Document:

exv10w5

EXHIBIT 10.5

AMENDMENT TO EMPLOYMENT AGREEMENT

ROB WRUBEL

October 31, 2008

Dear Rob

     As you know, on August 6, 2007, you entered into an employment agreement in connection with
the acquisition of Aptimus, Inc., by Apollo Group Inc. (hereinafter “Employment Agreement”). We
now desire to amend the Employment Agreement in consideration of other benefits provided to you, to
provide for the payment of severance to you, and in order to bring the provisions of the Employment
Agreement into compliance with the applicable requirements of Section 409A of the Internal Revenue
Code.

     We agree as follows:

	 	1.	 	Section 8 of the Employment agreement is hereby amended to read as follows:

“If your employment is terminated by Apollo (or Apollo Marketing) without “cause”
(as defined below) on or before October 29, 2009, you will receive your salary
and accrued vacation earned up to the effective date of your termination. In
addition, if you execute and deliver to Apollo, within twenty-one days (or
forty-five days if such longer period is required by applicable law) after such
termination of employment, a signed settlement agreement and general release in a
form and manner provided by Apollo (hereafter the “Release), and provided you
agree to act as an advisor to Apollo as provided in Section 2 below, and further
provided that the Release becomes effective and enforceable in accordance with its
terms following any applicable revocation period, then in addition to the amounts
described above, Apollo will provide you with the additional benefits set forth in
this paragraph. First, Apollo will continue to pay you your base salary as a
severance payment for a period of twelve months. Such payment (the “Involuntary
Termination Payment”) shall be made in a series of successive equal periodic
payments in accordance with Apollo’s regularly-scheduled payroll dates for
salaried employees, with the first such payment to be made on the first such
regularly-scheduled payroll date, within the sixty (60)-day period following the
date of your “separation from service"(as defined below) due to such termination
of employment, on which the required Release is so effective and enforceable, but
in no event later than the last day of such sixty (60)-day period on which the
required Release is so effective, unless a further deferral is required pursuant
to Section 15 of your Employment Agreement (as modified by this Agreement). Each
such Involuntary Termination Payment shall be treated as part of a series of
individual and separate payments for purposes of Section 409A of the Internal
Revenue Code, the “Code”). Second, Apollo shall also reimburse you for any COBRA
premiums you pay during the twelve (12) month period following your termination of
employment for continued medical care coverage under the Company’s group health
care plan. With respect to each such COBRA premium payment you make for such
period, you shall provide the Company with appropriate documentation evidencing
that payment within sixty (60) days after the required payment date, and the
Company shall reimburse you for that payment within thirty (30) days thereafter,
but in no event will any reimbursement of COBRA premiums for such period be made
later than the last day of the calendar year following the calendar year in which
those premiums are paid, and your right to such reimbursement cannot be exchanged
or liquidated for any other benefit. Third, (A) the Two Year Option (to the
extent not fully vested) shall become fully vested; (B) any Aptimus Awards (to the
extent not fully vested) shall become fully vested, and (C) you shall immediately
be credited with additional employment with Apollo/Apollo Marketing for purposes
of the vesting schedule in effect for the Four Year Option so that
you shall be immediately vested in such option to the same extent as if you had completed an
additional twelve (12) months of employment with Apollo/Apollo Marketing prior to
your termination date.

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If your employment is terminated by Apollo (or Apollo Marketing) with “cause” (as
defined below), or by you for any reason, you will receive your salary and accrued
vacation earned up to the effective date of your termination. You will not be
eligible for any severance benefits.

If you employment is terminated for any reason after October 29, 2009, you will
receive your salary and accrued vacation earned up to the effective date of your
termination. You will no longer be eligible for severance benefits hereunder.
Instead, you will be eligible to participate in any severance benefit plan or
program that Apollo makes generally available to its management employees, if any,
subject to the terms of such severance plans and programs.

For purposes of this Agreement, “Cause” shall be defined as:

          (i) Repeated failure to meet the reasonable and lawful directives of the
President of Apollo Group (or an officer in a higher position than the President
of Apollo Group to whom you have been directed to report);

          (ii) Conviction of a felony (or a plea of guilty or nolo contendere by you to
a felony) or any other crime against or involving Apollo or Apollo Marketing;

          (iii) Acts of fraud, dishonesty or misappropriation committed by you with
respect to or that is harmful to Apollo or Apollo Marketing;

          (iv) Willful, reckless or negligent misconduct by you with respect to or that
is harmful to Apollo, Apollo Marketing or any of its officers, directors,
employees, clients, partners, insurers, subsidiaries, parents, or affiliates;

          (v) A material breach of this Agreement or the Proprietary Information and
Inventions Agreement signed by you.

The foregoing is an exclusive list of the acts or omissions that shall be
considered “Cause” for the termination of your employment by Apollo/Apollo
Marketing. With respect to the acts or omissions set forth in clauses (i), (iii),
(iv) and (v) above, (x) you shall be provided with thirty (30) days advance
written notice detailing the basis for the termination of employment for Cause,
(y) during the thirty (30) day period after you have received such notice, you
shall be on leave status, you shall not report to work, unless instructed
otherwise by Apollo, and shall have the opportunity to present your case to a
committee of independent directors of Apollo’s Board of Directors (the “Board”)
before any termination for Cause is finalized and (z) you shall continue to
receive the compensation and benefits provided by this Agreement during the 30-day
period. In addition, no act or omission shall give rise to a termination for
Cause if performed in good faith and with an objectionably reasonable belief that
the action or inaction was in the best interest of Apollo or Apollo Marketing.

For purposes of this Agreement, you will be deemed to incur a separation from
service on the date on which the level of your bona fide services as an employee
(or non-employee consultant) permanently decreases to a level that is not more
than twenty percent (20%) of the average level of services you rendered as an
employee during the immediately preceding thirty-six (36) months (or any shorter
period of such service with Apollo and Aptimus). Any such determination, however, shall be made in accordance with the
applicable standards of the Treasury Regulations issued under Code Section 409A.”

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	2.	 	During the period in which you are receiving severance benefits from Apollo as outlined above
(the “Severance Period”), you agree that you will remain available to provide advisory
services to Apollo’s Chief Executive Officer and Board of Directors, as such advisory services
may be requested from time to time, up to a maximum of 10 hours per month. During such
Severance Period, you will not vest in any additional options, restricted stock units or other
equity awards that may have been made or granted to you by Apollo during your period of
employment with Apollo or Apollo Marketing, and the limited post-termination exercise period
for exercising any such options (or your assumed Aptimus options) shall continue to be
measured from the date of your termination of employment and will not be extended for any
additional period by reason of your advisor status during the Severance Period. You agree
that any Apollo confidential and/or proprietary information that you learn as a result of
these advisory services shall remain subject to the restrictions on
use and/or disclosure that
are set forth in your Apollo Proprietary Information and Inventions Agreement. During the
Severance Period, you agree that you will not engage in any activities that create or create
the appearance of, a conflict of interest with your status as an advisor to the Company.
Specifically, during the Severance Period, you agrees that you will not on you own or as an
employee, agent, promoter, consultant, advisor, independent contractor, general partner,
officer, director, investor, lender or guarantor or in any other capacity, directly or
indirectly:

          (i) conduct, engage in, be connected with, have any interest in, or assist
any person or entity engaged in, any business, whether in the United States, any
possession of the United States or any foreign country or territory, that competes
with any of the businesses or programs conducted by the Company in the education
industry during the period of his employment with the Company (hereafter
collectively referred to as the “Businesses”); or

          (ii) permit your name to be used in connection with a business which is
competitive or substantially similar to the Businesses.

Notwithstanding the foregoing you may own, directly or indirectly, solely as an
investment, up to one percent (1%) of any class of publicly traded securities of
any business that is competitive or substantially similar to the Businesses.

In the event that you violate the provisions of this Section, then the Company’s
obligation to provide you with severance as set forth above shall cease forthwith,
and you will be obligated to return any severance payments received by you during
any period of time that you were in violation of this provision.

	3.	 	You agree that during your employment and for twelve (12) months thereafter, you will not:

     (a) directly or indirectly encourage or solicit any employee, faculty member,
consultant or independent contractor to leave the employment or service of the Company (or
any affiliated company) for any reason or interfere in any other manner with any employment
or service relationships at the time existing between the company (or any affiliated
company) and its employees, faculty members, consultants and independent contractors.

     (b) directly or indirectly solicit any vendor, supplier, licensor, licensee or other
business affiliate of the Company (or any affiliated company) or directly or indirectly
induce any such person to terminate its existing business relationship with the Company (or
affiliated company) or interfere in any other manner with any existing business
relationship between the Company (or any affiliated company) and any such vendor, supplier,
licensor, licensee or other business affiliate.

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	4.	 	You agree that it would be difficult to measure any damages which might result from any
breach by you of the promises set forth above, and that in any event money damages would be an
inadequate remedy for any such breach. Accordingly, you agree that if you breach, or propose
to breach, any portion of this Agreement, Apollo shall be entitled, in addition to all other
remedies that it may have, to an injunction or other appropriate equitable relief to restrain
any such breach without showing or proving any actual damage to Apollo.
	 
	5.	 	Section 15 of the Employment Agreement is hereby amended to read as follows:
	 
	 	 	“Notwithstanding any provision to the contrary in this Agreement, no payments or
benefits to which you become entitled under Section 8 of this Agreement in
connection with your termination of employment (other than the reimbursement of
your COBRA premiums during the applicable period of your COBRA coverage) shall be
made or paid to you prior to the earlier of
(i) the first day of the seventh (7th)
month following the date of your separation from service due to such termination
of employment or (iii) the date of your death, if you are deemed, pursuant to the
procedures established by the Compensation Committee of the Apollo Board of
Directors in accordance with the applicable standards of Code Section 409A and the
Treasury Regulations thereunder and applied on a consistent basis for all for all
non-qualified deferred compensation plans of Apollo and its subsidiaries subject
to Code Section 409A, to be a “specified employee” at the time of such separation
from service and such delayed commencement is otherwise required in order to avoid
a prohibited distribution under Code Section 409A(a)(2). Upon the expiration of
the applicable deferral period, all payments deferred pursuant to this Section 15
shall be paid to you in a lump sum, and any remaining payments due under this
Agreement shall be paid in accordance with the normal payment dates specified for
them herein. In no event shall the foregoing holdback provisions apply to any
Involuntary Termination Payment that is otherwise payable to you within the
short-term deferral period allowable under Code Section 409A (the period
commencing upon your separation from service ending on March 15 of the following
calendar year) or that can be paid to you, during the twelve (12)-month severance
period, in compliance with the applicable requirements of Section
1.409A-1(b)(9)(iii) of the Treasury Regulations issued under Code Section 409A.
	 
	6.	 	The Parties agree that except as amended by this Agreement, all other provisions of the
Employment Agreement between you and Apollo shall remain in full force and effect.
	 
	7.	 	You are and shall be solely responsible for any federal, state and local taxes that may be
owed by you by virtue of the receipt of any portion of the Severance Benefits set forth in
Section 8 of the Employment Agreement (as amended above), including (without limitation) any
taxes that you may incur under Section 409A of the Internal Revenue Code (or any State tax law
equivalent). You agree to indemnify and hold Apollo harmless from any and all liability,
including, without limitation, all penalties, interest and other costs that may be imposed by
the Internal Revenue Service or other federal or state governmental agencies regarding any tax
obligations that may arise from the monetary consideration made to you under this Agreement.
You have been advised to consult with an attorney and a tax advisor prior to executing this
Agreement.
	 
	8.	 	If any provision of this Agreement is held by a court of competent jurisdiction to be
invalid, void, or unenforceable for whatever reason, the remaining provisions of this
Agreement shall nevertheless continue in full force and effect without being impaired in any
manner whatsoever.
	 
	9.	 	The construction, interpretation and performance of this Agreement shall be governed by the
laws of the State of Arizona, and any dispute regarding the terms of this Agreement shall be
brought in the courts of the State of Arizona.

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	10.	 	Except as modified by this Agreement, all the terms and provisions of your Employment
Agreement shall continue in full force and effect in accordance with
the terms of such Employment Agreement. This Agreement and the Employment Agreement constitute the sole and
entire agreement between the parties hereto, and supersede any and all understandings and
agreements made prior hereto, if any. There are no collateral understandings,
representations, or agreements other than those contained herein. No provision of this
Agreement shall be amended, waived or modified except by an instrument in writing, signed
by the parties hereto.
	 
	11.	 	You have read and understand the contents of this Agreement and affirm that no
representations other than those contained herein have been made to induce or influence your
execution of the Agreement, and that you execute this Agreement knowingly and voluntarily and
upon independent advice of your own choosing.

	 	 	 	 	 	 	 	 	 
	/s/ Rob Wrubel	 	 	 	OCT. 31, 2008	 	 
	 	 	 	 	 	 	 
	Rob Wrubel	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 
	APPROVED AND ACCEPTED:

APOLLO GROUP, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph L. D’Amico
	 	 	 	OCTOBER 31, 2008	 	 
	 

	 	 
	 	 	 	 	 	 

5exv10w6

EXHIBIT 10.6

AMENDMENT

TO

EMPLOYMENT AGREEMENT

     The EMPLOYMENT AGREEMENT entered into by and between Apollo Group, Inc. (the “Company”) and
Gregory Cappelli (the “Executive”), effective March 31 2007 (the “Agreement”), is hereby amended as
follows, effective as of January 1, 2009 except as otherwise specified below. The purpose of this
Amendment is to bring the Agreement into documentary compliance with the applicable requirements of
the Treasury Regulations issued under Section 409A of the Internal Revenue Code of 1986, as
amended.

     1. There is hereby added to the end of Section 3(b) of the Agreement the following sentence:

     The Annual Bonus for each fiscal year shall be paid in accordance with the
Company’s customary practices, but in no event later than the fifteenth day of the
third calendar month following the end of such fiscal year.

     2. Section 4(d) of the Agreement is hereby amended in its entirety to read as follows,
effective September 4, 2007:

     (d) Vesting. The Initial Option Grant and any Equalization Grant will vest and
become exercisable in a series of four successive equal annual installments upon the
Executive’s completion of each year of employment with the Company over the
four-year period measured from the Commencement Date (regardless of the actual grant
date), and those grants will be subject to the vesting acceleration provisions set
forth in Sections 8 and 11 of this Agreement. The shares of the Company’s Class A
common stock underlying the Initial RSU Award will vest, and those vested shares
shall become issuable, in accordance with the terms of the September 4, 2007
Restricted Stock Unit Award Agreement between the Executive and the Company
evidencing that award, as such agreement may be amended or restated from time to
time (the “Initial RSU Award Agreement”), and such agreement shall incorporate the
special vesting acceleration provisions of Sections 8 and 11 of this Agreement.

     3. Section 6(a) of the Agreement is hereby amended in its entirety to read as follows:

     (a) Expenses. Subject to applicable Company policies, including (without
limitation) the timely submission of appropriate documentation and expense reports,
the Executive will be entitled to receive prompt reimbursement of all expenses
reasonably incurred by him in connection with the performance of his duties
hereunder or for promoting, pursuing or otherwise furthering the business or
interests of the Company. Accordingly, the Executive shall submit

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appropriate evidence of each such expense within sixty (60) days after the
later or (i) his incurrence of that expense or (ii) his receipt of the invoice or
billing statement for such expense, and the Company shall provide the Executive with
the requisite reimbursement within ten (10) business days thereafter; provided,
however, that (i) no expense shall be reimbursed later than the close of the
calendar year following the calendar year in which that expense is incurred, (ii)
the amounts eligible for reimbursement in any one calendar year shall not affect the
amounts reimbursable in any other calendar year and (iii) the right to such
reimbursement may not be liquidated or exchanged for any other benefit.

     4. Section 7(d) of the Agreement is hereby amended in its entirety to read as follows:

          (d) Termination due to the Executive’s Death or Disability. This Agreement will terminate
upon the death of the Executive. The Company may terminate the Executive’s employment hereunder if
he is unable to perform, with or without reasonable accommodation, the principal duties and
responsibilities of his position with the Company for a period of six (6) consecutive months or
more by reason of any physical or mental injury or impairment; provided, however, that in the event
the Executive is at the time covered under any long-term disability benefit program in effect for
the Company’s executive officers or employees, such termination of the Executive’s employment shall
not occur until the earlier of (i) the date he first becomes eligible to receive benefits under
such program or (ii) the date he is deemed to have a Separation from Service (as defined below) by
reason of such disability. The termination of the Executive’s employment under such circumstances
shall, for purposes of this Agreement, constitute a termination for “Disability.”

     5. The following sentence is hereby added to the end of Section 8(a) of the Agreement:

     The shares underlying any restricted stock units or other equity-based awards
to which the Executive becomes entitled in accordance with the foregoing provisions
of this Section 8(a) shall be issued at the time or times set forth in the
applicable agreements evidencing those awards, subject to any required holdback
under Section 14(b).

     6. Section 8(b) of the Agreement is hereby amended in its entirety to read as follows:

          (b) If the Executive’s employment is terminated: (i) by the Company for any
reason other than for Cause; (ii) by the Executive for Good Reason; or (iii)
pursuant to a Notice of Non-Renewal delivered by the Company, the Executive will, in
addition to the Accrued Obligations, be entitled to the following compensation and
benefits from the Company, provided and only if (x) the Executive executes and
delivers to the Company a general release substantially in the form of attached
Exhibit B (the “Required Release”) within

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twenty-one (21) days (or forty-five (45) days if such longer period is required
under applicable law) after such termination of employment, (y) the Required Release
becomes effective and enforceable in accordance with applicable law and (z) the
Executive complies with the restrictive covenants set forth in Section 10:

          (i) an amount equal to sum of (A) two times the Executive’s Base Salary at the
time of the Notice of Termination and (B) two times the average of his actual Annual
Bonuses for the three fiscal years (or fewer number of fiscal years of employment
with the Company) immediately preceding the fiscal year in which such termination of
employment occurs (with any pro-rated bonus for any such year to be annualized),
with such amount to be paid in successive equal increments, in accordance with the
Company’s normal payroll practices for salaried employees, over the one-year period
measured from the date of the Executive’s Separation from Service due to such
termination of employment, beginning with the first pay day within the sixty (60)
day period following the date of such Separation from Service on which the Required
Release is effective following the expiration of any applicable revocation period,
but in no event later than the last day of such sixty (60)-day period on which the
Required Release is so effective;

          (ii) accelerated vesting of the Initial Option Grant and any Equalization Grant
to the extent of the greater of (A) fifty percent of the then unvested portion of
each such grant or (B) the portion of each such grant which would have vested had
the Executive completed an additional twelve (12) months of employment with the
Company prior to the Termination Date, and one hundred percent vesting of the
Initial RSU Award if such termination of employment occurs either prior to the
completion of the performance period specified in the Initial RSU Award Agreement or
on or after the completion of that performance period in which the designated
performance goal is attained, with any shares which so vest under the Initial RSU
Award to be issued at the time or times set forth in the Initial RSU Award
Agreement, subject to any required holdback under Section 14(b);

          (iii) provided the Executive and/or his dependents are eligible and timely
elect to continue their health care coverage under the Company’s group health plan
pursuant to their rights under COBRA, the Company will reimburse the Executive for
the costs he incurs to obtain such continued coverage for himself and his spouse and
eligible dependents (collectively, the “Coverage Costs”) until the earliest of (A)
the end of the eighteen (18)-month period measured from the Termination Date, (B)
the date that the Executive and/or his spouse and eligible dependents are no longer
eligible for COBRA coverage and (C) the date that the Executive becomes eligible for
such coverage under the health plan of any new employer (the Executive agrees to
provide the Company with written notice of such eligibility within ten calendar
days). In order to obtain reimbursement for such Coverage Costs, Executive must
submit appropriate

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evidence to the Company of each periodic payment within sixty (60) days after
the required payment date for those Coverage Costs, and the Company shall within
thirty (30) days after such submission reimburse the Executive for that payment.
During the period such medical care coverage remains in effect hereunder, the
following provisions shall govern the arrangement: (a) the amount of Coverage Costs
eligible for reimbursement in any one calendar year of such coverage shall not
affect the amount of Coverage Costs eligible for reimbursement in any other calendar
year for which such reimbursement is to be provided hereunder; (ii) no Coverage
Costs shall be reimbursed after the close of the calendar year following the
calendar year in which those Coverage Costs were incurred; and (iii) the Executive’s
right to the reimbursement of such Coverage Costs cannot be liquidated or exchanged
for any other benefit. To the extent the reimbursed Coverage Costs constitute
taxable income to the Executive, the Company shall report the reimbursement as
taxable W-2 wages and collect the applicable withholding taxes, and any remaining
tax liability shall be the Executive’s sole responsibility; and

          (iv) the Executive’s entitlement to any other benefits will be determined in
accordance with the Company’s employee benefit plans then in effect.

     7. Section 8(c) of the Agreement is hereby amended in its entirety to read as follows:

     (c) The Executive shall have the right to resign, for any reason or no reason,
at any time within the thirty (30) day period beginning six (6) months after the
closing of a Change in Control (as defined in Section 11) and to receive, in
connection with such resignation, the same severance benefits to which he would be
entitled under Section 8(b) above had such resignation been for Good Reason;
provided, however, that the Executive’s entitlement to severance benefits under this
Section 8(c) shall be conditioned upon the satisfaction of each of the following
requirements: (i) the Executive executes and delivers to the Company the Required
Release within twenty-one (21) days (or forty-five (45) days if such longer period
is required under applicable law) after such resignation, (ii) the Required Release
becomes effective and enforceable in accordance with applicable law and (iii) the
Executive complies with the restrictive covenants set forth in Section 10 of this
Agreement.

     8. There is hereby added to Section 8 of the Agreement new Section 8(d), and existing Section
8 (d) is hereby re-designated Section 8(e):

     (d) All payments and benefits under this Section 8 shall be subject to the
applicable holdback provisions of Section 14(b).

     9. Section 12(b) of the Agreement is hereby deleted in its entirety and replaced with the
following new Sections 12(b), 12(c), 12d) and 12(e):

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     (b) All determinations as to whether any of the Total Payments are “parachute
payments” (within the meaning of Section 280G of the Code), whether a Gross-Up
Payment is required, the amount of such Gross-Up Payment, and any amounts relevant
to the last sentence of the paragraph above, will be made by an independent
registered public accounting firm selected by the Company from among the largest
four such accounting firms in the United States (the “Accounting Firm”). The
Accounting Firm selected by the Company will not have an ongoing audit or consulting
relationship with the Company at the time it is selected. The Accounting Firm will
provide all applicable determinations with respect to any of the Total Payments that
become due and payable at the time of the Change in Control Event (the “Change in
Control Determination”), together with detailed supporting calculations regarding
the amount of the Excise Tax, any required Gross-Up Payment and any other relevant
matter, both to the Company and the Executive within ten (10) business days after
the effective date of the Change in Control Event or such earlier time as is
requested by the Company or the Executive (if the Executive reasonably believes that
any of the Total Payments may be subject to the Excise Tax). In addition, the
Accounting Firm will provide all applicable determinations with respect to any of
the Total Payments that become due and payable at the time of the Executive’s
Separation from Service (the “Separation from Service Determination”), together with
detailed supporting calculations regarding the amount of the Excise Tax, any
required Gross-Up Payment and any other relevant matter, both to the Company and the
Executive within ten (10) business days after the date of the Executive’s Separation
from Service. The Change in Control and Separation from Service Determinations made
by the Accounting Firm will be binding upon the Company and the Executive. The
Gross-Up Payment (if any) determined on the basis of the Change in Control
Determination shall be paid to or on behalf of Executive within five (5) business
days after the completion of such Determination or (if later) at the time the
related Excise Tax is remitted to the appropriate tax authorities. The Gross-Up
Payment (if any) determined on the basis of the Separation from Service
Determination shall be paid to or on behalf of Executive within five (5) business
days after the completion of such Determination or (if later) at the time the
related Excise Tax is remitted to the appropriate tax authorities.

     (c) In the event that the Executive’s actual Excise Tax liability is determined
by a Final Determination to be greater than the Excise Tax liability taken into
account for purposes of any Gross-Up Payment or Payments initially made to the
Executive pursuant to the provisions of Section 12(b), then within thirty (30) days
following that Final Determination, the Executive shall notify the Company of such
determination, and the Accounting Firm shall, within thirty (30) days thereafter,
make a new Excise Tax calculation based upon that Final Determination and provide
the Company and the Executive with the supporting calculations for any supplemental
Gross-Up Payment attributable to that excess Excise Tax liability. The Company shall
make the supplemental Gross-Up

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payment to the Executive within five (5) business days following the completion
of the applicable calculations or (if later) at the time such excess tax liability
is remitted to the appropriate tax authorities. In the event that the Executive’s
actual Excise Tax liability is determined by a Final Determination to be less than
the Excise Tax liability taken into account for purposes of any Gross-Up Payment or
Payments initially made to the Executive pursuant to the provisions of Section
12(b), then the Executive shall refund to the Company, within five (5) business days
following receipt, any federal or state tax refund attributable to the Excise Tax
overpayment. For purposes of this Section 12(c), a “Final Determination” means an
audit adjustment by the Internal Revenue Service that is either (i) agreed to by
both the Executive and the Company (such agreement by the Company to be not
unreasonably withheld) or (ii) sustained by a court of competent jurisdiction in a
decision with which the Executive and the Company concur or with respect to which
the period within which an appeal may be filed has lapsed without a notice of appeal
being filed.

     (d) Should the Accounting Firm determine that any Gross-Up Payment made to the
Executive was in fact more than the amount actually required to be paid to him in
accordance with the provisions of Section 12(b) or 12(c), then the Executive will,
at the direction and expense of the Company, take such steps as are reasonably
necessary (including the filing of returns and claims for refund), follow reasonable
instructions from, and procedures established by, the Company, and otherwise
reasonably cooperate with the Company to correct such overpayment. In addition,
should the Company decide to contest any assessment by the Internal Revenue Service
of an Excise Tax on one or more items comprising the Total Payments, the Executive
will comply with all reasonable actions requested by the Company in connection with
such proceedings, but shall not be required to incur any out-of-pocket costs in so
doing.

     (e) Notwithstanding anything to the contrary in the foregoing, any Gross-Up
Payments due the Executive under this Section 12 shall be subject to the hold-back
provisions of Section 14(b), to the extent those payments relate to any amounts and
benefits provided to the Executive that constitute parachute payments attributable
to his Separation from Service. In addition, no Gross-Up Payment shall be made
later than the end of the calendar year following the calendar year in which the
related taxes are remitted to the appropriate tax authorities, or such other
specified time or schedule that may be permitted under Section 409A of the Code. To
the extent the Executive may become entitled to any reimbursement of expenses
incurred by him at the direction of the Company in connection with any tax audit or
litigation addressing the existence or amount of the Excise Tax, such reimbursement
shall be paid to the Executive no later than the later of (i) the close of the
calendar year in which the Excise Tax that is the subject of such audit or
litigation is paid by or on behalf of the Executive or (ii) the end of the sixty
(60)-day period measured from such payment date. If no Excise Tax liability is found
to be due as a result of such audit or litigation, the

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reimbursement shall be paid to the Executive no later than the later of (i) the
close of the calendar year in which the audit is completed or there is a final and
non-appealable settlement or other resolution of the litigation or (ii) the end of
the sixty (60)-day period measured from the date the audit is completed or the date
the litigation is so settled or resolved.

     10. The final paragraph of Section 13(a) is hereby amended to read as follows:

     All determinations under this Section 13 shall be made by the Accounting Firm.
However, in determining whether such Benefit Limit is exceeded, the Accounting Firm
shall make a reasonable determination of the value to be assigned to the restrictive
covenants in effect for the Executive pursuant to Section 10 of the Agreement, and
the amount of his potential parachute payment under Code Section 280G shall be
reduced by the value of those restrictive covenants to the extent consistent with
Code Section 280G and the regulations thereunder. To the extent a reduction to the
Total Payments is required to be made in accordance with this Section 13, the Total
Payments attributable to any cash severance payments otherwise due the Executive
under Section 8 of this Agreement shall be reduced first (with such reduction to be
applied pro-rata to each such severance payment and without any change in the
payment dates), then the accelerated vesting of his Initial RSU Award shall be
reduced, then the accelerated vesting of any other restricted stock unit awards made
to him by the Company shall be reduced in the same chronological order in which
granted, and finally the accelerated vesting of the Executive’s stock options shall
be reduced (based on the amount of the parachute payment calculated for each such
option in accordance with the Treasury Regulations under Code Section 280G), with
such reduction to occur in the same chronological order in which those options
were granted.

     11. There is hereby added to the end of Section 14(a) of the Agreement the following sentence:

     To the extent there is any ambiguity as to whether any provision of this
Agreement would otherwise contravene one or more requirements or limitations of Code
Section 409A, such provisions shall be interpreted and applied in a manner that does
not result in a violation of the applicable requirements or limitations of Code
Section 409A and the Treasury Regulations thereunder.

     12. Section 14(b) of the Agreement is hereby amended in its entirety to read as follows:

     (b) Notwithstanding any provision to the contrary in this Agreement, no
payments or benefits to which the Executive becomes entitled under this Agreement in
connection with his termination of employment with the Company (other than the
reimbursement of Coverage Costs during the applicable period of COBRA coverage)
shall be made or paid to the Executive prior to the earlier of

7

 

(i) the first day of the seventh (7th) month following the date of his
Separation from Service due to such termination of employment or (ii) the date of
his death, if the Executive is deemed, pursuant to the procedures established by the
Compensation Committee of the Company’s Board of Directors in accordance with the
applicable standards of Code Section 409A and the Treasury Regulations thereunder
and applied on a consistent basis for all for all non-qualified deferred
compensation plans of the Employer Group subject to Code Section 409A, to be a
“specified employee” at the time of such Separation from Service and such delayed
commencement is otherwise required in order to avoid a prohibited distribution under
Code Section 409A(a)(2). Upon the expiration of the applicable deferral period, all
payments deferred pursuant to this Section 14(b) shall be paid to the Executive in a
lump sum, and any remaining payments due under this Agreement shall be paid in
accordance with the normal payment dates specified for them herein. The specified
employees subject to such a delayed commencement date shall be identified on
December 31 of each calendar year. If the Executive is so identified on any such
December 31, he shall have specified employee status for the twelve (12)-month
period beginning on April 1 of the following calendar year. For purposes of this
Agreement, including (without limitation) this Section 14(b), the following
definitions shall be in effect:

          (i) “Separation from Service” shall mean the date on which the level of the
Executive’s bona fide services as an Employee (or non-employee consultant)
permanently decreases to a level that is not more than twenty percent (20%) of the
average level of services the Executive rendered as an Employee during the
immediately preceding thirty-six (36) months (or any shorter period of such Employee
service). Any such determination, however, shall be made in accordance with the
applicable standards of the Treasury Regulations issued under Code Section 409A. In
addition to the foregoing, a Separation from Service will not be deemed to have
occurred while the Executive is on a sick leave or other bona fide leave of absence
if the period of such leave does not exceed six (6) months or any longer period for
which the Executive’s right to reemployment with the Company is provided either by
statute or contract; provided, however, that in the event of a leave of absence due
to any medically determinable physical or mental impairment that can be expected to
result in death or to last for a continuous period of not less than six (6) months
and that causes the Executive to be unable to perform his duties as an Employee, no
Separation from Service shall be deemed to occur during the first twenty-nine (29)
months of such leave. If the period of the leave exceeds six (6) months (or
twenty-nine (29) months in the event of disability as indicated above) and the
Executive’s right to reemployment is not provided either by statute or contract,
then the Executive will be deemed to have Separated from Service on the first day
immediately following the expiration of the applicable six (6)-month or twenty-nine
(29)-month period.

          (ii) The Executive shall be deemed to remain an “Employee” for so long he
remains in the employ of at least one member of the Employer Group, subject to the
control and direction of the employer entity as to both the work to be performed and
the manner and method of performance.

8

 

          (iii) “Employer Group” shall mean the Company and each member of the group of
commonly controlled corporations or other businesses that include the Company, as
determined in accordance with Sections 414(b) and (c) of the Code and the Treasury
Regulations thereunder, except that in applying Sections 1563(1), (2) and (3) of the
Code for purposes of determining the controlled group of corporations under Section
414(b), the phrase “at least 50 percent” shall be used instead of “at least 80
percent” each place the latter phrase appears in such sections and in applying
Section 1.414(c)-2 of the Treasury Regulations for purposes of determining trades or
businesses that are under common control for purposes of Section 414(c), the phrase
“at least 50 percent” shall be used instead of “at least 80 percent” each place the
latter phrase appears in Section 1.414(c)-2 of the Treasury Regulations.

     13. Section 14(c) of the Agreement is hereby amended in its entirety to read as follows:

     (c) Should the Executive comply with the provisions of subsections 14(a) and
14(b) above but nevertheless incur the 20% penalty tax imposed under Section 409A
(the “Section 409A Penalty Tax”) with respect to one or more payments or benefits
provided to him under this Agreement, then the Executive will be entitled to receive
an additional payment (the “409A Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties imposed
with respect to such taxes), including any tax imposed upon the 409A Gross-Up
Payment, the Executive retains an amount of the 409A Gross-Up Payment equal to the
Section 409A Penalty Tax imposed upon the Executive’s deferred compensation. The
amount of the 409A Gross-Up Payment shall be calculated, by an Accounting Firm
mutually agreeable to the Company and the Executive, within ten (10) business days
after it is first determined that the Executive is subject to the Section 409A
Penalty Tax, and the 409A Gross-Up Payment so calculated shall be paid to or on
behalf of the Executive within five (5) business days after the completion of such
determination or (if later) at the time the related Section 409A Penalty Tax is
remitted to the appropriate tax authorities. In the event that the Executive’s
actual Section 409A Penalty Tax liability is determined by a Final Determination to
be greater than the Section 409A Penalty Tax liability taken into account for
purposes of the 409A Gross-Up Payment initially made to the Executive pursuant to
the provisions of this Section 14(c), then within thirty (30) days following that
Final Determination, the Executive shall notify the Company of such determination,
and the Accounting Firm shall, within thirty (30) days thereafter, make a new
calculation of the 409A Gross-Up Payment based upon that Final Determination and
provide the Company and the Executive with the supporting calculations for any
supplemental 409A Gross-Up Payment attributable to that excess Section 409A Penalty
Tax liability. The Company shall make the supplemental 409A Gross-Up payment to the
Executive within five (5) business days following the completion of the applicable
calculations or (if later) at the

9

 

time such excess Section 409A Penalty Tax liability is remitted to the appropriate
tax authorities. In the event that the Executive’s actual Section 409A Penalty Tax
liability is determined by a Final Determination to be less than the Section 409A
Penalty Tax liability taken into account for purposes of the 409A Gross-Up Payment
initially made to the Executive pursuant to the provisions of this Section 14(c),
then the Executive shall refund to the Company, within five (5) business days after
receipt, any federal or state tax refund attributable to the overpayment of his
Section 409A Penalty Tax. In no event shall any 409A Gross-Up Payment to which the
Executive becomes entitled hereunder be made later than the later of (i) the end of
the calendar year in which the related Section 409A Penalty Tax is remitted to the
appropriate tax authorities or (ii) the end of the sixty (60)-day period measured
from the date such tax is so remitted.

     14. Except as modified by this Amendment, all the terms and provisions of the Agreement shall
continue in full force and effect.

     IN WITNESS WHEREOF, Apollo Group, Inc. has caused this Amendment to be executed on its behalf
by its duly-authorized officer on the date indicated below, and the Executive has executed this
Amendment on the date indicated below.

	 	 	 	 	 	 	 	 	 
	GREGORY CAPPELLI	 	 	 	APOLLO GROUP, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Gregory Cappelli
 

	 	 	 	By:
	 	/s/ Charles B. Edelstein
 

	 	 
	 
	 	 	 	 	 	 	 	 
	Dated: December 12, 2008	 	 	 	Title:	Chief Executive Officer 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Dated:
	 	December 12, 2008	 	 

10

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