice or other document at the address set forth on <u>Annex I</u> hereto. Any such notice shall be effective and deemed received three (3) days after proper deposit in the mail, but actual notice shall be effective however and whenever received. The Company, Parent or any Holder or spouse or their respective legal representatives may effect a change of address for purposes of this Agreement by giving notice of such change to the Company, and the Company shall, upon the request of any party hereto, notify such party of such change in the manner provided herein. Until such notice of change of address is properly given, the addresses set forth on <u>Annex I</u> hereto shall be effective for all purposes.

Section 10. <u>[RESERVED]</u>.

Section 11. <u>[RESERVED]</u>.

Section 12. <u>Piggyback Registration Rights</u>.

Each Holder shall have the rights, duties and obligations of a Holder (as defined in the Registration Rights Agreement) party to the Registration Rights Agreement *mutatis mutandis* as if such rights, duties and obligations were set forth herein, subject, in each case, to the terms and conditions of the Registration Rights Agreement.

Section 13. <u>[RESERVED]</u>.

Section 14. <u>Confidentiality</u>.

Each Holder agrees that it will not, directly or indirectly, at any time during or after such time as such Holder is a holder of securities of the Company, use, take commercial or proprietary advantage of or profit from or disclose in any manner whatsoever, in whole or in part, or disclose in any manner whatsoever, in whole or in part, any information (whether or not in written form and whether or not expressly designated as confidential), documents or materials of or concerning the Company, Parent, a Sponsor or any of their respective Subsidiaries or Affiliates or any of its or their respective former, current or future, direct or indirect, equity holders, controlling persons, general or limited partners, stockholders, members, managers, trustees, directors, officers, employees, agents, consultants, Affiliates, attorneys, advisors or other representatives received on a confidential basis from the Company, Parent, Holdco, a Sponsor or any other Person under or pursuant to this Agreement or any other agreement with the Company, Parent, Holdco, a Sponsor or any of their respective Subsidiaries or Affiliates, including financial terms

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and financial and organizational information contained in any documents, statements, certificates, materials or information furnished, or to be furnished, by or on behalf of the Company, Parent, Holdco, a Sponsor, any of their respective Affiliates or any other Person in connection with the purchase or ownership of any Awards; provided, however, that (a) the foregoing shall not be construed, now or in the future, to prevent such Holder from making any disclosure of any information (i) to such Holder's legal counsel, (ii) if required to do so by any law, rule or regulation of any court or other governmental authority, in each case applicable to or binding upon such Holder; provided that such Holder provides the Company with reasonable advance written notice thereof, and shall, to the fullest extent permitted by applicable law, limit the extent of such disclosure and reasonably cooperates with the Company in connection therewith or (iii) pursuant to subpoena and (b) an Applicable Employee may, if and for so long as he or she is an employee or consultant of Company or its Subsidiaries, use such information solely in such capacity as an employee or consultant on behalf of the Company and its Subsidiaries and for the sole purpose of the conduct of their respective businesses.

Section 15. <u>Distributions in Connection with Merger; Cooperation with Merger, Reorganization and SEC Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 In the event of any merger, consolidation, statutory share exchange or other business combination or reorganization of the Company, on the one hand, with any of its Subsidiaries, on the other hand, each Holder shall, to the extent necessary, as determined by Parent, execute a stockholders' agreement with terms that are substantially equivalent (to the extent practicable) to, *mutatis mutandis*, the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 Upon the election of Parent (including in connection with changes to the structure of Holdco, Parent or the Company), each Holder shall enter into a capital reorganization transaction (a "<u>Reorganization</u>") in which each such Holder will become a member, partner or stock holder or option holder of a newly formed company ("<u>Newco</u>"), which may be a limited liability company, corporation, or limited partnership or similar entity and shall cease to be holders of their Company Common Stock. The Reorganization may be structured as determined by Parent, in its sole discretion, as a contribution, merger, consolidation, recapitalization or substantially similar transaction in which each Holder exchanges the Company Common Stock for substantially similar equity securities of Newco (collectively, the "<u>New</u> <u>Equity Securities</u>"). The New Equity Securities shall provide each Holder with substantially similar economic and other rights, privileges and restrictions as such Holder had prior to such Reorganization. Upon the occurrence of a Reorganization, either (i) Newco shall assume all obligations of the Company under this Agreement and any Awards and all references herein to the Company, the Company Common Stock and the Awards (or terms of similar import) would be deemed changed *mutatis mutandis* to reflect the issuance of the New Equity Securities by Newco and their attendant rights, privileges and restrictions and the assumption of this Agreement and any Awards by Newco or (ii) upon the election of Sponsor, each Holder and Newco shall enter into a new agreement based on terms that are substantially similar to this Agreement. Each Holder and the Company agree to execute any agreements or other documents in connection with the Reorganization that Parent deems reasonably necessary and proper to consummate the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 In connection with any proposed transaction contemplated by <u>Section</u> <u>15.1</u> or <u>Section</u> <u>15.2</u>, each Holder shall take such actions as may be reasonably required and otherwise cooperate in good faith with the Company, Parent, Holdco and the Sponsors, including taking all actions reasonably requested by the Company, Parent, Holdco and the Sponsors and executing and delivering all agreements, instruments and documents as may be reasonably required or desirable to consummate any such proposed transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 Each Holder agrees, to the extent practicable and as requested by Parent, to use reasonable efforts following the consummation of an initial public offering of securities of the IPO Issuer, to take or avoid taking (as applicable) actions that would potentially cause liability to such IPO Issuer, the Company, Parent, Holdco, the Sponsors or their Affiliates or any Holder, as the case may be, under Section 13 or Section 16 of the Exchange Act or the rules and regulations promulgated thereunder. To the extent that the IPO Issuer, the Company, Parent, Holdco, a Sponsor or their respective Affiliates or any Holder determines that it is obligated to make filings under Section 13 or Section 16 of the Exchange Act or the rules and regulations promulgated thereunder, each Holder agrees to use reasonable efforts to cooperate with the Person that determines that it has such a filing obligation, including by promptly providing information reasonably required by such Person for any such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 Solely for purposes of this <u>Section</u> <u>15</u>, and in order to secure the performance of each Holder's obligations under this <u>Section</u> <u>15</u>, each Holder hereby irrevocably and unconditionally appoints Parent as the attorney-in-fact and proxy of such Holder (with full power of substitution and re-substitution) to vote (if applicable), provide a written consent (if applicable), or take any other action with respect to such Holder's Company Common Stock and Award Shares in connection with any proposed transaction contemplated by <u>Section</u> <u>15.1</u> or <u>Section</u> <u>15.2</u>, and Parent shall have, and is hereby granted, a proxy and power of attorney to vote, provide a written consent or take any other action with respect to each such Holder's Company Common Stock and Award Shares for purposes of taking the actions permitted by proposed transaction contemplated by <u>Section</u> <u>15.1</u> or <u>Section</u> <u>15.2</u>. Each Holder agrees that this proxy and power of attorney is given as a condition to this Agreement and intends this irrevocable and unconditional proxy to be, and it shall be, irrevocable and coupled with an interest, and each Holder shall take further action and execute such other instruments as may be necessary to effectuate the intent of this proxy and power of attorney and hereby revoke any proxy and power of attorney previously granted by it with respect to the matters set forth in this <u>Section</u> <u>15</u>. The irrevocable and unconditional proxy and power of attorney granted hereby is intended to be, and is, attached to the Company Common Stock, shall be deemed to have been delivered by a Holder to the Secretary of the Company upon execution of this Agreement, a joinder or Adoption Agreement (as applicable) by such Holder, and shall have a term valid for, and shall survive for, the duration of this Agreement.

Section 16. <u>Representations and Warranties</u>.

Each Holder hereby makes the representations and warranties set forth on <u>Exhibit B</u> to each of the other parties to this Agreement as of the date such Holder executed an Adoption Agreement and as of the date hereof.

Section 17. <u>Miscellaneous Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 <u>Governing Law</u>. All questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether in the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware, except to the extent the laws of the State of Arizona are mandatorily applicable to any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 <u>Binding Effect</u>. This Agreement shall be binding upon the Company, Parent, the Holders, any spouses of the Holders, and their respective heirs, executors, administrators and permitted successors and assigns. For the avoidance of doubt, the parties hereto intend that the applicable provisions of this Agreement constitute an enforceable voting agreement pursuant to Section 10-731 of the Arizona Revised Statutes and that this Agreement constitute a shareholder agreement under Section 10-732 of the Arizona Revised Statutes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 <u>Amendment; Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be amended or waived from time to time by an instrument in writing signed by the Company, Parent and Holdco; <u>provided</u>, that if any amendment, by its terms, would materially, adversely and uniquely affect one or more Holders relative to another Holder or group of Holders, such amendment shall require the written consent of the affected Holders who hold more than 50% of the Company Common Stock (including, for this purpose only, Company Common Stock subject to Options) held by all affected Holders. For the avoidance of doubt, any addition of a transferee as a party hereto pursuant to the terms and conditions hereof, shall not constitute an amendment hereto and the applicable Adoption Agreement need be signed only by the Company and such transferee or recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No course of dealing between the Company, or its Subsidiaries, and the Holders (or any of them) or any delay in exercising any rights hereunder will operate as a waiver of any rights of any party to this Agreement. The failure of any party to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4 <u>Termination</u>. This Agreement shall terminate automatically upon the earliest to occur of (a) the dissolution of the Company, (b) the consummation of a Control Disposition and (c)(i) the time that there are no Awards outstanding and (ii) no Holders party hereto have any rights remaining under the Registration Rights Agreement (other than with respect to indemnification and/or contribution rights, which rights shall survive the termination of the remainder of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5 <u>Dispositions of Company Common Stock</u>. Any Holder who disposes of all of his, her or its Company Common Stock and all securities exercisable, or exchangeable for or convertible into, Company Common Stock in conformity with the terms of this Agreement shall cease to be a party to this Agreement and shall have no further rights and obligations hereunder, except for purposes of <u>Section</u> <u>12</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6 <u>Spousal Consent</u>. The spouses of the individual Holders are fully aware of, understand and fully consent and agree to the provisions of this Agreement and its binding effect upon any community property interests or similar marital property interests in the Company Common Stock that they may now or hereafter own, and agree that the termination of their marital relationship with any Holder for any reason shall not have the effect of removing any Company Common Stock otherwise subject to this Agreement from the coverage of this Agreement and that their awareness, understanding, consent and agreement are evidenced by their signing of this Agreement. Furthermore, unless otherwise determined by the Company or Parent, each individual Holder agrees to cause his or her spouse (and any subsequent spouse) to execute and deliver a counterpart of this Agreement, or an Adoption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7 <u>Specific Performance</u>. Each party to this Agreement acknowledges that a remedy at law for any breach or attempted breach of this Agreement will be inadequate, agrees that each other party to this Agreement shall be entitled to specific performance and injunctive and other equitable relief in case of any such breach or attempted breach and further agrees to waive (to the extent legally permissible) any legal conditions required to be met for the obtaining of any such injunctive or other equitable relief (including posting any bond in order to obtain equitable relief).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8 <u>Counterparts</u>. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. The failure of any Holder to execute this Agreement does not make it invalid as against any other Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9 <u>Severability</u>. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, and such invalid, void or otherwise unenforceable provisions shall be null and void. It is the intent of the parties, however, that any invalid, void or otherwise unenforceable provisions be automatically replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10 <u>Further Efforts</u>. Each Holder shall do and perform or cause to be done and performed, without further consideration, all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments, and documents as the Company may request in order to carry out the provisions of this Agreement and to consummate the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11 <u>Exclusive Jurisdiction</u>. Each of the parties hereto irrevocably (i) consents to submit itself to the personal jurisdiction of the Delaware Court of Chancery, or in the event (but only in the event) that the Delaware Court of Chancery does not have subject matter jurisdiction over such legal action or proceeding, the United States District Court for the District of Delaware, or in the event (but only in the event) that such United States District Court for the District of Delaware also does not have subject matter jurisdiction over such legal action or proceeding, any Delaware state court sitting in New Castle County, in connection with any matter based upon or arising out of this Agreement or the actions of the parties hereof, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it will not bring any action relating to this Agreement in any court other than the courts of the State of Delaware, as described above. Each of the parties hereto hereby agrees that service of any process, summons, notice or document by U.S. registered mail to the addresses set forth in <u>Annex I</u>, or as set forth in Adoption Agreement of a Holder, as applicable, shall be effective service of process for any suit or proceeding in connection with this Agreement. Each party to this Agreement hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement, any claim that it is not personally subject to the jurisdiction of the abovenamed courts for any reason other than the failure to serve process in accordance with this <u>Section</u> <u>17.11</u>, that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and to the fullest extent permitted by applicable law, that the suit, action or proceeding in any such court is brought in an inconvenient forum, that the venue of such suit, action or proceeding is improper, or that this Agreement, or the subject matter hereof, may not be enforced in or by such courts and further irrevocably waives, to the fullest extent permitted by applicable law, the benefit of any defense that would hinder, fetter or delay the levy, execution or collection of any amount to which a party hereto is entitled pursuant to the final judgment of any court having jurisdiction. Each party hereto expressly acknowledges that the foregoing waiver is intended to be irrevocable under the laws of the State of Delaware and of the United States of America; provided, that each such party's consent to jurisdiction and service contained in this <u>Section</u> <u>17.11</u> is solely for the purpose referred to in this <u>Section</u> <u>17.11</u> and shall not be deemed to be a general submission to said courts or in the State of Delaware other than for such purpose.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12 <u>WAIVER OF JURY TRIAL</u>. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH THE SUBSTANTIVE LAWS SET FORTH IN SECTION 16.1 TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHT OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS RELATED HERETO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.13 <u>Entire Agreement</u>. This Agreement sets forth the entire agreement of the parties hereto as to the subject matter hereof and supersedes and cancels all previous and contemporaneous agreements among all or some of the parties hereto, whether written, oral or otherwise. Unless otherwise provided herein, any consent, approval, decision or action of the Company, Parent or Board of Trustees, as the case may be, may be given, withheld, taken or omitted by the Company, Parent or Board of Trustees, as the case may be, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.14 <u>Third Party Beneficiaries</u>. Except as otherwise expressly provided for in this Agreement, none of the provisions in this Agreement shall be for the benefit of or enforceable by any Person other than the parties to this Agreement, their respective heirs, executors, administrators, successors and permitted assigns except that (a) each Related Party shall be a third party beneficiary of <u>Section</u> <u>17.20</u> (and any other provision or definition of this Agreement to the extent an amendment, supplement, waiver or other modification of such provision or definition would modify the substance of such Section and definition) and (b) each of the Sponsors and their respective Affiliates shall be third party beneficiaries of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.15 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.16 <u>Personal Liability</u>. To the fullest extent permitted by law, no director or trustee, as the case may be, of Parent, the Company or its Subsidiaries shall be personally liable to Parent, the Company or any Holder as a result of any acts or omissions taken under this Agreement in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.17 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.18 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.19 <u>Assignment</u>. Notwithstanding anything to the contrary contained herein, Parent may assign its rights or obligations, in whole (and not in part), under this Agreement to one or more of its Affiliates; <u>provided,</u> that such assignment shall not relieve Parent of its obligations hereunder unless (a) Parent has transferred all its Company Common Stock to such Affiliate(s) and (b) such Affiliate(s) have become parties to this Agreement. Notwithstanding anything in this Agreement to the contrary, Parent shall have the right, at its election and without the consent of any other Person, to assign any or all of its rights or obligations under this Agreement to any Person or Persons to whom Parent sells or transfers Company Common Stock. No Holder may, directly or indirectly, assign or transfer (whether in connection with the transfer of Company Common Stock or otherwise) all or any part of its rights or obligations under this Agreement without the prior written consent of Parent (which consent may be withheld by Parent at its sole discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.20 <u>Non-Recourse</u>. Notwithstanding anything that may be expressed or implied in this Agreement, and notwithstanding the fact that certain of the parties hereto may be partnerships, limited liability companies, corporations or other entities, each Holder covenants, agrees and acknowledges that any claims or causes of action (whether in contract, tort or otherwise) under or that may be based upon, arise out of or relate to this Agreement, any documents or instruments delivered by any Person pursuant

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hereto, or the negotiation, execution or performance hereof or thereof (including any representation or warranty made in or in connection with or as an inducement to enter into this Agreement or such documents and instruments), may be made only against the Persons that are expressly identified as parties hereto, and no former, current or future, direct or indirect, equity holder, controlling Person, general or limited partner, stockholder, member, manager, director, officer, employee, agent, consultant, attorney, financing source, advisor, Affiliate, portfolio company in which any such party or any of its investment fund Affiliates have made a debt or equity investment (and vice versa), or other representative of Parent or any Sponsor or their respective Affiliates, successors or permitted assigns (including any Person negotiating or executing this Agreement on behalf of a party hereto) (each, a "<u>Related Party</u>" and collectively, the "<u>Related Parties</u>"), unless a party to this Agreement, shall have any liability or obligation with respect to this Agreement, any document or instrument delivered pursuant hereto, or with respect any claim or cause of action (whether in contract, tort or otherwise) that may arise out of or relate to this Agreement any document or instrument delivered pursuant hereto, or the negotiation, execution or performance of this Agreement or any document or instrument delivered pursuant hereto (including any representation or warranty made in or in connection with or as an inducement to enter into this Agreement or such documents and instruments), whether in connection with the enforcement of any assessment or with any legal equitable proceeding, or by virtue of any applicable law or otherwise, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of the Related Parties, as such, for any obligation or liability of the Company or Parent under this Agreement or any documents or instruments delivered in connection herewith for any claim based on, in respect of or by reason of such obligations or liabilities or their creation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.21 <u>No Partnership Status</u>. Nothing in this Agreement and no actions taken by the parties under this Agreement shall constitute a partnership, association or other co-operative entity between any of the parties or constitute any party the agent of any other party for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.22 <u>Further Acknowledgements</u>. Each Holder acknowledges and agrees that the restrictions on transfer set forth in this Agreement <u>are reasonable and have been imposed to accomplish legitimate corporate objectives and</u> may adversely affect the proceeds received by such Holder in any sale, transfer or liquidation of any Company Common Stock, and as a result of such restrictions on transfer and ownership, it may not be possible for the such Holder to liquidate all or any part of such Holder's interest in Company Common Stock at the time of such Holder's choosing, in exigent circumstances or otherwise. Each Holder further acknowledges and agrees that none of the Company, Parent, Sponsors and each of their respective Affiliates shall have any liability whatsoever to such Holder arising from, relating to or in connection with the restrictions on transfer of Company Common Stock or any interest therein as set forth in this Agreement, except to the extent the Company fails to comply in any material respect with its obligations to such Holder pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.23 <u>Interpretation</u>. Whenever the context requires, the gender of all words used herein shall include the masculine, feminine and neuter, and the number of all words shall include the singular and plural. The division into sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement and all references in this Agreement to any "article," "section," "schedule" or "exhibit" are to the corresponding article, section, schedule or exhibit of or to this Agreement. Words such as "herein," "hereinafter," "hereof," "hereto" and "hereunder" refer to this Agreement as a whole and not merely to any particular provision of this Agreement. The word "including" and any variation thereof means "including without limitation" and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it. The word "or" shall be disjunctive but not exclusive. All references to currency, monetary values and dollars set forth herein shall, unless otherwise indicated, mean U.S. dollars and all payments hereunder shall be made in U.S. dollars. All references to any period of days are to the relevant number of calendar days unless otherwise specified. Each party hereto has participated

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in the drafting of this Agreement, which each such party acknowledges is the result of negotiations among such parties (as sophisticated Persons), and consequently, this Agreement shall be interpreted without reference to any laws to the effect that any ambiguity in a document be construed against the drafter. References to agreements and other documents shall be deemed to include all amendments, modifications and supplements thereto. References to acts and statutes shall include the rules and regulations promulgated thereunder, and any reference to any acts, statutes, rules and regulations shall refer to the same as amended from time to time. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement.

[*Signature Pages Follow*]

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This Agreement is executed by the Company, Parent and Holdco to be effective as of the date first above written.

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| | |
|:---|:---|
| **COMPANY** | **COMPANY** |
| **UNIVERSITY OF PHOENIX, INC.** | **UNIVERSITY OF PHOENIX, INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **PARENT** | **PARENT** |
| **PHOENIX EDUCATION OPERATING CORP.** | **PHOENIX EDUCATION OPERATING CORP.** |
| By: |  |
|  | Name: |
|  | Title: |
| **HOLDCO** | **HOLDCO** |
| **PHOENIX EDUCATION PARTNERS, INC.** | **PHOENIX EDUCATION PARTNERS, INC.** |
| By: |  |
|  | Name: |
|  | Title: |

---

[*Signature Page to University of Phoenix, Inc. Stockholders Agreement*]

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**EXHIBIT A** 

**[RESERVED]** 

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**EXHIBIT B** 

**REPRESENTATIONS AND WARRANTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Holder has the requisite power and authority and is of legal age and has the requisite legal capacity to execute and deliver each of the Adoption Agreement and the Stockholders' Agreement (together, the "<u>Transaction Documents</u>"), to carry out its obligations thereunder and to consummate the transactions contemplated thereby. The execution and delivery by Holder of the Transaction Documents, the performance by Holder of its obligations thereunder and the consummation by Holder of the transactions contemplated thereby have been duly authorized by Holder. The Transaction Documents have been duly and validly executed and delivered by Holder and each of them is a legal, valid and binding obligation of Holder, enforceable against Holder in accordance with its terms, except as the enforceability may be limited by (a) applicable bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or similar laws in effect which affect the enforcement of creditors' rights generally or (b) general principles of equity. Capitalized terms used herein without definition are defined in the Stockholders' Agreement and are used herein with the same meanings set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The execution and delivery of the Transaction Documents by Holder, the performance by Holder of its obligations thereunder and the consummation by Holder of the transactions contemplated thereby do not and will not (a) materially violate or materially conflict with any law or governmental order applicable to Holder or any of Holder's assets or properties or (b) violate or conflict with in any material respect, result in any material breach of, or constitute a material default (or event that with the giving of notice or lapse of time, or both, would become a default) under, any agreement to which Holder is a party or by which any of its assets or properties is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Holder is an "accredited investor" as defined in Rule 501 under the Securities Act, unless such Holder has acquired Company Common Stock and become a Holder only as a result of the settlement of restricted stock units of the Company held by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Holder has such knowledge and experience in financial and business matters that it is capable of utilizing the information made available to Holder to evaluate the merits and risks of an investment in the Company and to make an informed investment decision with respect thereto. Holder is aware that its purchase of Company Common Stock is highly speculative and it is able, without impairing its financial condition, to hold the Company Common Stock for an indefinite period of time and to suffer a complete loss of its investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The Company Common Stock is being acquired by Holder for its own account only for investment and is not being purchased with a view towards its resale or further distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 Holder acknowledges that it is not subscribing for shares of Company Common Stock as a result of or subsequent to (a) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television, radio or the interest or (b) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign (each a "<u>Governmental Entity</u>"), with respect to Holder is required in connection with the execution, delivery or performance by Holder of the Transaction Documents or the consummation by Holder of the transactions contemplated by the Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 There are no suits, actions, claims, proceedings or investigations pending or, to the knowledge of Holder, threatened against, relating to or involving Holder before any Governmental Entity. Holder is not subject to any judgment, decree, injunction, rule or order of any court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 Holder acknowledges that the Company has not rendered any investment advice or securities valuation advice to Holder, and that Holder is neither subscribing for nor acquiring any interest in the Company in reliance upon or with the expectation of, any such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 Holder has been given the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of, and other matters pertaining to, this investment, and has had or been given an opportunity to access such financial and other information concerning the Company as it has considered necessary to make a decision to invest in the Company and has availed itself of this opportunity to the full extent desired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 Holder is acquiring the Company Common Stock in compliance with all applicable laws, rules, regulations and other legal requirements including without limitation, the legal requirements of jurisdictions in which such Holder is resident and in which such acquisition is being consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 If Holder is a non-U.S. Person, Holder has not been solicited to purchase and has not and shall not acquire its Company Common Stock, directly or indirectly, while present in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 If Holder is a non-U.S. Person, Holder shall notify the Company promptly after it ceases to be a non-U.S. Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 Holder agrees to deliver to the Company such information as to certain matters under the Securities Act as the Company may reasonably request in order to ensure compliance with the Securities Act and the availability of any exemptions thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 All information provided by Holder in connection with the Company Common Stock is true and correct in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 Holder acknowledges that the Company has relied and will rely on the representations and warranties of Holder set forth herein and that all such representations and warranties shall survive the date hereof. Without limiting the foregoing, each Holder agrees to give the Company prompt written notice in the event that any representations of such Holder contained herein ceases to be true at any time following the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 If any answer provided or background documentation required in connection herewith is found to be false, forged or misleading, Holder understands that the Company may require Holder to fully redeem its shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. Holder is the sole record and beneficial owner of the Company Common Stock.

## Exhibit 10.4

**Exhibit 10.4**![LOGO](g876348g65i83.jpg)

December 15, 2022

Mr. Christopher Lynne

Dear Chris,

On behalf of the Board of Trustees, it is my pleasure to extend to you this offer for the position of President, University of Phoenix. Your target effective date will be December 16, 2022 (subject to mutual agreement). In your new role, you will play an essential role in fulfilling our vision of being recognized as the most trusted provider of career-relevant education for working adults. As compensation for your services, we are pleased to offer you the following:

**<u>Base Salary</u>**

Your base salary will be $820,000 per year, payable in accordance with our standard payroll practices and pay dates.

**<u>Short-Term Incentive Bonus</u>**

You will be eligible to participate in the University Bonus Plan with a full-year bonus target of 100% ($820,000) of your base salary and a maximum bonus payout of 200% of salary ($1,640,000). Bonus awards are paid approximately 6 weeks following the end of our fiscal year (August 31). Your actual bonus payment will depend upon the attainment of pre-established performance goals and will be pro-rated for time employed during the current performance period.

**<u>Long-Term Incentive Plan</u>**

You will be eligible to receive a one-year cash long-term incentive award at a level commensurate with the position of President; such award will be subject to terms and conditions as approved by the Board of Trustees no later than January 31, 2023. This award will vest in full on the earlier of a Change in Control or the end of the current fiscal year (August 31, 2023).

**<u>Benefits and Time Off</u>**

Your benefits and time off will continue at the same level currently in effect, subject to any potential changes that may occur following a Change in Control.

**<u>Total Cash Compensation</u>**

---

| | | |
|:---|:---|:---|
|  | ***Target*** | ***Max*** |
|  Base Salary | $820000 |  |
|  Annual Incentive Bonus Potential<sup>1</sup>  | $820000 | $1640000 |
|  **Total Cash Compensation at Target** | $**1640000** | $**2460000** |

---

*<sup>1</sup>* *Prorated back to the start of the fiscal year, September 1, 2022.*

1 \| P a g e

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![LOGO](g876348g65i83.jpg)

The details of this offer are personal and confidential and will remain valid through December 16, 2022. Should you have any questions concerning any part of this offer, please contact Cheryl Naumann, Chief Human Resources Officer, at [\*\*\*] (cell).

Congratulations, Chris - we look forward to welcoming you to our team.

---

| |
|:---|
|  Sincerely, |
|  /s/ Celestino Fernández |
|  Celestino Fernández, Ph.D. |
|  Chairman |
|  University of Phoenix Board of Trustees |

---

---

| | |
|:---|:---|
| **I accept this offer as presented.** |  |
| /s/ Christopher Lynne | 12/16/2022 |
| Christopher Lynne | Date |

---

*Your employment with the University is contingent upon the successful completion of a background check and will be subject to all terms and conditions contained in the current version of the University Employee Handbook.* 

*As a matter of policy, please do not bring to the University any of your previous employers' documents, customer lists, or similar materials. Although this caution is in most cases unnecessary, we feel that it is important to emphasize that University policy prohibits the transfer or use of such material from other employers.* 

2 \| P a g e

## Exhibit 10.5

**Exhibit 10.5**![LOGO](g876348g65i83.jpg)

August 28, 2015

Mr. Raghu Krishnaiah

[\*\*\*]

Dear Raghu,

On behalf of University of Phoenix, Inc. ("University"), it is a pleasure to extend you this offer of employment for the position of Chief Operating Officer, University of Phoenix. This position is based in Tempe, AZ and reports to the President, University of Phoenix. Your target start date is October 12, 2015 (subject to mutual agreement), and your work schedule will be determined by the University and may change from time to time in the sole discretion of the University. We are excited to invite you to be a part of our team; you will play an integral role in ensuring that University of Phoenix remains a leading provider of higher education programs for working adults by focusing on servicing the needs of the working adult.

As compensation for your services, we are pleased to offer you:

---

| | |
|:---|:---|
| **Base Salary** | Your base salary will be at the rate of $365,000 per year, payable in accordance with the University's standard payroll practices and pay dates. |
| **Annual Incentive Bonus** | You will be eligible to participate in the University's bonus plan with a target of 50% of your base salary ($182500) per full fiscal year and a maximum bonus payout of 200% of target ($365000). Your actual bonus each year will depend upon the attainment of pre-established performance goals. Bonus payments are prorated for periods of less than a full fiscal year. |
| **Sign-on Cash Bonus** | You will receive a one-time sign-on cash bonus in the amount of $150,000, payable in two parts: $140,000 within 30 days of your hire date and $10,000 within 30 days after your one-year anniversary. The payments will be subject to all federal, state, and FICA withholding. These payments are subject to the following vesting terms: the first payment ($140000) will vest on your one-year anniversary date and the second payment ($10000) will vest on your two-year anniversary date. If you leave the company voluntarily or are terminated for cause before a payment vests, you will be obligated and hereby agree to repay that unvested portion of the Sign-on Cash Bonus to the University. Any repayment required by this provision is due and payable in full upon your termination date. By accepting the Sign-on Cash Bonus, you hereby authorize the Company, at its option, to deduct such repayment from any outstanding funds owed to you, including, but not limited to, wages, bonuses, incentive pay, or other compensation. |
| **Long-term Incentive** | You will be eligible to participate in the annual long-term incentive ("LTI") award program. Management will recommend to the Compensation Committee that you be provided with a long-term incentive award for FY16 of $350,000. This amount will be granted as soon as is practicable following approval at the October 2016 Compensation Committee meeting. Awards may take the form of restricted stock units (RSUs), stock options, and/or other forms of cash/equity as provided under the Company's Stock Incentive Plan. Annual LTI awards are subject to approval by the Compensation Committee and are not guaranteed. |
|  | All LTI equity awards are subject to approval by the Compensation Committee. Any LTI awards that you receive will be evidenced by the University's standard award agreements and will be subject to the terms and conditions of those agreements and the terms of the plan(s) under which the awards are granted. |

---

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![LOGO](g876348g65i83.jpg)

---

| | |
|:---|:---|
| **Benefits** | You will be eligible to enroll in Apollo's comprehensive health care coverage on the 61st day of employment. This coverage includes medical, prescription drug, dental, and vision. |
|  | The University offers a variety of savings and investment options to help plan your financial future. The University's 401(k) plan offers an employer matching contribution after one year of employment. |
|  | The University provides an Educational Assistance Plan for all active full-time regular employees and their eligible dependent(s) after only six months of continuous employment. Moreover, the University offers Adoption Assistance, an Employee Assistance Program, and discounts at hundreds of retailers. |
| **COBRA Reimbursement** | The University agrees to reimburse you for two (2) months' worth of COBRA benefit expenses to help bridge the gap between University benefit plan eligibility. |
| **Time Off** | The University offers both paid vacation and sick time. The amount of time during your first year is based on your hire date. In addition, the University provides ten (10) paid holidays and one (1) "floating holiday." |
| **Severance** | As an Executive officer you will be eligible to participate in the Senior Executive Severance Pay Plan. Under this plan, if you are involuntarily terminated without cause and meet the other conditions for eligibility under the plan, you would be eligible for (i) twelve (12) months of salary continuation and (ii) fifty percent (50%) of your Average Annual Bonus. Such severance pay would be paid in accordance with the terms of the plan. If you become eligible for severance benefits under the plan, you would also be entitled to limited pro-rata vesting of a portion of your outstanding annual equity grants in accordance with the provisions of the plan. |
| **Total Direct Compensation** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | *Target* |  | *Max* |
|  | Base Salary | $365000 |  |  |
|  | Annual Incentive Bonus | $182500 | (50%) | $365000 |
|  | Annual LTI Award | $350000 |  |  |
|  | **Total Direct Compensation** | $**897500** |  | $**1080000** |
|  *Additional One-Time Compensation Items* | Sign-on Cash Bonus | $150000 |  |  |

---

---

| | |
|:---|:---|
| **Offer Expiration** | Please note that the details of this offer are personal and confidential and will remain valid through 9/2/15. |

---

As a matter of policy, in situations where a prospective employee is leaving another job, we like to make it clear that if you accept our offer, you should not bring to the University any of your previous employers' documents, customer lists, or similar materials. Although this caution is in most cases unnecessary, we feel that it is important to emphasize that University policy prohibits the transfer or use of such material from other employers.

------

![LOGO](g876348g65i83.jpg)

Your employment with the University is contingent upon the successful completion of a background check and will be subject to all terms and conditions contained in the current version of the University's Employee Handbook.

Learning is our passion. At University of Phoenix, you'll join thousands of employees who are passionate about improving society by providing access to a high-quality, career-focused education.

Should you have any questions concerning any part of this offer, please call me at [\*\*\*].

Congratulations, Raghu! We look forward to welcoming you to our team.

Sincerely,

Cheryl Naumann

Senior Vice President, Human Resources

University of Phoenix

---

| | |
|:---|:---|
| **I accept this offer as presented.** |  |
| /s/ Raghu Krishnaiah | 9/2/2015 |
| Raghu Krishnaiah | Date |

---

## Exhibit 10.6

**Exhibit 10.6** 

**UNIVERSITY OF PHOENIX, INC.** 

**NONQUALIFIED STOCK OPTION** 

**GRANT CERTIFICATE** 

**THIS NONQUALIFIED STOCK OPTION GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>");

**WHEREAS**, the University wishes to afford the Grantee the opportunity to purchase Shares; and

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the nonqualified Option provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Option.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee an Option (the "<u>Option</u>") to purchase **[ ]** Shares (the "<u>Option Shares</u>"), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an incentive stock option under Section 422 of the Code. The "<u>Exercise Price</u>," being the price at which the Grantee shall be entitled to purchase the Option Shares upon the exercise of all or any portion of the Option, shall be **[ ]** per Option Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 12(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the exercise of all or any portion of the Option, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Exercisability; Forfeiture.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the closing date of a Change in Control (the "<u>Closing Date</u>") occurs on or before August 31, 2026 (the "<u>Expiration Date</u>"), the Options, to the extent unvested, shall become fully vested and exercisable, provided that, subject to Sections 2(b) and 5(a) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the Closing Date occurs during the ninety (90) day period immediately following such date of termination, then immediately prior to such Change in Control, the Options shall vest or terminate, as applicable, in accordance with Section 2(a) above as if the Grantee had remained employed through the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Requirements Prior to the Closing Date</u>. From the date hereof through the Closing Date, the Grantee must perform fully duties for the University in a manner consistent with past performance of such duties and comply with the terms of any other agreements between the Grantee and the University. Determination of the Grantee's satisfaction of the condition set forth in this paragraph shall remain in the sole and absolute discretion of the University.

**3. Method of Exercise; Tax Withholding.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee may exercise the vested and exercisable portion of the Option, in whole or in part, by delivery of a written notice to the University setting forth the number of Shares with respect to which the Option is to be exercised, together with either (i) a certified check or bank draft payable to the order of the University for an amount equal to the sum of the exercise price for such Shares and any income taxes (subject to Section 3(b)) and employment taxes required to be withheld or (ii) both (x) an instruction to the University to undertake a "net exercise" procedure effected by withholding the minimum number of Shares otherwise deliverable in respect of the Option that are needed to pay for the exercise price of all Shares with respect to which the Option is to be exercised, and (y) a certified check or bank draft payable to the order of the University for an amount equal to any income taxes (subject to Section 3(b)) and employment taxes required to be withheld in connection with such exercise, or pursuant to any other method permitted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The University shall require, as a condition to the exercise of the Option, that the Grantee remit an amount in cash or, in the sole discretion of the University, Shares or other property, sufficient to satisfy all federal, state and local or other applicable income or employment tax withholding relating thereto. In addition, the University shall have the right and is hereby authorized to withhold from any compensation or other amount owing to the Grantee, the amount (in cash or, in the sole discretion of the University, Shares or other property) of any applicable income or employment tax withholding in respect of the exercise of the Option and to take such other action as may be necessary in the discretion of the University to satisfy all obligations for the payment of such taxes.

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**4. Expiration.** If the Closing Date does not occur by August 31, 2026, this Agreement shall expire on its terms and be null and void and of no further force or effect.

**5. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death or Disability</u>: If the Grantee's employment is terminated prior to the Closing Date as a result of the Grantee's death or disability, the Grantee shall be eligible to receive a prorated portion of the Options upon a Change in Control (provided that such Change in Control occurs on or before the Expiration Date) calculated as follows: (A) number of Options multiplied by (B) a fraction, (1) the numerator of which is equal to the number of calendar days that have elapsed from September 1, 2021 until the date of the Grantee's termination of employment and (2) the denominator of which is equal to the total number of calendar days from September 1, 2021 until the Closing Date. The remaining portion of the Options shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Terminations</u>. If the Grantee's employment is terminated prior to the Closing Date by the Grantee or the University for any reason other than as a result of the Grantee's death or Disability, then the Grantee shall forfeit any rights to the Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**6. Restrictive Covenants.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. During the term of the Grantee's employment with the University and for a period of one (1) year thereafter, Grantee shall not (without the prior written consent of the University), directly or indirectly, (i) engage in any Competitive Business, or (ii) acquire a financial interest in any Competitive Business. For purposes of this Section 6((a)): (A) the phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers), and (B) the term "<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any taxable institution of higher learning and any non-taxable educational institution that competes with the business of the University. Notwithstanding the foregoing, nothing herein shall prohibit the Grantee from being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the

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Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant). The obligations of the Grantee under this Section 6((a)) shall apply to (x) any geographic area or territory in which the University is engaged in business as of the date of the Grantee's termination of employment, and (y) any prospective geographic area or territory that within the six (6) months preceding the date of termination of the Grantee's employment, has been the subject of serious consideration by the University as a business location and which the Grantee is or has been made aware of. For purposes of this Section 6((a)), references to the University shall not include Apollo or its affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly: (i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates to terminate their relationship with or leave the employ of the University or any such Affiliate, or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any officer, director or employee thereof, on the other hand, (ii) hire (or other similar arrangement) any Person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was an officer, director or employee of the University or any of its Affiliates until six (6) months after such individual's relationship (whether as an officer, director or employee) with the University or such Affiliate has ended, or (iii) induce or attempt to induce any customer, supplier, prospect licensee or other business relation of the University or any of its Affiliates to cease doing, or reduce the amount of, business with the University or such Affiliate; <u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(b). For purposes of this Section 6(b), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers. The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(c), "Affiliates" shall not include other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices,

------

contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever. As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 6(e) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Whistleblower Protection</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Forfeiture; Other Relief</u>. **In the event of a material breach by the Grantee of the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the Option shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that the Grantee has previously exercised all or any portion of the Option within the three (3) year period immediately preceding such breach, the Grantee shall forfeit such Option Shares without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any proceeds received by the Grantee upon disposition of the Option Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability; Blue Pencil</u>. The invalidity or nonenforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares subject to this Option unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement) and (ii) such Option shall have been exercised pursuant to its terms (including, without limitation, the satisfaction of all conditions under Section 3 hereof).

**8. Compliance with Legal Requirements.** The granting and exercising of the Option, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the Option as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the exercise of the Option at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such exercise shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the exercise of the Option which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**9. Clawback.** The Option and/or the Option Shares shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

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**10. Litigation Cooperation.** The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect. In the event of the Grantee's death, the Option shall thereafter be exercisable (to the extent otherwise exercisable hereunder) only by the Grantee's executors or administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 12 shall be borne by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If requested by the Grantee, the University agrees to use reasonable best efforts to solicit the approval of its stockholders, to the extent and in the manner required under Section 280G(b)(5)(B) of the Code and the regulations promulgated thereunder, of any "parachute payments" waived by the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The Option is not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent,

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modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the Option or the Option Shares will not be subject to interest and penalties under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4025 South Riverpoint Parkway

Phoenix, Arizona 85040

Mailstop CF-K612

Attention: General Counsel

Email: [●]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the Option nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from any exercise of the Option, resulting from an adjustment of the Option pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Sections 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of Grantee's participation in the Plan that any personal data in relation to Grantee may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that, except as required by law or while carrying out duties for the University in good faith, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the Option or any of the terms or provisions hereof without the prior approval of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
| THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
| By: |  |
|  | Christopher Lynne |
|  | Chief Financial Officer |

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*[Signature Page to Option Grant Certificate]*

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I acknowledge that I have read and understand the terms of this Agreement.

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| | |
|:---|:---|
| **Employee: [ ]** | **Employee ID: [ ]** |

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## Exhibit 10.7

**Exhibit 10.7** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**NONQUALIFIED STOCK OPTION** 

**GRANT CERTIFICATE** 

**THIS NONQUALIFIED STOCK OPTION GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>");

**WHEREAS**, the University wishes to afford the Grantee the opportunity to purchase Shares; and

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the nonqualified Option provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Option.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee an Option (the "<u>Option</u>") to purchase **[ ]** Shares (the "<u>Option Shares</u>"), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an incentive stock option under Section 422 of the Code. The "<u>Exercise Price</u>," being the price at which the Grantee shall be entitled to purchase the Option Shares upon the exercise of all or any portion of the Option, shall be **[ ]** per Option Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 11(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the exercise of all or any portion of the Option, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Exercisability; Forfeiture.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the closing date of a Change in Control (the "<u>Closing Date</u>") occurs on or before August 31, 2030 (the "<u>Expiration Date</u>"), the Options, to the extent unvested, shall become fully vested and exercisable, provided that, subject to Sections 2(b) and 5(a) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the Closing Date occurs during the ninety (90) day period immediately following such date of termination, then immediately prior to such Change in Control, the Options shall vest or terminate, as applicable, in accordance with Section 2(a) above as if the Grantee had remained employed through the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Requirements Prior to the Closing Date</u>. From the date hereof through the Closing Date, the Grantee must perform fully duties for the University in a manner consistent with past performance of such duties and comply with the terms of any other agreements between the Grantee and the University. Determination of the Grantee's satisfaction of the condition set forth in this paragraph shall remain in the sole and absolute discretion of the University.

**3. Method of Exercise; Tax Withholding.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee may exercise the vested and exercisable portion of the Option, in whole or in part, by delivery of a written notice to the University setting forth the number of Shares with respect to which the Option is to be exercised, together with either (i) a certified check or bank draft payable to the order of the University for an amount equal to the sum of the Exercise Price for such Shares and any income taxes (subject to Section 3(b)) and employment taxes required to be withheld or (ii) both (x) an instruction to the University to undertake a "net exercise" procedure effected by withholding the minimum number of Shares otherwise deliverable in respect of the Option that are needed to pay for the Exercise Price of all Shares with respect to which the Option is to be exercised, and (y) a certified check or bank draft payable to the order of the University for an amount equal to any income taxes (subject to Section 3(b)) and employment taxes required to be withheld in connection with such exercise, or pursuant to any other method permitted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The University shall require, as a condition to the exercise of the Option, that the Grantee remit an amount in cash or, in the sole discretion of the University, Shares or other property, sufficient to satisfy all federal, state and local or other applicable income or employment tax withholding relating thereto. In addition, the University shall have the right and is hereby authorized to withhold from any compensation or other amount owing to the Grantee, the amount (in cash or, in the sole discretion of the University, Shares or other property) of any applicable income or employment tax withholding in respect of the exercise of the Option and to take such other action as may be necessary in the discretion of the University to satisfy all obligations for the payment of such taxes.

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**4. Expiration.** If the Closing Date does not occur on or before August 31, 2030, this Agreement shall expire on its terms and be null and void and of no further force or effect.

**5. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death or Disability</u>: If the Grantee's employment is terminated prior to the Closing Date as a result of the Grantee's death or disability, the Grantee shall be eligible to receive a prorated portion of the Options upon a Change in Control (provided that such Change in Control occurs on or before the Expiration Date) calculated as follows: (A) number of Options multiplied by (B) a fraction, (1) the numerator of which is equal to the number of calendar days that have elapsed from September 1, 2022 until the date of the Grantee's termination of employment and (2) the denominator of which is equal to the total number of calendar days from September 1, 2022 until the Closing Date. The remaining portion of the Options shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Terminations</u>. Subject to Section 2(b), if the Grantee's employment is terminated prior to the Closing Date by the Grantee or the University for any reason other than as a result of the Grantee's death or Disability, then the Grantee shall forfeit any rights to the Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**6. Restrictive Covenants.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the Options or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the Options shall terminate and any outstanding portion of such Options (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Competition</u>. During the term of the Grantee's employment with the University and for a period of one (1) year thereafter, Grantee shall not (without the prior written consent of the University), directly or indirectly, (i) engage in any Competitive Business, or (ii) acquire a financial interest in any Competitive Business. For purposes of this Section 6(b): (A) the phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers), and (B) the term "<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any taxable institution of higher

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learning and any non-taxable educational institution that competes with the business of the University. Notwithstanding the foregoing, nothing herein shall prohibit the Grantee from being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant). The obligations of the Grantee under this Section 6(b) shall apply to (x) any geographic area or territory in which the University or any of its Affiliates is engaged in business as of the date of the Grantee's termination of employment, and (y) any prospective geographic area or territory that within the six (6) months preceding the date of termination of the Grantee's employment, has been the subject of serious consideration by the University as a business location and which the Grantee is or has been made aware of. For purposes of this Section 6(b), references to the University shall not include Apollo Education Group, Inc. ("<u>Apollo</u>") or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly: (i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates to terminate their relationship with or leave the employ of the University or any such Affiliate, or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any officer, director or employee thereof, on the other hand, (ii) hire (or other similar arrangement) any Person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was an officer, director or employee of the University or any of its Affiliates until six (6) months after such individual's relationship (whether as an officer, director or employee) with the University or such Affiliate has ended, or (iii) induce or attempt to induce any customer, supplier, prospect licensee or other business relation of the University or any of its Affiliates to cease doing, or reduce the amount of, business with the University or such Affiliate; <u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(c). For purposes of this Section 6(c), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers. The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(d), "Affiliates" shall not include other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have

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the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever. As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 6(f) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Whistleblower Protection</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Forfeiture; Other Relief</u>. **In the event of a material breach by the Grantee of the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the Option shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that the Grantee has previously exercised all or any portion of the Option within the three (3) year period immediately preceding such breach, the Grantee shall forfeit such Option Shares without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any proceeds received by the Grantee upon disposition of the Option Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or

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impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability; Blue Pencil</u>. The invalidity or nonenforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares subject to this Option unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement) and (ii) such Option shall have been exercised pursuant to its terms (including, without limitation, the satisfaction of all conditions under Section 3 hereof).

**8. Compliance with Legal Requirements.** The granting and exercising of the Option, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the Option as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the exercise of the Option at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such exercise shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the exercise of the Option which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

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**9. Clawback.** The Option and/or the Option Shares shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

**10. Litigation Cooperation.** The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect. In the event of the Grantee's death, the Option shall thereafter be exercisable (to the extent otherwise exercisable hereunder) only by the Grantee's executors or administrators.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 11 shall be borne by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If requested by the Grantee, the University agrees to use reasonable best efforts to solicit the approval of its stockholders, to the extent and in the manner required under Section 280G(b)(5)(B) of the Code and the regulations promulgated thereunder, of any "parachute payments" waived by the Grantee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The Option is not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the Option or the Option Shares will not be subject to interest and penalties under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, Arizona 85040

Attention: General Counsel

Email: [•]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

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All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the Option nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from any exercise of the Option, resulting from an adjustment of the Option pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Sections 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware

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Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of Grantee's participation in the Plan that any personal data in relation to Grantee may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that, except as required by law or while carrying out duties for the University in good faith, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the Option or any of the terms or provisions hereof without the prior approval of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
|  THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
|  By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

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*[Signature Page to Option Grant Certificate]*

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I acknowledge that I have read and understand the terms of this Agreement.

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| | |
|:---|:---|
| **Employee: [ ]** | **Employee ID: [ ]** |

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## Exhibit 10.8

**Exhibit 10.8** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**NONQUALIFIED STOCK OPTION** 

**GRANT CERTIFICATE** 

**THIS NONQUALIFIED STOCK OPTION GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>");

**WHEREAS**, the University wishes to afford the Grantee the opportunity to purchase Shares; and

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the nonqualified Option provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Option.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee an Option (the "<u>Option</u>") to purchase **[ ]** Shares (the "<u>Option Shares</u>"), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an incentive stock option under Section 422 of the Code. The "<u>Exercise Price</u>," being the price at which the Grantee shall be entitled to purchase the Option Shares upon the exercise of all or any portion of the Option, shall be **[ ]** per Option Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 12(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the exercise of all or any portion of the Option, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

**2. Vesting; Exercisability; Forfeiture.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Option shall become vested and exercisable in three (3) equal installments at the end of each University fiscal year beginning on August 31, 2023 (each, a "<u>Vesting Date</u>"), provided that (A) subject to Sections 2(b)(iii) and 5(a)(i)(A) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through such Vesting Date and (B) subject to Section 2(b) below, the performance criteria described in this Section 2(a) are met with respect to the fiscal year of the University that ends on the applicable Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) Subject to clause (C) below, sixteen and two-thirds percent (16 2/3%) of the Option will vest on each Vesting Date if the University's Annual EBITDA (as defined in <u>Exhibit</u> <u>A</u> attached hereto) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual EBITDA Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Subject to clause (C) below, sixteen and two-thirds percent (16 2/3%) of the Option will vest on each Vesting Date if the University's Annual Free Cash Flow (as defined in <u>Exhibit</u> <u>A</u>) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual Free Cash Flow Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If any installment of the Option does not vest as of a Vesting Date because (1) the Annual EBITDA Target was not achieved pursuant to clause (A) above, or (2) the Annual Free Cash Flow Target was not achieved pursuant to clause (B) above, such installment shall remain eligible to vest upon any future Vesting Date, subject to the Grantee's continued employment through such Vesting Date (except as provided by Sections 2(b) and 5(a)(i)(A) below), if the University's Cumulative EBITDA or Cumulative Free Cash Flow, as applicable, for the fiscal year that ends on such Vesting Date equals or exceeds the Cumulative EBITDA Target or Cumulative Free Cash Flow Target, as applicable, for such fiscal year (as such terms are defined in <u>Exhibit</u> <u>A</u> and as such targets are specified on <u>Exhibit</u> <u>A</u>).

By way of example and for illustration purposes only, if the Annual EBITDA Target for the first, second, and third fiscal years were $100 million, $200 million and $300 million, respectively, and actual achievement of such targets were $150 million, $170 million, and $330 million, respectively, then (1) the installment of the Option described in Section 2(a)(ii)(A) in respect of the first fiscal year shall vest on the first Vesting Date because Annual EBITDA exceeded the Annual EBITDA Target by $50 million; (2) the installment of the Option described in Section 2(a)(ii)(A) in respect of the second fiscal year shall not vest on the second Vesting Date because Annual EBITDA fell short of the Annual EBITDA Target by $30 million, and Cumulative EBITDA through the second fiscal year (which is only $270 million for this purpose since the excess of $50

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million over the Annual EBITDA Target in the first fiscal year is disregarded; and (3) the installment of the Option described in Section 2(a)(ii)(A) in respect of the third fiscal year shall vest on the third Vesting Date because Annual EBITDA exceeded the Annual EBITDA Target by $30 million; and (4) the installment of the Option described in Section 2(a)(ii)(A) in respect of the second fiscal year also vests on the third Vesting Date because Cumulative EBITDA through the third fiscal year (which is $600 million for this purpose, taking into account the excess in the third fiscal year but disregarding the excess in the first fiscal year) satisfied the Cumulative EBITDA Target of $600 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The determination of the achievement of the performance criteria described in this Section 2(a) shall be subject to the Committee's certification for the applicable fiscal year for purposes of this Agreement based on the University's audited financials for such fiscal year. If the Grantee's employment terminates for any reason other than by the University or any of its Affiliates for Cause after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the Option that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest and become exercisable in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest and become exercisable in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The EBITDA and Free Cash Flow Targets (including the Cumulative EBITDA Targets and Cumulative Free Cash Flow Targets) specified in <u>Exhibit A</u> are based upon certain revenue and expense assumptions about the future business of the University as of the date the Option is granted. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion, that any acquisition or disposition of any of the businesses of the University or its subsidiaries, or any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the University, issuance of warrants or other rights to purchase Shares or other securities of the University, any unusual or nonrecurring transactions or events affecting the University, or the financial statements of the University, or change in applicable laws, regulations, or accounting principles has occurred such that an adjustment is determined by the Committee in good faith to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the Option, then the Committee shall, in good faith and in such manner as it may deem equitable, adjust the performance targets set forth on <u>Exhibit A</u> to reflect the projected effect of such transaction(s) or event(s) on EBITDA and/or Free Cash Flow, subject to Section 7 of the Plan (including, without limitation, the Committee's ability to determine other equitable adjustments).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Change in Control, subject to the Grantee's continued employment through the effective date of a Change in Control, the annual performance targets set forth in Section 2(a) with respect to the fiscal year in which the Change in Control occurs and all future fiscal years shall be deemed met, and the Option shall become vested and exercisable with respect to the installments relating to such fiscal years, as of the effective date of the Change in Control; <u>provided</u>, <u>however</u>, that any installment of the Option that was eligible to vest, but did not vest or become exercisable in accordance with Section 2(a)(ii), upon a Vesting Date occurring prior to the Change in Control because the applicable performance criteria were not met shall be forfeited and shall no longer remain outstanding as of immediately prior to such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Change in Control occurs after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the Option that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest and become exercisable in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest and become exercisable in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the effective date of a Change in Control occurs during the ninety (90) day period beginning on such date of termination, then immediately prior to the effective date of the Change in Control (and subject to the consummation of such Change in Control), the Option shall vest or terminate, as applicable, in accordance with Section 2(b)(i) or (ii) above as if the Grantee had remained employed through the consummation of such Change in Control.

**3. Method of Exercise; Tax Withholding.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee may exercise the vested and exercisable portion of the Option, in whole or in part, by delivery of a written notice to the University setting forth the number of Shares with respect to which the Option is to be exercised, together with either (i) a certified check or bank draft payable to the order of the University for an amount equal to the sum of the Exercise Price for such Shares and any income taxes (subject to Section 3(b)) and employment taxes required to be withheld or (ii) both (x) an instruction to the University to undertake a "net exercise" procedure effected by withholding the minimum number of Shares otherwise deliverable in respect of the Option that are needed to pay for the Exercise Price of all Shares with respect to which the Option is to be exercised, and (y) a certified check or bank draft payable to the order of the University for an amount equal to any income taxes (subject to Section 3(b)) and employment taxes required to be withheld in connection with such exercise, or pursuant to any other method permitted under the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The University shall require, as a condition to the exercise of the Option, that the Grantee remit an amount in cash or, in the sole discretion of the University, Shares or other property, sufficient to satisfy all federal, state and local or other applicable income or employment tax withholding relating thereto. In addition, the University shall have the right and is hereby authorized to withhold from any compensation or other amount owing to the Grantee, the amount (in cash or, in the sole discretion of the University, Shares or other property) of any applicable income or employment tax withholding in respect of the exercise of the Option and to take such other action as may be necessary in the discretion of the University to satisfy all obligations for the payment of such taxes.

**4. Expiration.** In no event shall all or any portion of the Option be exercisable after the tenth annual anniversary of the Date of Grant (the "<u>Option Period</u>"). The Option is subject to earlier cancellation, termination or expiration pursuant to (i) Section 7 of the Plan, (ii) Section 7 or 10 hereof, (iii) Section 5 hereof, as applicable, or (iv) the exercise of the Repurchase Right pursuant to Section 6 hereof with respect to all or the portion of the Option repurchased.

**5. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Employment without Cause, Termination Due to Death or Disability, or Voluntary Termination by the Grantee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on or prior to an applicable Vesting Date, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause or due to the Grantee's Disability or (2) due to the Grantee's death: a prorated portion of the installment of the Option scheduled to vest on the Vesting Date next following such termination of employment shall vest and become and exercisable as of such Vesting Date, calculated as follows: (x) the installment of the Option that would have vested as of such Vesting Date but for such termination of employment based on the achievement of the applicable performance criteria (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year), multiplied by (y) a fraction, (i) the numerator of which is equal to the number of calendar days that have elapsed since the most recent Vesting Date (or, with respect to the first Vesting Date, since August 31, 2022) prior to the date of termination of employment and (ii) the denominator of which is equal to the total number of calendar days in the fiscal year ending on the Vesting Date next following such termination of employment. For the avoidance of doubt, if the applicable performance criteria are not satisfied with respect to such installment of the Option eligible for vesting following such termination in accordance with this Section 5(a)(i)(A), such installment shall remain unvested. Subject to Section 2(a)(iii) and 2(b)(iii) above, any remaining unvested portion of the Option shall be canceled immediately, and the Grantee shall forfeit for no consideration any rights to the Option Shares subject to such unvested portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, prior to the final Vesting Date, the Grantee's employment with the University and its Affiliates is terminated by Grantee for any reason, the unvested portion of the Option shall, subject to Section 2(b)(iii) above, be canceled immediately and the Grantee shall immediately forfeit any rights to the Option Shares subject to such unvested portion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If, prior to the end of the Option Period, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause or due to the Grantee's Disability, (2) by the Grantee for any reason, or (3) due to the Grantee's death, the vested portion of the Option (after giving effect to paragraph (i) above) shall expire on the earlier of (x) the last day of the Option Period and (y) the 90<sup>th</sup> day (or, in the case of any termination by the University due to the Grantee's Disability or due to the Grantee's death, the 365<sup>th</sup> day) following the later of (I) the date of such termination and (II) the date on which such Option vests and becomes exercisable hereunder; <u>provided</u>, that if the termination date occurs after a Vesting Date but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for the fiscal year ending on such Vesting Date, the time period set forth in this clause (y) shall be tolled with respect to the installment of the Option eligible to vest as of such vesting date until the Committee has certified such performance results. Following a termination described in this subsection (a), except as otherwise provided in this Agreement, the vested portion of the Option shall remain exercisable by the Grantee until its expiration in accordance with this Agreement only to the extent that the Option was exercisable at, or became exercisable following, the time of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment for Cause</u>. Notwithstanding anything herein to the contrary, if the Grantee's employment with the University and its Affiliates is terminated by the University or any of its Affiliates for Cause, the unvested and vested portion of the Option shall be canceled immediately, and the Grantee shall immediately forfeit for no consideration all rights to the Option Shares subject to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**6. Repurchase Right.** In the event of the termination of the Grantee's employment with the University and its Affiliates for any reason (a "<u>Repurchase Event</u>"), the Option and any Option Shares acquired upon exercise of the Option shall be subject to repurchase by the University as set forth in this Section 6 and the Stockholders' Agreement (except, with respect to Option Shares, to the extent set forth in Section 2.4 of the Stockholders' Agreement, so long as such section remains in effect). Capitalized terms used in this Section 6 and not otherwise defined in the Plan or this Agreement shall have the meanings ascribed to them in the Stockholders' Agreement to which the Grantee has or, as a condition to exercise of the Option, will become a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Call Right, Generally</u>. From and after a Repurchase Event, the University shall have the right, but not the obligation, to repurchase all or any portion of the vested Option and/or Option Shares held by the Grantee, in accordance with Section 10 of the Stockholders' Agreement, as modified by this Section 6 (the "<u>Repurchase Right</u>"). The University may exercise the Repurchase Right by written notice (a "<u>Repurchase Notice</u>") delivered to the Grantee within nine (9) months after the Repurchase Event; <u>provided</u>, that in respect of any portion of the Option that

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vests following the Repurchase Event and/or any Option Shares that are acquired by the Grantee following the Repurchase Event, the University may exercise the Repurchase Right until the date that is nine (9) months after the date such Option vests or such Option Shares are acquired, as applicable. Any repurchase described in the immediately preceding sentence shall be (i) with respect to Option Shares, for fair market value (as determined under the Stockholders' Agreement), and (ii) with respect to the vested Option, for the excess, if any, of the fair market value of the Option Shares underlying the vested Option over the Exercise Price, in each case except as set forth in subsection (b) below. The determination date for purposes of determining the fair market value in the preceding sentence shall be the closing date of the purchase of the subject vested Option and/or Option Shares (the "<u>Repurchase Date</u>"). Subject to Section 10.5 of the Stockholders' Agreement, the Repurchase Date with respect to any sale and repurchase of the vested Option and/or Option Shares pursuant to the exercise of the Repurchase Right shall take place on the later of (x) the date specified by the University, which shall in no event be later than thirty (30) days following the date of the Repurchase Notice, and (y) ten (10) days following the receipt by the University of all necessary governmental and other approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>University</u><u>'</u><u>s Call Right Upon Certain Terminations</u>. Notwithstanding anything contained herein to the contrary, in the event that the Grantee's employment relationship with the University or any of its Affiliates is terminated by the University or any of its Affiliates for Cause, then the University may exercise the Repurchase Right with respect to the Option Shares by delivering a Repurchase Notice to the Grantee within the time periods set forth in Section 6(a) above at a price equal to the lesser of (x) the Exercise Price paid to acquire such Option Shares, subject to adjustment by the University to reflect any stock split, recapitalization or similar adjustment to the Shares, and (y) the fair market value (as determined under the Stockholders' Agreement) of such Option Share on the Repurchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Apollo Call Right</u>. In accordance with Section 10.4 of the Stockholders' Agreement, the University shall provide prompt written notice to Apollo Education Group, Inc. ("<u>Apollo</u>") stating whether it has elected to exercise its Repurchase Right pursuant to Section 6(a) or (b) above. If such notice states that the University elects not to exercise its Repurchase Right for all or any portion of the applicable vested Option and/or Option Shares, Apollo (or its designee) shall have the right (exercisable by delivery of written notice to the Grantee on or before the later of (i) the 30<sup>th</sup> day following Apollo's receipt of such notice of election from the University and (ii) the expiration of the time periods set forth in Section 6(a) above) to purchase any such vested Option and/or Option Shares not purchased by the University on the same terms and conditions as those applicable to the University as set forth in Section 6(a) or (b) above, *mutatis mutandis*, as if Apollo were the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Repurchase Date shall take place on a date within thirty (30) days of the Repurchase Notice; <u>provided</u>, <u>however</u>, that the Repurchase Date may be deferred to the extent required to avoid liability under applicable securities laws, until such time as the Grantee has held the vested Option and/or Option Shares, as applicable, for a period of at least six (6) months and one (1) day. The purchase price shall be paid at the closing in the form of a check, wire transfer of immediately available funds, or by cancellation of money purchase indebtedness of the Grantee, as determined in the sole discretion of the University or Apollo, as applicable; <u>provided</u>, that all or any portion of the purchase price may be paid by way of a promissory note if the University is

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prohibited by law or under its third-party contractual obligations from repurchasing the Grantee's Option Shares and/or vested Options. The University or Apollo, as applicable, may effect repurchase of the vested Option and/or Option Shares and the University shall record such Transfer on its books whether or not the Grantee attends such closing or delivers certificates representing the vested Option and/or Option Shares to the University or Apollo (as the case may be). The Grantee hereby grants an irrevocable proxy and power of attorney that, it is agreed, is coupled with an interest to any nominee of the University or Apollo, as applicable, to take all necessary actions and execute and deliver all documents deemed necessary and appropriate by such nominee to effect the sale and purchase of the vested Option and/or Option Shares. The irrevocable and unconditional proxy and the power of attorney granted pursuant to this Section 6(d) is intended to be, and is, attached to the vested Option and/or Option Shares and shall survive for the duration of the Option or the Stockholders' Agreement, respectively if the Grantee fails to take all necessary actions and execute and deliver all documents necessary and appropriate to fulfill Grantee's obligations under this Section 6, the Grantee shall, to the fullest extent permitted by law, indemnify, defend and hold harmless such nominee, its officers, directors, employees, counsel, representatives, agents and partners against all claims, liability, loss or damage (or actions in respect thereof), together with all reasonable costs and expenses (including reasonable legal fees and expenses, and expenses incurred in settlement of any litigation commenced or threatened), relating to or arising from such nominee's exercise of the proxy and power of attorney granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 6, the Stockholders' Agreement shall be modified as follows:

If University Common Stock (including, without limitation, Award Shares and Deemed Held Shares) held by the Redeemed Holder is being valued pursuant to Section 10 of the Stockholders' Agreement and the Redeemed Holder disagrees with the valuation determined by the Compensation Committee and the amount in dispute is at least $25,000, the Redeemed Holder may elect by written notice to the University, within fifteen (15) business days of being advised of the determination of the Compensation Committee, to have the Fair Market Value of the University Common Stock determined by an independent appraiser, the selection of which shall be subject to the mutual agreement of the Compensation Committee and the Redeemed Holder (it being understood that any such determination by the independent appraiser shall be made without regard to the percentage of the University's then-outstanding University Common Stock that is represented by the University Common Stock subject to such determination or any illiquidity or minority discount or control premium); <u>provided</u>, <u>however</u>, that the Redeemed Holder shall have no right to seek such an independent appraisal if the Compensation Committee has based its good faith determination of the Fair Market Value of the University Common Stock, made in accordance with Section 10 of the Stockholders' Agreement, on a valuation provided by an independent financial advisor or appraisal firm to the Compensation Committee in the six (6) months preceding the date on which the Compensation Committee has made such determination, or if the Fair Market Value of the University Common Stock is based on the value of University Common Stock in connection with a Change in

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Control. The fees and expenses of any such independent appraiser shall be borne equally by the University and the Redeemed Holder; <u>provided</u>, <u>however</u>, that if the valuation of the University Common Stock furnished by such independent appraiser is greater than 120% of the determination of such Fair Market Value of the University Common Stock made by the Compensation Committee pursuant to Section 10 of the Stockholders' Agreement, then the University shall bear 100% of the reasonable, documented fees and expenses of such independent appraiser. The determination by the independent appraiser shall be final, binding and non-appealable.

**7. Restrictive Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the Options or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the Options shall terminate and any outstanding portion of such Options (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 7(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Competition</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of one year thereafter, the Grantee shall not (without the prior written consent of the University), directly or indirectly, (i) engage in any Competitive Business, or (ii) acquire a financial interest in any Competitive Business. For purposes of this Section 7(b): (A) the phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers), and (B) the term "<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University and any for-profit institution of higher learning and any not-for-profit educational institution that competes with the business of the Company and its Affiliates. Notwithstanding the foregoing, nothing herein shall prohibit the Grantee from being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant). The obligations of the Grantee under this Section 7(b) shall apply to (x) any geographic area or territory in which the University or any of its Affiliates is engaged in business as of the date of Grantee's termination of employment, and (y) any prospective geographic area or territory that within the six months preceding the date of termination of the Grantee's employment, has been the subject of serious consideration by the University or any of its Affiliates as a business location and which the Grantee is or has been made aware of. For purposes of this Section 7(b), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly: (i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates to terminate their relationship with or leave the employ of the University or any such Affiliate, or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any officer, director or employee thereof, on the other hand, (ii) hire (or other similar arrangement) any Person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was an officer, director or employee of the University or any of its Affiliates until six (6) months after such individual's relationship (whether as an officer, director or employee) with the University or such Affiliate has ended, or (iii) induce or attempt to induce any customer, supplier, prospect licensee or other business relation of the University or any of its Affiliates to cease doing, or reduce the amount of, business with the University or such Affiliate; <u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 7(c). For purposes of this Section 7(c), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers. The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 7(d), "Affiliates" shall not include other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's

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compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever. As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without

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limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 7(f) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Whistleblower Protection</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 7 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 7 is reasonable and necessary for the protection of the legitimate business interests of the University and is

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reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 7 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 7, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 7 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Forfeiture; Other Relief</u>. **In the event of a material breach by the Grantee of the restrictive covenants set forth in this Section 7, then in addition to any other remedy that may be available at law or in equity, the Option shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that the Grantee has previously exercised all or any portion of the Option within the three (3) year period immediately preceding such breach, the Grantee shall forfeit such Option Shares without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any proceeds received by the Grantee upon disposition of the Option Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 12(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 7, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 7, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability; Blue Pencil</u>. The invalidity or nonenforceability of any provision of this Section 7 in any respect shall not affect the validity or enforceability of the other provisions of this Section 7 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 7 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>,

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 <u>however</u>, that if any provision of this Section 7 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**8. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares subject to this Option unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement) and (ii) such Option shall have been exercised pursuant to its terms (including, without limitation, the satisfaction of all conditions under Section 3 hereof).

**9. Compliance with Legal Requirements.** The granting and exercising of the Option, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the Option as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the exercise of the Option at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such exercise shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the exercise of the Option which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**10. Clawback.** The Option and/or the Option Shares shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

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**11. Litigation Cooperation**. The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will make Grantee reasonably available (taking into account personal and private obligations) to assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**12. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect. In the event of the Grantee's death, the Option shall thereafter be exercisable (to the extent otherwise exercisable hereunder) only by the Grantee's executors or administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 12(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 12 shall be borne by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If requested by the Grantee, the University agrees to use reasonable best efforts to solicit the approval of its stockholders, to the extent and in the manner required under Section 280G(b)(5)(B) of the Code and the regulations promulgated thereunder, of any "parachute payments" waived by the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The Option is not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 12(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the Option or the Option Shares will not be subject to interest and penalties under Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, Arizona 85040

Attention: General Counsel

Email: [•]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address on file with the University.

All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by email, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee

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has no right or entitlement to receive future awards under the Plan. Neither the grant of the Option nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from any exercise of the Option, resulting from an adjustment of the Option pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 12(n)(ii) or 12(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to

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prevent any continuation of any violation of the provisions of Sections 7 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 12(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 12(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 7, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 7, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 7 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of Grantee's participation in the Plan that any personal data in relation to Grantee may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that, except as required by law or while carrying out duties for the University in good faith, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the Option or any of the terms or provisions hereof without the prior approval of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
|  THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
|  By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

---

*[Signature Page to Option Grant Certificate]*

## Exhibit 10.9

**Exhibit 10.9** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**RESTRICTED STOCK UNIT** 

**GRANT CERTIFICATE** 

**THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>"), pursuant to which restricted stock units ("<u>RSUs</u>") may be granted;

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the RSUs provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee a total of **[ ] RSUs**, on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The RSUs shall be credited to a book entry account maintained for the Grantee on the books of the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 11(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the delivery of all or any portion of the Shares underlying the RSUs, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Forfeiture; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Schedule</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The RSUs shall become vested in installments on each Vesting Date as set forth below, provided that (A) subject to Sections 2(b)(iii) and 4(a)(i)(A) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through such Vesting Date and (B) subject to Section 2(b) below, the performance criteria described in this Section 2(a) are met with respect to the fiscal year of the University that ends on the applicable Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) Subject to clause (C) below, sixteen and two-thirds percent (16 and 2/3%) of the RSUs will vest on each of the first three (3) anniversaries of August 31, 2022 (each a "Vesting Date") if the University's Annual EBITDA (as defined in <u>Exhibit</u> <u>A</u> attached hereto) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual EBITDA Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) Subject to clause (C) below, sixteen and two-thirds percent (16 and 2/3%) of the RSUs will vest on each Vesting Date if the University's Annual Free Cash Flow (as defined in <u>Exhibit</u> <u>A</u>) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual Free Cash Flow Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) If any installment of the RSUs does not vest as of a Vesting Date because (1) the Annual EBITDA Target was not achieved pursuant to clause (A) above, or (2) the Annual Free Cash Flow Target was not achieved pursuant to clause (B) above, such installment shall remain eligible to vest upon any future Vesting Date, subject to the Grantee's continued employment through such Vesting Date (except as provided by Sections 2(b) and 4(a)(i) below), if the University's Cumulative EBITDA or Cumulative Free Cash Flow, as applicable, for the fiscal year that ends on such Vesting Date equals or exceeds the Cumulative EBITDA Target or Cumulative Free Cash Flow Target, as applicable, for such fiscal year (as such terms are defined in <u>Exhibit</u> <u>A</u> and as such targets are specified on <u>Exhibit</u> <u>A</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By way of example and for illustration purposes only, if the Annual EBITDA Target for the first, second and third fiscal years were $100 million, $200 million and $300 million, respectively, and actual achievement of such targets were $150 million, $170 million and $330 million, respectively, then (1) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the first fiscal year shall vest on the first scheduled Vesting Date (because Annual EBITDA exceeded the Annual EBITDA Target by $50 million); (2) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the second fiscal year shall not vest on the second Vesting Date because Annual EBITDA fell short of the Annual EBITDA Target by $30 million, and the Cumulative EBITDA through the second fiscal year (which is only $270 million for this purpose, since the excess of $50 million over the Annual EBITDA Target in the first fiscal year is disregarded) also fell short of the Cumulative EBITDA Target by $30 million; (3) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the third fiscal year shall vest on the third

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Vesting Date (because Annual EBITDA exceeded the Annual EBITDA Target by $30 million); and (4) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the second fiscal year also vests on the third Vesting Date because Cumulative EBITDA through the third fiscal year (which is $600 million for this purpose, taking into account the excess in the third fiscal year but disregarding the excess in the first fiscal year) satisfied the Cumulative EBITDA Target of $600 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The determination of the achievement of the performance criteria described in this Section 2(a) shall be subject to the Committee's certification for the applicable fiscal year for purposes of this Agreement based on the University's audited financials for such fiscal year. If the Grantee's employment terminates for any reason other than by the University or any of its Affiliates for Cause after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the RSUs that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The EBITDA and Free Cash Flow Targets (including the Cumulative EBITDA Targets and Cumulative Free Cash Flow Targets) specified in <u>Exhibit A</u> are based upon certain revenue and expense assumptions about the future business of the University as of the Date of Grant. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion, that any acquisition or disposition of any of the businesses of the University or its subsidiaries, or any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the University, issuance of warrants or other rights to purchase Shares or other securities of the University, any unusual or nonrecurring transactions or events affecting the University, or the financial statements of the University, or change in applicable laws, regulations, or accounting principles has occurred such that an adjustment is determined by the Committee in good faith to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the RSUs, then the Committee shall, in good faith and in such manner as it may deem equitable, adjust the performance targets set forth on <u>Exhibit A</u> to reflect the projected effect of such transaction(s) or event(s) on EBITDA and/or Free Cash Flow, subject to Section 7 of the Plan (including, without limitation, the Committee's ability to determine other equitable adjustments).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Change in Control, subject to the Grantee's continued employment through the effective date of a Change in Control, the annual performance targets set forth in Section 2(a) with respect to the fiscal year in which the Change in Control occurs and all future fiscal years shall be deemed met, and the RSUs shall become vested with respect to the installments relating to such fiscal years, as of the effective date of the Change in Control; <u>provided</u>, <u>however</u>, that any installment of the RSUs that was eligible to vest, but did not vest in accordance with Section 2(a)(ii), upon a Vesting Date occurring prior to the Change in Control because the applicable performance criteria were not met shall be forfeited and shall no longer remain outstanding as of immediately prior to such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Change in Control occurs after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the RSUs that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the effective date of a Change in Control occurs during the ninety (90) day period beginning on such date of termination, then immediately prior to the effective date of the Change in Control (and subject to the consummation of such Change in Control), the RSUs shall vest or terminate, as applicable, in accordance with Section 2(b)(i) and (ii) above as if the Grantee had remained employed through the consummation of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Except as otherwise provided herein, each vested RSU shall be settled as promptly as reasonably practicable following the applicable date of vesting (but in any event by March 15 of the year following the year in which such vesting occurred).

**3. Tax Withholding.** Settlement of the RSUs shall be subject to the Grantee satisfying all applicable U.S. federal, state and local and non-U.S. income or employment tax withholding obligations. The University shall have the right and is hereby authorized to withhold from any amounts payable to the Grantee in connection with the RSUs or otherwise the amount of any applicable income or employment tax withholding obligations, and the University may take any such other action as it or the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Grantee may elect to satisfy, and the University may require the Grantee to satisfy, in whole or in part, the applicable tax obligations by withholding Shares that would otherwise be deliverable to the Grantee upon settlement of the RSUs with a Fair Market Value equal to such withholding liability.

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**4. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Employment without Cause or Due to Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on or prior to an applicable Vesting Date, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause, (2) due to the Grantee's Disability, or (3) due to the Grantee's death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a prorated portion of the installment of the RSUs scheduled to vest on the Vesting Date next following such termination of employment shall vest as of such Vesting Date, calculated as follows: (x) the installment of the RSUs that would have vested as of such Vesting Date but for such termination of employment based on the achievement of the applicable performance criteria (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year), multiplied by (y) a fraction, (i) the numerator of which is equal to the number of calendar days that have elapsed since the most recent Vesting Date prior to the date of termination of employment or, if no such Vesting Date has yet occurred, since August 31, 2022, and (ii) the denominator of which is equal to the total number of calendar days in the fiscal year ending on the Vesting Date next following such termination of employment. For the avoidance of doubt, if the applicable performance criteria are not satisfied with respect to such installment of the RSUs eligible for vesting following such termination in accordance with this Section 4(a)(i)(A), such installment shall remain unvested. Subject to Section 2(a)(iii) and 2(b)(iv) above, any remaining unvested portion of the RSUs shall be canceled immediately, and the Grantee shall forfeit for no consideration any rights to the Shares subject to such unvested portion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each vested RSU shall be settled as set forth in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment by Grantee</u>. If, prior to the final Vesting Date, the Grantee's employment with the University and its Affiliates is terminated by Grantee for any reason, the unvested portion of the RSUs shall, subject to Section 2(a)(iii) above, be canceled immediately and the Grantee shall immediately forfeit any rights to the Shares subject to such unvested portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment for Cause</u>. Notwithstanding anything herein to the contrary, if the Grantee's employment with the University and its Affiliates is terminated by the University or any of its Affiliates for Cause, all outstanding RSUs (whether vested or unvested) shall be canceled immediately, and the Grantee shall immediately forfeit for no consideration all rights to the Shares subject to the RSUs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**5. Repurchase Right.** In the event of the termination of the Grantee's employment with the University and its Affiliates for any reason (a "<u>Repurchase Event</u>"), any Shares acquired upon the settlement of such RSUs (the "<u>RSU Shares</u>") shall be subject to repurchase by the University as set forth in this Section 5 and the Stockholders' Agreement (except, to the extent set forth in Section 2.4 of the Stockholders' Agreement, so long as such section remains in effect). Capitalized terms used in this Section 5 and not otherwise defined in the Plan or this Agreement shall have the meanings ascribed to them in the Stockholders' Agreement to which the Grantee has or, as a condition to receipt of such Shares, will become a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Call Right, Generally</u>. From and after a Repurchase Event, the University shall have the right, but not the obligation, to repurchase all or any portion of the RSU Shares held by the Grantee, in accordance with Section 10 of the Stockholders' Agreement, as modified by this Section 5 (the "<u>Repurchase Right</u>"). The University may exercise the Repurchase Right by written notice (a "<u>Repurchase Notice</u>") delivered to the Grantee within nine (9) months after the Repurchase Event; <u>provided</u>, that in respect of any RSU Shares that are acquired by the Grantee following the Repurchase Event, the University may exercise the Repurchase Right until the date that is nine (9) months after the date such RSU Shares are acquired, as applicable. Any repurchase described in the immediately preceding sentence shall be for fair market value (as determined under the Stockholders' Agreement). The determination date for purposes of determining the fair market value in the preceding sentence shall be the closing date of the purchase of the subject RSU Shares (the "<u>Repurchase Date</u>"). Subject to Section 10.5 of the Stockholders' Agreement, the Repurchase Date with respect to any sale and repurchase of the RSU Shares pursuant to the exercise of the Repurchase Right shall take place on the later of (x) the date specified by the University, which shall in no event be later than thirty (30) days following the date of the Repurchase Notice, and (y) ten (10) days following the receipt by the University of all necessary governmental and other approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>University</u><u>'</u><u>s Call Right Upon Certain Terminations</u>. Notwithstanding anything contained herein to the contrary, in the event that the Grantee's employment relationship with the University or any of its Affiliates is terminated by the University or any of its Affiliates for Cause, then any RSU Shares shall be forfeited for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Apollo Call Right</u>. In accordance with Section 10.4 of the Stockholders' Agreement, the University shall provide prompt written notice to Apollo Education Group, Inc. ("<u>Apollo</u>") stating whether it has elected to exercise its Repurchase Right pursuant to Section 5(a) or (b) above. If such notice states that the University elects not to exercise its Repurchase Right for all or any portion of the applicable RSU Shares, Apollo (or its designee) shall have the right (exercisable by delivery of written notice to the Grantee on or before the later of (i) the 30<sup>th</sup> day following Apollo's receipt of such notice of election from the University and (ii) the expiration of the time periods set forth in Section 5(a) above) to purchase any such RSU Shares not purchased by the University on the same terms and conditions as those applicable to the University as set forth in Section 5(a) or (b) above, *mutatis mutandis*, as if Apollo were the University.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Repurchase Date shall take place on a date within thirty (30) days of the Repurchase Notice; <u>provided</u>, <u>however</u>, that the Repurchase Date may be deferred to the extent required to avoid liability under applicable securities laws, until such time as the Grantee has held the RSU Shares, as applicable, for a period of at least six (6) months and one (1) day. The purchase price shall be paid at the closing in the form of a check, wire transfer of immediately available funds, or by cancellation of money purchase indebtedness of the Grantee, as determined in the sole discretion of the University or Apollo, as applicable; <u>provided</u>, that all or any portion of the purchase price may be paid by way of a promissory note if the University is prohibited by law or under its third-party contractual obligations from repurchasing the Grantee's RSU Shares. The University or Apollo, as applicable, may effect repurchase of the RSU Shares and the University shall record such Transfer on its books whether or not the Grantee attends such closing or delivers certificates representing the RSU Shares to the University or Apollo (as the case may be). The Grantee hereby grants an irrevocable proxy and power of attorney that, it is agreed, is coupled with an interest to any nominee of the University or Apollo, as applicable, to take all necessary actions and execute and deliver all documents deemed necessary and appropriate by such nominee to effect the sale and purchase of the RSU Shares. The irrevocable and unconditional proxy and the power of attorney granted pursuant to this Section 5(d) is intended to be, and is, attached to the RSU Shares and shall survive for the duration of the RSUs or the Stockholders' Agreement, respectively if the Grantee fails to take all necessary actions and execute and deliver all documents necessary and appropriate to fulfill Grantee's obligations under this Section 5, the Grantee shall, to the fullest extent permitted by law, indemnify, defend and hold harmless such nominee, its officers, directors, employees, counsel, representatives, agents and partners against all claims, liability, loss or damage (or actions in respect thereof), together with all reasonable costs and expenses (including reasonable legal fees and expenses, and expenses incurred in settlement of any litigation commenced or threatened), relating to or arising from such nominee's exercise of the proxy and power of attorney granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 5, the Stockholders' Agreement shall be modified as follows:

If University Common Stock (including, without limitation, Award Shares and Deemed Held Shares) held by the Redeemed Holder is being valued pursuant to Section 10 of the Stockholders' Agreement and the Redeemed Holder disagrees with the valuation determined by the Compensation Committee and the amount in dispute is at least $25,000, the Redeemed Holder may elect by written notice to the University, within fifteen (15) business days of being advised of the determination of the Compensation Committee, to have the Fair Market Value of the University Common Stock determined by an independent appraiser, the selection of which shall be subject to the mutual agreement of the Compensation Committee and the Redeemed Holder (it being understood that any such determination by the independent appraiser shall be made without regard to the percentage of the University's then-outstanding University Common Stock that is represented by the University Common Stock subject to such determination or any illiquidity or

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minority discount or control premium); <u>provided</u>, <u>however</u>, that the Redeemed Holder shall have no right to seek such an independent appraisal if the Compensation Committee has based its good faith determination of the Fair Market Value of the University Common Stock, made in accordance with Section 10 of the Stockholders' Agreement, on a valuation provided by an independent financial advisor or appraisal firm to the Compensation Committee in the six (6) months preceding the date on which the Compensation Committee has made such determination, or if the Fair Market Value of the University Common Stock is based on the value of University Common Stock in connection with a Change in Control. The fees and expenses of any such independent appraiser shall be borne equally by the University and the Redeemed Holder; <u>provided</u>, <u>however</u>, that if the valuation of the University Common Stock furnished by such independent appraiser is greater than 120% of the determination of such Fair Market Value of the University Common Stock made by the Compensation Committee pursuant to Section 10 of the Stockholders' Agreement, then the University shall bear 100% of the reasonable, documented fees and expenses of such independent appraiser. The determination by the independent appraiser shall be final, binding and non-appealable.

**6. Restrictive Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the RSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the RSUs shall terminate and any outstanding portion of such RSUs (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Competition</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of one year thereafter, the Grantee shall not (without the prior written consent of the University), directly or indirectly, (i) engage in any Competitive Business, (ii) render any services to any Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the University or any of its Affiliates, or (iii) acquire a financial interest in any Competitive Business. For purposes of this Section 6(b): (A) the phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers), and (B) the term "<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning and any not-for-profit educational institution that competes with the business of the University and its Affiliates. Notwithstanding the foregoing, nothing herein shall prohibit the Grantee from being a passive owner of not more

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than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant). The obligations of the Grantee under this Section 6(b) shall apply to (x) any geographic area or territory in which the University or any of its Affiliates is engaged in business as of the date of Grantee's termination of employment, and (y) any prospective geographic area or territory that within the six months preceding the date of termination of the Grantee's employment, has been the subject of serious consideration by the University or any of its Affiliates as a business location and which the Grantee is or has been made aware of. For purposes of this Section 6(b), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly: (i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates to terminate their relationship with or leave the employ of the University or any such Affiliate, or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any officer, director or employee thereof, on the other hand, (ii) hire (or other similar arrangement) any Person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was an officer, director or employee of the University or any of its Affiliates until six (6) months after such individual's relationship (whether as an officer, director or employee) with the University or such Affiliate has ended, or (iii) induce or attempt to induce any customer, supplier, prospect licensee or other business relation of the University or any of its Affiliates to cease doing business with the University or such Affiliate, or in any way interfere or attempt to interfere with the relationship between any such customer, supplier, prospect licensee or business relation, on the one hand, and the University or any such Affiliate, on the other hand; <u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(c). For purposes of this Section 6(c), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers. The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(d), "Affiliates" shall not include other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its

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subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever. As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 6(f) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Whistleblower Protection</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Forfeiture; Other Relief</u>. **In the event of a material breach by the Grantee of the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any RSUs have been settled within the three (3) year period immediately preceding such breach, the Grantee shall forfeit any Shares received upon such settlement without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Grantee upon settlement of such RSUs or upon disposition of the Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and

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the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability; Blue Pencil</u>. The invalidity or nonenforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares underlying the RSUs unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement), and (ii) the Grantee's name shall have been entered as a stockholder of record with respect to such Shares on the books of the University. The University shall cause the actions described in clause (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

**8. Compliance with Legal Requirements.** The granting and settlement of the RSUs, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the RSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the settlement of the RSUs at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University

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be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the settlement of the RSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**9. Clawback.** The RSUs and/or the Shares acquired upon settlement of the RSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

**10. Litigation Cooperation**. The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the RSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the RSUs, shall be null and void and without effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 11 shall be borne by the University.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The RSUs are not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the RSUs will not be subject to interest and penalties under Section 409A, and in no event whatsoever shall the University or any of its Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Grantee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, AZ 85040

Attention: General Counsel

Email: [●]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the RSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from settlement of the RSUs, adjustment of the RSUs pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of their participation in the Plan that any personal data in relation to them may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
| THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
| By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

---

*[Signature Page to Restricted Stock Unit Grant Certificate]*

## Exhibit 10.10

**Exhibit 10.10** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**RESTRICTED STOCK UNIT** 

**GRANT CERTIFICATE** 

**THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>"), pursuant to which restricted stock units ("<u>RSUs</u>") may be granted;

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the RSUs provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee a total of **[ ] RSUs**, on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The RSUs shall be credited to a book entry account maintained for the Grantee on the books of the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 11(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the delivery of all or any portion of the Shares underlying the RSUs, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Forfeiture; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Schedule</u>. The RSUs shall become vested in three (3) equal installments on each of the first three (3) anniversaries of August 31, 2022 (each a "<u>Vesting Date</u>"), provided that, subject to Sections 2(b)(ii) and 4(a)(i)(A) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through such Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Change in Control, the RSUs, to the extent unvested, shall become fully vested, subject to the Grantee's continued employment through the effective date of a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the effective date of a Change in Control occurs during the ninety (90) day period beginning on such date of termination, then immediately prior to the effective date of the Change in Control (and subject to the consummation of such Change in Control), the RSUs shall vest or terminate, as applicable, in accordance with Section 2(b)(i) above as if the Grantee had remained employed through the consummation of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Except as otherwise provided herein, each vested RSU shall be settled as promptly as reasonably practicable following the applicable Vesting Date (but in any event by March 15 of the year following the year in which such vesting occurred).

**3. Tax Withholding.** Settlement of the RSUs shall be subject to the Grantee satisfying all applicable U.S. federal, state and local and non-U.S. income or employment tax withholding obligations. The University shall have the right and is hereby authorized to withhold from any amounts payable to the Grantee in connection with the RSUs or otherwise the amount of any applicable income or employment tax withholding obligations, and the University may take any such other action as it or the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Grantee may elect to satisfy, and the University may require the Grantee to satisfy, in whole or in part, the applicable tax obligations by withholding Shares that would otherwise be deliverable to the Grantee upon settlement of the RSUs with a Fair Market Value equal to such withholding liability.

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**4. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Employment without Cause or Due to Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on or prior to an applicable Vesting Date, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause, (2) due to the Grantee's Disability, or (3) due to the Grantee's death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a prorated portion of the installment of the RSUs scheduled to vest on the Vesting Date next following such termination of employment shall vest as of the date of such termination of employment, calculated as follows: (x) thirty three and one third percent (33 and 1/3%) of the RSUs multiplied by (y) a fraction, (i) the numerator of which is equal to the number of calendar days that have elapsed since the most recent Vesting Date prior to the date of termination of employment or, if no such Vesting Date has yet occurred, since August 31, 2022, and (ii) the denominator of which is equal to the total number of calendar days in the fiscal year ending on the Vesting Date next following such termination of employment. Subject to Section 2(b)(ii) above, any remaining unvested portion of the RSUs shall be canceled immediately and the Grantee shall immediately forfeit for no consideration any rights to the Shares subject to such unvested portion as of such termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each vested RSU shall be settled as set forth in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment by Grantee</u>. If, prior to the final Vesting Date, the Grantee's employment with the University and its Affiliates is terminated by Grantee for any reason, the unvested portion of the RSUs shall be canceled immediately and the Grantee shall immediately forfeit any rights to the Shares subject to such unvested portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment for Cause</u>. Notwithstanding anything herein to the contrary, if the Grantee's employment with the University and its Affiliates is terminated by the University or any of its Affiliates for Cause, all outstanding RSUs (whether vested or unvested) shall be canceled immediately, and the Grantee shall immediately forfeit for no consideration all rights to the Shares subject to the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**5. Repurchase Right.** In the event of the termination of the Grantee's employment with the University and its Affiliates for any reason (a "<u>Repurchase Event</u>"), any Shares acquired upon the settlement of such RSUs (the "<u>RSU Shares</u>") shall be subject to repurchase by the University as set forth in this Section 5 and the Stockholders' Agreement (except, to the extent set forth in Section 2.4 of the Stockholders' Agreement, so long as such section remains in effect). Capitalized terms used in this Section 5 and not otherwise defined in the Plan or this Agreement shall have the meanings ascribed to them in the Stockholders' Agreement to which the Grantee has or, as a condition to receipt of such Shares, will become a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Call Right, Generally</u>. From and after a Repurchase Event, the University shall have the right, but not the obligation, to repurchase all or any portion of the RSU Shares held by the Grantee, in accordance with Section 10 of the Stockholders' Agreement, as modified by this Section 5 (the "<u>Repurchase Right</u>"). The University may exercise the Repurchase Right by written

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notice (a "<u>Repurchase Notice</u>") delivered to the Grantee within nine (9) months after the Repurchase Event; <u>provided</u>, that in respect of any RSU Shares that are acquired by the Grantee following the Repurchase Event, the University may exercise the Repurchase Right until the date that is nine (9) months after the date such RSU Shares are acquired, as applicable. Any repurchase described in the immediately preceding sentence shall be for fair market value (as determined under the Stockholders' Agreement). The determination date for purposes of determining the fair market value in the preceding sentence shall be the closing date of the purchase of the subject RSU Shares (the "<u>Repurchase Date</u>"). Subject to Section 10.5 of the Stockholders' Agreement, the Repurchase Date with respect to any sale and repurchase of the RSU Shares pursuant to the exercise of the Repurchase Right shall take place on the later of (x) the date specified by the University, which shall in no event be later than thirty (30) days following the date of the Repurchase Notice, and (y) ten (10) days following the receipt by the University of all necessary governmental and other approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>University</u><u>'</u><u>s Call Right Upon Certain Terminations</u>. Notwithstanding anything contained herein to the contrary, in the event that the Grantee's employment relationship with the University or any of its Affiliates is terminated by the University or any of its Affiliates for Cause, then any RSU Shares shall be forfeited for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Apollo Call Right</u>. In accordance with Section 10.4 of the Stockholders' Agreement, the University shall provide prompt written notice to Apollo Education Group, Inc. ("<u>Apollo</u>") stating whether it has elected to exercise its Repurchase Right pursuant to Section 5(a) or (b) above. If such notice states that the University elects not to exercise its Repurchase Right for all or any portion of the applicable RSU Shares, Apollo (or its designee) shall have the right (exercisable by delivery of written notice to the Grantee on or before the later of (i) the 30<sup>th</sup> day following Apollo's receipt of such notice of election from the University and (ii) the expiration of the time periods set forth in Section 5(a) above) to purchase any such RSU Shares not purchased by the University on the same terms and conditions as those applicable to the University as set forth in Section 5(a) or (b) above, *mutatis mutandis*, as if Apollo were the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Repurchase Date shall take place on a date within thirty (30) days of the Repurchase Notice; <u>provided</u>, <u>however</u>, that the Repurchase Date may be deferred to the extent required to avoid liability under applicable securities laws, until such time as the Grantee has held the RSU Shares, as applicable, for a period of at least six (6) months and one (1) day. The purchase price shall be paid at the closing in the form of a check, wire transfer of immediately available funds, or by cancellation of money purchase indebtedness of the Grantee, as determined in the sole discretion of the University or Apollo, as applicable; <u>provided</u>, that all or any portion of the purchase price may be paid by way of a promissory note if the University is prohibited by law or under its third-party contractual obligations from repurchasing the Grantee's RSU Shares. The University or Apollo, as applicable, may effect repurchase of the RSU Shares and the University shall record such Transfer on its books whether or not the Grantee attends such closing or delivers certificates representing the RSU Shares to the University or Apollo (as the case may be). The Grantee hereby grants an irrevocable proxy and power of attorney that, it is agreed, is coupled with an interest to any nominee of the University or Apollo, as applicable, to take all necessary actions and execute and deliver all documents deemed necessary and appropriate by such nominee to effect the sale and purchase of the RSU Shares. The irrevocable and unconditional proxy and the power

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of attorney granted pursuant to this Section 5(d) is intended to be, and is, attached to the RSU Shares and shall survive for the duration of the RSUs or the Stockholders' Agreement, respectively if the Grantee fails to take all necessary actions and execute and deliver all documents necessary and appropriate to fulfill Grantee's obligations under this Section 5, the Grantee shall, to the fullest extent permitted by law, indemnify, defend and hold harmless such nominee, its officers, directors, employees, counsel, representatives, agents and partners against all claims, liability, loss or damage (or actions in respect thereof), together with all reasonable costs and expenses (including reasonable legal fees and expenses, and expenses incurred in settlement of any litigation commenced or threatened), relating to or arising from such nominee's exercise of the proxy and power of attorney granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 5, the Stockholders' Agreement shall be modified as follows:

If University Common Stock (including, without limitation, Award Shares and Deemed Held Shares) held by the Redeemed Holder is being valued pursuant to Section 10 of the Stockholders' Agreement and the Redeemed Holder disagrees with the valuation determined by the Compensation Committee and the amount in dispute is at least $25,000, the Redeemed Holder may elect by written notice to the University, within fifteen (15) business days of being advised of the determination of the Compensation Committee, to have the Fair Market Value of the University Common Stock determined by an independent appraiser, the selection of which shall be subject to the mutual agreement of the Compensation Committee and the Redeemed Holder (it being understood that any such determination by the independent appraiser shall be made without regard to the percentage of the University's then-outstanding University Common Stock that is represented by the University Common Stock subject to such determination or any illiquidity or minority discount or control premium); <u>provided</u>, <u>however</u>, that the Redeemed Holder shall have no right to seek such an independent appraisal if the Compensation Committee has based its good faith determination of the Fair Market Value of the University Common Stock, made in accordance with Section 10 of the Stockholders' Agreement, on a valuation provided by an independent financial advisor or appraisal firm to the Compensation Committee in the six (6) months preceding the date on which the Compensation Committee has made such determination, or if the Fair Market Value of the University Common Stock is based on the value of University Common Stock in connection with a Change in Control. The fees and expenses of any such independent appraiser shall be borne equally by the University and the Redeemed Holder; <u>provided</u>, <u>however</u>, that if the valuation of the University Common Stock furnished by such independent appraiser is greater than 120% of the determination of such Fair Market Value of the University Common Stock made by the Compensation Committee pursuant to Section 10 of the Stockholders' Agreement, then the University shall bear 100% of the reasonable, documented fees and expenses of such independent appraiser. The determination by the independent appraiser shall be final, binding and non-appealable.

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**6. Restrictive Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality of this Agreement</u>. The Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the RSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the RSUs shall terminate and any outstanding portion of such RSUs (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Competition</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of one year thereafter, the Grantee shall not (without the prior written consent of the University), directly or indirectly, (i) engage in any Competitive Business, (ii) render any services to any Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the University or any of its Affiliates, or (iii) acquire a financial interest in any Competitive Business. For purposes of this Section 6(b): (A) the phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers), and (B) the term "<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning and any not-for-profit educational institution that competes with the business of the University and its Affiliates. Notwithstanding the foregoing, nothing herein shall prohibit the Grantee from being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant). The obligations of the Grantee under this Section 6(b) shall apply to (x) any geographic area or territory in which the University or any of its Affiliates is engaged in business as of the date of Grantee's termination of employment, and (y) any prospective geographic area or territory that within the six months preceding the date of termination of the Grantee's employment, has been the subject of serious consideration by the University or any of its Affiliates as a business location and which the Grantee is or has been made aware of. For purposes of this Section 6(b), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly: (i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates to terminate their relationship with or leave the employ of the University or any such

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Affiliate, or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any officer, director or employee thereof, on the other hand, (ii) hire (or other similar arrangement) any Person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was an officer, director or employee of the University or any of its Affiliates until six (6) months after such individual's relationship (whether as an officer, director or employee) with the University or such Affiliate has ended, or (iii) induce or attempt to induce any customer, supplier, prospect licensee or other business relation of the University or any of its Affiliates to cease doing business with the University or such Affiliate, or in any way interfere or attempt to interfere with the relationship between any such customer, supplier, prospect licensee or business relation, on the one hand, and the University or any such Affiliate, on the other hand; <u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(c). For purposes of this Section 6(c), "Affiliates" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers. The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(d), "Affiliates" shall not include other portfolio companies of Apollo (*i.e.*, entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever. As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and

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irrevocably waives the enforcement of such Proprietary Rights. This Section 6(f) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Whistleblower Protection</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any

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noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Forfeiture; Other Relief</u>. **In the event of a material breach by the Grantee of the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any RSUs have been settled within the three (3) year period immediately preceding such breach, the Grantee shall forfeit any Shares received upon such settlement without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Grantee upon settlement of such RSUs or upon disposition of the Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability; Blue Pencil</u>. The invalidity or nonenforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

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**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares underlying the RSUs unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement), and (ii) the Grantee's name shall have been entered as a stockholder of record with respect to such Shares on the books of the University. The University shall cause the actions described in clause (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

**8. Compliance with Legal Requirements.** The granting and settlement of the RSUs, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the RSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the settlement of the RSUs at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the settlement of the RSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**9. Clawback.** The RSUs and/or the Shares acquired upon settlement of the RSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

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**10. Litigation Cooperation**. The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the RSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the RSUs, shall be null and void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section 280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments

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shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 11 shall be borne by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section 409A</u>. The RSUs are not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the RSUs will not be subject to interest and penalties under Section 409A, and in no event whatsoever shall the University or any of its Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Grantee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, AZ 85040

Attention: General Counsel

Email: [•]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the RSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from settlement of the RSUs, adjustment of the RSUs pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the

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arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of their participation in the Plan that any personal data in relation to them may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
| THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
| By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

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*[Signature Page to Restricted Stock Unit Grant Certificate]* 

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I acknowledge that I have read and understand the terms of this Agreement.

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| | | | |
|:---|:---|:---|:---|
| **Employee:** | **[ ]** | **Employee ID:** | **[ ]** |

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## Exhibit 10.11

**Exhibit 10.11** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**RESTRICTED STOCK UNIT** 

**GRANT CERTIFICATE** 

**THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>"), pursuant to which restricted stock units ("<u>RSUs</u>") may be granted;

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the RSUs provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee a total of **[ ] RSUs**, on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The RSUs shall be credited to a book entry account maintained for the Grantee on the books of the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 11(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the delivery of all or any portion of the Shares underlying the RSUs, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Forfeiture; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Schedule</u>. (i) The RSUs shall become vested in installments on each Vesting Date as set forth below, provided that (A) subject to Sections 2(b)(iii) and 4(a)(i)(A) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through such Vesting Date and (B) subject to Section 2(b) below, the performance criteria described in this Section 2(a) are met with respect to the fiscal year of the University that ends on the applicable Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) Subject to clause (C) below, sixteen and two-thirds percent (16 and 2/3%) of the RSUs will vest on each of the first three (3) anniversaries of August 31, 2023 (each a "Vesting Date") if the University's Annual EBITDA (as defined in <u>Exhibit</u> <u>A</u> attached hereto) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual EBITDA Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) Subject to clause (C) below, sixteen and two-thirds percent (16 and 2/3%) of the RSUs will vest on each Vesting Date if the University's Annual Free Cash Flow (as defined in <u>Exhibit</u> <u>A</u>) for the fiscal year that ends on such Vesting Date equals or exceeds the Annual Free Cash Flow Target for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) If any installment of the RSUs does not vest as of a Vesting Date because (1) the Annual EBITDA Target was not achieved pursuant to clause (A) above, or (2) the Annual Free Cash Flow Target was not achieved pursuant to clause (B) above, such installment shall remain eligible to vest upon any future Vesting Date, subject to the Grantee's continued employment through such Vesting Date (except as provided by Sections 2(b) and 4(a)(i) below), if the University's Cumulative EBITDA or Cumulative Free Cash Flow, as applicable, for the fiscal year that ends on such Vesting Date equals or exceeds the Cumulative EBITDA Target or Cumulative Free Cash Flow Target, as applicable, for such fiscal year (as such terms are defined in <u>Exhibit</u> <u>A</u> and as such targets are specified on <u>Exhibit</u> <u>A</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By way of example and for illustration purposes only, if the Annual EBITDA Target for the first, second and third fiscal years were $100 million, $200 million and $300 million, respectively, and actual achievement of such targets were $150 million, $170 million and $330 million, respectively, then (1) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the first fiscal year shall vest on the first scheduled Vesting Date (because Annual EBITDA exceeded the Annual EBITDA Target by $50 million); (2) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the second fiscal year shall not vest on the second Vesting Date because Annual EBITDA fell short of the Annual EBITDA Target by $30 million, and the Cumulative EBITDA through the second fiscal year (which is only $270 million for this purpose, since the excess of $50 million over the Annual EBITDA Target in the first fiscal year is disregarded) also fell short of the Cumulative EBITDA Target by $30 million; (3) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the third fiscal year shall vest on the third Vesting Date (because Annual EBITDA exceeded the Annual EBITDA Target by $30

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million); and (4) the installment of the RSUs described in Section 2(a)(ii)(A) in respect of the second fiscal year also vests on the third Vesting Date because Cumulative EBITDA through the third fiscal year (which is $600 million for this purpose, taking into account the excess in the third fiscal year but disregarding the excess in the first fiscal year) satisfied the Cumulative EBITDA Target of $600 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The determination of the achievement of the performance criteria described in this Section 2(a) shall be subject to the Committee's certification for the applicable fiscal year for purposes of this Agreement based on the University's audited financials for such fiscal year. If the Grantee's employment terminates for any reason other than by the University or any of its Affiliates for Cause after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the RSUs that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The EBITDA and Free Cash Flow Targets (including the Cumulative EBITDA Targets and Cumulative Free Cash Flow Targets) specified in <u>Exhibit A</u> are based upon certain revenue and expense assumptions about the future business of the University as of the Date of Grant. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion, that any acquisition or disposition of any of the businesses of the University or its subsidiaries, or any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the University, issuance of warrants or other rights to purchase Shares or other securities of the University, any unusual or nonrecurring transactions or events affecting the University, or the financial statements of the University, or change in applicable laws, regulations, or accounting principles has occurred such that an adjustment is determined by the Committee in good faith to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the RSUs, then the Committee shall, in good faith and in such manner as it may deem equitable, adjust the performance targets set forth on <u>Exhibit A</u> to reflect the projected effect of such transaction(s) or event(s) on EBITDA and/or Free Cash Flow, subject to Section 7 of the Plan (including, without limitation, the Committee's ability to determine other equitable adjustments).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Change in Control, subject to the Grantee's continued employment through the effective date of a Change in Control, the annual performance targets set forth in Section 2(a) with respect to the fiscal year in which the Change in Control occurs and all future fiscal years shall be deemed met, and the RSUs shall become vested with respect to the installments relating to such fiscal years, as of the effective date of the Change in Control; <u>provided</u>, <u>however</u>, that any installment of the RSUs that was eligible to vest, but did not vest in accordance with Section 2(a)(ii), upon a Vesting Date occurring prior to the Change in Control because the applicable performance criteria were not met shall be forfeited and shall no longer remain outstanding as of immediately prior to such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Change in Control occurs after the end of a given fiscal year but prior to the Committee's certification of the University's Annual EBITDA and Annual Free Cash Flow for such fiscal year, (x) the installment of the RSUs that is eligible to vest in respect of such fiscal year (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year) shall remain eligible to vest in respect of such fiscal year pursuant to Section 2(a)(ii) upon the Committee's certification, and (y) to the extent that such installment does not vest in accordance with the preceding clause, it shall terminate for no consideration and become null and void as of the date of such Committee certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the effective date of a Change in Control occurs during the ninety (90) day period beginning on such date of termination, then immediately prior to the effective date of the Change in Control (and subject to the consummation of such Change in Control), the RSUs shall vest or terminate, as applicable, in accordance with Section 2(b)(i) and (ii) above as if the Grantee had remained employed through the consummation of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Except as otherwise provided herein, each vested RSU shall be settled as promptly as reasonably practicable following the applicable Vesting Date (but in any event by March 15 of the year following the year in which such vesting occurred).

**3. Tax Withholding.** Settlement of the RSUs shall be subject to the Grantee satisfying all applicable U.S. federal, state and local and non-U.S. income or employment tax withholding obligations. The University shall have the right and is hereby authorized to withhold from any amounts payable to the Grantee in connection with the RSUs or otherwise the amount of any applicable income or employment tax withholding obligations, and the University may take any such other action as it or the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Grantee may elect to satisfy, and the University may require the Grantee to satisfy, in whole or in part, the applicable tax obligations by withholding Shares that would otherwise be deliverable to the Grantee upon settlement of the RSUs with a Fair Market Value equal to such withholding liability.

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**4. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Employment without Cause or Due to Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on or prior to an applicable Vesting Date, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause, (2) due to the Grantee's Disability, or (3) due to the Grantee's death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a prorated portion of the installment of the RSUs scheduled to vest on the Vesting Date next following such termination of employment shall vest as of such Vesting Date, calculated as follows: (x) the installment of the RSUs that would have vested as of such Vesting Date but for such termination of employment based on the achievement of the applicable performance criteria (which vesting, for the avoidance of doubt, may be based on achievement of annual and/or cumulative targets for the applicable fiscal year), multiplied by (y) a fraction, (i) the numerator of which is equal to the number of calendar days that have elapsed since the most recent Vesting Date prior to the date of termination of employment or, if no such Vesting Date has yet occurred, since August 31, 2023, and (ii) the denominator of which is equal to the total number of calendar days in the fiscal year ending on the Vesting Date next following such termination of employment. For the avoidance of doubt, if the applicable performance criteria are not satisfied with respect to such installment of the RSUs eligible for vesting following such termination in accordance with this Section 4(a)(i)(A), such installment shall remain unvested. Subject to Section 2(a)(iii) and 2(b)(iv) above, any remaining unvested portion of the RSUs shall be canceled immediately, and the Grantee shall forfeit for no consideration any rights to the Shares subject to such unvested portion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each vested RSU shall be settled as set forth in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment by Grantee</u>. If, prior to the final Vesting Date, the Grantee's employment with the University and its Affiliates is terminated by Grantee for any reason, the unvested portion of the RSUs shall, subject to Section 2(a)(iii) above, be canceled immediately and the Grantee shall immediately forfeit any rights to the Shares subject to such unvested portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment for Cause</u>. Notwithstanding anything herein to the contrary, if the Grantee's employment with the University and its Affiliates is terminated by the University or any of its Affiliates for Cause, all outstanding RSUs (whether vested or unvested) shall be canceled immediately, and the Grantee shall immediately forfeit for no consideration all rights to the Shares subject to the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

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**5. Repurchase Right.** In the event of the termination of the Grantee's employment with the University and its Affiliates for any reason (a "<u>Repurchase Event</u>"), any Shares acquired upon the settlement of such RSUs (the "<u>RSU Shares</u>") shall be subject to repurchase by the University as set forth in this Section 5 and the Stockholders' Agreement (except, to the extent set forth in Section 2.4 of the Stockholders' Agreement, so long as such section remains in effect). Capitalized terms used in this Section 5 and not otherwise defined in the Plan or this Agreement shall have the meanings ascribed to them in the Stockholders' Agreement to which the Grantee has or, as a condition to receipt of such Shares, will become a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Call Right, Generally</u>. From and after a Repurchase Event, the University shall have the right, but not the obligation, to repurchase all or any portion of the RSU Shares held by the Grantee, in accordance with Section 10 of the Stockholders' Agreement, as modified by this Section 5 (the "<u>Repurchase Right</u>"). The University may exercise the Repurchase Right by written notice (a "<u>Repurchase Notice</u>") delivered to the Grantee within nine (9) months after the Repurchase Event; <u>provided</u>, that in respect of any RSU Shares that are acquired by the Grantee following the Repurchase Event, the University may exercise the Repurchase Right until the date that is nine (9) months after the date such RSU Shares are acquired, as applicable. Any repurchase described in the immediately preceding sentence shall be for fair market value (as determined under the Stockholders' Agreement). The determination date for purposes of determining the fair market value in the preceding sentence shall be the closing date of the purchase of the subject RSU Shares (the "<u>Repurchase Date</u>"). Subject to Section 10.5 of the Stockholders' Agreement, the Repurchase Date with respect to any sale and repurchase of the RSU Shares pursuant to the exercise of the Repurchase Right shall take place on the later of (x) the date specified by the University, which shall in no event be later than thirty (30) days following the date of the Repurchase Notice, and (y) ten (10) days following the receipt by the University of all necessary governmental and other approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>University</u><u>'</u><u>s Call Right Upon Certain Terminations</u>. Notwithstanding anything contained herein to the contrary, in the event that the Grantee's employment relationship with the University or any of its Affiliates is terminated by the University or any of its Affiliates for Cause, then any RSU Shares shall be forfeited for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Apollo Call Right</u>. In accordance with Section 10.4 of the Stockholders' Agreement, the University shall provide prompt written notice to Apollo Education Group, Inc. ("<u>Apollo</u>") stating whether it has elected to exercise its Repurchase Right pursuant to Section 5(a) or (b) above. If such notice states that the University elects not to exercise its Repurchase Right for all or any portion of the applicable RSU Shares, Apollo (or its designee) shall have the right (exercisable by delivery of written notice to the Grantee on or before the later of (i) the 30<sup>th</sup> day following Apollo's receipt of such notice of election from the University and (ii) the expiration of the time periods set forth in Section 5(a) above) to purchase any such RSU Shares not purchased by the University on the same terms and conditions as those applicable to the University as set forth in Section 5(a) or (b) above, *mutatis mutandis*, as if Apollo were the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Repurchase Date shall take place on a date within thirty (30) days of the Repurchase Notice; <u>provided</u>, <u>however</u>, that the Repurchase Date may be deferred to the extent required to avoid liability under applicable securities laws, until such time as the Grantee has held the RSU Shares, as applicable, for a period of at least six (6) months and one (1) day. The purchase price shall be paid at the closing in the form of a check, wire transfer of immediately available funds, or by cancellation of money purchase indebtedness of the Grantee, as determined in the sole discretion of the University or Apollo, as applicable; <u>provided</u>, that all or any portion of the

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purchase price may be paid by way of a promissory note if the University is prohibited by law or under its third-party contractual obligations from repurchasing the Grantee's RSU Shares. The University or Apollo, as applicable, may effect repurchase of the RSU Shares and the University shall record such Transfer on its books whether or not the Grantee attends such closing or delivers certificates representing the RSU Shares to the University or Apollo (as the case may be). The Grantee hereby grants an irrevocable proxy and power of attorney that, it is agreed, is coupled with an interest to any nominee of the University or Apollo, as applicable, to take all necessary actions and execute and deliver all documents deemed necessary and appropriate by such nominee to effect the sale and purchase of the RSU Shares. The irrevocable and unconditional proxy and the power of attorney granted pursuant to this Section 5(d) is intended to be, and is, attached to the RSU Shares and shall survive for the duration of the RSUs or the Stockholders' Agreement, respectively if the Grantee fails to take all necessary actions and execute and deliver all documents necessary and appropriate to fulfill Grantee's obligations under this Section 5, the Grantee shall, to the fullest extent permitted by law, indemnify, defend and hold harmless such nominee, its officers, directors, employees, counsel, representatives, agents and partners against all claims, liability, loss or damage (or actions in respect thereof), together with all reasonable costs and expenses (including reasonable legal fees and expenses, and expenses incurred in settlement of any litigation commenced or threatened), relating to or arising from such nominee's exercise of the proxy and power of attorney granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 5, the Stockholders' Agreement shall be modified as follows:

If University Common Stock (including, without limitation, Award Shares and Deemed Held Shares) held by the Redeemed Holder is being valued pursuant to Section 10 of the Stockholders' Agreement and the Redeemed Holder disagrees with the valuation determined by the Compensation Committee and the amount in dispute is at least $25,000, the Redeemed Holder may elect by written notice to the University, within fifteen (15) business days of being advised of the determination of the Compensation Committee, to have the Fair Market Value of the University Common Stock determined by an independent appraiser, the selection of which shall be subject to the mutual agreement of the Compensation Committee and the Redeemed Holder (it being understood that any such determination by the independent appraiser shall be made without regard to the percentage of the University's then-outstanding University Common Stock that is represented by the University Common Stock subject to such determination or any illiquidity or minority discount or control premium); <u>provided</u>, <u>however</u>, that the Redeemed Holder shall have no right to seek such an independent appraisal if the Compensation Committee has based its good faith determination of the Fair Market Value of the University Common Stock, made in accordance with Section 10 of the Stockholders' Agreement, on a valuation provided by an independent financial advisor or appraisal firm to the Compensation Committee in the six (6) months preceding the date on which the Compensation Committee has made such determination, or if the Fair Market Value of the University Common Stock is based on the value of University Common Stock in connection with a Change in Control. The fees and expenses of any such independent appraiser shall be borne

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equally by the University and the Redeemed Holder; <u>provided</u>, <u>however</u>, that if the valuation of the University Common Stock furnished by such independent appraiser is greater than 120% of the determination of such Fair Market Value of the University Common Stock made by the Compensation Committee pursuant to Section 10 of the Stockholders' Agreement, then the University shall bear 100% of the reasonable, documented fees and expenses of such independent appraiser. The determination by the independent appraiser shall be final, binding and non-appealable.

**6. Restrictive Covenants.** Grantee agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of one (1) year thereafter, the Grantee shall not (without the prior written consent of the University), directly or indirectly, engage in any Competitive Activity within the Restricted Area. For purposes of this Section 6:

"<u>Competitive Activity</u>" refers to (as an employee, consultant, director, officer, owner, investor, partner or in any other capacity) (i) providing, supervising or managing services for a Competitive Business that are the same as or similar to those Grantee provided, supervised or managed while employed with the University in the preceding two (2) year period (the "<u>Look Back Period</u>"), (ii) rendering any services to a Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the University or any of its Affiliates or (iii) acquiring a significant financial interest in a Competitive Business.

"<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning or any not-for-profit educational institution that competes with the business of the University or its Affiliates.

"<u>Restricted Area</u>" means (i) each state and county (or equivalents) where the University or an Affiliate does business and in which Grantee has involvement with, or for which Grantee has any responsibility or with respect to which Grantee is provided Confidential Information during the Look Back Period so long as the University or an Affiliate continues to do business therein and (ii) any prospective geographic area or territory that within the six (6) months has been the subject of serious consideration by the University or any of its Affiliates as a business location and which the Grantee is or has been made aware of.

The phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers).

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A financial interest will not be considered "<u>significant</u>" if it involves being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant).

For purposes of this Section 6(a), "<u>Affiliates</u>" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (i.e., entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates (a "<u>Covered Individual</u>") to terminate his/her/their relationship with or leave the employ of the University or any such Affiliate or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any Covered Individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) hire (or other similar arrangement) or assist a Competitive Business in its efforts to hire (or other similar arrangement) a Covered Individual away from the University or an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, induce or attempt to solicit or induce any customer of the University or any of its Affiliates that the Grantee has material contact with, or is provided Confidential Information about in the course of employment with the University or an Affiliate in the Look Back Period (a "<u>Covered Customer</u>") for the purpose of causing the Covered Customer to do business with a Competitive Business, or to cease or reduce doing business with the University or an Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, induce or attempt to solicit or induce any supplier, prospect licensee or other business relation of the University or an Affiliate (a "<u>Covered Provider</u>") to cease or reduce doing business with the University or such Affiliate, or interfere or attempt to interfere with the relationship between any Covered Provider, on the one hand, and the University or an Affiliate, on the other hand;

<u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(b). For purposes of this Section 6(b), "Affiliates" shall have the same meaning as in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers; provided, however, that the forgoing shall not prohibit Grantee from engaging in any conduct that is Protected Conduct (as described in Section 6(f)). The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(c), "Affiliates" shall have the same meaning as in Section 6(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets (collectively, "<u>Confidential Information</u>"). Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

Other than to the extent Grantee is permitted by law to discuss Grantee's own wages, the Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the RSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the RSUs shall terminate and any outstanding portion of such RSUs (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 6(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice

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or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion, without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever; <u>provided, however</u>, that the forgoing assignment of inventions shall be limited so that it does not require or create any assignment of an invention that cannot be assigned through an agreement between an employee and employer under controlling law, and Grantee acknowledges notice of the following laws of this nature:

Cal. Lab. Code, § 2870; Del. Code Title 19 § 805; Illinois 765 ILCS 1060/1-3; Kan. Stat. Section 44-130; Minn. Statutes, 13A, Section 181.78; New Jersey Statutes Title 34. Labor and Workmen's Compensation 34 § 1B-265; NY Labor Law § 203-f; N. Car. General Statutes, Art. 10A, Chapter 66, Commerce and Business, § 66-57.1; Utah Code § 34-39-1 through 34-39-3; Wash. Rev. Code, Title 49 RCW: Labor Regulations, Chapter 49.44.140); and I understand that each of these laws has a similar limitation on what can be assigned. As an example, I understand that (a) Cal. Lab. Code, § 2870 provides: *"Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer"*, and (b) that the remainder of the states listed are substantively the same with the exception that in Kansas, Minnesota and Washington the statutes make assignable an invention that "relates … directly to the business of the employer" instead of those that "Relate … to the employer's business" as part (1) is worded in the California statute.

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As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 6(e) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Whistleblower Protection / Protected Conduct</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Nothing in this Agreement limits or affects Grantee's right to disclose or discuss criminal conduct, discrimination, harassment (including but not limited to sexual harassment or sexual assault) or retaliation, prohibits Grantee from discussing such matters with Grantee's own legal counsel or prohibits Grantee from providing truthful testimony in a legal, administrative or arbitration proceeding. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the

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University that the Grantee has made such reports or disclosures. Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. If Grantee is employed in a non-management, non-supervisory role then nothing in this Agreement will prohibit Grantee from engaging in conduct that is protected under Section 7 of the National Labor Relations Act (NLRA) such as the right of employees to self-organization, to form, join, or assist labor organizations, to strike, picket or otherwise engage in other concerted activities for their mutual aid or protection or refuse to do so; this includes using or disclosing information acquired through lawful means regarding the wages, benefits or other terms and conditions of employment for any purpose protected under the NLRA unless the information concerns other employees and was entrusted to Grantee in confidence by the University as part of confidential job duties (such as human resource management, payroll or benefits administration duties).

The conduct protected under this Section 6(f) is collectively referred to as "<u>Protected Conduct</u>" in this Agreement and shall not be construed to protect, invite, permit or limit liability for illegal activity such as breaking and entering, illegal computer access (hacking), or theft or destruction of the property of the University or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Forfeiture; Other Relief</u>. **In the event Grantee fails to comply with the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any RSUs have been settled within the three (3) year period immediately preceding such breach, the Grantee shall forfeit any Shares received upon such settlement without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Grantee upon settlement of such RSUs or upon disposition of the Shares**. The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability; Blue Pencil</u>. The invalidity or non-enforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares underlying the RSUs unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement), and (ii) the Grantee's name shall have been entered as a stockholder of record with respect to such Shares on the books of the University. The University shall cause the actions described in clause (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

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**8. Compliance with Legal Requirements.** The granting and settlement of the RSUs, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the RSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the settlement of the RSUs at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the settlement of the RSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**9. Clawback.** The RSUs and/or the Shares acquired upon settlement of the RSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

**10. Litigation Cooperation**. The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any

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investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the RSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the RSUs, shall be null and void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 11 shall be borne by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The RSUs are not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the RSUs will not be subject to interest and penalties under Section 409A, and in no event whatsoever shall the University or any of its Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Grantee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, AZ 85040

Attention: General Counsel

Email: [•]

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with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the RSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from settlement of the RSUs, adjustment of the RSUs pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court)

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strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of their participation in the Plan that any personal data in relation to them may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
| THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
| By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

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*[Signature Page to Restricted Stock Unit Grant Certificate]*

## Exhibit 10.12

**Exhibit 10.12** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**RESTRICTED STOCK UNIT** 

**GRANT CERTIFICATE** 

**THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE** (this "<u>Agreement</u>"), dated as of **[ ]** (the "<u>Date of Grant</u>"), is made by and between The University of Phoenix, Inc., an Arizona corporation (the "<u>University</u>"), and **[ ]** (the "<u>Grantee</u>").

**WHEREAS**, the University has adopted the University of Phoenix, Inc. Management Equity Plan (as may be amended from time to time, the "<u>Plan</u>"), pursuant to which restricted stock units ("<u>RSUs</u>") may be granted;

**WHEREAS**, the Apollo Education Group, Inc. Compensation Committee (the "<u>Committee</u>") has determined that it is in the best interests of the University and its stockholders to grant the RSUs provided for herein to the Grantee, subject to the terms set forth herein.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The University hereby grants to the Grantee a total of **[ ] RSUs**, on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The RSUs shall be credited to a book entry account maintained for the Grantee on the books of the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference, Etc.</u> The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time consistent with the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee's legal representative in respect of any questions arising under the Plan or this Agreement, subject to Section 11(n). The Grantee acknowledges that the Grantee has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stockholders' Agreement</u>. As a condition to the delivery of all or any portion of the Shares underlying the RSUs, the Grantee shall be required to become a party to the Stockholders' Agreement and agrees to be bound by the terms thereof. The Grantee acknowledges being provided with a copy of the Stockholders' Agreement.

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**2. Vesting; Forfeiture; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting Schedule</u>. The RSUs shall become vested in three (3) equal installments on each of the first three (3) anniversaries of August 31, 2023 (each a "<u>Vesting Date</u>"), provided that, subject to Sections 2(b)(ii) and 4(a)(i)(A) below, the Grantee remains continuously employed in active service by the University or one of its Affiliates from the Date of Grant through such Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Change in Control, the RSUs, to the extent unvested, shall become fully vested, subject to the Grantee's continued employment through the effective date of a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Grantee's employment terminates for any reason other than (x) by the University or any of its Affiliates for Cause or (y) by the Grantee for any reason, and the effective date of a Change in Control occurs during the ninety (90) day period beginning on such date of termination, then immediately prior to the effective date of the Change in Control (and subject to the consummation of such Change in Control), the RSUs shall vest or terminate, as applicable, in accordance with Section 2(b)(i) above as if the Grantee had remained employed through the consummation of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Except as otherwise provided herein, each vested RSU shall be settled as promptly as reasonably practicable following the applicable Vesting Date (but in any event by March 15 of the year following the year in which such vesting occurred).

**3. Tax Withholding.** Settlement of the RSUs shall be subject to the Grantee satisfying all applicable U.S. federal, state and local and non-U.S. income or employment tax withholding obligations. The University shall have the right and is hereby authorized to withhold from any amounts payable to the Grantee in connection with the RSUs or otherwise the amount of any applicable income or employment tax withholding obligations, and the University may take any such other action as it or the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Grantee may elect to satisfy, and the University may require the Grantee to satisfy, in whole or in part, the applicable tax obligations by withholding Shares that would otherwise be deliverable to the Grantee upon settlement of the RSUs with a Fair Market Value equal to such withholding liability.

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**4. Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Employment without Cause or Due to Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on or prior to an applicable Vesting Date, the Grantee's employment with the University and its Affiliates is terminated (1) by the University or any of its Affiliates without Cause, (2) due to the Grantee's Disability, or (3) due to the Grantee's death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a prorated portion of the installment of the RSUs scheduled to vest on the Vesting Date next following such termination of employment shall vest as of the date of such termination of employment, calculated as follows: (x) thirty three and one third percent (33 and 1/3%) of the RSUs multiplied by (y) a fraction, (i) the numerator of which is equal to the number of calendar days that have elapsed since the most recent Vesting Date prior to the date of termination of employment or, if no such Vesting Date has yet occurred, since August 31, 2023, and (ii) the denominator of which is equal to the total number of calendar days in the fiscal year ending on the Vesting Date next following such termination of employment. Subject to Section 2(b)(ii) above, any remaining unvested portion of the RSUs shall be canceled immediately and the Grantee shall immediately forfeit for no consideration any rights to the Shares subject to such unvested portion as of such termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each vested RSU shall be settled as set forth in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment by Grantee</u>. If, prior to the final Vesting Date, the Grantee's employment with the University and its Affiliates is terminated by Grantee for any reason, the unvested portion of the RSUs shall be canceled immediately and the Grantee shall immediately forfeit any rights to the Shares subject to such unvested portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment for Cause</u>. Notwithstanding anything herein to the contrary, if the Grantee's employment with the University and its Affiliates is terminated by the University or any of its Affiliates for Cause, all outstanding RSUs (whether vested or unvested) shall be canceled immediately, and the Grantee shall immediately forfeit for no consideration all rights to the Shares subject to the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer of Employment or Service</u>. For the avoidance of doubt, a mere transfer of the Grantee's employment or service among the University and its Affiliates shall not be considered a termination of employment or service under this Agreement.

**5. Repurchase Right.** In the event of the termination of the Grantee's employment with the University and its Affiliates for any reason (a "<u>Repurchase Event</u>"), any Shares acquired upon the settlement of such RSUs (the "<u>RSU Shares</u>") shall be subject to repurchase by the University as set forth in this Section 5 and the Stockholders' Agreement (except, to the extent set forth in Section 2.4 of the Stockholders' Agreement, so long as such section remains in effect). Capitalized terms used in this Section 5 and not otherwise defined in the Plan or this Agreement shall have the meanings ascribed to them in the Stockholders' Agreement to which the Grantee has or, as a condition to receipt of such Shares, will become a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Call Right, Generally</u>. From and after a Repurchase Event, the University shall have the right, but not the obligation, to repurchase all or any portion of the RSU Shares held by the Grantee, in accordance with Section 10 of the Stockholders' Agreement, as modified by this Section 5 (the "<u>Repurchase Right</u>"). The University may exercise the Repurchase Right by written

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notice (a "<u>Repurchase Notice</u>") delivered to the Grantee within nine (9) months after the Repurchase Event; <u>provided</u>, that in respect of any RSU Shares that are acquired by the Grantee following the Repurchase Event, the University may exercise the Repurchase Right until the date that is nine (9) months after the date such RSU Shares are acquired, as applicable. Any repurchase described in the immediately preceding sentence shall be for fair market value (as determined under the Stockholders' Agreement). The determination date for purposes of determining the fair market value in the preceding sentence shall be the closing date of the purchase of the subject RSU Shares (the "<u>Repurchase Date</u>"). Subject to Section 10.5 of the Stockholders' Agreement, the Repurchase Date with respect to any sale and repurchase of the RSU Shares pursuant to the exercise of the Repurchase Right shall take place on the later of (x) the date specified by the University, which shall in no event be later than thirty (30) days following the date of the Repurchase Notice, and (y) ten (10) days following the receipt by the University of all necessary governmental and other approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>University</u><u>'</u><u>s Call Right Upon Certain Terminations</u>. Notwithstanding anything contained herein to the contrary, in the event that the Grantee's employment relationship with the University or any of its Affiliates is terminated by the University or any of its Affiliates for Cause, then any RSU Shares shall be forfeited for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Apollo Call Right</u>. In accordance with Section 10.4 of the Stockholders' Agreement, the University shall provide prompt written notice to Apollo Education Group, Inc. ("<u>Apollo</u>") stating whether it has elected to exercise its Repurchase Right pursuant to Section 5(a) or (b) above. If such notice states that the University elects not to exercise its Repurchase Right for all or any portion of the applicable RSU Shares, Apollo (or its designee) shall have the right (exercisable by delivery of written notice to the Grantee on or before the later of (i) the 30<sup>th</sup> day following Apollo's receipt of such notice of election from the University and (ii) the expiration of the time periods set forth in Section 5(a) above) to purchase any such RSU Shares not purchased by the University on the same terms and conditions as those applicable to the University as set forth in Section 5(a) or (b) above, *mutatis mutandis*, as if Apollo were the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Repurchase Date shall take place on a date within thirty (30) days of the Repurchase Notice; <u>provided</u>, <u>however</u>, that the Repurchase Date may be deferred to the extent required to avoid liability under applicable securities laws, until such time as the Grantee has held the RSU Shares, as applicable, for a period of at least six (6) months and one (1) day. The purchase price shall be paid at the closing in the form of a check, wire transfer of immediately available funds, or by cancellation of money purchase indebtedness of the Grantee, as determined in the sole discretion of the University or Apollo, as applicable; <u>provided</u>, that all or any portion of the purchase price may be paid by way of a promissory note if the University is prohibited by law or under its third-party contractual obligations from repurchasing the Grantee's RSU Shares. The University or Apollo, as applicable, may effect repurchase of the RSU Shares and the University shall record such Transfer on its books whether or not the Grantee attends such closing or delivers certificates representing the RSU Shares to the University or Apollo (as the case may be). The Grantee hereby grants an irrevocable proxy and power of attorney that, it is agreed, is coupled with an interest to any nominee of the University or Apollo, as applicable, to take all necessary actions and execute and deliver all documents deemed necessary and appropriate by such nominee to effect the sale and purchase of the RSU Shares. The irrevocable and unconditional proxy and the power

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of attorney granted pursuant to this Section 5(d) is intended to be, and is, attached to the RSU Shares and shall survive for the duration of the RSUs or the Stockholders' Agreement, respectively if the Grantee fails to take all necessary actions and execute and deliver all documents necessary and appropriate to fulfill Grantee's obligations under this Section 5, the Grantee shall, to the fullest extent permitted by law, indemnify, defend and hold harmless such nominee, its officers, directors, employees, counsel, representatives, agents and partners against all claims, liability, loss or damage (or actions in respect thereof), together with all reasonable costs and expenses (including reasonable legal fees and expenses, and expenses incurred in settlement of any litigation commenced or threatened), relating to or arising from such nominee's exercise of the proxy and power of attorney granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 5, the Stockholders' Agreement shall be modified as follows:

If University Common Stock (including, without limitation, Award Shares and Deemed Held Shares) held by the Redeemed Holder is being valued pursuant to Section 10 of the Stockholders' Agreement and the Redeemed Holder disagrees with the valuation determined by the Compensation Committee and the amount in dispute is at least $25,000, the Redeemed Holder may elect by written notice to the University, within fifteen (15) business days of being advised of the determination of the Compensation Committee, to have the Fair Market Value of the University Common Stock determined by an independent appraiser, the selection of which shall be subject to the mutual agreement of the Compensation Committee and the Redeemed Holder (it being understood that any such determination by the independent appraiser shall be made without regard to the percentage of the University's then-outstanding University Common Stock that is represented by the University Common Stock subject to such determination or any illiquidity or minority discount or control premium); <u>provided</u>, <u>however</u>, that the Redeemed Holder shall have no right to seek such an independent appraisal if the Compensation Committee has based its good faith determination of the Fair Market Value of the University Common Stock, made in accordance with Section 10 of the Stockholders' Agreement, on a valuation provided by an independent financial advisor or appraisal firm to the Compensation Committee in the six (6) months preceding the date on which the Compensation Committee has made such determination, or if the Fair Market Value of the University Common Stock is based on the value of University Common Stock in connection with a Change in Control. The fees and expenses of any such independent appraiser shall be borne equally by the University and the Redeemed Holder; <u>provided</u>, <u>however</u>, that if the valuation of the University Common Stock furnished by such independent appraiser is greater than 120% of the determination of such Fair Market Value of the University Common Stock made by the Compensation Committee pursuant to Section 10 of the Stockholders' Agreement, then the University shall bear 100% of the reasonable, documented fees and expenses of such independent appraiser. The determination by the independent appraiser shall be final, binding and non-appealable.

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**6. Restrictive Covenants.** Grantee agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of one (1) year thereafter, the Grantee shall not (without the prior written consent of the University), directly or indirectly, engage in any Competitive Activity within the Restricted Area. For purposes of this Section 6:

"<u>Competitive Activity</u>" refers to (as an employee, consultant, director, officer, owner, investor, partner or in any other capacity) (i) providing, supervising or managing services for a Competitive Business that are the same as or similar to those Grantee provided, supervised or managed while employed with the University in the preceding two (2) year period (the "<u>Look Back Period</u>"), (ii) rendering any services to a Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the University or any of its Affiliates or (iii) acquiring a significant financial interest in a Competitive Business.

"<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning or any not-for-profit educational institution that competes with the business of the University or its Affiliates.

"<u>Restricted Area</u>" means (i) each state and county (or equivalents) where the University or an Affiliate does business and in which Grantee has involvement with, or for which Grantee has any responsibility or with respect to which Grantee is provided Confidential Information during the Look Back Period so long as the University or an Affiliate continues to do business therein and (ii) any prospective geographic area or territory that within the six (6) months has been the subject of serious consideration by the University or any of its Affiliates as a business location and which the Grantee is or has been made aware of.

The phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Grantee is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers).

A financial interest will not be considered "<u>significant</u>" if it involves being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Grantee has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant).

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For purposes of this Section 6(a), "<u>Affiliates</u>" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (i.e., entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation; Non-Hire</u>. During the term of the Grantee's employment with the University or any of its Affiliates and for a period of two (2) years thereafter, the Grantee shall not (without the prior written consent of the University) directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, induce or attempt to solicit or induce any officer, director or employee of the University or any of its Affiliates (a "<u>Covered Individual</u>") to terminate his/her/their relationship with or leave the employ of the University or any such Affiliate or in any way interfere or attempt to interfere with the relationship between the University or any such Affiliate, on the one hand, and any Covered Individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) hire (or other similar arrangement) or assist a Competitive Business in its efforts to hire (or other similar arrangement) a Covered Individual away from the University or an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, induce or attempt to solicit or induce any customer of the University or any of its Affiliates that the Grantee has material contact with, or is provided Confidential Information about in the course of employment with the University or an Affiliate in the Look Back Period (a "<u>Covered Customer</u>") for the purpose of causing the Covered Customer to do business with a Competitive Business, or to cease or reduce doing business with the University or an Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, induce or attempt to solicit or induce any supplier, prospect licensee or other business relation of the University or an Affiliate (a "<u>Covered Provider</u>") to cease or reduce doing business with the University or such Affiliate, or interfere or attempt to interfere with the relationship between any Covered Provider, on the one hand, and the University or an Affiliate, on the other hand;

<u>provided</u>, that neither (A) the Grantee's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Grantee shall be deemed a breach of this Section 6(b). For purposes of this Section 6(b), "Affiliates" shall have the same meaning as in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Disparagement</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the University or any of its Affiliates, successors, directors or officers; provided, however, that the forgoing shall not prohibit Grantee from engaging in any conduct that is Protected Conduct (as described in Section 6(f)). The foregoing shall not be violated by the Grantee by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 6(c), "Affiliates" shall have the same meaning as in Section 6(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Grantee's employment with the University or any of its Affiliates and thereafter in perpetuity, the Grantee shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Grantee's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the University or any of its Affiliates, including, without limitation, information with respect to the University's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets (collectively, "<u>Confidential Information</u>"). Upon the Grantee's termination of employment for any reason, the Grantee shall promptly deliver to the University all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the University's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Grantee may nonetheless retain copies of documents relating to the Grantee's compensation; the Grantee's personal entitlements and obligations; and the Grantee's cell phone number. The Grantee may respond to a lawful and valid subpoena or other legal process but shall give the University the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the University and its counsel the documents and other information sought and, if requested by the University, shall reasonably assist such counsel in resisting or otherwise responding to such process.

Other than to the extent Grantee is permitted by law to discuss Grantee's own wages, the Grantee hereby agrees that (i) except as required by law, the Grantee will not disclose to any Person other than the Grantee's spouse and legal, financial and other advisors (if any) the grant of the RSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the RSUs shall terminate and any outstanding portion of such RSUs (whether or not vested) shall be forfeited if the Grantee violates the non-disclosure provisions of this Section 6(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee agrees that the results and proceeds of the Grantee's services for the University or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the University and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Grantee, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the University determines in its sole discretion,

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without any further payment to the Grantee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the University (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Grantee hereby irrevocably assigns and agrees to assign any and all of the Grantee's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the University (or, if applicable or as directed by the University, any of its subsidiaries or Affiliates), and the University or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the University or such subsidiaries or Affiliates without any further payment to the Grantee whatsoever; <u>provided, however</u>, that the forgoing assignment of inventions shall be limited so that it does not require or create any assignment of an invention that cannot be assigned through an agreement between an employee and employer under controlling law, and Grantee acknowledges notice of the following laws of this nature:

Cal. Lab. Code, § 2870; Del. Code Title 19 § 805; Illinois 765 ILCS 1060/1-3; Kan. Stat. Section 44-130; Minn. Statutes, 13A, Section 181.78; New Jersey Statutes Title 34. Labor and Workmen's Compensation 34 § 1B-265; NY Labor Law § 203-f; N. Car. General Statutes, Art. 10A, Chapter 66, Commerce and Business, § 66-57.1; Utah Code § 34-39-1 through 34-39-3; Wash. Rev. Code, Title 49 RCW: Labor Regulations, Chapter 49.44.140); and I understand that each of these laws has a similar limitation on what can be assigned. As an example, I understand that (a) Cal. Lab. Code, § 2870 provides: *"Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer"*, and (b) that the remainder of the states listed are substantively the same with the exception that in Kansas, Minnesota and Washington the statutes make assignable an invention that "relates … directly to the business of the employer" instead of those that "Relate … to the employer's business" as part (1) is worded in the California statute.

As to any Invention that the Grantee is required to assign, the Grantee shall promptly and fully disclose to the University all information known to the Grantee concerning such Invention. The Grantee hereby waives and quitclaims to the University any and all claims, of any nature whatsoever, that the Grantee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the University.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Grantee agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall do any and all things that the University may reasonably deem useful or desirable to establish or document the University's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Grantee has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Grantee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 6(e) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the University of any Proprietary Rights of ownership to which the University may be entitled by operation of law by virtue of the University's being the Grantee's employer (or Affiliate of the Grantee's employer, as applicable). The Grantee further agrees that, from time to time, as may be requested by the University and at the University's sole cost and expense, the Grantee shall assist the University in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Grantee shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the University may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Grantee shall execute, verify, and deliver assignments of such Proprietary Rights to the University or its designees. The Grantee's obligation to assist the University with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Grantee's employment with the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Whistleblower Protection / Protected Conduct</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Grantee from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Nothing in this Agreement limits or affects Grantee's right to disclose or discuss criminal conduct, discrimination, harassment (including but not limited to sexual harassment or sexual assault) or retaliation, prohibits Grantee from discussing such matters with Grantee's own legal counsel or prohibits Grantee from providing truthful testimony in a legal, administrative or arbitration proceeding. The Grantee does not need the prior authorization of the University to make any such reports or disclosures and the Grantee is not required to notify the University that the Grantee has made such reports or disclosures. Notwithstanding anything to the contrary contained herein, the Grantee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Grantee

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files a lawsuit for retaliation by the University for reporting a suspected violation of law, the Grantee may disclose the University's trade secrets to the Grantee's attorney and use the trade secret information in the court proceeding if the Grantee: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. If Grantee is employed in a non-management, non-supervisory role then nothing in this Agreement will prohibit Grantee from engaging in conduct that is protected under Section 7 of the National Labor Relations Act (NLRA) such as the right of employees to self-organization, to form, join, or assist labor organizations, to strike, picket or otherwise engage in other concerted activities for their mutual aid or protection or refuse to do so; this includes using or disclosing information acquired through lawful means regarding the wages, benefits or other terms and conditions of employment for any purpose protected under the NLRA unless the information concerns other employees and was entrusted to Grantee in confidence by the University as part of confidential job duties (such as human resource management, payroll or benefits administration duties).

The conduct protected under this Section 6(f) is collectively referred to as "<u>Protected Conduct</u>" in this Agreement and shall not be construed to protect, invite, permit or limit liability for illegal activity such as breaking and entering, illegal computer access (hacking), or theft or destruction of the property of the University or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Grantee Acknowledgements</u>. The Grantee understands that this Section 6 may limit Grantee's ability to earn a livelihood in a business competitive to the business of the University and its Affiliates. The Grantee expressly acknowledges and agrees that this Section 6 is reasonable and necessary for the protection of the legitimate business interests of the University and is reasonable in scope. For the avoidance of doubt, the Grantee's covenants in this Section 6 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the University or its Affiliates and by which the Grantee is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the University or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notification of Subsequent Employer</u>. The Grantee hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Grantee's termination of employment during which the Grantee remains subject to any of the covenants set forth in Section 6, the Grantee shall provide such prospective employer with written notice of the provisions of this Section 6 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the University not later than three (3) business days prior to the date on which the Grantee commences such employment or provision of services. For the avoidance of doubt, the University shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Forfeiture; Other Relief</u>. **In the event Grantee fails to comply with the restrictive covenants set forth in this Section 6, then in addition to any other remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any RSUs have been settled within the three (3) year period immediately preceding such breach, the Grantee shall** 

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 **forfeit any Shares received upon such settlement without consideration and be required to promptly repay to the University, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Grantee upon settlement of such RSUs or upon disposition of the Shares.** The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the University and shall not prevent (and the Grantee shall not assert that they shall prevent) the University from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Grantee's breach of such restrictive covenants to the full extent contemplated by Section 11(n). The Grantee acknowledges and agrees that irreparable injury will result to the University and its goodwill if the Grantee breaches any of the terms of the covenants set forth in this Section 6, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Grantee hereby agrees that, in the event of a breach of any of the covenants contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the University shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability; Blue Pencil</u>. The invalidity or non-enforceability of any provision of this Section 6 in any respect shall not affect the validity or enforceability of the other provisions of this Section 6 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 6 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

**7. Rights as a Stockholder.** The Grantee shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the University in respect of any Shares underlying the RSUs unless and until, and thereafter only to the extent that, (i) the Grantee has signed a joinder to the Stockholders' Agreement designated by the University (in the form attached to such Stockholders' Agreement), and (ii) the Grantee's name shall have been entered as a stockholder of record with respect to such Shares on the books of the University. The University shall cause the actions described in clause (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

**8. Compliance with Legal Requirements.** The granting and settlement of the RSUs, and any other obligations of the University under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the RSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which Shares are then listed or traded, and/or any blue sky or state securities laws applicable to such Shares. In the event of the settlement of the RSUs at a time when there is not in effect a registration statement under the Securities Act relating to the Shares, the Grantee hereby represents

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and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the University that the Shares are being acquired for investment only and not with a view to the distribution thereof, and the Grantee shall provide the University with such further representations and warranties as the University may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the University be obligated to register Shares under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of Shares pursuant to the settlement of the RSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. The Grantee agrees to take all steps the Committee or the University determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising Grantee's rights under this Agreement.

**9. Clawback.** The RSUs and/or the Shares acquired upon settlement of the RSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement) to the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of any applicable securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted.

**10. Litigation Cooperation**. The Grantee agrees that during and after Grantee's employment by the University and its Affiliates, the Grantee will assist the University and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the University or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Grantee (an "<u>Action</u>"), and will assist the University and its Affiliates in the prosecution of any claims, which are not adverse to the Grantee, that may be made by the University or any of its Affiliates in any Action, to the extent that such claims may relate to the Grantee's employment or the period of the Grantee's employment by the University and its Affiliates. The Grantee agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Grantee also agrees, unless precluded by law, to promptly inform the University if the Grantee is asked to assist in any investigation (whether governmental or otherwise) of the University or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Grantee's employment or the period of the Grantee's employment by the University, regardless of whether a lawsuit has then been filed against the University or any of its Affiliates with respect to such investigation. The University or one of its Affiliates shall reimburse the Grantee for all of the Grantee's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Grantee shall be subject to applicable withholding and employment taxes.

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**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Grantee other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 9(f) of the Plan. Any attempted Transfer of the RSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the RSUs, shall be null and void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Grantee shall not be materially adversely affected without the Grantee's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver</u>. Any right of the University contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section</u> <u>280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Grantee becomes entitled to payments or benefits under this Agreement, the Plan and/or any other payments or benefits by reason of a "change of control" as defined in Section 280G of the Code and regulations thereunder (collectively, the "<u>Payments</u>"), and any such Payment would constitute an "excess parachute payment" within the meaning of Section 280G(b)(1) of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the Code, or any similar federal or state law (an "<u>Excise Tax</u>"), as determined by an independent certified public accounting firm selected by the University (the "<u>Accounting Firm</u>"), the amount of the Grantee's Payments shall be limited to the largest amount payable, if any, that would not result in the imposition of any Excise Tax to the Grantee, but only if, the total Payments, as so limited and net of all taxes imposed on the Grantee with respect thereto, is greater than the total Payments without applying such limitation, net of all taxes imposed on the Grantee with respect thereto (including any such Excise Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards that vest on an accelerated basis, in reverse order of payment; second, the reduction of employee benefits; third, a reduction in any other "parachute payments" (as defined in Section 280G of the Code) that do not constitute acceleration of vesting benefits, in reverse order of payment; and fourth, the cancellation of accelerating the vesting of stock awards. If acceleration of vesting of stock award compensation is to be canceled, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Grantee's stock awards, and the acceleration of the vesting of full shares shall be canceled before the acceleration of the vesting of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All determinations required to be made under this Section 11(d) will be made by the Accounting Firm. Any determination by the Accounting Firm will be binding upon the University and the Grantee. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 11 shall be borne by the University.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section</u> <u>409A</u>. The RSUs are not intended to be subject to Section 409A of the Code and shall be interpreted accordingly. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Grantee to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole reasonable discretion and with the Grantee's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Grantee of the applicable provision without materially increasing the cost to the University or contravening the provisions of Section 409A of the Code. This Section 11(e) does not create an obligation on the part of the University to modify the Plan or this Agreement and does not guarantee that the RSUs will not be subject to interest and penalties under Section 409A, and in no event whatsoever shall the University or any of its Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Grantee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices, requests, consents and other communications to be given hereunder to any party shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given when delivered in person, by email, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addresser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the University, to:

The University of Phoenix, Inc.

University Legal Services

4035 South Riverpoint Parkway

Phoenix, AZ 85040

Attention: General Counsel

Email: [•]

with copies to (which shall not constitute notice):

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Fax: (212) 492-0237

Attention: Lawrence I. Witdorchic, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Grantee, to the Grantee's home address or email address on file with the University.

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All such notices, requests, consents and other communications shall be deemed to have been delivered in the case of personal delivery, delivery by e-mail, or delivery by telecopy, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day, and in the case of mailing, on the third business day following such mailing if sent by certified mail, return receipt requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Grantee any right to be retained, in any position, as an employee, consultant or director of the University or its Affiliates or shall interfere with or restrict in any way the right of the University or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever. The Grantee hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the University and that Grantee has no right or entitlement to receive future awards under the Plan. Neither the grant of the RSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the University or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fractional Shares</u>. In lieu of issuing a fraction of a Share resulting from settlement of the RSUs, adjustment of the RSUs pursuant to Section 7 of the Plan or otherwise, the University shall be entitled to pay to the Grantee an amount equal to the Fair Market Value of such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Beneficiary</u>. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the Grantee's estate shall be deemed to be the Grantee's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the University and its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE

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OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(n)(ii) or 11(n)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets<u>;</u> <u>provided</u><u>,</u> <u>however</u>, that the University shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 6 of the Agreement and the Grantee hereby consents that such restraining order or injunction may be granted without requiring the University to post a bond. Any review by an arbitrator pursuant to this Section 11(n) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(n)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Grantee agrees that it would be difficult to measure any damages caused to the University and its Affiliates which might result from any breach by the Grantee of the covenants set forth in Section 6, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Grantee breaches, or proposes to breach, Section 6, the University and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 6 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Grantee and the University (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN OR THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Data Protection</u>. Grantee acknowledges that the processing of Grantee's personal data is required for execution and administration of the Plan and agrees as a condition of their participation in the Plan that any personal data in relation to them may be held by the University and/or any of its Affiliates and passed to any third party where necessary for the execution and administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

*[Signature Page to Follow]* 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first written above.

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| | |
|:---|:---|
| THE UNIVERSITY OF PHOENIX, INC. | THE UNIVERSITY OF PHOENIX, INC. |
| By: |  |
|  | Cheryl Naumann |
|  | Chief Human Resources Officer |

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*[Signature Page to Restricted Stock Unit Grant Certificate]* 

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I acknowledge that I have read and understand the terms of this Agreement.

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| | |
|:---|:---|
| **Employee: [ ]** | **Employee ID: [ ]** |

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## Exhibit 10.13

**Exhibit 10.13** 

**UNIVERSITY OF PHOENIX, INC.** 

**MANAGEMENT EQUITY PLAN** 

Section 1. <u>Purpose</u>

The Plan authorizes the Committee to provide Persons who are providing, or have agreed to provide, services to the Company or its Affiliates, who are in a position to contribute to the long-term success of the Company or its Affiliates, with grants of Awards. The Company believes that this incentive program will cause those Persons to increase their interest in the welfare of the Company and its Affiliates, and aid in attracting, retaining and motivating Persons of outstanding ability.

Section 2. <u>Definitions</u>

Capitalized terms used herein shall have the meanings set forth in this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" means, with respect to any specified Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person, provided that, in any event, any business in which the Company has any direct or indirect ownership interest shall be treated as an Affiliate of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Apollo</u>" means Apollo Management Holdings, L.P., a Delaware limited

partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Award</u>" means, individually or collectively, any Option, Restricted Stock, RSU or Other Stock-Based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Cause</u>," with respect to each Grantee, means a finding by the Committee of: (A) the Grantee's gross negligence or willful misconduct, or willful failure to attempt in good faith to substantially perform his or her duties (other than due to physical or mental illness or incapacity), (B) the Grantee's conviction of, or plea of guilty or *nolo contendere* to, or confession to, (1) a misdemeanor involving moral turpitude or (2) a felony (or the equivalent of a misdemeanor involving moral turpitude or felony in a jurisdiction other than the United States), (C) the Grantee's knowingly willful material violation of the Company's or its applicable Affiliate's written policies that the Committee determines is materially detrimental to the best interests of the Company or its Affiliates, (D) the Grantee's fraud or misappropriation, embezzlement or material misuse of funds or property belonging to the Company or its Affiliates, (E) the Grantee's use of alcohol or drugs that materially interferes with the performance of his or her duties, or (F) willful or reckless misconduct in respect of the Grantee's obligations to the Company or its Affiliates or other acts of misconduct by the Grantee occurring during the course of the Grantee's employment that in either case results in or could reasonably be expected to result in material damage to the property, business or reputation of the Company or its Affiliates; <u>provided</u>, <u>however</u>, that the Grantee shall be provided a single 15-day period to cure any of the events or occurrences described in any of the immediately preceding clauses (A), (C), (E) and (F) hereof, to the extent curable. Notwithstanding anything to the contrary, if, within six (6) months subsequent to a Grantee's termination of service for any reason other than by the Company for Cause, the Company determines that such Grantee's termination of service could

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have been for Cause, such Grantee's termination of service will be deemed to have been for Cause for all purposes, and such Grantee will be required to disgorge to the Company all amounts received under the Plan, any Grant Certificate or otherwise that would not have been payable to such Grantee had such termination of service been by the Company for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Change in Control</u>" means, except as otherwise provided in a Grant Certificate, the occurrence of either of the following: (i) (A) Apollo and its Affiliates (the "<u>Apollo Holders</u>") cease to be the beneficial owners, directly or indirectly, of a majority of the combined voting power of the Company's outstanding securities; and (B) a person, entity or group other than the Apollo Holders becomes the direct or indirect beneficial owner of a percentage of the combined voting power of the Company's outstanding securities that is greater than the percentage of the combined voting power of the Company's outstanding securities beneficially owned directly or indirectly by the Apollo Holders; or (ii) a sale of all or substantially all of the assets of the Company to a person, entity or group other than the Apollo Holders; <u>provided</u>, <u>however</u>, that a mere IPO or a merger or other acquisition or combination transaction after which the Apollo Holders retain control or shared control of the Company, or have otherwise not sold or disposed of more than 50% of its investment in the Company as of the Closing Date in exchange for cash or marketable securities, will not result in a Change in Control; <u>provided</u>, <u>further</u>, that, following an IPO, the above clause (i) shall be deleted and replaced with: "a person, entity or group other than Apollo and its Affiliates (the "<u>Apollo Holders</u>") becomes the beneficial owner, directly or indirectly of 35% or more of the combined voting power of the Company's outstanding securities, and such combined voting power beneficially owned is greater than the percentage of the combined voting power of the Company's outstanding securities beneficially owned directly or indirectly by the Apollo Holders."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Closing Date</u>" means February 1, 2017.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and any successor thereto. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Committee</u>" means the Compensation Committee of the Board of Trustees of the Company, or such committee as may be appointed by the Compensation Committee or the Board of Trustees, or if no such Compensation Committee or other committee has been so appointed, the Board of Trustees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Company</u>" means University of Phoenix, Inc., an Arizona corporation, or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Control</u>" (including, with correlative meanings, the terms "<u>Controlled by</u>" and

"<u>under common Control with</u>"), as used with respect to any Person, means the direct or indirect possession of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Disability</u>," with respect to each Grantee, means a finding by the Committee of the Grantee's incapacitation through any illness, injury, accident or condition of either a physical or psychological nature that has resulted in his or her inability to perform the essential functions of his or her position, even with reasonable accommodations, for one hundred eighty (180) calendar days during any period of three hundred sixty-five (365) consecutive calendar days, and such incapacity is expected to continue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Employee</u>" means any Person that is providing, or has agreed to provide, services to the Company or an Affiliate of the Company, whether as an employee, director or independent contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Fair Market Value</u>" of a Share on any given date means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Shares are listed on one or more National Securities Exchanges (within the meaning of the Exchange Act), each Share shall be valued at the closing price of a Share on the principal exchange on which such Shares are then trading, or, if no sales of Shares were made on such exchange on that date, the closing price of a Share for the next preceding day on which sales of Shares were made on the exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Shares are not traded on a National Securities Exchange but are quoted on NASDAQ or a successor quotation system and the Shares are listed as a National Market Issue under the NASD National Market System, each Share shall be valued at the last sales price per Share on such date as reported by NASDAQ or such successor quotation system, or, if no sales of Shares were reported by NASDAQ or such successor quotation system on that date, the last price of a Share as reported by NASDAQ or such successor quotation system for the next preceding day on which sales of Shares were reported by NASDAQ or such successor quotation system; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Shares are not publicly traded on a National Securities Exchange and are not quoted on NASDAQ or a successor quotation system, the fair market value of the Shares shall be determined in good faith by the Committee without regard to lack of liquidity, control or other similar discounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Governmental Entity</u>" means any national, state, county, local, municipal or other government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Grant Certificate</u>" means a certificate accepted by the Grantee, or other written agreement between the Company and the Grantee evidencing the grant of an Award hereunder and containing such terms and conditions not inconsistent with the express provisions of the Plan, as the Committee shall approve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Grantee</u>" means an Employee granted an Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>IPO</u>" means an initial public offering of the Shares (or the shares of common stock of any successors or subsidiaries of the Company) or other event a result of which is that the Shares become listed for trading on a National Securities Exchange or NASDAQ.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Options</u>" shall refer to options to acquire Shares that are granted under and are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Other Stock-Based Award</u>" means an Award granted under Section 6 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Permitted Transferee</u>" has the meaning set forth in Section 9(f)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Person</u>" means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, association, Governmental Entity, unincorporated entity or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Plan</u>" means this University of Phoenix, Inc. Management Equity Plan as set forth herein and as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Restricted Period</u>" means the period of time determined by the Committee during which an Award or a portion thereof is subject to restrictions or, as applicable, the period of time within which performance is measured for purposes of determining whether an Award has been earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Restricted Stock</u>" means Shares subject to certain specified restrictions (including, without limitation, a requirement that the Employee remain continuously employed or provide continuous services for a specified period of time) granted under Section 5(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Restricted Stock Unit" (or "RSU")</u> means an unfunded and unsecured promise to deliver Shares, cash, other securities or other property subject to certain restrictions (including, without limitation, a requirement that the Employee remain continuously employed or provide continuous services for a specified period of time) granted under Section 5(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Securities Act</u>" means the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Securities Laws</u>" means the Exchange Act, the Securities Act and state securities and "blue sky" laws, all as now enacted or as the same may from time to time be amended, and the applicable rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Share</u>" means a share of common stock of the Company, no par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Stockholders' Agreement</u>" means the University of Phoenix, Inc. Stockholders' Agreement, dated as of July 14, 2017, by and among the Company and the other stockholders party thereto, as the same may thereafter be amended from time to time in accordance with its terms.

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Section 3. <u>Shares Available under the Plan</u>

Subject to the provisions of Section 7, the total number of Shares with respect to which Awards may be granted under the Plan shall not exceed 3,525,041. If, prior to exercise of an Option, the lapse of restrictions on Restricted Stock or the settlement of Restricted Stock Unit Awards, all or any portion of such Awards is forfeited, lapses or terminates and consideration is not received by the Grantee in respect thereof, the Shares covered by such portion shall again be available for grants under the Plan. In addition, Shares issued to Grantees in connection with any Award that are repurchased for no value by the Company pursuant to the terms of such Award or the Stockholders' Agreement shall again be available for grants under the Plan. The Shares to be offered under the Plan shall be authorized and unissued common stock, or issued common stock that shall have been reacquired by the Company.

Section 4. <u>Administration of the Plan</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority of the Committee</u>. The Plan shall be administered by the Committee. The Committee shall have full and final authority to take the following actions, in each case subject to and consistent with the provisions of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to select the Employees to whom Awards may be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to determine the number of Shares subject to each such Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to determine the terms and conditions of any Award granted under the Plan, including the exercise price, vesting schedules, Restricted Period, conditions relating to exercise, and termination of the right to exercise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to determine the restrictions or conditions related to the delivery, holding and disposition of Shares acquired upon exercise of an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) to determine and/or increase the vested portion of any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) to prescribe the form of each Grant Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) to adopt, amend, suspend, waive and rescind such rules and regulations and appoint such agents as the Committee may deem necessary or advisable to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) to correct any defect or supply any omission or reconcile any inconsistency in the Plan and to construe and interpret the Plan and any Award, Grant Certificate or other instrument hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) to make all other decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Committee Authority</u>. Any action of the Committee pursuant to the authority granted to it under the Plan and any Grant Certificate shall be final, conclusive and binding on all Persons, including the Company, its Affiliates, Grantees, and any Person claiming any rights under the Plan from or through any Grantee, except to the extent that the Committee may subsequently modify, or take further action not consistent with, its prior action, or as expressly provided in any Grant Certificate. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such

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determination may thereafter be modified by the Committee (subject to Section 10). The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any Affiliate of the Company the authority, subject to such terms as the Committee shall determine, to perform such functions as the Committee may determine, to the extent permitted under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Limitation of Liability</u>. Each member of the Committee shall be entitled to rely or act in good faith upon any report or other information furnished to him or her by any officer or other employee of the Company or any of its Affiliates, the Company's independent certified public accountants or any executive compensation consultant, legal counsel or other professional retained by the Company to assist in the administration of the Plan. To the fullest extent permitted by applicable law, no member of the Committee, nor any officer or employee of the Company acting on behalf of the Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and all members of the Committee and any officer or employee of the Company acting on its behalf shall, to the greatest extent permitted by law, be fully indemnified and protected by the Company with respect to any such action, determination or interpretation.

Section 5. <u>Award Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Option Terms</u>. Unless otherwise determined by the Committee and set forth in a Grant Certificate, or as otherwise set forth in this Plan, Options granted under the Plan shall contain the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Termination</u>. Options shall terminate on the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the 90<sup>th</sup> day following the later of (i) the date that the Grantee is no longer employed or engaged by the Company and any Affiliate, and (ii) the vesting date of such Option; <u>provided</u>, <u>however</u>, that the Option shall not terminate until the 365<sup>th</sup> day following the date the Grantee is no longer employed or engaged by the Company and any Affiliate by reason of death or Disability (as determined by the Committee in its sole discretion); <u>provided</u>, <u>further</u>, that in all cases, unless otherwise set forth in the Grant Certificate, (1) the portion of any Option that is not vested on the date of termination of employment or engagement for any reason shall terminate immediately upon such termination, and (2) if such termination is for Cause, the vested portion shall terminate as well;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the tenth anniversary of the date of grant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) cancellation, termination or expiration of the Options pursuant to action taken by the Committee in accordance with Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Acceleration of Vesting and Extension of Exercise Period</u>. The Committee may in its sole discretion accelerate the vesting of any or all Options, which acceleration shall not affect any other terms and conditions of such Awards. Further, the Committee may in its sole discretion extend the exercise period of an Option beyond the termination or expiration of the Option as provided in Section 5(a)(i) above; <u>provided</u>*,* in no event shall the exercise period be extended beyond the date set forth in Section 5(a)(i)(B) above or otherwise in a manner that would result in adverse tax consequences under Section 409A of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Tax Status</u>. Each Option granted under the Plan is a nonqualified option and is not intended to qualify as an incentive stock option under Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conditions to Exercise of Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Only the vested portion of any Option may be exercised. Except as otherwise provided in this Section 5(b)(i) or in the applicable Grant Certificate, a Grantee shall exercise an Option by delivery of a written notice to the Company setting forth the number of Shares with respect to which the Option is to be exercised, together with either (x) a certified check or bank draft payable to the order of the Company for an amount equal to the sum of the exercise price for such Shares and any income taxes (subject to Section 5(b)(ii)) and employment taxes required to be withheld or (y) both (1) an instruction to the Company to undertake a "net exercise" procedure effected by withholding the number of Shares otherwise deliverable in respect of the Option having an aggregate Fair Market Value equal to the aggregate exercise price of all Shares with respect to which the Option is to be exercised, and (2) a certified check or bank draft payable to the order of the Company for an amount equal to any income taxes (subject to Section 5(b)(ii)) and employment taxes required to be withheld in connection with such exercise. The Committee may, in its sole discretion, at the time the Option is granted or at a later date, permit other forms of payment in a Grant Certificate or otherwise, including notes, Shares or other contractual obligations of a Grantee to make payment on a deferred basis. In addition, following an IPO, the Committee may, in its sole discretion, permit a Grantee to exercise an Option by means of a broker-assisted "cashless exercise" pursuant to which the Company is delivered a copy of irrevocable instructions to a stockbroker to sell the Shares otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the exercise price for such Shares and all applicable required withholding taxes. Any fractional Shares shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Before the Company issues any Shares to the Grantee pursuant to the exercise of an Option, the Company shall have the right to require that the Grantee make such provision, or furnish the Company such authorization, necessary or desirable so that the Company may satisfy its obligation under applicable tax laws to withhold for income or other taxes due upon or incident to such exercise. The Committee, may, in its sole discretion, at the time the Option is granted or at a later date, permit such withholding obligation to be satisfied through the withholding of Shares that would otherwise be delivered upon exercise of the Option, <u>provided</u>, <u>however</u>, that the number of Shares so withheld shall not have an aggregate Fair Market Value on the date of such withholding in excess of the maximum required withholding obligation with respect to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As a condition to the grant of an Option or delivery of any Shares upon exercise of an Option, the Company shall have the right to require that the Grantee become party to the Stockholders' Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restricted Stock and Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Generally</u>. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by a Grant Certificate. Each Restricted Stock and Restricted Stock Unit grant shall be subject to the conditions set forth in this Section 5(c), and to such other conditions not inconsistent with the Plan as determined by the Committee and as may be reflected in the applicable Grant Certificate. The Committee shall establish restrictions applicable to such Restricted Stock and Restricted Stock Units, including the Restricted Period, and the time or times at which Restricted Stock or Restricted Stock Units shall be granted or become vested. The Committee may in its sole discretion accelerate the vesting and/or the lapse of any or all of the restrictions on the Restricted Stock and Restricted Stock Units, which acceleration shall not affect any other terms and conditions of such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Stock Certificates; Escrow or Similar Arrangement</u>. Upon the grant of Restricted Stock, the Committee shall cause Share(s) to be registered in the name of the Grantee in book-entry form subject to the Company's directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Grantee pending vesting and the release of the applicable restrictions, the Committee may require the Grantee to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. If a Grantee shall fail to execute and deliver (in a manner permitted under Section 9(a) of the Plan or as otherwise determined by the Committee) a Grant Certificate and, if applicable, an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 5(c) and the applicable Grant Certificate, the Grantee generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including without limitation the right to vote such Restricted Stock (provided that any dividends payable on Restricted Stock shall be held by the Company and delivered (without interest) to the Grantee within 15 days following the date on which the restrictions on such Restricted Stock lapse (and the right to any such accumulated dividends shall be forfeited upon the forfeiture of the Restricted Stock to which such dividends relate)). The Committee shall also be permitted to cause a stock certificate registered in the name of the Grantee to be issued. To the extent that Restricted Stock is forfeited, any stock certificates issued to the Grantee evidencing such Shares shall be returned to the Company, and all rights of the Grantee to such Shares and as a shareholder with respect thereto shall terminate without further obligation or action on the part of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Restricted Stock Units</u>. No Shares shall be issued at the time an Award of Restricted Stock Units is made, and the Company will not be required to set aside a fund for the payment of any such Award. At the discretion of the Committee, each Restricted Stock Unit (representing one Share) awarded to a Grantee may be credited with dividends paid in respect of one Share ("<u>Dividend Equivalents</u>"). At the discretion of the Committee, Dividend Equivalents may be either currently paid to the Grantee or withheld by the Company for the Grantee's account, and interest may be credited on the amount of

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cash Dividend Equivalents withheld at a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Grantee's account and attributable to any particular Restricted Stock Unit (and earnings thereon, if applicable) shall be distributed to the Grantee upon settlement of such Restricted Stock Unit and, if such Restricted Stock Unit is forfeited, the Grantee shall have no right to such Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Restrictions; Forfeiture</u>. Restricted Stock and Restricted Stock Units awarded to a Grantee shall be subject to forfeiture until the expiration of the Restricted Period and the attainment of any other vesting criteria established by the Committee, and to such other terms and conditions as may be set forth in the applicable Grant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything to the contrary in the Plan, except as otherwise provided in the applicable Grant Certificate or any applicable employment, consulting, change-in-control, severance or other agreement between a Grantee and the Company or an Affiliate, the unvested portion of Restricted Stock and Restricted Stock Units shall terminate and be forfeited upon termination of employment or service of the Grantee granted the applicable Award. The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock and Restricted Stock Units whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the Restricted Stock Award or Restricted Stock Unit Award, such action is appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Delivery of Restricted Stock and Settlement of Restricted Stock Units</u>. Upon the expiration of the Restricted Period with respect to any Shares of Restricted Stock and the attainment of any other vesting criteria established by the Committee, the restrictions set forth in the applicable Grant Certificate shall be of no further force or effect with respect to such Shares, except as set forth in the applicable Grant Certificate. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Grantee, or his or her beneficiary, without charge a notice evidencing a book-entry notation (or, if applicable, the stock certificate) evidencing the Shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full Share). Dividends, if any, that may have been withheld by the Committee and attributable to any particular Share of Restricted Stock shall be distributed to the Employee in cash or, at the sole discretion of the Committee, in Shares having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions on such Share and, if such Share is forfeited, the Grantee shall have no right to such dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Unless otherwise provided by the Committee in a Grant Certificate or any applicable employment, consulting, change-in-control, severance or other agreement between a Grantee and the Company or an Affiliate, upon the expiration of the Restricted Period and the attainment of any other vesting criteria established by the Committee, with respect to any outstanding Restricted Stock Units, the Company shall deliver to the Grantee, or his or her beneficiary, without charge, one Share (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit that has not then been forfeited and with respect to which the Restricted Period has expired and any other

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such vesting criteria are attained ("<u>Released Unit</u>"); <u>provided</u>, <u>however</u>, that the Committee may, in its sole discretion, elect to pay cash or part cash and part Shares in lieu of delivering only Shares in respect of such Released Units. If a cash payment is made in lieu of delivering Shares, the amount of such payment shall be equal to the Fair Market Value of the Shares as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units. To the extent provided in a Grant Certificate or at the sole discretion of the Committee, the holder of outstanding Released Units shall be entitled to be credited with Dividend Equivalents (upon the payment by the Company of dividends on Shares) either in cash or, at the sole discretion of the Committee, in Shares having a Fair Market Value equal to the amount of such dividends (and interest may, at the sole discretion of the Committee, be credited on the amount of cash Dividend Equivalents at a rate and subject to such terms as determined by the Committee), which accumulated Dividend Equivalents (and interest thereon, if applicable) shall be payable at the same time as the underlying Restricted Stock Units are settled following the release of restrictions on such Restricted Stock Units, and, if such Restricted Stock Units are forfeited, the Grantee shall have no right to such Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Before the Company issues any Shares to the Grantee pursuant to the vesting or settlement of any Restricted Stock or Restricted Stock Units, the Company shall have the right to require that the Grantee make such provision, or furnish the Company such authorization, necessary or desirable so that the Company may satisfy its obligation under applicable tax laws to withhold for income or other taxes due upon or incident to such vesting or settlement. The Committee, may, in its sole discretion, at the time the Restricted Stock or Restricted Stock Units are granted or at a later date, permit such withholding obligation to be satisfied through the withholding of Shares, securities, other property or cash that would otherwise be delivered upon vesting or settlement of the Award, <u>provided</u>, <u>however</u>, that the shares, securities, property or cash so withheld shall not have an aggregate Fair Market Value on the date of such withholding in excess of the maximum required withholding obligation with respect to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) <u>Legends on Restricted Stock</u>. Each certificate representing Restricted Stock awarded under the Plan, if any, shall bear a legend substantially in the form of the following in addition to any other information the Company deems appropriate until the lapse of all restrictions with respect to such Shares:

"TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE UNIVERSITY OF PHOENIX, INC. MANAGEMENT EQUITY PLAN AND A GRANT CERTIFICATE, DATED AS OF _____________, BETWEEN UNIVERSITY OF PHOENIX, INC. AND __________________. A COPY OF SUCH PLAN AND GRANT CERTIFICATE IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF UNIVERSITY OF PHOENIX, INC."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Grant In Connection With Change in Control or IPO</u>. Immediately prior to the first to occur of a Change in Control and an IPO, the Chief Executive Officer of the Company may allocate (and the Committee shall cause to be awarded and issued) to then-active Employees Options with respect to a number of Shares no greater than the number of Shares that remain available for grant pursuant to Section 3. Such Options shall (i) have an exercise price of $10, and (ii) shall have terms and conditions (including, without limitation, with respect to vesting) that are substantially identical to those set forth in the Option Grant Certificate attached hereto as Annex A, except that such Options (x) shall be vested upon grant with respect to substantially the same percentage of Shares as an Option granted pursuant to such form of Option Grant Certificate attached hereto as Annex A on May 9, 2017, to an Employee who remained continuously employed by the Company through the date of such Change in Control or IPO, and

(y) shall be exercisable only upon a Change in Control or, if earlier, upon the applicable Grantee's termination of employment or engagement with the Company or its Affiliates.

Section 6. <u>Other Stock- Based Awards</u>. The Committee may issue unrestricted Shares, rights to receive grants of Awards at a future date, other Awards denominated in Shares (including, without limitation, performance shares or performance units), or Awards that provide for cash payments based in whole or in part on the value or future value of Shares under the Plan to Grantees, alone or in tandem with other Awards, in such amounts as the Committee shall from time to time in its sole discretion determine. Each Other Stock-Based Award granted under the Plan shall be evidenced by a Grant Certificate. Each Other Stock-Based Award so granted shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Grant Certificate including, without limitation, the payment by the Grantee of the Fair Market Value of such Shares on the date of grant.

Section 7. <u>Adjustment Upon Changes in Capitalization</u>

If any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or exchange of Shares or other securities, any stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or other property), liquidation, dissolution, or other similar transactions or events (including a Change in Control) affects the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Grantees under the Plan, then the Committee shall make an equitable or substitution adjustment in (i) the number and kind of Shares deemed to be available thereafter for grants of Awards under Section 3, (ii) the number and kind of Shares that may be delivered or deliverable in respect of outstanding Awards, (iii) performance goals, targets, or measures with respect to any Award, (iv) the exercise price of outstanding Options and/or (v) Options to be granted pursuant to Section 5(d); <u>provided</u>, <u>however</u>, that the manner of any such equitable adjustment or substitution shall be determined in the good faith of the Committee. In addition, the Committee shall have discretion to make the foregoing types of adjustments and adjustments to all other matters it deems relevant, as it may determine appropriate and equitable in other types of events, including in the event of an acquisition or disposition of any of the businesses of the Company or its Affiliates occurring after the date of grant of any Award. For the avoidance of doubt, no adjustment shall be required to reflect dilution resulting from any additional investments at fair market value in the Company by Apollo or any other Person or entity. In addition, except as otherwise specifically provided in a Grant Certificate, the Committee is authorized to make equitable adjustments in the terms and conditions of, and the criteria included in, Awards (including, without limitation, cancellation of Awards in exchange for a payment in cash, Shares or other equity interests, securities or property, or any combination thereof equal to the Fair Market Value of the Shares subject to such

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canceled Awards (less the amount of the exercise price in the case of Options), cancellation of out-of-the-money Options for no consideration, substitution of Awards using securities of a successor or other entity, acceleration of the time that Awards vest or expire, or adjustment of performance targets) in connection with a Change in Control or a Sale Transaction (as defined in the Stockholders' Agreement). Any adjustments made pursuant to this Section 7 shall be determined in a manner consistent with Section 409A of the Code to the extent so required.

Section 8. <u>Restrictions on Issuing Shares</u>

The obligation of the Company to make payment of Awards in Shares or otherwise shall be subject to all applicable laws, rules and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell any Shares pursuant to an Award unless such Shares have been properly registered for sale pursuant to the Securities Laws or unless such Shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company may, but shall be under no obligation to, register for sale under the Securities Laws any of the Shares to be offered or sold under the Plan. If the Shares offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Laws, the Company may restrict the transfer of such Shares and may legend the certificates representing such Shares in such manner as it deems advisable to ensure the availability of any such exemption. The Committee shall have the right to condition the grant of an Award or the exercise of any Option on the Grantee's undertaking in writing to comply with such restrictions on any subsequent disposition of the Shares issued or transferred thereunder as the Committee shall deem necessary or advisable as a result of any applicable law or regulation, any official interpretation thereof, or any underwriting agreement.

Section 9. <u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant Certificate; No Uniformity of Treatment</u>. Each Award shall be evidenced by a Grant Certificate. The terms and provisions of such Grant Certificates may vary among Grantees and among different Awards granted to the same Grantee. There is no obligation for uniformity of treatment of Grantees and any other holders or beneficiaries of Awards, and the terms and conditions of Awards, and the determinations and interpretations of the Committee with respect to Awards need not be the same with respect to one Grantee and such other Grantees (whether or not they are similarly situated). Unless otherwise stated in the Grant Certificate, in the event of a conflict between the terms of the Grant Certificate and the Plan, the terms of the Plan shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Repurchase Right</u>. A Grant Certificate may provide for the Company's ability to repurchase outstanding Awards (or Shares acquired in respect of Awards) on such terms as set forth in the Grant Certificate. Shares acquired in respect of Awards shall be subject to repurchase by the Company on such terms as set forth in the Stockholders' Agreement (and, if applicable, the Grant Certificate).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Rights as Stockholders</u>. The holder of an Option or other Award shall not be deemed for any purpose, or have any of the rights or privileges of, a stockholder of the Company in respect of any Shares purchasable upon the exercise of any part of an Option or deliverable in respect of such other Award unless, until and to the extent that (i) such holder has signed a joinder to the Stockholders' Agreement designated by the Company (in the form attached to such Stockholders' Agreement) and (ii) in the case of an Option, such Option shall have been exercised pursuant to its terms (including, without limitation, the satisfaction of all conditions under Section 5(b) hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Right to Continued Employment</u>. The grant of an Award in any year shall not give the Grantee any right to similar grants in future years, any right to continue such Grantee's employment or service relationship with the Company or its Affiliates, or, until Shares are issued, any rights as a stockholder of the Company. No benefits derived by the Grantee under this Plan will be taken into account for the purposes of determining the Grantee's severance payments, if any, or the contribution or entitlement to benefits under any retirement, pension, profit sharing, group insurance or other benefit or compensation plan or for the purposes of determining any other claim for compensation the Grantee may have against the Company or against any of its Affiliates. All Grantees shall remain subject to discharge to the same extent as if the Plan were not in effect. For all purposes herein, a person who transfers from employment or service with the Company to employment or service with an Affiliate or vice versa (or from an employee to an independent contractor or vice versa) shall not be deemed to have terminated employment or service with the Company or an Affiliate. For purposes of the Plan, a sale of any Affiliate of the Company that employs or engages a Grantee shall be treated as the termination of such Grantee's employment or engagement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Right to Company Assets</u>. No Grantee, and no beneficiary or other Persons claiming under or through the Grantee, shall have any right, title or interest by reason of any Award to any particular assets of the Company or Affiliates of the Company, or any Shares allocated or reserved for the purposes of the Plan or subject to any Award except as set forth herein. The Company shall not be required to establish any fund or make any other segregation of assets to assure satisfaction of the Company's obligations under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Nontransferability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as otherwise provided by the Committee, no Award may be sold, transferred, assigned, pledged or otherwise encumbered, except by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order, and an Award shall be exercisable during the Grantee's lifetime only by the Grantee. Upon a Grantee's death, the estate or other beneficiary of such deceased Grantee shall be subject to all the terms and conditions of the Plan and Grant Certificate, including the provisions relating to the termination of the right to exercise the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Committee may permit Awards to be transferred by a Grantee, without consideration, subject to such rules as the Committee may adopt, to (A) a spouse and/or lineal descendants (whether by blood relationship or adoption), and any other Person as to which such natural Person is a lineal descendant (whether by blood relationship or adoption); (B) any trust or other entity solely for the benefit of any Person described in clause (A) or combinations of such Persons; or (C) any other transferee as may be approved either (I) by the Committee, or (II) as provided in the

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applicable Grant Certificate (each transferee described in clauses (A), (B) and (C) above is referred to herein as a "<u>Permitted Transferee</u>"); <u>provided</u>, that the Grantee gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Grantee in writing that such a transfer would comply with the requirements of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The terms of any Award transferred in accordance with paragraph (ii) above shall apply to the Permitted Transferee, and any reference in the Plan, or in any applicable Grant Certificate, to a Grantee shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Award unless there shall be in effect a registration statement on an appropriate form covering the Shares to be acquired pursuant to the exercise of such Award if the Committee determines, consistent with any applicable Grant Certificate, that such a registration statement is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Grantee under the Plan or otherwise; and (D) the consequences of the termination of the Grantee's employment by, or services to, the Company or an Affiliate under the terms of the Plan and the applicable Grant Certificate shall continue to be applied with respect to the Permitted Transferee, including, without limitation, that an Award shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Grant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Misconduct of Grantee</u>. Notwithstanding anything to the contrary in the Plan, the Committee, in its sole discretion, may establish procedures in the applicable Grant Certificate providing for the forfeiture or cancellation of any Award (whether vested or unvested), or the disgorgement of gains from the exercise, vesting or settlement of the Award, in each case to be applied if the Grantee engages in conduct detrimental to the Company. For purposes of the Plan, conduct detrimental to the Company shall include Grantee's breaches of any restrictive covenants on competition, solicitation of employees or clients, or confidential information, and may include conduct that the Committee in its sole discretion determines (i) to be injurious or prejudicial to any interest of the Company or any Affiliate, or (ii) to otherwise violate a policy, procedure or rule applicable to the Grantee with respect to the Company or any of its Affiliates, or if the Grantee's employment with the Company and its Affiliates is terminated for Cause. Notwithstanding any of the foregoing to the contrary, the Company shall retain the right to bring an action at equity or law to enjoin Grantee's misconduct and recover damages resulting from such misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Governing Law</u>. The Plan and Award grants hereunder shall be governed by the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>. If any provision of the Plan or any Grant Certificate is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Successors</u>. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Section</u> <u>409A</u>. Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan comply with or be exempt from Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Grantee is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of such Grantee in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any Affiliate shall have any obligation to indemnify or otherwise hold such Grantee (or any beneficiary) harmless from any or all of such taxes or penalties. Notwithstanding any provision of the Plan to the contrary, in the event that the Committee determines that any Shares issued or amounts payable hereunder will be subject to additional tax under Section 409A of the Code, prior to delivery to such Grantee of such Shares or payment to such Grantee of such amount, the Company may (i) adopt such amendments to the Plan and Awards and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder and/or (ii) take such other actions as the Committee determines necessary or appropriate to avoid or limit the imposition of such additional tax under Section 409A of the Code. In the event that it is reasonably determined by the Committee that, as a result of Section 409A of the Code, payments in respect of any Awards under the Plan may not be made at the time contemplated by the terms of the Plan or the relevant Grant Certificate, as the case may be, without causing the Grantee holding such Award to be subject to taxation under Section 409A of the Code, the Company will make such payment on the first day that would not cause the Grantee to incur any tax liability under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Shareholder Approval</u>. The Plan shall be submitted for approval by a majority of the outstanding Shares entitled to vote within the later of 12 months following the date the Plan is adopted or the grant of any Award is made.

Section 10. <u>Amendment or Termination</u>. The Committee may, at any time, alter, amend, suspend, discontinue or terminate this Plan; <u>provided</u>, <u>however</u>, that, except as provided in Section 7, no such action shall materially adversely affect the rights of any Grantee with respect to Awards previously granted hereunder without such Grantee's consent.

## Exhibit 10.14

**Exhibit 10.14** 

**Phoenix Education Partners, Inc.** 

**2025 Omnibus Incentive Plan** 

**1. Purpose.** The Phoenix Education Partners, Inc. 2025 Omnibus Incentive Plan (as amended from time to time, the "***Plan***") is intended to help Phoenix Education Partners, Inc., a Delaware corporation (including any successor thereto, the "***Company***"), and its Affiliates (i) attract and retain key personnel by providing them the opportunity to acquire an equity interest in the Company or other incentive compensation measured by reference to the value of Common Stock or a targeted dollar value if denominated in cash, and (ii) align the interests of key personnel with those of the Company's stockholders.

**2. Effective Date; Duration.** The Plan shall be effective as of the effective date of the Company's initial public offering (the "***Effective Date***"). The expiration date of the Plan, on and after which date no Awards may be granted, shall be the tenth anniversary of the Effective Date; <u>provided</u>, <u>however</u>, that such expiration shall not affect Awards then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards.

**3. Definitions.** The following definitions shall apply throughout the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" means any person or entity that directly or indirectly controls, is controlled by or is under common control with the Company. The term "control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as applied to any person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Apollo</u>" means, collectively, the investment funds managed, sponsored or advised by Apollo Management VIII, L.P. A reference to a member of Apollo is a reference to any such investment fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Apollo Holders</u>" means Apollo and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Award</u>" means any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Stock-Based Award, or Other Cash-Based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Award Document</u>" means the agreement or other instrument, notice or other document (whether in written or electronic form) evidencing any Award granted under the Plan. Any reference herein to an Award Document or other agreement or document will include any agreement or document delivered electronically or posted on the Company's intranet or other shared electronic medium controlled by the Company to which the Participant has access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Beneficial Ownership</u>" has the meaning set forth in Rule 13d-3 promulgated under Section 13 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Cause</u>" in the case of a particular Award, unless the applicable Award Document states otherwise, (i) shall have the meaning given such term (or term of similar import) in any employment, consulting, change-in-control, severance or any other agreement between the Participant and the Company or an Affiliate, or severance plan of the Company or an Affiliate in which the Participant is eligible to participate, in either case in effect at the time of the Participant's termination of employment or service with the Company and its Affiliates, or (ii) if "cause" or term of similar import is not defined in, or in the

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absence of, any such employment, consulting, change-in-control, severance or any other agreement between the Participant and the Company or an Affiliate, or severance plan in which the Participant is eligible to participate, means: the termination of the Participant's service or employment with the Company or its Affiliates for one or more of the following reasons: (A) willful, material and continued failure or refusal to perform the material duties and responsibilities required of his or her position with the Company or its Affiliates that, if curable, is not cured within 30 days after the Company or its Affiliates delivers to the Participant written notice specifying the nature of such failure or refusal; (B) a material breach of a material policy of the Company or its Affiliates, including those governing employee conduct and procedures (including, by way of example only, policies regarding equal employment, anti-harassment and anti-discrimination), which breach, if curable, is not cured within 30 days after the Company or its Affiliates deliver to the Participant written notice specifying the nature of such breach; (C) the Participant's unlawful use (including being under the influence) or possession of illegal drugs on the premises of the Company or its Affiliates or while performing duties for the Company or its Affiliates, or the Participant's habitual use of alcohol or other legal substances that materially interfere with the performance of the Participant's duties; (D) conviction of or pleading guilty or *nolo contendere* to any felony or any misdemeanor involving theft, fraud, embezzlement, dishonesty, misappropriation of property or a depraved or immoral act; (E) commission of any act of fraud against, or the material misappropriation of material proprietary information or material property belonging to the Company or its Affiliates; (F) willful misconduct, gross negligence or reckless disregard of the Participant's duties for the Company or its Affiliates that materially injures (or is reasonably likely to materially injure) the business, reputation or financial condition of the Company or its Affiliates; or (G) a material breach by the Participant of a material provision of any agreement he or she may have at the time with the Company, including (without limitation) any restrictive covenant, employment, proprietary information, non-disclosure or confidentiality agreement, provided that any act or conduct by a Participant described in item (A), (B), (F) or (G) will not constitute Cause if (i) the Participant ceases such act or conduct and cures its effects in all material respects within a period of thirty (30) days following notice thereof by the Board or the Chief Executive Officer (or his or her delegate) to the Participant; and (ii) the Participant has not previously engaged in any act or conduct described in item (A), (B), (F) or (G) that did not constitute Cause because the Participant ceased such act or conduct and cured its effects in all material respects within 30 days after notice, as described above. The determination as to whether a Participant's service is being terminated for Cause will be made in good faith by the Company and will be final and binding on the Participant. Any determination by the Company that the service of a Participant was terminated with or without Cause for the purposes of outstanding Awards held by such Participant will have no effect upon any determination of the rights or obligations of the Company, any Affiliate or such Participant for any other purpose. Notwithstanding anything to the contrary, if, within six (6) months subsequent to a Participant's termination of service for any reason other than by the Company for Cause, the Company determines that such Participant's termination of service could have been for Cause, such Participant's termination of service will be deemed to have been for Cause for all purposes, and such Participant will be required to disgorge to the Company all amounts received under the Plan, any Award Document or otherwise that would not have been payable to such Participant had such termination of service been by the Company for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Change in Control</u>" means, in the case of a particular Award, unless the applicable Award Document states otherwise, the first to occur of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition by any Person or related "group" (as such term is used in Section 13(d) and Section 14(d) of the Exchange Act) of Persons, or Persons acting jointly or in concert, of Beneficial Ownership (including control or direction) of 50% or more (on a fully diluted basis) of either (A) the then-outstanding shares of Common Stock, including Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock (the "***Outstanding Company Common Stock***"), or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote in the election of directors (the "***Outstanding Company Voting Securities***"), but excluding any acquisition by the Company or any of its Affiliates, the Apollo Holders, the Vistria Holders, or by any employee benefit plan sponsored or maintained by the Company or any of its Affiliates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a change in the composition of the Board such that members of the Board during any consecutive 12-month period (the "***Incumbent Directors***") cease to constitute a majority of the Board. Any person becoming a director through election or nomination for election approved by a valid vote of at least two-thirds of the Incumbent Directors shall be deemed an Incumbent Director; <u>provided</u>, <u>however</u>, that no individual becoming a director as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board, shall be deemed an Incumbent Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the approval by the stockholders of the Company of a plan of complete dissolution or liquidation of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consummation of a reorganization, recapitalization, merger, amalgamation, consolidation, statutory share exchange or similar form of corporate transaction involving the Company (a "***Business Combination***"), or sale, transfer or other disposition of all or substantially all of the business or assets of the Company to an entity that is not an Affiliate of the Company, an Apollo Holder or Vistria Holder, or to any employee benefit plan sponsored or maintained by the Company or any of its Affiliates (a "***Sale***"), unless immediately following such Business Combination or Sale: (A) more than 50% of the total voting power of the entity resulting from such Business Combination or the entity that acquired all or substantially all of the business or assets of the Company in such Sale (in either case, the "***Surviving Company***"), or the ultimate parent entity that has Beneficial Ownership of sufficient voting power to elect a majority of the board of directors (or analogous governing body) of the Surviving Company (the "***Parent Company***"), is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination or Sale (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination or Sale), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to the Business Combination or Sale, (B) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company), and (C) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) immediately following the consummation of the Business Combination or Sale were Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination or Sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended, and any successor thereto. References to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Committee</u>" means the Compensation Committee of the Board (or subcommittee thereof if required with respect to actions taken to comply with Rule 16b-3 promulgated under the Exchange Act in respect of Awards) or, if no such Compensation Committee or subcommittee thereof exists, or if the Board otherwise takes action hereunder on behalf of the Committee, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Common Stock</u>" means the common stock of the Company, par value $0.01 per share (and any stock or other securities into which such common stock are converted or into which they are exchanged).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Date of Grant</u>" or "<u>Grant Date</u>" of an Award has the meaning set forth in Section 4(f) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Disability</u>" means cause for termination of the Participant's employment or service due to a determination that the Participant is disabled in accordance with a long-term disability insurance program maintained by the Company or a determination by the U.S. Social Security Administration that the Participant is totally disabled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>$</u>" shall refer to the United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Effective Date</u>" has the meaning set forth in Section 2 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Eligible Director</u>" means a director who satisfies the conditions set forth in Section 4(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Eligible Person</u>" means any (i) individual employed by the Company or a Subsidiary, (ii) director or officer of the Company or a Subsidiary, (iii) consultant or advisor to the Company or a Subsidiary who may be offered securities registrable on Form S-8 under the Securities Act, or (iv) prospective employee, director, officer, consultant or advisor who has accepted an offer of employment or service from the Company or its Subsidiaries (and would satisfy the provisions of clause (i), (ii) or (iii) above once such individual begins employment with or providing services to the Company or a Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Exchange</u>" means the New York Stock Exchange and/or any other securities exchange or inter-dealer quotation service on which the Common Stock is listed or quoted, as applicable. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Exchange Act</u>" means the U.S. Securities Exchange Act of 1934, as amended, and any successor thereto. References to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Exercise Price</u>" has the meaning set forth in Section 7(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Fair Market Value</u>" means, (i) with respect to Common Stock on a given date, (x) if the Common Stock is listed on a national securities exchange, the closing sales price of a share of Common Stock reported on such exchange on such date, or if there is no such sale on that date, then on the last preceding date on which such a sale was reported, or (y) if the Common Stock is not listed on any national securities exchange, the amount determined by the Committee in good faith to be the fair market value of the Common Stock, or (ii) with respect to any other property on any given date, the amount determined by the Committee in good faith to be the fair market value of such other property as of such date; <u>provided</u>, <u>however</u>, as to any Awards with a Date of Grant that is the date of the pricing of the Company's initial public offering, "Fair Market Value" shall be equal to the per share price at which the Common Stock is offered to the public in connection with such initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Immediate Family Members</u>" has the meaning set forth in Section 14(b)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Incentive Stock Option</u>" means an Option that is designated by the Committee as an incentive stock option as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Indemnifiable Person</u>" has the meaning set forth in Section 4(i) of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Intrinsic Value</u>" with respect to an Option or SAR means (i) the excess, if any, of the price or implied price per share of Common Stock in a Change in Control or other event over (ii) the exercise or hurdle price of such Award multiplied by (iii) the number of shares of Common Stock covered by such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Nonqualified Stock Option</u>" means an Option that is not designated by the Committee as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Option</u>" means an Award granted under Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Option Period</u>" has the meaning set forth in Section 7(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Other Cash-Based Award</u>" has the meaning set forth in Section 10 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Other Stock-Based Award</u>" has the meaning set forth in Section 10 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Participant</u>" has the meaning set forth in Section 6 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Performance Conditions</u>" means specific levels of performance of the Company (and/or one or more Affiliates, divisions or operational and/or business units, product lines, brands, business segments, administrative departments, units, or any combination of the foregoing), which may be determined in accordance with GAAP or on a non-GAAP basis, and with or without adjustments, including without limitation, on the following measures: (i) net earnings or net income (before or after taxes); (ii) basic or diluted earnings per share (before or after taxes); (iii) net revenue or net revenue growth; (iv) gross revenue or gross revenue growth, gross profit or gross profit growth; (v) net operating profit (before or after taxes); (vi) return measures (including, but not limited to, return on investment, assets, net assets, capital, gross revenue or gross revenue growth, invested capital, equity or sales); (vii) cash flow measures (including, but not limited to, operating cash flow, free cash flow and cash flow return on capital), which may but are not required to be measured on a per-share basis; (viii) earnings before or after taxes, interest, depreciation, and amortization (including EBIT and EBITDA); (ix) gross or net operating margins; (x) productivity ratios; (xi) share price (including, but not limited to, growth measures and total shareholder return); (xii) expense targets or cost reduction goals, general and administrative expense savings; (xiii) operating efficiency; (xiv) customer satisfaction; (xv) working capital targets; (xvi) measures of economic value added or other "value creation" metrics; (xvii) enterprise value; (xviii) stockholder return; (xix) client or customer retention; (xx) competitive market metrics; (xxi) employee retention; (xxii) personal targets, goals or completion of projects (including but not limited to succession and hiring projects, completion of specific acquisitions, reorganizations or other corporate transactions or capital-raising transactions, expansions of specific business operations and meeting divisional or project budgets); (xxiii) system-wide sales; (xxiv) cost of capital, debt leverage year-end cash position or book value; (xxv) strategic objectives, development of new product lines and related revenue, sales and margin targets, or international operations; (xxvi) product or line of business growth or sales growth; or any combination of the foregoing. Any one or more of the aforementioned performance criteria may be stated as a percentage of another performance criteria, or used on an absolute or relative basis to measure the performance of the Company and/or one or more Affiliates as a whole or any divisions or operational and/or business units, product lines, brands, business segments, administrative departments of the Company and/or one or more Affiliates or any combination thereof, as the Committee may deem appropriate, or any of the above performance criteria may be compared to the performance of a group of comparator companies, or a published or special index that the Committee deems appropriate, or as compared to various stock market indices. The Performance Conditions may include a threshold level of performance below which no payment shall be made (or no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and a maximum level of performance above which no additional payment shall be made (or at which full vesting shall occur). The Committee shall have the authority to make equitable adjustments to the Performance Conditions as may be determined by the Committee, in its sole discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Permitted Transferee</u>" has the meaning set forth in Section 14(b)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Person</u>" has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Released Unit</u>" has the meaning set forth in Section 9(d)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Restricted Period</u>" has the meaning set forth in Section 9(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Restricted Stock</u>" means an Award of Common Stock, subject to certain specified restrictions, granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Restricted Stock Unit</u>" means an Award of an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property, subject to certain specified restrictions, granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>SAR Period</u>" has the meaning set forth in Section 8(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Securities Act</u>" means the U.S. Securities Act of 1933, as amended, and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations or other interpretive guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "<u>Stock Appreciation Right</u>" or "<u>SAR</u>" means an Award granted under Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "<u>Strike Price</u>" has the meaning set forth in Section 8(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "<u>Subsidiary</u>" means any corporation or other entity a majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "<u>Substitute Awards</u>" has the meaning set forth in Section 5(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "<u>Vistria Holders</u>" means The Vistria Group, L.P. and its Affiliates.

**4. Administration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee shall administer the Plan, and shall have the sole and plenary authority to (i) designate the Participants, (ii) determine the type, size, and terms and conditions of Awards to be granted and to grant such Awards, (iii) determine the method by which an Award may be settled, exercised, canceled, forfeited, suspended, or repurchased by the Company, (iv) determine the circumstances under which the delivery of cash, property or other amounts payable with respect to an Award may be deferred, either automatically or at the Participant's or Committee's election, (v) interpret, administer, reconcile any

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inconsistency in, correct any defect in and supply any omission in the Plan and any Award granted under the Plan, (vi) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan, (vii) accelerate the vesting, delivery or exercisability of, or payment for or lapse of restrictions on, or waive any condition in respect of, Awards, (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan or to comply with any applicable law, and (ix) settle all controversies regarding the Plan and Awards. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if applicable and if the Board is not acting as the Committee under the Plan), or any exception or exemption under applicable securities laws or the applicable rules of the Exchange, it is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan, be (1) a "non-employee director" within the meaning of Rule 16b-3 promulgated under the Exchange Act and/or (2) an "independent director" under the rules of the Exchange, or a person meeting any similar requirement under any successor rule or regulation ("***Eligible Director***"). However, the fact that a Committee member shall fail to qualify as an Eligible Director shall not invalidate any Award granted or action taken by the Committee that is otherwise validly granted or taken under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee may delegate all or any portion of its responsibilities and powers to any person(s) selected by it, except for grants of Awards to persons who are non-employee members of the Board or are otherwise subject to Section 16 of the Exchange Act. Any such delegation may be revoked by the Committee at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As further set forth in Section 14(f) of the Plan, the Committee shall have the authority to amend the Plan and Awards to the extent necessary to permit participation in the Plan by Eligible Persons who are located outside of the United States on terms and conditions comparable to those afforded to Eligible Persons located within the United States; <u>provided</u>, <u>however</u>, that no such action shall be taken without stockholder approval if such approval is required by applicable securities laws or regulation or Exchange listing guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Committee may in its discretion amend the terms of any one or more outstanding Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Award Documents for such Awards, subject to any specified limits in the Plan that are not subject to Board discretion. A Participant's rights under any Award will not be impaired by any such amendment unless the Company obtains the written consent of the affected Participant. A Participant's rights will not be deemed to have been impaired by any such amendment if the Committee, in its sole discretion, determines that the amendment, taken as a whole, does not materially impair the Participant's rights. In addition, subject to the limitations of applicable law, if any, the Committee may amend the terms of any one or more Awards without the affected Participant's consent (i) to maintain the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code, (ii) to clarify the manner of exemption from, or to bring the Award into compliance with Section 409A of the Code, or (iii) to comply with other applicable laws or regulations or Exchange requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If after the Date of Grant of any Award to a Participant, the Participant's regular level of time commitment in the performance of his or her services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an employee of the Company and has a change in status from a full-time employee to a part-time employee or takes an extended leave of absence), or the Participant's role or primary responsibilities are changed to a level that, in the good faith determination by the Committee, does not justify the Participant's unvested Awards, the Committee has the right in its sole discretion to (i) make a corresponding reduction in the number of shares or cash amount subject to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment and (ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The "Date of Grant" or "Grant Date" of an Award will, except as otherwise specified by Generally Accepted Accounting Principles in the U.S. and/or U.S. Treasury Regulations, each as may be applicable to a particular Award, be the latest date that all necessary corporate action constituting a grant by the Company of the Award to any Participant has been completed and all terms of the Award (including, in the case of Options, the exercise price thereof) are fixed or determinable, unless a later date is specified by the Committee. The date the documentation evidencing the Award is communicated to, or actually received or accepted by, the Participant does not affect the Date of Grant, if not unreasonably delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Award Document as a result of a clerical error in the papering of the Award Document, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Award Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions regarding the Plan or any Award or any documents evidencing Awards granted pursuant to the Plan shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons and entities, including, without limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of the Board or the Committee, nor any employee or agent of the Company (each such person, an "***Indemnifiable Person***"), shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a willful criminal act or willful criminal omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be involved as a party, witness or otherwise by reason of any action taken or omitted to be taken or determination made under the Plan or any Award Document and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval (not to be unreasonably withheld or delayed), in defense and settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined as provided below that the Indemnifiable Person is not entitled to be indemnified); <u>provided</u>, that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding, and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of recognized standing of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person's fraud or willful criminal act or willful criminal omission or that such right of indemnification is otherwise prohibited by law or by the Company's certificate of incorporation or by-laws. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the Company's certificate of incorporation, by-laws or policy, as a matter of law, individual indemnification agreement or contract or otherwise, or any other power or obligation that the Company may have to indemnify or defend such Indemnifiable Persons or hold them harmless.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Board may at any time and from time to time grant Awards and administer the Plan with respect to such Awards. In any such case, the Board shall have all the authority granted to the Committee under the Plan.

**5. Grant of Awards; Shares Subject to the Plan; Limitations.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Awards</u>. The Committee may grant Awards to one or more Eligible Persons. All Awards granted under the Plan shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of Performance Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Pool and Limits</u>. Subject to Section 11 of the Plan and subsection (e) below, the following limitations apply to the grant of Awards: (i) no more than [•]<sup>1</sup> shares of Common Stock may be reserved for issuance and delivered in the aggregate pursuant to Awards granted under the Plan, subject to an annual increase on the first day of each calendar year beginning on January 1, 2026 and ending on and including January 1, 2035, equal to the lesser of (A) 5% of the aggregate number of shares of Common Stock outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of shares as is determined by the Board (the "***Share Pool***"); (ii) no more than [•]<sup>2</sup> shares of Common Stock may be delivered pursuant to the exercise of Incentive Stock Options granted under the Plan; and (iii) the maximum amount (based on the Fair Market Value of shares of Common Stock on the Date of Grant as determined in accordance with applicable financial accounting rules) of Awards that may be granted in any single fiscal year to any non-employee member of the Board, taken together with any cash fees paid to such non-employee member of the Board in respect of service as a member of the Board during such fiscal year, shall be (i) $750,000 or (ii) $1,000,000 for the first year of service ; <u>provided</u>, that the foregoing limitation shall not apply in respect of any Awards issued to (x) a non-employee director in connection with the Company's initial public offering of shares of Common Stock, or in respect of any one-time equity grant upon his or her appointment to the Board or (y) a non-executive chairman of the Board, provided, that the non-employee director receiving such additional compensation does not participate in the decision to award such compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Share Counting</u>. The Share Pool shall be reduced, on the Date of Grant, by the relevant number of shares of Common Stock underlying each Award; provided that Awards that are valued by reference to shares of Common Stock but are required to be paid in cash pursuant to their terms shall not reduce the Share Pool. If and to the extent that Awards originating from the Share Pool terminate, expire, or are cash-settled, canceled, forfeited, exchanged, or surrendered without having been exercised, vested, or settled, the shares of Common Stock subject to such Awards shall again be available for Awards under the Share Pool. In addition, the following shares of Common Stock relating to Awards originating from the Share Pool shall become available for issuance under the Plan: (i) shares of Common Stock tendered by the Participants, or withheld by the Company, as full or partial payment to the Company upon the exercise of Options granted under the Plan; (ii) shares of Common Stock reserved for issuance upon the grant of Stock Appreciation Rights, to the extent that the number of reserved shares of Common Stock exceeds the number of shares of Common Stock actually issued upon the exercise of the Stock Appreciation Rights; (iii) shares of Common Stock withheld by, or otherwise remitted to, the Company to satisfy a Participant's tax withholding obligations upon the exercise, lapse of restrictions on, or settlement of, Awards granted under the Plan.

<sup>1</sup> To equal 10% of common shares outstanding. 

<sup>2</sup> To equal 10% of common shares outstanding. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Source of Shares</u>. Shares of Common Stock delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the Company, shares purchased on the open market or by private purchase, or a combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Substitute Awards</u>. The Committee may grant Awards in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines ("***Substitute Awards***"), and such Substitute Awards shall not be counted against the aggregate number of shares of Common Stock available for Awards (i.e., Substitute Awards will not be counted against the Share Pool); <u>provided</u>, that Substitute Awards issued or intended as "incentive stock options" within the meaning of Section 422 of the Code shall be counted against the aggregate number of Incentive Stock Options available under the Plan.

**6. Eligibility.** Participation shall be limited to Eligible Persons who have (i) been selected by the Committee to receive an Award under the Plan; (ii) entered into an Award Document in the form of an Agreement with the Company with respect to the Award, if required to do so by the Committee; and (iii) satisfied such other conditions to receipt of the Award as the Committee may specify in its discretion (each such Eligible Person, a "***Participant***").

**7. Options.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. Each Option shall entitle its recipient to purchase shares of Common Stock, on the terms and subject to the conditions set forth in the Plan and in the applicable Award Document. All Options granted under the Plan shall be Nonqualified Stock Options unless the Award Document expressly states otherwise. Incentive Stock Options shall be granted only subject to and in compliance with Section 422 of the Code, and only to Eligible Persons who are employees of the Company and its Subsidiaries and who are eligible to receive an Incentive Stock Option under the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such non-qualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option properly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price.</u> The exercise price ("***Exercise Price***") per share of Common Stock for each Option (that is not a Substitute Award) shall not be less than 100% of the Fair Market Value of such share, determined as of the Date of Grant. Any modification to the Exercise Price of an outstanding Option shall be subject to the prohibition on repricing set forth in Section 13(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting, Exercise and Expiration.</u> The Committee shall determine the manner and timing of vesting, exercise and expiration of Options. The period between the Date of Grant and the scheduled expiration date of the Option ("***Option Period***") shall not exceed ten years, unless the Option Period (other than in the case of an Incentive Stock Option) would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider-trading policy or a Company-imposed "blackout period," in which case the Option Period shall be extended automatically (other than with respect to Options with an Exercise Price as of the end of the Option Period (prior to any such extension) that is not less than the Fair Market Value of a share of Common Stock at such time) until the 30th day following the expiration of such prohibition (so long as such extension shall not violate Section 409A of the Code). The Company is not responsible for providing to Participants any notice or reminder of the impending expiration of their Options, and doing so at any time or for any Participant does not obligate the Company to do so at any other time or for any other Participant. The Committee may accelerate the vesting and/or exercisability of any Option, which acceleration shall not affect any other terms and conditions of such Option, and without any obligation to accelerate the vesting and/or exercisability of any other Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise and Form of Payment.</u> No shares of Common Stock shall be delivered pursuant to any exercise of an Option until the Participant has paid the Exercise Price to the Company in full and satisfied all associated tax obligations in accordance with Section 14(d). If and to the extent that all conditions to exercise are satisfied, Options may be exercised by delivery of written or electronic notice of exercise to the Company or its designee (including a third-party administrator) in accordance with the terms of the Option and the Award Document and any related procedures the Committee may establish from time to time, accompanied by payment of the Exercise Price and such applicable tax obligations. The Exercise Price shall be payable (i) in cash or by check, cash equivalent and/or shares of Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual delivery of such shares to the Company) or any combination of the foregoing; <u>provided</u>, that such shares of Common Stock are not subject to any pledge or other security interest; or (ii) by such other method as elected by the Participant and that the Committee may permit, in its sole discretion, including without limitation: (A) in the form of other property having a Fair Market Value on the date of exercise equal to the Exercise Price and all applicable tax obligations; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which the Company or its designee (including third-party administrators) is delivered a copy of irrevocable instructions to a stockbroker to sell shares of Common Stock otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price and all applicable tax obligations against delivery of the shares of Common Stock to settle the applicable trade; or (C) by means of a "net exercise" procedure effected by withholding the minimum number of shares of Common Stock otherwise deliverable in respect of an Option that, valued at Fair Market Value on the date of exercise, are needed to pay the Exercise Price and all applicable tax obligations. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional shares of Common Stock, or whether such fractional shares of Common Stock or any rights thereto shall be canceled, terminated or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notification upon Disqualifying Disposition of an Incentive Stock Option.</u> Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date on which the Participant makes a disqualifying disposition of any Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such Common Stock before the later of (i) two years after the Date of Grant of the Incentive Stock Option and (ii) one year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instruction from such Participant as to the sale of such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Compliance with Laws.</u> Notwithstanding the foregoing, in no event shall the Participant be permitted to exercise an Option in a manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, or any other applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of the Exchange.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Incentive Stock Option Grants to 10% Stockholders.</u> Notwithstanding anything to the contrary in this Section 7, if an Incentive Stock Option is granted to a Participant who owns stock representing more than ten percent of the voting power of all classes of stock of the Company or of a parent or subsidiary of the Company (within the meaning of Sections 424(e) and 424(f) of the Code), the Option Period shall not exceed five years from the Date of Grant of such Option and the Exercise Price shall be at least 110% of the Fair Market Value (on the Date of Grant) of the shares subject to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>$100,000 Per Year Limitation for Incentive Stock Options.</u> To the extent that the aggregate Fair Market Value (determined as of the Date of Grant) of shares of Common Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company) exceeds $100,000, such excess Incentive Stock Options shall be treated as Nonqualified Stock Options.

**8. Stock Appreciation Rights (SARs).** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally.</u> Each SAR shall entitle its recipient to payment reflecting appreciation in the value of the number of shares of Common Stock subject to the SAR, on the terms and subject to the conditions set forth in the Plan and the Award Document. Any Option granted under the Plan may include a tandem SAR. The Committee also may award SARs independent of any Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Strike Price.</u> The strike price ("***Strike Price***") per share of Common Stock for each SAR (that is not a Substitute Award) shall not be less than 100% of the Fair Market Value of such share, determined as of the Date of Grant; <u>provided</u>, <u>however</u>, that a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the Exercise Price of the corresponding Option. Any modification to the Strike Price of an outstanding SAR shall be subject to the prohibition on repricing set forth in Section 13(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting and Expiration.</u> A SAR granted in tandem with an Option shall vest and become exercisable and shall expire according to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independently of an Option shall vest and become exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall expire after such period, not to exceed ten years, as may be determined by the Committee (the "***SAR Period***"); <u>provided</u>, <u>however</u>, that notwithstanding any vesting or exercisability dates set by the Committee, the Committee may accelerate the vesting and/or exercisability of any SAR, which acceleration shall not affect the terms and conditions of such SAR other than with respect to vesting and/or exercisability. If the SAR Period would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy or a Company-imposed "blackout period," the SAR Period shall be automatically extended (other than with respect to SARs with a Strike Price as of the end of the SAR Period (prior to any such extension) that is not less than the Fair Market Value of a share of Common Stock at such time) until the 30th day following the expiration of such prohibition (so long as such extension shall not violate Section 409A of the Code). The Company is not responsible for providing to Participants any notice or reminder of the impending expiration of their SARs, and doing so at any time or for any Participant does not obligate the Company to do so at any other time or for any other Participant. The Committee may accelerate the vesting and/or exercisability of any SAR, which acceleration shall not affect any other terms and conditions of such SAR, and without any obligation to accelerate the vesting and/or exercisability of any other Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise.</u> If and to the extent that all conditions to exercise are satisfied, SARs may be exercised by delivery of written or electronic notice of exercise to the Company or its designee (including a third-party administrator) in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment.</u> Upon the exercise of a SAR, the Company shall pay to the holder thereof an amount equal to the number of shares subject to the SAR that are being exercised multiplied by the excess, if any, of the Fair Market Value of one share of Common Stock on the exercise date over the Strike Price, less the amount required to satisfy all associated tax obligations in accordance with Section 14(d). The Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value as determined on the date of exercise, or any combination thereof, as determined by the Committee. Any fractional shares of Common Stock shall be settled in cash.

**9. Restricted Stock and Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. Each Restricted Stock and Restricted Stock Unit Award shall be subject to the conditions set forth in the Plan (including Section 14(c) as relates to dividends and dividend equivalents) and the applicable Award Document. The Committee shall establish restrictions applicable to Restricted Stock and Restricted Stock Units, including the period over which the restrictions shall apply (the "***Restricted Period***"), and the time or times at which Restricted Stock or Restricted Stock Units shall become vested (which, for the avoidance of doubt, may include service- and/or performance-based vesting conditions). To the extent permitted in the Committee's sole discretion, and subject to such rules, approvals, and conditions as the Committee may impose from time to time, an Eligible Person who is a non-employee director may elect to receive all or a portion of such Eligible Person's cash director fees and other cash director compensation payable for director services provided to the Company by such Eligible Person in any fiscal year, in whole or in part, in the form of Restricted Stock Units (which may be fully vested from the date of receipt). The Committee may accelerate the vesting and/or the lapse of any or all of the restrictions on Restricted Stock and Restricted Stock Units which acceleration shall not affect any other terms and conditions of such Awards. No share of Common Stock shall be issued at the time an Award of Restricted Stock Units is made, and the Company will not be required to set aside a fund for the payment of any such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Certificates; Escrow or Similar Arrangement.</u> Upon the grant of Restricted Stock, the Committee shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company's directions. The Committee may in its discretion also cause a stock certificate registered in the name of the Participant to be issued. In such event, the Committee may provide that such certificates shall be held by the Company or in escrow rather than delivered to the Participant pending vesting and release of restrictions, in which case the Committee may require the Participant to execute and deliver to the Company or its designee (including third-party administrators) (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock. If the Participant shall fail to execute and deliver the escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 9 and the Award Document, the Participant shall have the rights and privileges of a stockholder as to such Restricted Stock, including without limitation the right to vote and, subject to Section 14(c), receive dividends with respect to such Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restrictions; Forfeiture.</u> Restricted Stock and Restricted Stock Units awarded to the Participant and any dividends and/or dividend equivalents accrued on the Common Stock underlying such Awards shall be subject to forfeiture until the expiration of the Restricted Period and the attainment of any other vesting criteria established by the Committee, and shall be subject to the restrictions on transferability set forth in the Award Document. In the event of any forfeiture, all rights of the Participant to such Restricted Stock (or as a stockholder with respect thereto), and to such Restricted Stock Units, as applicable, including to any dividends and/or dividend equivalents that may have been accumulated and withheld during the Restricted Period in respect thereof, shall terminate without further action or obligation on the part of the Company. The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock and Restricted Stock Units whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the Date of Grant of the Restricted Stock Award or Restricted Stock Unit Award, such action is appropriate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delivery of Restricted Stock and Settlement of Restricted Stock Units.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock and the attainment of any other vesting criteria, the restrictions set forth in the applicable Award Document shall be of no further force or effect, except as set forth in the Award Document. If an escrow arrangement is used, upon such expiration the Company shall deliver to the Participant or such Participant's beneficiary (via book-entry notation or, if applicable, in stock certificate form) the shares of Restricted Stock with respect to which the Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to the Restricted Stock shall be distributed to the Participant in cash or in shares of Common Stock having a Fair Market Value (on the date of distribution) (or a combination of cash and shares of Common Stock) equal to the amount of such dividends, upon the release of restrictions on the Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee in an Award Document, upon the expiration of the Restricted Period and the attainment of any other vesting criteria established by the Committee, with respect to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or such Participant's beneficiary (via book-entry notation or, if applicable, in stock certificate form), one share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit that has not then been forfeited and with respect to which the Restricted Period has expired and any other such vesting criteria are attained ("***Released Unit***"); <u>provided</u>, <u>however</u>, that the Committee may elect to (A) pay cash or part cash and part Common Stock in lieu of delivering only shares of Common Stock in respect of such Released Units or (B) defer the delivery of Common Stock (or cash or part Common Stock and part cash, as the case may be) beyond the expiration of the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment is made in lieu of delivering shares of Common Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the shares of Common Stock would have otherwise been delivered to the Participant in respect of such Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent provided in an Award Document, the holder of outstanding Restricted Stock Units shall be entitled to be credited with dividend equivalent payments (upon the payment by the Company of dividends on shares of Common Stock) either in cash or, if determined by the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends as of the date of payment (or a combination of cash and shares of Common Stock) (and interest may, if determined by the Committee, be credited on the amount of cash dividend equivalents at a rate and subject to such terms as determined by the Committee), which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable at the same time as the underlying Restricted Stock Units are settled following the release of restrictions on such Restricted Stock Units, and if such Restricted Stock Units are forfeited, the holder thereof shall have no right to such dividend equivalent payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legends on Restricted Stock.</u> Each certificate representing Restricted Stock awarded under the Plan, if any, shall bear a legend substantially in the form of the following in addition to any other information the Company deems appropriate until the lapse of all restrictions with respect to such Common Stock:

TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE PHOENIX EDUCATION PARTNERS, INC. 2025 OMNIBUS INCENTIVE PLAN AND A RESTRICTED STOCK AWARD DOCUMENT, DATED AS OF __________. A COPY OF SUCH PLAN AND AWARD DOCUMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF PHOENIX EDUCATION PARTNERS, INC.

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**10. Other Stock-Based Awards and Other Cash-Based Awards.** The Committee may issue to Eligible Persons, alone or in tandem with other Awards, in such amounts and on such terms as the Committee shall from time to time determine (i) unrestricted Common Stock, rights to receive future grants of Awards, or other Awards denominated in Common Stock or other capital stock of the Company (including performance shares or performance units), or Awards that provide for cash payments based in whole or in part on the value or future value of shares of Common Stock ("***Other Stock-Based Awards***") and (ii) Awards denominated and/or payable in cash, including cash awarded as a bonus or upon the attainment of specific performance criteria or as otherwise permitted by the Plan or as contemplated by the Committee ("***Other Cash-Based Awards***"). Each Other Stock-Based Award shall be evidenced by an Award Document, which may include such conditions as the Committee may determine, including, without limitation, the payment by the Participant of the Fair Market Value of such shares of Common Stock on the Date of Grant.

**11. Changes in Capital Structure and Similar Events.** In the event of (a) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, amalgamation, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar corporate transaction or event (including, without limitation, a Change in Control) that affects the shares of Common Stock, or (b) unusual or nonrecurring events (including, without limitation, a Change in Control) affecting the Company, any Subsidiary or any Affiliate controlled by the Company, or the financial statements of the Company, any Subsidiary or any Affiliate controlled by the Company, or changes in applicable rules, rulings, regulations or other requirements of any governmental body, the Exchange, accounting principles or law, then the Committee shall (except as otherwise provided in any Award Document or employment, change-in-control, severance or other agreement in effect with the Participant) make such equitable and proportionate adjustments in such manner as it may deem appropriate in the reasonable exercise of its discretion and consistent with its fiduciary duties, including without limitation any or all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adjusting any or all of (A) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) that may be delivered in respect of Awards or with respect to which Awards may be granted under the Plan (including, without limitation, adjusting any or all of the limitations under Section 5 of the Plan) and (B) the terms of any outstanding Award, including, without limitation, (1) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Exercise Price or Strike Price with respect to any Award and/or (3) any applicable performance measures (including, without limitation, Performance Conditions and performance periods);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) providing for a substitution or assumption of Awards (or awards of an acquiring company), accelerating the delivery, vesting and/or exercisability of, lapse of restrictions and/or other conditions on, or termination of, Awards or providing for a period of time (which shall not be required to be more than (10) days) for the Participants to exercise outstanding Awards prior to the occurrence of such event (and any such Award not so exercised shall terminate or become no longer exercisable upon the occurrence of such event); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) cancelling any one or more outstanding Awards (or awards of an acquiring company) and causing to be paid to the holders thereof, in cash, shares of Common Stock, other securities or other property, or any combination thereof, the value of such Awards, if any, as determined by the Committee (which if applicable shall be based upon the price per share of Common Stock or value of other consideration received or to be received by other stockholders of the Company in such event), including without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively (it being understood that, in such event, any Option or SAR having a per-share Exercise Price or Strike Price equal to, or in excess of, the Fair Market Value (as of the date specified by the Committee) of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor);

<u>provided</u>, <u>however</u>, that the Committee shall make an equitable and proportionate adjustment to outstanding Awards to reflect any "equity restructuring" (within the meaning of the Financial Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)). Except as otherwise determined by the Committee, any adjustment in Incentive Stock Options under this Section 11 (other than any cancellation of Incentive Stock Options) shall be made only to the extent not constituting a "modification" within the meaning of Section 424(h)(3) of the Code, and any adjustments under this Section 11 shall be made in a manner that does not adversely affect the exemption provided pursuant to Rule 16b-3 promulgated under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes. In anticipation of the occurrence of any event listed in the first sentence of this Section 11, for reasons of administrative convenience, the Committee in its sole discretion may refuse to permit the exercise of any Award during a period of up to 30 days prior to, and/or up to 30 days after, the anticipated occurrence of any such event.

**12. Effect of Termination of Service or a Change in Control on Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination</u>. To the extent permitted under Section 409A of the Code, the Committee may provide, by rule or regulation or in any applicable Award Document or other agreement with a Participant, or may determine in any individual case, the circumstances in which, and to the extent to which, an Award may be exercised, settled, vested, paid or forfeited in the event of the Participant's termination of service prior to the end of a performance period or vesting, exercise or settlement of such Award. Except as otherwise provided in the applicable Award Document, or other agreement between the Participant and the Company, such portion of an Award that has not vested or with respect to which other conditions have not been satisfied, will be forfeited upon termination of the Participant's service to the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>. In the event of a Change in Control, notwithstanding any provision of the Plan to the contrary, the Committee may, in its sole discretion, provide for: (i) continuation or assumption of such outstanding Awards under the Plan by the Company (if it is the surviving corporation) or by the surviving corporation or its parent; (ii) substitution by the surviving corporation or its parent of awards with substantially the same terms and value for such outstanding Awards (in the case of an Option or SAR, the Intrinsic Value at grant of such Substitute Award shall equal the Intrinsic Value of the Award based upon the value of the Common Stock in the Change in Control); (iii) acceleration of the vesting (including the lapse of any restrictions, with any applicable Performance Conditions or other performance criteria deemed met at target) or right to exercise such outstanding Awards immediately prior to or as of the date of the Change in Control, and the expiration of such outstanding Awards to the extent not timely exercised by the date of the Change in Control or other date thereafter designated by the Committee; or (iv) in the case of an Option or SAR, cancelation in consideration of a payment in cash or other consideration to the Participant

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who holds such Award in an amount equal to the Intrinsic Value of such Award (which may be equal to but not less than zero), which, if in excess of zero, shall be payable upon the effective date of such Change in Control. For the avoidance of doubt, in the event of a Change in Control, the Committee may, in its sole discretion, terminate any Options and/or SARs for which the Exercise Price or Strike Price is equal to or exceeds the per share value of the consideration to be paid in the Change in Control transaction without payment of consideration therefor.

**13. Amendments and Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination of the Plan.</u> The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; <u>provided</u>, that no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any applicable rules or requirements of the Exchange, or GAAP accounting standards); <u>provided</u>, <u>further</u>, that any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary, unless the Committee determines that such amendment, alteration, suspension, discontinuance or termination is either required or advisable in order for the Company, the Plan or the Award to satisfy any applicable law or regulation. Notwithstanding the foregoing, no amendment shall be made to the last proviso of Section 13(b) without stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of Award Documents.</u> The Committee may, to the extent not inconsistent with the terms of any applicable Award Document or the Plan, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted or the associated Award Document, prospectively or retroactively (including after the Participant's termination of employment or service with the Company); <u>provided</u>, that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant, holder or beneficiary with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary unless the Committee determines that such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination is either required or advisable in order for the Company, the Plan or the Award to satisfy any applicable law or regulation; <u>provided</u>, <u>further</u>, that except as otherwise permitted under Section 11 of the Plan, if (i) the Committee reduces the Exercise Price of any Option or the Strike Price of any SAR, (ii) the Committee cancels any outstanding Option or SAR and replaces it with a new Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash in a manner that would either (A) be reportable on the Company's proxy statement or Form 10-K (if applicable) as Options that have been "repriced" (as such term is used in Item 402 of Regulation S-K promulgated under the Exchange Act), or (B) result in any "repricing" for financial statement reporting purposes (or otherwise cause the Award to fail to qualify for equity accounting treatment), (iii) the Committee takes any other action that is considered a "repricing" for purposes of the stockholder approval rules of the Exchange, or (iv) the Committee cancels any outstanding Option or SAR that has a per-share Exercise Price or Strike Price (as applicable) at or above the Fair Market Value of a share of Common Stock on the date of cancellation, and pays any consideration to the holder thereof, whether in cash, securities, or other property, or any combination thereof, then, in the case of the immediately preceding clauses (i) through (iv), any such action shall not be effective without stockholder approval.

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**14. General.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Documents; Other Agreements.</u> Each Award under the Plan shall be evidenced by an Award Document, which shall be delivered to the Participant and shall specify the terms and conditions of the Award and any rules applicable thereto. If an Award Document takes the form of an agreement between the Company and the Participant receiving the Award, the Participant must execute and deliver such agreement to the Company in the form specified and by the deadline specified by the Company or the Award will be void. In the event of any conflict between the terms of the Plan and any Award Document or employment, change-in-control, severance or other agreement in effect with the Participant, the terms of the Plan shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nontransferability.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Award shall be exercisable only by the Participant during the Participant's lifetime, or, if permissible under applicable law, by the Participant's legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; <u>provided</u>, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Committee may permit Awards (other than Incentive Stock Options) to be transferred by the Participant, without consideration, subject to such rules as the Committee may adopt, to (A) any person who is a "family member" of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statements promulgated by the Securities and Exchange Commission (collectively, the "***Immediate Family Members***"); (B) a trust solely for the benefit of the Participant or the Participant's Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Participant and the Participant's Immediate Family Members; or (D) any other transferee as may be approved either (1) by the Board or the Committee, or (2) as provided in the applicable Award Document (each transferee described in clause (A), (B), (C) or (D) above is hereinafter referred to as a "***Permitted Transferee***"); provided, that the Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The terms of any Award transferred in accordance with the immediately preceding paragraph shall apply to the Permitted Transferee, and any reference in the Plan, or in any applicable Award Document, to the Participant shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Document, that such a registration statement is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; (D) the consequences of the termination of the Participant's employment by, or services to, the Company or an Affiliate under the terms of the Plan and the applicable Award Document shall continue to be applied with respect to the transferred Award, including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Document; and (E) any non-competition, non-solicitation, non-disparagement, non-disclosure, or other restrictive covenants contained in any Award Document or other agreement between the Participant and the Company or any Affiliate shall continue to apply to the Participant and the consequences of the violation of such covenants shall continue to be applied with respect to the transferred Award, including without limitation the clawback and forfeiture provisions of Section 14(t) of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dividends and Dividend Equivalents.</u> The Committee may provide the Participant with dividends or dividend equivalents as part of an Award, payable in cash, shares of Common Stock, other securities, other Awards or other property, on such terms and conditions as may be determined by the Committee, including, without limitation, payment directly to the Participant, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional shares of Common Stock, Restricted Stock or other Awards; <u>provided</u>, that no dividends or dividend equivalents shall be payable (i) in respect of outstanding Options or SARs or (ii) in respect of any other Award unless and until the Participant vests in such underlying Award; <u>provided</u>, <u>further</u>, that dividend equivalents may be accumulated in respect of unearned Awards and paid as soon as administratively practicable, but no more than 60 days, after such Awards are earned and become payable or distributable (and the right to any such accumulated dividends or dividend equivalents shall be forfeited upon the forfeiture of the Award to which such dividends or dividend equivalents relate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Obligations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As a condition to the exercise or payment of any Award, the Participant shall be required to pay in full, and to reimburse the Company or any Affiliate in full for payment on behalf of the Participant of, any and all associated U.S. federal, state and local income and employment taxes and non-U.S. income and employment taxes, social contributions and any other tax-related items required to be paid and/or withheld. The Company or any Affiliate shall have the right (but not the obligation) and is hereby authorized to withhold, from any cash, shares of Common Stock, other securities or other property deliverable under any Award or from any compensation or other amounts owing to the Participant, any or all of the amount of any required withholding taxes and/or required tax deposits (up to the maximum permissible withholding amounts) in respect of an Award, its exercise, or any payment or transfer under an Award or under the Plan and to take such other action that the Committee or the Company deem necessary to satisfy all obligations for the payment of such tax obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of paragraph (i) above, the Committee may (but is not obligated to) permit any Participant to satisfy, in whole or in part, the foregoing reimbursement liability by (A) payment in cash, (B) the delivery of shares of Common Stock (which shares are not subject to any pledge or other security interest) owned by the Participant having a Fair Market Value on the date of delivery equal to such withholding liability or (C) having the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the exercise or settlement of the Award a number of shares with a Fair Market Value on the date of exercise or settlement equal to such liability. In addition, subject to any requirements of applicable law, the Participant may also satisfy the tax obligations by other methods, including selling shares of Common Stock that would otherwise be available for delivery, provided that the Board or the Committee has specifically approved such payment method in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Claim to Awards; No Rights to Continued Employment, Directorship or Engagement.</u> No employee, director of the Company, consultant providing service to the Company or an Affiliate, or other person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of different Participants or holders or beneficiaries of Awards, or of the same Participant or holder or beneficiary under different circumstances or at different times. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not

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be the same with respect to each Participant and may be made selectively among the Participants, whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to (i) be retained or continue in the employ or service (including Board service) of the Company or an Affiliate or (ii) acceleration or payment, as a result of cessation of employment or service, of Awards for which vesting or other conditions have not been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>International Participants.</u> With respect to the Participants who reside or work outside of the United States, the Committee may amend, adapt, or supplement the terms of the Plan, or outstanding Awards, with respect to such Participants, in order to conform such terms with or accommodate the requirements of local laws, procedures or practices or to obtain more favorable tax or other treatment for the Participant, the Company or its Affiliates. Without limiting the generality of this subsection, the Committee is specifically authorized to adopt rules, procedures and sub-plans with provisions that limit or modify rights on death, disability, retirement or other terminations of employment, available methods of exercise or settlement of an Award, payment of income, social insurance contributions or payroll taxes, withholding procedures and handling of any stock certificates or other indicia of ownership that vary with local requirements. The Committee may also adopt rules, procedures or sub-plans applicable to particular Affiliates or locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Beneficiary Designation.</u> The Participant's beneficiary shall be the Participant's spouse (or domestic partner if such status is recognized by the Company and in such jurisdiction), or if the Participant is otherwise unmarried at the time of death, the Participant's estate, except to the extent that a different beneficiary is designated in accordance with procedures that may be established by the Committee from time to time for such purpose. Notwithstanding the foregoing, in the absence of a beneficiary validly designated under such Committee-established procedures and/or applicable law who is living (or in existence) at the time of death of a Participant residing or working outside the United States, any required distribution under the Plan shall be made to the executor or administrator of the estate of the Participant, or to such other individual as may be prescribed by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination of Employment or Service.</u> The Committee, in its sole discretion, shall determine the effect of all matters and questions related to the termination of employment of or service of a Participant. Except as otherwise provided in an Award Document, or any employment, consulting, change-in-control, severance or other agreement between the Participant and the Company or an Affiliate, unless determined otherwise by the Committee: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with the Company to employment or service with an Affiliate (or vice versa) shall be considered a termination of employment or service with the Company or an Affiliate; and (ii) if the Participant's employment with the Company or its Affiliates terminates, but such Participant continues to provide services with the Company or its Affiliates in a non-employee capacity (including as a non-employee director) (or vice versa), such change in status shall not be considered a termination of employment or service with the Company or an Affiliate for purposes of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Rights as a Stockholder.</u> Except as otherwise specifically provided in the Plan or any Award Document, no person shall be entitled to the privileges of ownership in respect of shares of Common Stock that are subject to Awards hereunder until all requirements and conditions applicable to the issuance of such shares have been satisfied and the issuance of such shares has been entered into the books and records of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Government and Other Regulations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nothing in the Plan shall be deemed to authorize the Committee or Board or any members thereof to take any action contrary to applicable law or regulation, or rules of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The obligation of the Company to settle Awards in Common Stock or other consideration shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless such shares may be offered or sold without such registration pursuant to and in compliance with the terms of an available exemption. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of the Company or any Affiliate delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Document, U.S. federal securities laws, or the rules, regulations and other requirements of the U.S. Securities and Exchange Commission, the Exchange, and any other applicable federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without limiting the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on any such certificates of Common Stock or other securities of the Company or any Affiliate delivered under the Plan to make appropriate reference to such restrictions or may cause such Common Stock or other securities of the Company or any Affiliate delivered under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to add any additional terms or provisions to any Award granted under the Plan that it in its sole discretion deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Award, (A) to give written assurances satisfactory to the Company as to the Participant's knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of accepting and exercising the Award and acquiring Common Stock pursuant to the Award and (B) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Award for the Participant's own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, will be inoperative if (x) the issuance of the shares upon the exercise of an Award or acquisition of Common Stock under the Award has been registered under a then currently effective registration statement under the Securities Act, or (y) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates or the Company's books as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Committee may cancel an Award or any portion thereof if it determines that legal or contractual restrictions and/or block trading and/or other market considerations would make the Company's acquisition of shares of Common Stock from the public markets, the Company's issuance of Common Stock to the Participant, the Participant's acquisition of Common Stock from the Company and/or the Participant's sale of Common Stock to the public markets illegal, impracticable or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless prevented by applicable laws, the Company shall pay to the Participant an amount equal to the excess (if any) of (A) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of shares of Common Stock (in the case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Payments to Persons Other Than the Participants.</u> If the Committee shall find that any person to whom any amount is payable under the Plan is unable to care for such person's affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or such person's estate (unless a prior claim therefor has been made by a duly appointed legal representative or a beneficiary designation form has been filed with the Company) may, if the Committee so directs the Company, be paid to such person's spouse, child, or relative, or an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Nonexclusivity of the Plan.</u> Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options or awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Trust or Fund Created.</u> Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and the Participant or other person or entity, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or to otherwise segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. The Participants shall have no rights under the Plan other than as unsecured general creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reliance on Reports.</u> Each member of the Committee and each member of the Board (and each such member's respective designees) shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon advice of counsel or any report made by the independent registered public accounting firm of the Company and its Affiliates and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than such member or designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Relationship to Other Benefits.</u> No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Governing Law.</u> The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Severability.</u> If any provision of the Plan or any Award or Award Document is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, person or entity or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Obligations Binding on Successors.</u> The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all of the assets and business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Section 409A of the Code.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) It is intended that the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan or any other plan maintained by the Company, including any taxes and penalties under Section 409A of the Code, and neither the Company nor any Affiliate shall have any obligation to indemnify or otherwise hold such Participant or any beneficiary harmless from any or all of such taxes or penalties. With respect to any Award that is considered "deferred compensation" subject to Section 409A of the Code, references in the Plan to "termination of employment" (and substantially similar phrases) shall mean "separation from service" within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything in the Plan to the contrary, if the Participant is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, no payments or deliveries in respect of any Awards that are "deferred compensation" subject to Section 409A of the Code shall be made to such Participant prior to the date that is six months after the date of such Participant's "separation from service" within the meaning of Section 409A of the Code or, if earlier, the Participant's date of death, unless such delivery or payment may be made in a manner that complies with Section 409A of the Code. All such delayed payments or deliveries will be paid or delivered (without interest) in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that the timing of payments in respect of any Award that would otherwise be considered "deferred compensation" subject to Section 409A of the Code would be accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation pursuant to Section 409A of the Code and any Treasury Regulations promulgated thereunder or (B) a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of "disability" pursuant to Section 409A of the Code and any Treasury Regulations promulgated thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Clawback/Forfeiture.</u> Notwithstanding anything to the contrary contained herein, the Committee may cancel an Award if the Participant, without the consent of the Company, (A) has engaged in or engages in activity that is in conflict with or adverse to the interests of the Company or any Affiliate while employed by or providing services to the Company or any Affiliate, including fraud or conduct intentionally contributing to any material financial restatements or irregularities or (B) violates in any material respect a non-competition, non-solicitation, non-disparagement or non-disclosure covenant or agreement with the Company or any Affiliate, as determined by the Committee, and fails to cure such violation in all material respects within 30 days of demand by the Company, or if the Participant's employment or service is terminated for Cause. The Committee may also provide in an Award Document that in any such event the Participant will forfeit any compensation, gain or other value realized thereafter on the vesting, exercise or settlement of such Award, the sale or other transfer of such Award, or the sale of shares of Common Stock acquired in respect of such Award, and must promptly repay such amounts to the Company. Unless otherwise provided in an Award Document or otherwise determined by the Committee, if the Participant receives any amount in excess of what the Participant should have received under the terms of the Award for any reason (including without limitation by reason of a financial restatement, mistake in calculations or other administrative error), all as determined by the Committee, then the Participant shall be required to promptly repay any such excess amount to the Company. In addition, the Company shall retain the right to bring an action at equity or law to enjoin the Participant's activity and recover damages resulting from such activity. Further, to the extent required by applicable law (including, without limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of the Exchange, or if so required pursuant to a written policy adopted by the Company, Awards shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into all outstanding Award Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No Representations, Covenants, or Advice.</u> Although the Company may endeavor to (i) qualify an Award for favorable U.S. or non-U.S. tax treatment or (ii) avoid adverse tax treatment, the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment. The Company shall be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Awards under the Plan. The Company will have no duty or obligation to advise any Participant as to the time, manner, or legal or tax consequences of exercising any Award and/or dealing with any underlying Common Stock. Internal and external counsel to the Company have no duty or obligation to provide, and do not provide, any legal advice to any Participant. The Company and its personnel make no representations or promises to any Participant about the value of any Award or underlying Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Interference.</u> The existence of the Plan, any Award Document, and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company, the Board, the Committee, or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization, or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants, or rights to purchase stock or of bonds, debentures, or preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or that are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company or any Affiliate, or any sale or transfer of all or any part of their assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Expenses; Titles and Headings.</u> The expenses of administering the Plan shall be borne by the Company and its Affiliates. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Whistleblower Acknowledgments</u>. Notwithstanding anything to the contrary herein, nothing in this Plan or any Award Document will (i) prohibit a Participant from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of federal law or regulation, or (ii) require prior approval by the Company or any of its Affiliates of any reporting described in clause (i).

\* \* \*

As adopted by the Board of Directors of the Company on [•], 2025.

As approved by the stockholders of the Company on [•], 2025.

## Exhibit 10.15

**Exhibit 10.15** 

**PHOENIX EDUCATION PARTNERS, INC.** 

**2025 OMNIBUS INCENTIVE PLAN** 

**<u>RESTRICTED STOCK UNIT AWARD AGREEMENT</u>**

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this "<u>Agreement</u>"), is entered into as of [•] (the "<u>Date of Grant</u>"), by and between Phoenix Education Partners, Inc., a Delaware corporation (the "<u>Company</u>"), and [•] (the "<u>Participant</u>"). Capitalized terms used in this Agreement and not otherwise defined herein have the meanings ascribed to such terms in the Phoenix Education Partners, Inc. 2025 Omnibus Incentive Plan, as amended, restated or otherwise modified from time to time in accordance with its terms (the "<u>Plan</u>").

WHEREAS, the Company has adopted the Plan, pursuant to which restricted stock units ("<u>RSUs</u>") may be granted; and

WHEREAS, the Committee has determined that it is in the best interests of the Company and its stockholders to grant the RSUs provided for herein to the Participant on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The Company hereby grants to the Participant a total of [•] RSUs (on the terms and subject to the conditions set forth in this Agreement and as otherwise provided in the Plan. The RSUs shall vest in accordance with Section 2. The RSUs shall be credited to a separate book-entry account maintained for the Participant on the books of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference</u>. The provisions of the Plan are incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Participant and the Participant's beneficiary in respect of any questions arising under the Plan or this Agreement, subject to Section 11(p). The Participant acknowledges that the Participant has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

**2. Vesting; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as may otherwise be provided herein, the RSUs shall vest in accordance with the following: One-third of the RSUs (rounded to the nearest integer) shall vest on the first anniversary of the Date of Grant and the remaining RSUs shall vest in (8) equal installments on each three (3)-month anniversary thereafter over two (2) years (each such vesting date, a "<u>Vesting Date</u>"), in each case, subject to (i) the satisfaction of the IPO Condition and (ii) the Participant's continued employment with, appointment as a director of, or engagement to provide services to, the Company or any of its Affiliates through the applicable Vesting Date. The "<u>IPO Condition</u>" shall be deemed satisfied upon the consummation of the Company's initial public offering of shares of Common Stock. Upon vesting, the RSUs shall no longer be subject to cancellation pursuant to Section 4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reserved

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**3. Dividend Equivalents.** In the event of any issuance of a cash dividend on the shares of Common Stock (a "<u>Dividend</u>"), the Participant shall be credited, as of the payment date for such Dividend, with an amount (a "<u>Dividend Equivalent</u>") equal to the product of (i) the number of Target RSUs granted pursuant to this Agreement and outstanding as of the record date for such Dividend multiplied by (ii) the amount of the Dividend per share. The aggregate amount of the Dividend Equivalents (as adjusted to reflect the earned RSUs) (the "<u>Distributable Amount</u>") shall be distributed to the Participant in connection with the settlement of the earned RSUs either in cash or, at the discretion of the Committee, in a number of shares of Common Stock with a Fair Market Value (as determined on the Vesting Date) equal to the Distributable Amount. To the extent any RSUs are forfeited prior to vesting, the corresponding Dividend Equivalents in respect thereof shall be forfeited immediately thereupon.

**4. Termination of Employment or Services.** Except as otherwise provided in this Agreement, if the Participant's employment with, membership on the board of directors of, or engagement to provide services to the Company or any of its Affiliates terminates for any reason prior to the applicable Vesting Date, all unvested RSUs shall be canceled immediately and the Participant shall not be entitled to receive any payments with respect thereto.

**5. Restrictive Covenants.** The Participant agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. During the term of the Participant's employment with the Company or any of its Affiliates and for a period of one (1) year thereafter, the Participant shall not (without the prior written consent of the Company), directly or indirectly, engage in any Competitive Activity within the Restricted Area. For purposes of this Section 5:

"<u>Competitive Activity</u>" refers to (as an employee, consultant, director, officer, owner, investor, partner or in any other capacity) (i) providing, supervising or managing services for a Competitive Business that are the same as or similar to those Participant provided, supervised or managed while employed with the Company in the preceding two (2) year period (the "<u>Look Back Period</u>"), (ii) rendering any services to a Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the Company or any of its Affiliates or (iii) acquiring a significant financial interest in a Competitive Business.

"<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning or any not-for-profit educational institution that competes with the business of the Company or its Affiliates.

"<u>Restricted Area</u>" means (i) each state and county (or equivalents) where the Company or an Affiliate does business and in which the Participant has involvement with, or for which the Participant has any responsibility or with respect to which the Participant is provided Confidential Information during the Look Back Period so long as the Company or an Affiliate continues to do business therein and (ii) any prospective geographic area or territory that within the six (6) months has been the subject of serious consideration by the Company or any of its Affiliates as a business location and which the Participant is or has been made aware of.

The phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Participant is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers).

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A financial interest will not be considered "<u>significant</u>" if it involves being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Participant has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant).

For purposes of this Section 5(a), "<u>Affiliates</u>" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (i.e., entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation; Non-Hire</u>. During the term of the Participant's employment with the Company or any of its Affiliates and for a period of two (2) years thereafter, the Participant shall not (without the prior written consent of the Company) directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, induce or attempt to solicit or induce any officer, director or employee of the Company or any of its Affiliates (a "<u>Covered Individual</u>") to terminate his/her/their relationship with or leave the employ of the Company or any such Affiliate or in any way interfere or attempt to interfere with the relationship between the Company or any such Affiliate, on the one hand, and any Covered Individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) hire (or other similar arrangement) or assist a Competitive Business in its efforts to hire (or other similar arrangement) a Covered Individual away from the Company or an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, induce or attempt to solicit or induce any customer of the Company or any of its Affiliates that the Participant has material contact with, or is provided Confidential Information about in the course of employment with the Company or an Affiliate in the Look Back Period (a "<u>Covered Customer</u>") for the purpose of causing the Covered Customer to do business with a Competitive Business, or to cease or reduce doing business with the Company or an Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, induce or attempt to solicit or induce any supplier, prospect licensee or other business relation of the Company or an Affiliate (a "<u>Covered Provider</u>") to cease or reduce doing business with the Company or such Affiliate, or interfere or attempt to interfere with the relationship between any Covered Provider, on the one hand, and the Company or an Affiliate, on the other hand;

<u>provided</u>, that neither (A) the Participant's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Participant shall be deemed a breach of this Section 5(b). For purposes of this Section 5(b), "Affiliates" shall have the same meaning as in Section 5(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Disparagement</u>. During the term of the Participant's employment with the Company or any of its Affiliates and thereafter in perpetuity, the Participant shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the Company or any of its Affiliates, successors, directors or officers; provided, however, that the forgoing shall not prohibit the Participant from engaging in any conduct that is Protected Conduct (as described in Section 5(f)). The foregoing shall not be violated by the Participant by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 5(c), "Affiliates" shall have the same meaning as in Section 5(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Participant's employment with the Company or any of its Affiliates and thereafter in perpetuity, the Participant shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Participant's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the Company or any of its Affiliates, including, without limitation, information with respect to the Company's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets (collectively, "<u>Confidential Information</u>"). Upon the Participant's termination of employment for any reason, the Participant shall promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Participant may nonetheless retain copies of documents relating to the Participant's compensation; the Participant's personal entitlements and obligations; and the Participant's cell phone number. The Participant may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and, if requested by the Company, shall reasonably assist such counsel in resisting or otherwise responding to such process.

Other than to the extent the Participant is permitted by law to discuss the Participant's own wages, the Participant hereby agrees that (i) except as required by law, the Participant will not disclose to any Person other than the Participant's spouse and legal, financial and other advisors (if any) the grant of the RSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the RSUs shall terminate and any outstanding portion of such RSUs (whether or not vested) shall be forfeited if the Participant violates the non-disclosure provisions of this Section 5(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that the results and proceeds of the Participant's services for the Company or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Participant, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the Company (or, if applicable or as directed by the Company, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion, without any further payment to the Participant whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to

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the Company (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Participant hereby irrevocably assigns and agrees to assign any and all of the Participant's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the Company (or, if applicable or as directed by the Company, any of its subsidiaries or Affiliates), and the Company or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the Company or such subsidiaries or Affiliates without any further payment to the Participant whatsoever; <u>provided, however</u>, that the forgoing assignment of inventions shall be limited so that it does not require or create any assignment of an invention that cannot be assigned through an agreement between an employee and employer under controlling law, and Participant acknowledges notice of the following laws of this nature:

Cal. Lab. Code, § 2870; Del. Code Title 19 § 805; Illinois 765 ILCS 1060/1-3; Kan. Stat. Section 44-130; Minn. Statutes, 13A, Section 181.78; New Jersey Statutes Title 34. Labor and Workmen's Compensation 34 § 1B-265; NY Labor Law § 203-f; N. Car. General Statutes, Art. 10A, Chapter 66, Commerce and Business, § 66-57.1; Utah Code § 34-39-1 through 34-39-3; Wash. Rev. Code, Title 49 RCW: Labor Regulations, Chapter 49.44.140); and I understand that each of these laws has a similar limitation on what can be assigned. As an example, I understand that (a) Cal. Lab. Code, § 2870 provides: *"Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer"*, and (b) that the remainder of the states listed are substantively the same with the exception that in Kansas, Minnesota and Washington the statutes make assignable an invention that "relates … directly to the business of the employer" instead of those that "Relate … to the employer's business" as part (1) is worded in the California statute.

As to any Invention that the Participant is required to assign, the Participant shall promptly and fully disclose to the Company all information known to the Participant concerning such Invention. The Participant hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, that the Participant now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant agrees that, from time to time, as may be requested by the Company and at the Company's sole cost and expense, the Participant shall do any and all things that the Company may reasonably deem useful or desirable to establish or document the Company's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Participant has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Participant unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 5(e) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the Company of any Proprietary Rights of ownership to which the Company may be entitled by

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operation of law by virtue of the Company's being the Participant's employer (or Affiliate of the Participant's employer, as applicable). The Participant further agrees that, from time to time, as may be requested by the Company and at the Company's sole cost and expense, the Participant shall assist the Company in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Participant shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Participant shall execute, verify, and deliver assignments of such Proprietary Rights to the Company or its designees. The Participant's obligation to assist the Company with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Participant's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Whistleblower Protection / Protected Conduct</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Participant from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Nothing in this Agreement limits or affects the Participant's right to disclose or discuss criminal conduct, discrimination, harassment (including but not limited to sexual harassment or sexual assault) or retaliation, prohibits the Participant from discussing such matters with the Participant's own legal counsel or prohibits the Participant from providing truthful testimony in a legal, administrative or arbitration proceeding. The Participant does not need the prior authorization of the Company to make any such reports or disclosures and the Participant is not required to notify the Company that the Participant has made such reports or disclosures. Notwithstanding anything to the contrary contained herein, the Participant will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Participant files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Participant may disclose the Company's trade secrets to the Participant's attorney and use the trade secret information in the court proceeding if the Participant: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. If the Participant is employed in a non-management, non-supervisory role then nothing in this Agreement will prohibit the Participant from engaging in conduct that is protected under Section 7 of the National Labor Relations Act (NLRA) such as the right of employees to self-organization, to form, join, or assist labor organizations, to strike, picket or otherwise engage in other concerted activities for their mutual aid or protection or refuse to do so; this includes using or disclosing information acquired through lawful means regarding the wages, benefits or other terms and conditions of employment for any purpose protected under the NLRA unless the information concerns other employees and was entrusted to the Participant in confidence by the Company as part of confidential job duties (such as human resource management, payroll or benefits administration duties).

The conduct protected under this Section 5(f) is collectively referred to as "<u>Protected Conduct</u>" in this Agreement and shall not be construed to protect, invite, permit or limit liability for illegal activity such as breaking and entering, illegal computer access (hacking), or theft or destruction of the property of the Company or an Affiliate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participant Acknowledgements</u>. The Participant understands that this Section 5 may limit Participant's ability to earn a livelihood in a business competitive to the business of the Company and its Affiliates. The Participant expressly acknowledges and agrees that this Section 5 is reasonable and necessary for the protection of the legitimate business interests of the Company and is reasonable in scope. For the avoidance of doubt, the Participant's covenants in this Section 5 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the Company or its Affiliates and by which the Participant is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notification of Subsequent Employer</u>. The Participant hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Participant's termination of employment during which the Participant remains subject to any of the covenants set forth in Section 5, the Participant shall provide such prospective employer with written notice of the provisions of this Section 5 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the Company not later than three (3) business days prior to the date on which the Participant commences such employment or provision of services. For the avoidance of doubt, the Company shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Forfeiture; Other Relief</u>. In the event the Participant fails to comply with the restrictive covenants set forth in this Section 5, then in addition to any other remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any RSUs have been settled within the three (3) year period immediately preceding such breach, the Participant shall forfeit any shares of Common Stock received upon such settlement without consideration and be required to promptly repay to the Company, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Participant upon settlement of such RSUs or upon disposition of the shares of Common Stock. The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the Company and shall not prevent (and the Participant shall not assert that they shall prevent) the Company from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Participant's breach of such restrictive covenants to the full extent contemplated by Section 11(p). The Participant acknowledges and agrees that irreparable injury will result to the Company and its goodwill if the Participant breaches any of the terms of the covenants set forth in this Section 5, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Participant hereby agrees that, in the event of a breach of any of the covenants contained in this Section 5, in addition to any other remedy which may be available at law or in equity, the Company shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability; Blue Pencil</u>. The invalidity or non-enforceability of any provision of this Section 5 in any respect shall not affect the validity or enforceability of the other provisions of this Section 5 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 5 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

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**6. Rights as a Stockholder.** The Participant shall not be deemed for any purpose to be the owner of any shares of Common Stock underlying the RSUs unless, until and to the extent that (i) the Company shall have issued and delivered to the Participant the shares of Common Stock underlying the RSUs and (ii) the Participant's name shall have been entered as a stockholder of record with respect to such shares of Common Stock on the books of the Company. The Company shall cause the actions described in clauses (i) and (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

**7. Compliance with Legal Requirements.** The granting and settlement of the RSUs, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the RSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which shares of Common Stock are then listed or traded, and/or any blue sky or state securities laws applicable to such shares of Common Stock. In the event of the settlement of the RSUs at a time when there is not in effect a registration statement under the Securities Act relating to the shares of Common Stock, the Participant hereby represents and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the Company that the shares of Common Stock are being acquired for investment only and not with a view to the distribution thereof, and the Participant shall provide the Company with such further representations and warranties as the Company may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the Company be obligated to register shares of Common Stock under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of shares of Common Stock pursuant to the settlement of the RSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant. The Participant agrees to take all steps the Committee or the Company determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising the Participant's rights under this Agreement.

**8. Tax Withholding**. Vesting and settlement of the RSUs shall be subject to the Participant's satisfying any applicable U.S. federal, state and local tax withholding obligations and non-U.S. tax withholding obligations. The Company shall have the right and is hereby authorized to withhold from any amounts payable to the Participant in connection with the RSUs or otherwise the amount of any required withholding taxes in respect of the RSUs, their settlement or any payment or transfer of the RSUs or under the Plan and to take any such other action as the Committee or the Company deem necessary to satisfy all obligations for the payment of such withholding taxes (up to the maximum permissible withholding amounts), including the right to sell the number of shares of Common Stock that would otherwise be available for delivery upon settlement of the RSUs necessary to generate sufficient proceeds to satisfy withholding obligations. The Participant may elect to satisfy, and the Company may in all events require the Participant to satisfy, in whole or in part, the tax obligations by withholding shares of Common Stock that would otherwise be deliverable to the Participant upon settlement of the RSUs with a Fair Market Value equal to such withholding liability.

**9. Clawback.** Notwithstanding anything to the contrary contained herein, the Committee may cancel the RSU award if the Participant, without the consent of the Company, has engaged in or engages in activity that is in conflict with or adverse to the interests of the Company or any Affiliate while employed by, serving as a director of, or otherwise providing services to the Company or any Subsidiary, including fraud or conduct contributing to any financial restatements or irregularities, or violates a non-competition, non-solicitation, non-disparagement or non-disclosure covenant or agreement with the Company or any Subsidiary (after giving effect to any applicable cure period set forth therein), as determined by the Committee. In such event, the Participant will forfeit any compensation, gain or other value realized

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thereafter on the vesting or settlement of the RSUs, the sale or other transfer of the RSUs, or the sale of shares of Common Stock acquired in respect of the RSUs (provided that the RSUs vested during the 12-month period immediately prior to the Participant's adverse activity), and must promptly repay such amounts to the Company. To the extent required by applicable law or the rules and regulations of the NYSE or any other securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted, or if so required pursuant to a written policy adopted by the Company, the RSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement).

**10. Litigation Cooperation**. The Participant agrees that during and after the Participant's employment by the Company and its Affiliates, the Participant will assist the Company and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the Company or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Participant (an "<u>Action</u>"), and will assist the Company and its Affiliates in the prosecution of any claims, which are not adverse to the Participant, that may be made by the Company or any of its Affiliates in any Action, to the extent that such claims may relate to the Participant's employment or the period of the Participant's employment by the Company and its Affiliates. The Participant agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Company also agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to assist in any investigation (whether governmental or otherwise) of the Company or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Participant's employment or the period of the Participant's employment by the Company, regardless of whether a lawsuit has then been filed against the Company or any of its Affiliates with respect to such investigation. The Company or one of its Affiliates shall reimburse the Participant for all of the Participant's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Participant shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Participant other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 14(b) of the Plan. Any attempted Transfer of the RSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the RSUs, shall be null and void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Personal Information</u>. To facilitate the administration of the Plan and any successor plan and the terms of this Agreement, it may be necessary for the Company and its administrators to collect, hold and process certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title, any shares of Common Stock owned, relationship to the Company, details of all awards issued under the Plan or any predecessor or successor plan or any other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant's favor, for the exclusive purpose of implementing, administering and managing the Plan ("<u>Data</u>") and to transfer this Data to certain third parties such as transfer agents, stock plan service providers, and brokers with whom the Participant or the Company may elect to deposit any

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shares of Common Stock. The Participant hereby consents to the collection, use and transfer, in electronic or other form, of the Participant's Data for the exclusive purposes of implementing, administering and managing Participant's participation in the Plan and any predecessor and successor plan and handling of Common Stock issued pursuant to the Plan. The Participant understands that Data will be transferred to the Company's transfer agent, broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and any predecessor and successor plan. The Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients' country (*e.g.*, the United States) may have different data privacy laws and protections than the Participant's country. The Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Participant authorizes the Company, the Company's broker, administrative agents, and any other possible recipients that may assist the Company (presently or in the future) with implementing, administering and managing the Plan or any predecessor or successor plan to receive, possess, use, process, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant's participation in the Plan or any predecessor or successor plan and handling of Common Stock issued pursuant to the Plan. The Participant understands that Data will be held only as long as is necessary for this purpose. The Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participant understands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Company will not be adversely affected; the only adverse consequence of refusing or withdrawing the Participant's consent is that the Company would not be able to grant RSUs or other equity awards or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant's ability to participate in the Plan or any successor plan. For more information on the consequences of the Participant's refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Lock-up</u>. In connection with any underwritten public offering by the Company of its equity securities pursuant to a registration statement filed under the Securities Act, upon the request of the Company or the underwriters managing such offering, during the Lock-up Period (as defined below), the Participant shall not, without the prior written consent of the Company or its underwriters, directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer or grant any option, right or warrant or other contract for the purchase of, lend, purchase any option or other contract for the sale of, enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any shares of Common Stock or other securities into which the shares of Common Stock may be converted or that are issued in respect of the shares of Common Stock (other than those included in the registration). For this purpose, the "<u>Lock-up Period</u>" means such period of time after the effective date of the registration as is requested by the Company or the underwriters; provided that such period shall not exceed 180 days (or such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar successor rules). The Company's underwriters shall be beneficiaries of this provision, and the Participant shall execute and deliver such agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In addition, if requested by the Company

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or the underwriters of Common Stock (or other securities) of the Company, the Participant shall provide, within ten (10) days of such request, such information as may be required or reasonably requested by the Company or the underwriters in connection with the completion of any public offering of the Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 11(d) shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said 180-day (or other) period. The Participant agrees, and will cause any transferee to agree, that any transferee of the RSU shall be bound by this Section 11(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. Any right of the Company contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Section</u> <u>409A</u>. The RSUs are intended to be exempt from, or compliant with, Section 409A of the Code. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Participant to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole discretion and without the Participant's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and/or (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable provision without materially increasing the cost to the Company or contravening the provisions of Section 409A of the Code. This Section 10(f) does not create an obligation on the part of the Company to modify the Plan or this Agreement and does not guarantee that the RSUs will not be subject to interest and penalties under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>General Assets</u>. All amounts credited in respect of the RSUs to the book-entry account under this Agreement shall continue for all purposes to be part of the general assets of the Company. The Participant's interest in such account shall make the Participant only a general, unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notices</u>. Any notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage-paid first-class mail. Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant's address indicated by the Company's records, or if to the Company, to the attention of the General Counsel at the Company's principal executive office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Participant at any time for any reason whatsoever. The Participant

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hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the Company and that Participant has no right or entitlement to receive future awards under the Plan. Neither the grant of the RSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the Company or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Fractional Shares</u>. No fractional shares of Common Stock shall be issued or delivered pursuant to this Agreement, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional shares of Common Stock, or whether such fractional shares of Common Stock or any rights thereto shall be canceled, terminated or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Beneficiary</u>. The Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto, other than any other non-competition, non-solicitation, non-disparagement or non-disclosure or other similar agreement to which the Participant may be a party, the covenants of which shall continue to apply to the Participant in accordance with the terms of such agreement. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 11 or 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(p)(ii) or 11(p)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having

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jurisdiction over the parties or their assets; <u>provided</u>, <u>however</u>, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 5 of the Agreement and the Participant hereby consents that such restraining order or injunction may be granted without requiring the Company to post a bond. Any review by an arbitrator pursuant to this Section 11(p) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(p)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Participant agrees that it would be difficult to measure any damages caused to the Company and its Affiliates which might result from any breach by the Participant of the covenants set forth in Section 5, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Participant breaches, or proposes to breach, Section 5, the Company and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 5 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Participant and the Company (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each of the parties hereto hereby irrevocably waives all right to trial, including trial by jury, in any action, proceeding or counterclaim arising out of or relating to the plan or this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Counterparts</u>. This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Electronic Signature and Delivery</u>. This Agreement may be accepted by return signature or by electronic confirmation. By accepting this Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant at any time upon three business days' notice to the Company, in which case subsequent prospectuses, annual reports and other information will be delivered in hard copy to the Participant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Electronic Participation in Plan</u>. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

*[Remainder of page intentionally blank]* 

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IN WITNESS WHEREOF, this Performance-Based Restricted Stock Unit Award Agreement has been executed by the Company and the Participant as of the day first written above.

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| | |
|:---|:---|
|  PHOENIX EDUCATION PARTNERS, INC. | PHOENIX EDUCATION PARTNERS, INC. |
| By: |  |
|  | Name: |
|  | Title: |
| PARTICIPANT | PARTICIPANT |
|  [Insert Name] | [Insert Name] |

---

## Exhibit 10.16

**Exhibit 10.16** 

**PHOENIX EDUCATION PARTNERS, INC.** 

**2025 OMNIBUS INCENTIVE PLAN** 

**<u>PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT</u>**

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this "<u>Agreement</u>"), is entered into as of [•] (the "<u>Date of Grant</u>"), by and between Phoenix Education Partners, Inc., a Delaware corporation (the "<u>Company</u>"), and [•] (the "<u>Participant</u>"). Capitalized terms used in this Agreement and not otherwise defined herein have the meanings ascribed to such terms in the Phoenix Education Partners, Inc. 2025 Omnibus Incentive Plan, as amended, restated or otherwise modified from time to time in accordance with its terms (the "<u>Plan</u>").

WHEREAS, the Company has adopted the Plan, pursuant to which restricted stock units subject to service- and performance-vesting criteria ("<u>PSUs</u>") may be granted; and

WHEREAS, the Committee has determined that it is in the best interests of the Company and its stockholders to grant the PSUs provided for herein to the Participant on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

**1. Grant of Performance-Based Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. The Company hereby grants to the Participant [•] PSUs (the "<u>Target PSUs</u>"), on the terms and subject to the conditions set forth in this Agreement and as otherwise provided in the Plan. As more fully described in Section 2, each PSU represents the right to receive one share of Common Stock, subject to (i) the satisfaction of the IPO Condition, (ii) the achievement of the applicable performance goals described in Section 2 and (iii) the Participant's continued employment or service with the Company through and including the Vesting Date (as defined below). The "<u>IPO Condition</u>" shall be deemed satisfied upon the consummation of the Company's initial public offering of shares of Common Stock. The PSUs shall be credited to a separate book-entry account maintained for the Participant on the books of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incorporation by Reference</u>. The provisions of the Plan are incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Participant and the Participant's beneficiary in respect of any questions arising under the Plan or this Agreement, subject to Section 11(p). The Participant acknowledges that the Participant has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

**2. Calculation of Amount Earned; Settlement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The total number of PSUs earned, if any, shall be the amounts earned (rounded to the nearest integer) in respect of the Performance Period as set forth below:

Reserved

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement:

"<u>Performance Period</u>" means (A) the period beginning on the first day of the Company's 2026 fiscal year (September 1, 2025) and ending on the last day of the Company's 2028 fiscal year (September 1, 2028).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 4, each earned PSU shall be settled within 15 days following the Vesting Date in shares of Common Stock.

**3. Dividend Equivalents.** In the event of any issuance of a cash dividend on the shares of Common Stock (a "<u>Dividend</u>"), the Participant shall be credited, as of the payment date for such Dividend, with an amount (a "<u>Dividend Equivalent</u>") equal to the product of (i) the number of Target PSUs granted pursuant to this Agreement and outstanding as of the record date for such Dividend multiplied by (ii) the amount of the Dividend per share. The aggregate amount of the Dividend Equivalents (as adjusted to reflect the earned PSUs) (the "<u>Distributable Amount</u>") shall be distributed to the Participant in connection with the settlement of the earned PSUs either in cash or, at the discretion of the Committee, in a number of shares of Common Stock with a Fair Market Value (as determined on the Vesting Date) equal to the Distributable Amount. To the extent any PSUs are forfeited prior to vesting, the corresponding Dividend Equivalents in respect thereof shall be forfeited immediately thereupon.

**4. Termination of Employment or Services.** Except as otherwise provided in this Agreement, if the Participant's employment with, membership on the board of directors of, or engagement to provide services to the Company or any of its Affiliates terminates for any reason prior to the last day of the Performance Period (the "<u>Vesting Date</u>"), all PSUs shall be canceled immediately and the Participant shall not be entitled to receive any payments with respect thereto.

**5. Restrictive Covenants.** The Participant agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Competition</u>. During the term of the Participant's employment with the Company or any of its Affiliates and for a period of one (1) year thereafter, the Participant shall not (without the prior written consent of the Company), directly or indirectly, engage in any Competitive Activity within the Restricted Area. For purposes of this Section 5:

"<u>Competitive Activity</u>" refers to (as an employee, consultant, director, officer, owner, investor, partner or in any other capacity) (i) providing, supervising or managing services for a Competitive Business that are the same as or similar to those Participant provided, supervised or managed while employed with the Company in the preceding two (2) year period (the "<u>Look Back Period</u>"), (ii) rendering any services to a Competitive Business in a manner that enhances the capacity of such Competitive Business to engage in the production, sale, provision or distribution of products or services similar to those produced, sold, distributed or provided by the Company or any of its Affiliates or (iii) acquiring a significant financial interest in a Competitive Business.

"<u>Competitive Business</u>" shall mean Western Governors University, Southern New Hampshire University, any for-profit institution of higher learning or any not-for-profit educational institution that competes with the business of the Company or its Affiliates.

"<u>Restricted Area</u>" means (i) each state and county (or equivalents) where the Company or an Affiliate does business and in which the Participant has involvement with, or for which the Participant has any responsibility or with respect to which the Participant is provided Confidential Information during the Look Back Period so long as the Company or an Affiliate continues to do business therein and (ii) any prospective geographic area or territory that within the six (6) months has been the subject of serious consideration by the Company or any of its Affiliates as a business location and which the Participant is or has been made aware of.

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The phrase "<u>directly or indirectly engage in</u>" shall include any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer of or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise (provided that licensers of technology shall be covered only if the Participant is personally working on technology for a Competitive Business and such technology is not technology that is generally available to a broad group of customers).

A financial interest will not be considered "<u>significant</u>" if it involves being a passive owner of not more than 2% of the outstanding equity securities of any class of a corporation or other entity that is publicly traded, or not more than 2% of any non-voting equity securities or debt securities of any corporation or other entity, so long as the Participant has no active participation in the business of such corporation or other entity (including, without limitation, serving as a member of the board of directors or as a consultant).

For purposes of this Section 5(a), "<u>Affiliates</u>" shall not include Apollo or its Affiliates, including other portfolio companies of Apollo (i.e., entities that were not at any time part of Apollo Education Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation; Non-Hire</u>. During the term of the Participant's employment with the Company or any of its Affiliates and for a period of two (2) years thereafter, the Participant shall not (without the prior written consent of the Company) directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, induce or attempt to solicit or induce any officer, director or employee of the Company or any of its Affiliates (a "<u>Covered Individual</u>") to terminate his/her/their relationship with or leave the employ of the Company or any such Affiliate or in any way interfere or attempt to interfere with the relationship between the Company or any such Affiliate, on the one hand, and any Covered Individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) hire (or other similar arrangement) or assist a Competitive Business in its efforts to hire (or other similar arrangement) a Covered Individual away from the Company or an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, induce or attempt to solicit or induce any customer of the Company or any of its Affiliates that the Participant has material contact with, or is provided Confidential Information about in the course of employment with the Company or an Affiliate in the Look Back Period (a "<u>Covered Customer</u>") for the purpose of causing the Covered Customer to do business with a Competitive Business, or to cease or reduce doing business with the Company or an Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, induce or attempt to solicit or induce any supplier, prospect licensee or other business relation of the Company or an Affiliate (a "<u>Covered Provider</u>") to cease or reduce doing business with the Company or such Affiliate, or interfere or attempt to interfere with the relationship between any Covered Provider, on the one hand, and the Company or an Affiliate, on the other hand;

<u>provided</u>, that neither (A) the Participant's acting as a reference for employees, or (B) any generic, nontargeted advertising affiliated directly or indirectly with the Participant shall be deemed a breach of this Section 5(b). For purposes of this Section 5(b), "Affiliates" shall have the same meaning as in Section 5(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Disparagement</u>. During the term of the Participant's employment with the Company or any of its Affiliates and thereafter in perpetuity, the Participant shall not, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the Company or any of its Affiliates, successors, directors or officers; provided, however, that the forgoing shall not prohibit the Participant from engaging in any conduct that is Protected Conduct (as described in Section 5(f)). The foregoing shall not be violated by the Participant by truthful responses to legal process or inquiry by a governmental authority. For purposes of this Section 5(c), "Affiliates" shall have the same meaning as in Section 5(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Disclosure of Confidential Information; Return of Property</u>. During the term of the Participant's employment with the Company or any of its Affiliates and thereafter in perpetuity, the Participant shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Participant's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets of or relating to the Company or any of its Affiliates, including, without limitation, information with respect to the Company's or any of its Affiliates' operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets (collectively, "<u>Confidential Information</u>"). Upon the Participant's termination of employment for any reason, the Participant shall promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company's or any of its Affiliates' customers, business plans, marketing strategies, products or processes. The Participant may nonetheless retain copies of documents relating to the Participant's compensation; the Participant's personal entitlements and obligations; and the Participant's cell phone number. The Participant may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest practicable notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and, if requested by the Company, shall reasonably assist such counsel in resisting or otherwise responding to such process.

Other than to the extent the Participant is permitted by law to discuss the Participant's own wages, the Participant hereby agrees that (i) except as required by law, the Participant will not disclose to any Person other than the Participant's spouse and legal, financial and other advisors (if any) the grant of the PSUs or any of the terms or provisions hereof without the prior approval of the Committee, and (ii) in the discretion of the Committee, the PSUs shall terminate and any outstanding portion of such PSUs (whether or not vested) shall be forfeited if the Participant violates the non-disclosure provisions of this Section 5(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that the results and proceeds of the Participant's services for the Company or its subsidiaries or Affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Participant, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the Company (or, if applicable or as directed by the Company, any of its subsidiaries or Affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in

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perpetuity in any manner the Company determines in its sole discretion, without any further payment to the Participant whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the Company (or, as the case may be, any of its subsidiaries or Affiliates) under the immediately preceding sentence, then the Participant hereby irrevocably assigns and agrees to assign any and all of the Participant's right, title and interest thereto, including, without limitation, any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the Company (or, if applicable or as directed by the Company, any of its subsidiaries or Affiliates), and the Company or such subsidiaries or Affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the Company or such subsidiaries or Affiliates without any further payment to the Participant whatsoever; <u>provided, however</u>, that the forgoing assignment of inventions shall be limited so that it does not require or create any assignment of an invention that cannot be assigned through an agreement between an employee and employer under controlling law, and Participant acknowledges notice of the following laws of this nature:

Cal. Lab. Code, § 2870; Del. Code Title 19 § 805; Illinois 765 ILCS 1060/1-3; Kan. Stat. Section 44-130; Minn. Statutes, 13A, Section 181.78; New Jersey Statutes Title 34. Labor and Workmen's Compensation 34 § 1B-265; NY Labor Law § 203-f; N. Car. General Statutes, Art. 10A, Chapter 66, Commerce and Business, § 66-57.1; Utah Code § 34-39-1 through 34-39-3; Wash. Rev. Code, Title 49 RCW: Labor Regulations, Chapter 49.44.140); and I understand that each of these laws has a similar limitation on what can be assigned. As an example, I understand that (a) Cal. Lab. Code, § 2870 provides: *"Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer"*, and (b) that the remainder of the states listed are substantively the same with the exception that in Kansas, Minnesota and Washington the statutes make assignable an invention that "relates … directly to the business of the employer" instead of those that "Relate … to the employer's business" as part (1) is worded in the California statute.

As to any Invention that the Participant is required to assign, the Participant shall promptly and fully disclose to the Company all information known to the Participant concerning such Invention. The Participant hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, that the Participant now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant agrees that, from time to time, as may be requested by the Company and at the Company's sole cost and expense, the Participant shall do any and all things that the Company may reasonably deem useful or desirable to establish or document the Company's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Participant has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the

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Participant unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 5(e) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the Company of any Proprietary Rights of ownership to which the Company may be entitled by operation of law by virtue of the Company's being the Participant's employer (or Affiliate of the Participant's employer, as applicable). The Participant further agrees that, from time to time, as may be requested by the Company and at the Company's sole cost and expense, the Participant shall assist the Company in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Participant shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof. In addition, the Participant shall execute, verify, and deliver assignments of such Proprietary Rights to the Company or its designees. The Participant's obligation to assist the Company with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Participant's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Whistleblower Protection / Protected Conduct</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Participant from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Nothing in this Agreement limits or affects the Participant's right to disclose or discuss criminal conduct, discrimination, harassment (including but not limited to sexual harassment or sexual assault) or retaliation, prohibits the Participant from discussing such matters with the Participant's own legal counsel or prohibits the Participant from providing truthful testimony in a legal, administrative or arbitration proceeding. The Participant does not need the prior authorization of the Company to make any such reports or disclosures and the Participant is not required to notify the Company that the Participant has made such reports or disclosures. Notwithstanding anything to the contrary contained herein, the Participant will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Participant files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Participant may disclose the Company's trade secrets to the Participant's attorney and use the trade secret information in the court proceeding if the Participant: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. If the Participant is employed in a non-management, non-supervisory role then nothing in this Agreement will prohibit the Participant from engaging in conduct that is protected under Section 7 of the National Labor Relations Act (NLRA) such as the right of employees to self-organization, to form, join, or assist labor organizations, to strike, picket or otherwise engage in other concerted activities for their mutual aid or protection or refuse to do so; this includes using or disclosing information acquired through lawful means regarding the wages, benefits or other terms and conditions of employment for any purpose protected under the NLRA unless the information concerns other employees and was entrusted to the Participant in confidence by the Company as part of confidential job duties (such as human resource management, payroll or benefits administration duties).

The conduct protected under this Section 5(f) is collectively referred to as "<u>Protected Conduct</u>" in this Agreement and shall not be construed to protect, invite, permit or limit liability for illegal activity such as breaking and entering, illegal computer access (hacking), or theft or destruction of the property of the Company or an Affiliate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participant Acknowledgements</u>. The Participant understands that this Section 5 may limit Participant's ability to earn a livelihood in a business competitive to the business of the Company and its Affiliates. The Participant expressly acknowledges and agrees that this Section 5 is reasonable and necessary for the protection of the legitimate business interests of the Company and is reasonable in scope. For the avoidance of doubt, the Participant's covenants in this Section 5 are in addition to, and not in lieu of, and do not in any way modify, limit, restrict, abrogate, or otherwise amend any other restrictive covenant obligations (including, without limitation, any noncompetition, nonsolicitation, nondisparagement, confidentiality, intellectual property, or similar obligations) that run in favor of the Company or its Affiliates and by which the Participant is bound pursuant to any employment or other written agreement with, or policy, program, or arrangement of, the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notification of Subsequent Employer</u>. The Participant hereby agrees that prior to accepting employment with, or agreeing to provide services to, any other Person during the one (1) year period following the Participant's termination of employment during which the Participant remains subject to any of the covenants set forth in Section 5, the Participant shall provide such prospective employer with written notice of the provisions of this Section 5 (to the extent any such provisions are applicable and in effect at the time of such notice), with a copy of such notice delivered to the Company not later than three (3) business days prior to the date on which the Participant commences such employment or provision of services. For the avoidance of doubt, the Company shall in any event be permitted to provide any such prospective employer with written notice of the provisions of this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Forfeiture; Other Relief</u>. In the event the Participant fails to comply with the restrictive covenants set forth in this Section 5, then in addition to any other remedy that may be available at law or in equity, the PSUs shall be automatically forfeited effective as of the date on which such violation first occurs, and, in the event that any PSUs have been settled within the three (3) year period immediately preceding such breach, the Participant shall forfeit any shares of Common Stock received upon such settlement without consideration and be required to promptly repay to the Company, upon ten (10) days prior written demand by the Committee, any compensation, gain or proceeds received by the Participant upon settlement of such PSUs or upon disposition of the shares of Common Stock. The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the Company and shall not prevent (and the Participant shall not assert that they shall prevent) the Company from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Participant's breach of such restrictive covenants to the full extent contemplated by Section 11(p). The Participant acknowledges and agrees that irreparable injury will result to the Company and its goodwill if the Participant breaches any of the terms of the covenants set forth in this Section 5, the exact amount of which will be difficult or impossible to ascertain, and that remedies at law would be an inadequate remedy for any breach. Accordingly, the Participant hereby agrees that, in the event of a breach of any of the covenants contained in this Section 5, in addition to any other remedy which may be available at law or in equity, the Company shall be entitled to specific performance and injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability; Blue Pencil</u>. The invalidity or non-enforceability of any provision of this Section 5 in any respect shall not affect the validity or enforceability of the other provisions of this Section 5 in any other respect, or of any other provision of this Agreement. In the event that any provision of this Section 6 shall be held invalid, illegal or unenforceable (whether in whole or in part) by a court of competent jurisdiction, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions (and part of such provision, as the case may be) shall not be affected thereby; <u>provided</u>, <u>however</u>, that if any provision of this Section 5 is finally held to be invalid, illegal or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

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**6. Rights as a Stockholder.** The Participant shall not be deemed for any purpose to be the owner of any shares of Common Stock underlying the PSUs unless, until and to the extent that (i) the Company shall have issued and delivered to the Participant the shares of Common Stock underlying the PSUs and (ii) the Participant's name shall have been entered as a stockholder of record with respect to such shares of Common Stock on the books of the Company. The Company shall cause the actions described in clauses (i) and (ii) of the preceding sentence to occur promptly following settlement as contemplated by this Agreement, subject to compliance with applicable laws.

**7. Compliance with Legal Requirements.** The granting and settlement of the PSUs, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such restrictions on the PSUs as it deems reasonably necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which shares of Common Stock are then listed or traded, and/or any blue sky or state securities laws applicable to such shares of Common Stock. In the event of the settlement of the PSUs at a time when there is not in effect a registration statement under the Securities Act relating to the shares of Common Stock, the Participant hereby represents and warrants, and by virtue of such settlement shall be deemed to represent and warrant to the Company that the shares of Common Stock are being acquired for investment only and not with a view to the distribution thereof, and the Participant shall provide the Company with such further representations and warranties as the Company may reasonably require in order to ensure compliance with applicable federal and state securities, "blue sky" and other laws. In no event shall the Company be obligated to register shares of Common Stock under state or Federal securities laws, to comply with the requirements of any exemption from registration requirements or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the issuance of shares of Common Stock pursuant to the settlement of the PSUs which may be imposed by any applicable law, rule or regulation. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant. The Participant agrees to take all steps the Committee or the Company determines are reasonably necessary to comply with all applicable provisions of federal and state securities law in exercising the Participant's rights under this Agreement

**8. Tax Withholding**. Vesting and settlement of the PSUs shall be subject to the Participant's satisfying any applicable U.S. federal, state and local tax withholding obligations and non-U.S. tax withholding obligations. The Company shall have the right and is hereby authorized to withhold from any amounts payable to the Participant in connection with the PSUs or otherwise the amount of any required withholding taxes in respect of the PSUs, their settlement or any payment or transfer of the PSUs or under the Plan and to take any such other action as the Committee or the Company deem necessary to satisfy all obligations for the payment of such withholding taxes (up to the maximum permissible withholding amounts), including the right to sell the number of shares of Common Stock that would otherwise be available for delivery upon settlement of the PSUs necessary to generate sufficient proceeds to satisfy withholding obligations. The Participant may elect to satisfy, and the Company may in all events require the Participant to satisfy, in whole or in part, the tax obligations by withholding shares of Common Stock that would otherwise be deliverable to the Participant upon settlement of the PSUs with a Fair Market Value equal to such withholding liability.

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**9. Clawback.** Notwithstanding anything to the contrary contained herein, the Committee may cancel the PSU award if the Participant, without the consent of the Company, has engaged in or engages in activity that is in conflict with or adverse to the interests of the Company or any Affiliate while employed by, serving as a director of, or otherwise providing services to the Company or any Subsidiary, including fraud or conduct contributing to any financial restatements or irregularities, or violates a non-competition, non-solicitation, non-disparagement or non-disclosure covenant or agreement with the Company or any Subsidiary (after giving effect to any applicable cure period set forth therein), as determined by the Committee. In such event, the Participant will forfeit any compensation, gain or other value realized thereafter on the vesting or settlement of the PSUs, the sale or other transfer of the PSUs, or the sale of shares of Common Stock acquired in respect of the PSUs (provided that the PSUs vested during the 12-month period immediately prior to the Participant's adverse activity), and must promptly repay such amounts to the Company. To the extent required by applicable law or the rules and regulations of the NYSE or any other securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted, or if so required pursuant to a written policy adopted by the Company, the PSUs shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement).

**10. Litigation Cooperation**. The Participant agrees that during and after the Participant's employment by the Company and its Affiliates, the Participant will assist the Company and its Affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against the Company or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, which are not adverse to the Participant (an "<u>Action</u>"), and will assist the Company and its Affiliates in the prosecution of any claims, which are not adverse to the Participant, that may be made by the Company or any of its Affiliates in any Action, to the extent that such claims may relate to the Participant's employment or the period of the Participant's employment by the Company and its Affiliates. The Participant agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to participate (or otherwise become involved) in any Action involving such claims or potential claims. The Company also agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to assist in any investigation (whether governmental or otherwise) of the Company or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Participant's employment or the period of the Participant's employment by the Company, regardless of whether a lawsuit has then been filed against the Company or any of its Affiliates with respect to such investigation. The Company or one of its Affiliates shall reimburse the Participant for all of the Participant's reasonable out-of-pocket expenses associated with such assistance. Any reimbursement that is taxable income to the Participant shall be subject to applicable withholding and employment taxes.

**11. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>. The PSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered (a "<u>Transfer</u>") by the Participant other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 14(b) of the Plan. Any attempted Transfer of the PSUs contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the PSUs, shall be null and void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Committee at any time, and from time to time, may amend the terms of this Agreement, <u>provided</u>, <u>however</u>, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Personal Information</u>. To facilitate the administration of the Plan and any successor plan and the terms of this Agreement, it may be necessary for the Company and its administrators to collect, hold and process certain personal information about the Participant, including, but not limited to, the Participant's name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title, any shares of Common Stock owned,

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relationship to the Company, details of all awards issued under the Plan or any predecessor or successor plan or any other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant's favor, for the exclusive purpose of implementing, administering and managing the Plan ("<u>Data</u>") and to transfer this Data to certain third parties such as transfer agents, stock plan service providers, and brokers with whom the Participant or the Company may elect to deposit any shares of Common Stock. The Participant hereby consents to the collection, use and transfer, in electronic or other form, of the Participant's Data for the exclusive purposes of implementing, administering and managing Participant's participation in the Plan and any predecessor and successor plan and handling of Common Stock issued pursuant to the Plan. The Participant understands that Data will be transferred to the Company's transfer agent, broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and any predecessor and successor plan. The Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients' country (*e.g.*, the United States) may have different data privacy laws and protections than the Participant's country. The Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Participant authorizes the Company, the Company's broker, administrative agents, and any other possible recipients that may assist the Company (presently or in the future) with implementing, administering and managing the Plan or any predecessor or successor plan to receive, possess, use, process, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant's participation in the Plan or any predecessor or successor plan and handling of Common Stock issued pursuant to the Plan. The Participant understands that Data will be held only as long as is necessary for this purpose. The Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participant understands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Company will not be adversely affected; the only adverse consequence of refusing or withdrawing the Participant's consent is that the Company would not be able to grant PSUs or other equity awards or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant's ability to participate in the Plan or any successor plan. For more information on the consequences of the Participant's refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Lock-up</u>. In connection with any underwritten public offering by the Company of its equity securities pursuant to a registration statement filed under the Securities Act, upon the request of the Company or the underwriters managing such offering, during the Lock-up Period (as defined below), the Participant shall not, without the prior written consent of the Company or its underwriters, directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer or grant any option, right or warrant or other contract for the purchase of, lend, purchase any option or other contract for the sale of, enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any shares of Common Stock or other securities into which the shares of Common Stock may be converted or that are issued in respect of the shares of Common Stock (other than those included in the registration). For this purpose, the "<u>Lock-up Period</u>" means such period of time after the effective date of the registration as is requested by the Company or the underwriters; provided that such period shall not exceed 180 days (or such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the

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restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar successor rules). The Company's underwriters shall be beneficiaries of this provision, and the Participant shall execute and deliver such agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In addition, if requested by the Company or the underwriters of Common Stock (or other securities) of the Company, the Participant shall provide, within ten (10) days of such request, such information as may be required or reasonably requested by the Company or the underwriters in connection with the completion of any public offering of the Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 11(d) shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said 180-day (or other) period. The Participant agrees, and will cause any transferee to agree, that any transferee of the PSU shall be bound by this Section 11(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. Any right of the Company contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Section</u> <u>409A</u>. The PSUs are intended to be exempt from, or compliant with, Section 409A of the Code. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Participant to incur any tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole discretion and without the Participant's consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and/or (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable provision without materially increasing the cost to the Company or contravening the provisions of Section 409A of the Code. This Section 10(f) does not create an obligation on the part of the Company to modify the Plan or this Agreement and does not guarantee that the PSUs will not be subject to interest and penalties under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>General Assets</u>. All amounts credited in respect of the PSUs to the book-entry account under this Agreement shall continue for all purposes to be part of the general assets of the Company. The Participant's interest in such account shall make the Participant only a general, unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notices</u>. Any notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage-paid first-class mail. Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant's address indicated by the Company's records, or if to the Company, to the attention of the General Counsel at the Company's principal executive office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Rights to Employment; Discretionary and Independent Nature of the Plan</u>. Nothing contained in this Agreement shall be construed as giving the Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Participant at any time for any reason whatsoever. The Participant hereby acknowledges and agrees that the selection of participants in the Plan and grant of awards thereunder is entirely at the discretion of the Company and that Participant has no right or entitlement to receive future awards under the Plan. Neither the grant of the PSUs nor any payments in respect thereof shall be taken into account in determining severance payments, if any, or any benefits or compensation under any pension, retirement, profit sharing, group insurance or other benefit or compensation plan of the Company or its Affiliates except as expressly required otherwise by law or the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Fractional Shares</u>. No fractional shares of Common Stock shall be issued or delivered pursuant to this Agreement, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional shares of Common Stock, or whether such fractional shares of Common Stock or any rights thereto shall be canceled, terminated or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Beneficiary</u>. The Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Successors</u>. The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Entire Agreement</u>. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto, other than any other non-competition, non-solicitation, non-disparagement or non-disclosure or other similar agreement to which the Participant may be a party, the covenants of which shall continue to apply to the Participant in accordance with the terms of such agreement. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 11 or 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Governing Law</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Arbitration; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 11(p)(ii) or 11(p)(iii) below, any dispute, claim or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan, or any breach, termination or validity thereof, shall be finally determined and settled by arbitration in Arizona in accordance with the applicable rules of the American Arbitration Association in effect at the time of arbitration, and judgment upon the award may be entered in any court having jurisdiction thereof or having jurisdiction over the parties or their assets; <u>provided</u><u>,</u> <u>however</u>, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 5 of the Agreement and the Participant hereby consents that such restraining order or injunction may be granted without requiring the Company to post a bond. Any review by an arbitrator pursuant to this Section 11(p) shall be *de novo*. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; <u>provided</u>, <u>however</u>, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. Unless and only to the extent prohibited by applicable law, the parties agree to maintain all aspects of any arbitration proceedings, findings and decisions (whether by arbitrator or court) strictly confidential. To the extent permitted by law, the arbitrator's fees and expenses will be borne equally by each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 11(p)(i), each party shall pay its own attorneys' fees and expenses regardless of whether there is a prevailing party in the opinion of the arbitrator deciding such action or the court in which any such arbitration award is entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Participant agrees that it would be difficult to measure any damages caused to the Company and its Affiliates which might result from any breach by the Participant of the covenants set forth in Section 5, and that in any event, money damages would be an inadequate remedy for any such breach. Accordingly, if the Participant breaches, or proposes to breach, Section 5, the Company and its Affiliates shall be entitled, in addition to all other remedies such party may have, to a temporary, preliminary or permanent injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the non-breaching party or posting a bond from any court having competent jurisdiction over either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any dispute or controversy arising under or in connection with Section 5 hereof, including without limitation any claim of breach or threatened breach thereof, shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, the Delaware Court of Chancery, or if that court is unable to exercise jurisdiction for any reason, any Delaware state court sitting in New Castle County, and each of the Participant and the Company (on behalf of itself and its Affiliates) consents to such jurisdiction, waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process and waives any objection to jurisdiction based on improper venue or improper jurisdiction.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each of the parties hereto hereby irrevocably waives all right to trial, including trial by jury, in any action, proceeding or counterclaim arising out of or relating to the plan or this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Headings</u>. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Counterparts</u>. This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Electronic Signature and Delivery</u>. This Agreement may be accepted by return signature or by electronic confirmation. By accepting this Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant at any time upon three business days' notice to the Company, in which case subsequent prospectuses, annual reports and other information will be delivered in hard copy to the Participant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Electronic Participation in Plan</u>. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

*[Remainder of page intentionally blank]* 

------

IN WITNESS WHEREOF, this Performance-Based Restricted Stock Unit Award Agreement has been executed by the Company and the Participant as of the day first written above.

---

| | |
|:---|:---|
| PHOENIX EDUCATION PARTNERS, INC. | PHOENIX EDUCATION PARTNERS, INC. |
| By: |  |
|  | Name: |
|  | Title: |
| PARTICIPANT | PARTICIPANT |
| [Insert Name] | [Insert Name] |

---

## Exhibit 10.17

**Exhibit 10.17** 

The University of Phoenix, Inc. Bonus Plan – Executive

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PARTICIPANTS AND ELIGIBILITY | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CALCULATION OF BONUS PAYMENTS | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TIMING OF BONUS PAYMENTS | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BONUS TARGETS | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENERAL MATTERS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APPEALS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BONUS GOALS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXECUTIVE TEAM UPSIDE | 4.0 |

---

 <br> University of Phoenix ~ Bonus Plan 1

------

**PARTICIPANTS AND ELIGIBILITY** 

Only full-time, non-covered employees<sup>1</sup> of The University of Phoenix, Inc. ("University") who are either the President of the University or a direct report to the President and in a Leadership Team position ("eligible Executive position") are eligible to participate in the Plan ("Participant").

All terms and conditions of The University of Phoenix, Inc. Bonus Plan – Executive Team (the "Plan"), including but not limited to annual bonus award targets for participants, together with the obligations and liabilities of the University that accrue under the Plan, shall be binding upon any successor to the University, whether such succession occurs by way of merger, consolidation, acquisition, reorganization or other change in ownership or control of the University (as defined below). Any successor to the University shall be bound to the terms and conditions of the Plan for at least the remainder of the fiscal year in which the Change in Control of the University occurs and including the period of time required to determine and pay (regardless of whether such bonus award would be deferred based upon participants' elections) the required bonus awards, if earned under the terms of the Plan, to participants.

After the start of the fiscal year, the effective date of participation in the Plan will begin on the date of hire (for new hires), or date of transfer to an eligible executive position.

A Participant will be paid a pro-rata bonus, if earned under the terms of the Plan, for the time the Participant is in an eligible executive position during the fiscal year ("Performance Period"). Such pro-ration will be calculated by dividing the number of calendar days the Participant is in an eligible executive position by the total number of calendar days in the fiscal year.

Participants must be in a bonus eligible position for at least 60 calendar days of the fiscal year to qualify for a bonus payment for that performance period, except in the case of an involuntary termination as defined below.

A Participant whose employment terminates voluntarily must be employed by the University through the last day of the performance period (defined below) to be eligible to receive a bonus payment for the performance period. Participants terminated with cause will be ineligible for a bonus payout. If a Participant's termination of employment is involuntary and without cause, or the Participant dies or is transitioning to long-term disability status during the Performance Period, or if a Participant is no longer eligible to participate in the Plan due to a change in position and/or full-time status, AND the Participant was in a bonus eligible position for at least 60 calendar days of the fiscal year, the Participant will be eligible to receive a pro-rata bonus payment for the fiscal year. Any payment earned will be paid at the same time as all other bonus payments for each performance period. Such pro-ration will be calculated by dividing the number of calendar days prior to termination, death or long-term disability, or change in eligibility by the total number of calendar days in the fiscal year.

<sup>1</sup> **"Non-Covered" employees** are individuals employed by the University in jobs that do not, *at any time,* engage directly or indirectly in securing enrollments, influencing retention or awarding financial aid ("non-covered jobs"). 

 <br> University of Phoenix ~ Bonus Plan 2

------

Management, in its sole discretion, may elect to reduce or cancel the bonus for any Participant who received any form of disciplinary warning or action, either during the applicable performance period or at the time the bonus for the performance period is paid.

**CALCULATION OF BONUS PAYMENTS** 

The bonus period payout is based on an assessment of performance from September 1 through the end of the fiscal year ("Performance Period"). Payment of the bonus for the Performance Period will be calculated using 100% of the annual target, multiplied by the achievement of the financial metrics for the Performance Period. When necessary, a pro-rate factor will be applied.

When a Participant changes bonus plans during the Performance Period, any bonus payment will be calculated using the bonus plan terms, metrics, and other features in effect for each bonus plan on a pro-rata basis.

**TIMING OF BONUS PAYMENTS** 

The bonus payout, if performance targets are achieved, will occur following the conclusion of the fiscal year, after August 31<sup>st</sup> and will be based on the Performance Period results.

The exact timing of bonus payments under the Plan depends on a variety of factors, which include items such as final verification of bonus goal achievement, payroll processing deadline dates and the completion of all administration and audit functions. Payment for any performance period will occur within 60 days of the end of the respective performance period.

**BONUS TARGETS** 

Bonus targets are stated as a percentage of base salary. The base salary in effect at the end of the Performance Period will be used to calculate the bonus, except when a Participant's bonus target percentage or position level changes during the performance period. In this case, the bonus for the performance period will be calculated by adding a pro-rata bonus under the bonus target percentage and base salary in the original position for the period before the change and a pro-rata bonus under the bonus target percentage and base salary in the new position for the period after the change, in each instance using the Participant's base salary and bonus target percentage in effect on the final date of each such period.

Any change to a Participant's bonus target must be approved per the Schedule of Executive Authority.

 <br> University of Phoenix ~ Bonus Plan 3

------

**GENERAL MATTERS** 

The University reserves the right to modify or terminate the Plan, in total or in part, at any time. Any such modification or termination must follow the same approval process that is noted in the PARTICIPANTS AND ELIGIBILITY section above.

The awarding of bonuses is discretionary, and management reserves the right to assess overall organization fiscal performance in the awarding of any bonus.

**APPEALS** 

Exceptions and appeals will be reviewed by the Human Resources Compensation Department. A recommendation will be given from the Vice President, Total Rewards to the University's Chief Human Resources Officer, who will render a final decision.

The University has the sole and exclusive authority to interpret and administer the Plan and its decisions are final.

**BONUS GOALS** 

Participants shall be eligible to earn a cash bonus under the Plan for the performance period based on the level of attainment, as determined by the University, of the bonus goals established by the University for the fiscal year. The bonus metrics and weightings are as follows:

---

| | |
|:---|:---|
| **Performance Period** | **Performance Period** |
| **100% of Annual Target** | **100% of Annual Target** |
| **EBITDA** | **Revenue** |
| 50% | 50% |

---

Performance goals for threshold and target performance and metric definitions will be set for the fiscal year and approved by the Compensation Committee.

**EXECUTIVE TEAM UPSIDE** 

Members of the University's Executive Team are eligible to receive a bonus upside payout. The bonus upside payout is achieved when full-year performance exceeds target based on full-year performance of EBITDA or Revenue, weighted 50% and 50%, respectively. The upside will be paid out, if achieved, at the same time as the bonus payment in accordance with the provisions described in Timing of Bonus Payments above.

 <br> University of Phoenix ~ Bonus Plan 4

------

Note that from time to time, an upside gate in the form of a supplemental performance condition may be used to determine whether the bonus upside can be paid. This upside gate, if not achieved, would disallow any bonus upside payout from occurring regardless of whether full-year performance exceeds target for EBITDA or Revenue.

Performance goals for the upside gate, target and maximum performance, and metric definitions will be set and approved by the Compensation Committee.

**APPROVAL** 

Cheryl Naumann - SVP, Chief Human Resources Officer

 <br> University of Phoenix ~ Bonus Plan 5

------

**Definitions:** 

"Change in Control" means, the occurrence of either of the following: (i) (A) Apollo Management Holdings, L.P. and its Affiliates ("Apollo Holders") cease to be the beneficial owners, directly or indirectly, of a majority of the combined voting power of the University's outstanding securities; and (B) a person, entity or group other than the Apollo Holders becomes the direct or indirect beneficial owner of a percentage of the combined voting power of the University's outstanding securities that is greater than the percentage of the combined voting power of the University's outstanding securities beneficially owned directly or indirectly by the Apollo Holders; or (ii) a sale of all or substantially all of the assets of the University to a person, entity or group other than the Apollo Holders; provided, however, that a mere IPO or a merger or other acquisition or combination transaction after which the Apollo Holders retain control or shared control of the University, or have otherwise not sold or disposed of more than 50% of its investment in the University as of the Closing Date in exchange for cash or marketable securities, will not result in a Change in Control; provided, further, that, following an IPO, the above clause (i) shall be deleted and replaced with: "a person, entity or group other than Apollo and its Affiliates (the "Apollo Holders") becomes the beneficial owner, directly or indirectly of 35% or more of the combined voting power of the University's outstanding securities, and such combined voting power beneficially owned is greater than the percentage of the combined voting power of the University's outstanding securities beneficially owned directly or indirectly by the Apollo Holders."

 <br> University of Phoenix ~ Bonus Plan 6

## Exhibit 10.18

**Exhibit 10.18** 

**The University of Phoenix, Inc. Bonus Plan – Leadership Team** 

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PARTICIPANTS AND ELIGIBILITY | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CALCULATION OF BONUS PAYMENTS | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TIMING OF BONUS PAYMENTS | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BONUS TARGETS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GENERAL MATTERS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APPEALS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BONUS GOALS | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LEADERSHIP TEAM UPSIDE | 5.0 |

---

University of Phoenix ~ Bonus Plan 1

------

**PARTICIPANTS AND ELIGIBILITY** 

Only full-time, non-covered employees<sup>1</sup> of The University of Phoenix, Inc. ("University") who are a part of the Leadership Team (Level 17 and higher) and are not the President or a direct report to the President ("eligible Leadership Team position") are eligible to participate in the Plan ("Participant").

All terms and conditions of The University of Phoenix, Inc. Bonus Plan – Leadership Team (the "Plan"), including but not limited to annual bonus award targets for Participants, together with the obligations and liabilities of the University that accrue under the Plan, shall be binding upon any successor to the University, whether such succession occurs by way of merger, consolidation, reorganization or other change in ownership or control of the University (as defined below). Any successor to the University shall be bound to the terms and conditions of the Plan for at least the remainder of the fiscal year in which the Change in Control of the University occurs and including the period of time required to determine and pay (regardless of whether such bonus payment would be deferred based upon Participants' elections) the required bonus payments, if earned under the terms of the Plan, to Participants.

After the start of the fiscal year, the effective date of participation in the Plan will begin on the date of hire (for new hires), or date of transfer to an eligible position.

Participants must be in an Eligible Position for at least 30 calendar days of a Performance Period (defined below) to qualify for a bonus payment for that Performance Period, except in the case of an involuntary termination.

A Participant whose employment terminates voluntarily must be employed by the University through the last day of a Performance Period to be eligible to receive a bonus payment for that Performance Period. Participants terminated with Cause (as defined in The University of Phoenix, Inc. Severance Pay Plan (As Amended and Restated Effective January 1, 2019)) will be ineligible for a bonus payment. If a Participant's termination of employment is involuntary and without Cause, or the Participant dies or is transitioning to long-term disability status during a Performance Period, or if a Participant is no longer in an Eligible Position, AND the Participant was in an Eligible Position for at least 30 calendar days of the fiscal year, the Participant will be eligible to receive a pro-rata bonus payment for the fiscal year. Any bonus payment earned will be paid at the same time as all other bonus payments for each Performance Period. Such pro-ration will be calculated by dividing the number of calendar days prior to termination, death, long-term disability or change in eligibility by the total number of calendar days in the fiscal year.

<sup>1</sup> **"Non-Covered" employees** are individuals employed by the University in jobs that do not, *at any time,* engage directly or indirectly in securing enrollments, influencing retention or awarding financial aid ("non-covered jobs"). 

University of Phoenix ~ Bonus Plan 2

------

Participants not eligible for a full Performance Period will be paid a pro-rata bonus payment, if earned under the terms of the Plan, for the time the Participant is in an Eligible Position during a Performance Period. Such pro-ration will be calculated by dividing the number of calendar days the Participant is in an Eligible Position by the total number of calendar days in the fiscal year.

Management, in its sole discretion, may elect to reduce or cancel the bonus payment for any Participant who received any form of disciplinary warning or action, either during the applicable Performance Period or at the time the bonus payment for the Performance Period is paid.

**CALCULATION OF BONUS PAYMENTS** 

The first period bonus payment is based on an assessment of performance from September 1<sup>st</sup> through the end of the second quarter of a fiscal year ("First Performance Period") and how that performance compares to the "On Track" targets. Bonus payments for the First Performance Period will be calculated using 35% of Participants' annual target, multiplied by the achievement of the financial metrics for the First Performance Period. When necessary, a pro-rate factor will be applied using the number of calendar days a Participant is eligible divided by the total number of calendar days in the fiscal year, even if the pro-ration occurs in the First Performance Period.

The second period bonus payment is based on overall performance for the fiscal year ("Second Performance Period") and how that performance compares to a Participants' full fiscal year target, minus any bonus payment for the First Performance Period. Bonus payments for the Second Performance Period will be calculated using the full annual target in effect at the end of a fiscal year, multiplied by the achievement of the financial metrics for the full fiscal year, less the bonus payment for the First Performance Period. When necessary, a pro-rate factor will be applied.

When a Participant changes bonus plans during the First or Second Performance Period, any bonus payment will be calculated using the applicable bonus plan terms, metrics, and other features in effect for each bonus plan on a pro-rata basis.

**TIMING OF BONUS PAYMENTS** 

Two bonus payments are possible under this Plan. The first bonus payment, if performance targets are achieved, will occur after February 28<sup>th</sup> and will be based on 'On-Track' results for the First Performance Period. The second bonus payment, if performance targets are achieved, will occur following the conclusion of the fiscal year (i.e., after August 31<sup>st</sup>) and will be based on the Second Performance Period results.

The exact timing of bonus payments under the Plan depends on a variety of factors, which include items such as final verification of bonus goal achievement, payroll processing deadline dates and the completion of all administration and audit functions. Payment for any Performance Period will occur within 60 days of the end of the respective Performance Period.

University of Phoenix ~ Bonus Plan 3

------

**BONUS TARGETS** 

Bonus targets are stated as a percentage of base salary. The base salary in effect at the end of a Performance Period will be used to calculate the bonus, except when a Participant's bonus target percentage or position level changes during a Performance Period. In this case, the bonus payment for that Performance Period will be calculated by adding a pro-rata bonus using the bonus target percentage and base salary in a Participant's original position for the time period before the change and a pro-rata bonus using the bonus target percentage and base salary in a Participant's new position for the time period after the change, in each instance using the Participant's base salary and bonus target percentage in effect on the final date of each such Performance Period.

Any change to a Participant's bonus target must be approved per the Schedule of Executive Authority.

**GENERAL MATTERS** 

The University reserves the right to modify or terminate the Plan, in total or in part, at any time. Any such modification or termination must follow the same approval process that is noted in the PARTICIPANTS AND ELIGIBILITY section above.

The awarding of bonuses is discretionary, and management reserves the right to assess overall organization fiscal performance in the awarding of any bonus.

**APPEALS** 

Exceptions and appeals will be reviewed by the Human Resources Compensation Department. A recommendation will be given by the Vice President, Total Rewards to the University's Chief Human Resources Officer, who will render a final decision.

The University has the sole and exclusive authority to interpret and administer the Plan and its decisions are final.

**BONUS GOALS** 

Participants shall be eligible to earn a bonus payment under the Plan for each Performance Period based on the level of attainment, as determined by the University, of the bonus goals established by the University for that Performance Period. The bonus metrics and weightings are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **First Performance Period** | **First Performance Period** | **Second Performance Period** | **Second Performance Period** |
|  **35% of Annual Target** | **35% of Annual Target** | **100% of Annual Target less**<br> **payment for First Perf Period** | **100% of Annual Target less**<br> **payment for First Perf Period** |
| **EBITDA** | **Revenue** | **EBITDA** | **Revenue** |
|  50% | 50% | 50% | 50% |

---

University of Phoenix ~ Bonus Plan 4

------

Performance goals for threshold and target performance and metric definitions will be set for the First Performance Period and for the Second Performance Period and approved by the Compensation Committee.

**LEADERSHIP TEAM UPSIDE** 

Members of the University's Leadership Team are eligible to receive a bonus upside payout. The bonus upside payout is achieved when full-year performance exceeds target based on full-year performance of EBITDA or Revenue, weighted 50% and 50%, respectively. The upside will be paid out, if achieved, at the same time as the second payment in accordance with the provisions described in Timing of Bonus Payments above.

Note that from time to time, an upside gate in the form of a supplemental performance condition may be used to determine whether the bonus upside can be paid. This upside gate, if not achieved, would disallow any bonus upside payout from occurring regardless of whether full-year performance exceeds target for EBITDA or Revenue.

Performance goals for the upside gate, target and maximum performance, and metric definitions will be set and approved by the Compensation Committee.

**APPROVAL** 

Cheryl Naumann - SVP, Chief Human Resources Officer

University of Phoenix ~ Bonus Plan 5

------

**Definitions:** 

"Change in Control" means, the occurrence of either of the following: (i) (A) Apollo Management Holdings, L.P. and its Affiliates ("Apollo Holders") cease to be the beneficial owners, directly or indirectly, of a majority of the combined voting power of the University's outstanding securities; and (B) a person, entity or group other than the Apollo Holders becomes the direct or indirect beneficial owner of a percentage of the combined voting power of the University's outstanding securities that is greater than the percentage of the combined voting power of the University's outstanding securities beneficially owned directly or indirectly by the Apollo Holders; or (ii) a sale of all or substantially all of the assets of the University to a person, entity or group other than the Apollo Holders; provided, however, that a mere IPO or a merger or other acquisition or combination transaction after which the Apollo Holders retain control or shared control of the University, or have otherwise not sold or disposed of more than 50% of its investment in the University as of the Closing Date in exchange for cash or marketable securities, will not result in a Change in Control; provided, further, that, following an IPO, the above clause (i) shall be deleted and replaced with: "a person, entity or group other than Apollo and its Affiliates (the "Apollo Holders") becomes the beneficial owner, directly or indirectly of 35% or more of the combined voting power of the University's outstanding securities, and such combined voting power beneficially owned is greater than the percentage of the combined voting power of the University's outstanding securities beneficially owned directly or indirectly by the Apollo Holders."

University of Phoenix ~ Bonus Plan 6

## Exhibit 10.19

**Exhibit 10.19** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**DEFERRED COMPENSATION PLAN** 

The University of Phoenix, Inc. (the "**Company**"), hereby establishes the University of Phoenix, Inc. Deferred Compensation Plan (the "**Plan**"), effective January 1, 2021 (the "**Effective Date**"), for the purpose of attracting and retaining high quality executives, and promoting in them increased efficiency and an interest in the successful operation of the Company. The Plan is intended to, and shall be interpreted to, comply in all respects with Code Section 409A and those provisions of ERISA applicable to an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of "management or highly compensated employees."

**ARTICLE I** 

**<u>DEFINITIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "**401(k) Refund Offset Amount**" shall mean, for any particular Plan Year, an amount of Base Salary, if any, that is equal to the gross amount that is refunded to a Participant under a plan qualified pursuant to Code Section 401(k) during a Plan Year as a result of such qualified plan's nondiscrimination testing for the prior Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "**Account**" or "**Accounts**" shall mean the bookkeeping account or accounts established under this Plan pursuant to Article IV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "**Base Salary**" shall mean a Participant's annual base salary, excluding incentive and discretionary bonuses, commissions, reimbursements and other non-regular remuneration, received from the Company prior to reduction for any salary deferrals under benefit plans sponsored by the Company, including but not limited to, plans established pursuant to Code Section 125 or qualified pursuant to Code Section 401(k).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "**Beneficiary**" or "**Beneficiaries**" shall mean the person, persons or entity designated as such pursuant to Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Board**" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "**Bonus(es)**" shall mean amounts paid to the Participant by the Company in the form of discretionary or annual incentive compensation or any other bonus designated by the Committee, before reductions for contributions to or deferrals under any pension, deferred compensation or benefit plans sponsored by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "**Change in Control Event**" means a "change in the ownership," "change in effective control," or "change in the ownership of a substantial portion of the assets," as determined in accordance with Treas. Reg. § 1.409A-3(i)(5), including without limitation the identification of the relevant corporation to which a "change in control event" must relate under Treas. Reg. § 1.409A-3(i)(5)(ii).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**Code**" shall mean the Internal Revenue Code of 1986, as amended, as interpreted by Treasury regulations and applicable authorities promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**Committee**" shall mean the person or persons appointed by the Board to administer the Plan in accordance with Article IX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "**Company Contributions**" shall mean the contributions made by the Company pursuant to Section 3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**Company Contribution Account**" shall mean the Account maintained for the benefit of the Participant that is credited with Company Contributions, if any, pursuant to Section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "**Compensation**" shall mean all amounts eligible for deferral for a particular Plan Year under Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "**Crediting Rate**" shall mean the notional gains and losses credited on the Participant's Account balance that are based on the Participant's choice among the investment alternatives made available by the Committee pursuant to Section 3.4 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "**Deferral Account**" shall mean an Account maintained for each Participant that is credited with Participant deferrals pursuant to Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "**Disability**" or "**Disabled**" shall mean (consistent with the requirements of Code Section 409A) that the Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant's Employer. For purposes of this Plan, a Participant shall be Disabled if (a) determined to be totally disabled by the Social Security Administration, or (b) determined to be disabled in accordance with the applicable disability insurance program of such Participant's Employer, provided that the definition of "disability" applied under such disability insurance program complies with the requirements of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Distributable Amount**" shall mean the vested balance in the applicable Account as determined under Article IV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "**Eligible Executive**" shall mean a highly compensated or management level employee of an Employer selected by the Committee to be eligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 **"Employer(s)**" shall be defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in part (b) of this Section, the term "Employer" shall mean the Company and/or any of its subsidiaries or affiliates (now in existence or hereafter formed or acquired) that have been selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the purpose of determining whether a Participant has experienced a Separation from Service, the term "Employer" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The entity for which the Participant performs services and with respect to which the legally binding right to compensation deferred or contributed under this Plan arises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All other entities with which the entity described above would be aggregated and treated as a single employer under Code Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of trades or businesses, whether or not incorporated, under common control), as applicable. In order to identify the group of entities described in the preceding sentence, the Committee shall use an ownership threshold of at least 50% as a substitute for the 80% minimum ownership threshold that appears in, and otherwise must be used when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code Section 414(b), and (B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under Code Section 414(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**ERISA**" shall mean the Employee Retirement Income Security Act of 1974, as amended, including Department of Labor and Treasury regulations and applicable authorities promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "**Financial Hardship**" shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant's spouse, or a dependent (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B))) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, but shall in all events correspond to the meaning of the term "unforeseeable emergency" under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "**Fund**" or "**Funds**" shall mean one or more of the investments selected by the Committee pursuant to Section 3.4 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**Hardship Distribution**" shall mean an accelerated distribution of benefits or a cancellation of deferral elections pursuant to Section 6.5 to a Participant who has suffered a Financial Hardship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "**Interest Rate**" shall mean, for each Fund, the rate of return derived from the net gain or loss on the assets of such Fund, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "**Participant**" shall mean any Eligible Executive who becomes a Participant in this Plan in accordance with Article II.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "**Participant Election(s)**" shall mean the forms or procedures by which a Participant makes elections with respect to (a) voluntary deferrals of his/her Compensation, (b) the Funds, which shall act as the basis for crediting of interest on Account balances, and (c) the form and timing of distributions from Accounts. Participant Elections may take the form of an electronic communication followed by appropriate confirmation according to specifications established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**Payment Date**" shall mean the date by which a total distribution of the Distributable Amount shall become payable or the date by which installment payments of the Distributable Amount shall commence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For benefits triggered by the Participant's Separation from Service, the Payment Date shall be the first business day of the seventh month directly following the month in which the Separation from Service occurs, and the applicable amount shall be calculated as of the last business day of the sixth month following the month in which the Separation from Service occurs. Subsequent installments, if any, shall be made in January of each Plan Year following the Plan Year in which the initial installment payment was payable and shall be calculated as of the last business day of the preceding December.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For benefits triggered by (i) the death of a Participant or (ii) the Disability of a Participant prior to Separation from Service, the Payment Date shall be the first business day of the month commencing after the month in which the event triggering the payout occurs, and the applicable amount shall be calculated as of the last business day of the month in which the event triggering the payout occurs. In the case of death, the Committee shall be provided with documentation reasonably necessary to establish the fact of the Participant's death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Payment Date of a Scheduled Distribution shall be the first business day of January of the Plan Year in which the distribution is scheduled to commence, and the applicable Distributable Amount shall be calculated as of the last business day of the preceding December. Subsequent installments, if any, shall be calculated as of the last business day of December of each succeeding Plan Year after the initial calculation, and shall be made in January of each Plan Year following the Plan Year in which the initial installment payment was payable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the benefit triggered by a Change in Control Event, if applicable, the Payment Date shall be the first business day of the month commencing after the month in which the Change in Control Event occurs, and the applicable amount shall be calculated as of the last business day of the month in which the Change in Control Event occurs.

Payments may be made prior to or following the applicable Payment Date, provided such payments are made in accordance with Code Section 409A, including without limitation Treas. Reg. §1.409A-3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**Performance-Based Compensation**" shall mean compensation the entitlement to or amount of which is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months, as determined by the Committee in accordance with Treas. Reg. §1.409A-1(e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "**Plan Year**" shall mean the calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "**Scheduled Distribution**" shall mean a scheduled distribution date elected by the Participant for distribution of amounts from the Deferral Account, including notional earnings thereon, as provided under Section 6.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "**Separation from Service**" shall mean a termination of services provided by a Participant to his or her Employer, whether voluntarily or involuntarily, other than by reason of death or Disability, as determined by the Committee in accordance with Treas. Reg. §1.409A-1(h). In determining whether a Participant has experienced a Separation from Service, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For a Participant who provides services to an Employer as an employee, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur when such Participant has experienced a termination of employment with such employer. A Participant shall be considered to have experienced a termination of employment when the facts and circumstances indicate that the Participant and his or her employer reasonably anticipate that either (i) no further services will be performed for the employer after a certain date, or (ii) that the level of bona fide services the Participant will perform for the employer after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by such Participant (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the employer if the Participant has been providing services to the Employer less than 36 months).

If a Participant is on military leave, sick leave, or other bona fide leave of absence, the employment relationship between the Participant and the Employer shall be treated as continuing intact, provided that the period of such leave does not exceed 6 months, or if longer, so long as the Participant retains a right to reemployment with the Employer under an applicable statute or by contract. If the period of a military leave, sick leave, or other bona fide leave of absence exceeds 6 months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Plan as of the first day immediately following the end of such 6-month period. In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For a Participant, if any, who provides services to an Employer as an independent contractor, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur upon the expiration of the contract (or in the case of more than one contract, all contracts) under which services are performed for such Employer, provided that the expiration of such contract(s) is determined by the Committee to constitute a good-faith and complete termination of the contractual relationship between the Participant and such Employer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For a Participant, if any, who provides services to an Employer as both an employee and an independent contractor, a Separation from Service generally shall not occur until the Participant has ceased providing services for such Employer as both an employee and as an independent contractor, as determined in accordance with the provisions set forth in parts (a) and (b) of this Section, respectively.

Notwithstanding the foregoing provisions in this part (c), if a Participant provides services for an Employer as both an employee and as a member of the Board, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the services provided by such Participant as a member of the Board shall not be taken into account in determining whether the Participant has experienced a Separation from Service as an employee, and the services provided by such Participant as an employee shall not be taken into account in determining whether the Participant has experienced a Separation from Service as a member of the Board.

**ARTICLE II** 

**<u>PARTICIPATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Enrollment Requirements; Commencement of Participation</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition to participation, each Eligible Executive shall complete, execute and return to the Committee the appropriate Participant Elections, as well as such other documentation and information as the Committee reasonably requests, by the deadline(s) established by the Committee. In addition, the Committee shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Eligible Executive shall commence participation in the Plan on the date that the Committee determines that the Eligible Executive has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an Eligible Executive fails to meet all requirements established by the Committee within the period required, that Eligible Executive shall not be eligible to participate in the Plan during such Plan Year.

**ARTICLE III** 

**<u>CONTRIBUTIONS & DEFERRAL ELECTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Elections to Defer Compensation</u>. Elections to defer Compensation shall take the form of a whole percentage of up to a <u>maximum</u> of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 80% of Base Salary and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 80% of Bonuses.

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The Committee may, in its sole discretion, adjust for subsequent Plan Years on a prospective basis the maximum deferral percentages described in this Section for one or more types of Compensation (including, without limitation, for particular types of Bonuses) and for one or more subsequent Plan Years; such revised maximum deferral percentages shall be indicated on a Participant Election form approved by the Committee. Notwithstanding the foregoing, in no event shall the maximum deferral percentages be adjusted after the last date on which deferral elections for the applicable type(s) of Compensation must be submitted and become irrevocable in accordance with Section 3.2 below and the requirements of Code Section 409A.

In addition to the deferral types described above, the Committee may permit a Participant to make a 401(k) Refund Offset Amount election for a Plan Year, in accordance with the deferral election timing requirements in Section 3.2 below and as further described in a Participant Election form. By way of example, the Committee may permit a Participant to elect to defer a 401(k) Refund Offset Amount for the 2022 Plan Year by submitting an election no later than December 31, 2021; such election would provide for an additional deferral of Base Salary in 2022 equal to any refund amount that is distributed to the Participant during the 2022 Plan Year from a plan qualified pursuant to Code Section 401(k).

Notwithstanding the foregoing, the Committee may determine that one or more types of Compensation shall not be made available for deferral for one or more subsequent Plan Years and, consistent with such determination, the impacted types of Compensation shall not appear on a Participant Election form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Timing of Deferral Elections; Effect of Participant Election(s).</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Timing Rule for Deferral Elections</u>. Except as otherwise provided in this Section 3.2, in order for a Participant to make a valid election to defer Compensation, the Participant must submit Participant Election(s) on or before the deadline established by the Committee, which shall be no later than the December 31<sup>st</sup> preceding the Plan Year in which such compensation will be earned.

Any deferral election made in accordance with this Section 3.2(a) shall be irrevocable; provided, however, that if the Committee permits or requires Participants to make a deferral election by the deadline described above for an amount that qualifies as Performance-Based Compensation, the Committee may permit a Participant to subsequently change his or her deferral election for such compensation by submitting new Participant Election(s) in accordance with Section 3.2(d) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Timing of Deferral Elections for New Plan Participants.</u> An Eligible Executive who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year, as determined in accordance with Treas. Reg. §1.409A-2(a)(7)(ii) and the "plan aggregation" rules provided in Treas. Reg. §1.409A-1(c)(2), may be permitted to make an election to defer the portion of Compensation attributable to services to be performed after such election, provided that the Participant submits Participant Election(s) on or before the deadline established by the Committee, which in no event shall be later than thirty (30) days after the Participant first becomes eligible to participate in the Plan.

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If a deferral election made in accordance with this Section 3.2(b) relates to compensation earned based upon a specified performance period, the amount eligible for deferral shall be equal to (i) the total amount of compensation for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant's deferral election is made, and the denominator of which is the total number of days in the performance period.

Any deferral election made in accordance with this Section 3.2(b) shall become irrevocable no later than the 30<sup>th</sup> day after the date the Participant first becomes eligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Timing of Deferral Elections for Fiscal Year Compensation</u>. In the event that the fiscal year of an Employer is different than the taxable year of a Participant, the Committee may determine that a deferral election may be made for "fiscal year compensation" (as defined below), by submitting Participant Election(s) on or before the deadline established by the Committee, which in no event shall be later than the last day of the Employer's fiscal year immediately preceding the fiscal year in which the services related to such compensation will begin to be performed. For purposes of this Section, the term "fiscal year compensation" shall only include a Bonus relating to a service period coextensive with one or more consecutive fiscal years of the Employer, of which no amount is paid or payable during the Employer's fiscal year(s) that constitute the service period.

A deferral election made in accordance with this Section 3.2(c) shall be irrevocable; provided, however, that if the Committee permits or requires Participants to make a deferral election by the deadline described in this Section 3.2(c) for an amount that qualifies as Performance-Based Compensation, the Committee may permit a Participant to subsequently change his or her deferral election for such compensation by submitting new Participant Election(s) in accordance with 3.2(d) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Timing of Deferral Elections for Performance-Based Compensation</u>. Subject to the limitations described below, the Committee may determine that an irrevocable deferral election for an amount that qualifies as Performance-Based Compensation may be made by submitting Participant Election(s) on or before the deadline established by the Committee, which in no event shall be later than six (6) months before the end of the performance period.

In order for a Participant to be eligible to make a deferral election for Performance-Based Compensation in accordance with the deadline established pursuant to this Section 3.2(d), the Participant must have performed services continuously from the later of (i) the beginning of the performance period for such compensation, or (ii) the date upon which the performance criteria for such compensation are established, through the date upon which the Participant makes the deferral election for such compensation. In no event shall a deferral election submitted under this Section 3.2(d) be permitted to apply to any amount of Performance-Based Compensation that has become readily ascertainable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Timing Rule for Deferral of Compensation Subject to Risk of Forfeiture</u>. With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the Participant's continued services for a period of at least twelve (12) months from the date the Participant obtains

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the legally binding right, the Committee may determine that an irrevocable deferral election for such compensation may be made by timely delivering Participant Election(s) to the Committee in accordance with its rules and procedures, no later than the 30<sup>th</sup> day after the Participant obtains the legally binding right to the compensation, provided that the election is made at least twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse, as determined in accordance with Treas. Reg. §1.409A-2(a)(5).

Any deferral election(s) made in accordance with this Section 3.2(e) shall become irrevocable no later than the 30<sup>th</sup> day after the Participant obtains the legally binding right to the compensation subject to such deferral election(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Separate Deferral Elections for Each Plan Year</u>. In order to defer Compensation for a Plan Year, a Participant must submit a separate deferral election with respect to Compensation for such Plan Year by affirmatively filing a Participant Election during the enrollment period established by the Committee prior to the beginning of such Plan Year (or at such other time contemplated under this Section 3.2), which election shall be effective on the first day of the next following Plan Year (unless otherwise specified on the Participant Election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Company Contributions</u>. The Company shall have the discretion to make Company Contributions to the Plan at any time and in any amount on behalf of any Participant. Company Contributions shall be made in the complete and sole discretion of the Company and no Participant shall have the right to receive any Company Contribution in any particular Plan Year regardless of whether Company Contributions were made on behalf the Participant in prior Plan Years or whether Company Contributions are made on behalf of other Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Investment Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Participant Designation</u>. At the time of entering the Plan and/or of making a deferral election under the Plan, the Participant shall designate, on a Participant Election provided by the Committee, the Funds in which the Participant's Accounts shall be deemed to be invested for purposes of determining the amount of earnings and losses to be credited to each Account. The Participant may specify that all or any percentage of his or her Accounts shall be deemed to be invested, in whole percentage increments, in one or more of the Funds selected as alternative investments under the Plan from time to time by the Committee pursuant to subsection (b) of this Section. If a Participant fails to make an election among the Funds as described in this section, the Participant's Account balance shall automatically be allocated into a Fund determined by the Committee in its sole discretion. A Participant may change any designation made under this Section as permitted by the Committee by filing a revised election, on a Participant Election provided by the Committee. Notwithstanding the foregoing, the Committee, in its sole discretion, may impose limitations on the frequency with which one or more of the Funds elected in accordance with this Section may be added or deleted by such Participant; furthermore, the Committee, in its sole discretion, may impose limitations on the frequency with which the Participant may change the portion of his or her Account balance allocated to each previously or newly elected Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Investment Funds</u>. The Committee may select, in its sole and absolute discretion, each of the types of commercially available investments communicated to the Participant pursuant to subsection (a) of this Section to be the Funds. The Interest Rate of each such commercially available investment shall be used to determine the amount of earnings or losses to be credited to the Participant's Account under Article IV. The Participant's choice among investments shall be solely for purposes of calculation of the Crediting Rate on Accounts. The Company and the Employers shall have no obligation to set aside or invest amounts as directed by the Participant and, if the Company and/or the Employer elects to invest amounts as directed by the Participant, the Participant shall have no more right to such investments than any other unsecured general creditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Distribution Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Election</u>. At the time of making a deferral election under the Plan, the Participant shall designate the time and form of distribution of deferrals and Company Contributions, if any, made pursuant to such election (together with any earnings credited thereon and less any losses debited therefrom) from among the alternatives specified under Article VI for the applicable distribution. Except for the election regarding distribution upon a Change in Control Event pursuant to Section 6.6, distribution elections for a given Plan Year shall relate solely to that Plan Year. A new distribution election may be made at the time of subsequent deferral elections with respect to deferrals and Company Contributions, if applicable, for the Plan Year beginning after the election is made, in accordance with the Participant Election forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Modification of Election</u>. A distribution election with respect to previously deferred amounts may only be changed under the terms and conditions specified in Code Section 409A and this Section. Except as permitted under Code Section 409A, no acceleration of a distribution is permitted. A subsequent election that delays payment or changes the form of payment for a Plan Year applicable upon the Participant's Separation from Service or as a Scheduled Distribution shall be permitted <u>if and only if</u> all of the following requirements are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the new election does not take effect until at least twelve (12) months after the date on which the new election is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the new election delays payment for at least five (5) years from the date that payment would otherwise have been made or commenced, absent the new election; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of payments made according to a Scheduled Distribution, the new election is made not less than twelve (12) months before the date on which payment would have been made (or, in the case of installment payments, the first installment payment would have been made) absent the new election.

For purposes of application of the above change limitations, installment payments shall be treated as a single payment under Code Section 409A. Only one (1) change shall be allowed to be made by a Participant with respect to each Plan Year's election as to the benefits to be received by such Participant upon Separation from Service. No modifications may be made to the election relating to distribution upon a Change in Control Event provided under Section 6.6. Election changes made pursuant to this Section shall be made in accordance with rules established by the Committee and shall comply with all requirements of Code Section 409A and applicable authorities.

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**ARTICLE IV** 

**<u>ACCOUNTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Deferral Accounts</u>. The Committee shall establish and maintain a Deferral Account for each Participant under the Plan. Each Participant's Deferral Account shall be further divided into separate subaccounts ("Fund Subaccounts"), each of which corresponds to a Fund designated pursuant to Section 3.4. A Participant's Deferral Account shall be credited as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as reasonably practicable after amounts are withheld and deferred from a Participant's Compensation, the Committee shall credit the Fund Subaccounts of the Participant's Deferral Account with an amount equal to Compensation deferred by the Participant in accordance with the designation under Section 3.4; that is, the portion of the Participant's deferred Compensation designated to be deemed to be invested in a Fund shall be credited to the Fund Subaccount to be invested in that Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each business day, each Fund Subaccount of a Participant's Deferral Account shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such Fund Subaccount as of the prior day, less any distributions valued as of the end of the prior day, by the Interest Rate for the corresponding Fund as determined by the Committee pursuant to Section 3.4(b); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that a Participant elects for a given Plan Year's deferral of Compensation a Scheduled Distribution, all amounts attributed to the deferral of Compensation for such Plan Year shall be accounted for in a manner which allows separate accounting for the deferral of Compensation and investment gains and losses associated with amounts allocated to each such separate Scheduled Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Company Contribution Account</u>. The Committee shall establish and maintain a Company Contribution Account for each Participant under the Plan. Each Participant's Company Contribution Account shall be further divided into separate Fund Subaccounts corresponding to the Fund designated pursuant to Section 3.4(a). A Participant's Company Contribution Account shall be credited as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as reasonably practicable after a Company Contribution is made, the Company shall credit the Fund Subaccounts of the Participant's Company Contribution Account with an amount equal to the Company Contributions, if any, made on behalf of that Participant, that is, the proportion of the Company Contributions, if any, designated to be deemed to be invested in a certain Fund shall be credited to the Fund Subaccount to be invested in that Fund; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each business day, each Fund Subaccount of a Participant's Company Contribution Account shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such Fund Subaccount as of the prior day, less any distributions valued as of the end of the prior day, by the Interest Rate for the corresponding Fund as determined by the Committee pursuant to Section 3.4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Trust</u>. The Company shall be responsible for the payment of all benefits under the Plan. At its discretion, the Company may establish one or more grantor trusts for the purpose of providing for payment of benefits under the Plan. Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of the Company's creditors. Benefits paid to the Participant from any such trust or trusts shall be considered paid by the Company for purposes of meeting the obligations of the Company under the Plan.

**ARTICLE V** 

**<u>VESTING</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Vesting of Deferral Accounts</u>. The Participant shall be vested at all times in amounts credited to the Participant's Deferral Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Vesting of Company Contribution Account</u>. Amounts credited to the Participant's Company Contribution Account shall be vested based upon the schedule or schedules determined by the Company in its sole discretion and communicated to the Participant.

**ARTICLE VI** 

**<u>DISTRIBUTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Separation from Service Distributions</u>. Except as otherwise provided herein, in the event of a Participant's Separation from Service, the Distributable Amount credited to the Participant's Deferral Account and Company Contribution Account shall be paid to the Participant in a lump sum on the Payment Date following the Participant's Separation from Service, unless the Participant has made an alternative benefit election on a timely basis to receive substantially equal annual installments over up to ten (10) years. In accordance with a Participant Election approved by the Committee, for each Plan Year the Participant may elect a separate form of distribution applicable upon Separation from Service for the deferrals and Company Contributions, if any, attributable to such Plan Year. A Participant may delay and/or change the form of payment applicable upon Separation from Service for each Plan Year one (1) time, provided such revised election complies with the requirements of Section 3.5.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Disability Distributions</u>. Except as otherwise provided herein, in the event of a Participant's Disability prior to Separation from Service, the Distributable Amount credited to the Participant's Deferral Account and Company Contribution Account shall be paid to the Participant in a lump sum on the Payment Date following the Participant's Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Death Benefits</u>. Notwithstanding any provision in this Plan to the contrary, in the event that the Participant dies prior to complete distribution of his or her Accounts under the Plan, the Participant's Beneficiary shall receive a death benefit equal to the Distributable Amount (or remaining Distributable Amount in the event installment payments have commenced) credited to the Participant's Deferral Account and Company Contribution Account in a lump sum on the Payment Date following the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Scheduled Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Scheduled Distribution Election</u>. Participants shall be entitled to elect to receive a Scheduled Distribution from the Deferral Account. In the case of a Participant who has elected to receive a Scheduled Distribution, on the applicable Payment Date such Participant shall receive the Distributable Amount with respect to the applicable Plan Year's deferrals, including earnings credited thereon and less losses debited therefrom, which have been elected by the Participant to be subject to such Scheduled Distribution election in accordance with Section 3.5 of the Plan. The Committee shall determine the earliest commencement date that may be elected by the Participant for each Scheduled Distribution and such date shall be indicated on the Participant Election. The Participant may elect to receive the Scheduled Distribution in a single lump sum or substantially equal annual installments over a period of up to five (5) years. A Participant may delay and/or change the form of a Scheduled Distribution, provided such revised election complies with the requirements of Section 3.5. By way of clarification, the Company Contribution Account shall <u>not</u> be distributable as a Scheduled Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Relationship to Other Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event of a Participant's Separation from Service, Disability or death <u>prior to</u> the initial Payment Date for a Scheduled Distribution, such Scheduled Distribution shall <u>not</u> be distributed under this Section 6.4, but rather shall be distributed in accordance with the other applicable Section of this Article VI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event of a Participant's Separation from Service or Disability <u>after</u> one or more Scheduled Distributions has commenced installment payments on the applicable Payment Date, such Scheduled Distribution(s) shall continue to be paid at the same time and in the same form as if the Separation from Service or Disability, as applicable, had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event of a Participant's death <u>after</u> one or more Scheduled Distributions has commenced installment payments on the applicable Payment Date, the remaining Distributable Amount of such Scheduled Distribution(s) shall be distributed in accordance with Section 6.3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event a Participant has elected to receive a distribution upon a Change in Control Event in accordance with Section 6.6 below and a Change in Control Event occurs prior to complete distribution of the Participant's Deferral Account, any Scheduled Distribution(s) (or the remaining portion thereof if installments have commenced) shall be distributed in accordance with Section 6.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Hardship Distributions</u>. Upon a finding that the Participant has suffered a Financial Hardship in accordance with Code Section 409A, the Committee may, at the request of the Participant, accelerate distribution of benefits and/or approve cancellation of deferral elections under the Plan, subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The request to take a Hardship Distribution shall be made by filing a form with the Committee prior to the end of any calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon a finding that the Participant has suffered a Financial Hardship in accordance with Treasury Regulations promulgated under Code Section 409A, the Committee may, at the request of the Participant, accelerate distribution of benefits and/or approve cancellation of current deferral elections under the Plan in the amount reasonably necessary to alleviate such Financial Hardship. The amount distributed pursuant to this Section with respect to the Financial Hardship shall not exceed the amount necessary to satisfy such Financial Hardship, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The amount (if any) determined by the Committee as a Hardship Distribution shall be paid in a single cash lump sum as soon as practicable after the end of the calendar month in which the Hardship Distribution determination is made by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Change in Control Event Distribution</u>. A Participant may submit an irrevocable election upon his or her commencement of participation in the Plan to receive a distribution upon the occurrence of a Change in Control Event. If so elected, then upon the occurrence of a Change in Control Event the entire Distributable Amount credited to the Participant's Deferral Account and Company Contribution Account (or remaining Distributable Amount if the Change in Control occurs following commencement of installment payments) shall be payable to the Participant in a lump sum on the Payment Date for the Change in Control Event distribution, without regard to the Participant's other distribution elections. If no election is submitted, the Participant will be deemed to have elected to have his or her Accounts remain in the Plan and not be distributable upon a Change in Control Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Limited Cashouts</u>. Notwithstanding any provision in this Plan to the contrary, the Committee may, in its sole discretion, distribute in a mandatory lump sum any Participant's entire Deferral Account and/or Company Contribution Account under the Plan, provided that any such distribution is made in accordance with the requirements of Treas. Reg. §1.409A-3(j)(4)(v) or its successor (each such payment, a "<u>Limited Cashout</u>"). Specifically, any such Limited Cashout pursuant to this Section 6.7 shall be subject to the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee's exercise of discretion to make the Limited Cashout shall be evidenced in writing no later than the date of the lump sum payment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The lump sum payment shall result in the termination and liquidation of the entirety of the Participant's Deferral Account and/or Company Contribution Account under the Plan, as applicable, as well as the Participant's interest in all other plans, agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treas. Reg. §1.409A–1(c)(2) with the Account(s) that is being distributed from this Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The lump sum payment (and the Participant's entire interest in any and all other "plans" that would be aggregated with the Account(s) being distributed from this Plan in accordance with Treas. Reg. §1.409A–1(c)(2)) is not greater than the applicable dollar amount under Code Section 402(g)(1)(B) at the time of the Limited Cashout.

Any such Limited Cashout shall be calculated as of the last business day of the month in which the Committee's determination to make the Limited Cashout occurs, and such lump sum payment shall be made within sixty (60) days following such determination.

**ARTICLE VII** 

**<u>PAYEE DESIGNATIONS AND LIMITATIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Beneficiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Beneficiary Designation</u>. The Participant shall have the right, at any time, to designate any person or persons as Beneficiary (both primary and contingent) to whom payment under the Plan shall be made in the event of the Participant's death. If the Participant names someone other than his or her spouse as a Beneficiary, the Committee may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Committee, executed by such Participant's spouse and returned to the Committee. The Beneficiary designation shall be effective when it is submitted to and acknowledged by the Committee during the Participant's lifetime in the format prescribed by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Absence of Valid Designation</u>. If a Participant fails to designate a Beneficiary as provided above, or if every person designated as Beneficiary predeceases the Participant or dies prior to complete distribution of the Participant's benefits, then the Committee shall deem the Participant's estate to be the Beneficiary and shall direct the distribution of such benefits to the Participant's estate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Payments to Minors</u>. In the event any amount is payable under the Plan to a minor, payment shall not be made to the minor, but instead such payment shall be made (a) to that person's living parent(s) to act as custodian, (b) if that person's parents are then divorced, and one parent is the sole custodial parent, to such custodial parent, to act as custodian, or (c) if no parent of that person is then living, or that person's parents are then divorced and neither is the sole custodial parent, to a custodian selected by the Committee to hold the funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides. If no parent is living and the Committee decides not to select another custodian to hold the funds for the minor, then payment shall be made to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian of the estate for the minor is duly appointed and currently acting within sixty (60) days after the date the amount becomes payable, payment shall be deposited with the court having jurisdiction over the estate of the minor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Payments on Behalf of Persons Under Incapacity</u>. In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee, is considered by reason of physical or mental condition to be unable to give a valid receipt therefore, the Committee may direct that such payment be made to any person found by the Committee, in its sole judgment, to have assumed the care of such person. Any payment made pursuant to such determination shall constitute a full release and discharge of any and all liability of the Committee and the Company under the Plan.

**ARTICLE VIII** 

**<u>LEAVE OF ABSENCE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Paid Leave of Absence</u>. If a Participant is authorized by the Participant's Employer to take a paid leave of absence from the employment of the Employer, and such leave of absence does not constitute a Separation from Service, (a) the Participant shall continue to be considered eligible for the benefits provided under the Plan, and (b) deferrals shall continue to be withheld during such paid leave of absence in accordance with Article III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Unpaid Leave of Absence.</u> If a Participant is authorized by the Participant's Employer to take an unpaid leave of absence from the employment of the Employer for any reason, and such leave of absence does not constitute a Separation from Service, such Participant shall continue to be eligible for the benefits provided under the Plan. During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections. However, if the Participant returns to employment, the Participant may elect to defer for the Plan Year following his or her return to employment and for every Plan Year thereafter while a Participant in the Plan, provided such deferral elections are otherwise allowed and a Participant Election is delivered to and accepted by the Committee for each such election in accordance with Article III above.

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**ARTICLE IX** 

**<u>ADMINISTRATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Committee</u>. The Plan shall be administered by a Committee appointed by the Board, which shall have the exclusive right and full discretion (a) to appoint agents to act on its behalf, (b) to select and establish Funds, (c) to interpret the Plan, (d) to decide any and all matters arising hereunder (including the right to remedy possible ambiguities, inconsistencies, or admissions), (e) to make, amend and rescind such rules as it deems necessary for the proper administration of the Plan and (f) to make all other determinations and resolve all questions of fact necessary or advisable for the administration of the Plan, including determinations regarding eligibility for benefits payable under the Plan. All interpretations of the Committee with respect to any matter hereunder shall be final, conclusive and binding on all persons affected thereby. No member of the Committee or agent thereof shall be liable for any determination, decision, or action made in good faith with respect to the Plan. The Company will indemnify and hold harmless the members of the Committee and its agents from and against any and all liabilities, costs, and expenses incurred by such persons as a result of any act, or omission, in connection with the performance of such persons' duties, responsibilities, and obligations under the Plan, other than such liabilities, costs, and expenses as may result from the bad faith, willful misconduct, or criminal acts of such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Claims Procedure</u>. Any Participant, former Participant or Beneficiary may file a written claim with the Committee setting forth the nature of the benefit claimed, the amount thereof, and the basis for claiming entitlement to such benefit. The Committee shall determine the validity of the claim and communicate a decision to the claimant promptly and, in any event, not later than ninety (90) days after the date of the claim. The claim may be deemed by the claimant to have been denied for purposes of further review described below in the event a decision is not furnished to the claimant within such ninety (90) day period. If additional information is necessary to make a determination on a claim, the claimant shall be advised of the need for such additional information within forty-five (45) days after the date of the claim. The claimant shall have up to one hundred eighty (180) days to supplement the claim information, and the claimant shall be advised of the decision on the claim within forty-five (45) days after the earlier of the date the supplemental information is supplied or the end of the one hundred eighty (180) day period. Every claim for benefits which is denied shall be denied by written notice setting forth in a manner calculated to be understood by the claimant (a) the specific reason or reasons for the denial, (b) specific reference to any provisions of the Plan (including any internal rules, guidelines, protocols, criteria, etc.) on which the denial is based, (c) description of any additional material or information that is necessary to process the claim, and (d) an explanation of the procedure for further reviewing the denial of the claim and shall include an explanation of the claimant's right to submit the claim for binding arbitration in the event of an adverse determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Review Procedures</u>. Within sixty (60) days after the receipt of a denial on a claim, a claimant or his/her authorized representative may file a written request for review of such denial. Such review shall be undertaken by the Committee and shall be a full and fair review. The claimant shall have the right to review all pertinent documents. The Committee shall issue a decision not later than sixty (60) days after receipt of a request for review from a claimant unless special circumstances, such as the need to hold a hearing, require a longer period of time, in which case a decision shall be rendered as soon as possible but not later than one hundred twenty (120) days after receipt of the claimant's request for review. The decision on review shall be in writing and shall include specific reasons for the decision written in a manner calculated to be understood by the claimant with specific reference to any provisions of the Plan on which the decision is based and shall include an explanation of the claimant's right to submit the claim for binding arbitration in the event of an adverse determination on review.

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**ARTICLE X** 

**<u>MISCELLANEOUS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Termination of Plan</u>. Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that any Employer will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the right to terminate the Plan with respect to all of its Participants at any time. In the event of a Plan termination, no new deferral elections shall be permitted for the affected Participants and such Participants shall no longer be eligible to receive new Company Contributions. However, after the Plan termination the Account balances of such Participants shall continue to be credited with deferrals attributable to any deferral election that was in effect prior to the Plan termination to the extent deemed necessary to comply with Code Section 409A and related Treasury Regulations, and additional amounts shall continue to be credited or debited to such Participants' Account balances pursuant to Article IV. In addition, following a Plan termination, Participant Account balances shall remain in the Plan and shall not be distributed until such amounts become eligible for distribution in accordance with the other applicable provisions of the Plan. Notwithstanding the preceding sentence, to the extent permitted by Treas. Reg. §1.409A-3(j)(4)(ix) or as otherwise permitted under Code Section 409A, the Employer may provide that upon termination of the Plan, all Account balances of the Participants shall be distributed, subject to and in accordance with any rules established by such Employer deemed necessary to comply with the applicable requirements and limitations of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Amendment</u>. Any Employer may, at any time, amend or modify the Plan in whole or in part with respect to that Employer. Notwithstanding the foregoing, no amendment or modification shall be effective to decrease the value of a Participant's vested Account balance in existence at the time the amendment or modification is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Unsecured General Creditor</u>. The benefits paid under the Plan shall be paid from the general assets of the Company, and the Participant and any Beneficiary or their heirs or successors shall be no more than unsecured general creditors of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder. It is the intention of the Company that this Plan be unfunded for purposes of ERISA and the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Restriction Against Assignment</u>. The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or entity. No part of a Participant's Accounts shall be liable for the debts, contracts, or engagements of any Participant, Beneficiary, or their successors in interest, nor shall a Participant's Accounts be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever. No part of a Participant's Accounts shall be subject to any right of offset against or reduction for any amount payable by the Participant or Beneficiary, whether to the Company or any other party, under any arrangement other than under the terms of this Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Withholding</u>. The Participant shall make appropriate arrangements with the Company for satisfaction of any federal, state or local income tax withholding requirements, Social Security and other employee tax or other requirements applicable to the granting, crediting, vesting or payment of benefits under the Plan. There shall be deducted from each payment made under the Plan or any other Compensation payable to the Participant (or Beneficiary) all taxes that are required to be withheld by the Company in respect to such payment or this Plan. To the extent permissible under Code Section 409A, the Company shall have the right to reduce any payment (or other Compensation) by the amount of cash sufficient to provide the amount of said taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Code Section</u> <u>409A</u>. The Company intends that the Plan comply with the requirements of Code Section 409A (and all applicable Treasury Regulations and other guidance issued thereunder) and shall be operated and interpreted consistent with that intent. Notwithstanding the foregoing, the Company makes no representation that the Plan complies with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Effect of Payment</u>. Any payment made in good faith to a Participant or the Participant's Beneficiary shall, to the extent thereof, be in full satisfaction of all claims against the Committee, its members, the Employer and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Errors in Account Statements, Deferrals or Distributions</u>. In the event an error is made in an Account statement, such error shall be corrected on the next statement following the date such error is discovered. In the event of an operational error, including, but not limited to, errors involving deferral amounts, overpayments or underpayments, such operational error shall be corrected in a manner consistent with and as permitted by any correction procedures established under Code Section 409A. If any portion of a Participant's Account(s) under this Plan is required to be included in income by the Participant prior to receipt due to a failure of this Plan to comply with the requirements of Code Section 409A, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of (i) the portion of his or her Account required to be included in income as a result of the failure of the Plan to comply with the requirements of Code Section 409A, or (ii) the unpaid vested Account balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Domestic Relations Orders</u>. Notwithstanding any provision in this Plan to the contrary, in the event that the Committee receives a domestic relations order, as defined in Code Section 414(p)(1)(B), pursuant to which a court has determined that a spouse or former spouse of a Participant has an interest in the Participant's benefits under the Plan, the Committee shall have the right to immediately distribute the spouse's or former spouse's vested interest in the Participant's benefits under the Plan to such spouse or former spouse to the extent necessary to fulfill such domestic relations order, provided that such distribution is in accordance with the requirements of Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Employment Not Guaranteed</u>. Nothing contained in the Plan nor any action taken hereunder shall be construed as a contract of employment or as giving any Participant any right to continue the provision of services in any capacity whatsoever to the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>No Guarantee of Tax Consequences</u>. The Employer, Company, Board and Committee make no commitment or guarantee to any Participant that any federal, state or local tax treatment will apply or be available to any person eligible for benefits under the Plan and assume no liability whatsoever for the tax consequences to any Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Successors of the Company</u>. The rights and obligations of the Company under the Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>Notice</u>. Any notice or filing required or permitted to be given to the Company or the Participant under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, in the case of the Company, to the principal office of the Company, directed to the attention of the Committee, and in the case of the Participant, to the last known address of the Participant indicated on the employment records of the Company. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Notices to the Company may be permitted by electronic communication according to specifications established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Headings</u>. Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>Gender, Singular and Plural</u>. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may be read as the plural and the plural as the singular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 <u>Governing Law</u>. The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of "management or highly compensated employees" within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I of ERISA. To the extent any provision of, or legal issue relating to, this Plan is not fully preempted by federal law, such issue or provision shall be governed by the laws of the State of Arizona.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.17 <u>Entire Agreement</u>*.* Unless specifically indicated otherwise, this Plan supersedes any and all prior communications, understandings, arrangements or agreements between the parties, including the Employer, the Company, the Board, the Committee and any and all Participants, whether written, oral, express or implied relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.18 <u>Binding Arbitration</u>. Any claim, dispute or other matter in question of any kind relating to this Plan which is not resolved by the claims procedures under this Plan shall be settled by arbitration in accordance with the applicable employment dispute resolution rules of the American Arbitration Association. Notice of demand for arbitration shall be made in writing to the opposing party and to the American Arbitration Association within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall a demand for arbitration be

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made after the date when the applicable statute of limitations would bar the institution of a legal or equitable proceeding based on such claim, dispute or other matter in question. The decision of the arbitrators shall be final and may be enforced in any court of competent jurisdiction. The arbitrators may award reasonable fees and expenses to the prevailing party in any dispute hereunder and shall award reasonable fees and expenses in the event that the arbitrators find that the losing party acted in bad faith or with intent to harass, hinder or delay the prevailing party in the exercise of its rights in connection with the matter under dispute.

IN WITNESS WHEREOF, the Board has approved the adoption of this Plan by the Company as of the Effective Date and has caused the Plan to be executed by its duly authorized representative as of the date indicated below.

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| | |
|:---|:---|
| **UNIVERSITY OF PHOENIX, INC.** | **UNIVERSITY OF PHOENIX, INC.** |
| By | /s/ Benjamin Voss<br>|
| Name | Benjamin Voss |
| Title | VP, Total Rewards |
| Date | 10/28/2020 |

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## Exhibit 10.20

**Exhibit 10.20** 

**THE UNIVERSITY OF PHOENIX, INC.** 

**SENIOR EXECUTIVE SEVERANCE PAY PLAN** 

**(As Amended and Restated Effective December 2, 2022)** 

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**THE UNIVERSITY OF PHOENIX, INC.** 

**SENIOR EXECUTIVE SEVERANCE PAY PLAN** 

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE I** | DEFINITIONS | 2 |
| **ARTICLE II** | PLAN BENEFITS | 7 |
| **ARTICLE III** | DELAYED COMMENCEMENT DATE FOR SEVERANCE BENEFITS | 12 |
| **ARTICLE IV** | NON-ALIENATION OF PLAN BENEFITS | 14 |
| **ARTICLE V** | FUNDS FROM WHICH PLAN BENEFITS ARE PAYABLE | 15 |
| **ARTICLE VI** | CLAIM PROCEDURE | 16 |
| **ARTICLE VII** | THE ADMINISTRATOR | 17 |
| **ARTICLE VIII** | ACCOUNTS AND RECORDS | 18 |
| **ARTICLE IX** | INTERPRETATION OF PROVISIONS | 19 |
| **ARTICLE X** | AMENDMENT OF PLAN | 20 |
| **ARTICLE XI** | DISCONTINUANCE OF PLAN | 21 |
| **ARTICLE XII** | NO CONTRACT OF EMPLOYMENT | 22 |
| **ARTICLE XIII** | FORMS; COMMUNICATIONS | 23 |
| **ARTICLE XIV** | GOVERNING LAW | 24 |
| **EXHIBIT A** | STOCK PLAN PROVISIONS | A-1 |

---

i

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**THE UNIVERSITY OF PHOENIX, INC.** 

**SENIOR EXECUTIVE SEVERANCE PAY PLAN** 

The University of Phoenix, Inc. Senior Executive Severance Pay Plan as hereinafter set forth shall be effective with respect to Eligible Employees who incur an Involuntary Termination on or after December 2, 2022 (the "Effective Date"). The right of any former Eligible Employee whose employment was terminated prior to the Effective Date to receive any severance pay or similar benefit was governed by the provisions of the version of The University of Phoenix, Inc. Senior Executive Severance Pay Plan applicable to such former Eligible Employee on the date of his or her termination of employment, and such former Eligible Employee shall not be entitled to any severance benefits under this Plan.

This amendment and restatement of The University of Phoenix, Inc. Senior Executive Severance Pay Plan was adopted and approved by The University of Phoenix, Inc. Board of Trustees on December 2, 2022.

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**ARTICLE I** 

**DEFINITIONS** 

The following terms as used herein shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Administrator**" or "**Plan Administrator**" shall mean The University of Phoenix,

**Inc.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Average Annual Bonus**" shall mean the average of the actual incentive bonuses earned by the Participant for the three (3) fiscal years (or fewer number of fiscal years of employment with the University) immediately preceding the fiscal year in which his or her Involuntary Termination occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Base Pay**" shall mean a Participant's gross weekly base salary calculated on the basis of the annual rate of base salary in effect for him or her at the time of his or her Involuntary Termination. "Base Pay" shall not include any forms of faculty pay or any forms of extra compensation, such as bonuses, cost-of-living and other allowances, any award paid to the Participant under any incentive compensation plan of the University, any compensation attributable to stock options, restricted stock units or other equity or equity-based awards and any other contribution or payment by the University pursuant to any retirement, profit-sharing, disability or survivor income plan, health or welfare plan, life insurance plan, fringe benefits plan or similar plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**COBRA Coverage Costs**" shall mean the lump sum amount calculated and payable pursuant to Article II, Section B of the Plan to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Code**" shall mean the Internal Revenue Code of 1986, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Effective Date**" shall mean December 2, 2022, the date on which the amended and restated Plan becomes effective. The Plan was originally effective June 24, 2010.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Employee**" shall mean an individual who is in the employ of at least one member of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Employer Group**" shall mean Apollo Education Group, Inc. and each member of the group of commonly controlled corporations or other businesses that include Apollo Education Group, Inc., as determined in accordance with Code Sections 414(b) and (c) and the Treasury Regulations thereunder, except that in applying Code Sections 1563(1), (2) and (3) for purposes of determining the controlled group of corporations under Code Section 414(b), the phrase "at least 50 percent" shall be used instead of "at least 80 percent" each place the latter phrase appears in such sections, and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining trades or businesses that are under common control for purposes of Code Section 414(c), the phrase "at least 50 percent" shall be used instead of "at least 80 percent" each place the latter phrase appears in Section 1.414(c)-2 of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Eligible Employee**" shall mean an Employee who is a Grade 17-22 Employee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**ERISA**" shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Involuntary Termination**" shall mean the unilateral termination of the Participant's employment by the University for any reason other than a Termination for Cause; ***provided, however***, in no event shall an Involuntary Termination be deemed to occur in the event the Participant's employment terminates by reason of Participant's death or disability. In addition, an Involuntary Termination shall ***not*** be deemed to occur if a Participant's employment is terminated by the University by reason of the Participant's failure to accept an alternate position offered by the University, a purchaser (in connection with the Sale) or by a third-party vendor (in connection with the Outsourcing) if (1) the Principal Place of Employment for such alternate position is less than 25 miles from Participant's former Principal Place of Employment with the University or (2) the Administrator has determined, in its sole discretion prior to the time the Participant is offered the alternate position, that the alternate position will not result in a material reduction in the Participant's duties and responsibilities. The Administrator shall determine, in its sole discretion, all of the terms and conditions of a Participant's alternate position, the time at which the alternate position is offered (which may be after the Participant's employment has been severed), and the period the Participant has to consider the alternate position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Outsourcing**" shall mean the outsourcing of a position, office, department, function or subdivision of the University to a third party vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Participant**" shall mean an individual who at the time of his or her Involuntary Termination is an Eligible Employee. An Eligible Employee whose employment with the University terminates for any reason other than an Involuntary Termination, including (without limitation) any of the following reasons, shall not be a Participant in the Plan and shall not be entitled to any severance benefits hereunder: (1) transfer to employment with another member of the Employer Group, (2) a voluntary resignation, (3) a Termination for Cause, (4) death or disability, (5) retirement (other than a retirement that is a direct result of an Involuntary Termination) or (6) temporary layoff or a military leave of absence, except that if (during such absence from work) an Involuntary Termination of his or her Eligible Employee status occurs, then the Eligible Employee shall be eligible for Severance Pay as a result of such Involuntary Termination. A Participant ceases to be such on the date he or she ceases to be eligible for any further Severance Pay pursuant to the provisions of Article II hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Plan**" shall mean The University of Phoenix, Inc. Senior Executive Severance Pay Plan, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Plan Year**" shall mean the calendar year or such other period as the University shall from time to time determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Principal Place of Employment**" shall mean a University location where a job is based, where the functions of the role typically would be carried out, and where new hires into the role typically would be hired. From time to time, the University has granted and in the future may grant a Participant's request to work from another physical location on other than a temporary basis (defined below), including out of state or at home, as a matter of personal convenience to the Participant. Any such change in work location shall not amount to a change in the Participant's

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Principal Place of Employment for purposes of this Plan, unless the University agrees in writing at the time the University approves the request that a change in Participant's Principal Place of Employment will result. The location at which a Participant is working on other than a temporary basis, prior to the Effective Date of this Plan, shall be considered the Participant's Principal Place of Employment for purposes of this Plan. In the event the University, in its sole and absolute discretion, informs a Participant of a future change in his or her Principal Place of Employment, on other than a temporary basis, and provided that such change would comply with Article I, Section (k), and provided that Participant chooses not to accept such change, Participant would be considered to have involuntarily terminated his or her employment and would be eligible for Severance Pay in accordance with the terms of the Plan. A Participant would be ineligible for Severance Pay in accordance with the terms of the Plan if Participant chooses not to return to Participant's Principal Place of Employment following a change on a temporary basis to a different work location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Temporary basis" shall mean a period of time that is typically not more than six (6) months, but may from time to time extend to a longer but estimable period of time, which is known to Participant and the University at the time Participant changes his or her work location on a temporary basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Pro-Rata Vesting of Equity Awards**" shall mean the process set forth in any equity grant agreement the Participant may have with the University pursuant to which a Participant may be eligible to vest on a limited pro-rata basis in University stock or stock-based awards, including (without limitation) stock option grants, restricted stock unit awards, performance share awards and any other equity or equity-based awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Sale**" shall mean the sale of all or a portion of the assets of the University or other business sale transaction by the University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Separation from Service**" shall mean the Participant's cessation of Employee status and shall be deemed to occur for purposes of the Plan at such time as the level of his or her bona fide services to be performed as an Employee (or non-employee consultant) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he or she rendered as an Employee during the immediately preceding thirty-six (36) months (or such shorter period for which he or she may have rendered such service). Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Code Section 409A. In addition to the foregoing, a Separation from Service will not be deemed to have occurred while an Employee is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months or any longer period for which such Employee is, either by statute or contract, provided with a right to reemployment with one or more members of the Employer Group; provided, however, that in the event of an Employee's leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of not less than six (6) months and that causes such individual to be unable to perform his or her duties as an Employee, no Separation from Service shall be deemed to occur during the first twenty-nine (29) months of such leave. If the period of leave exceeds six (6) months (or twenty-nine (29) months in the event of disability as indicated above) and the Employee is not provided with a right to reemployment either by statute or contract, then such Employee will be deemed to have a Separation from Service on the first day immediately following the expiration of such six (6)-month or twenty-nine (29)-month period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Severance Pay**" shall mean the amount payable pursuant to Article II, Section A of the Plan to a Participant who ceases employment with the University by reason of an Involuntary Termination. Severance Pay shall be paid to such Participant in installments in accordance with the provisions of Article II, Section E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Specified Employee**" shall mean a Participant who is, pursuant to procedures established by the Plan Administrator in accordance with the applicable standards of Code Section 409A and the Treasury Regulations thereunder and applied on a consistent basis for all non-qualified deferred compensation plans of the Employer Group subject to Code Section 409A, deemed at the time of his or her Separation from Service to be a "specified employee" under Code Section 409A. The Specified Employees shall be identified on December 31 of each calendar year and shall include each Participant who is a "key employee" (within the meaning of that term under Code Section 416(i)) at any time during the twelve (12)-month period ending with such date. A Participant who is so identified as a Specified Employee will have that status for the twelve (12)-month period beginning on April 1 of the following calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Termination for Cause**" shall mean the termination of an Eligible Employee's service or employment with the University for one or more of the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) repeated dereliction of the material duties and responsibilities of his or her position with the University;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) misconduct, insubordination or failure to comply with University policies governing employee conduct and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) excessive lateness or absenteeism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) conviction of or pleading guilty or nolo contendere to any felony involving theft, embezzlement, dishonesty or moral turpitude;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) commission of any act of fraud against, or the misappropriation of property belonging to, the University;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) commission of any act of dishonesty in connection with his or her responsibilities as an Employee that is intended to result in his or her personal enrichment or the personal enrichment of his or her family or others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other misconduct adversely affecting the business or affairs of the University; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) a material breach of any agreement he or she may have at the time with the University, including (without limitation) any proprietary information, non-disclosure or confidentiality agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**University**" shall mean The University of Phoenix, Inc.; its parent, Apollo Education Group, Inc., and other wholly-owned U.S. subsidiaries of Apollo Education Group, Inc., including (without limitation) Western International University, Inc.

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**ARTICLE II** 

**PLAN BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>**Severance Pay**</u> . The amount of Severance Pay to which an Eligible Employee may become entitled
under this Plan upon his or her Involuntary Termination shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>**Grade 17 Eligible Employee**</u> . A Grade 17 Eligible Employee shall be eligible to receive Severance
Pay equal to six (6) months of his or her Base Pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>**Grade 18 Eligible Employee**</u> . A Grade 18 Eligible Employee shall be eligible to receive Severance
Pay equal to nine (9) months of his or her Base Pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>**Grade 19 Eligible Employee**</u> . A Grade 19 Eligible Employee shall be eligible to receive Severance
Pay equal to (i) twelve (12) months of his or her Base Pay plus (ii) fifty percent (50%) of his or her Average Annual Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>**Grade 20-21 Eligible Employees**</u> . A Grade 20-21 Eligible Employee shall be eligible to receive Severance Pay equal to (i) eighteen (18) months of his or her Base Pay plus (ii) one (1) times his or her Average Annual Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>**Grade 22 Eligible Employee**</u> . A Grade 22 Eligible Employee shall be eligible to receive Severance
Pay equal to (i) twenty-four (24) months of his or her Base Pay plus (ii) one (1) times his or her Average Annual Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>**Installment Payments**</u> . The Severance Pay to which a Participant becomes entitled under this
Article II, Section A shall be paid in successive equal installments in accordance with the provisions of Article II, Section E below. Each such payment shall be subject to the University's collection of all applicable withholding taxes, and
the Participant shall receive only the portion of such payment remaining after such withholding taxes have been collected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>**Severance Offsets**</u> . The amount of Severance Pay payable to a Participant under Article II, Section
A(1)-(5) hereof shall be reduced, to the extent permitted by applicable law and not otherwise in contravention of any applicable acceleration prohibition imposed under Code Section 409A, by (i) any monies a Participant owes to the
University, (ii) by the amount of any statutory benefit payable to the Participant by reason of his or her termination of employment, and (iii) by the amount of severance pay or other severance benefits payable to the Participant pursuant
to any other plan of the University or any agreement in effect between the University and

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the Participant so that there shall be no duplication of severance benefits under such plan or agreement and this Plan. Statutory benefits that reduce the benefits payable under this Plan shall include, but not be limited to, benefits paid pursuant to the Worker Adjustment and Retraining Notification Act in connection with the Participant's termination. In further clarification of the foregoing offset provisions, should there be any other severance benefit arrangement in effect for a Participant on the Effective Date of this Plan or should any other severance benefit arrangement be established for a Participant in connection with his or her commencement of employment with the University, whether before or after such Effective Date, then the terms and provisions of that other severance benefit arrangement (including without limitation the form of payment and the commencement or payment date) shall supersede and replace the terms and provisions of this Plan to the extent that other arrangement provides for severance benefits at the time of the Participant's Involuntary Termination that are equal to or greater than the amount of Severance Pay payable under the Plan, and no benefits shall be provided under this Plan that would duplicate those other severance benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>**Non-duplication**</u> . No Participant shall be entitled to
benefits under more than one subsection of Article II, Section A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>**COBRA Coverage Costs**</u> . The University shall make a lump sum cash payment to each Participant at
Grade Level 17 or above who becomes entitled to Severance Pay under the Plan. The lump sum cash payment will be in an amount determined by multiplying (X) the amount by which (i) the monthly cost that would be payable by the
University, as measured as of the date of his or her Involuntary Termination, to obtain continued medical, dental and vision care coverage for the Participant and his or her spouse and eligible dependents under the University's employee group
health plan, pursuant to their COBRA rights, at the level in effect for each of them on the date of such Involuntary Termination exceeds (ii) the monthly amount payable at such time by a similarly-situated executive whose employment with the
University has not terminated to obtain group health care coverage at the same level by (Y) the number of months of Base Pay for which such Participant will receive Severance Pay under the Plan. The University shall pay such lump sum amount to
the Participant on the same date the first installment of his or her Severance Pay is paid in accordance with Article II, Section F below. Notwithstanding the foregoing, such lump sum payment shall be subject to the delayed commencement date
provisions of Article III, Section A of the Plan, to the extent applicable. Such lump sum shall constitute taxable income to the Participant and shall be subject to the University's collection of all applicable withholding taxes, and the
Participant shall receive only the portion of such payment remaining after such withholding taxes have been collected. It shall be the sole responsibility of the Participant and his or her spouse and eligible dependents to obtain actual COBRA
coverage under the University's group health care plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>**Outplacement**</u> . Outplacement shall be provided under this Plan as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>**Outplacement in General**</u> . A Participant in this Plan may be eligible for outplacement. The
outplacement services provided and the duration of such outplacement services shall be determined from time to time by the Plan Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>**Limitation**</u> . No outplacement services will be provided beyond the close of the calendar year
following the calendar year in which the Participant's Involuntary Termination occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>**Requirement of Complete And Permanent Release and Restrictive Covenants**</u> . Notwithstanding any
provision of the Plan to the contrary, a Participant's entitlement to Severance Pay, COBRA Coverage Costs, and Outplacement is contingent upon the Participant's timely signing, delivery and non-revocation of a complete and permanent general release of all claims against the University and its affiliates and related parties (the "Release"). The Release will also subject the Participant
to certain confidentiality, non-solicitation, non-disparagement and non-compete covenants in such form and substance as the
University deems appropriate. A Participant's failure to comply on a timely basis with such Release requirement shall render such individual ineligible to receive any severance pay or other benefits under the Plan.

On the date of the Participant's Involuntary Termination or within fifteen (15) days thereafter, the University shall furnish such Participant with a letter that describes the benefits of the Plan as applicable to the Participant (the "Severance Letter"). With the Severance Letter the University shall also forward the appropriate form of Release to be executed by the Participant.

If age forty (40) or older, the Participant shall have twenty-one (21) calendar days from the date the Participant is provided with the Release to review, sign and return that Release to the University. However, if the Severance Pay is provided under this Plan in connection with an event that the University in its discretion determines is a program affecting a group or class of Eligible Employees within the meaning of 29 USC Section 626(f)(1)(F)(ii), the Participant shall have forty-five (45) calendar days from the date the Participant is provided with the Release to review, sign and return that Release to the University. In either case, the Participant will have seven (7) days from the date the Participant returns the signed Release to revoke and void the Release by giving written notice of his or her intent to do so to the University. The Release does not become effective or enforceable until the seven (7)-day revocation period has expired.

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If under age forty (40), the Participant shall have fourteen (14) calendar days from the date the Participant is provided with the Release to review, sign and return that Release to the University, and such Release shall be effective and enforceable immediately upon delivery of the signed Release to the University without any applicable revocation period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>**Terms of Payment**</u> . Provided the Participant returns, within the applicable time period provided
under Article II, Section D, the Release required to receive benefits under the Plan and does not revoke that release during the applicable revocation period, the Severance Pay will be paid in successive equal installments over a period of months
equal to the total number of months taken into account in calculating the Base Pay component of the Severance Pay to which such Participant is entitled. Such installments shall be payable over the applicable period on the regularly scheduled pay
dates in effect for the University's salaried employees, with the first such installment to be paid on the first such pay date within the seventy-five (75)-day period measured from the date of the
Participant's Separation from Service due to his or her Involuntary Termination on which the Release delivered by the Participant in accordance with Article II, Section D is effective following the expiration of the applicable maximum
review/delivery/return and revocation periods to which the Participant is entitled under the Plan and any applicable law with respect to such Release, or to begin on such subsequent date thereafter as the University may determine in its sole
discretion, but in no event shall the first such installment be paid later than the fifteenth (15<sup>th</sup>) day of the third (3<sup>rd</sup>) calendar month
following the date of the Participant's Separation from Service. For purposes of Code Section 409A, the Severance Pay payable pursuant to this Article II, Section E shall be deemed to be a series of separate payments, with each
installment of the Severance Pay to be treated as a separate payment, and any such separate payments made during the period commencing with date of the Participant's Involuntary Termination and ending with March 15 of the calendar year
immediately following the calendar year in which such Involuntary Termination occurs shall constitute the Participant's "Short-Term Deferral Payments" for purposes of Article III of the Plan. In no event shall the Participant have
any right to control or designate the calendar year in which the payment of his or her Separation Pay shall commence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>**Confidentiality, Non-Solicitation, Non-Disparagement, and Non-Competition**</u> . In the event that the Participant violates any confidentiality, non-solicitation, non-disparagement, or non-competition provisions in the Release or any other agreement between the University and the Participant, the Participant shall not be entitled
to Severance Pay, COBRA Coverage Costs, Pro-Rata Vesting of Equity Awards or Outplacement. If the Participant violates any confidentiality, non-solicitation, non-

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disparagement, or non-competition provisions in the Release or other agreement between the University and the Participant, the Participant shall repay or return all Severance Pay, COBRA Coverage Costs and the number of shares of the University's common stock attributable to the Pro-Rata Vesting of Equity Awards (or the gain realized from the sale of such shares) paid or issued to the Participant, along with the value of any Outplacement provided to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>**Other Benefits**</u> . Except as provided in this Plan or to the extent required by law or the
applicable provisions of an employee benefit program, coverage under all employee benefit programs maintained by the University will cease on the date of the Participant's termination of employment. The Participant shall, however, have such
rights as are required by law or the applicable provision of an employee benefit program with respect to the University's employee benefit programs, including the right to elect COBRA coverage under the University health benefit programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>**Window Benefits**</u> . The University may establish window benefits that shall be applicable for
limited periods of time and may be applicable to limited groups of Eligible Employees. The provisions of such window benefit may be more favorable or less favorable than the provision that would otherwise be applicable to the Participant in the
absence of such window benefit. The window benefit provisions shall, during the period for which they are in effect, supersede any other Plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>**Stock Plan Provisions**</u> . Any special provisions with respect to any University plan that provides
for the issuance or acquisition of shares of the University's common stock (whether through stock option grants, restricted stock units, performance share unit awards or other stock-based awards) shall be provided in attached Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>**Cessation of Severance Pay Upon Reemployment**</u> . A Participant who experiences a Separation from
Service on or after July 1, 2012 and who is re-employed by the University prior to the date the Participant ceases to be eligible for any further Severance Pay by reason of such Separation from Service
shall receive no further Severance Pay in connection with that Separation from Service.

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**ARTICLE III** 

**DELAYED COMMENCEMENT DATE FOR SEVERANCE BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Notwithstanding any provision to the contrary in Article II or any other Article of the Plan, other than Article III, Sections B and C below, no severance benefit payable under the Plan (or component thereof) that is deemed to constitute an item of "nonqualified deferred compensation" within the meaning of Code Section 409A and that is otherwise payable in connection with a Participant's Separation from Service shall be paid to the Participant until the earlier of (i) the first day of the seventh (7th) month following the date of such Participant's Separation from Service or (ii) the date of his or her death, if the Participant is deemed at the time of such Separation from Service to be a Specified Employee ***and*** such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). Upon the expiration of the applicable delay period, all payments delayed pursuant to this Article III, Section A, whether they were otherwise payable in installments or a lump sum, shall be paid in a lump sum to the Participant, and any remaining severance benefits shall be paid in accordance with the applicable provisions of Article II.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Notwithstanding Article III, Section A, the delayed commencement date provisions of such Article III, Section A shall not be applicable to (i) any severance payments under Article II that qualify as Short-Term Deferral Payments exempt from Code Section 409A or any other severance benefits hereunder that qualify for such exemption and (ii) the portion of a Participant's Severance Pay, COBRA Coverage Costs and the Pro-Rata Vesting of Equity Awards otherwise subject to Code Section 409A that does not in the aggregate exceed the dollar limit described below and that is otherwise scheduled to be paid in connection with such Participant's Separation from Service but not later than the last day of the second (2<sup>nd</sup>) calendar year following the calendar year in which such Separation from Service occurs. Accordingly, the foregoing clause (i) and (ii) payments shall be paid to the Participant as they become due and payable in accordance with the payment provisions of Article II. For purposes of clause (ii) of this Article III, Section B, the applicable dollar limitation will be equal to two (2) times the lesser of (A) the Participant's annualized compensation (based on his or her annual rate of pay for the taxable year preceding the taxable year of his or her Separation from Service, adjusted to reflect any increase during that taxable year that was expected to continue indefinitely had such Separation from Service not occurred) or (B) the compensation limit under Code Section 401(a)(17) as in effect in the year of the Separation from Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Article III, Sections A and B shall not apply to the lump sum payment of COBRA Coverage Costs to the extent the dollar amount of that payment does not exceed the applicable dollar amount in effect under Code Section 402(g)(1)(B) for the calendar year in which the Participant's Separation from Service occurs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Code Section 409A(3) and the Treasury Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. No interest shall be paid on any Severance Pay or COBRA Coverage Costs for which a delayed commencement date is required in accordance with the foregoing provisions of this Article III.

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**ARTICLE IV** 

**NON-ALIENATION OF PLAN BENEFITS** 

Except as provided by applicable law, no Severance Pay or COBRA Coverage Costs payable to any Participant under the provisions of the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void, nor shall any such Severance Pay, COBRA Coverage Costs or Pro-Rata Vesting of Equity Awards be in any manner liable for or subject to the debts, contracts, liabilities, engagements, or torts of any Participant.

If any Participant is, in the judgment of the Administrator, unable to take care of his or her affairs for any reason whatsoever, including mental condition, illness or accident, any Severance Pay or COBRA Coverage Costs payable under the Plan may be paid to the guardian or other legal representative of such Participant or to such other person or institution who, in the opinion of the Administrator, is then maintaining or has custody of such Participant. Such payment shall constitute a full discharge with respect thereto and the Administrator shall have sole discretion in determining to whom such payment shall be made and in changing the payee from time to time.

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**ARTICLE V** 

**FUNDS FROM WHICH PLAN BENEFITS ARE PAYABLE** 

The Plan shall be unfunded. All Severance Pay and COBRA Coverage Costs intended to be provided under the Plan shall be paid from time to time from the general assets of the University and paid in accordance with the provisions of the Plan.

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**ARTICLE VI** 

**CLAIM PROCEDURE** 

The Plan Administrator shall establish a claims procedure that satisfies the requirements of 29 CFR Section 2560.503-1 as applicable to a severance pay plan subject to ERISA. The Plan Administrator has full and complete discretionary authority to decide any matter presented through the claims procedure and the final decision by the Plan Administrator shall be binding on all parties to the maximum extent allowed by law.

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**ARTICLE VII** 

**THE ADMINISTRATOR** 

The general administration of the Plan shall be vested in the Administrator who shall be the Plan Administrator for purposes of ERISA.

The Administrator may employ counsel, actuaries and agents and engage such clerical, medical and actuarial services as the Administrator deems expedient.

All expenses incurred by the Administrator in the administration of the Plan, including compensation of the counsel, agents and agencies as the Administrator may appoint or employ, shall be paid by the University.

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**ARTICLE VIII** 

**ACCOUNTS AND RECORDS** 

The Administrator shall keep such accounts and records as it may deem necessary or proper in the performance of its duties as administrator of the Plan.

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**ARTICLE IX** 

**INTERPRETATION OF PROVISIONS** 

The Administrator shall have full and complete discretionary power and authority to determine the amount of any Severance Pay, COBRA Coverage Costs and Outplacement benefits, if any, payable under the Plan and all other matters arising in the administration, interpretation and application of the Plan.

The Plan is intended to comply with the applicable requirements of Code Section 409A and the Treasury Regulations thereunder. Payments to Plan Participants are also intended, where possible, to comply with the "short term deferral exception" and the "involuntary separation pay exception" to Code Section 409A. Accordingly, the provisions of the Plan applicable to Severance Pay, COBRA Coverage Costs and Pro-Rata Vesting of Equity Awards and the determination of the Participant's Separation from Service due to his or her Involuntary Termination shall be applied, construed and administered so that those benefits qualify for one or both of those exceptions, to the maximum extent allowable. However, to the extent any payment or benefit under the Plan is deemed to constitute an item of deferred compensation subject to the requirements of Code Section 409A, the provisions of the Plan applicable to that payment or benefit shall be applied, construed and administered so that such payment or benefit is made or provided in compliance with the applicable requirements of Code Section 409A. In addition, should there arise any ambiguity as to whether any other provisions of the Plan would contravene one or more applicable requirements or limitations of Code Section 409A and the Treasury Regulations thereunder, such provisions shall be interpreted, administered and applied in a manner that complies with the applicable requirements of Code Section 409A and the Treasury Regulations thereunder.

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**ARTICLE X** 

**AMENDMENT OF PLAN** 

The University's Board of Trustees or an authorized board committee may, from time to time and at any time, amend the Plan and any of the benefits set forth in the Plan.

Any amendment to the Plan may effect a substantial change in the Plan and may include (but shall not be limited to) (1) a reduction to the level of Severance Pay, COBRA Coverage Costs, Outplacement benefits, and/or other benefits payable under the Plan, (2) a provision for the participation in the Plan by any subsidiary of the University, (3) a change in the class or classes of persons to whom any Severance Pay, COBRA Coverage Costs, and/or Outplacement benefits may be or become payable, and (4) any change deemed by the University to be necessary or desirable to make the Plan conform to, or to enable Participants to obtain tax benefits under, any existing or future laws or rules or regulations thereunder.

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**ARTICLE XI** 

**DISCONTINUANCE OF PLAN** 

The Plan may be terminated at any time and for any reason by action of the University's Board of Trustees or an authorized board committee.

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**ARTICLE XII** 

**NO CONTRACT OF EMPLOYMENT** 

The adoption and maintenance of the Plan shall not be deemed to constitute a contract between the University and any Eligible Employee or to be a consideration for, or an inducement or condition of, the employment of any person. Nothing herein contained shall be deemed to give any Eligible Employee the right to be retained in the service of the University or to interfere with the rights of the University to discharge any Eligible Employee at any time. No Eligible Employee shall, because of the Plan, become entitled to any offer of relocation, lateral transfer, downgrade with pay protection, or any other term of employment.

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**ARTICLE XIII** 

**FORMS; COMMUNICATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Administrator shall provide such appropriate forms as it may deem expedient in the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. All communications concerning the Plan shall be in writing addressed to the Administrator at such address as the Administrator may from time to time designate, and no such communication shall be effective for any purpose unless received by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Administrator shall issue a summary plan description to the Eligible Employees describing the Plan. In the event of any conflict between the terms of the Plan, as set forth in the Plan and as set forth in the summary plan description, the Plan shall control.

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**ARTICLE XIV** 

**GOVERNING LAW** 

The Plan shall be governed by and construed in accordance with the laws of the State of Arizona, except to the extent that the laws of the United States (including ERISA) take precedence and preempt state laws.

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**EXHIBIT A** 

**STOCK PLAN PROVISIONS** 

A Participant in the Plan shall be subject to such special provisions with respect to University plans that provide for the issuance or acquisition of shares of the University's common stock (whether pursuant to stock option grants, restricted stock units, performance share unit awards and other stock-based awards) as are determined from time to time by the Compensation Committee of the Board of Directors of Apollo Education Group, Inc. in its sole discretion.

## Exhibit 10.21

**Exhibit 10.21** 

**Phoenix Education Partners, Inc.** 

**Employee Stock Purchase Plan** 

**1. Purpose.** The purpose of this Employee Stock Purchase Plan (the "<u>Plan</u>") of Phoenix Education Partners, Inc., a Delaware corporation (the "<u>Company</u>"), is to provide eligible Employees of the Company and its Designated Subsidiaries with a convenient opportunity to purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

**2. Definitions.** The following definitions shall apply throughout the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Code</u>" means the United States Internal Revenue Code of 1986, as amended, and any successor thereto. References to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Committee</u>" means a committee appointed by the Board. In the absence of a contrary designation by the Board, the Compensation Committee of the Board shall be the Committee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Common Stock</u>" means the common stock of the Company, par value $0.01 per share (and any stock or other securities into which such common stock is converted or into which it may be exchanged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Company</u>" has the meaning set forth in Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Compensation</u>" means the base pay, regular incentive pay, regular overtime pay, any discretionary annual bonus and service charges (in each case, determined on such date as may be established by the Committee) received by an Employee from the Company or a Designated Subsidiary. Compensation shall (i) be determined prior to any (A) tax withholdings, (B) salary reduction contributions under a cafeteria plan pursuant to Section 125 of the Code, (C) salary reduction amounts pursuant to a qualified transportation benefit program pursuant to Section 132(f) of the Code, and (D) elective deferrals to a nonqualified deferred compensation plan and to a cash or deferred plan pursuant to Section 401(k) of the Code and (ii) exclude any imputed income arising under any group insurance or benefit program, travel expenses, business and relocation expense, income received in connection with stock options or other equity-based awards, non-regular incentive pay for ad-hoc purposes, non-regular overtime pay related to non-regular incentive pay for ad-hoc purposes, non-regular discretionary pay for ad-hoc purposes, severance pay, hiring bonuses or any other form of compensation that may be paid from time to time to the Participant from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Contributions</u>" means all amounts credited to the notional account of a Participant pursuant to the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Corporate Transaction</u>" means a sale of all or substantially all of the Company's assets, or a merger, consolidation, or other capital reorganization of the Company with or into another corporation, or any other transaction or series of related transactions in which the Company's stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its successor or ultimate parent company) immediately thereafter, but excluding any acquisition of voting stock by the Company or any of its affiliates or by any employee benefit plan sponsored or maintained by the Company or any of its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Designated Subsidiaries</u>" means all Subsidiaries, except with respect to any of such Subsidiaries that the Committee has determined is not eligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Employee</u>" means any person who (i) is customarily employed thereby for at least 20 hours per week and more than five (5) months in a calendar year and (ii) is classified as an employee for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Exchange Act</u>" means the United States Securities Exchange Act of 1934, as amended, and any successor thereto. References to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Fair Market Value</u>" means, for any date, with respect to a Share, the closing sales price of a Share on the primary exchange on which the Common Stock is traded on such date or, in the event that the Common Stock is not traded on such date, then the immediately preceding trading date. In the absence of an established market for Common Stock, the Fair Market Value of a Share shall be determined in good faith by the Committee and such determination shall be conclusive and binding on all persons. The "<u>Fair Market Value</u>" of all other property shall be determined in good faith by the Committee, and such determination shall be conclusive and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Indemnifiable Person</u>" shall have the meaning ascribed to it in Section 27.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Maximum Number of Shares</u>" means, with respect to a given Offering Period, a number of Shares equal to the quotient of (x) $25,000 divided by (y) the Fair Market Value of a Share on the Offering Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>New Purchase Date</u>" shall have the meaning ascribed to it in Section 16(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Offering Date</u>" means the first day of each Offering Period, as determined in accordance with Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Offering Period</u>" means a period described in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Plan</u>" has the meaning set forth in Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Plan Administrator</u>" means the Committee, or such other institution selected by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Participant</u>" means an eligible Employee who has elected to participate in the Plan in accordance with Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Purchase Date</u>" means, unless otherwise determined by the Committee, the last day of each Offering Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Purchase Price</u>" means, with respect to a given Offering Period, an amount equal to 85% (or such greater percentage as designed by the Committee) of the Fair Market Value of a Share on (i) the Purchase Date or (ii) the Offering Date, whichever amount is lower; <u>provided</u>, that the Purchase Price will in no event be less than the par value of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Rule 16b-3</u>" means Rule 16b-3 adopted under Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Securities Act</u>" means the United States Securities Act of 1933, as amended, and any successor thereto. References to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Share</u>" means a share of Common Stock, as adjusted in accordance with Section 16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Subsidiary</u>" means a corporation which is a "subsidiary corporation" of the Company within the meaning of Section 424(f) of the Code.

3. **Offering Periods.** The Plan shall initially be implemented by a series of consecutive Offering Periods commencing on the first day immediately following each Purchase Date and ending on the next Purchase Date. The Committee shall have the authority to change the duration (subject to a maximum Offering Period of 27 months), frequency, start date, and end dates of Offering Periods.

**4. Eligibility.** Subject to the requirements of Section 5 and the limitations imposed by Section 423(b) of the Code (and unless different dates are established by the Committee in respect of any Offering Period), a person shall be eligible to participate in an Offering Period if such person is an Employee as of the date on which an election for participation in the Offering is required pursuant to Section 5(b) below; <u>provided</u>, <u>however</u>, that the Committee may provide that an Employee shall not be eligible to participate in an Offering Period if: (i) such Employee is a highly compensated employee within the meaning of Section 423(b)(4)(D) of the Code; (ii) such Employee has not met a service requirement designated by the Committee pursuant to Section 423(b)(4) (A) of the Code (which service requirement may not exceed two years); and/or (iii) such Employee is a citizen or resident of a foreign jurisdiction and the grant of a right to purchase Common Stock under the Plan to such Employee would be prohibited under the laws of such foreign jurisdiction or the grant of a right to purchase Common Stock under the Plan to such Employee in compliance with the laws of such foreign jurisdiction would cause the Plan to violate the requirements of Section 423 of the Code, as determined by the Committee in its sole discretion; <u>provided</u>, <u>further</u>, that any exclusion in clause (i), (ii) or (iii) shall be applied in an identical manner under each Offering Period to all Employees, in accordance with Treasury Regulation Section 1.423-2(e).

**5. Participation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Participation in the Plan is completely voluntary. Except as set forth in Section 7(b) below, participation in one or more of the offerings under the Plan shall neither limit, nor require, participation in any other offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An eligible Employee may become a Participant in respect of an Offering Period by electing to participate in the manner approved by the Committee. An Employee who wishes to participate in an Offering Period must elect do so at least ten (10) business days prior to the Offering Date for that Offering Period, unless a different time for electing to participate (including following the Offering Date) is set by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Participant's election shall indicate either a fixed dollar amount or a percentage of such Participant's Compensation, in either case, as may be determined by the Committee, to be contributed during the applicable Offering Period; <u>provided</u>, <u>however</u>, that a Participant's election shall be subject to the limitations of Section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The deduction rate selected by a Participant shall remain in effect for subsequent Offering Periods unless the Participant (i) submits a new election in the manner approved by the Committee, (ii) withdraws from the Plan, or (iii) terminates employment or otherwise becomes ineligible to participate in the Plan.

**6. Method of Payment of Contributions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Payroll deductions shall be made from a Participant's Compensation during an Offering Period in an aggregate amount equal to the Participant's contribution election for such Offering Period. All payroll deductions made by a Participant shall be credited to his or her notional account under the Plan. Participant may not make a prepayment or any additional payments into such notional account. Payroll deductions in respect of any Offering Period shall commence on the Offering Date and shall end on the final day of the final payroll period ending on or prior to the applicable Purchase Date, unless sooner terminated by the Participant as provided in Section 10, which payroll deductions shall be subject to any limitation on amount that the Committee may establish from time to time in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Participants on an authorized leave of absence during an Offering Period may continue to participate in such Offering Period; <u>provided</u>, <u>however</u>, that a Participant on an authorized leave of absence will have contributions suspended during such leave of absence and, absent any other instruction from such Participant, such contributions will resume upon the next payroll following such Participant's return from such leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 7(b) herein, a Participant's payroll deductions may be decreased by the Company to zero during any Offering Period.

**7. Grant of Option.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On each Offering Date, each Participant shall be deemed to have been granted an option to purchase as many Shares (rounded down to the nearest whole Share) as may be purchased with his or her Contributions during the related Offering Period at the Purchase Price; <u>provided</u>, <u>however</u>, that such option shall be subject to the limitations set forth in Section 7(b) below and Section 11, and may be reduced pursuant to Section 6, in each case, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any contrary provisions of the Plan, each option to purchase Shares under the Plan shall be limited as necessary to prevent any Employee from (i) immediately after the grant, owning capital stock of the Company and holding outstanding options to purchase capital stock of the Company possessing, in the aggregate, more than 5% of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary, including for this purpose any stock attributed to such Employee pursuant to Section 424(d) of the Code, (ii) acquiring rights to purchase stock under all employee stock purchase plans (as described in Section 423 of the Code or any other similar arrangements maintained by the Company or any of its Subsidiaries) of the Company and its Subsidiaries which accrue at a rate that exceeds $25,000 of the Fair Market Value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding and exercisable at any time, or (iii) purchasing, in respect of any Offering Period, more than the Maximum Number of Shares.

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**8. Exercise of Option; Interest.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless a Participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be exercised automatically on the applicable Purchase Date, and the number of full Shares subject to the option will be purchased at the applicable Purchase Price with the accumulated Contributions in his or her notional account. No fractional Shares shall be issued. Any amounts accumulated in a Participant's notional account that are not used to purchase Shares shall be returned to the Participant without interest as soon as practicable following the Purchase Date. Notwithstanding Section 9 below, the Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the Participant as of the Purchase Date. During his or her lifetime, a Participant's option to purchase Shares hereunder is exercisable only by him or her.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the time an option granted under the Plan is exercised, or at the time some or all of the Common Stock issued to a Participant under the Plan is disposed of, the Participant must make adequate provisions for any applicable federal, state, or other tax withholding obligations that arise upon the Purchase Date or the disposition of the Common Stock. At any time, the Company or a Designated Subsidiary may, but will not be obligated to, withhold from the Participant's compensation the amount necessary to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the sale or disposition of Common Stock by the Participant earlier than as described in Section 423(a)(1) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No interest will be paid or allowed on any money paid into the Plan or credited to the notional account of any Participant.

**9. Delivery.** As promptly as practicable after each Purchase Date, the number of Shares purchased by each Participant upon exercise of his or her option shall be deposited into an account established in the Participant's name with the Plan Administrator. The Committee may determine that no Share purchased in respect of an offering may be transferred out of such Participant's account with the Plan Administrator within two (2) years following the Offering Date applicable to such Share or one (1) year following the Purchase Date applicable to such Share if such transfer would constitute a "disposition" (as such term is used in Section 423(a)(1) of the Code) of such Share.

**10. Voluntary Withdrawal; Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant may withdraw all but not less than all the Contributions credited to his or her notional account under the Plan at any time prior to the applicable Purchase Date by giving written notice to the Plan Administrator in the manner directed by the Company. All of the Participant's Contributions credited to his or her notional account with respect to an Offering Period will be paid to him or her as soon as administratively practicable after receipt of his or her notice of withdrawal, his or her option for the current Offering Period will be automatically terminated, and no further Contributions for the purchase of Shares may be made by the Participant with respect to such Offering Period. A Participant's withdrawal from the Plan during an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan that may hereafter be adopted by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon termination of the Participant's Continuous Status as an Employee prior to a Purchase Date for any reason, including retirement or death, the Contributions credited to his or her notional account will be returned to him or her, and his or her option will be automatically terminated; <u>provided</u>, <u>however</u>, that in the event of the death of a Participant, the Company shall deliver the Contributions to the executor or administrator of the estate of the Participant or, if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such amounts to the spouse or to any one or more dependents or relatives of the Participant.

**11. Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to adjustment as provided in Section 16, the maximum number of Shares that shall be made available for sale under the Plan shall be [•]<sup>1</sup>, subject to an annual increase on the first day of each calendar year beginning on January 1, 2026 and ending on and including January 1, 2035, equal to the least of (i) 1% of the aggregate number of Shares outstanding on the final day of the immediately preceding calendar year, (ii) [•]<sup>2</sup> Shares or (iii) such number of Shares as is determined by the Board. If the Committee determines at any time that, on a given Purchase Date, the number of Shares with respect to which options are to be exercised may exceed the number of Shares that are available for sale under the Plan on such Purchase Date, the Company shall make a pro rata allocation of the Shares available for purchase on such Purchase Date, in as uniform a manner as shall be practicable and as it shall determine to be equitable among all Participants exercising options to purchase Common Stock on such Purchase Date, and the Committee may, in its discretion (x) continue all Offering Periods then in effect, or (y) terminate any or all Offering Periods then in effect pursuant to Section 17 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Shares to be delivered to a Participant under the Plan will be registered in the name of the Participant.

**12. Administration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the express provisions of the Plan, the Committee shall administer the Plan and shall have the sole and plenary power to (i) interpret and administer, reconcile any inconsistency in, correct any defect in, and supply any omission in the Plan; (ii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; and (iii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan, including, without limitation to the foregoing, by changing the duration (subject to a maximum Offering Period of 27 months), frequency, start date, and end dates of Offering Periods and/or the Purchase Dates. The authority of the Committee includes, without limitation, the authority to (x) determine procedures for setting or changing payroll deduction percentages, and obtaining necessary tax withholdings, and (y) adopt amendments to the Plan in accordance with Section 17. All designations, determinations, interpretations, and other decisions by the Committee (or its delegate) regarding the Plan shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding upon all persons or entities, including, without limitation, the Company, any affiliate, any Participant, any holder or beneficiary of any option, and any shareholder of the Company. The expenses of administering the Plan shall be borne by the Company.

<sup>1</sup> To equal 2% of the Common Shares. 

<sup>2</sup> To equal 2% of the Common Shares. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee may delegate any or all of its authority and obligations under this Plan to such committee or committees (including without limitation, a committee of the Board) or officer(s) of the Company as they may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in the Plan shall be deemed to authorize the Committee to take any action contrary to applicable law or regulation, or rules of any securities exchange or inter-dealer quotation service on which the Common Stock is listed or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any delegation of authority hereunder, the Board may itself take any action permitted under the Plan in its discretion at any time, and any reference in this Plan document to the rights and obligations of the Committee shall be construed to apply equally to the Board. Any references to the Board mean the Board only.

**13. Transferability.** Neither amounts accumulated in a Participant's notional account nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way by the Participant other than by will or by the laws of descent and distribution, or as provided in Section 10. Any such attempt at assignment, transfer, pledge, or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10.

**14. Use of Funds.** All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions.

**15. Reports.** Statements of account will be made available to Participants by the Company or the Plan Administrator in the form and manner designated by the Committee.

**16. Adjustments Upon Changes in Capitalization; Corporate Transactions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to any required action by the stockholders of the Company, (i) the number of Shares covered by each option under the Plan that has not yet been exercised, (ii) the number of Shares that have been authorized for issuance under the Plan but that have not yet been placed under option, (iii) the number of Shares set forth in Section 11 above, and (iv) the Purchase Price for each then-current Offering Period shall, if applicable, be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, a reverse stock split, a stock dividend, a subdivision, combination, or reclassification of the Common Stock (including any such change in the number of shares of Common Stock effected in connection with a change in domicile of the Company), or any other increase or decrease in the number of Shares effected without receipt of consideration by the Company, or any increase or decrease in the value of a Share resulting from a spinoff, split-up or cash dividend (other than an ordinary cash dividend); <u>provided</u>, <u>however</u>, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Committee, whose determination in that respect shall be final, binding, and conclusive. Except as expressly provided above, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a dissolution or liquidation of the Company, unless otherwise provided by the Committee, any Offering Period then in progress will terminate immediately prior to the consummation of such action, with any amounts accumulated in each Participant's notional account returned to the Participant without interest as soon as practicable following such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or subsidiary of such successor corporation. If the successor corporation (or its parent or subsidiary) refuses to assume or substitute for outstanding options, each Offering Period then in progress shall be shortened and a new Purchase Date shall be set by the Committee (the "<u>New Purchase Date</u>"), as of which New Purchase Date any Offering Period then in progress will terminate. The New Purchase Date shall be on or before the date of consummation of the Corporate Transaction, and the Company shall notify each Participant in writing, at least ten (10) days prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. For purposes of this Section 16, an option granted under the Plan shall be deemed to be assumed, without limitation, if at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number and kind of shares or the same amount of property or cash, or number of securities (or combination thereof) as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the number of shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 16); <u>provided</u>, <u>however</u>, that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent or subsidiary equal in Fair Market Value to the per-Share consideration received by holders of Common Stock in the transaction. Notwithstanding the foregoing, in the event of a Corporate Transaction, the Board may elect to terminate each Offering Period then in progress, with any amounts accumulated in each Participant's notional account returned to the Participant without interest as soon as practicable following such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company consummates the sale or transfer of a Designated Subsidiary, business unit, or division to an unaffiliated person or entity, or the spin-off of a Designated Subsidiary, business unit, or division to shareholders during an Offering Period, any amounts accumulated in the notional account of each Participant employed by such Designated Subsidiary, business unit, or division, as applicable, as of the time of such sale, transfer, or spin-off with respect the offering to which such Offering Period relates will be returned to the Participant without interest as soon as practicable following such termination, and the Participant's option will be automatically terminated. For clarity, the foregoing shall not apply to any Participant whose employment is transferred to the Company or another Designated Subsidiary prior to the time of such sale, transfer, or spin-off.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The existence of the Plan shall not affect or restrict in any way the right or power of the Company, the Board, the Committee, or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization, or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants, or rights to purchase stock or of bonds, debentures, or preferred or prior-preference stocks whose rights are superior to or affect the Shares or the rights thereof or that are convertible into or exchangeable for Shares, or the dissolution or liquidation of the Company or any Affiliate, or any sale or transfer of all or any part of their assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

**17. Amendment or Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; <u>provided</u>, that no such amendment, alteration, suspension, discontinuation, or termination shall be made without shareholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any applicable rules or requirements of any securities exchange or inter-dealer quotation service on which the Shares may be listed or quoted); <u>provided</u>, <u>further</u>, that any such amendment, alteration, suspension, discontinuance, or termination that would materially and adversely affect the rights of any Participant shall not to that extent be effective without the consent of the affected Participant unless the Committee determines that such amendment, alteration, suspension, discontinuance, or termination is either required or advisable in order for the Company or the Plan to satisfy any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in Section 16, no such termination of the Plan may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Board on a Purchase Date or by the Board's setting a new Purchase Date with respect to an Offering Period then in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting principles applicable to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without stockholder consent and without regard to whether any Participant rights may be considered to have been adversely affected, the Committee shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld that may be made during an Offering Period, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant's Compensation, and establish such other limitations or procedures as the Committee determines in its sole discretion advisable that are consistent with the Plan.

**18. No Rights to Continued Employment.** Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Company or an affiliate, or to continue in the employ or the service of the Company or an affiliate.

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**19. Beneficiary Designation.** The Participant's beneficiary shall be the Participant's spouse (or domestic partner if such status is recognized by the Company and in such jurisdiction), or if the Participant is otherwise unmarried at the time of death, the Participant's estate, except to the extent that a different beneficiary is designated in accordance with procedures that may be established by the Committee from time to time for such purpose. Notwithstanding the foregoing, in the absence of a beneficiary validly designated under such Committee-established procedures and/or applicable law who is living (or in existence) at the time of death of a Participant residing or working outside the United States, any required distribution under the Plan shall be made to the executor or administrator of the estate of the Participant, or to such other individual as may be prescribed by applicable law.

**20. Equal Rights and Privileges.** Subject to local legal or regulatory requirements or restrictions applicable to non-U.S. Participants, and notwithstanding any provision of the Plan to the contrary and in accordance with Section 423 of the Code, all eligible Employees who are granted options under the Plan shall have the same rights and privileges.

**21. No Rights as a Shareholder.** Except as otherwise specifically provided in the Plan, no person shall be entitled to the privileges of ownership in respect of Shares that are subject to options hereunder until such Shares have been issued or delivered to that person.

**22. Withholding.** To the extent required by applicable federal, state, or local law, a Participant must make arrangements satisfactory to the Company for the payment of any withholding or similar tax obligations that arise in connection with the Plan.

**23. Notices.** All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

**24. Conditions Upon Issuance of Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan and the issuance and delivery of Shares under the Plan are subject to compliance with all applicable U.S. federal, state, local, and non-U.S. laws, rules, and regulations (including but not limited to state, U.S. federal, and non-U.S. securities law, and margin requirements) and to such approvals by any listing, regulatory, or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan shall be deemed amended to the extent necessary to conform to such laws, rules, and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any terms or conditions of the Plan to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any Shares pursuant to the Plan unless such Shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such Shares may be offered or sold without such registration pursuant to and in compliance with the terms of an available exemption. The Company shall be under no obligation to register for sale under the Securities Act any of the Shares to be offered or sold under the Plan. The Committee

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shall have the authority to provide that all Shares delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, U.S. federal securities laws, or the rules, regulations, and other requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer quotation service upon which such Shares are then listed or quoted and any other applicable federal, state, local or non-U.S. laws, rules, regulations, and other requirements, and the Committee may cause a legend or legends to be put on any such certificates of Common Stock delivered under the Plan to make appropriate reference to such restrictions or may cause such Common Stock delivered under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders.

**25. Term of Plan; Effective Date.** The Plan was adopted by the Board on [•], 2025, and approved by the Company's stockholders on [•], 2025. The Plan shall be effective on the date on which the registration statement covering the initial public offering of the Common Stock is declared effective by the Securities and Exchange Commission (the "<u>Effective Date</u>"), and shall continue in force and effect until terminated under Section 17. Unless sooner terminated by the Board, the Plan shall terminate upon the earliest of (i) the ten (10) year anniversary of the Effective Date and (ii) the date on which all Shares available for issuance under the Plan have been sold.

**26. Additional Restrictions of Rule 16b-3.** The terms and conditions of options granted hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the Shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

**27. Indemnification.** No member of the Board or the Committee, nor any employee or agent of the Company exercising authority delegated by the Board or the Committee hereunder (each such person, an "<u>Indemnifiable Person</u>"), shall be liable for any action taken or omitted to be taken or any determination made in the administration of the Plan (unless constituting fraud or a willful criminal act or willful criminal omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit, or proceeding to which such Indemnifiable Person may be involved as a party or witness or otherwise by reason of any action taken or omitted to be taken or determination made under the Plan and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval (not to be unreasonably withheld or delayed) in defense and settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit, or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined as provided below that the Indemnifiable Person is not entitled to be indemnified); <u>provided</u>, that the Company shall have the right, at its own expense, to assume and defend any such action, suit, or proceeding, and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of recognized standing of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions or determinations of such Indemnifiable Person giving rise to the indemnification

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claim resulted from such Indemnifiable Person's fraud or willful criminal act or willful criminal omission or that such right of indemnification is otherwise prohibited by law or by the Company's certificate of incorporation or by-laws. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the Company's certificate of incorporation or by-laws or policy, as a matter of law, individual indemnification agreement or contract or otherwise, or any other power or obligation that the Company may have to indemnify or defend such Indemnifiable Persons or hold them harmless.

**28. Nonexclusivity of the Plan.** Neither the adoption of the Plan by the Board nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options or awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

**29. No Trust or Fund Created.** The Plan shall not create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any affiliate, on the one hand, and the Participant or other person or entity, on the other hand. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or to otherwise segregate any assets, nor shall the Company maintain separate bank accounts, books, records, or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company.

**30. Reliance on Reports.** Each member of the Committee and each member of the Board (and each such member's respective designees) shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent registered public accounting firm of the Company and its affiliates and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than such member or designee.

**31. Relationship to Other Benefits.** No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance, or other benefit plan of the Company except as otherwise specifically provided in such other plan.

**32. Governing Law.** The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.

**33. Severability.** If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or entity, or would disqualify the Plan under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, such provision shall be construed or deemed stricken as to such jurisdiction, person, or entity, and the remainder of the Plan shall remain in full force and effect.

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**34. Titles and Headings.** The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings shall control.

\* \* \*

## Exhibit 10.22

**Exhibit 10.22** 

**FORM OF** 

**INDEMNIFICATION AGREEMENT** 

**by and between** 

**PHOENIX EDUCATION PARTNERS, INC.** 

**and** 

**[•]** 

**as Indemnitee** 

Dated as of [•]

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  **ARTICLE 1** | **DEFINITIONS** | 2 |
|  **ARTICLE 2**  | **INDEMNITY IN THIRD-PARTY PROCEEDINGS** | 6 |
|  **ARTICLE 3**  | **INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY** | 7 |
|  **ARTICLE 4**  | **INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL** | 7 |
|  **ARTICLE 5**  | **INDEMNIFICATION FOR EXPENSES OF A WITNESS** | 8 |
|  **ARTICLE 6**  | **ADDITIONAL INDEMNIFICATION, HOLD HARMLESS AND EXONERATION RIGHTS** | 8 |
|  **ARTICLE 7**  | **CONTRIBUTION IN THE EVENT OF JOINT LIABILITY** | 8 |
|  **ARTICLE 8**  | **EXCLUSIONS** | 9 |
|  **ARTICLE 9**  | **ADVANCES OF EXPENSES; SELECTION OF LAW FIRM** | 10 |
|  **ARTICLE 10**  | **PROCEDURE FOR NOTIFICATION; DEFENSE OF CLAIM; SETTLEMENT** | 11 |
|  **ARTICLE 11**  | **PROCEDURE UPON APPLICATION FOR INDEMNIFICATION** | 12 |
|  **ARTICLE 12**  | **PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS** | 13 |
|  **ARTICLE 13**  | **REMEDIES OF INDEMNITEE** | 15 |
|  **ARTICLE 14**  | **SECURITY** | 16 |
|  **ARTICLE 15** | **NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; PRIMACY OF INDEMNIFICATION; SUBROGATION** | 16 |
|  **ARTICLE 16**  | **ENFORCEMENT AND BINDING EFFECT** | 19 |
|  **ARTICLE 17**  | **MISCELLANEOUS** | 19 |

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**<u>FORM OF INDEMNIFICATION AGREEMENT</u>**

INDEMNIFICATION AGREEMENT, dated effective as of [•] (this "<u>Agreement</u>"), by and between Phoenix Education Partners, Inc., a Delaware corporation (the "<u>Company</u>"), and [•] ("<u>Indemnitee</u>"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in <u>Article 1</u>.

WHEREAS, the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company;

WHEREAS, in order to induce Indemnitee to provide or continue to provide services to the Company, the Company wishes to provide for the indemnification of, and advancement of expenses to, Indemnitee to the fullest extent permitted by law;

WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and scope of coverage of liability insurance provide increasing challenges for the Company;

WHEREAS, the Company's Certificate of Incorporation (as the same may be amended and/or restated from time to time, the "<u>Certificate of Incorporation</u>") requires indemnification of the officers and directors of the Company, and Indemnitee may also be entitled to indemnification pursuant to applicable provisions of the Delaware General Corporation Law ("<u>DGCL</u>");

WHEREAS, the Certificate of Incorporation and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts providing for indemnification may be entered into between the Company and members of the board of directors of the Company (the "<u>Board</u>"), executive officers and other key employees of the Company;

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and any resolutions adopted pursuant thereto and shall not be deemed a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder (regardless of, among other things, any amendment to or revocation of governing documents or any change in the composition of the Board or any Corporate Transaction); and

WHEREAS, Indemnitee will serve or continue to serve as a director, officer or key employee of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is otherwise terminated by the Company.

NOW, THEREFORE, in consideration of the promises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

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**ARTICLE 1** 

**DEFINITIONS** 

As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. "<u>Affiliate</u>" shall have the meaning set forth in Rule 405 under the Securities Act of 1933, as amended (as in effect on the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. "<u>Agreement</u>" shall have the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. "<u>Beneficial Owner</u>" and "<u>Beneficial Ownership</u>" shall have the meaning set forth in Rule 13d-3 under the Exchange Act (as in effect on the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. "<u>Board</u>" shall have the meaning set forth in the recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. "<u>Bylaws</u>" shall mean the Company's Bylaws (as the same may be amended and/or restated from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. "<u>Certificate of Incorporation</u>" shall have the meaning set forth in the recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. "<u>Change in Control</u>" shall mean, and shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acquisition of Stock by Third Party</u>. Any Person other than a Permitted Holder is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company's then outstanding Voting Securities, unless (i) the change in the relative Beneficial Ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors or (ii) such acquisition was approved in advance by the Continuing Directors and such acquisition would not constitute a Change in Control under part (c) of this definition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Board of Directors</u>. Individuals who, as of the date hereof, constitute the Board, and any new director whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or recommended by a vote of at least a majority of the directors then still in office who were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended by the directors referred to in this clause (b) (collectively, the "<u>Continuing Directors</u>"), cease for any reason to constitute at least a majority of the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Corporate Transactions</u>. The effective date of a reorganization, merger or consolidation of the Company (in each case, a "<u>Corporate Transaction</u>"), unless following such Corporate Transaction: (i) all or substantially all of the individuals and entities who were the Beneficial Owners of Voting Securities of the Company immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding Voting Securities of the Company or other Person resulting from such Corporate Transaction (including, without limitation, a corporation or other Person that as a

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result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership of Voting Securities immediately prior to such Corporate Transaction; (ii) no Person (excluding any corporation resulting from such Corporate Transaction or the Permitted Holders) is the Beneficial Owner, directly or indirectly, of 50% or more of the combined voting power of the then outstanding Voting Securities of the Company or other Person resulting from such Corporate Transaction, except to the extent that such ownership existed prior to such Corporate Transaction; and (iii) at least a majority of the board of directors of the Company or other Person resulting from such Corporate Transaction were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Corporate Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. The approval by the stockholders of the Company of a plan of complete liquidation or dissolution of the Company or the consummation of an agreement or series of related agreements for the sale or other disposition, directly or indirectly, by the Company of all or substantially all of the Company's assets, other than such sale or other disposition by the Company of all or substantially all of the Company's assets to a Person, at least 50% of the combined voting power of the Voting Securities of which are Beneficially Owned by (i) the stockholders of the Company immediately prior to such sale or (ii) the Permitted Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. "<u>Company</u>" shall have the meaning set forth in the preamble and shall also include, in addition to the resulting corporation or other entity, any constituent corporation (including, without limitation, any constituent of a constituent) absorbed in a consolidation or merger that, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, manager, managing member, employee or agent of another corporation, partnership, limited liability company, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation or other entity as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. "<u>Continuing Directors</u>" shall have the meaning set forth in Section 1.7(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. "<u>Corporate Status</u>" shall describe the status as such of a person who is or was a director, officer, trustee, general partner, manager, managing member, fiduciary, employee or agent of the Company or of any other Enterprise which such person is or was serving at the request of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. "<u>Corporate Transaction</u>" shall have the meaning set forth in Section 1.7(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. "<u>Delaware Court</u>" shall mean the Court of Chancery of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. "<u>DGCL</u>" shall have the meaning set forth in the recitals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. "<u>Disinterested Director</u>" shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15. "<u>Enterprise</u>" shall mean the Company and any other corporation, constituent corporation (including, without limitation, any constituent of a constituent) absorbed in a consolidation or merger to which the Company (or any of its wholly owned Subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner, manager, managing member, fiduciary, employee or agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16. "<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17. "<u>Expenses</u>" shall include all reasonable and documented costs, expenses and fees, including, but not limited to, attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settling or negotiating for the settlement of, responding to or objecting to a request to provide discovery in, or otherwise participating in, any Proceeding. Expenses also shall include expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent and any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments, fines or penalties against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. "<u>Indemnification Arrangements</u>" shall have the meaning set forth in <u>Section</u> <u>15.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19. "<u>Indemnitee</u>" shall have the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20. "<u>Indemnitee-Related Entities</u>" shall mean any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company, any other Enterprise controlled by the Company or the insurer under and pursuant to an insurance policy of the Company or any such controlled Enterprise) from whom an Indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part, the Company or any other Enterprise controlled by the Company may also have an indemnification or advancement obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21. "<u>Independent Counsel</u>" shall mean a law firm, or a person admitted to practice law in any state of the United States or the District of Columbia who is a member of a law firm, that is of outstanding reputation, experienced in matters of corporation law and neither is as of the date of selection of such firm, nor has been during the period of three years immediately preceding the date of selection of such firm, retained to represent: (a) the Company or Indemnitee in any material matter (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements); or (b) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine

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Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. For purposes of this definition, a "material matter" shall mean any matter for which billings exceeded or are expected to exceed $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22. "<u>Permitted Holder</u>" shall mean AP VIII Socrates Holdings, L.P., AP VIII Socrates Holdings GP, LLC, Apollo Advisors VIII, L.P., Apollo Capital Management VIII, LLC, APH Holdings, L.P., Apollo Principal Holdings A GP, Ltd., Marc Rowan, James Zelter, Scott Kleinman, Apollo Investment Fund VIII, L.P., Apollo Overseas Partners (Delaware) VIII, L.P., Apollo Overseas Partners (Delaware 892) VIII, L.P., Apollo Overseas Partners VIII, L.P., AP Socrates Co-Invest, L.P., TVG-I-E-AEG Holdings, LP, Vistria-AEG GP, LLC, The Vistria Group, LP, The Vistria Group, LLC, Adnan A. Nisar, Harreld N. Kirkpatrick III, Martin H. Nesbitt and their respective Affiliates and Related Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23. "<u>Person</u>" shall have the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act (as in effect on the date hereof); <u>provided</u>, <u>however</u>, that the term "Person" shall exclude: (a) the Company; (b) any Subsidiaries of the Company; and (c) any employee benefit plan of the Company or a Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary of the Company or of a corporation or other entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24. "<u>Proceeding</u>" shall include any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened, pending or completed proceeding, including, without limitation, any and all appeals, whether brought by or in the right of the Company or otherwise and whether of a civil (including, without limitation, intentional or unintentional tort claims), criminal, administrative or investigative nature, whether formal or informal, in which Indemnitee was, is, will or might be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer or key employee of the Company, by reason of any action taken by or omission by Indemnitee, or of any action or omission on Indemnitee's part while acting as a director or officer or key employee of the Company, or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise; in each case whether or not acting or serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement or Section 145 of the DGCL; including any proceeding pending on or before the date of this Agreement but excluding any proceeding initiated by Indemnitee to enforce Indemnitee's rights under this Agreement or Section 145 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25. "<u>Related Party</u>" shall mean, with respect to any Person, (a) any controlling stockholder, controlling member, general partner, Subsidiary, spouse or immediate family member (in the case of an individual) of such Person, (b) any estate, trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners or owners of which consist solely of one or more Permitted Holders and/or such other Persons referred to in the immediately preceding clause (a), or (c) any executor, administrator, trustee, manager, director or other similar fiduciary of any Person referred to in the immediately preceding clause (b), acting solely in such capacity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26. "<u>Section</u> <u>409A</u>" shall have the meaning set forth in <u>Section</u> <u>17.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27. "<u>Subsidiary</u>" with respect to any Person, shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28. "<u>Voting Securities</u>" shall mean any securities of the Company (or a surviving entity as described in the definition of a "Change in Control") that vote generally in the election of directors (or similar body).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29. References to "<u>fines</u>" shall include any excise tax or penalty assessed on Indemnitee with respect to any employee benefit plan; references to "<u>other enterprise</u>" shall include employee benefit plans; references to "<u>serving at the request of the Company</u>" shall include, without limitation, any service as a director, officer, employee, agent or fiduciary of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan, its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner "<u>not opposed to the best interests of the Company</u>" as referred to in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30. The phrase "<u>to the fullest extent not prohibited by (and not merely to the extent affirmatively permitted by) applicable law</u>" shall include, but not be limited to: (a) to the fullest extent authorized or permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL and (b) to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

**ARTICLE 2** 

**INDEMNITY IN THIRD-PARTY PROCEEDINGS** 

Subject to <u>Article 8</u>, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this <u>Article 2</u> if Indemnitee is, was or is threatened to be made a party to or a participant (as a witness or otherwise) in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Subject to <u>Article 8</u>, to the fullest extent not prohibited by applicable law, Indemnitee shall be indemnified against all Expenses, judgments, fines, penalties and, subject to <u>Section</u> <u>10.3</u>, amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable

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cause to believe that such conduct was unlawful. No indemnification for Expenses shall be made under this <u>Article 2</u> in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged (and not subject to further appeal) by a court of competent jurisdiction to be liable to the Company, except to the extent that the Delaware Court or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

**ARTICLE 3** 

**INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY** 

Subject to <u>Article 8</u>, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the provisions of this <u>Article 3</u> if Indemnitee is, was or is threatened to be made a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of the Company to procure a judgment in its favor. Subject to <u>Article 8</u>, to the fullest extent not prohibited by (and not merely to the extent affirmatively permitted by) applicable law, Indemnitee shall be indemnified, held harmless and exonerated against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this <u>Article 3</u> in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged (and not subject to further appeal) by a court of competent jurisdiction to be liable to the Company, except to the extent that the Delaware Court or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

**ARTICLE 4** 

**INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL** 

Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith. For the avoidance of doubt, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, then the Company shall indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each resolved claim, issue or matter, whether or not Indemnitee was wholly or partly successful; <u>provided</u> that Indemnitee shall only be entitled to indemnification for Expenses with respect to unsuccessful claims under this <u>Article 4</u> to the extent Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that such conduct was unlawful. For purposes of this <u>Article 4</u> and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, or by settlement, shall be deemed to be a successful result as to such claim, issue or matter.

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**ARTICLE 5** 

**INDEMNIFICATION FOR EXPENSES OF A WITNESS** 

Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified, held harmless and exonerated against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

**ARTICLE 6** 

**ADDITIONAL INDEMNIFICATION, HOLD HARMLESS AND EXONERATION RIGHTS** 

In addition to and notwithstanding any limitations in <u>Articles 2</u>, <u>3</u> or <u>4</u>, but subject to <u>Article</u> <u>8</u>, the Company shall indemnify, hold harmless and exonerate Indemnitee to the fullest extent not prohibited by (and not merely to the extent affirmatively permitted by) law if Indemnitee is, was or is threatened to be made a party to or a participant in, any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and, subject to <u>Section</u> <u>10.3</u>, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with the Proceeding. No indemnity shall be available under this <u>Article 6</u> on account of Indemnitee's conduct that constitutes a breach of Indemnitee's duty of loyalty to the Company or its stockholders or is an act or omission not in good faith or that involves intentional misconduct or a knowing violation of the law.

**ARTICLE 7** 

**CONTRIBUTION IN THE EVENT OF JOINT LIABILITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. To the fullest extent not prohibited by (and not merely to the extent affirmatively permitted by) law, if the indemnification rights provided for in this Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. The Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. The Company hereby agrees to fully indemnify, hold harmless and exonerate Indemnitee from any claims for contribution which may be brought by officers, directors or employees of the Company (other than Indemnitee) who may be jointly liable with Indemnitee.

**ARTICLE 8** 

**EXCLUSIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity, contribution or advancement of Expenses in connection with any claim made against Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except as provided in <u>Section</u> <u>15.4</u>, for which payment has actually been made to or on behalf of Indemnitee under any insurance policy of the Company or its Subsidiaries or other indemnity provision of the Company or its Subsidiaries, except with respect to any excess beyond the amount paid under any insurance policy, contract, agreement, other indemnity provision or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (or any similar successor statute) or similar provisions of state statutory law or common law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any Proceeding (or any part of any Proceeding) initiated or brought voluntarily by Indemnitee, including, without limitation, any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, managers, managing members, employees or other indemnitees, other than a Proceeding initiated by Indemnitee to enforce its rights under this Agreement, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) or (ii) the Company provides the indemnification payment, in its sole discretion, pursuant to the powers vested in the Company under applicable law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for the payment of amounts required to be reimbursed to the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, as amended, or any similar successor statute; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) that is prohibited by the rules of any national securities exchange on which shares of the Company's capital stock are listed for trading; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) for any payment to Indemnitee that is determined to be unlawful by a final judgment or other adjudication of a court or arbitration, arbitral or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing and under the procedures and subject to the presumptions of this Agreement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in connection with any Proceeding initiated by Indemnitee to enforce its rights under this Agreement if a court or arbitration, arbitral or administrative body of competent jurisdiction determines by final judicial decision that each of the material assertions made by Indemnitee in such Proceeding was not made in good faith or was frivolous.

The exclusions in this <u>Article 8</u> shall not apply to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against Indemnitee.

**ARTICLE 9** 

**ADVANCES OF EXPENSES; SELECTION OF LAW FIRM** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Subject to <u>Article 8</u>, the Company shall, unless prohibited by applicable law, advance the Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding within ten business days after the receipt by the Company of a statement or statements requesting such advances, together with a reasonably detailed written explanation of the basis therefor and an itemization of legal fees and disbursements in reasonable detail, from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Indemnitee shall qualify for advances, to the fullest extent permitted by this Agreement, solely upon the execution and delivery to the Company of an undertaking providing that Indemnitee undertakes to repay the advance to the extent that it is ultimately determined, by final judicial decision of a court or arbitration, arbitral or administrative body of competent jurisdiction from which there is no further right to appeal, that Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement or pursuant to applicable law. This <u>Section</u> <u>9.1</u> shall not apply to any claim made by Indemnitee for which an indemnification payment is excluded pursuant to <u>Article 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. If the Company shall be obligated under <u>Section</u> <u>9.1</u> hereof to pay the Expenses of any Proceeding against Indemnitee, then the Company shall be entitled to assume the defense of such Proceeding upon the delivery to Indemnitee of written notice of its election to do so. If the Company elects to assume the defense of such Proceeding, then unless the plaintiff or plaintiffs in such Proceeding include one or more Persons holding, together with his, her or its Affiliates, in the aggregate, a majority of the combined voting power of the Company's then outstanding Voting Securities, the Company shall assume such defense using a single law firm (in addition to local counsel) selected by the Company representing Indemnitee and other present and former directors or officers of the Company. The retention of such law firm by the Company shall be subject to prior written approval by Indemnitee, which approval shall not be unreasonably withheld, delayed or conditioned. If the Company elects to assume the defense of such Proceeding and the plaintiff or plaintiffs in such Proceeding include one or more Persons holding, together with his, her or its Affiliates, in the aggregate, a majority of the combined voting power of the Company's then outstanding Voting Securities, then the Company shall assume such defense using a single law firm (in addition to local counsel) selected by Indemnitee and any other present or former directors or officers of the Company who are parties to such Proceeding. After (x) in the case of retention of any such law firm selected by the Company, delivery of the required notice to Indemnitee, approval of such law firm by Indemnitee and the retention of such law firm by the Company, or (y) in the case of retention of any such law firm selected by Indemnitee, the completion of such retention, the Company will not be liable to

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Indemnitee under this Agreement for any Expenses of any other law firm incurred by Indemnitee after the date that such first law firm is retained by the Company with respect to the same Proceeding; <u>provided</u>, that in the case of retention of any such law firm selected by the Company (a) Indemnitee shall have the right to retain a separate law firm in any such Proceeding at Indemnitee's sole expense; and (b) if (i) the retention of a law firm by Indemnitee has been previously authorized by the Company in writing, (ii) Indemnitee shall have reasonably concluded that (1) there may be a conflict of interest between either (x) the Company and Indemnitee or (y) Indemnitee and another present or former director or officer of the Company also represented by such law firm in the conduct of any such defense, or (2) there may be defenses available to Indemnitee that are incompatible or inconsistent with those available to the Company or another present or former director represented by such law firm in the conduct of such defense, or (iii) the Company shall not, in fact, have retained a law firm to prosecute the defense of such Proceeding within thirty days, then the reasonable Expenses of a single law firm retained by Indemnitee shall be at the expense of the Company. Notwithstanding anything else to the contrary in this <u>Section</u> <u>9.2</u>, the Company will not be entitled without the written consent of the Indemnitee to assume the defense of any Proceeding brought by or in the right of the Company.

**ARTICLE 10** 

**PROCEDURE FOR NOTIFICATION; DEFENSE OF CLAIM; SETTLEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Indemnitee shall, as a condition precedent to Indemnitee's right to be indemnified under this Agreement, give the Company notice in writing promptly of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement; <u>provided</u>, <u>however</u>, that a delay in giving such notice shall not deprive Indemnitee of any right to be indemnified under this Agreement unless, and then only to the extent that, such delay is materially prejudicial to the defense of such claim. The omission or delay to notify the Company will not relieve the Company from any liability for indemnification which it may have to Indemnitee otherwise than under this Agreement. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Company will be entitled to participate in the Proceeding at its own expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. The Company shall have no obligation to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any claim effected without the Company's prior written consent, provided the Company has not breached its obligations hereunder. The Company shall not settle any claim, including, without limitation, any claim in which it takes the position that Indemnitee is not entitled to indemnification in connection with such settlement, nor shall the Company settle any claim which would impose any fine or obligation on Indemnitee or attribute to Indemnitee any admission of liability, without Indemnitee's prior written consent. Neither the Company nor Indemnitee shall unreasonably withhold, delay or condition their consent to any proposed settlement.

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**ARTICLE 11** 

**PROCEDURE UPON APPLICATION FOR INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Upon written request by Indemnitee for indemnification pursuant to the first sentence of <u>Section</u> <u>10.1</u>, a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall be made in the specific case: (a) by a majority of the Company's stockholders, (b) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (c) if a Change in Control shall not have occurred, (i) by a majority vote of the Disinterested Directors (provided there is a minimum of three Disinterested Directors), even though less than a quorum of the Board, (ii) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors (provided there is a minimum of three Disinterested Directors), even though less than a quorum of the Board, or (iii) if there are less than three Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten business days after such determination and any future amounts due to Indemnitee shall be paid in accordance with this Agreement. Indemnitee shall cooperate with the Persons making such determination with respect to Indemnitee's entitlement to indemnification, including, without limitation, providing to such Persons upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination, <u>provided</u>, that nothing contained in this Agreement shall require Indemnitee to waive any privilege Indemnitee may have. Any costs or Expenses (including, without limitation, reasonable and documented attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the Persons making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification), and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to <u>Section</u> <u>11.1</u> hereof, the Independent Counsel shall be selected as provided in this <u>Section</u> <u>11.2</u>. If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within thirty days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in <u>Article 1</u> of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such

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objection is withdrawn or a court or arbitration, arbitral or administrative body has determined that such objection is without merit. If, within thirty days after submission by Indemnitee of a written request for indemnification pursuant to <u>Section</u> <u>10.1</u> hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may seek arbitration for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the arbitrator or by such other person as the arbitrator shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under <u>Section</u> <u>11.1</u> hereof. Such arbitration referred to in the previous sentence shall be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association, and <u>Article 13</u> hereof shall apply in respect of such arbitration and the Company and Indemnitee. Upon the due commencement of any arbitration pursuant to <u>Section</u> <u>13.1</u> of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

**ARTICLE 12** 

**PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. In making a determination with respect to entitlement to indemnification hereunder, the Person making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with <u>Section</u> <u>10.1</u> of this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its Board, its Independent Counsel and its stockholders) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification or advancement of expenses is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its Board, its Independent Counsel and its stockholders) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. If the Person empowered or selected under <u>Article 11</u> of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (a) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (b) a final judicial determination that any or all such indemnification is expressly prohibited under applicable law; <u>provided</u>, <u>however</u>, that such sixty-day period may be extended for a reasonable time, not to exceed an additional thirty days, if the Person making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto, provided further that, if final selection of Independent Counsel has not occurred within thirty days after receipt by the Company of the request for indemnification, such sixty-day period may be after the final selection of Independent Counsel pursuant to <u>Section</u> <u>11.2</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement (with or without court approval), conviction, or upon a plea of <u>nolo</u> <u>contendere</u> or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. For purposes of any determination of good faith pursuant to this Agreement, Indemnitee shall be deemed to have acted in good faith if, among other things, Indemnitee's action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise, its board of directors, any committee of the board of directors or any director, or on information or records given or reports made to the Enterprise, its board of directors, any committee of the board of directors or any director, by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise, its board of directors, any committee of the board of directors or any director. The provisions of this <u>Section</u> <u>12.4</u> shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement. In any event, it shall be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

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**ARTICLE 13** 

**REMEDIES OF INDEMNITEE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. In the event that (a) a determination is made pursuant to <u>Article</u> <u>11</u> of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (b) advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to <u>Article 9</u> of this Agreement, (c) no determination of entitlement to indemnification shall have been made pursuant to <u>Section</u> <u>11.1</u> of this Agreement within thirty days after receipt by the Company of the request for indemnification and of reasonable documentation and information which Indemnitee may be called upon to provide pursuant to <u>Section</u> <u>11.1</u>, (d) payment of indemnification is not made pursuant to <u>Articles 4</u>, <u>5</u>, <u>6</u> or the last sentence of <u>Section</u> <u>11.1</u> of this Agreement within ten business days after receipt by the Company of a written request therefor, (e) a contribution payment is not made in a timely manner pursuant to <u>Article</u> <u>7</u> of this Agreement, (f) payment of indemnification pursuant to <u>Article 3</u> or <u>6</u> of this Agreement is not made within thirty days after a determination has been made that Indemnitee is entitled to indemnification or (g) the Company or any representative thereof takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Except as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee's right to seek any such award in arbitration. The award rendered by such arbitration will be final and binding upon the parties hereto, and final judgment on the arbitration award may be entered in any court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. In the event that a determination shall have been made pursuant to <u>Section</u> <u>11.1</u> of this Agreement that Indemnitee is not entitled to indemnification, any arbitration commenced pursuant to this <u>Article 13</u> shall be conducted in all respects as an arbitration on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any arbitration commenced pursuant to this <u>Article 13</u>, Indemnitee shall be presumed to be entitled to receive advances of Expenses under this Agreement and the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to <u>Section</u> <u>11.1</u> of this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences an arbitration pursuant to this <u>Article 13</u>, Indemnitee shall not be required to reimburse the Company for any advances pursuant to <u>Article 9</u> until a final determination is made with respect to Indemnitee's entitlement to indemnification (as to which all rights of appeal shall have been exhausted or lapsed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. If a determination shall have been made pursuant to <u>Section</u> <u>11.1</u> of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any arbitration commenced pursuant to this <u>Article 13</u>, absent (a) a misstatement by Indemnitee of a material fact or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification or (b) a prohibition of such indemnification under applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. The Company shall be precluded from asserting in any arbitration commenced pursuant to this <u>Article 13</u> that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate before any such arbitrator that the Company is bound by all the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. The Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten business days after the Company's receipt of such written request) pay to Indemnitee, to the fullest extent permitted by applicable law, such Expenses which are incurred by Indemnitee in connection with any arbitration brought by Indemnitee (a) to enforce his or her rights under, or to recover damages for breach of, this Agreement or any other indemnification, advancement or contribution agreement or provision of the Certificate of Incorporation, or the Bylaws now or hereafter in effect; or (b) for recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless of the outcome and whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement, contribution or insurance recovery, as the case may be (unless such arbitration was not brought by Indemnitee in good faith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. Interest shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies, or is obliged to indemnify, for the period commencing with the date on which Indemnitee requests indemnification, contribution, reimbursement or advancement of any Expenses and ending with the date on which such payment is made to Indemnitee by the Company.

**ARTICLE 14** 

**SECURITY** 

Notwithstanding anything herein to the contrary, to the extent requested by Indemnitee and approved by the Board, the Company may, as permitted by applicable securities laws, at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee.

**ARTICLE 15** 

**NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; PRIMACY OF INDEMNIFICATION; SUBROGATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. The rights of Indemnitee as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. To the extent that a change in applicable law, whether by

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statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Certificate of Incorporation, the Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. The DGCL and the Certificate of Incorporation permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements, including, but not limited to, providing a trust fund, letter of credit or surety bond ("<u>Indemnification Arrangements</u>") on behalf of Indemnitee against any liability asserted against Indemnitee or incurred by or on behalf of Indemnitee or in such capacity as a director, officer, employee or agent of the Company, or arising out of his or her status as such, whether or not the Company would have the power to indemnify Indemnitee against such liability under the provisions of this Agreement or under the DGCL, as it may then be in effect. The purchase, establishment and maintenance of any such Indemnification Arrangement shall not in any way limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto under any such Indemnification Arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, trustees, partners, managers, managing members, fiduciaries, employees or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, trustee, partner, manager, managing member, fiduciary, employee or agent under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies and Indemnitee shall promptly cooperate with any request by the Company or insurers in connection with such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of Expenses and/or insurance provided by the Indemnitee-Related Entities. The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Indemnitee-Related Entities to advance Expenses or to provide indemnification for the same Expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of Expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent not prohibited by (and not merely to the extent affirmatively permitted by) applicable law and as required by the terms of this

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Agreement and the Certificate of Incorporation or the Bylaws (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Indemnitee-Related Entities and (iii) that it irrevocably waives, relinquishes and releases the Indemnitee-Related Entities from any and all claims against the Indemnitee-Related Entities for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Indemnitee-Related Entities on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall reduce or otherwise alter the rights of Indemnitee or the obligations of the Company hereunder. Under no circumstance shall the Company be entitled to any right of subrogation or contribution by the Indemnitee-Related Entities. In the event that any of the Indemnitee-Related Entities shall make any advancement or payment on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company, the Indemnitee-Related Entity making such payment shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company, and Indemnitee shall execute all papers reasonably required and take all action reasonably necessary to secure such rights, including, without limitation, execution of such documents as are necessary to enable the Indemnitee-Related Entities to bring suit to enforce such rights. The Company and Indemnitee agree that the Indemnitee-Related Entities are express third party beneficiaries of the terms of this <u>Section</u> <u>15.4</u>, entitled to enforce this <u>Section</u> <u>15.4</u> as though each of the Indemnitee-Related Entities were a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. Except as provided in <u>Section</u> <u>15.4</u>, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee (other than against the Indemnitee-Related Entities), who shall execute all papers reasonably required and take all action reasonably necessary to secure such rights, including, without limitation, execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. Except as provided in <u>Section</u> <u>15.4</u>, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. Except as provided in <u>Section</u> <u>15.4</u>, the Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification payments or advancement of Expenses from such Enterprise. Notwithstanding any other provision of this Agreement to the contrary, (a) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification advancement, contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company's satisfaction and performance of all its obligations under this Agreement, and (b) the Company shall perform fully its obligations under this Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, contribution or insurance coverage rights against any person or entity other than the Company.

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**ARTICLE 16** 

**ENFORCEMENT AND BINDING EFFECT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to serve as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as a director, officer or key employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. This Agreement shall be effective as of the date set forth on the first page and may apply to acts or omissions of Indemnitee which occurred prior to such date if Indemnitee was an officer, director, employee or other agent of the Company, or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, at the time such act or omission occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3. The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult to prove, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including, without limitation, temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court, and the Company hereby waives any such requirement of such a bond or undertaking.

**ARTICLE 17** 

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. <u>Successors and Assigns</u>. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee's assigns, heirs, executors and administrators. The Company shall require and cause any successor (whether direct or indirect successor by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. <u>Section 409A</u>. It is intended that any indemnification payment or advancement of Expenses made hereunder shall be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance issued thereunder ("<u>Section</u> <u>409A</u>") pursuant to Treasury Regulation Section 1.409A-1(b)(10). Notwithstanding the foregoing, if any indemnification payment or advancement of Expenses made hereunder shall be determined to be "nonqualified deferred compensation" within the meaning of Section 409A, then (i) the amount of the indemnification payment or advancement of Expenses during one taxable year shall not affect the amount of the indemnification payments or advancement of Expenses during any other taxable year, (ii) the indemnification payments or advancement of Expenses must be made on or before the last day of the Indemnitee's taxable year following the year in which the expense was incurred and (iii) the right to indemnification payments or advancement of Expenses hereunder is not subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. <u>Severability</u>. In the event that any provision of this Agreement is determined by a court to require the Company to do or to fail to do an act which is in violation of applicable law, such provision (including, without limitation, any provision within a single Article, Section, paragraph or sentence) shall be limited or modified in its application to the minimum extent necessary to avoid a violation of law, and, as so limited or modified, such provision and the balance of this Agreement shall be enforceable in accordance with their terms to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4. <u>Entire Agreement</u>. Without limiting any of the rights of Indemnitee under the Certificate of Incorporation or Bylaws, this Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5. <u>Modification, Waiver and Termination</u>. No supplement, modification, termination, cancellation or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6. <u>Notices</u>. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (b) mailed by certified or registered mail with postage prepaid on the third business day after the date on which it is so mailed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide in writing to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to the Company, to:

Phoenix Education Partners, Inc.

4035 S. Riverpoint Parkway

Phoenix, AZ 85040

Attn: General Counsel

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or to any other address as may have been furnished to Indemnitee in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7. <u>Applicable Law</u>. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. If, notwithstanding the foregoing sentence, a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8. <u>Identical Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10. <u>Representation by Counsel</u>. Each of the parties has been represented by and has had an opportunity to consult legal counsel in connection with the negotiation and execution of this Agreement. No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party by any court or arbitrator or any governmental authority by reason of such party having drafted or being deemed to have drafted such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11. <u>Period of Limitations</u>. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company, the Indemnitee, or Indemnitee's spouse, heirs, executors or personal or legal representatives against the Company, Indemnitee, or Indemnitee's spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company, the Indemnitee, or Indemnitee's spouse, heirs, executors or personal or legal representatives, shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; <u>provided</u>, <u>however</u>, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12. <u>Additional Acts</u>. If for the validation of any of the provisions in this Agreement any act, resolution, approval or other procedure is required, the Company undertakes to cause such act, resolution, approval or other procedure to be affected or adopted in a manner that will enable the Company to fulfill its obligations under this Agreement.

*[Signature page follows]* 

------

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| PHOENIX EDUCATION PARTNERS, INC. | PHOENIX EDUCATION PARTNERS, INC. |
| By: |  |
|  | Name: |
|  | Title: |
| **INDEMNITEE:** | **INDEMNITEE:** |
| [•] | [•] |
| By: |  |
|  | Name: |
| Address: | Address: |

---

*[Signature Page to Indemnification Agreement]*

## Exhibit 21.1

**Exhibit 21.1** 

**Subsidiaries of the Registrant** 

---

| | |
|:---|:---|
| **Entity** | **Jurisdiction of Organization** |
| Apollo Education Group, Inc. | Arizona |
| The University of Phoenix, Inc. | Arizona |

---

## Exhibit 23.1

**Exhibit 23.1** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the use in this Registration Statement on Form S-1 of our report dated January 29, 2025, relating to the financial statements of AP VIII Queso Holdings, L.P. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Deloitte & Touche LLP

Tempe, Arizona

August 29, 2025

## Exhibit 99.1

**Exhibit 99.1** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 14, 2025

---

| | |
|:---|:---|
| By: | /s/ Christopher Lynne |
|  | Name: Christopher Lynne |

---

## Exhibit 99.2

**Exhibit 99.2** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 11, 2025

---

| | |
|:---|:---|
| By: | /s/ Andrew Bird |
|  | Name: Andrew Bird |

---

## Exhibit 99.3

**Exhibit 99.3** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 11, 2025

---

| | |
|:---|:---|
| By: | /s/ Peter Cohen |
|  | Name: Peter Cohen |

---

## Exhibit 99.4

**Exhibit 99.4** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 11, 2025

---

| | |
|:---|:---|
| By: | /s/ Jeffrey Denham |
|  | Name: Jeffrey Denham |

---

## Exhibit 99.5

**Exhibit 99.5** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 11, 2025

---

| | |
|:---|:---|
| By: | /s/ Theodore Kwon |
|  | Name: Theodore Kwon |

---

## Exhibit 99.6

**Exhibit 99.6** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 15, 2025

---

| | |
|:---|:---|
| By: | /s/ Martin H. Nesbitt |
|  | Name: Martin H. Nesbitt |

---

## Exhibit 99.7

**Exhibit 99.7** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 15, 2025

---

| | |
|:---|:---|
| By: | /s/ Adnan A. Nisar |
|  | Name: Adnan A. Nisar |

---

## Exhibit 99.8

**Exhibit 99.8** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 13, 2025

---

| | |
|:---|:---|
| By: | /s/ John Sizer |
|  | Name: John Sizer |

---

## Exhibit 99.9

**Exhibit 99.9** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 11, 2025

---

| | |
|:---|:---|
| By: | /s/ Itai Wallach |
|  | Name: Itai Wallach |

---

## Exhibit 99.10

**EXHIBIT 99.10** 

**Consent of Director Nominee of Phoenix Education Partners, Inc.** 

I hereby consent to being identified as a director nominee in the Registration Statement on Form S-1 (the "Registration Statement") of AP VIII Queso Holdings, L.P., to be converted as described in the Registration Statement into Phoenix Education Partners, Inc., a Delaware corporation, and all pre and post-effective amendments and supplements thereto, including the prospectus contained therein, and to all references to me in connection therewith and to the filing of this consent as an exhibit to such Registration Statement and any amendments or supplements thereto.

Dated: August 21, 2025

---

| | |
|:---|:---|
| By: | /s/ Johannes Worsoe |
|  | Name: Johannes Worsoe |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**AP VIII Queso Holdings, L.P.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock, par value $0.01 per share | 457(o) | $100000000.00 | 0.0001531 | $15310.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $15310.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $15310.00  |

---

 **Offering Note** <br>

<sup>1</sup> (1) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). (2) Includes the aggregate offering price of additional shares that the underwriters have the option to purchase. (3) Calculated pursuant to Rule 457(o) under the Securities Act based on an estimate of the proposed maximum aggregate offering price.

---

| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Security Type**  | **Security Class Title**  | **Amount of Securities Previously Registered**  | **Maximum Aggregate Offering Price of Securities Previously Registered**  | **Form Type**  | **File Number**  | **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

---