Document:

exhibit1062formof2019ann

                                                                                        Exhibit 10.62                                                                                                        2019 Annual Incentive Plan                                                                                                                                                                                                                                                     2019 Annual Incentive Plan                                                                                                                                                   Prepared for Jane Doe                                                                                                                                                                                                        

 

   2019 Annual Incentive Plan                                                                                                                     Table of Contents     Purpose ...................................................................................................................................................... 3   Incentive Targets ....................................................................................................................................... 3   Summary ................................................................................................................................................... 3   Base Salary ................................................................................................................................................. 4   Performance Periods ................................................................................................................................. 4   How Results Are Measured ....................................................................................................................... 4     Key Performance Results Weights ......................................................................................................... 4     Adjusted EBITDA Factor Table ............................................................................................................... 5     Unlevered Free Cash Flow Factor Table ................................................................................................ 5     Revenue Factor Table ............................................................................................................................ 6     New Enrollment Factor Table ................................................................................................................ 6       Individual Objectives.............................................................................................................................. 6   Timing of Bonus Payments ........................................................................................................................ 7     New Hire ................................................................................................................................................ 7     Internal Transfer/Promotion ................................................................................................................. 7     Termination ........................................................................................................................................... 7   Putting It All Together – How Your Bonus Payment Is Calculated ............................................................ 8     Bonus Calculation Example .................................................................................................................... 8   Additional Information .............................................................................................................................. 9   Acknowledgement..................................................................................................................................... 9                               Confidential                                                                 2  

 

   2019 Annual Incentive Plan                                                                                                                                      Purpose     It is the intent of Laureate Education, Inc. (together with its affiliates and subsidiaries, the “Company”) to reward for  results. The Annual Incentive Plan (the “Plan”) provides an incentive to participants to maximize results in areas  critical  to  the Company’s  success  during  the  current  year,  and  also  rewards  participants  for  their  individual  performance.    Incentive Targets    The following table contains your targeted bonus amount and your maximum bonus amount (each expressed as a  percentage of your base salary). You can earn up to the maximum amount if maximum results are attained by both  the Company and you.                             Bonus Target                   Maximum Bonus                         30% of base salary              60% of base salary                              $52,500                        $105,000     Summary    The level of your bonus payment will be based on the results of two components:    Business Results Component for [Corporate Employees]: 50%    The Business Results component of your bonus payout is comprised of the following factors:        1.  Meeting or exceeding Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)         threshold amount (30% of the Business Results component);     2.  Meeting or exceeding Unlevered Free Cash Flow (Operating Cash Flow – Capex + Interest) threshold amount         (30% of the Business Results component);     3.  Meeting or exceeding the Revenue threshold amount (20% of the Business Results component);     4.  Meeting or exceeding the New Enrollment threshold amount (20% of the Business Results component); and             Individual Results Component:  50%       5.  Your performance level on your Personal Objectives (100% of the Individual Results component)    Adjusted EBITDA Threshold        •   If the Adjusted EBITDA is less than 90%, no incentive payments will be made to any participant, including         you.    Internal Controls         •   It is critical to maintain Company’s position of having no material weaknesses.  If you are responsible for         any Internal Control(s), your payment under this plan may be reduced if you have a deficiency or material         weakness at the end of 2019 as determined by the Laureate Internal Controls organization.               Metric Targets     Adjusted EBITDA, Unlevered Free Cash Flow, Revenue and New Enrollment are based on total Laureate Education,  Inc. ("Laureate") targets.    Confidential                                                                                     3  

 

             2019 Annual Incentive Plan                                                                                                                                                Discretion of the Company               Notwithstanding anything contrary in this summary, any bonus that you are eligible to receive under the Plan will       be subject to the discretion, including the negative discretion, of the Compensation Committee of the Board of       Directors of Laureate.               Base Salary              Bonus calculations under the Plan will be based on a participant’s base salary as of November 1, 2019 if they have       been  in  the  same  job  for  the  entire  year.  Please  see  the  sections  below  titled  “New  Hire”,  “Internal       Transfer/Promotion” and “Termination” if you experience any of those changes during the year.                Performance Periods              The  effective  performance  period  for  this  Plan  runs  from  January  1, 2019 through  December  31, 2019 (the       “Performance Period”).              How Results Are Measured              Key Performance Results Weights              As previously noted, if the Adjusted EBITDA threshold of 90% ($570,386,351) is not met or exceeded, no payments       will be made to any participant.                 The total bonus payment will be based on Business and Individual components. The following table defines the       component factors and assigns the weighting of each:                 Component                                                               Component          Factor                                             Factor Definitions            Factors                                                                Weighting       Weighting                          Laureate’s Adjusted EBITDA results for 2019 versus a target        Adjusted EBITDA                                                                               30%                            based on the budgeted 2019 Adjusted EBITDA.            Unlevered Free   Laureate’s Unlevered Free Cash Flow results for 2019 versus a                                                                                                      30%           Cash Flow      target based on the budgeted 2019 Unlevered Free Cash Flow.                                                                                      50%                          Laureate’s Revenue results for 2019 versus a target based on            Revenue                                                                                   20%     Factors              the budgeted 2019 Revenue.                          Laureate's New Enrollment results for 2019 versus a target         New Enrollment                                                                               20%      Business Component  Component Business based on the budgeted 2019 New Enrollment.                 Individual     Individual results achieved during 2019 versus objectives as                                                                                      50%            100%             Objectives     approved by management at the start of 2019.     Individual Individual    Component                             Confidential                                                                                     4  

 

   2019 Annual Incentive Plan                                                                                                                                        Adjusted EBITDA Factor Table    Adjusted EBITDA will account for 30% of the Business Results component of your targeted bonus payment potential.  Adjusted EBITDA results will be analyzed after the end of the calendar year versus targeted Adjusted EBITDA. To  achieve any bonus payment for the Adjusted EBITDA factor of your bonus, and any bonus payment under this Plan,  the threshold level of Adjusted EBITDA must be met or exceeded. If that level is achieved, payment for Adjusted  EBITDA results will be determined according to the following table:                                         2019 Adjusted EBITDA Target     Performance                                     % Attainment of                       Adjusted EBITDA for 2019                                Bonus Factor    Against Plan                                         Target     Maximum                $697,138,873                 110%                      200%                                                                     +10.00% for every incremental 1% in    Above Target    >$633,762,612 to <$697,138,873  >100% to <110%                                                                        Adjusted EBITDA above target       Target               $633,762,612                 100%                      100%       Above                                                           -10.00% for every 1% decrease in                    >$570,386,351 to <$633,762,612   >90% to <100%     Threshold                                                          Adjusted EBITDA below target     Threshold              $570,386,351                  90%                       0%      Unlevered Free Cash Flow Factor Table     Unlevered Free Cash Flow will account for 30% of the Business Results component of your targeted bonus payment  potential. Unlevered Free Cash Flow results will be analyzed after the end of the calendar year versus the targeted  Unlevered Free Cash Flow. To achieve any bonus payment for the Unlevered Free Cash Flow factor of your bonus,  the threshold level of Unlevered Free Cash Flow must be met or exceeded.  If that level is achieved, payment for  Unlevered Free Cash Flow results will be determined according to the following table:                                     2019 Unlevered Free Cash Flow Target     Performance                                     % Attainment of                   Unlevered Free Cash Flow for 2019                           Bonus Factor    Against Plan                                         Target     Maximum                $345,578,390                 120%                      200%                                                                       +5.00% for every 1% increase in    Above Target    >$287,981,992 to <$345,578,390  >100% to <120%     Unlevered Free Cash Flow above                                                                                  target       Target               $287,981,992                 100%                      100%                                                                       -5.00% for every 1% decrease in       Above                    >$230,385,594 to <$287,981,992   >80% to <100%     Unlevered Free Cash Flow below     Threshold                                                                                  target     Threshold              $230,385,594                  80%                       0%                                      Confidential                                                                                     5  

 

   2019 Annual Incentive Plan                                                                                                                                      Revenue Factor Table    Revenue  will  account  for 20% of  the  Business  Results component of  your  targeted  bonus  payment  potential.  Revenue results will be analyzed after the end of the calendar year versus targeted Revenue. To achieve any bonus  payment for the Revenue factor of your bonus, the threshold level of Revenue must be met or exceeded. If that level  is achieved, payment for Revenue results will be determined according to the following table:                                             2019 Revenue Target    Performance                                          % Attainment of                           Revenue for 2019                                      Bonus Factor   Against Plan                                             Target    Maximum                 $3,419,069,718                   105%                    200%                                                                          +20.00% for every 1% increase   Above Target    >$3,256,256,874 to <$3,419,069,718   >100% to <105%                                                                             in Revenue above target      Target                $3,256,256,874                   100%                    100%      Above                                                               -20.00% for every 1% decrease                   >$3,093,444,030 to <$3,256,256,874    >95% to <100%    Threshold                                                                in Revenue below target    Threshold               $3,093,444,030                   95%                      0%      New Enrollment Factor Table    New Enrollment will account for 20% of the Business Results component of your targeted bonus payment potential.  New Enrollment results will be analyzed after the end of the calendar year versus targeted New Enrollment. To  achieve any bonus payment for the New Enrollment factor of your bonus, the threshold level of New Enrollment  must be met or exceeded. If that level is achieved, payment for New Enrollment results will be determined according  to the following table:                                        2019 New Enrollment Target    Performance Against                            % Attainment of                        New Enrollment for 2019                              Bonus Factor          Plan                                        Target        Maximum                 525,151                115%                      200%                                                                    +6.67% for every incremental 1% in      Above Target        >456,653 to <525,151    >100% to <115%                                                                       New Enrollment above target         Target                 456,653                100%                      100%                                                                   -6.67% for every 1% decrease in New     Above Threshold      >388,155 to <456,653    >85% to <100%                                                                         Enrollment below target        Threshold               388,155                85%                        0%      Individual Objectives     Individual objectives make up 50% of your bonus payment for the year. Objectives will be set by each participant  and their manager at the start of the year. At the end of the year, 50% of your targeted bonus will be based on the  results attained for those objectives. Results for each objective will be rated by your manager, and a final overall  percentage between 0% and 200% should be applied by the manager to this portion of the bonus. The system used  to plan incentive payments will not accept any percentage above 200%.                                     Confidential                                                                                     6  

 

   2019 Annual Incentive Plan                                                                                                                                      Timing of Bonus Payments    Bonuses, if paid at all, are paid once a year as soon as administratively practicable after the Company’s certification  of achievement against the metrics outlined above. Furthermore, the timing of bonus payments is contingent on the  publication of Laureate’s 2019 audited financials.     New Hire    Bonuses for Plan participants hired on or after March 1st of the Performance Period will be prorated depending on  the date of hire. Those hired prior to March 1st will not have their bonus prorated. For example, someone hired on  July 1st would receive a prorated bonus of 184/365ths of their projected bonus. Employees hired after November 1st  of any year are ineligible for a bonus payment for that year. Please consult your local HR partners for the new hire  date that applies to your country/region.    Internal Transfer/Promotion    Employees  transferring  from  one  bonus-eligible  position  within  the  Company  to  another  will  have  their  bonus  compensation pro-rated based on their time in each position if the change in position means a change in salary grade  and therefore eligibility. An employee who transfers from a bonus-eligible position to other positions within the  Company not covered by this Plan will be paid bonus compensation based on the job they are leaving and only for  the pro-rated period the employee actually worked in the bonus-eligible position.     Termination    Employees who leave the Company either voluntarily or involuntarily are not eligible for bonus payments under this  Plan.  To be eligible for a bonus payment, the participant must be actively employed by the Company on the exact  date that the bonuses are paid.                                        Confidential                                                                                     7  

 

               2019 Annual Incentive Plan                                                                                                                                                          Putting It All Together – How Your Bonus Payment Is Calculated                Targets were set at the start of the calendar year for each bonus plan component.                   After the end of the period, results are tabulated.  If results exceed threshold in a positive manner, and Gatekeepers        are met or exceeded, a bonus payment will be calculated using the tables above.                  Bonus Calculation Example                Annual Base Earnings:                                    $175,000        Incentive Target (as % of salary):                       30%        Annual Bonus Target:                                     $52,500 (30% of $175,000)        EBITDA Gatekeepers Met or Exceeded:                      Yes                      Business/    Bonus                           Bonus at                                 Attainment of Multiple              Individual Weight                 Factor Target   Factor Result                        Bonus Result    Factor                          Target                                       Target     Factor x               Weight   Adjusted                           30%      $7,875      $633,762,612    $621,087,360      98%       80.00%      $6,300   EBITDA  Unlevered  Free Cash                30%      $7,875      $287,981,992    $287,981,992     100%       100.00%     $7,875     Flow       50%   Revenue                 20%      $5,250     $3,256,256,874  $3,288,819,443    101%       120.00%     $6,300     New                           20%      $5,250        456,653         502,318        110%       166.67%     $8,750  Enrollment                                                                                                            Individual                                   Individual Goals Individual Results 4 (Exceeds                50%       100%      $26,250                                                 115.00%    $30,187  Objectives                                      for 2019        for 2019    Expectations)                100%                $52,500                                     TOTAL BONUS RESULT     $59,413                        This example is for illustration purposes only. Your specific salary level and results will vary from this example        and there is no guarantee that you will earn any level bonus in any given performance period.                                   Confidential                                                                                     8  

 

   2019 Annual Incentive Plan                                                                                                                                      Additional Information              Employees may not expect to participate in this Plan if they are participants in any other cash-based short-term  incentive plan of the Company. Short-term incentive plans are defined as plans for which desired results will be  achieved in 1 year or less.           The Plan may be amended, revised, replaced, or terminated at any time unilaterally by the Company.  The  Company reserves the right to interpret and implement the terms of this Plan in its sole discretion.       Incentive targets may be adjusted by the Company at its sole discretion for any reason during the course of the  Performance Period, including but not limited to changes in business conditions.     The Plan is governed by the laws of the State of Maryland.    The Plan forms a part of the Laureate Education, Inc. Amended and Restated 2013 Long-Term Incentive Plan (the  “Equity Plan”). To the extent there are any conflicts between the Plan and the Equity Plan, the terms of the Equity  Plan will control.     Nothing herein guarantees to you the right to continued employment with the Company, nor does it obligate the  Company  to  make  any  Annual Incentive  Plan  payment,  regardless  of  whether  any  of  the  performance  criteria  described herein have been met or exceeded. You will remain an at will employee at all times.    The Company retains the right to make adjustments in subsequent payments for errors that have occurred with  relation to Annual Incentive Plan payments. This includes both errors made in favor of the plan participant, and  errors made in favor of the Company.    You  agree  that, except  as  may  be  required  by  applicable  law, you  shall not  disclose  the  terms  of  this  form  (including the Company’s financial and other performance objectives disclosed herein).     Acknowledgement     In order to be eligible to receive a payment under this plan, you must review the content of this form, read the  statement below, sign this form and return it to your Human Resources representative.     I, Jane Doe, Groundskeeper for Laureate Education Inc., acknowledge that I have received, read, and understand  this Goal Document reviewing the details of the 2019 Annual Incentive Plan.            _____________________________________________________              __________________  Signature                  Jane Doe                             Date    Confidential                                                                                     9Exhibit

Exhibit 10.63

Laureate Education, Inc. Severance Policy for Executives
Effective as of July 17, 2019

NYDOCS02/1191933.12    

TABLE OF CONTENTS

ARTICLE I 
 
BACKGROUND
ARTICLE II 
 
PURPOSE
                                                                                                                        

	
			
	 
	 
	Page

	Section 2.01
	Termination of a Participant’s Employment on or following Change in Control
	1

	Section 2.02
	Termination of a Participant’s Employment (no Change in Control)
	4

	Section 2.03
	Generally applicable provisions
	5

	Section 2.04
	Definitions
	11

	Section 2.05
	Administration
	14

	Appendix A
	General Plan Information
	A-1

	Appendix B
	Claims Procedure
	B-1

	Appendix C
	ERISA Rights Statement
	C-1

	Appendix D
	Release of Claims
	D-1

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LAUREATE EDUCATION, INC. (“LAUREATE”) SEVERANCE POLICY FOR EXECUTIVES

Article I 
 
BACKGROUND
Laureate hereby adopts the Laureate Education, Inc. Severance Policy for Executives (this “Plan”) for the benefit of employees of Laureate and any of its Affiliates who are designated by the terms hereof to participate in this Plan (each such Affiliate a “Participating Company” and collectively, together with Laureate, the “Company”).  This document serves as both this Plan document and the Summary Plan Description (collectively, the “Summary”).  This Summary contains this Plan’s provisions regarding eligibility, benefits and other important information about this Plan, as required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  Each Participant should read this Summary, including Appendices A, B, and C attached hereto, and keep them for ready reference.  If Participant has any questions, Participant should contact Laureate Education, Inc., Attn:  Legal Department, 650 South Exeter Street, Baltimore, MD 21202.  This Plan is administered by the Compensation Committee (the “Compensation Committee”) of the Board of Directors of Laureate (the “Board”).  This Plan forms a part of Laureate Education, Inc. Severance Policy for Executive and Non-Executive Employees. 

ARTICLE II     
 
PURPOSE
The purpose of this Plan is to provide severance pay, continuation of certain group health care benefits at active employee rates and certain other benefits to Participants when their employment terminates under circumstances covered by this Plan.  Benefits under this Plan are conditioned on (i) termination of Participant’s employment under circumstances covered by this Plan, (ii) Participant, upon termination of employment, returning Company property to the Company by the date required by the Company and (iii) Participant’s execution of an effective and irrevocable general release of all claims against the Company, its Affiliates and other specified persons (other than with respect to the compensation and benefits described herein).  In no event will Participant’s death or Disability while employed by the Company entitle Participant to any payments or benefits under this Plan. 

Section 2.01    Termination of a Participant’s Employment on or following Change in Control.
Except as otherwise set forth herein and subject to the terms of this Plan, if a Change in Control occurs, and on, or at any time during the twelve (12)-month period following, the Change in Control, (i) the Company terminates a Participant’s employment for any reason other than Cause, or (ii) Participant terminates a Participant’s employment for Good Reason, Participant shall be entitled to the following benefits:

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(a)    Severance.
(i)    For the Chief Executive Officer (“CEO”), President, or Chief Operating Officer (“COO”) the Company shall pay Participant severance equal to two (2) times Participant’s Base Salary and target annual bonus, payable in a lump sum, within 60 days following Participant’s execution and non-revocation of the general release of claims substantially in the form attached hereto as Appendix D (the “Release”).
(ii)    For a Participant (other than the CEO, President, or COO), who is a member of the Executive Leadership Team, the Company shall pay Participant severance equal to one and a half (1.5) times Participant’s Base Salary and target annual bonus under the Annual Incentive Plan, payable in a lump sum, within 60 days following Participant’s execution and non-revocation of the Release.
(b)    Long-Term Bonus Plan.  To the extent that Participant is a participant in a Long-Term Bonus Plan at the time of the qualifying termination, Participant shall receive an amount equal to Participant’s Bonus for the applicable performance period (based on the actual performance under the terms of the Long-Term Bonus Plan under which the Bonus is payable) multiplied by a fraction, the numerator of which is the number of days in the performance period that have elapsed from the start of the performance period through the date of termination and the denominator of which is the number of days in the performance period, in a lump sum within 60 days following February 1 of the calendar year following the calendar year in which the performance period ends.
(c)    Continued Welfare Plan Coverage.  Participant and Participant’s spouse and other qualified beneficiaries shall be eligible for continued coverage under the Welfare Plans as follows:
(i)    For the CEO, President, COO and members of the Executive Leadership Team, if Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries are enrolled under any Welfare Plan that is a group health plan as defined in Title I, Part 6, of ERISA, and Section 4980B of the Code (“COBRA”), on the date of termination of Participant’s employment, Participant, Participant’s spouse and/or Participant’s qualified beneficiaries may elect to continue such coverage under COBRA.  If Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries elect COBRA coverage under any such Welfare Plan, the Company shall pay a portion of the COBRA costs each month for eighteen (18) months.  The portion to be paid by the Company shall equal the amount necessary so that the total of the COBRA costs paid by Participant is equal to the costs that would have been paid by Participant for such coverage as an active employee.
(ii)    The benefits and/or extended coverage provided under this Section 2.01(c) shall cease prior to the date such benefits and/or extended coverage would otherwise end under this Section 2.01(c) if and when Participant (A) obtains employment with another employer during the period in which Participant is entitled to severance and becomes eligible for coverage under any substantially similar plan 

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provided by his or her new employer or (B) fails to pay the required active employee portion of the cost of coverage provided under this Section 2.01(c) in the time and manner specified by the Company or its designee.
(iii)    For the avoidance of doubt, no additional benefits available under this Section 2.01(c) shall be available if Participant does not participate in a group health plan covered by COBRA. 
(d)    Accrued but Unused Vacation.  Participant shall be entitled to payment for any accrued but unused vacation in accordance with the Company’s policy in effect at the time of termination of Participant’s employment, in a lump sum within sixty (60) days following such termination.  Participant shall not be entitled to receive any payments or other compensation attributable to vacation that would have been earned had Participant’s employment continued during the period which Participant is entitled to severance, and Participant waives any right to receive any such compensation.
(e)    Outplacement Services. Participant shall be entitled to outplacement services by a firm selected by the Company for a period of up to 9 months following Participant’s termination of employment.
(f)    No Reimbursements.  Participant shall not be entitled to reimbursement for any other fringe benefits or perquisite payments during the period which Participant is entitled to severance, including but not limited to dues and expenses related to club memberships, automobile, cell phone, professional services, executive physicals, and other similar perquisites.
(g)    Certain Reductions in Payments.
(i)    Notwithstanding any other provision of this Plan or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company to Participant or for the Participant’s benefit pursuant to the terms of this Plan or otherwise (“Covered Payments”) constitute parachute payments within the meaning of Section 280G of the Code and would, but for this Section 2.01(g), be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be payable either (i) in full or (ii) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in the Participant’s receipt on an after-tax basis of the greatest amount of payments and benefits after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax).  Any such reduction shall be made by the Company in its sole discretion consistent with the requirements of Section 409A of the Code.
(ii)    Any determination required under this Section 2.01(g) shall be made in writing in good faith by the accounting firm chosen by the Company (the 

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“Accountants”).  The Company and Participant shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this Section 2.01(g).  The Company shall be responsible for all fees and expenses of the Accountants.

Section 2.02    Termination of a Participant’s Employment (no Change in Control).
Except as otherwise set forth herein and subject to the terms of this Plan, if, at any time other than on or at any time during the twelve (12)-month period following a Change in Control, the Company terminates a Participant’s employment for any reason other than Cause, Participant shall be entitled to the following benefits:
(a)    Severance.
(i)    For the CEO, President, or COO, the Company shall pay Participant severance equal to one and a half times (1.5) times Participant’s Base Salary and target annual bonus under the Annual Incentive Plan, payable over the next eighteen (18) months in equal payroll installments in accordance with the Company’s normal payroll practices (no less frequently than monthly), commencing within sixty (60) days following Participant’s execution and non-revocation of the Release.
(ii)    For a Participant (other than the CEO, President, or COO), who is a member of the Executive Leadership Team, the Company shall pay Participant severance equal to Participant’s Base Salary and target annual bonus under the Annual Incentive Plan, payable over the next twelve (12) months in equal payroll installments in accordance with the Company’s normal payroll practices (no less frequently than monthly), commencing within sixty (60) days following Participant’s execution and non-revocation of the Release.
(b)    Continued Welfare Plan Coverage.  Participant and Participant’s spouse and other qualified beneficiaries shall be eligible for continued coverage under the Welfare Plans as follows:
(i)    For the CEO, President, or COO, if Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries are enrolled under any Welfare Plan that is a group health plan as defined in COBRA, on the date of termination of Participant’s employment, Participant, Participant’s spouse and/or Participant’s qualified beneficiaries may elect to continue such coverage under COBRA.  If Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries elect COBRA coverage under any such Welfare Plan, the Company shall pay a portion of the COBRA costs each month for eighteen (18) months.  The portion to be paid by the Company shall equal the amount necessary so that the total of the COBRA costs paid by Participant is equal to the costs that would have been paid by Participant for such coverage as an active employee.

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(ii)    For a member of the Executive Leadership Team, if Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries are enrolled under any Welfare Plan that is a group health plan as defined in COBRA, on the date of termination of Participant’s employment, Participant, Participant’s spouse and/or Participant’s qualified beneficiaries may elect to continue such coverage under COBRA.  If Participant, Participant’s spouse and/or Participant’s other qualified beneficiaries elect COBRA coverage under any such Welfare Plan, the Company shall pay a portion of the COBRA costs each month for twelve (12) months.  The portion to be paid by the Company shall equal the amount necessary so that the total of the COBRA costs paid by Participant is equal to the costs that would have been paid by Participant for such coverage as an active employee.
(iii)    The benefits and/or extended coverage provided under this Section 2.02(b) shall cease prior to the date such benefits and/or extended coverage would otherwise end under this Section 2.02(b) if and when Participant (A) obtains employment with another employer during the period in which Participant is entitled to severance and becomes eligible for coverage under any substantially similar plan provided by his or her new employer or (B) fails to pay the required active employee portion of the cost of coverage provided under this Section 2.02(b) in the time and manner specified by the Company or its designee.
(iv)    For the avoidance of doubt, no additional benefits available under this Section 2.02(b) shall be available if Participant does not participate in a group health plan covered by COBRA. 
(c)    Accrued but Unpaid Vacation.  Participant shall be entitled to payment for any accrued but unused vacation in accordance with the Company’s policy in effect at the time of termination of Participant’s employment in a lump sum within sixty (60) days after such termination.  Participant shall not be entitled to receive any payments or other compensation attributable to vacation Participant would have earned had Participant’s employment continued during the period in which Participant is entitled to severance, and Participant waives any right to receive any such compensation.
(d)    Outplacement Services. Participant shall be entitled to outplacement services by a firm selected by the Company for a period of up to 9 months following Participant’s termination of employment. 
(e)    No Reimbursements.  Participant shall not be entitled to reimbursement for any other fringe benefits or perquisite payments during the period in which Participant is entitled to severance, including but not limited to dues and expenses related to club memberships, automobile, cell phone, professional services, executive physicals and other similar perquisites.

Section 2.03    Generally applicable provisions.

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(a)    Comparable Job.  Notwithstanding any other provision of this Plan, a Participant will not be entitled to any benefits under this Plan if (i) Participant has been offered a Comparable Job with the Company or any of its Affiliates within the ninety (90) days prior to any termination of employment otherwise entitling Participant to benefits hereunder (whether or not Participant accepts such offer); or (ii) such termination of employment occurs in connection with the sale of a division or business unit of the Company, whether through stock sale, asset sale or otherwise (to the extent it does not constitute a Change in Control), and (A) Participant continues employment with the acquirer or any of its Affiliates, including continued employment with the division or business unit being sold or (B) Participant has received an offer of a Comparable Job with the acquirer or any of its Affiliates, including continued employment with the division or business unit being sold and does not accept the offer or commence employment with the acquirer or any of its Affiliates.
(b)    Death or Disability.  If Participant dies or incurs a Disability while employed by the Company and prior to any event that would entitle Participant to any payment or benefits under this Plan, Participant will not be entitled to any payments or benefits under this Plan.  If Participant dies during the period in which Participant is entitled to severance, all amounts payable hereunder to Participant shall, to the extent not paid, be paid to (i) Participant’s surviving spouse, if Participant has not otherwise designated a beneficiary other than the surviving spouse or (ii) if none of the foregoing exist, then to Participant’s estate.  Participant’s surviving spouse and other qualified beneficiaries shall continue to be covered under any applicable Welfare Plan that is a group health plan as defined in COBRA on the date of the termination of Participant’s employment as described above.  On the death of Participant’s surviving spouse or other qualified beneficiaries, no further benefits under any applicable Welfare Plan shall be provided (other than any coverage required pursuant to COBRA), and no further benefits shall be paid.
(c)    Restrictive Covenants.  Benefits under this Plan are contingent (i) upon Participant continuing to comply with any Confidentiality, No Solicitation and Non-Compete Agreement, (ii) any other restrictive covenants under any equity award agreement or otherwise to which Participant is a party with the Company, and (iii) any restrictive covenants contained in the applicable severance agreement or Release under this Plan.  If Participant breaches any aspects of any such agreement, Participant shall forfeit the right to receive any further benefits under this Plan, and, to the extent allowed by applicable law, Participant agrees to return to the Company the gross amount of all payments previously received and the gross value of any non-cash benefits previously received.
(d)    General Release.  As a condition to receive benefits under this Plan, Participant must sign and return a Release, within twenty-one (21) or forty-five (45) days, as applicable, after the termination of Participant’s employment and not revoke such release within the time permitted by law (which revocation period may not exceed seven (7) days following Participant’s execution of the Release).  Notwithstanding any provision in this Plan to the contrary, no payments to be made under this Plan shall be made, and no benefits to be delivered under this Plan shall be delivered, earlier than the first payroll date after the date upon which the revocation period for the Release described in this Section expires without Participant having 

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elected to revoke the Release.  Any payments to be made prior to such date shall be accumulated and paid, and any benefits to be delivered prior to such date shall be continued at Participant’s expense with Participant to be reimbursed, on such date.  Additionally, if the period for executing the Release and considering revocation of same spans more than one calendar year, no payments to be made under this Plan shall be made, and no benefits to be delivered under this Plan shall be delivered, earlier than the first payroll date occurring in the subsequent calendar year, and any payments to be made prior to such date shall be accumulated and paid, and any benefits to be delivered prior to such date shall be continued at Participant’s expense with Participant to be reimbursed, on such date in the subsequent calendar year.
(e)    Return of Company Property.  As a further condition to receiving benefits under this Plan, Participant is required to cooperate with the Company’s usual and customary separation/termination process, including, to the extent required by the Company, surrender and delivery of all Company property, including without limitation, identification cards, vehicles, company credit cards and computer equipment, prior to the earliest date on which any payments to be made under this Plan are to commence or otherwise be paid, unless the Company permits Participant to retain any such items.
(f)    Participant Assignment.  No interest of Participant or Participant’s spouse or any other beneficiary under this Plan, or any right to receive any payment or distribution hereunder, shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind, nor may such interest or right to receive a payment or distribution be taken, voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other claims against, Participant or spouse or other beneficiary, by operation of law or otherwise, other than pursuant to the terms of a qualified domestic relations order to which Participant is a party.
(g)    Funding.  All rights of Participant and Participant’s spouse or other beneficiary under this Plan shall be entirely unfunded at all times, and no provision shall at any time be made with respect to segregating any assets of the Company for payment of any amounts due hereunder.  Neither Participant nor Participant’s spouse or other beneficiary shall have any interest in or rights against any specific assets of the Company, and Participant and Participant’s spouse or other beneficiary shall have only the rights of a general unsecured creditor of the Company.
(h)    Section 409A.
(i)    The amounts payable or benefits to be provided pursuant to this Plan generally are intended to be separate payments that are exempt from Section 409A of the Code by reason of the “short-term deferral” exception or the involuntary separation pay exception (also known as the “two (2)-times rule”) set forth in Section 1.409A-1(b)(9)(iii) or certain other separation pay exceptions set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations, to the maximum extent permitted by Section 409A of the Code (with the earliest amounts payable to be first treated as exempt from Section 409A of the Code to the extent such exemptions are available).  To the extent that an amount payable or benefits to be provided under this Plan does not comply with any of the 

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foregoing exceptions or other exceptions or exemptions from Code Section 409A, including but not limited to the de minimis exception, the exception for certain indemnification and liability insurance plans, and the like under the Treasury Regulations, then the amount shall be subject to the following rules:
(A)    Notwithstanding anything contained in this Agreement to the contrary, if on the date of termination of Participant’s employment Participant is a “specified employee,” within the meaning of Section 409A of the Code and the Company’s policy for determining specified employees, then to the extent required in order to comply with Section 409A of the Code, all payments, benefits, or reimbursements paid or provided under this Agreement that constitute a “deferral of compensation” within the meaning of Section 409A of the Code, that are provided as a result of a “separation from service” within the meaning of Section 409A and that would otherwise be paid or provided during the first six (6) months following the date of such termination of employment shall be accumulated through and paid or provided (together with interest at the applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the date of termination of employment) within thirty (30) days after the first business day following the six (6)-month anniversary of such termination of employment, if and to the extent required by Code Section 409A.
(B)    The benefits described in this Plan that are taxable benefits (and that are not disability pay or death benefit plans within the meaning of Section 409A of the Code) are intended to comply, to the maximum extent possible, with the exception to Section 409A of the Code set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations.  To the extent that any of those benefits either do not qualify for that exception or are provided beyond the applicable COBRA time periods set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations, then they shall be subject to the following additional rules:  (1) any reimbursement of eligible expenses shall be paid within sixty (60) calendar days following Participant’s written request for reimbursement; provided that Participant provides written notice no later than seventy-five (75) calendar days prior to the last day of the calendar year following the calendar year in which the expense was incurred so that the Company can make the reimbursement within the time period required by Section 409A of the Code; (2) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other calendar year; (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (4) each payment shall be treated as a separate payment.
(ii)    For purposes of this Plan, the phrase “termination of employment” or words or phrases of similar import shall mean a “separation from service” with the Company within the meaning of Section 409A of the Code.  In this regard, the Company and Participant shall take all steps necessary (including with regard to any post-

8

termination services by Participant) to ensure that (A) any termination of employment under this Plan constitutes a “separation from service” within the meaning of Section 409A of the Code, and (B) the date on which such separation from service takes place shall be the date of the termination of employment for purposes of this Plan.
(iii)    It is intended that the payments and benefits provided under this Plan shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code.  This Plan shall be construed, administered, and governed in a manner that effects such intent, and the Company shall not take any action that would be inconsistent with such intent.  Without limiting the foregoing, the payments and benefits provided under this Plan may not be deferred, accelerated, extended, paid out, or modified in a manner that would result in the imposition of an additional tax under Section 409A of the Code upon Participant.  Although the Company shall use its best efforts to avoid the imposition of taxation, interest, and penalties under Section 409A of the Code, the tax treatment of the benefits provided under this Plan is not warranted or guaranteed.  Neither the Company, its Affiliates, nor their respective directors, officers, employees, or advisers shall be held liable for any taxes, interest, penalties, or other monetary amounts owed by Participant or other taxpayers as a result of the failure of this Plan to be exempt from or comply with Section 409A of the Code.
(i)    Taxes.  The Participant will be solely responsible for any associated tax filings and payment of taxes associated with employment, without any gross-up or additional compensation from the Company; provided that the Company will withhold taxes at what it determines to be appropriate rates and in what it determines to be appropriate jurisdictions based on the information available to the Company.
(j)    No Employment Contract.  Nothing contained in this Plan shall be construed to be an employment contract between Participant and the Company.  Participant is employed at will, and the Company and Participant may terminate Participant’s employment at any time, for any reason or no reason whatsoever, subject to any other offer letter or employment agreement between the Company and such Participant to the contrary.
(k)    Severability.  In the event any provision of this Plan is held illegal or invalid, the remaining provisions of this Plan shall not be affected thereby.
(l)    Amendment.  This Plan may only be terminated or amended by resolution adopted by the Board or the Compensation Committee; provided, however, that (i) no amendment or termination of this Plan shall affect the rights of any Participant receiving benefits under this Plan whose employment has terminated prior to the date on which such resolution is adopted; and (ii) this Plan may not be terminated or amended in a manner which would adversely affect the rights or potential rights of any Participant if such action is taken in connection with, in anticipation of, or on, or during the twelve (12)-month period following, a Change in Control.  Notwithstanding the foregoing, the Company may not amend any provision of this Plan that involves any delegation of authority reserved to the Board or the Compensation Committee (without the applicable party’s approval).

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(m)    Effect on Other Plans.  This Plan supersedes in all respects any other severance benefit plans, arrangements or policies of the Company that apply to Participants, but does not supersede any employment agreements between Participant and the Company.  No Participant shall be eligible to receive severance benefits under more than one severance arrangement of the Company (whether through an employment agreement or a benefit plan) at any time; provided that if the total benefits under an employment agreement are less than the total benefits provided for under this Plan, then the Participant shall be eligible to receive the difference between the benefits provided under the employment agreement and this Plan, under this Plan.  Nothing in this Plan shall be construed to impair or reduce Participant’s right to any other accrued and vested but unpaid benefit (including in the Company’s 401(k) plan) nor create a right or entitlement to any additional benefit except as expressly described herein.  Notwithstanding the foregoing, the Company and the Board reserve the right to adhere to other policies and practices that may be in effect for other groups of employees or for new Participants who are not employed or provide services to the Company as of the Effective Date. 
(n)    No Effect on Equity Awards.  This Plan does not alter or amend any vesting or other terms and conditions of any equity-based compensation awards under the Company’s equity incentive compensation plans (including, but not limited to, the Laureate Education, Inc. Amended and Restated 2013 Long-Term Incentive Plan), which shall be governed by the terms and conditions set forth in the equity incentive compensation plans and separate written grant agreements.
(o)    No Duplication of Benefits.  Unless otherwise specifically provided by the terms of this Plan or any other applicable plan or arrangement with an express reference to this Plan, any benefits or compensation a Participant is eligible to receive under this Plan shall be reduced by any benefits or compensation a Participant is eligible to receive as a result of applicable law or under any employment agreement with the Company providing for severance. 
(p)    Successors.  This Plan shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, representatives, and successors.  Any reference in this Plan to Laureate shall be deemed a reference to any successor (whether direct or indirect, by purchase of stock or assets, merger or consolidation, or otherwise) to all or substantially all of the business and/or assets of Laureate; provided that Participant’s employment by a successor employer shall not be deemed a termination of Participant’s employment with Laureate or any of its Affiliates (unless otherwise required in order to comply with the definition of “separation from service” under Section 409A of the Code).
(q)    Setoff.  The Company’s obligation to make the payments provided for in Section 2.01 of this Plan only and otherwise to perform its obligations thereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim, right, or action which the Company or any of its Affiliates may have against Participant.  The Company’s obligation to make the payments provided for in Section 2.02 or Section 2.03 of this Plan and otherwise to perform its obligations thereunder, however, may be affected by any set-off, counterclaim, recoupment, defense, or other claim, right, or action which the Company or any of its Affiliates may have against Participant.  Notwithstanding any other provision of this Plan, except as 

10

otherwise set forth in this Plan, in no event shall Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Participant under any of the provisions of this Plan, and such amounts shall not be reduced whether or not Participant obtains other employment.
(r)    Applicable Law.  This Plan shall be governed and construed in accordance with the laws of the State of Maryland.

Section 2.04    Definitions.  For purposes of this Plan, the following words shall have the meanings set forth below:
(a)    “Affiliate” shall mean any corporation, trade or business or other entity, including but not limited to partnerships, limited liability companies and joint ventures, directly or indirectly controlling, controlled by or under common control with a Person, within the meaning of Section 405 of the Securities Act.  Affiliate includes any corporation, trade or business or other entity that becomes such on or after the Effective Date.
(b)    “Base Salary” shall mean:
(i)    If there has been a Change in Control, Participant’s annual base salary at the rate in effect on the date of the Change in Control, or if greater, the rate in effect immediately prior to Participant’s termination of employment with the Company (not counting any decrease that results in Good Reason).
(ii)    If there has not been a Change in Control, Participant’s annual base salary at the rate in effect immediately prior to Participant’s termination of employment (not counting any decrease that results in Good Reason).
(c)    “Board” means the Board of Directors of Laureate Education, Inc.
(d)    “Bonus” shall mean the amount otherwise payable under the applicable Long Term Bonus Plan if Participant was employed on the payment date, based on the position held by Participant, or any successor plan or arrangement covering Participant.
(e)    “Cause” shall have the same meaning it has under the Laureate Education, Inc. Amended and Restated 2013 Long-Term Incentive Plan. 
(f)    “Change in Control” shall be deemed to have occurred upon the first occurrence of an event set forth in any one of the following paragraphs:
(i)    a Change in Ownership of Laureate, or (ii) a Change in the Ownership of Assets of Laureate, as described herein and construed in accordance with Section 409A. 
(ii)    A “Change in Ownership of Laureate” shall occur on the date that any Person acquires, or Persons Acting as a Group acquire, in a single 

11

transaction or a series of related transactions, ownership of the capital stock of Laureate that, together with the stock held by such Person or Group, constitutes more than 50% of the total voting power of the capital stock of Laureate.  However, if any Person is, or Persons Acting as a Group are, considered to own more than 50% of the total voting power of the capital stock of Laureate, the acquisition of additional stock by the same Person or Persons Acting as a Group is not considered to cause a Change in Ownership of Laureate unless such transaction would be deemed to be a Rule 13e-3 Transaction under the Exchange Act.  An increase in the percentage of capital stock owned by any Person, or Persons Acting as a Group, as a result of a transaction in which Laureate acquires its stock in exchange for property will be treated as an acquisition of stock. 
(iii)    A “Change in the Ownership of Assets of Laureate” shall occur on the date that any Person acquires, or Persons Acting as a Group acquire (or has or have acquired during the 12- month period ending on the date of the most recent acquisition by such Person or Persons), assets from Laureate that have a total gross fair market value equal to or more than 80% of the total gross fair market value of all of the assets of Laureate immediately before such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of Laureate, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 
(iv)    A “Person” for purposes of this definition only means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, other than (1) employee benefit plans sponsored or maintained by Laureate and by entities controlled by Laureate, or (2) any underwriter of the capital stock of Laureate in a registered public offering.
(v)    For purposes of clauses (i) and (ii) above, Persons will not be considered to be Persons Acting as a Group (or Group) solely because they purchase or own capital stock or purchase assets of Laureate at the same time.  However, Persons will be considered to be Persons Acting as a Group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with Laureate.  If a Person owns stock in both entities that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a Group with other shareholders only with respect to the ownership in that entity before the transaction giving rise to the change and not with respect to the ownership interest in the other entity.
(vi)    A Change in Control shall not include a transfer of assets to a related person as described in Section 409A or a public offering of capital stock of Laureate.
(vii)     For purposes of the definition of Change in Control, Section 318(a) of the Code applies to determine stock ownership.  Stock 

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underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option).  For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Treasury Regulation §1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option.
(g)    “Code” means the Internal Revenue Code of 1986, as amended.
(h)    “Comparable Job” means a job offering (i) no material reduction in base salary or annual cash compensation opportunity (i.e., base salary plus target bonus) (unless such material reduction applies generally to all similarly-situated employees); (ii) no material adverse reduction in job scope or responsibilities (unless such material reduction applies generally to all similarly-situated employees); and (iii) no change by more than fifty (50) miles in the principal location in which Participant is required to perform services.
(i)    “Compensation Committee” means the Compensation Committee of the Board.
(j)    “Disability” means the inability of Participant 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.  Participant shall also be treated as having a “Disability” if he is, by reason of a medically determinable physical or mental impairment that 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 Company.
(k)    “Effective Date” means July 17, 2019.
(l)    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.
(m)    “Executive Leadership Team” shall mean the Executive Leadership Team as designated by the CEO.
(n)    “Good Reason” means the occurrence of any of the following without the Participant’s consent:  (i) material diminution in the base salary of the Participant, (ii) material diminution in the authority, duties or responsibilities of the Participant, or (iii) a relocation by more than fifty (50) miles in the principal location in which Participant is required to perform services; provided that “Good Reason” shall not exist unless and until Participant provides the Company with written notice of the acts alleged to constitute Good Reason within ninety (90) days of Participant’s knowledge of the occurrence of such event, and the Company fails to cure such acts within thirty (30) days 

13

of receipt of such notice, if curable.  Participant must terminate employment within sixty (60) days following the expiration of such cure period for the termination to be on account of Good Reason. 
(o)     “Long Term Bonus Plan” shall mean the Laureate Education, Inc. Executive Cash Long Term Bonus, in its current form or as hereafter amended.
(p)     “Participant” means any individual serving as the CEO, President, COO or a member of the Executive Leadership Team. 
(q)    “Person” means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency, body or department (except that this definition shall not apply with respect to the definition of “Change in Control” herein).
(r)    “Securities Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder.
(s)    “Welfare Plan” shall mean any plan or arrangement providing health, prescription drug, vision, dental, disability, death, or life insurance benefits that is currently or hereafter made available by the Company or an Affiliate in which Participant is eligible to participate.

Section 2.05    Administration.
(a)    Administrator.  The Compensation Committee shall be responsible for and shall control and manage the operation and administration of this Plan.  The Compensation Committee shall have the responsibility for determining the amount of payments and benefits to which Participants may become entitled to receive.  Any action by the Compensation Committee under this Plan shall be made by resolution, or by any person or committee duly authorized by resolution of the Compensation Committee to take such action.
(b)    Powers of the Administrator.  The Compensation Committee shall administer this Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of this Plan.  The Compensation Committee shall have the discretionary authority to interpret and construe the terms of this Plan and determine all questions arising in the administration, interpretation, and application of this Plan, such determinations to be presumptively conclusive and binding on all persons to the maximum extent allowed by law, and uniformly and consistently applied to all persons in similar circumstances; adopt such rules and procedures as it deems necessary, desirable or appropriate for the administration of this Plan; appoint such agents, counsel, accountants, consultants and other persons as may be required to administer this Plan; determine all claims for benefits, and take such further action as the Compensation Committee shall deem advisable in the administration of this Plan.

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(c)    Delegation.  The Compensation Committee shall have the discretionary authority to delegate such of its duties and may engage such experts and other persons as it deems appropriate in connection with administering this Plan.  The Compensation Committee shall be entitled to rely conclusively upon, and shall be fully protected in any action taken by the Compensation Committee, in good faith in reliance upon, any opinions or reports furnished to it by any such experts or other persons.

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