Document:

Exhibit 10.1

  

   

    

  

    ADTALEM GLOBAL EDUCATION, INC.

      EXECUTIVE EMPLOYMENT AGREEMENT

     

    THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”)

      is made and entered into as of                 ,    September 8, 2021 (the “Effective Date”), by and between Adtalem Global Education. (“Adtalem”) and Stephen W. Beard (the “Executive”). 

      Adtalem  and the Executive are sometimes hereinafter referred to individually as a “Party” and together as “Parties.”

     

    Unless otherwise defined in the body of this Agreement, capitalized terms shall be defined as provided in Appendix I to this Agreement.

     

    In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Parties hereto agree as follows:

     

    AGREEMENT

     

    1.            Employment Period.  Adtalem will
      employ the Executive, and the Executive hereby accepts employment with Adtalem, upon the terms and subject to the conditions set forth in this Agreement.  The Executive’s employment under this Agreement shall begin on the Effective Date and shall
      continue thereafter until the first to occur of the events described in Section 6(a) (the “Employment Period”).

     

    2.            Position and Duties.

     

    (a)           Title; Responsibilities. 
      Beginning on the Effective Date, the Executive will serve as President and Chief Executive Officer of Adtalem and will have the normal duties, responsibilities and authority of those positions, subject to the power of the Board to expand the
      Executive’s authority; provided, however, at all times, the
      Executive’s duties, responsibilities and authority shall be at least commensurate with such duties, responsibilities and authority held by executives in comparable positions in corporations of similar size and scope to Adtalem in Adtalem ’s
      industry.  The Executive shall devote substantially all business time and attention to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would
      conflict or interfere with the performance of such services either directly or indirectly.  Notwithstanding the foregoing, the Executive will be permitted to serve as a director of any business, civic or charitable organization in accordance with the
      established policies and procedures of Adtalem. The Executive shall report exclusively to the Board.  In this trusted, executive position, the Executive will be given access to Adtalem’s Confidential Information and the Executive shall have full
      discretion to use such Confidential information in furtherance of the Executive’s responsibilities. The Executive shall comply in all material respects with all applicable laws, rules and regulations relating to the performance of the Executive’s
      duties and responsibilities hereunder, including Adtalem’s Code of Business Conduct and Ethics.

    
      
        

    

    
     

    (b)           Board Membership.  Throughout the
      Employment Period, Adtalem will nominate the Executive to serve as a director on the Board.

     

    3.            Compensation.

     

    (a)           Base Salary.  The Executive’s
      Base Salary shall initially be at the rate of $900,000 per annum.  The Executive’s Base Salary will be paid in substantially equal bi-weekly installments.  The Base Salary will be reviewed annually by the Compensation Committee and upon such review
      the Base Salary may be increased by the Compensation Committee (subject to any applicable law or exchange listing requirement); provided, however, the Base Salary, including as subsequently adjusted upwards, may not be decreased except in the case of
      exigent conditions in which the Executive agrees to an across-the-board equal percentage reduction in base salaries of Adtalem’s named executive officers. All amounts payable to the Executive under this Agreement, will be subject to required
      withholding by Adtalem.

     

    (b)           Equity Awards.

     

    (i)            The Executive shall be eligible for annual cash and annual long term equity awards, as determined by the Board or the
      Compensation Committee as necessary and appropriate to comply with Adtalem policy, applicable law, or exchange listing requirements, under Adtalem’s equity award plan(s) covering executive officers of Adtalem, as in effect from time to time.

     

    (ii)           Without limiting the foregoing, in connection with the Executive’s acceptance of the positions of President and Chief
      Executive Officer of Adtalem, and subject to the approval of the Compensation Committee, the Executive shall receive as promptly as practicable after the Effective Date, an equity compensation award under Adtalem’s Fourth Amended and Restated
      Incentive Plan of 2013 (the “2013 Equity Plan”) as set forth in Appendix II (the “Promotional Equity Award”).  The Promotional Equity Award shall be subject to
      such additional terms and conditions as may be approved by the Compensation Committee and set forth in the documents evidencing the Promotional Equity Award, as well as the terms of the 2013 Equity Plan.

    

    

    (iii)          Notwithstanding  the
        Promotional Equity Award, the Executive shall be entitled to receive equity  compensation awards from Adtalem with respect to its 2021 fiscal year grant cycle on the same basis as other executive officers of Adtalem.

    

    

    (c)           Management Incentive. For each fiscal year during the Employment Period beginning with the 2022 fiscal year, the Executive will be eligible to
      receive an annual MIP Target payment under Adtalem’s annual Management Incentive Plan (“MIP”) as in effect from time to time, upon the achievement of specific Adtalem-wide and personal performance goals that will be determined each fiscal year by the
      Compensation Committee as necessary and appropriate to comply with Adtalem policy; provided as of the Effective Date however, the MIP Award may be based on a higher or lower percentage of the MIP Target for performance which is in excess of target
      goals or below target goals, respectively.  Any MIP Award due and owing hereunder with respect to any fiscal year shall be paid no later than the fifteenth day of the third month following the end of Adtalem’s fiscal year in which the MIP Award was
      earned.

    
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    4.            Vacation.  The Executive will be
      entitled to the number of weeks of vacation each fiscal year equal to that of other executive officers of Adtalem.

    

    

    5.            Benefits.  The Executive shall be
      eligible to participate in such health and welfare benefits as are available to senior executives of Adtalem, provided, however, that participation shall be subject to all of the terms and conditions of such plans, including, without limitation, all waiting periods, eligibility requirements, vesting,
      contributions, exclusions and other similar conditions or limitations.  Any and all benefits under any such plans shall also be payable, if applicable, in accordance with the underlying terms and conditions of such plan’s document.  The Executive’s
      participation in the foregoing plans and any perquisite programs will be on terms no less favorable than afforded to executive officers of Adtalem, as in effect from time to time.  Adtalem, however, shall have the right, in its sole discretion, to
      modify, amend or terminate such benefit plans and perquisite programs at any time.  Adtalem will reimburse the Executive for all reasonable business expenses incurred by the Executive in the course of performing the Executive’s duties and
      responsibilities under this Agreement which are consistent with Adtalem’s policies and procedures in effect from time to time.

     

    6.            Termination.

     

    (a)           When Does Termination Occur.  The
      Executive’s employment with Adtalem and the Employment Period will end on the earlier of (i) the Executive’s death or Permanent Disability, (ii) the Executive’s resignation at any time with or without Good Reason, or (iii) termination by Adtalem at
      any time with or without Cause.  Except as otherwise provided herein, any termination of the Employment Period by Adtalem or by the Executive will be effective as specified in a written notice from the terminating Party to the other Party; provided, however, if the Executive’s employment with Adtalem is
      terminated during the Employment Period by Adtalem without Cause or by the Executive without Good Reason, the terminating Party must give the other Party at least 30 days prior written notice.  For the avoidance of doubt, the Executive’s voluntary
      retirement from Adtalem shall be deemed a resignation by the Executive without Good Reason.

     

    (b)           Termination Due to Death or Permanent
          Disability, by Adtalem With Cause or By the Executive Without Good Reason.  If the Employment Period is terminated pursuant to Section 6(a)(i) above or by Adtalem with Cause, or if the Executive resigns without Good Reason, then the
      Executive will only be entitled to receive the Accrued Benefits payable no later than 30 days following the Executive’s Termination Date. The Executive will not be entitled to any other Base Salary, severance, compensation or benefits from Adtalem
      thereafter, other than those previously earned under any of Adtalem’s retirement plans or expressly required under applicable law.  Within ten days following notice of termination with Cause, the Executive may request of the Board an opportunity to
      cure the Cause event, which request shall be determined by the Board in the Board’s sole discretion.

    
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    (c)           Termination by Adtalem Without Cause or By
          the Executive With Good Reason.  If:

     

    (i)            the Executive’s employment with Adtalem is terminated during the Employment Period (A) by Adtalem without Cause or (B) by the Executive with
      Good Reason; and

     

    (ii)           the Executive executes a release (which shall be promptly proffered by Adtalem following such termination of employment and which shall not
      include additional or lengthier post-employment restrictions (as compared to those set forth in this Agreement), and which shall not release or diminish the Executive’s rights to indemnification, a “Release”) and such Release is not timely revoked by the Executive and becomes legally effective within 60 days following the Termination Date; and

     

    (iii)          the Executive is in compliance with the terms of this Agreement and the Release, then the Executive will be entitled to receive:

     

    (A)          Accrued Benefits.  the Accrued
      Benefits payable no later than 30 days following the Executive’s Termination Date; and

     

    (B)          Base Salary Severance.  payment of
      an amount equal to one times the Executive’s Base Salary (at the rate then in effect), which shall be payable in a lump sum on the 60th day following the Termination Date.

     

    (C)          MIP Award.  payment of a pro-rated
      MIP Award for the fiscal year in which the termination of employment occurs based upon actual achievement of the relevant performance targets for the entire fiscal year, which MIP Award shall be payable in a lump sum at the time all other awards
      under the MIP for such fiscal year are paid to the other Adtalem senior executives;

    

    

    (D)          Medical Insurance.  continuation of medical and dental insurance benefits
        for a period of one year following the date of termination at the same cost, level and conditions as provided by Adtalem to Executive immediately prior to such termination.

    

    

    (E)           No Offset or Mitigation.  Adtalem will have no right of offset, nor will the Executive be under any duty or obligation to seek alternative or substitute employment at any time
        after the effective date of such termination or otherwise mitigate any amounts payable by Adtalem to the Executive.

    

    

    (F)           Resignation of All Other Positions.  Upon termination of Executive’s
        employment hereunder for any reason, the Executive agrees to resign, effective on the Termination Date, from all positions that the Executive holds as an officer or member of the Board  (or a committee thereof) of Adtalem and any of its Affiliates.

    
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    7.            Change in Control.

     

    (a)           Obligations of Adtalem upon Executive’s
          Termination with Good Reason or Adtalem’s Termination of Executive Without Cause During Change in Control Period.  If:

     

    (i)            during the Change in Control Period, Adtalem terminates the Executive’s employment without Cause (other than for death or Permanent Disability)
      or the Executive terminates employment for Good Reason, and

    

    

    (ii)           the Executive executes the Release and such Release is not timely revoked by the Executive and becomes legally effective within 60 days
      following the Termination Date; and

     

    (iii)          the Executive is in compliance with the terms of this Agreement and the Release, then the Executive will be entitled to receive:

     

    (A)          Accrued Benefits.  the Accrued
      Benefits payable no later than 30 days following the Executive’s Termination Date;

     

    (B)           Base Salary and MIP Award. 
      payment of an amount equal to (I) two times the Executive’s Base Salary (at the rate then in effect) plus (II) the average of the Executive’s MIP Awards for the previous two fiscal years (or, if the termination of employment occurs during the first
      two fiscal years in which the Executive is employed by Adtalem, the MIP Target).  Such amounts shall be payable in a lump sum on the 60th day following the Termination Date; and

     

    (C)           Stock Options.  notwithstanding
      anything to the contrary in the applicable equity award agreements (but otherwise subject to such agreements), full vesting as of the Termination Date of any outstanding stock options granted to the Executive by Adtalem.

     

    (b)           Obligations of Adtalem upon Executive’s
          Death.  If the Executive’s employment is terminated by reason of the Executive’s death during the Change in Control Period, Adtalem shall provide the Executive’s estate or beneficiaries with the Accrued Benefits, and shall have no
      other severance obligations under this Agreement.  The Accrued Benefits shall be paid to the Executive’s estate or beneficiary, as applicable, within 30 days following the Termination Date.

     

    (c)           Obligations of Adtalem upon Executive’s
          Permanent Disability.  If the Executive’s employment is terminated by reason of the Executive’s Permanent Disability during the Change in Control Period, Adtalem shall provide the Executive with the Accrued Benefits, and shall have no
      other severance obligations under this Agreement.  The Accrued Benefits shall be paid to the Executive within 30 days following the Termination Date.

     

    (d)           Obligations of Adtalem upon Executive’s
          Termination Without Good Reason or Adtalem’s Termination of Executive With Cause During Change in Control Period.  If the Executive’s employment is terminated for Cause during the Change in Control Period or the Executive resigns
      during the Change in Control Period without Good Reason, Adtalem shall provide the Executive with the Accrued Benefits, and shall have no other severance obligations under this Agreement.  In such case, all Accrued Benefits shall be paid to the
      Executive within 30 days following the Termination Date.  For avoidance of doubt, expiration of the Agreement during the Change in Control Period by action of the Executive in accordance with Section 1 shall be deemed a resignation by the Executive
      without Good Reason.

    
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    (e)           Code Section 280G. If any of the payments or benefits received or to be
        received by the Executive (including, without limitation, any payment or benefit received in connection with a Change in Control or the Executive’s termination of employment, wither pursuant to the terms of this Agreement or any other plan,
        arrangement, agreement or otherwise) (all such payment collectively referred to herein as the “280G Payments”) constitute “parachute payment” within the meaning of Code Section 280G and would but for this Section, be subject to the excise tax
        imposed under Code Section 4999 (the “ Excise Tax”), then prior to making the 280G Payments, a calculation shall be made comparing (1) the “Net Benefit” (as defined below) to the Executive of the 280G Payments after the payment of the Excise Tax to
        (2) the Net  Benefit to the Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax.  Only if the amount calculated under (1) above is less than the amount under (2) above will the 280G Payments
        be reduced to the minimum extent necessary to ensure that no portion of the 280G payments is subject to the Excise Tax.  “Net Benefit” shall be the present value of the 280G Payments net of all federal, state and local income employment and excise
        taxes  Any such reduction made pursuant to this Section 7(e) shall be consistent with the requirements of Code Section 409A.  All calculations and determinations under this Section 7(e) shall be made by an independent accounting firm or independent
        tax counsel appointed by Adtalem whose determination shall be conclusive and binding on Adtalem and the Executive for all purposes.

     

    8.            Confidential Information.

     

    (a)            The Executive recognizes and acknowledges that the continued success of Adtalem and its Affiliates depends upon the use and protection of a
      large body of confidential and proprietary information and that the Executive will have access to the entire universe of Adtalem’s Confidential Information (as defined below in Section 8(b)), as well as certain confidential information of other
      Persons with which Adtalem and its Affiliates do business, and that such information constitutes valuable, special and unique property of Adtalem, its Affiliates and such other Persons.

    

    

    (b)           Confidential Information.  For
      purposes of this Agreement, Adtalem’s “Confidential Information” shall include Adtalem and its Affiliates’ trade secrets as defined under
      Delaware law, as well as any other information or material which is not generally known to the public, and which: (a) is generated, collected by or utilized in the operations of Adtalem or its Affiliates’ business and relates to the actual or
      anticipated business, research or development of Adtalem, its Affiliates or Adtalem and its Affiliates’ actual or prospective Customers; or (b) is suggested by or results from any task assigned to the Executive by Adtalem or its Affiliates, or work
      performed by the Executive for or on behalf of Adtalem or its Affiliates.  Confidential Information shall not be considered generally known to the public if the Executive or others improperly reveal such information to the public without Adtalem or
      its Affiliates’ express written consent and in violation of an obligation of confidentiality owed to Adtalem or its Affiliates.  Confidential Information includes, without limitation, the information, observations and data obtained by the Executive
      while employed by Adtalem concerning the business or affairs of Adtalem or its Affiliates, including information concerning acquisition opportunities in or reasonably related to Adtalem or its Affiliates’ business or industry, the identities of and
      other information (such as databases) relating to the current, former or prospective employees, suppliers and Customers of Adtalem or its Affiliates, development, transition and transformation plans, methodologies and methods of doing business,
      strategic, marketing and expansion plans, financial and business plans, financial data, pricing information, employee lists and telephone numbers, locations of sales representatives, new and existing customer or supplier programs and services,
      customer terms, customer service and integration processes, requirements and costs of providing service, support and equipment.

    
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    (c)           The Executive agrees to use Adtalem’s Confidential Information only as necessary and only in connection with the performance of the Executive’s
      duties hereunder.  The Executive shall not, without the prior written permission of a member of the Board or of Adtalem’s General Counsel, directly or indirectly, utilize for any purpose other than for a legitimate business purpose solely on behalf
      of Adtalem or its Affiliates, any of Adtalem’s Confidential Information, as long as such matters remain Confidential Information. The restrictions set forth in this paragraph are in addition to and not in lieu of any obligations the Executive may
      have by law with respect to Adtalem’s Confidential Information, including any obligations the Executive may owe under any applicable trade secrets statutes or similar state or federal statutes.  This Agreement shall not prevent the Executive from
      revealing evidence of criminal wrongdoing to law enforcement or prohibit the Executive from divulging Adtalem’s Confidential Information by order of court or agency of competent jurisdiction.  However, the Executive shall promptly inform Adtalem of
      any such situations and shall take such reasonable steps to prevent disclosure of Adtalem’s Confidential Information until Adtalem or its relevant Affiliates have been informed of such requested disclosure and Adtalem has had an opportunity to
      respond to the court or agency.

    

    

    (d)           The Executive understands that Adtalem and its Affiliates will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty of Adtalem or its Affiliates to maintain the confidentiality of such information and to use it only
      for certain limited purposes.  During the Employment Period and thereafter, and without in any way limiting the foregoing provisions of this Section 8, the Executive will hold Third Party Information in the strictest confidence and will not disclose
      to anyone (other than personnel and consultants of Adtalem and its Affiliates who need to know such information in connection with their work for Adtalem or its Affiliates) or use Third Party Information unless expressly authorized by such third
      party or by a member of the Board or Adtalem’s General Counsel.

     

    (e)           During the Employment Period, the Executive will not improperly use or disclose any confidential information or trade secrets, if any, of any
      former employers or any other person or entity to whom the Executive has an obligation of confidentiality, and will not bring onto the premises of Adtalem or its Affiliates any unpublished documents or any property belonging to any former employer or
      any other person or entity to whom the Executive has an obligation of confidentiality unless consented to in writing by the former employer or such other person or entity.  The Executive will use in the performance of the Executive’s duties only
      information which is (i) generally known and used by persons with training and experience comparable to the Executive’s and which is (x) common knowledge in the industry or (y) otherwise legally in the public domain, (ii) otherwise provided or
      developed by Adtalem or its Affiliates or (iii) in the case of materials, property or information belonging to any former employer or other person or entity to whom the Executive has an obligation of confidentiality, approved for such use in writing
      by such former employer or other person or entity.

    
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    (f)            Nothing in this Agreement is intended to or
        shall be interpreted to prohibit disclosure of information to the limited extent permitted by and in accordance with the federal Defend Trade Secrets Act of 2016 (“DTSA”).  Disclosures that are protected by the DTSA as follows do not violate this
        Agreement. The DTSA provides that:  (1) An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret under the Act that:  (A) is made – (i) in confidence to a Federal,
        State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or
        other proceeding, if such filing is made under seal; and (2) An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the
        trade secret information in the court proceeding, if the individual:  (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

     

    9.            Return of Adtalem Property.  The
      Executive acknowledges and agrees that all notes, records, reports, sketches, plans, unpublished memoranda or other documents, whether in paper, electronic or other form (and all copies thereof), held by the Executive concerning any information
      relating to the business of Adtalem or its Affiliates, whether confidential or not, are the property of Adtalem and its Affiliates.  The Executive will immediately deliver to Adtalem at the termination or expiration of the Employment Period, or at
      any other time the Board may request, all equipment, files, property, memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and all electronic, paper or other copies thereof) belonging to
      Adtalem or its Affiliates which includes, but is not limited to, any materials that contain, embody or relate to the Confidential Information, Work Product or the business of Adtalem or its Affiliates, which the Executive may then possess or have
      under the Executive’s control.  The Executive will take any and all actions reasonably deemed necessary or appropriate by Adtalem or its Affiliates from time to time in its sole discretion to ensure the continued confidentiality and protection of the
      Confidential Information.  The Executive will notify Adtalem and the appropriate Affiliates promptly and in writing of any circumstances of which the Executive has knowledge relating to any possession or use of any Confidential Information by any
      Person other than those authorized by the terms of this Agreement.

    
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    10.           Intellectual Property Rights. 
      The Executive acknowledges and agrees that all inventions, technology, processes, innovations, ideas, improvements, developments, methods, designs, analyses, trademarks, service marks, and other indicia of origin, writings, audiovisual works,
      concepts, drawings, reports and all similar, related, or derivative information or works (whether or not patentable or subject to copyright), including but not limited to all resulting patent applications, issued patents, copyrights, copyright
      applications and registrations, and trademark applications and registrations in and to any of the foregoing, along with the right to practice, employ, exploit, use, develop, reproduce, copy, distribute copies, publish, license, or create works
      derivative of any of the foregoing, and the right to choose not to do or permit any of the aforementioned actions, which relate to Adtalem or Affiliates’ actual or anticipated Business, research and development or existing or future products or
      services and which are conceived, developed or made by the Executive while employed by Adtalem or an Affiliate (collectively, the “Work Product”)

      belong to Adtalem.  The Executive further acknowledges and agrees that to the extent relevant, this Agreement constitutes a “work for hire agreement” under the Copyright Act, and that any copyrightable work (“Creation”) constitutes a “work made for hire” under the Copyright Act such that Adtalem is the copyright owner of the Creation.  To the extent that any portion of the
      Creation is held not to be a “work made for hire” under the Copyright Act, the Executive hereby irrevocably assigns to Adtalem all right, title and interest in such Creation.  All other rights to any new Work Product and all rights to any existing
      Work Product are also hereby irrevocably conveyed, assigned and transferred to Adtalem pursuant to this Agreement.  The Executive will promptly disclose and deliver such Work Product to Adtalem and, at Adtalem’s expense, perform all actions
      reasonably requested by Adtalem (whether during or after the Employment Period) to establish, confirm and protect such ownership (including, without limitation, the execution of assignments, copyright registrations, consents, licenses, powers of
      attorney and other instruments).  All Work Product made within six months after termination of the Executive’s employment with Adtalem will be presumed to have been conceived during the Executive’s employment with Adtalem, unless the Executive can
      prove conclusively that it was created after such termination.

    

    

    11.           Non-Compete, Non-Solicitation.

     

    (a)           In further consideration of the compensation to be paid to the Executive hereunder, the Executive acknowledges that in the course of the
      Executive’s employment with Adtalem, the Executive has, and will continue to, become familiar with Adtalem’s Confidential Information, methods of doing business, business plans and other valuable proprietary information concerning Adtalem, its
      Affiliates, and their customers and suppliers and that the Executive’s services have been and will be of special, unique and extraordinary value to Adtalem and its Affiliates.  The Executive agrees that, during the Employment Period and continuing
      for 12 months thereafter (the “Restricted Period”), the Executive will not, directly or indirectly, anywhere in the Restricted Area:

     

    (i)            own, manage, operate, or participate in the ownership, management, operation, or control of, or be employed by, any entity which is in
      competition with the Business of Adtalem or its Affiliates, in which the Executive would hold a position with responsibilities that are entirely or substantially similar to any position the Executive held during the last 12 months of the Executive’s
      employment with Adtalem or in which the Executive would have responsibility for and access to confidential information that is similar to or relevant to that which the Executive had access to during the last 12 months of the Executive’s employment
      with Adtalem; or

    
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    (ii)           provide services to any person or entity that engages in any business that is similar to, or competitive with Adtalem or its Affiliates’
      Business if doing so would require the Executive to use or disclose Adtalem’s Confidential Information.

     

    Nothing herein will prohibit the Executive from being a passive owner of not more than one percent of the outstanding stock of any class of a corporation
      which is publicly traded, so long as the Executive has no active participation in the business of such corporation.

     

    (b)           During the Restricted Period, the Executive will not, directly or indirectly, in any manner: (i) hire or engage, or recruit, solicit or
      otherwise attempt to employ or retain any Person who is or was an employee of or consultant to Adtalem or its Affiliates within the 12 month period immediately preceding the termination of the Executive’s employment, or (ii) induce or attempt to
      induce any person who is or was an employee of, or consultant to, Adtalem or its Affiliates within the 12 month period immediately preceding the termination of the Executive’s employment, to leave the employ of Adtalem or the relevant Affiliates, or
      in any way interfere with the relationship between Adtalem, its Affiliates and any of their employees or consultants; provided, however that the Executive may hire former employees and consultants to Adtalem and its Affiliates after such former
      employees or consultants have ceased to be employed or otherwise engaged by Adtalem or its Affiliates for a period of at least 12 months.

     

    (c)           During the Restricted Period, the Executive will not, directly or indirectly: (i) call on, solicit or service any Customer with the intent of
      selling or attempting to sell any service or product similar to, or competitive with, the services or products sold by Adtalem or its Affiliates as of the date of the termination of the Executive’s employment, or (ii) in any way interfere with the
      relationship between Adtalem, its Affiliates and any Customer, supplier, licensee or other business relation (or any prospective Customer, supplier, licensee or other business relationship) of Adtalem or its Affiliates (including, without limitation,
      by making any negative or disparaging statements or communications regarding Adtalem, its Affiliates or any of their operations, officers, directors or investors).  This non-solicitation provision applies to those Customers, suppliers, licensees or
      other business relationships of Adtalem with whom the Executive: (1) has had contact or has solicited at any time in the 12 month period of time preceding the termination of the Executive’s employment; (2) has supervised the services of any of
      Adtalem’s or Affiliates’ employees who have had any contact with or have solicited at any time during the 12 month period of time preceding the termination of the Executive’s employment; or (3) has had access to any Confidential Information about
      such Customers, suppliers, licensees or other business relationships at any time during the 12 month period of time preceding the termination of the Executive’s employment.

     

    (d)           The Executive acknowledges and agrees that the restrictions contained in this Section 11 with respect to time, geographical area and scope of
      activity are reasonable and do not impose a greater restraint than is necessary to protect the goodwill and other legitimate business interests of Adtalem and its Affiliates.  In particular, the Executive agrees and acknowledges that Adtalem is
      currently engaging in Business and actively marketing its services and products throughout the Restricted Area, that the Executive’s duties and responsibilities for Adtalem and its Affiliates are co-extensive with the entire scope of Adtalem’s
      Business, that Adtalem has spent significant time and effort developing and protecting the confidentiality of their methods of doing business, technology, customer lists, long term customer relationships and trade secrets and that such methods,
      technology, customer lists, customer relationships and trade secrets have significant value.  However, if, at the time of enforcement of this Section 11, a court holds that the duration, geographical area or scope of activity restrictions stated
      herein are unreasonable under circumstances then existing or impose a greater restraint than is necessary to protect the goodwill and other business interests of Adtalem and its Affiliates, the Parties agree that the maximum duration, scope or area
      reasonable under such circumstances will be substituted for the stated duration, scope or area and that the court will be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law, in all cases
      giving effect to the intent of the parties that the restrictions contained herein be given effect to the broadest extent possible.  The existence of any claim or cause of action by the Executive against Adtalem, whether predicated on this Agreement
      or otherwise, will not constitute a defense to the enforcement by Adtalem of the provisions of Sections 8, 9, 10, or this Section 11, which Sections will be enforceable notwithstanding the existence of any breach by Adtalem.  Notwithstanding the
      foregoing, the Executive will not be prohibited from pursuing such claims or causes of action against Adtalem.  The Executive consents to Adtalem notifying any future employer of the Executive of the Executive’s obligations under Sections 8, 9, 10,
      and this Section 11 of this Agreement.

    
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    (e)           In the event of the breach or a threatened breach by the Executive of any of the provisions of Sections 8, 9, 10, or this Section 11, Adtalem,
      in addition and supplementary to any other rights and remedies existing in its favor, will be entitled to seek specific performance or injunctive or other equitable relief (in the form of a temporary restraining order, preliminary injunction and
      permanent injunction) from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof.

     

    (f)            Upon the Executive’s written request, the Board may, in the Board’s sole discretion, permit the Executive to engage in certain work or activity
      that is otherwise prohibited by this Agreement, if and only if the Executive first provides the Board with written evidence satisfactory to the Board, including assurances from any new employer of the Executive, that the contribution of the
      Executive’s knowledge to that work or activity will not cause the Executive to disclose, base judgment upon, or use Adtalem’s trade secrets or other Confidential Information.  The Executive shall not engage in such work or activity unless and until
      the Executive receives written consent from the Board.

     

    (g)           Neither the Board’s consent under Section 11(f) nor Adtalem’s failure to seek enforcement of any restrictive covenant under this Agreement shall
      be deemed a consent or waiver by Adtalem of any subsequent breach of this Agreement by the Executive and Adtalem shall have the right to seek enforcement of this Agreement against the Executive for any breach not specifically consented to in writing
      by the Board or Adtalem.

    
      11

      
        

    

     

    12.           Stock Ownership.  The Executive
      acknowledges, and agrees to comply with, Adtalem’s executive stock ownership guidelines as they exist from time to time.

     

    13.           Executive’s Representations.  The
      Executive hereby warrants and represents to Adtalem that the Executive is not subject to any covenants, agreements or restrictions, including without limitation any covenants, agreements or restrictions arising out of the Executive’s prior
      employment, which would be breached or violated by the Executive’s execution of this Agreement or by the Executive’s performance of his duties hereunder.

    

    

    14.           Compliance with Code Section 409A.

     

    (a)           The Parties intend that any amounts payable under this Agreement, and Adtalem’s and the Executive’s exercise of authority hereunder, either
      comply with or are exempt from the provisions of Code Section 409A so as not to subject the Executive to the payment of the additional tax, interest and any tax penalty which may be imposed under Code Section 409A.  Notwithstanding the foregoing, no
      particular tax result for the Executive with respect to any income recognized by the Executive in connection with this Agreement is guaranteed.

     

    (b)           Notwithstanding any provisions of this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Code Section
      409A and determined pursuant to policies adopted by the Company) at the time of the Executive’s separation from service and if any portion of the payments or benefits to be received by the Executive upon separation from service would be considered
      deferred compensation under Code Section 409A, amounts that would otherwise be payable pursuant to this Agreement and benefits that would otherwise be provided pursuant to this Agreement, in each case, during the six-month period immediately
      following the Executive’s separation from service will instead be paid or made available on the earlier of (i) the first day of the seventh month following the date of the Executive’s separation from service and (ii) the Executive’s death.

     

    (c)           To the extent any reimbursement or in-kind benefit provided under this Agreement is nonqualified deferred compensation within the meaning of
      Code Section 409A (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; (ii)
      the reimbursement of an eligible expense must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred; (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or
      exchange for another benefit; and (iv) in no event shall Adtalem’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the Executive’s remaining lifetime (or, if longer, through the 6th anniversary of the
      Effective Date).

    
      12

      
        

    

     

    (d)           Each payment under this Agreement is intended to be a “separate payment” and not of a series of payments for purposes of Code Section 409A.

     

    (e)           A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of
      any amounts or benefits subject to Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Code Section 409A), and notwithstanding anything contained herein
      the contrary, the date on which such separation from service takes place shall be the termination date.

     

    15.           Survival.  Any provisions which
      by its nature is intended to survive and continue in full force in accordance with its terms shall continue notwithstanding the termination of the Employment Period.

    

    

    16.          Clawback Provisions.  Notwithstanding any other provisions in this
        Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with Adtalem with is subject to recovery under any law, government
        regulation or stock  exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by Adtalem
        pursuant to any such law, government regulation or stock exchange listing requirement).

    

    

    17.           Notices.  Any notice provided for
      in this Agreement will be in writing and will be either personally delivered, sent by reputable overnight courier service, sent by facsimile (with hard copy to follow by regular mail) or mailed by first class mail, return receipt requested, to the
      recipient at the address below indicated:

     

    Notices to the Executive 

    Stephen W. Beard

      At such home address which is currently on record with Adtalem

     

    With a copy (which shall not constitute Notice to the Executive) to:

     

         McDermott Will & Emery
        LLP

        One Vanderbilt Avenue

        New York, NY 10017-3852

        Attn: Steven Eckhaus

        seckhaus@mwe.com

        212.547.5600

    
      13

      
        

    

     
    Notices to Adtalem:

     

    Adtalem Global Education, Inc.

      Attn: General Counsel

      500 W. Monroe, Suite 2800

      Chicago, IL 60661

     

    with copies to (which will not constitute notice to
          Adtalem):

     

    John A. Nixon

    Duane Morris, LLP

    30 S. 17th Street

    Philadelphia, PA 19119

    Jnixon@duanemorris.com

     

    or such other address or to the attention of such other person as the recipient Party will have specified by prior written notice to the sending Party.  Any
      notice under this Agreement will be deemed to have been given when so delivered, sent or mailed.

     

    18.           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 action in 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.

     

    19.           Complete Agreement.  This
      Agreement embodies the complete agreement and understanding among the Parties and supersedes and preempts 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.

    

    

    20.           Counterparts.  This Agreement may
      be executed in separate counterparts (including by facsimile signature pages), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

     

    21.           No Strict Construction.  The
      parties hereto jointly participated in the negotiation and drafting of this Agreement.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their collective mutual intent, this Agreement will
      be construed as if drafted jointly by the parties hereto, and no rule of strict construction will be applied against any Person.

    
      14

      
        

    

     

    22.           Successors and Assigns.  This
      Agreement is intended to bind and inure to the benefit of and be enforceable by the Executive, Adtalem and their respective heirs, successors and assigns.  The Executive may not assign the Executive’s rights or delegate the Executive’s duties or
      obligations hereunder without the prior written consent of Adtalem.  Adtalem may not assign its rights and obligations hereunder, without the consent of, or notice to, the Executive, with the sole exception being a sale to any Person that acquires
      all or substantially all of Adtalem whether stock or assets, in which case such consent of the Executive is not necessary.

     

    23.           Choice of Law; Exclusive Venue. 
      THIS AGREEMENT, AND ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING
      EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.  SUBJECT TO SECTION 25
      OF THIS AGREEMENT, THE PARTIES AGREE THAT ALL LITIGATION ARISING OUT OF OR RELATING TO SECTIONS 8, 9, 10, OR 11 OF THIS AGREEMENT MUST BE BROUGHT EXCLUSIVELY IN DELAWARE (COLLECTIVELY THE “DESIGNATED COURTS”).  EACH PARTY HEREBY CONSENTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE DESIGNATED COURTS.  WITH RESPECT TO LITIGATION UNDER SECTIONS 8, 9, 10, OR 11, OF THIS AGREEMENT, EACH
      PARTY HEREBY IRREVOCABLY WAIVES ALL CLAIMS OR DEFENSES OF LACK OF PERSONAL JURISDICTION OR ANY OTHER JURISDICTION DEFENSE, AND ANY OBJECTION WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING IN ANY
      DESIGNATED COURT, INCLUDING ANY RIGHT TO OBJECT ON THE BASIS THAT ANY DISPUTE, ACTION, SUIT OR PROCEEDING BROUGHT IN THE DESIGNATED COURTS HAS BEEN BROUGHT IN AN IMPROPER OR INCONVENIENT FORUM OR VENUE.

     

    24.           Dispute Resolution. 
      Notwithstanding anything to the contrary, any and all other disputes, controversies or questions arising under, out of, or relating to this Agreement (or the breach thereof), or, the Executive’s employment with Adtalem or termination thereof, other
      than those disputes relating to the Executive’s alleged violations of Sections 8 (Confidential Information), 9 (return of property), 10 (intellectual property) and 11 (covenants of noncompete and nonsolicitation) of this Agreement, shall be referred
      for binding arbitration in Chicago, Illinois to a neutral arbitrator (who is licensed to practice law in any State within the United States of America) selected by the Executive and Adtalem and this shall be the exclusive and sole means for resolving
      such dispute.  Such arbitration shall be conducted in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration Association.  The arbitrator shall have the discretion to award reasonable attorneys’ fees,
      costs and expenses to the prevailing party.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 24 does not apply to any action by either party under Sections 8, 9, 10, and 11 of
      this Agreement and does not in any way restrict either Party’s rights under Section 23 of this Agreement.

    
      15

      
        

    

    

    

    25.           Mutual Waiver of Jury Trial.  IN
      THE EVENT OF LITIGATION AS PERMITTED UNDER SECTION 23 (AND SUBJECT TO SECTION 24) OF THIS AGREEMENT, ADTALEM AND THE EXECUTIVE EACH WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR
      RELATED TO ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, AS PERTAINS TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE UNDER SECTIONS 9, 10, 11, OR 12
      OF THIS AGREEMENT.  ADTALEM AND THE EXECUTIVE EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION WILL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY
      IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF SECTIONS 8, 9, 10 OR 11  OF THIS AGREEMENT.  THIS WAIVER WILL APPLY TO ANY
      SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO SECTIONS 8, 9, 10, OR 11 OF THIS AGREEMENT.

     

    26.           Indemnification.  In addition to
      any rights to indemnification to which the Executive is entitled under Adtalem’s charter and by-laws, to the extent permitted by applicable law, Adtalem will indemnify, from the assets of Adtalem supplemented by insurance in an amount determined by
      Adtalem, the Executive at all times, during and after the Employment Period, and, to the maximum extent permitted by applicable law, shall pay the Executive’s expenses (including reasonable attorneys’ fees and expenses, which shall be paid in advance
      by Adtalem as incurred, subject to recoupment in accordance with applicable law) in connection with any threatened or actual action, suit or proceeding to which the Executive may be made a party, brought by any shareholder of Adtalem directly or
      derivatively or by any third party by reason of any act or omission or alleged act or omission in relation to any affairs of Adtalem or any subsidiary or Affiliate of Adtalem of the Executive as an officer, director or employee of Adtalem or of any
      subsidiary or Affiliate of Adtalem.  Adtalem shall use its best efforts to maintain during the Employment Period and thereafter insurance coverage sufficient in the determination of the Board to satisfy any indemnification obligation of Adtalem
      arising under this Section 26.

     

    27.           Nondisparagement.

     

    (a)           The Executive agrees that both during the Employment Period and thereafter, the Executive shall not make or publish any statements or comments
      that disparage or injure the reputation or goodwill of Adtalem or any of its affiliates, or any of its or their respective officers or directors, or otherwise make any oral or written statements that a reasonable person would expect at the time such
      statement is made to likely have the effect of diminishing or injuring the reputation or goodwill of Adtalem, or any of its affiliates, or any of its or their respective officers or directors; provided, however, nothing herein shall prevent the
      Executive from providing any information that may be compelled by law.

    

    

    (b)           Adtalem agrees that both during the Employment Period and thereafter, the Compensation Committee and Board shall not make or publish any
      statements or comments that disparage or injure the reputation or goodwill of the Executive, or otherwise make any oral or written statements that a reasonable person would expect at the time such statement is made to likely have the effect of
      diminishing or injuring the reputation or goodwill of the Executive; provided, however, nothing herein shall prevent the Adtalem from providing any information that may be compelled by law.

    
      16

      
        

    

     

    28.           Assistance in Proceedings. 
      During the Employment Period and thereafter, the Executive will cooperate with Adtalem in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by Adtalem (including, without limitation, the Executive
      being available to Adtalem upon reasonable notice for interviews and factual investigations, appearing at Adtalem’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Adtalem all pertinent
      information and turning over to Adtalem all relevant documents which are or may come into the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s other permitted activities and commitments).  In
      the event Adtalem requires the Executive’s cooperation in accordance with this Section 28, Adtalem will pay the Executive a reasonable per diem as determined by the Board and reimburse the Executive for reasonable expenses incurred in connection
      therewith (including lodging and meals, upon submission of receipts).

     

    29.           Amendment and Waiver.  The
      provisions of this Agreement may be amended or waived only with the prior written consent of Adtalem and the Executive or pursuant to Section 18, and no course of conduct or course of dealing or failure or delay by any Party hereto in enforcing or
      exercising any of the provisions of this Agreement will affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

     

    

    

    IN WITNESS WHEREOF, the Parties hereto have executed
      this Agreement as of the Effective Date.

     

    

     

    
      	
              ADTALEM GLOBAL EDUCATION, INC.  

              

            	
              
                STEPHEN W. BEARD

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              By: /s/ Michael W. Malafronte

              Michael W. Malafronte

              Chair, Compensation Committee 

               

              

            	
              /s/ Stephen W. Beard 

              

              Stephen W. Beard 

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              Date:  August 5, 2021 

              

            	
              Date:  August 4, 2021 

              

            

    

    

      

    
      17

      
        

    

    

    APPENDIX I

     

    DEFINITIONS

     

    “Accrued Benefits” means (a) Base Salary earned
      through the Termination Date; (b) except in the event of a termination by Adtalem with Cause, the balance of any awarded (i.e., the amount and payment of the specific award has been fully approved by the Board) but as yet unpaid, annual cash
      incentive or other incentive awards for any fiscal year prior to the fiscal year during which the Executive’s Termination Date occurs; (c) a payment representing the Executive’s accrued but unused vacation; and (d) anything in this Agreement to the
      contrary notwithstanding, (i) the payment of any vested, but not forfeited, benefits as of the Termination Date under Adtalem’s employee benefit plans payable in accordance with the terms of such plans and (ii) the availability of such benefit
      continuation and conversion rights to which the Executive is entitled in accordance with the terms of such plans.

     

    “Affiliates” means any company, directly or
      indirectly, controlled by, controlling or under common control with Adtalem, including, but not limited to, Adtalem’s subsidiary entities, parent, partners, joint ventures, and predecessors, as well as its successors and assigns.

     

    “Base Salary” means the amount specified in
      Section 3(a) of the Agreement, as adjusted from time to time.

     

    “Board” means the Board of Directors of Adtalem

     

    “Business” means (a) the provision of
      educational services to individuals at the secondary through post-secondary levels of education and/or training services to individuals seeking professional certifications or professional education by (i) a market funded institution offering degree
      and non-degree programs (ii) at classroom locations in multiple states and/or through an online curriculum delivery mechanism, and (b) any other business directly engaged in by Adtalem and its Affiliates during the Employment Period.

     

    “Cause” means (i) the commission of a felony or
      other crime involving moral turpitude or the commission of any other act or omission involving misappropriation, dishonesty, fraud, illegal drug use or breach of fiduciary duty, (ii) willful failure to perform duties as reasonably directed by the
      Board, (iii) the Executive’s gross negligence or willful misconduct with respect to the performance of the Executive’s duties hereunder, (iv) obtaining any personal profit not fully disclosed to and approved by the Board in connection with any
      transaction entered into by, or on behalf of, Adtalem, or (v) any other material breach of this Agreement or any other agreement between the Executive and Adtalem.

     

    “Change in Control” means such term as defined
      in the Adtalem Fourth Amended and Restated Incentive Plan of 2013.

     

    “Change in Control Period” means the period
      commencing on the date of a Change in Control and ending on the 12-month anniversary of such date.

    
      18

      
        

    

     

    “Code” means the Internal Revenue Code of 1986,
      as amended.

    

    

    “Code of Business Conduct and Ethics” means such
      code as maintained by Adtalem, as amended from time to time.

     

    “Compensation Committee” means that committee of
      the Board which shall have authority over the compensation (cash and non-cash) of certain aspects of Adtalem, including, but not limited to, all officers and executives of Adtalem, including the Executive, and all option grants for any employee,
      executive, officer, director or consultant of Adtalem.

     

    “Copyright Act” means the United States
      Copyright Act of 1976, as amended.

     

    “Customer” means any Person:

     

    (a)           who purchased products or services from Adtalem or any of its Affiliates during the 12-month period prior to the date of termination of the
      Executive’s employment; or

     

    (b)           to whom Adtalem or any of its Affiliates solicited the sale of its products or services during the 12-month period prior to the date of
      termination of the Executive’s employment.

     

    “Good Reason” means, without the Executive’s
      consent, (i) material diminution in title, duties, responsibilities or authority; (ii) reduction of Base Salary, MIP Target or employee benefits except for across-the-board changes for executive officers of Adtalem; (iii) exclusion from executive
      benefit/compensation plans; (iv) a change in reporting such that the Executive is no longer reporting exclusively to the Board; (v) material breach of the Agreement that Adtalem has not cured within 30 days after the Executive has provided Adtalem
      notice of the material breach which shall be given within 60 days of the Executive’s knowledge of the occurrence of the material breach; or (v) resignation in compliance with securities, corporate governance or other applicable law (such as the US
      Sarbanes-Oxley Act) as specifically applicable to such Executive.

     

    “MIP Award” means the amount actually awarded
      the Executive under Adtalem’s annual Management Incentive Plan, as in effect from time to time, upon the achievement of specific Adtalem-wide and personal performance goals of the Executive that will be determined each fiscal year by the Compensation
      Committee as necessary and appropriate to comply with Adtalem policy.

     

    “MIP Target” means 120% of the Executive’s Base
      Salary.

     

    “Permanent Disability” means mental, physical or
      other illness, disease or injury, which has prevented the Executive from substantially performing the Executive’s duties hereunder for the greater of: (a) the eligibility waiting period under the Adtalem long term disability program in which he/she
      participates, if any, (b) an aggregate of six months in any 12-month period, or (c) a period of three consecutive months.

    
      19

      
        

    

     

    “Person” means any natural person, corporation,
      general partnership, limited partnership, limited liability company or partnership, proprietorship, other business organization, trust, union, association or governmental or regulatory entities, department, agency or authority.

    

    

    “Release” means the waiver and release agreement
      generally used by Adtalem for executives, as amended from time to time.

     

    “Restricted Area” means (a) throughout the
      world, but if such area is determined by judicial action to be too broad, then it means (b) within North America, but if such area is determined by judicial action to be too broad, then it means (c) within the continental United States, but if such
      area is determined by judicial action to be too broad, then it means (d) within any state in which Adtalem and its Affiliates is engaged in Business.

     

    “Termination Date” means the last day of the
      Executive’s employment with Adtalem.

    
      20

      
        

    

    

    

    APPENDIX II

    

    

    SIGN-ON EQUITY AWARD

    

    

    

    

    	Award Form  

          	
            Amount

          	Vesting
                  Terms 

          
	 	 	 
	Restricted Stock Units  

          	$4,416,000  

          	Four Year Ratable 

          
	 	 	 
	Stock Options 
            

          	$1,104,000 

          	Four Year Ratable 

          
	 	 	 
	Performance Stock Units (“PSUs”)  

          	$2,500,000*
            

          	Three Year Cliff 

          
	 	 	 
	Total  

          	
            $8,020,000

          	 

    

    

    

    * Sign-on Equity PSU Target.  Actual payment to be
      determined based upon satisfaction of two discrete performance components with a weighted allocation as follows:

    

    

    	

          	1.	
            Seventy-five percent (75%) based upon achievement of cost synergy goals related to Walden University acquisition.

          

    

    

    	

          	2.	
            Twenty-five percent (25%) based upon successful divestiture of financial services businesses.

          

    

    

    The satisfaction of each component shall be determined at the complete discretion of the Compensation Committee.

     

    

    

    

  

  21Document

Exhibit 10.3

THE NONQUALIFIED DEFERRED COMPENSATION PLAN
PLAN DOCUMENT

THE NONQUALIFIED DEFERRED COMPENSATION PLAN

Section 1. Purpose

By execution of the Adoption Agreement, the Company has adopted the Plan set forth herein, and in the Adoption Agreement, to provide a means by which certain management Employees or Independent Contractors of the Employer may elect to defer receipt of current Compensation from the Employer in order to provide retirement and other benefits on behalf of such Employees or Independent Contractors of the Employer, as selected in the Adoption Agreement. The Plan is intended to be a nonqualified deferred compensation plan that complies with the provisions of Section 409A of the Internal Revenue Code (the "Code"). The Plan is also intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974 (“ERISA”) or independent contractors. Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and administered in a manner consistent with these intentions.

Section 2. Definitions

2.0     “401(k) Refund Offset” means a deferral of the Participant’s base salary equal to the gross amount of a 401(k)-refund caused by Average Deferral Percentage (ADP) testing failures in the qualified plan.  The 401(k) refund itself shall be paid to the Participant from the 401(k) plan and reported on Form 1099-R. This deferral shall not apply to Roth 401(k) refunds or any other refund not generated due to failed testing.
2

2.1     "Active Participant" means, with respect to any day or date, a Participant who is in Service on such day or date; provided, that a Participant shall cease to be an Active Participant (i) immediately upon a determination by the Committee that the Participant has ceased to be an Employee or Independent Contractor, or (ii) at the end of the Plan Year that the committee determines the Participant no longer meets the eligibility requirements of the Plan.
2.2     "Adoption  Agreement"  means  the  written  agreement  pursuant  to  which  the Company adopts the Plan. The Adoption Agreement is a part of the Plan as applied to the Company.
2.3     "Beneficiary"  means  the  person,  persons,  entity  or  entities  designated  or determined pursuant to the provisions of Section 13 of the Plan.
2.4     "Board" means the Board of Directors of the Company, if the Company is a corporation. If the Company is not a corporation, "Board" shall mean the Company.
2.5  "Change in Control Event" means an event described in Section 409A(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations thereunder.
2.6     "Committee" means the Employer, an administrative committee appointed by the Board to serve at the pleasure of the Board, the Board itself, any other person or persons as determined in the Employer’s discretion, or any other person or persons noted in the Adoption Agreement. The Recordkeeper is not the Committee.
2.7     "Company" means the company designated in the Adoption Agreement.
2.8     "Compensation" shall have the meaning designated in the Adoption Agreement.
3

2.9     "Crediting  Date"  means  the  date  any  corresponding  asset  payment  used  to informally finance the  Plan,  if applicable,  is  credited  to  the Employer’s  corporate owned investment account or any other day directed by the Employer.  Otherwise, all Credits shall be credited on any business day as specified by the Employer.
2.10   "Deferred Compensation Account" means the account maintained with respect to each Participant under the Plan. The Deferred Compensation Account shall be credited with Participant Deferral Credits and Employer Credits, credited or debited for deemed investment gains or losses, and adjusted for payments in accordance with the rules and elections in effect under Section 8. As permitted in the Adoption Agreement, the Deferred Compensation Account of a Participant may consist of one or more accounts. A Participant may elect payment options for each account as described in Section 7.1 and deemed investments for each account as described in Section 8.2.
2.11   "Disabled or Disability" means Disabled or Disability within the meaning of Section  409A  of the Code and  the regulations  thereunder.  Generally,  this  means  that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Employer.
2.12   “Education  Account”  is  an  In-Service  Account  which  will  be  used  by  the Participant for educational purposes.
2.13   "Effective Date" shall be the date designated in the Adoption Agreement.
4

2.14   "Employee" means an individual in the Service of the Employer if the relationship between the individual and the Employer is the legal relationship of employer and employee. An individual shall cease to be an Employee upon the Employee's Separation from Service.
2.15   "Employer" means the Company, as identified in the Adoption Agreement, and any Participating Employer which adopts this Plan. An Employer may be a corporation, a limited liability company, a partnership or sole proprietorship.
2.16   "Employer Credits" means the amounts credited to the Participant's Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.2.
2.17   "Grandfathered Amounts" means, if applicable, the amounts that were deferred under the Plan and were earned and vested within the meaning of Section 409A of the Code and regulations thereunder as of December 31, 2004. Grandfathered Amounts shall be subject to the terms designated in the Plan which were in effect as of October 3, 2004.
2.18   "Independent Contractor" means an individual in the Service of the Employer if the relationship between the individual and the Employer is not the legal relationship of employer and employee. An individual shall cease to be an Independent Contractor upon the termination of the Independent Contractor's Service. An Independent Contractor shall include a director of the Employer who is not an Employee.
2.19   "In-Service Account" means a separate account to be kept for each Participant that has elected to take in-service distributions as described in Section 5.4. The In-Service Account shall be adjusted in the same manner and at the same time as the 
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Deferred Compensation Account under Section 8 and in accordance with the rules and elections in effect under Section 8.
2.20   "Normal Retirement Age", which may also be called “Full Vesting Age”, of a Participant means the age designated in the Adoption Agreement.
2.21   "Participant" means with respect to any Plan Year an Employee or Independent Contractor who has been designated by the Committee as a Participant and who has entered the Plan or who has a Deferred Compensation Account under the Plan; provided that if the Participant is an Employee, the individual must be a member of a select group of management or highly compensated employee of the Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
2.22   "Participant Deferral Credits" means the amounts credited to the Participant's Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.1.
2.23   "Participating   Employer"   means   any   trade   or   business   (whether   or   not incorporated) which adopts this Plan with the consent of the Company identified in the Adoption Agreement.
2.24  "Participation Agreement" means a written agreement, including electronic submissions by the Participant or at the Participant’s direction, entered into between a Participant and the Employer pursuant to the provisions of Section 4.1
2.25   "Performance-Based Compensation" means compensation where the amount of, or entitlement to, the compensation is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least twelve months. Organizational or individual performance criteria are considered preestablished if established in writing within 90 days after the 
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commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established. Performance-based compensation may include payments based upon subjective performance criteria as provided in regulations and administrative guidance promulgated under Section 409A of the Code.
2.26   "Plan" means the name of the Plan as designated in the Adoption Agreement.
2.27   "Plan-Approved Domestic Relations Order" shall mean a judgment, decree, or order (including the approval of a settlement agreement) which is:
2.27.1  Issued pursuant to a State's domestic relations law;

2.27.2  Relates to the provision of child support, alimony payments or marital property rights to a Spouse, former Spouse, child or other dependent of the Participant;

2.27.3  Creates or recognizes the right of a Spouse, former Spouse, child or other dependent of the Participant to receive all or a portion of the Participant's benefits under the Plan;

2.27.4  Requires payment to such person of an interest in the Participant's benefits in a lump sum payment or any other form of payment allowed under the Plan at a specific time; and

2.27.5  Meets such other requirements established by the Committee.

2.28   "Plan Year" means the twelve-month period ending on the last day of December, unless otherwise noted in the Adoption Agreement, provided, that the initial Plan Year may have fewer than twelve months.
2.28.1 “Recordkeeper” means the individual or entity responsible for keeping records of Plan activity including the tracking of Participant Deferred Compensation Account balances.  As to applicable tax and regulatory rules, the actions of the 
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Recordkeeper are limited to executing the decisions and directions of the Committee. The Recordkeeper does not make plan administration decisions.
2.29   "Qualifying Distribution Event"  means (i) the Separation from Service   of the Participant, (ii) the date the Participant becomes Disabled, (iii) the death of the Participant, (iv) the time specified by the Participant for an In-Service Distribution, (v) a Change in Control Event, or (vi) an Unforeseeable Emergency, each to the extent provided in Section 5.
2.30   "Seniority Date" which may also be called “Installment Eligibility Date” shall have the meaning designated in the Adoption Agreement and shall apply to both the initial deferral election described in Section 4 and the Subsequent deferral election described in Section 7.5.
2.31   "Separation from Service" or "Separates from Service" means a "separation from service" within the meaning of Section 409A of the Code.
2.32   "Service" as an Employee means employment by the Employer. For purposes of the Plan, the employment relationship is treated as continuing intact while the Employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Employee's right to reemployment is provided either by statute or contract. If the Participant is an Independent Contractor, "Service" shall mean the period during which the contractual relationship exists between the Employer and the Participant. The contractual relationship is not terminated if the Participant anticipates a renewal of the contract or becomes an Employee. A Participant who has a Deferred Compensation Account which contains amounts deferred or contributed as an Employee and a member of the Board (Dual Status), Services performed in those capacities will be looked at independently 
8

when determining if a Separation from Service has occurred.  Services as a member of the Board and Independent Contractor (in a capacity not on the Board) will be looked collectively when determining if a Separation from Service has occurred.
2.33   "Service  Bonus"  means  any  bonus  that  does  not  meet  the  definition  of Performance-Based Compensation that is paid to a Participant by the Employer as noted in the Adoption Agreement.
2.34   "Specified Employee" means an Employee who meets the requirements for key employee treatment under Section 416(i)(l)(A)(i), (ii) or (iii) of the Code (applied in accordance with the regulations thereunder and without regard to Section 416(i)(5) of the Code) at any time during the twelve month period ending on December 31 of each year (the "identification date"). If the person is a key employee as of any identification date, the person is treated as a Specified Employee for the twelve-month period beginning on the first day of the fourth month following the identification date. Unless binding corporate action is taken to establish different rules for determining Specified Employees for all plans of the Company and its controlled group members that are subject to Section 409A of the Code, the foregoing rules and the other default rules under the regulations of Section 409A of the Code shall apply.
2.35   "Spouse" or ''Surviving Spouse" means, except as otherwise provided in the Plan, a person who is the legally married spouse or surviving spouse of a Participant.
2.36  "Unforeseeable Emergency" means an "unforeseeable emergency" within the meaning of Section 409A of the Code.
2.37   "Years of Service" means each Plan Year of Service completed by the Participant. For vesting purposes, Years of Service shall be calculated from the date 
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designated in the Adoption Agreement and Service shall be based on service with the Company and all Participating Employers.

Section 3.  Participation

The Committee in its discretion shall designate each Employee or Independent Contractor who is eligible to participate in the Plan. A Participant who Separates from Service with the Employer and who later returns to Service may be eligible consistent with Section 409A of the Code and upon satisfaction of such terms and conditions as the Committee shall establish.

Section 4.  Credits to Deferred Compensation Account

4.1     Participant Deferral Credits. To the extent provided in the Adoption Agreement, each  Active  Participant  may  elect,  by  entering  into  a  Participation Agreement  with  the Employer, to defer the receipt of Compensation from the Employer by a dollar amount  or percentage  specified  in  the  Participation  Agreement.  The  amount  of Compensation the Participant elects to defer, the Participant Deferral Credit, shall be credited by the Employer to the Deferred Compensation Account maintained for the Participant pursuant to Section 8. The following special provisions shall apply with respect to the Participant Deferral Credits of a Participant:
4.1.1  The Employer shall credit to the Participant's Deferred Compensation Account on each Crediting Date an amount equal to the total Participant Deferral Credit for the period ending on such Crediting Date.

4.1.2  An election pursuant to this Section 4.1 shall be made by the Participant by executing and delivering a Participation Agreement to the Committee. Except as otherwise provided in this Section 4.1, the Participation Agreement shall become effective with respect to such Participant as of the first day of January following the date such 
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Participation Agreement is received by the Committee. A Participant's election may be changed at any time prior to the last permissible date for making the election as permitted in this Section 4.1, and shall thereafter be irrevocable. Any election of a Participant shall continue in effect for the time period as set forth in the Adoption Agreement.

4.1.3   A Participant may execute and deliver a Participation Agreement to the Committee within 30 days after the date the Participant first becomes eligible to participate in the Plan. After the 30-day period expires, or after any shorter time period as agreed to by the Participant and the Committee, the latest election made by the Participant during that period becomes irrevocable. Such election shall then be effective as of the first payroll period commencing following the date the Participation Agreement becomes irrevocable. Whether a Participant is treated as newly eligible for participation under this Section shall be determined in accordance with Section 409A of the Code and the regulations thereunder, including (i) rules that treat all elective deferral account balance plans as one plan, and (ii) rules that treat a previously eligible Employee as newly eligible if the Participant’s benefits had been previously distributed or if the Participant has been ineligible for 24 months. For Compensation that is earned based upon a specified performance period (for example, an annual bonus), where a deferral election is made under this Section but after the beginning of the performance period, the election will only apply to the portion of the Compensation equal to the total amount of the Compensation for the service period multiplied by the ratio of the number of days remaining in the performance period after the date the election becomes irrevocable over the total number of days in the performance period.

4.1.4  A Participant may unilaterally modify a Participation Agreement (either to terminate, increase or decrease future Compensation which is subject to deferral within the percentage limits set forth in Section 4.1 of the Adoption Agreement) by providing a written modification of the Participation Agreement to the Committee. The modification shall become effective as of the first day of January following the date such written modification is received by the Committee, or at such later date as required under Section 409A of the Code.

4.1.5   If the Participant performed services continuously from the later of the beginning of the performance period or the date upon which the performance criteria are established through the date upon which the Participant makes an initial deferral election, a Participation Agreement relating to the deferral of Performance- Based Compensation may be executed and delivered to the Committee no later than the date which is 6 months prior to the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be made after such Compensation has become readily ascertainable.

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4.1.6 If the Employer has a fiscal year other than the calendar year, Compensation relating to Service in the fiscal year of the Employer (such as a bonus based on the fiscal year of the Employer), of which no amount is paid or payable during the fiscal year, may be deferred at the Participant's election if the election to defer is made not later than the close of the Employer's fiscal year next preceding the first fiscal year in which the Participant performs any services for which such Compensation is payable.

4.1.7  Compensation payable after the last day of the Participant's taxable year solely for services provided during the final payroll period containing the last day of the Participant's taxable year (i.e., generally December 31) is treated for purposes  of this  Section  4.1  as  Compensation for services  performed  in  the subsequent taxable year.

4.1.8  The Committee may from time to time establish policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which Participant Deferral Credits may be made.

4.1.9  If a Participant becomes Disabled all currently effective deferral elections for such Participant shall be cancelled. At the time the participant is no longer Disabled, subsequent elections to defer future compensation will be permitted under this Section 4.

4.1.10  If a Participant applies for and receives a distribution on account of an Unforeseeable Emergency, all currently effective deferral elections for such Participant shall be cancelled. Subsequent elections to defer future compensation will be permitted under this Section 4. Furthermore, a Participant may apply to the Committee to cancel all deferral elections due to an Unforeseeable Emergency.

4.2       Employer Credits. If designated by the Employer in the Adoption Agreement, the Employer shall cause the Committee to credit to the Deferred Compensation Account of each Active Participant an Employer Credit as determined in accordance with the Adoption Agreement. A Participant must make distribution elections with respect to any Employer Credits credited to the Deferred Compensation Account by the deadline that would apply under Section 4.1 for distribution elections with respect to Participant Deferral Credits credited at the same time, on a Participation Agreement that is timely executed and delivered to the Committee pursuant to Section 4.1. If no distribution election is made, vested amounts in the Deferred Compensation Account will 
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be distributed in a lump sum upon the earliest of any Qualifying Distribution Event limited to Separation from Service, Disability, Death or Change in Control.

4.3.      Deferred Compensation Account. All Participant Deferral Credits and Employer Credits shall be credited to the Deferred Compensation Account of the Participant as provided in Section 8.

Section 5.  Qualifying Distribution Events

5.1    Separation from Service. If the Participant Separates from Service with the Employer, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7. Notwithstanding the foregoing, no distribution shall be made earlier than six months after the date of Separation from Service (or, if earlier, the date of death) with respect to a Participant who as of the date of Separation from Service is a Specified Employee of a corporation (or a member of such corporation's controlled group) the stock in which is traded on an established securities market (either foreign or domestic) or otherwise. Any payments to which such Specified Employee would be entitled during the first six months following the date of Separation from Service shall be accumulated and paid on the first day of the seventh month following the date of Separation from Service, and shall be adjusted for deemed investment gain and loss incurred during the six month period.
5.2     Disability.  If  the  Employer  designates  in  the  Adoption  Agreement  that distributions are permitted  under  the Plan  when  a Participant  becomes  Disabled,  and  the Participant becomes Disabled while in Service, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7.
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5.3      Death. If the Participant dies while in Service, the Employer shall pay a benefit to the Participant's Beneficiary in the amount of the vested balance in the Deferred Compensation Account and any additional amount designated in the Adoption Agreement.  Payment of such benefit shall be made by the Employer as provided in Section 7.
5.4      In-Service Distributions. If the Employer designates in the Adoption Agreement that in-service distributions are permitted under the Plan, a Participant may designate in the Participation Agreement to have a specified amount credited to the Participant's In-Service Account for in-service distributions at the date specified by the Participant. In no event may an in- service distribution of an amount be made before the date that is two years after the first day of the  year in  which  any deferral  election  to  such  In-Service Account  became  effective. Notwithstanding the foregoing, if a Participant incurs a Qualifying Distribution Event prior to the date on which the entire balance in the In-Service Account has been distributed, then the vested balance in the In-Service Account on the date of the Qualifying Distribution Event shall be paid as provided under Section 7.1 for payments on such Qualifying Distribution Event.

5.5      Change in Control Event. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan upon the occurrence of a Change in Control Event, the Participant may designate in the Participation Agreement to have the vested balance in the Deferred Compensation Account paid to the Participant upon a Change in Control Event by the Employer as provided in Section 7.
5.6      Unforeseeable  Emergency.   If  the  Employer   designates   in   the  Adoption Agreement that distributions are permitted under the Plan upon the occurrence of an Unforeseeable Emergency event, a distribution from the Deferred Compensation 
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Account may be made to a Participant in the event of an Unforeseeable Emergency, subject to the following provisions:

5.6.1 A Participant may, make an application to the Committee to cancel all active deferral elections or to cancel deferral elections and receive a distribution in a lump sum of all or a portion of the vested balance in the Deferred Compensation Account (determined as of the date the distribution, if any, is made under this Section 5.6) because of an Unforeseeable Emergency. A distribution because of an Unforeseeable Emergency shall not exceed the amount required to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution, after taking into account the extent to which the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by stopping current deferrals under the Plan pursuant to Section 4.1.10.

5.6.2   The Participant's request for a distribution on account of Unforeseeable Emergency must be made in writing to the Committee. The request must specify the nature of the financial hardship, the total amount requested to be distributed from the Deferred Compensation Account, and the total amount of the actual expense incurred or to be incurred on account of the Unforeseeable Emergency.

5.6.3  If a cancellation of deferral elections is approved such cancellation will be effective as soon as practicable. If a distribution under this Section 5.6 is approved by the Committee, such distribution will be made as soon as practicable following the date it is approved. The processing of the request shall be completed as soon as  practicable  from  the  date  on  which  the Committee receives  the properly completed written  request for a distribution on account of an Unforeseeable Emergency. If a Participant's Separation from Service occurs after a request is approved in accordance with this Section 5.6.3, but prior to distribution of the full amount approved, the approval of the request shall be automatically null and void and the benefits which the Participant is entitled to receive under the Plan shall be distributed in accordance with the applicable distribution provisions of the Plan.

5.6.4  The Committee may from time to time adopt additional policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which such distributions may be made so that the Plan may be conveniently administered.

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Section 6.  Vesting

A Participant shall be fully vested in the portion of the Deferred Compensation Account attributable to Participant Deferral Credits, and all income, gains and losses attributable thereto. A Participant shall become fully vested in the portion of the Deferred Compensation Account attributable to Employer Credits, and income, gains and losses attributable thereto, in accordance with the vesting schedule and provisions designated by the Employer in the Adoption Agreement. Once a Participant achieves vesting on an Employer Credit, it cannot be reduced or eliminated.  If Change in Control was elected as a vesting event in the Adoption Agreement participants accounts shall be fully vested upon a Change in Control, however new vesting schedules may be applied to future Employer Credits. If a Participant's Deferred Compensation Account is not fully vested upon Separation from Service, the portion of the Deferred Compensation Account that is not fully vested shall be forfeited.\

Section 7.  Distribution Rules

7.1      Payment Options. The Employer shall designate in the Adoption Agreement the payment options which may be elected by the Participant. The Participant may at such time elect a method of payment for Qualifying Distribution Events as specified in the Adoption Agreement. If the Participant is permitted by the Employer in the Adoption Agreement to elect different payment  options  and  does  not  make a valid  election,  the vested  balance in  the Deferred Compensation Account will be distributed as a lump sum upon the Qualifying Distribution Event.

Notwithstanding the foregoing, if certain Qualifying Distribution Events occur prior to the date on which the vested balance of a Participant's Deferred Compensation 
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Account is completely paid pursuant to this Section 7.1 following the occurrence of certain Qualifying Distribution Events, the following rules apply:
7.1.1   If the currently effective Qualifying Distribution Event is a Separation from Service or Disability, and the Participant subsequently dies, the remaining unpaid vested balance of a Participant's Deferred Compensation Account shall be paid as a lump sum.

7.1.2   If the currently effective Qualifying Distribution Event is a Change in Control Event, and any subsequent Qualifying Distribution Event occurs (except an In-Service Distribution described in Section 2.29(iv)), the remaining unpaid vested balance of a Participant's Deferred Compensation Account shall be paid as provided under Section 7.1 for payments on such subsequent Qualifying Distribution Event.

7.2      Timing of Payments. Payment shall be made in the manner elected by the Participant and shall commence as soon as practicable after the distribution date specified for the Qualifying Distribution Event. Distribution shall be no later than within 60 days following the day after the Qualifying Distribution Event. Such payment shall not be deemed late if the payment is made on or before the later of  (i)  December 31  of  the  calendar  year  in  which  the  Qualifying Distribution Event occurs, or (ii) the date that is 2-1/2 months after the Qualifying Distribution Event occurs. Participants shall not have any influence as to the tax year or timing of the distribution.   For each payment, the Committee must specify a date for the Deferred Compensation Account(s) to be valued. In the event the Participant fails to make a valid election of the payment method, the distribution will be made in a single lump sum payment as soon as practicable after the Qualifying Distribution Event. A payment may be further delayed to the extent permitted in accordance with regulations and guidance under Section 409A of the Code.

7.3      Installment Payments. If the Participant elects to receive installment payments upon a Qualifying Distribution Event, the payment of each installment shall be made on the anniversary of the date of the first installment payment, and the amount of 
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the installment shall be adjusted on such anniversary for credits or debits to the Participant's account pursuant to Section 8 of the Plan. Such adjustment shall be made by dividing the balance in the Deferred Compensation Account on such date by the number of installments  remaining  to  be  paid hereunder; provided that the last installment due under the Plan shall be the entire amount credited to the Participant's account on the date of payment.

7.4     De Minimis Amounts. Notwithstanding any payment election made by the Participant, if the Employer designates a pre-determined de minimis amount in the Adoption Agreement, the vested balance in all Deferred Compensation Accounts of the Participant will be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution Event the vested balance does not exceed such pre-determined de minimis amount; provided, however, that such distribution will be made only where the Qualifying Distribution Event is a Separation from Service, death, Disability,or Change in Control Event. In addition, the Employer may distribute a Participant's vested balance in all of the Participant’s Deferred Compensation Accounts at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan as provided under Section 409A of the Code.

7.5      Subsequent Elections. With the consent of the Committee, a Participant may delay or change the method of payment of the Deferred Compensation Account subject to the following requirements:

7.5.1  The new election may not take effect until at least 12 months after the date on which the new election is made.

7.5.2  If the new election relates to a payment for a Qualifying Distribution Event other than the death of the Participant, the Participant becoming Disabled, or an Unforeseeable Emergency, the new election must provide 
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for the deferral of the payment for a period of at least five years from the date such payment would otherwise have been made.

7.5.3  If the new election relates to a payment from the In-Service Account, the new election must be made at least 12 months prior to the date of the first scheduled payment from such account.

For purposes of this Section 7.5 and Section 7.6, a payment is each separately identified amount to which the Participant is entitled under the Plan; provided, that entitlement to a series of installment payments is treated as the entitlement to a single payment.
7.6      Acceleration Prohibited. The acceleration of the time or schedule of any payment due under the Plan is prohibited except as expressly provided in regulations and administrative guidance promulgated under Section 409A of the Code (such as accelerations for domestic relations orders and employment taxes). It is not an acceleration of the time or schedule of payment if the Employer waives or accelerates the vesting requirements applicable to a benefit under the Plan.

7.7    Residual Distributions. If calculation of the amount of any credit to a Participant’s Deferred Compensation Account is not administratively practicable due to events beyond the control  of the Employer,  payments  may be made to  the Participant  for residual  amounts contributed to or remaining in a Deferred Compensation Account after payments under the provisions of this Section 7 have commenced or been completed. The residual amount shall be credited to the Deferred Compensation Account when the calculation of the amount becomes administratively practicable. Examples of residual amounts include, but are not limited to, additional investment returns credited after payment (due to dividends or pricing changes) or additional contributions made after payment (such as an annual bonus deferral or an Employer Credit). Payments that would have been made had the residual amount been calculable at the benefit commencement 
19

date shall be made up as soon as practicable after crediting to the Deferred Compensation Account, in no case later than the end of the year in which calculation of the amount becomes administratively practicable.

7.8     Ineffective Deferrals. If a Participant deferral election under Section 4 to contribute to an In-Service Account carries over to a subsequent year (an evergreen election) and the deferral election is ineffective (i.e., the distribution election would cause payment in the current or prior years), the amount deferred will be credited to a Deferred Compensation Account that is not an In-Service Account. If the Participant only has one account of this type, the amount deferred will be credited to that account. If the Participant has multiple accounts of this type, and one of the accounts has a lump sum at Separation from Service distribution election, the amount deferred will be credited to that account. If the Participant has multiple accounts of this type and does not have an account with a lump sum at Separation from Service distribution election, one will be established with a lump sum at Separation from Service distribution election and the amount deferred will be credited to this account.

Section 8.  Accounts; Deemed Investment; Adjustments to Account

8.1     Accounts. The Committee shall establish a book reserve account, entitled the "Deferred Compensation Account," on behalf of each Participant. The Committee shall also establish an In-Service Account as a part of the Deferred Compensation Account of each Participant, if applicable. The amount credited to the Deferred Compensation Account shall be adjusted pursuant to the provisions of Section 8.3.
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8.2     Deemed Investments. The Deferred Compensation Account of a Participant shall be credited with an investment return determined as if the account were invested in one or more investment funds made available by the Committee. The Participant shall elect the investment funds in which the Participant’s Deferred Compensation Account shall be deemed to be invested. Such election shall be made in the manner prescribed by the Committee and shall take effect upon the entry of the Participant into the Plan. The investment election of the Participant shall remain in effect until a new election is made by the Participant. In the event the Participant fails for any reason to make an effective election of the investment return to be credited to the account, the investment return shall be determined by the Committee.
8.3     Adjustments to Deferred Compensation Account. With respect to each Participant who has a Deferred Compensation Account under the Plan, the amount credited to such account shall be adjusted by the following debits and credits, at the times and in the order stated:
8.3.1  The Deferred Compensation Account shall be debited each business day with the total amount of any payments made from such account since the last preceding business day. Unless otherwise specified bythe Employer, each deemed investment fund will be debited pro-rata based on the value of the investment funds as of the end of the preceding business day.

8.3.2  The Deferred Compensation Account shall be credited on each Crediting Date with the total amount of any Participant Deferral Credits and Employer Credits to such account since the last preceding Crediting Date.

8.3.3  The Deferred Compensation Account shall be credited or debited on each day securities are traded on a national stock exchange with the amount of deemed investment gain or loss resulting from the performance of the deemed investment funds elected by the Participant in accordance with Section 8.2. The amount of such deemed investment gain or loss shall be determined by the Committee and such determination shall be final and conclusive upon all concerned.

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Section 9.  Administration  by Committee

9.1     Membership of Committee. If the Committee consists of individuals appointed by the Board, they will serve at the pleasure of the Board. Any member of the Committee may resign, and any successor shall be appointed by the Board.
9.2     General Administration. The Committee shall be responsible for the operation and administration of the Plan and for carrying out its provisions. The Committee shall have the full authority and discretion  to make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and decide or resolve any and all questions, including interpretations of this Plan, as may arise in connection with this Plan. Any such action taken by the Committee shall be final and conclusive on any party. To the extent the Committee has been granted discretionary authority under the Plan, the Committee’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter. The Committee shall be entitled to rely conclusively upon  all  tables,  valuations,  certificates,  opinions  and reports furnished by any actuary, accountant, controller, counsel or other person employed or engaged by the Employer with respect to the Plan. The Committee may, from time to time, employ agents and delegate to  such  agents,  including  Employees  of  the  Employer,  such administrative or other duties as it sees fit.
9.3     Indemnification. To the extent not covered by insurance, the Employer shall indemnify the Committee, each Employee, officer, director, and agent of the Employer, and all persons formerly serving in such capacities, against any and all liabilities or expenses, including all legal fees relating thereto, arising in connection with the exercise of duties and responsibilities with respect to the Plan, provided however that the 
22

Employer shall not indemnify any person for liabilities or expenses due to that person’s own gross negligence or willful misconduct.

Section 10.  Contractual Liability, Trust

10.1   Contractual Liability. Unless otherwise elected in the Adoption Agreement, the Company shall be obligated to make all payments hereunder. This obligation shall constitute a contractual liability of the Company to the Participants, and such payments shall be made from the general funds of the Company. The Company shall not be required to establish or maintain any special or separate fund, or otherwise to segregate assets to assure that such payments shall be made, and the Participants shall not have any interest in any particular assets of the Company by reason of its obligations hereunder. To the extent that any person acquires a right to receive payment from the Company under the Plan, such right shall be no greater than the right of an unsecured creditor of the Company.
10.2   Trust. The Employer may establish a trust to assist it in meeting its obligations under the Plan. Any such trust shall conform to the requirements of a grantor trust under Revenue Procedures 92-64 and 92-65 and at all times during the continuance of the trust the principal and income of the trust shall be subject to claims of general creditors of the Employer under federal and state law. The establishment of such a trust would not be intended to cause Participants to realize current income on amounts contributed thereto, and the trust would be so interpreted and administered.

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Section 11. Allocation of Responsibilities

The persons responsible for the Plan and the duties and responsibilities allocated to each are as follows:

11.1 Board

(i)    To amend the Plan;

(ii)    To appoint and remove members of the Committee; and

(iii)  To terminate the Plan as permitted in Section 14.

11.2 Committee.

(i)     To designate Participants;

(ii)    To  interpret  the  provisions  of  the  Plan  and  to  determine  the  rights  of  the Participants under the Plan, except to the extent otherwise provided in Section 16 relating to claims procedure;

(iii)  To administer the Plan in accordance with its terms, except to the extent powers to administer the Plan are specifically delegated to another person or persons as provided in the Plan;

(iv)   To account for the amount credited to the Deferred Compensation Account of a
Participant;

(v)    To direct the Employer in the payment of benefits;

(vi)   To file such reports as may be required with the United States Department of Labor, the Internal Revenue Service and any other government agency to which reports may be required to be submitted from time to time; and

(vii)  To administer the claims procedure to the extent provided in Section 16.

Section 12.  Benefits Not Assignable; Facility of Payments

12.1    Benefits Not Assignable. No portion of any benefit credited or paid under the Plan with respect to any Participant shall be subject in any manner to anticipation, 
24

alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void, nor shall any portion of such benefit be in any manner payable to any assignee, receiver or any one trustee.
12.2    Plan-Approved  Domestic  Relations  Orders.  The  Committee  shall  establish procedures for determining whether an order directed to the Plan is a Plan- Approved Domestic Relations Order. If the Committee determines that an order is a Plan- Approved Domestic Relations Order, the Committee shall cause the payment of amounts pursuant to or segregate a separate account as provided by (and to prevent any payment or act which might be inconsistent with) the Plan-Approved Domestic Relations Order notwithstanding Section 12.1.
12.3    Payments to Minors and Others. If any individual entitled to receive a payment under the Plan shall be physically, mentally or legally incapable of receiving or acknowledging receipt of such payment, the Committee, upon the receipt of satisfactory evidence of incapacity and satisfactory evidence that another person or institution is maintaining custody of that person and that no guardian or committee has been appointed, may cause any payment otherwise payable to that person to be made to such person or institution so maintaining custody. Payment to such person or institution shall be in full satisfaction of all claims by or through the Participant to the extent of the amount thereof.

Section 13.  Beneficiary

The Participant's Beneficiary shall be the person, persons, entity or entities designated by the Participant on the Beneficiary designation form provided by and filed with the Committee or its designee. If the Participant does not designate a Beneficiary, the 
25

Beneficiary shall be the Surviving Spouse. If the Participant does not designate a Beneficiary and has no Surviving Spouse, the Beneficiary shall be the Participant's estate. The designation of a Beneficiary may be changed or revoked only by filing a new Beneficiary designation form with the Committee or its designee. If a Beneficiary (the "primary Beneficiary") is receiving or is entitled to receive payments under the Plan and dies before receiving all of the payments due, the balance to which the Beneficiary is entitled shall be paid to the contingent Beneficiary, if any, named in the Participant's current Beneficiary designation form. If there is no contingent Beneficiary, the balance shall be paid to the estate of the primary Beneficiary. Any Beneficiary may disclaim all or any part of any benefit to which such Beneficiary shall be entitled hereunder by filing a written disclaimer with the Committee before payment of such benefit is to be made. Such a disclaimer shall be made in a form satisfactory to the Committee and shall be irrevocable when filed. Any benefit disclaimed shall be payable from the Plan in the same manner as if the Beneficiary who filed the disclaimer had predeceased the Participant.

Section 14.  Amendment and Termination of Plan

The Employer may amend any provision of the Plan or terminate the Plan at any time; provided, that in no event shall such amendment or termination reduce the balance in any Participant's Deferred Compensation Account, including reduction in vesting percentage, as of the date of such amendment or termination, nor shall any such amendment materially adversely affect the Participant relating to the payment of such Deferred Compensation Account. Notwithstanding the foregoing, the following special provisions shall apply:
14.1  Termination and liquidation of the Plan in the Discretion of the Employer. The Employer in its discretion may terminate the Plan and distribute vested benefits in a 
26

single lump sum to Participants subject to the following requirements and any others specified under Section 409A of the Code:

14.1.1 All arrangements sponsored by the Employer that would be aggregated with the Plan under Section 1.409A-l(c) of the Treasury Regulations are terminated.

14.1.2 No payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are made within 12 months of the termination date.

14.1.3 All benefits under the Plan are paid within 24 months of the termination date.

14.1.4 The Employer does not adopt a new arrangement that would be aggregated with the Plan under Section 1.409A-1(c) of the Treasury Regulations providing for the deferral of compensation at any time within 3 years following the date of termination of the Plan.

14.1.5 The termination does not occur proximate to a downturn in the financial health of the Employer.

Distribution of benefits shall occur in the same tax year for all Participants.

14.2    Termination and liquidation of the Plan Upon Change in Control Event. If the Employer terminates the Plan within thirty days preceding or twelve months following a Change in Control Event, the vested Deferred Compensation Account of each Participant shall become payable to the Participant in a lump sum within twelve months following the date of termination, subject to the requirements of Section 409A of the Code. Distribution of benefits shall occur in the same tax year for all Participants.
14.3    Termination and liquidation of the Plan upon Corporate Dissolution.  The Plan may be terminated within 12 months of a corporate dissolution taxed under Section 331, or with the approval of a bankruptcy court provided the amounts deferred under the 
27

plan are included in the Participant’s gross income as required under Section 409A of the Code.

Section 15.  Communication to Participants

The Employer shall make a copy of the Plan available for inspection by Participants and Beneficiaries during reasonable hours at the principal office of the Employer.

Section 16.  Claims Procedure

The following claims procedure shall apply with respect to the Plan:

16.1   Filing of a Claim for Benefits. If a Participant or Beneficiary (the "claimant") believes there is an entitlement to benefits by the claimant under the Plan which is not being paid or which is not being accrued for the claimant’s benefit, the claimant shall file a written claim therefore with the Committee.
16.2   Notification to Claimant of Decision. Within 90 days after receipt of a claim by the Committee (or within 180 days if special circumstances require an extension of time), the Committee shall notify the claimant of the decision with regard to the claim. In the event of such special circumstances requiring an extension of time, there shall be furnished to the claimant prior to expiration of the initial 90-day period written notice of the extension, which notice shall set forth the special circumstances and the date by which the decision shall be furnished. If such claim shall be wholly or partially denied, notice thereof shall be in writing and worded in a manner calculated to be understood by the claimant, and shall set forth: (i) the specific reason or reasons for the denial; (ii) specific reference to pertinent provisions of the Plan on which the denial is based; (iii) a description of any additional material or information necessary for the claimant to perfect 
28

the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the procedure for review of the denial and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under ERISA following an adverse benefit determination on review.

16.3    Procedure for Review. Within 60 days following receipt by the claimant of notice of denying a claim, in whole or in part, or, if such notice shall not be given, within 60 days following the latest date on which such notice could have been timely given, the claimant may appeal denial of the claim by filing a written application for review with the Committee. Following such request for review, the Committee shall fully and fairly review the decision denying the claim. Prior to the decision of the Committee, the claimant shall be given an opportunity to review pertinent documents and to submit issues and comments in writing.

16.4    Decision on Review. The decision on review of a claim denied in whole or in part by the Committee shall be made in the following manner:
16.4.1 Within 60 days following receipt by the Committee of the request for review (or within 120 days if special circumstances require an extension of time), the Committee shall notify the claimant in writing of its decision with regard to the claim. In the event of such special circumstances requiring an extension of time, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension.

16.4.2 With respect to a claim that is denied in whole or in part, the decision on review shall set forth specific reasons for the decision, shall be written in a manner calculated to be understood by the claimant, and shall set forth:

(i)  the specific reason or reasons for the adverse determination;

(ii) specific  reference  to  pertinent  Plan  provisions  on  which  the  adverse determination is based;

29

(iii)a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevantto the claimant’s claim for benefits; and

(iv)a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the information about such procedures, as well as a statement of the claimant’s right to bring an action under ERISA section 502(a).

16.4.3 The decision of the Committee shall be final and conclusive.

16.5     Action by Authorized Representative of Claimant.  All actions set forth in this Section 16 to be taken by the claimant may likewise be taken by a representative of the claimant duly authorized by the claimant to act on the claimant’s behalf on such matters. The Committee may require such evidence of the authority to act of any such representative as it may reasonably deem necessary or advisable.
16.6     Disability Claims.  Notwithstanding any provision of the Plan to the contrary, if a claim for benefits is based on Disability, the following claims procedures shall apply: The Committee shall maintain a procedure under which any Participant or Beneficiary can file a claim for benefits under this Plan based on Disability.
16.6.1 After  receiving  a  claim  for  benefits,  the  Committee  will  notify  the Participant or Beneficiary of its claim determination within 45 days of the receipt of the claim. This period may be extended by 30 days if an extension is necessary to process the claim due to matters beyond the control of the Committee. A written notice of the extension, the reason for the extension and when the Committee expects to decide the claim, will be furnished to the Participant or Beneficiary within the initial 45-day period. This period may be extended for an additional 30 days beyond the original extension. A written notice of the additional extension, the reason for the additional extension and when the Committee expects to decide the claim, will be furnished to the Participant or Beneficiary within the first 30-day extension period if an additional extension of time is needed. However, if a period of time is extended due to a Participant or Beneficiary’s failure to submit information necessary to decide a claim, the period for making the benefit determination by the Committee will be tolled from the date on which the notification of the extension is sent to the Participant or 
30

Beneficiary until the date on which the Participant or Beneficiary responds to the request for additional information.

16.6.2 If a claim for benefits is denied, in whole or in part, a Participant or Beneficiary or an authorized representative, will receive a written notice of the denial.  The  notice  will  follow  the  rules  of  29  C.F.R.  §  2560.503-1(o)  for culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the Participant or Beneficiary. The notice will include:

(i)  the specific reason(s) for the denial,

(ii)  references to the specific Plan provisions on which the benefit determination was based,

(iii) a description of any additional material or information necessary to perfect a claim and an explanation of why such information is necessary,

(iv) a description of the Committee’s appeals procedures and applicable time limits, including, to the extent applicable, a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,

(v) a  discussion  of  the  decision,  including  an  explanation  of  the  basis  for disagreeing with or not following: (i) the views presented by the claimant to the Committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained on behalf of the Committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was  relied  upon  in  making  the  benefit determination;  and  (iii)  a  disability determination regarding the claimant presented by the claimant to the Committee made by the Social Security Administration,

(vi) if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request,

(vii) either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist, and

(viii)   a statement that the Participant or Beneficiary is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits.
31

16.6.3 If   a   claim   for   benefits   is   denied,   a   Participant,   Beneficiary,   or representative, may appeal the denied claim in writing within 180 days of receipt of the written notice of denial. The Participant or Beneficiary may submit any written comments, documents, records and any other information relating to the claim. Upon request, the Participant or Beneficiary will also have access to, and the right to obtain copies of, all documents, records and information relevant to the claim free of charge.

16.6.4 A full review of the information in the claim file and any new information submitted to support the appeal will be conducted. The claim decision will be made by a first review appeals committee appointed by the Employer.This committee will consist of individuals who were not involved in the initial benefit determination, nor will such individuals be subordinate to any person involved in the initial benefit determination. This review will not afford any deference to the initial benefit determination.

16.6.5 If the initial adverse decision was based in whole or in part on a medical judgment,  the  first  review appeals  committee  will  consult  with  a  healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment, was not consulted in the initial adverse benefit determination and is not a subordinate of the healthcare professional who was consulted in the initial adverse benefit determination.

16.6.6 Before an adverse benefit determination on review is issued, the first review appeals committee will provide the Participant or Beneficiary, free of charge, with any new or additional evidence considered, relied upon, or generated by the committee or other person making the benefit determination (or at the direction of the committee or such other person) in connection with the claim. Such evidence will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.

16.6.7 Before  the  first  review  appeals  committee  issues  an  adverse  benefit determination on review based on a new or additional rationale, the committee will provide the Participant or Beneficiary, free of charge, with the rationale. The rationale will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.

16.6.8 The first  review  appeals committee will  make  a determination on an appealed claim within 45 days of the receipt of an appeal request. This periodmay be extended for an additional 45 days if the committee determines that special circumstances require an extension of time. A written notice of the extension, the reason for the extension and the date that the committee expects to render a decision will be furnished to the Participant or Beneficiary within 
32

the initial 45-day period. However, if the period of time is extended due to a Participant’s or Beneficiary’s failure to submit information necessary to decide the appeal, the period for making the benefit determination will be tolled from the date on which the notification of the extension is sent until the date on which the Participant or Beneficiary responds to the request for additional information.

16.6.9 If the claim on appeal is denied in whole or in part, a Participant or Beneficiary will receive a written notification of the denial. The notice will follow the rules of 29 C.F.R. § 2560.503-1(o) for culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the claimant. The notice will include:

(i)  the specific reason(s) for the adverse determination,

(ii) references to the specific Plan provisions on which the determination was based,

(iii)a statement regarding the right to receive upon request and free of charge reasonable access to, and copies of, all records, documents and other information relevant to the benefit claim,

(iv)a description of the first review appeals committee’s review procedures and applicable time limits, including a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,

(v) a  discussion  of  the  decision,  including  an  explanation  of  the  basis  for disagreeing with or not following: (i) the views presented by the claimant to the committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained by or on behalf of the committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (iii) a disability determination regarding the claimant presented by the claimant to the committee made by the Social Security Administration,

(vi)if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request, and

(vii)  either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist.
33

16.6.10 If the appeal of the benefit claim denial is denied, a Participant, Beneficiary, or representative, may make a second appeal of the denial in writing to the Committee within 180 days of the receipt of the written notice of denial. The Participant or Beneficiary may submit with the second appeal any written comments, documents, records and any other information relating to the claim. Upon request, the Participant or Beneficiary will also have access to, and the right to obtain copies of, all documents, records and information relevant to the claim free of charge.

16.6.11  Upon receipt of the second appeal, a full review of the information in the claim file and any new information submitted to support the appeal will be conducted. The claim decision will be made by a second review appeals committee appointed by the Employer. This committee will consist of individuals who were not involved in the initial benefit determination or the first review appeals committee, nor will such individuals be subordinate to any person involved in the initial benefit or first appeal determination.

16.6.12   If the first appeal was based in whole or in part on a medical judgment, the second appeals review committee will consult with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment, was not consulted in the initial adverse benefit determination nor in the first appeal and is not a subordinate of the healthcare professional(s) consulted in the initial adverse benefit determination and first appeal.

16.6.13  Before the second appeals review committee issues a denial of the second claim appeal, the committee will provide the Participant or Beneficiary, free of charge, with any new or additional evidence considered, relied upon, or generated by the committee or other person making the benefit determination (or at the direction of the committee or such other person) in connection with the claim. Such evidence will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.

16.6.14  Before the second review appeals committee issues a denial of the second claim appeal based on a new or additional rationale, the committee will provide the Participant or Beneficiary, free of charge, with the rationale. The rationale will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.

16.6.15  The second appeals review committee will make a determination on the second claim appeal within 45 days of the receipt of the appeal request. This period may be extended for an additional 45 days if the committee 
34

determines that special circumstances require an extension of time. A written notice of the extension, the reason for the extension and the date that the committee expects to render a decision will be furnished to the Participant or Beneficiary within the initial 45-day period. However, if the period of time is extended due to the Participant’s or Beneficiary’s failure to submit information necessary to decide the appeal, the period for making the benefit determination will be tolled from the date on which the notification of the extension is sent until the date on which the Participant or Beneficiary responds to the request for additional information.

16.6.16   If the claim on appeal is denied in whole or in part for a second time, the Participant or Beneficiary will receive a written notification of the denial. The notice will follow the rules of 29 C.F.R. § 2560.503-1(o) for culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the applicant. The notice will include the same information that was included in the first adverse determination letter and will identify the contractual limitations period that applies to the Participant’s or Beneficiary’s right to bring an action under section 502(a) of ERISA including the calendar date on which the contractual limitations period expires for the claim.

16.6.17  A claimant may not commence a judicial proceeding against any person, including the Committee, the Employer, the Board, the first or second appeals review committee(s), or any other person or committee, with respect to a claim for benefits without first exhausting the claims procedures set forth in the preceding paragraphs. No suit or legal action contesting in whole or in part any denial of benefits under the Plan shall be commenced later than the earlier of (i) the first anniversary of (A) the date of the notice of the Committee’s final decision on appeal, or (B) if the claimant fails to request any level of administrative review within the timeframe permitted under this Section 16.6, the deadline for requesting the next level of administrative review, and (ii) the last date on which such legal action could be commenced under the applicable statute of limitations under ERISA (including, for this purpose, any applicable state statute of limitations that applies under ERISA to such legal action).

16.6.18   A claimant has the right to request a written explanation of any violation of these claims procedures. The Committee will provide an explanation within 10 days of the request.

Section 17.  Miscellaneous Provisions

17.1 Set off. The Employer may at any time offset a Participant's Deferred Compensation Account by an amount up to $5,000 to collect the amount of any loan, cash advance, extension of other credit or other obligation of the Participant to the Employer 
35

that is then due and payable in accordance with the requirements of Section 409A of the Code.
17.2   Notices. Each Participant who is not in Service and each Beneficiary shall be responsible for furnishing the Committee or its designee with the current address, and direct deposit information if desired, for the mailing of notices and benefit payments. Any notice required or permitted to be given to such Participant or Beneficiary shall be deemed given if directed to such address and mailed by regular United States mail, first class, postage prepaid. If any benefit distribution is rejected or returned to the Employer, benefit payments will be suspended until the Participant or Beneficiary furnishes the proper information. This provision shall not be construed as requiring the mailing of any notice or notification otherwise permitted to be given by posting or by other publication.
17.3   Lost Distributees. A benefit shall be deemed forfeited if the Committee is unable to locate the Participant or Beneficiary to whom payment is due by the fifth anniversary of the date payment is to be made or commence; provided, that the deemed investment rate of return pursuant to Section 8.2 shall cease to be applied to the Participant's account following the first anniversary of such date; provided further, however, that such benefit shall be reinstated if a valid claim is made by or on behalf of the Participant or Beneficiary for all or part of the forfeited benefit. The Employer and Committee will be responsible for determining whether unclaimed property laws are applicable to forfeited benefits.

17.4   Reliance on Data. The Employer and the Committee shall have the right to rely on any data provided by the Participant or by any Beneficiary. Representations of such data shall be binding upon any party seeking to claim a benefit through a Participant, 
36

and the Employer and the Committee shall have no obligation to inquire into the accuracy of any representation made at any time by a Participant or Beneficiary.
17.5   Headings. The headings  and subheadings of the Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.
17.6   Continuation of Employment. The establishment of the Plan shall not be construed as conferring any legal or other rights upon any Employee or any persons for continuation of employment, nor shall it interfere with the right of the Employer to discharge any Employee without regard to the effect thereof under the Plan.
17.7   Merger or Consolidation; Assumption of Plan. No Employer shall consolidate or merge into or with another corporation or entity, or transfer all or substantially all of its assets to another corporation, partnership, trust or other entity (a "Successor Entity") unless such Successor Entity shall assume the rights, obligations and liabilities of the Employer under the Plan and upon such assumption, the SuccessorEntity shall become obligated to perform the terms and conditions of the Plan. Nothing herein shall prohibit the assumption of the obligations and liabilities of the Employer under the Plan by any Successor Entity.
17.8   Construction. The Employer shall designate in the Adoption Agreement the state or commonwealth according to whose laws the provisions of the Plan shall be construed and enforced, except to the extent that such laws are superseded by ERISA and the applicable requirements of the Code.
17.9   Taxes. The Employer or other payor may withhold a benefit payment under the Plan or a Participant's wages, or the Employer may reduce a Participant's Deferred Compensation Account balance, in order to meet any federal, state, or local or 
37

employment tax withholding obligations with respect to Plan benefits, as permitted under Section 409A of the Code. The Employer or other payor shall report Plan payments and other Plan-related information to the appropriate governmental agencies as required under applicable laws.
17.10    Administration Fees.  Any Plan or Plan related fees related to the administration of the Plan shall be paid by the Employer.

17.11    Savings Clause.  To the extent that any of the provisions of the Plan are found by a court of competent jurisdiction to be illegal, invalid, or unenforceable for any reason, such provision shall be deleted, and the balance of the Plan shall not be affected.

38

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants.  Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement. Nothing set forth in this agreement or related documents may be taken or relied upon as legal, tax, investment, or accounting advice, nor as any investment recommendation. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Principal Life Insurance Company, Raleigh, NC 27612
A member of the Principal Financial Group®

THE NONQUALIFIED DEFERRED COMPENSATION PLAN ADOPTION AGREEMENT

THIS AGREEMENT is the adoption of the Nonqualified Deferred Compensation Plan ("Plan") by
HollyFrontier Corporation (the "Company") with an EIN of 75-1056913.

W I T N E S S E T H:

WHEREAS, the  Company  desires  to  adopt  the  Plan  as  an  unfunded,  nonqualified  deferred compensation plan for members of a select group of management or highly compensated employees and under Sections 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974 (“ERISA”) or independent contractors; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to Section 409A; and

WHEREAS,  the  Company  has  been  advised  by  Principal  Life  Insurance  Company  (“the Recordkeeper”) to obtain legal and tax advice from its professional advisors before adopting the Plan,

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Company hereby represents and warrants that the Plan has been adopted by the Company upon proper authorization and the Company hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Company hereby agrees to be bound by the terms of the Plan.

ARTICLE II

The Company hereby makes the following designations or elections for the purpose of the Plan:

2.13       Effective Date:   This is a newly established Plan, and the Effective Date of the Plan is
October 1, 2021.

2.26       Plan: The name of the Plan is

HollyFrontier Corporation Director’s Stock Compensation Deferral Plan.

4.1         Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have their Compensation, as elected below, deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

Base Salary:

☐    (a)         Base Salary:

maximum deferral: 80 %

☐    (b)         Base salary deferral in an amount equal to a 401(k) refund (“401(k) Refund
Offset”) as defined in Section 2.0 of the Plan:

mandatory deferral: 100 %

Bonus:

☐    (c)         Service Bonus:

☐   Service Bonus: earned from 1/1-12/31, paid on or around first quarter of the following Plan Year.

maximum deferral: 80 %

☐    (d)         Performance-Based Compensation:

☐    Performance Based Bonus: earned from 1/1-12/31, paid on or around the first quarter of the following Plan Year and whose election must be no later than six months prior to the end of the earnings period.

maximum deferral: 80 %

☐    (e)         Participant deferrals not allowed.

☒    (f)          Equity Grants:

mandatory deferral:     0% or 100%

4.1.2      Participant Deferral Credits and Employer Credits – Election Period (Evergreen Elections):

An election made by the Participant shall continue in effect for subsequent years until modified by the Participant as permitted in Section 4.1 and Section 4.2 of the Plan.

4.2         Employer Credits (Section 4.2 of the Plan) and Vesting (Section 6 of the Plan): Employer
Credits will be made in the following manner:

2

									
	☒	

(a)
	

Employer Credits not allowed.

	☐	

(b)
	

Employer Discretionary Credits: The Employer may make discretionary

			credits to the Deferred Compensation Account of each Active Participant in an amount determined each Plan Year by the Employer.

												
	☐	

(i)
	

Immediate 100% vesting.
	
	☐	

(ii)
	

Number of Years of Service
	

Vested
Percentage

												
	Less than
	1	____	%
		1	____	%
		2	____	%
		3	____	%
		4	____	%
		5	____	%
		6	____	%
		7	____	%
		8	____	%
		9	____	%
		10 or more
	____	%

For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

☐    (1)         First day the Participant begins to provide services to the Employer and all Participating
Employers

☐    (2)         Each Crediting Date. Under this option (2), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to the Deferred Compensation Account.

Further, an Active Participant shall be fully vested in ALL Employer Credits, as noted above, upon the first to occur of the following events:

☐    (a)         Full Vesting Age (as defined in Section 2.20 of the Plan) shall mean age     .

☐    (b)         Death.

☐    (c)         Disability.

☐    (d)         Change in Control Event.

If Change in Control or Disability is not a Vesting event, amounts not vested at the time payments due under this Section cease will be:
☐    Forfeited
☐    Distributed upon a Qualifying Distribution Event if vested at that time

4.3         Deferred Compensation Account: A Participant may establish only one account to be distributed upon Separation from Service. One set of payment options for that account is allowed as permitted in Section 7.1 of the Plan. Additional In-Service accounts may be established as permitted in Section 5.4 of the Plan.
3

5.2         Disability of a Participant: A Participant's becoming Disabled shall be a Qualifying Distribution Event and the Deferred Compensation Account shall be paid by the Employer as provided in Section 7.1 of the Plan.

5.3           Death of a Participant: A Participant's death shall be a Qualifying Distribution Event and the
Deferred Compensation Account shall be paid by the Employer as provided in Section 7.1 of the Plan.

5.4         In-Service Distributions: In-Service Accounts are permitted under the Plan:

☐    (a)        In-Service Accounts are allowed with respect to:
☐    Participant Deferral Credits only.
☐    Employer Credits only.
☐    Participant Deferral and Employer Credits.

In-service distributions may be made in the following manner:
☐    Single lump sum payment.
☐    Annual installments over a term certain not to exceed  5 years.

If applicable, amounts not vested at the time in-service payments are distributed will be distributed at Separation from Service if vested at that time.

☒    (b)        No In-Service Distributions permitted.

5.5         Change in Control Event:

									
	☒	

(a)
	

A Change in Control shall not be a Qualifying Distribution Event.

	☐	

(b)
	

Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control Event.

5.6         Upon an Unforeseeable Emergency (as defined in Section 2.36 of the Plan) Participants may apply to cancel deferral elections and\or have vested accounts distributed upon an Unforeseeable Emergency event.
7.1         Payment Options: If permitted by the plan design, any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or the Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant, or mandated by the plan provisions in the Participation Agreement:

(a)         Separation from Service

									
	☒	

(i)
	

A lump sum.

	☐	

(ii)
	

Annual installments over a term certain as elected by the Participant not to exceed     years.

(b)         Death shall be paid in a lump sum

4

(c)         Disability shall be paid in a lump sum

(d)         Unforeseeable Emergency shall be paid in a lump sum

7.4         De Minimis Amounts.  The Employer may distribute a Participant's vested balance in all Deferred Compensation Account(s) of the Participant at any time, whether or not a Qualifying Distribution Event has occurred if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan and any other Employer plan subject to aggregation under Section 409A of the Code.

Notwithstanding any payment election made by the Participant, the vested balance in all Deferred Compensation Account(s) of the Participant shall be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability, or Change in Control Event the vested balance does not exceed:

☐ $150,000.

☒ Not Applicable

14.         Amendment  and  Termination  of  Plan:  Notwithstanding  any  provision  in  this  Adoption Agreement or the Plan to the contrary, Section _______ of the Plan shall be amended to read as provided in attached Exhibit ___________

☒    There are no amendments to the Plan.

17.8       Construction: The provisions of the Plan shall be construed and enforced according to the laws of the State/Commonwealth of  Texas, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below.

HollyFrontier Corporation
Name of Company

By: /s/ Dale Kunneman      
Authorized Person
Date: July 14, 2021     
5

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