Document:

Amendment No. 2 to Education Management Corporation 2006 Stock Option Plan

 Exhibit 10.01 
 AMENDMENT NO. 2 TO 
 EDUCATION MANAGEMENT CORPORATION 
 2006 STOCK OPTION PLAN 
 This AMENDMENT NO. 1 TO EDUCATION MANAGEMENT CORPORATION 2006
STOCK OPTION PLAN (the “Amendment”), is made effective as of March 30, 2007. 
 R E C I T A L S 
 WHEREAS, Education Management Corporation, a Pennsylvania corporation (the “Company”) adopted the Education Management Corporation 2006
Stock Option Plan (the “Plan”), effective as of June 1, 2006. 
 WHEREAS, Section 13 of the Plan provides, in
part, that the Board of Directors of the Company (the “Board”) may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made without the consent of a Participant (as defined in the Plan), if
such action would diminish any of the rights of such Participant under any Option (as defined in the Plan) theretofore granted to such Participant under the Plan. 
 WHEREAS, the Board has determined it is in the best interest of the Company and its shareholders to amend the Plan in order to increase the number of Shares (as such term is defined in the Plan) which may be issued
under the Plan. 
 NOW THEREFORE, the Plan is hereby amended as follows: 
 1. Amendment of Section 3 of the Plan. The first sentence of Section 3 of the Plan is hereby deleted in its entirety and replaced with
the following: 
 “The total number of Shares which may be issued under the Plan is 1,645,171, subject to adjustment pursuant to
Section 8 hereof.” 
 2. References to Plan. Following the execution of this Amendment, all references in the Plan to the
“Plan” shall be deemed to be references to the Plan as amended by this Amendment. 
 3. No Further Amendments. Except as
expressly amended and modified herein, all terms and provisions of the Plan shall remain in full force and effect. 
 4. Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. 

 IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the day and year first above
written. 
  

			
	EDUCATION MANAGEMENT CORPORATION
		
	By:	 	 /s/ Edward H. West

	Name:	 	Edward H. West
	Title:	 	 Executive Vice President and
 Chief Financial
OfficerAmendment No. 1 to the EDMC Amended and Restated Shareholders' Agreement

 Exhibit 10.02 
 AMENDMENT NO. 1 TO 
 AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT 
 This AMENDMENT NO. 1 TO AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT (this “Amendment”) is made as of March 30, 2007 by
and among Education Management Corporation, a Pennsylvania corporation (as successor by merger to EM Acquisition Corporation) (the “Company”), GS Capital Partners V Fund, L.P., a Delaware limited partnership
(“GSCP”), GS Capital Partners V Offshore Fund, L.P., a Cayman Islands exempted limited partnership (“GSCP Offshore”), GS Capital Partners V GmbH & Co. KG, a limited partnership formed under the laws of the
Federal Republic of Germany (“GSCP Germany”), GS Capital Partners V Institutional, L.P., a Delaware limited partnership (“GSCP Institutional”, collectively with GSCP, GSCP Offshore and GSCP Germany, the
“GSCP Parties”), Providence Equity Partners V L.P., a Delaware limited partnership (“Providence”), Providence Equity Partners V-A L.P., a Delaware limited partnership (“Providence-A”), Providence
Equity Partners IV L.P., a Delaware limited partnership (“Providence-IV”) and Providence Equity Operating Partners IV L.P., a Delaware limited partnership (“Providence Operating-IV”, collectively with Providence,
Providence-A and Providence-IV, the “Providence Parties”) and amends that certain amended and restated shareholders’ agreement (the “Shareholders’ Agreement”), dated as of October 30, 2006, by and
among the Company, the GSCP Parties, the Providence Parties and the other Persons that are signatories thereto. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the
Shareholders’ Agreement. 
 W I T N E S S E T H : 
 WHEREAS, Section 21 of the Shareholders’ Agreement provides that the Shareholders’ Agreement may be amended if approved in writing by
(a) the Company, (b) the GSCP Parties (or a GSCP Governance Rights Assignee, as applicable) for so long as the GSCP Parties (or a GSCP Governance Rights Assignee, as applicable) and their Affiliates hold a number of shares of Common Stock
that is no less than 25% of the number of shares of Common Stock held by the GSCP Parties immediately following the Merger, (c) the Providence Parties (or a Providence Governance Rights Assignee, as applicable) for so long as the Providence
Parties (or a Providence Governance Rights Assignee, as applicable) and their Affiliates hold a number of shares of Common Stock that is no less than 25% of the number of shares of Common Stock held by the Providence Parties immediately following
the Merger, and (d) the Shareholders holding a majority of the shares of Common Stock held by all Shareholders; 
 WHEREAS,
Section 21 of the Shareholders’ Agreement further provides that no amendment to the Shareholders’ Agreement shall be made in a manner that materially and adversely affects a Shareholder’s rights thereunder without the approval of
such Shareholder, unless such amendment adversely affects all Shareholders in the same manner proportionate to their respective Stock holdings; 
 WHEREAS, on March 28, 2007, the Company issued to Todd S. Nelson, and Todd S. Nelson purchased from the Company, shares of Common Stock pursuant to that certain subscription agreement, dated as of March 28, 2007, between
the Company and Todd S. Nelson; and 

 WHEREAS, the parties to this Amendment desire to amend a certain defined term in the Shareholders’
Agreement. 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and obligations hereinafter set forth, the parties
hereto hereby agree as follows: 
 Section 1. Amendment. The Shareholders’ Agreement is hereby amended as follows:

 1.1. Section 1 of the Shareholders’ Agreement is hereby amended so that the defined term “Management Holder” is amended
and restated in its entirety as follows: 
 “Management Holder” means each of John R. McKernan, Jr.,
Edward H. West, Leo F. Mullin and Todd S. Nelson and any other subsequent holder of Stock who agrees to be bound by the terms of this Agreement as a Management Holder. 
 Section 2. References to Agreement. Following the execution of this Amendment all references in the Shareholders’ Agreement to the
“Agreement” shall be deemed to be references to the Shareholders’ Agreement as amended by this Amendment. 
 Section 3.
No Further Amendments. Except as expressly amended and modified herein, all terms and provisions of the Shareholders’ Agreement shall remain in full force and effect. No change, modification or waiver of any provision of this Amendment
shall be valid unless the same is in writing and signed by the parties hereto. 
 Section 4. Governing Law. This Amendment shall
be governed by and construed in accordance with the laws of the State of New York. 
 Section 5. Counterparts. This Amendment may
be executed in separate counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
 [Remainder of Page Intentionally Left Blank] 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to Amended and Restated
Shareholders’ Agreement as of the day and year first above written. 
  

			
	EDUCATION MANAGMENT CORPORATION
		
	By:	 	 /s/ Edward H. West

	Name:	 	Edward H. West
	Title:	 	Executive Vice President and Chief Financial Officer

 [Signature Page to Amendment No. 1 to Amended and Restated Shareholders’ Agreement]

			
	GS CAPITAL PARTNERS V FUND, L.P.
		
	By:	 	 GSCP V Advisors, L.L.C.,
 its general
partner

	 
		
	By:	 	 /s/ Adrian M. Jones

	Name:	 	Adrian M. Jones
	Title:	 	
	
	GS CAPITAL PARTNERS V OFFSHORE FUND, L.P.
		
	By:	 	 GSCP V Offshore Advisors, L.L.C.,
 its
general partner

	 
		
	By:	 	 /s/ Adrian M. Jones

	Name:	 	Adrian M. Jones
	Title:	 	
	
	GS CAPITAL PARTNERS V GmbH & Co. KG
		
	By:	 	 GS Advisors V, L.L.C.,
 its managing limited
partner

		
	By:	 	 /s/ Adrian M. Jones

	Name:	 	Adrian M. Jones
	Title:	 	
	
	GS CAPITAL PARTNERS V INSTITUTIONAL, L.P.
		
	By:	 	 GS Advisors V, L.L.C.,
 its general
partner

		
	By:	 	 /s/ Adrian M. Jones

	Name:	 	Adrian M. Jones
	Title:	 	

 [Signature Page to Amendment No. 1 to Amended and Restated Shareholders’ Agreement]

			
	PROVIDENCE EQUITY PARTNERS V L.P.
		
	By:	 	 Providence Equity Partners GP V L.P.,
 its
general partner

	 
		
	By:	 	 Providence Equity Partners V LLC,
 its general
partner

		
	By:	 	 /s/ Paul J. Salem

	Name:	 	Paul J. Salem
	Title:	 	
	
	PROVIDENCE EQUITY PARTNERS V-A L.P.
		
	By:	 	 Providence Equity Partners GP V L.P.,
 its general
partner

		
	By:	 	 Providence Equity Partners V LLC,
 its general
partner

		
	By:	 	 /s/ Paul J. Salem

	Name:	 	Paul J. Salem
	Title:	 	
	
	PROVIDENCE EQUITY PARTNERS IV L.P.
		
	By:	 	 Providence Equity GP IV LP,
 its general
partner

		
	By:	 	 Providence Equity Partners IV L.L.C.,
 its general
partner

		
	By:	 	 /s/ Paul J. Salem

	Name:	 	Paul J. Salem
	Title:	 	
	
	PROVIDENCE EQUITY OPERATING PARTNERS IV L.P.
		
	By:	 	 Providence Equity GP IV LP,
 its general
partner

		
	By:	 	 Providence Equity Partners IV L.L.C.,
 its general
partner

		
	By:	 	 /s/ Paul J. Salem

	Name:	 	Paul J. Salem
	Title:	 	

 [Signature Page to Amendment No. 1 to Amended and Restated Shareholders’ Agreement]Letter Agreement between Education Management and John T. South III

 Exhibit 10.03 
 [EDMC LETTERHEAD] 
 VIA PERSONAL AND OVERNIGHT DELIVERY 
 March 30, 2007 
 John T. South, III 
 12 Water Witch Crossing 
 Savannah, GA 31411 
 Re: Employment Agreement 
 Dear John: 
 Reference is made to that certain Employment Agreement, dated as of December 7, 2006 (the “Agreement”), between you and Education Management LLC (the
“Company”). As you know, Education Management Corporation (the “Parent”), South University, Inc. (the “University”), Higher Education Services, Inc. and you entered into a Stock Purchase Agreement, dated as of
April 29, 2003 and as amended (the “Purchase Agreement”), pursuant to which the Parent purchased all of the issued and outstanding shares of capital stock of South University, Inc. and Higher Education Services, Inc. The Purchase
Agreement provides for a Health Profession Program Escrow Account, which is to be disbursed to you upon the achievement of certain milestones relating to Health Profession Programs at South University’s locations. This letter will confirm that,
consistent with your prior employment agreement with the Parent, the definition of “Good Reason” in Section 3.2(e)(1) of the Agreement will include: a material change in the control or structure of the Company, the University or their
subsidiaries which would materially and adversely affect the opportunity of the Executive to develop and implement the “Health Profession Programs” contemplated by the Purchase Agreement. 
 Capitalized terms used herein have the meanings given them in the Agreement unless otherwise defined herein. The terms and conditions of the Agreement shall remain in
full force and effect except as expressly modified pursuant to this letter agreement. The terms set forth in this letter agreement shall be in addition to the terms of the Agreement. The Company acknowledges and agrees that the terms set forth in
this letter agreement are a material inducement for you to enter into the Agreement and constitute material obligations of the Company. 
 Sincerely yours,

  

	
	 /s/ John R. McKernan, Jr.

	John R. McKernan, Jr.
	Executive Chairman

 Acknowledged and agreed this 30th day of March, 2007 
  

	
	 /s/ John T. South, III

	John T. South, III

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