Document:

exv10w1

Exhibit 10.1

MATRIXX INITIATIVES, INC.

2001 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK PROGRAM AGREEMENT

This Restricted Stock Program Agreement (this “Agreement”) is entered into between Matrixx
Initiatives, Inc., a Delaware corporation (the “Company”), and                      (the
“Grantee”), as of                     , 20___ (the “Date of Grant”).

RECITALS

     A. The Company has adopted the Matrixx Initiatives, Inc. 2001 Long-Term Incentive Plan, as
amended (the “Plan”) to allow the Company to make grants that will provide an incentive to
attract and retain eligible individuals whose services are considered unusually valuable by
providing them an opportunity to have a proprietary interest in the success of the Company.

     B. The Company believes that entering into this Agreement with Grantee is consistent with the
above stated purposes.

     C. Any capitalized term not otherwise defined will have the meaning ascribed to it in the
Plan.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions in this Agreement and
for other good and valuable consideration, the Company and Grantee agree as follows:

          1. GRANT OF RESTRICTED SHARES.

          Subject to the terms of this Agreement, pursuant to action taken by the Compensation Committee
of the Company’s Board of Directors on                     , 20___, the Company hereby grants                     
shares (the “Restricted Shares”) of the Company’s common stock (the “Common Stock”)
to Grantee. The delivery of any documents evidencing the Restricted Shares granted pursuant to
this Agreement shall be subject to the provisions of Section 3.E below.

          2. RIGHTS OF GRANTEE.

          Subject to the provisions of this Agreement and the Plan, upon the issuance by the Company to
Grantee of any Restricted Shares pursuant hereto, Grantee will become a shareholder with respect to
all of the Restricted Shares granted to Grantee pursuant to Section 1 and will have all of
the rights of a shareholder in the Company with respect to such Restricted Shares, including,
without limitation, the right to receive notice of, attend and vote at meetings of the Company’s
shareholders and to receive any dividend on such Restricted Shares that the Company may declare and
pay from time to time; provided, however, that such Restricted Shares will be subject to the
restrictions set forth in this Agreement.

          3. RESTRICTIONS ON COMMON STOCK SUBJECT TO THIS AGREEMENT.

               A. Limitations on Transfer.

               Grantee agrees to not sell, transfer, pledge, exchange, hypothecate, grant any security
interest in, or otherwise dispose of, any Restricted Shares before the date on which

 

 

the
restrictions lapse under Section 3.B, or enter into any agreement or make any commitment to
do so. Any attempted sale, transfer, pledge, exchange, hypothecation or disposition of the
Restricted Shares shall be null and void, and the Company shall not recognize or give effect to
such transaction on its books and records (including the books and records of the Company’s
transfer agent) or recognize the person or persons to whom such sale, transfer, pledge, exchange,
hypothecation or disposition has been made as the legal or beneficial owner of the Restricted
Shares.

               B. Lapse of Restrictions.

               Subject to the other conditions in this Section 3, the restrictions on disposition of
the Restricted Shares will lapse under the following schedule:

	 	•	 	one-third (1/3) of such Restricted Shares (                    ) shall vest on the
first anniversary of the Date of Grant;
	 
	 	•	 	one-third (1/3) of such Restricted Shares (                    ) shall vest on the
second anniversary of the Date of Grant; and
	 
	 	•	 	one-third (1/3) of such Restricted Shares (                    ) shall vest on the
third anniversary of the Date of Grant.

               C. Accelerated Vesting.

               Notwithstanding the provisions of Section 3.B hereof, all of the Restricted Shares, to
the extent not already vested, shall fully vest on the first to occur of the following dates: (i)
the effective date of a Change of Control (as that term is defined in the form of Change of Control
Agreement filed with the Securities Exchange Commission on March 13, 2006 as Exhibit 10.12
to the Company’s 2005 Form 10-K), and (ii) the date on which Grantee ceases to be employed by the
Company on account of his death or Disability (as that term is defined in the Plan); provided,
however, that the restrictions on the disposition of the Restricted Shares will not lapse unless
Grantee is employed by the Company or any Subsidiary (as that term is defined in the Plan) as of
the date the restrictions expire.

               D. Forfeiture of Restricted Shares.

               Notwithstanding the provisions of Section 3.B hereof, if Grantee is an employee of the
Company on the Date of Grant, and Grantee’s employment is terminated by the Company or Grantee for
any reason other than death or Disability (as that term is defined in the Plan) on or after the
Date of Grant but prior to the lapse of any of the restrictions pursuant to Sections 3.B
above, Grantee shall forfeit the Restricted Shares that are at that time subject to restrictions.

               E. Issuance of Certificates.

               The Company shall only be required to issue stock certificates representing those Restricted
Shares whose restrictions have lapsed in accordance with the provisions of this Agreement. Within
sixty (60) days following the lapse of restrictions on the Restricted Shares, the Company shall
issue to Grantee a stock certificate representing such Restricted Shares. In connection with such
issuance, Grantee may return to the Company for cancellation any previously issued stock
certificate representing other Restricted Shares and request that the Company issue one (1) or more
stock certificates representing the previously issued Restricted Shares and the newly lapsed
Restricted Shares, whereupon the Company shall issue such stock certificate(s) to Grantee in
accordance with Grantee’s instructions.

          4. SECURITIES ACT.

               A. Registration.

 

 

               The Company has the right, but not the obligation, to cause any of the Restricted Shares
issued or issuable hereunder to be registered under the appropriate rules and regulations of the
Securities and Exchange Commission.

               B. Condition on Delivery of Stock.

               The Company will not be required to deliver any Restricted Shares issuable hereunder if, in
the opinion of counsel for the Company, the issuance would violate the Securities Act of 1933 or
any other applicable federal or state securities laws or regulations. The Company may require
Grantee, prior to or after the issuance of any Restricted Shares hereunder, to sign and deliver to
the Company a written statement, in form and content acceptable to the Company in its sole
discretion, that Grantee (i) is acquiring the shares for investment and not with a view to the sale
or distribution thereof, (ii) will not sell any of such shares or any other Common Stock of the
Company that Grantee may then own or hereafter acquire except with the prior written approval of
the Company, and (iii) will comply with the Securities Act of 1933, the Securities Exchange Act of
1934 and all other applicable federal and state securities laws and regulations.

               C. Legend.

               Share certificates representing any Restricted Shares issued hereunder, to the extent issued,
will bear a legend restricting the transferability of such Restricted Shares in substantially the
following form:

“The securities represented by this certificate may not be sold,
pledged, or otherwise disposed of until the restrictions set forth
in the Restricted Stock Agreement dated                     , between
Matrixx Initiatives, Inc. and                      are satisfied.”

          5. REPRESENTATIONS OF GRANTEE.

          In connection with Grantee’s receipt of the Restricted Shares, Grantee hereby represents and
warrants to the Company as follows:

               A. Further Limitations on Disposition.

               Grantee understands and acknowledges that Grantee may not make any disposition, sale, or
transfer (including transfer by gift or operation of law) of all or any portion of the Restricted
Shares except as provided in this Agreement. Moreover, Grantee agrees to make no disposition of
all or any portion of the Restricted Shares unless and until: (i) there is then in effect a
registration statement under the Securities Act of 1933 covering such proposed disposition and such
disposition is made in accordance with said Registration Statement; (ii) the resale provisions of
Rule 701 or Rule 144 are available in the opinion of counsel to the Company; or (iii)(A) Grantee
notifies the Company of the proposed disposition and has furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, (B) Grantee furnishes the
Company with an opinion of Grantee’s counsel to the effect that such disposition will not require
registration of such Restricted Shares under the Securities Act, and (C) such opinion of Grantee’s
counsel shall have been concurred with by counsel for the Company and the Company shall have
advised Grantee of such concurrence.

               B. Determination of Fair Market Value.

               Grantee understands Fair Market Value of the Restricted Shares shall be determined in
accordance with Section 3.1 of the Plan.

               C. Section 83(b) Election.

               Grantee understands that Section 83 of the Internal Revenue Code of 1986 (the “Code”)
taxes as ordinary income the difference between the amount paid for the Restricted Shares and the
Fair Market Value of the Restricted Shares as of the date any

 

 

restrictions on the Restricted Shares
lapse. In this context, “restriction” means the restrictions set forth in Section 3.
Grantee understands that he may elect to be taxed at the time the Restricted Shares are granted
rather than when and as the restrictions on Restricted Shares lapse by filing an election under
Section 83(b) of the Code with the Internal Revenue Service within 30 days from
the Date of Grant. Grantee understands that failure to make this filing timely will result in
the recognition of ordinary income by Grantee, when the Restricted Shares restrictions lapse, on
the Fair Market Value of the Restricted Shares at the time such restrictions lapse.

GRANTEE ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY AND
NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b),
EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO
MAKE THIS FILING ON GRANTEE’S BEHALF.

          6. NONTRANSFERABILITY OF AGREEMENT.

          Grantee may not assign or transfer Grantee’s rights under this Agreement, nor may Grantee
subject such rights (or any of them) to execution, attachment, garnishment or similar process. In
the event of any such occurrence, this Agreement, and all of Grantee’s rights hereunder, will
automatically be terminated and will thereafter be null and void.

          7. FEDERAL AND STATE TAXES.

          Grantee may incur certain liabilities for federal, state or local taxes in connection with the
issuance of the Restricted Shares hereunder, and the Company may be required by law to withhold
such taxes. Upon determination of the year in which such taxes are due and the determination by
the Company of the amount of taxes required to be withheld, Grantee shall pay an amount equal to
the amount of federal, state or local taxes required to be withheld to the Company. If Grantee
fails to make such payment in a timely manner, the Company may withhold and set-off against
compensation payable to Grantee the amount of such required payment.

          8. ADJUSTMENT OF SHARES.

          The number of Restricted Shares issued to Grantee pursuant to this Agreement will be adjusted
in accordance with Article 11 of the Plan in the event of a change in the Company’s capital
structure. Such number of shares may also be adjusted based on any withholding of compensation by
the Company as provided in the last sentence of Section 7 hereof.

          9. AMENDMENT OF THIS AGREEMENT; TERMINATION.

          This Agreement may only be amended with the written approval of Grantee and the Company.
Notwithstanding the foregoing sentence, the Company may at any time, upon written notice to
Grantee, (i) amend or terminate the Plan, or (ii) terminate this Agreement; provided, however, that
termination of this Agreement by the Company will be with respect to future issuances of Restricted
Shares only, and will have no effect on Grantee’s or the Company’s rights and obligations
hereunder, including, outstanding restrictions on the sale, transfer, pledge, exchange,
hypothecation or disposition of the Restricted Shares issued to Grantee hereunder before the
effective date of such termination.

          10. GOVERNING LAW.

          This Agreement shall be governed in all respects, whether as to validity, construction,
capacity, performance, or otherwise, by the laws of the State of Arizona, without giving effect to
choice of law rules.

 

 

          11. SEVERABILITY.

          If any provision of this Agreement, or the application of any such provision to any person or
circumstance, is held to be unenforceable or invalid by any court of competent
jurisdiction or under any applicable law, the parties hereto will negotiate an equitable
adjustment to the provisions of this Agreement with the view to effecting, to the greatest extent
possible, the original purpose and intent of this Agreement, and in any event, the validity and
enforceability of the remaining provisions of this Agreement will not be affected thereby.

          12. ENTIRE AGREEMENT.

          This Agreement and the provision of the Plan applicable hereto constitute the entire, final
and complete agreement between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements, promises, understandings, negotiations, representations and
commitments, both written and oral, between the parties hereto with respect to the subject matter
hereof. Neither party hereto will be bound by or liable for any statement, representation,
promise, inducement, commitment or understanding of any kind whatsoever not expressly set forth in
this Agreement or in the Plan.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized representative and Grantee has signed this Agreement as of the day and year first
written above.

	 	 	 	 	 	 	 
	 	 	MATRIXX INITIATIVES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	GRANTEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Nameexv10w1

SENIOR MANAGEMENT AGREEMENT

     This Senior Management Agreement (“Agreement”) is entered into August 24, 2005,
between Significant Education, Inc., a Delaware corporation (the “Company”), and Brent
Richardson (“Executive”). Terms used in this Agreement and not otherwise defined shall
have the meanings set forth in Article 4 of this Agreement.

     WHEREAS, the Company and Executive desire to enter into an agreement to provide for the terms
and conditions of Executive’s at will employment with the Company; and

     WHEREAS, the success of the business of the Company is dependent on the goodwill established
by Executive and the Company’s directors, executive officers and employees with the Company’s
customers and the public generally.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
Executive hereby agree as follows:

ARTICLE 1

EMPLOYMENT

     1.1 Employment. The Company hereby engages Executive to serve as Chief Executive
Officer of the Company, and Executive agrees to serve the Company as such at the direction of the
Board of Directors (“Board”), for the period beginning on the date hereof and until
Separation, in the capacities, and subject to the terms and conditions, set forth in this Agreement
(such period to be referred to as the “Service Term”). The Company and Executive agree
that this Agreement supersedes any employment agreement previously existing between Executive and
Company or any of its predecessors (including Significant Education, LLC), and such employment
agreement(s) shall be deemed to terminate as of the date of this Agreement.

     1.2 Services. During the Service Term, Executive shall have all of the duties and
responsibilities customarily rendered by senior management of companies of similar size and nature,
with similar title and responsibility and as are provided in the Company’s Bylaws and/or may be
delegated from time to time by the Board; provided, however, the following actions of the Company
must be approved in advance by the Board:

          (a) Acquisitions or dispositions of the assets or Capital Stock of any entity (other than
inventory or transactions entered into in the ordinary course of business);

          (b) Agreements to borrow money on behalf of the Corporation;

          (c) Senior management agreements or employment agreements (other than standard confidentiality
and noncompetition agreements with employees), including any amendments thereof;

 

 

          (d) Appointment, separation and remuneration of senior management;

          (e) Bonus or other incentive plans for senior management or other employees;

          (f) Increase the compensation of any of the Company’s employees in excess of that compensation
customarily paid to employees in companies of similar size, or similar maturity, and in a similar
business;

          (g) Make, enter into or amend any joint venture agreement or contract, agreement or
arrangement with any consultant providing for gross compensation in excess of $50,000 over the term
of the agreement;

          (h) Issuances of Capital Stock, stock options, warrants or other securities or plans or
agreements relating to the same;

          (i) The establishment of annual corporate objectives;

          (j) The establishment of annual operating and capital expenditure budgets;

          (k) Enter into any agreement or arrangement with any governmental authority;

          (l) Dividends, distributions and redemptions of Capital Stock; and

          (m) All actions involving statutory corporate matters, including but not limited to,
amendments to the Company’s Certificate of Incorporation or Bylaws or qualifying to do business in
other jurisdictions.

     Executive will devote substantially all of his business time and attention (except for
vacation periods and periods of illness or other incapacity) to the business of the Company.
Notwithstanding the foregoing, and provided that such activities do not unreasonably interfere with
the fulfillment of Executive’s obligations hereunder, Executive may serve as a director or trustee
of any charitable or non-profit entity with the consent of the Board, acquire investment interests
in one or more entities which are not, directly or indirectly, in competition with the Company or
are customers or suppliers of the Company, or own up to 5% of the outstanding voting securities of
any publicly-held company. Executive will perform his services for the Company at the Company’s
principal place of business in Phoenix, Arizona (“Current Location”) or any other location
mutually agreed by Executive and the Company. Executive will travel to such other locations as may
be reasonably necessary in order to discharge his duties hereunder. In the event that the Company
proposes a location for Executive to perform services hereunder that is more than fifty (50) miles
from the Current Location and Executive agrees to relocate, the Company will reimburse Executive
for all reasonable relocation expenses incurred by Executive, including but not limited to moving
expenses and real estate brokerage commissions. In all other events, relocation expenses shall be
borne by Executive, provided, however, that Executive will be provided with all applicable moving
and relocation benefits in accordance with the Company’s policies in existence at the time of the
relocations.

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     1.3 Salary, Bonus and Benefits. During the Service Term, the Company will pay
Executive a base salary (the “Annual Base Salary”) as the Board may designate from time to
time, at the rate of not less than Two Hundred Fifty Thousand Dollars ($250,000) per annum. The
Annual Base Salary shall be subject to review annually by the Board; provided, however, that the
Annual Base Salary shall not be reduced during the Service Term. Executive will be eligible to
receive performance bonuses as determined by the Board based upon the Company’s achievement of
performance, budgetary and other objectives set by the Board. In addition, during the Service
Term, Executive will be entitled to the insurance, vacation, holidays and other benefits consistent
with the Company’s past practice for its employees generally and as approved by the Board.

     1.4 Separation.

          (a) Events of Separation. Executive’s employment with the Company shall cease upon:

          (i) Executive’s death.

          (ii) Executive’s disability, which means his incapacity due to physical or mental
illness or condition such that he is unable to perform his previously assigned duties where
(1) such incapacity has been determined to exist by either (x) the Company’s disability
insurance carrier or (y) by the concurring opinions of two licensed physicians (one selected
by the Company and one by Executive), and (2) the Board has determined, based on competent
medical advice, that such incapacity will continue for such period of time of at least three
(3) continuous months and that it would have a material adverse effect on the Company;
provided, however, that in the event Executive is insured pursuant to any disability
insurance coverage maintained or paid for by the Company, any such Separation shall occur
only upon eligibility of Executive to receive payment of such disability insurance benefits,
subject to compliance with the terms and requirements of such disability insurance. Any
such Separation for disability shall be only as expressly permitted by the Americans with
Disabilities Act.

          (iii) Separation by the Company upon the Board’s determination, in its good faith
judgment, that such separation is in the best interests of the Company. Such Separation
will require delivery to Executive of a written notice from the Board that Executive has
been terminated (“Notice of Separation”) with or without Cause.

          (iv) Executive’s voluntary resignation by the delivery to the Board of a written notice
from Executive that Executive has resigned with or without Good Reason.

          (b) Rights on Separation.

          (i) In the event that Separation is by Executive with Good Reason or a termination by
the Company without Cause, the Company will continue to pay to Executive a monthly portion
of the Annual Base Salary for a period equal to twelve (12) months commencing on the date of
Separation.

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          (ii) If the Company terminates Executive’s employment for Cause, if Executive dies or
is disabled, if Executive resigns without Good Reason or in the event of a Sale of the
Company (as defined in the Stockholders Agreement), the Company’s obligations to pay any
compensation or benefits under this Agreement will cease effective the date of Separation.
Executive’s right to receive any other benefits will be determined under the provisions of
applicable plans, programs or other coverages.

     Notwithstanding the foregoing, the Company’s obligation to Executive for severance pay or
other rights under either subparagraphs (i) or (ii) above (the “Severance Pay”) shall cease
if Executive is in violation of the provisions of Articles 2 or 3 hereof. The Severance Pay, if
any, shall be paid by the Company to Executive in equal installments payable commencing on the
Company’s regularly scheduled payroll date next following the date of Executive’s Separation.
Until such time as Executive has received all of his Severance Pay, he will be entitled to continue
to receive the benefits to which he is entitled or is participating in accordance with the
provisions of Section 1.3 of this Agreement.

ARTICLE 2

CONFIDENTIAL INFORMATION

     Executive acknowledges that the information, observations and data obtained by him as an
employee and owner of the Company, or during the course of his performance under this Agreement,
concerning the business and affairs of the Company and its Affiliates or acquisition opportunities
in or reasonably related to the Company’s business or industry (“Confidential Information”)
are the confidential and proprietary trade secrets and other property of the Company. Therefore,
except as may be required by the lawful order of a court or agency of competent jurisdiction,
Executive agrees that he will not disclose to any unauthorized Person or use for his own account
any Confidential Information without the Board’s written consent unless and to the extent that the
aforementioned matters become generally known to and available for use by the public other than as
a result of Executive’s acts or omissions. Executive agrees to deliver to the Company on the date
of Separation, or at any other time the Company may request in writing after the date of
Separation, all memoranda, notes, plans, records, reports and other documents (and copies thereof)
relating to the business of the Company and its Affiliates, or their acquisition prospects which he
may then possess or have under his control.

ARTICLE 3

NONCOMPETITION, NONSOLICITATION AND NON-DISPARAGEMENT

     3.1 Noncompetition and Nonsolicitation. Executive acknowledges that in the course of
his employment with the Company he will serve as a member of the Company’s senior management and
will become familiar with the Company’s trade secrets and with other Confidential Information and
that his services will be of special, unique and extraordinary value to the Company. Therefore,
Executive agrees that, during the Service Term, and during the twenty-four (24) month period
following the Service Term (collectively, the “Non-compete 

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Period”), he shall not directly or indirectly (A) own (except ownership of less than
5% of any class of securities which are listed for trading on any securities which are listed for
trading on any securities exchange or which are traded in the over-the-counter market), manage,
control, participate in, consult with, render services for, or in any manner engage in the
operation of a regionally accredited higher education institution or any business in which
Executive had significant involvement in the Company’s or any of its predecessors’ business prior
to Executive’s Separation; (B) solicit funds on behalf of, or for the benefit of, any regionally
accredited higher education institution other than the Company or any other entity that competes
with the Company; (C) solicit individuals who are current or prospective students of the Company to
be students for any other regionally accredited higher education institution; (D) induce or attempt
to induce any employee of the Company to leave the employ of the Company, or in any way interfere
with the relationship between the Company and any employee thereof, or (E) induce or attempt to
induce any student, customer, supplier, licensee or other business relation of the Company to cease
doing business with, or modify its business relationship with, the Company, or in any way interfere
with or hinder the relationship between any such student, customer, supplier, licensee or business
relation and the Company.

     3.2 Non-Disparagement. Following Separation, Executive agrees not to make to any
Person, including but not limited to customers of the Company, any statement that disparages the
Company or which reflects negatively upon the Company or the Investors, including but not limited
to statements regarding the Company’s financial condition, its officers, directors, stockholders,
employees and affiliates.

     3.3 Enforcement. If, at the time of enforcement of Articles 2 or 3 of this Agreement,
a court holds that the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or area and that the
court shall be allowed to revise the restrictions contained herein to cover the maximum duration,
scope and area permitted by law. Because Executive’s services are unique and because Executive has
access to Confidential Information, the parties hereto agree that money damages would be an
inadequate remedy for any breach of this Agreement. Therefore, in the event a breach or threatened
breach of this Agreement, the Company or its successors or assigns may, in addition to other rights
and remedies existing in their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent any violations of,
the provisions hereof (without posting a bond or other security).

ARTICLE 4

DEFINITIONS

     “Affiliate”
means any other person, entity or investment fund controlling, controlled by or
under common control with the Company, including without limitation, any of its Subsidiaries.

     “Capital Stock” shall mean all shares of all classes of the Company’s capital stock,
including, without limitation, the Company’s preferred stock and common stock.

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     “Cause” shall mean:

	 	(1)	 	Executive’s (i) commission of a felony or a crime involving moral turpitude, or
the commission of any other willful act or omission involving dishonesty or fraud with
respect to the Company or any of its customers or suppliers, or (ii) misappropriation
of any funds or assets of the Company for personal use, or (iii) engaging in any
conduct bringing the Company into substantial public disgrace or disrepute;
	 
	 	(2)	 	Executive’s (i) continued and repeated neglect of his duties in breach of this
Agreement following notice of such breach and a failure to cure such breach following a
reasonable opportunity to cure, (ii) gross misconduct in the performance of his duties
hereunder, or (iii) his material and repeated failure to perform his duties in breach
of this Agreement as directed by the Board following notice of such breach and failure
to cure such breach following a reasonable opportunity to cure; or
	 
	 	(3)	 	Executives engaging in conduct constituting cause for Separation under
applicable law; or
	 
	 	(4)	 	Executive’s engaging in conduct constituting a breach of Article 2 or 3 of this
Agreement.

     “Good Reason” shall mean Executive’s resignation from employment with the Company within
thirty (30) days after the occurrence of any one of the following:

	 	(1)	 	The failure of the Company to pay an amount owing to Executive hereunder after
Executive has provided the Company with written notice of such failure and such payment
has not thereafter been made within fifteen (15) days of the delivery of such written
notice;
	 
	 	(2)	 	The assignment to Executive by the Company of duties materially inconsistent
with Executive’s title or duties from those set forth in this Agreement or the failure
to elect or reelect Executive to such position, except in the event of a termination
for Cause, death, disability or by Executive other than for Good Reason; or
	 
	 	(3)	 	The Company’s requirement that Executive perform services under this Agreement
at a location that is more than fifty (50) miles from the Current Location, and
Executive’s failure to do so.

     “Investors” means Endeavour Capital Fund IV, L.P., Endeavour Associates Fund IV, L.P.,
Endeavour Capital Parallel Fund IV, L.P. and 220 GCU, L.P.

     “Person” means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, an investment fund, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

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     “Stockholders Agreement” means the Stockholders Agreement dated as of the date hereof among
the Company, Significant Education Holding, LLC, and the Investors, as amended or restated from
time to time.

ARTICLE 5

NOTICES

     Any notice provided for in this Agreement must be in writing and must be either personally
delivered, mailed by first class United States mail (postage prepaid) or sent by reputable
overnight courier service (charges prepaid) or by facsimile to the recipient at the address below
indicated:

     If to the Company:

Significant Education, Inc.

3300 West Camelback Road

Phoenix, Arizona 85017

Telephone:  (602) 589-2755

Facsimile:    (602) 589-2458

     with a copy to each of:

Endeavour Capital IV, LLC

920 SW Sixth Ave

Suite 1400

Portland, OR 97204

Attention: D. Mark Dorman and Chad N. Heath

Telephone:  (503) 223-2721

Facsimile:    (503) 223-1384

Davis Graham & Stubbs LLP

1550 Seventeenth Street, Suite 500

Denver, Colorado 80202-1500

Attention:   Ronald R. Levine, II

Telephone:  303-892-9400

Facsimile:   303-893-1379

     If to Executive:

Brent Richardson

6645 E. Exeter

Scottsdale, Arizona 85251

Telephone:  480-946-9128

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or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party.

ARTICLE 6

GENERAL PROVISIONS

     6.1 Expenses. The Company shall reimburse Executive for all reasonable business,
promotional, travel and entertainment expenses incurred or paid by him during the Service Term and
the performance of his services under this Agreement, provided that Executive furnishes to the
Company in a timely fashion appropriate documentation required by the Internal Revenue Code in
connection with such expenses and shall furnish such other reasonable documentation and accounting
as the Company, from time to time, may reasonably request.

     6.2 Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof in any way.

     6.3 Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

     6.4 Severability. 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, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     6.5 Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by the Company, and its successors and assigns. Executive may not
assign any of its rights or obligations under this Agreement.

     6.6 Choice of Law. The construction, validity and interpretation of this Agreement
and the exhibit hereto will be governed by and construed in accordance with the internal laws of
the State of Arizona, without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of Arizona or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Arizona.

     6.7 Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including attorney’s fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may in

-8-

 

its sole discretion apply to any court of law or equity of competent jurisdiction (without
posting any bond or deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

     6.8 Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company and Executive.

     6.9 Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief
executive office is located, the time period shall be automatically extended to the business day
immediately following such Saturday, Sunday or holiday.

     6.10 Termination. All of the provisions of this Agreement shall terminate after the
expiration of the Service Term or upon the Separation of Executive’s employment with the Company,
except Article 2 and Section 3.2 shall survive indefinitely, and Section 3.1 shall terminate upon
expiration of the Non-compete Period.

[THIS SPACE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have executed this Senior Management Agreement on the
date first written above.

	 	 	 	 	 
	 	SIGNIFICANT EDUCATION, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Christopher Richardson
 	 
	 	 	Name:  	Christopher Richardson 	 
	 	 	Title:  	Managing Director and Secretary 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Brent Richardson
 	 
	 	Brent Richardson 	 

Signature Page — Senior Management Agreement (B. Richardson)

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