Document:

exv10w9

Exhibit 10.9

Form of

WPX Energy, Inc.

2011 Employee Stock Purchase Plan

Effective as of __________

 

 

WPX ENERGY, Inc.

2011 EMPLOYEE STOCK PURCHASE PLAN

(Effective as of ________)

     The following constitute the provisions of the 2011 Employee Stock Purchase Plan of WPX
Energy, Inc.

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is the
intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to
extend and limit participation in a manner consistent with the requirements of that section of the
Code.

     2. Definitions.

          (a) “Board” means the Board of Directors of the Company.

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

          (c) “Common Stock” means the Common Stock of the Company.

          (d) “Company” means WPX Energy, Inc., a Delaware corporation.

          (e) “Compensation” means the salary and wages paid to an Employee by the Company or a
Designated Subsidiary including any pre-tax contributions under any tax-qualified retirement plan
sponsored by the Company, base pay, short term disability paid by the Company or any Designated
Subsidiary, bonuses (unless specifically excluded under a written bonus arrangement), if any, when
paid, overtime, commissions, and salary reduction amounts contributed to any cafeteria plan,
flexible benefit plan, or qualified transportation plan established by the Company or any
Designated Subsidiary in accordance with Code Section 125 and related sections of the Code, but
excluding severance pay, cost of living pay, housing pay, relocation pay (including mortgage
interest differential), other taxable fringe benefits and other extraordinary compensation, all as
determined by the Compensation Committee in its sole discretion.

          (f) “Compensation Committee” means the committee of the Board designated as the
Compensation Committee or, if there is no Compensation Committee, the Board or such other committee
designated to administer this Plan.

          (g) “Continuous Status as an Employee” means the absence of any interruption or
termination of service as an Employee. Continuous Status as an Employee shall not be
considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other
leave of absence approved by the Compensation Committee, provided that any such military, sick, or

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other leave of absence is for a period of not more than 90 days, unless reemployment upon the
expiration of such leave is guaranteed by contract or statute; or (iv) in the case of transfers
between locations of the Company or between the Company and its Designated Subsidiaries.

          (h) “Contributions” means all amounts credited to the account of a participant
pursuant to the Plan.

          (i) “Corporate Transaction” means a merger, consolidation, acquisition of property or
stock, a separation, reorganization, or liquidation of the Company and such other corporate events
as are described in Section 424 of the Code and the Treasury regulations promulgated thereunder.

          (j) “Designated Subsidiaries” means the Subsidiaries that have been designated to
participate as listed on Appendix A and such other Subsidiaries that may be designated by the
Compensation Committee from time to time in its sole discretion as eligible to participate in the
Plan.

          (k) “Employee” means any person, who is an employee of the Company or its Designated
Subsidiaries within the meaning of Section 3401(c) of the Code and the Treasury regulations
promulgated thereunder and who is customarily employed by the Company or one of its Designated
Subsidiaries, but in all cases excluding any such employee of the Company or its Designated
Subsidiaries who is a highly compensated employee within the meaning of Section 414(q) of the Code
and who holds a position that has been classified as an executive position by the Company.

          (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (m) “Offering Date” means the first business day of each Offering Period of the Plan.

          (n) “Offering Period” means a period of six (6) months commencing on January 1 and
July 1 of each year, provided that the first Offering Period under the plan will be the period
commencing on a date designated by the Compensation Committee and ending on June 30, 2012, or such
later date as designated by the Compensation Committee.

          (o) “Plan” means WPX Energy, Inc. 2011 Employee Stock Purchase Plan.

          (p) “Purchase Date” means the last day of each Offering Period of the Plan.

          (q) “Purchase Price” means with respect to an Offering Period, an amount equal to 85%
of the Fair Market Value (as defined in Section 7(b) below) of a Share of Common Stock on the
Offering Date or on the Purchase Date, whichever is lower.

          (r) “Share” means a share of Common Stock, as adjusted in accordance with Section 18
of the Plan.

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          (s) “Subsidiary” means a corporation, domestic or foreign, of which not less than 50%
of the combined voting power is held by the Company or a Subsidiary, whether or not such
corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. In
addition, to the maximum extent permitted by Section 423 of the Code, disregarded entities which
are owned by a corporation which meets the requirements of the preceding sentence shall be ignored
(and Employees, if any, of the disregarded entities shall be considered employed by the corporation
that owns such entity). In all cases the determination of whether an entity is a Subsidiary shall
be made in accordance with Section 424(f) of the Code.

     3. Eligibility.

          (a) Any person who is an Employee as of the Offering Date of a given Offering Period shall be
eligible to participate in such Offering Period under the Plan, subject to the requirements of
Section 5(a) and the limitations imposed by Section 423(b) of the Code.

          (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted
an option under the Plan (i) if, immediately after the grant, such Employee (or any other person
whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own
capital stock of the Company and/or hold outstanding options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of the
Company or of any Subsidiary of the Company, or (ii) if such option would permit his or her rights
to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of
the Company and its Subsidiaries to accrue at a rate that exceeds Twenty-Five Thousand Dollars
($25,000) of the Fair Market Value (as defined in Section 7(b) below) of such stock (determined at
the time such option is granted) for each calendar year in which such option is outstanding at any
time.

          (c) Under the situations detailed in Section 3(a) and 3(b), to the extent necessary to comply,
a participant’s Contributions credited to his or her account may be returned to him or her and his
or her option(s) may be terminated.

     4. Offering Periods. The Plan shall be implemented by a series of Offering Periods
of six (6) months’ duration, with new Offering Periods commencing on or about January 1 and July 1
of each year (or at such other time or times as may be determined by the Compensation Committee).
The first Offering Period however shall be the period commencing on a date designated by the
Compensation Committee and ending on June 30, 2012 , or such later date as designated by the
Compensation Committee. The Plan shall continue until terminated in accordance with Section 19
hereof. The Compensation Committee shall have the power to change the duration and/or the frequency
of Offering Periods with respect to future offerings without stockholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first Offering Period to
be affected; provided however any such change shall comply with Section 423(b) of the Code.

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     5. Participation.

          (a) An eligible Employee may become a participant in the Plan by completing required documents
(“Enrollment Documents”) and submitting them to the stock brokerage or other financial services
firm designated by the Company (“Designated Broker”) as required prior to the applicable Offering
Date, unless a later time for submission of the Enrollment Documents is set by the Compensation
Committee for all eligible Employees with respect to a given Offering Period; provided however,
that notwithstanding anything to the contrary, such later time for submission shall not be after
the beginning of the Offering Period. The Enrollment Documents and their submission may be
electronic, as directed by the Company. The Enrollment Documents shall set forth the dollar amount
of the participant’s Compensation (subject to Section 6(a) below) to be paid as Contributions
pursuant to the Plan.

          (b) Payroll deductions shall commence on the first full payroll paid following the Offering
Date and shall end in the last payroll paid on or prior to the Purchase Date of the Offering Period
to which the Enrollment Documents are applicable, subject to Section 10.

     6. Method of Payment of Contributions.

          (a) Subject to the limitations set forth in Section 3(b), a participant shall elect at the
time and manner prescribed by the Designated Broker to have payroll deductions made on each payday
during the Offering Period in an dollar amount of not less than $10.00 but not to exceed $576 per
payday (or such greater amount as the Compensation Committee may establish from time to time before
an Offering Date) of such participant’s Compensation on each payday during the Offering Period;
provided further that once such election has been made and the Offering Period begins, the
participant may not increase such election amount during such Offering Period and may decrease such
election amount only as detailed in Section 6(b) or elsewhere in this Plan. All payroll deductions
made by a participant shall be credited to his or her account under the Plan. A participant may not
make any additional payments into such account. Further, the maximum payroll deductions that a
participant may elect per Offering Period shall not exceed $7,500 and the maximum payroll
deductions that a participant may elect for any calendar year shall not exceed $15,000 (or, subject
to the limitations set forth in Section 3(b), such greater amount as the Compensation Committee may
establish from time to time before an Offering Date). Finally, subject to the preceding sentence
and to the limitations set forth in Section 3(b), a participant (i) who has elected to participate
in the Plan pursuant to this Section 6(a) for an Offering Period and (ii) who takes no action to
change or revoke such election, for the next following Offering Period and/or for any subsequent
Offering Period prior to the Offering Date for any such respective Offering Period shall be deemed
to have made the same election, including the same attendant payroll deduction authorization, for
such next following and/or subsequent Offering Periods as was in effect immediately prior to such
respective Offering Date; provided further that any participant who has elected to participate in
the Plan for the first Offering Period who takes no action to change or revoke such election, for
the next following Offering Period and/or for any subsequent Offering Period prior to the Offering
Date for any such respective Offering Period shall be deemed to have made the same payroll
deduction

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authorization for such next following and/or subsequent Offering Periods as was in effect
immediately prior to such respective Offering Date.

          (b) A participant may not discontinue his or her participation in the Plan except as provided
in Section 10; provided, however, that, a participant may reduce his or her payroll deduction to
zero during an Offering Period by completing and filing with the Designated Broker the required
documents authorizing such a change in the payroll deduction rate if the documents are completed at
least ten (10) days prior to the Purchase Date. Such change to zero will apply for the whole
Offering Period and will be irrevocable with respect to the Option Period. A participant’s
Contributions prior to the processing of the change in his or her payroll deduction rate to zero
will be paid to such participant, and his or her option for the current Offering Period will be
automatically terminated, and no further Contributions for the purchase of Shares shall be made
during the Offering Period. Such a participant will be required to actively make a new election for
the next Offering Period that he or she chooses to participate in.

          (c) Notwithstanding the foregoing, solely to the extent necessary to comply with Section
423(b)(8) of the Code and Section 3(b) herein, a participant’s payroll deductions may be decreased
during any Offering Period scheduled to end during the current calendar year to any amount below
the elected dollar amount including a decrease to $0. Payroll deductions shall re-commence at the
rate provided in such participant’s Enrollment Documents at the beginning of the first Offering
Period that is scheduled to end in the following calendar year, unless terminated as provided in
Section 10.

     7. Grant of Option.

          (a) On the Offering Date of each Offering Period, each eligible Employee participating in such
Offering Period shall be granted an option to purchase on each Purchase Date a number of Shares of
the Company’s Common Stock determined by dividing such Employee’s Contributions accumulated prior
to such Purchase Date and retained in the participant’s account as of the Purchase Date by the
applicable Purchase Price; provided however that the maximum number of Shares an Employee may
purchase during each Offering Period shall be 750 Shares (subject to any adjustment pursuant to
Section 18 below), and provided further that such purchase shall be subject to the limitations set
forth in Sections 3(b) and 12.

          (b) The fair market value of the Company’s Common Stock on a given date (the “Fair Market
Value”) shall be the closing sales price on the New York Stock Exchange on such date (or, in the
event that the Common Stock is not traded on such date, on the immediately preceding trading date),
as reported in The Wall Street Journal (or an equivalent alternate or successor). In the
event the Company’s Common Stock is not publicly traded at the time a determination of its value is
required to be made hereunder, the determination of its fair market value shall be made by the
Compensation Committee in such manner as it deems appropriate.

     8. Exercise of Option. Subject to Section 10, a participant’s option for the
purchase of Shares will be exercised automatically on each Purchase Date of an Offering Period, and
the greatest number of Shares subject to the option will be purchased at the applicable Purchase
Price with the accumulated Contributions in his or her account. Fractional Shares up to three

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decimal places shall be issued, as necessary; provided that any excess Contributions in a
participant’s account that cannot purchase a fractional Share up to three decimal points may be
returned to such participant. The Shares purchased upon exercise of an option hereunder shall be
deemed to be transferred to the participant on the Purchase Date. During his or her lifetime, a
participant’s option to purchase Shares hereunder is exercisable only by him or her.

     9. Holding Period and Delivery. As promptly as practicable after a Purchase Date,
the number of Shares purchased by each participant upon exercise of his or her option shall be
deposited into an account established in the participant’s name with the Designated Broker. Any
payroll deductions accumulated in a participant’s account that are not applied toward the purchase
of Shares on a Purchase Date due to limitations imposed by the Plan may be returned to the
participant. The Compensation Committee may require that Shares be retained with the Designated
Broker for a designated period of time and/or may establish other procedures to permit tracking of
disqualifying dispositions of such Shares. Subject to the holding period described in the following
sentence, a participant may, at any time, direct the Designated Broker to sell his or her Shares
and deliver to the participant the proceeds therefrom, less applicable expenses. Notwithstanding
any other provision of the Plan to the contrary, all Shares purchased by a participant cannot be
sold or otherwise transferred by the participant to anyone else until one year after the Purchase
Date.

     10. Withdrawal; Termination of Employment.

          (a) A participant may withdraw all but not less than all the Contributions credited to his or
her account under the Plan as detailed in Section 6(b).

          (b) Upon termination of the participant’s status as an eligible Employee and/or Continuous
Status as an Employee prior to the Purchase Date of an Offering Period for any reason, whether
voluntary or involuntary, including retirement or death, the Contributions credited to his or her
account will be returned to him or her or, in the case of his or her death, to the person or
persons entitled thereto under Section 14, and his or her option will be automatically terminated.

          (c) In the event an Employee fails to remain in Continuous Status as an Employee of the
Company during the Offering Period in which the employee is a participant, he or she will be deemed
to have elected to withdraw from the Plan and the Contributions credited to his or her account will
be returned to him or her and his or her option terminated.

          (d) An Employee’s withdrawal from an offering (other than under Section 10(b)) will not have
any effect upon his or her eligibility to participate in a succeeding offering or in any similar
plan that may hereafter be adopted by the Company.

     11. Interest. No interest shall accrue on the Contributions of a participant in the
Plan.

     12. Stock.

          (a) Subject to adjustment as provided in Section 18, the maximum number of Shares that shall
be made available for sale under the Plan shall be            Shares. If the

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Compensation Committee determines that, on a given Purchase Date, the number of shares with
respect to which options are to be exercised may exceed (1) the number of shares of Common Stock
that were available for sale under the Plan on the Offering Date of the applicable Offering Period,
or (2) the number of shares available for sale under the Plan on such Purchase Date, the
Compensation Committee may in its sole discretion provide (x) that the Company shall make a pro
rata allocation of the Shares of Common Stock available for purchase on such Offering Date or
Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall
determine in its sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Purchase Date, and continue the Plan as then in effect, or (y) that
the Company shall make a pro rata allocation of the Shares available for purchase on such Offering
Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Purchase Date, and terminate the Plan pursuant to Section 19 below.
The Company may make a pro rata allocation of the Shares available on the Offering Date of any
applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of
additional Shares for issuance under the Plan by the Company’s stockholders subsequent to such
Offering Date.

          (b) The participant shall have no interest or voting right in Shares covered by his or her
option until such option has been exercised.

     13. Administration. The Compensation Committee shall supervise and administer the
Plan and shall have full power to adopt, amend and rescind any rules deemed desirable and
appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and
interpret the Plan, and to make all other determinations necessary or advisable for the
administration of the Plan. The Compensation Committee delegates the routine day-to-day
administration of the Plan (including the selection of a Designated Broker for the Plan) to the
Vice President of Human Resources.

     14. Designation of Beneficiary.

          (a) A participant may designate a beneficiary who is to receive any Shares and cash, if any,
from the participant’s account under the Plan in the event of such participant’s death subsequent
to the end of an Offering Period but prior to delivery to him or her of such Shares and cash. In
addition, a participant may designate a beneficiary who is to receive any cash from the
participant’s account under the Plan in the event of such participant’s death prior to the Purchase
Date of an Offering Period. If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective. Beneficiary
designations under this Section 14(a) shall be made in the form and manner prescribed by the
Designated Broker.

          (b) Such designation of beneficiary may be changed by the participant (and his or her spouse,
if any) at any time by submission of the required notice, which required notice may be electronic.
In the event of the death of a participant and in the absence of a beneficiary validly designated
under the Plan who is living at the time of such participant’s death, the Company shall deliver
such Shares and/or cash to the executor or administrator of the estate of the

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participant, on behalf of such estate, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such
Shares and/or cash to the applicable heirs at law.

     15. Transferability. Neither Contributions credited to a participant’s account nor
any rights with regard to the exercise of an option or to receive Shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, or as provided in Section 14) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect, except that the Company
may treat such act as an election to withdraw funds in accordance with Section 10.

     16. Use of Funds. All Contributions received or held by the Company under the Plan
may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such Contributions.

     17. Reports. Individual accounts will be maintained for each participant in the
Plan. Statements of account will be provided to participating Employees by the Company or the
Designated Broker at least annually, which statements will set forth the amounts of Contributions,
the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if
any.

     18. Adjustments Upon Changes in Capitalization; Corporate Transactions.

          (a) Adjustment. Subject to any required action by the stockholders of the Company,
the number of Shares covered by each option under the Plan that has not yet been exercised, the
number of Shares that have been authorized for issuance under the Plan but have not yet been placed
under option (collectively, the “Reserves”), the maximum number of Shares of Common Stock
that may be purchased by a participant in an Offering Period, the number of Shares of Common Stock
set forth in Section 12(a) above, and the price per Share of Common Stock covered by each option
under the Plan that has not yet been exercised, shall be proportionately adjusted for any increase
or decrease in the number of issued Shares resulting from a spin-off, stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock (including any such
change in the number of Shares of Common Stock effected in connection with a change in domicile of
the Company), or any other increase or decrease in the number of Shares effected without receipt of
consideration by the Company; provided however that conversion of any convertible securities of the
Company shall not be deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Compensation Committee, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the number or price of
Shares subject to an option.

          (b) Corporate Transactions. In the event of a dissolution or liquidation of the
Company, any Offering Period then in progress will terminate immediately prior to the consummation
of such action, unless otherwise provided by the Board. In the event of a Corporate Transaction,
each option outstanding under the Plan shall be assumed or an equivalent

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option shall be substituted by the successor corporation or a parent or Subsidiary of such
successor corporation. In the event that the successor corporation refuses to assume or substitute
for outstanding options, each Offering Period then in progress shall be shortened and a new
Purchase Date shall be set (the “New Purchase Date”), as of which date any Offering Period
then in progress will terminate. The New Purchase Date shall be on or before the date of
consummation of the transaction and the Board shall notify each participant in writing, at least
ten (10) days prior to the New Purchase Date, that the Purchase Date for his or her option has been
changed to the New Purchase Date and that his or her option will be exercised automatically on the
New Purchase Date, subject to Section 10. For purposes of this Section 18, an option granted under
the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance of the
stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan
would be entitled to receive upon exercise of the option the same number and kind of shares of
stock or the same amount of property, cash or securities as such holder would have been entitled to
receive upon the occurrence of the transaction if the holder had been, immediately prior to the
transaction, the holder of the number of Shares of Common Stock covered by the option at such time
(after giving effect to any adjustments in the number of Shares covered by the option as provided
for in this Section 18); provided however that if the consideration received in the transaction is
not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of
the Code), the Board may, with the consent of the successor corporation, provide for the
consideration to be received upon exercise of the option to be solely common stock of the successor
corporation or its parent equal in Fair Market Value to the per Share consideration received by
holders of Common Stock in the transaction.

     The Board may, if it so determines in the exercise of its sole discretion, also make provision
for adjusting the Reserves, as well as the price per Share of Common Stock covered by each
outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of Shares of its outstanding
Common Stock, and in the event of the Company’s being consolidated with or merged into any other
corporation.

     19. Amendment or Termination.

     (a) The Board may at any time and for any reason terminate or amend the Plan. Except as
provided in Section 18, no such termination of the Plan may affect options previously granted.
Except as provided in Section 18 and in this Section 19, no amendment to the Plan shall make any
change in any option previously granted that adversely affects the rights of any participant. In
addition, to the extent necessary to comply with Rule 16b-3 under the Exchange Act, or under Section
423 of the Code (or any successor rule or provision or any applicable law or regulation), the
Company shall obtain stockholder approval in such a manner and to such a degree as so required.

          (b) Without stockholder consent and without regard to whether any participant rights may be
considered to have been adversely affected, the Compensation Committee shall be entitled to change
the Offering Periods (solely prior to the commencement of the affected Offering Periods), limit the
frequency and/or number of changes in the amount withheld during an Offering Period (solely prior
to the commencement of the affected Offering Periods),

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establish the exchange ratio applicable to amounts withheld in a currency other than U.S.
dollars, permit payroll withholding in excess of the amount designated by a participant in order to
adjust for delays or mistakes in the Company’s processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock for each participant
properly correspond with amounts withheld from the participant’s Compensation, and establish such
other procedures as the Compensation Committee determines in its sole discretion advisable that are
consistent with the Plan.

     20. Notices. All notices or other communications by a participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     21. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to
an option unless the exercise of such option and the issuance and delivery of such Shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, applicable state securities laws and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the approval of counsel
for the Company with respect to such compliance.

     As a condition to the exercise of an option, the Company may require the person exercising
such option to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

     22. Term of Plan; Effective Date. The Plan WAS effective upon approval by The
Williams Companies, Inc. as the Company’s sole stockholder. It shall continue in effect for a term
of ten (10) years unless sooner terminated under Section 19.

     23. Additional Restrictions of Rule 16b-3. The terms and conditions of options
granted hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange
Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to
contain, and such options shall contain, and the Shares issued upon exercise thereof shall be
subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

     24. Not a Contract of Employment. The adoption and maintenance of the Plan shall not
be deemed to be a contract between the Company or any Designated Subsidiaries and any person or to
be consideration for the employment of any person. Participation in the Plan at any given time
shall not be deemed to create the right to participate in the Plan, or any other arrangement
permitting an employee of the Company or any Designated Subsidiaries to purchase Common Stock at a
discount, in the future. The rights and obligations under any participant’s terms of employment
with the Company or any of the Designated Subsidiaries shall not be affected by

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participation in the Plan. Nothing herein contained shall be deemed to give any person the
right to be retained in the employ of the Company or any of the Designated Subsidiaries or to
restrict the right of the Company or any of the Designated Subsidiaries to discharge any person at
any time, nor shall the Plan be deemed to give the Company or any of the Designated Subsidiaries
the right to require any person to remain in the employ of the Company or any of the Designated
Subsidiaries or to restrict any person’s right to terminate his employment at any time. The Plan
shall not afford any participant any additional right to compensation as a result of the
termination of such participant’s employment for any reason whatsoever.

     25. Equal Rights and Privileges. All eligible employees shall have equal rights and
privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan”
within the meaning of Section 423 of the Code and the related Treasury regulations. Any provision
of the Plan which is inconsistent with Section 423 of the Code shall without further act or
amendment by the Company or the Board be reformed to comply with the requirements of Section 423.
This Section shall take precedence over all other provisions of the Plan.

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APPENDIX A DESIGNATED SUBSIDIARIES

13exv10w1

Exhibit 10.1

SENIOR MANAGEMENT AGREEMENT

BY AND BETWEEN

HURON CONSULTING GROUP INC.

AND

C. MARK HUSSEY

 

 

SENIOR MANAGEMENT AGREEMENT

     SENIOR MANAGEMENT AGREEMENT (the “Agreement”), effective as of July 18, 2011 (the “Effective
Date”), by and between Huron Consulting Group Inc., a Delaware corporation (“Huron”), and C. Mark
Hussey (“Executive”).

PRELIMINARY RECITALS

     A. WHEREAS, Huron and its affiliates are engaged in the business of providing diversified
business consulting services (the “Business”). For purposes of this Agreement (except where the
context contemplates otherwise), the term the “Company” shall include Huron, its subsidiaries and
assignees and any successors in interest of the Company and its subsidiaries; and

     B. WHEREAS, the Company currently employs Executive and desires to continue to employ
Executive from and after the Effective Date, and Executive desires to continue to be so employed by
the Company, as set forth herein.

     NOW, THEREFORE, in consideration of the premises, the mutual covenants of the parties
hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

     1. Employment.

          1.1 Title and Duties. The Company agrees to continue to employ Executive, and
Executive agrees to accept such continuing employment with the Company, as Executive Vice
President, Chief Financial Officer, and Treasurer for the Employment Period, in accordance with the
terms and conditions of this Agreement. During the Employment Period, Executive shall have such
responsibilities, duties and authorities as are customarily assigned to such position and shall
render such services or act in such capacity for the Company and its affiliates as the Chief
Executive Officer (the “CEO”) of Huron Consulting Group Inc. (“Huron”) shall from time to time
direct. Executive shall perform the duties and carry out the responsibilities assigned to
Executive, to the best of Executive’s ability, in a trustworthy and businesslike manner for the
purpose of advancing the business of the Company and its affiliates. Executive acknowledges that
Executive’s duties and responsibilities hereunder will require Executive’s full business time and
effort and agrees that, during the Employment Period, Executive will not engage in any other
business activity or have any business pursuits or interests which materially interfere or conflict
with the performance of Executive’s duties hereunder; provided that Executive may, with the
approval of the General Counsel of Huron and the CEO or his designee, serve on the board of other
corporations or charitable organizations and engage in charitable activities, community affairs,
and teaching. Executive shall engage in travel as reasonably required in the performance of
Executive’s duties.

          1.2 Employment Period. The employment of Executive under this Agreement shall
continue from and after the Effective Date and shall continue through the first anniversary of the
Effective Date (the “Initial Period”). Commencing on the first anniversary of the Effective Date
and on each anniversary of the expiration of the Initial Period thereafter, the employment of
Executive under this Agreement shall automatically renew and extend for an

 

 

additional year, unless one of the parties shall deliver to the other sixty (60) days’ advance
written notice of the cessation of such automatic renewal. “Employment Period” shall mean the
Initial Period and any automatic extensions of Executive’s employment under this Agreement.
Notwithstanding anything to the contrary contained herein, the Employment Period is subject to
termination prior to the date of expiration thereof pursuant to this Section 1.2 and Sections 1.3,
1.4 and 1.5.

          1.3 Termination Upon Death. If Executive dies during the Employment Period,
Executive’s employment shall automatically terminate on the date of Executive’s death.

          1.4 Termination by the Company.

     (a) The Company may terminate Executive’s employment hereunder upon written notice to
Executive as described in Section 10.5. Such termination shall be effective upon the date
notice of such termination is given pursuant to Section 10.5 unless such notice shall
otherwise provide.

     (b) For purposes of this Agreement, “Cause” means the occurrence of any of the
following events, as determined in the reasonable good faith judgment of the CEO:

     (i) the failure of Executive to perform Executive’s material duties (unless
such failure relates to any disability, sickness or injury of Executive) which
failure continues for twenty (20) days after the Company has given written notice to
Executive specifying in reasonable detail the manner in which Executive has failed
to perform such duties and affording opportunity to cure;

     (ii) commission by Executive of an act or omission (A) constituting (x) a
felony, (y) dishonesty with respect to the Company or (z) fraud, or (B) that (x)
could reasonably be expected to adversely and materially affect the Company’s
business or reputation, or (y) involves moral turpitude;

     (iii) the breach, non-performance or non-observance of any of the material
terms of this Agreement (other than a breach, non-performance or non-observance
described in clause (i) of this Section 1.4(b)), or any other agreement to which
Executive and the Company are parties, by Executive, if such breach, non-performance
or non-observance shall continue beyond a period of twenty (20) days immediately
after written notice thereof given by the Company to Executive; or

     (iv) any breach, non-performance or non-observance of any of Sections 6.3, 6.4
or 6.5 of this Agreement; provided, however, that if any such breach,
non-performance or non-observance is curable, no Cause will exist if the situation
is resolved to the satisfaction of the Company and Executive within ten (10) days of
notification of Executive of the breach, non-performance or non-observance.

     (c) Executive shall be deemed to have a “Permanent Disability” for purposes of this
Agreement if Executive is eligible to receive benefits under the Company’s long-term
disability plan then covering Executive.

 

 

          1.5 Termination by Executive. Except as otherwise provided herein, Executive shall
give sixty (60) days’ notice to the Company prior to the effectiveness of any resignation of
Executive’s employment with the Company. Executive’s termination of employment shall be deemed to
be on account of “Good Reason” if (a)(i) the Company gives notice to Executive that, during the
Employment Period, Executive’s primary location of employment with the Company will change to a
location that is more than fifty (50) miles from Executive’s primary location of employment with
the Company in Chicago, Illinois, if (ii) Executive gives notice to the Company that the Company
has materially failed to comply with any material term of this Agreement, or (iii) the Company
materially reduces Executive’s base salary or benefits coverage, provided that such reduction is
without Executive’s consent, is not warranted by the Company’s financial condition, and is not a
change that applies uniformly to similarly-situated Company executives, (b) the Company does not
rescind (or otherwise cure) such event or condition within the sixty (60) day period following the
occurrence of such event or, if applicable, the date of the notice from Executive to the Company,
and (c) Executive resigns her employment within thirty (30) days after the end of such sixty (60)
day cure period. The Company and Executive agree that a relocation of more than fifty (50) miles
from Executive’s primary location of employment in Chicago, Illinois would be a material adverse
change in Executive’s employment with the Company. Any notice from Executive to the Company under
Section 1.5(a)(ii) or (iii) shall be provided within thirty (30) days after Executive first has
knowledge of the applicable event or condition.

     2. Compensation.

          2.1 Base Salary. As consideration for the services of Executive hereunder, the
Company shall pay Executive an annual base salary (the “Base Salary”), payable in accordance with
the Company’s customary payroll practices as in effect from time to time. At the conclusion of the
Initial Period, the CEO shall perform an annual review of Executive’s compensation based on
Executive’s performance of Executive’s duties and the Company’s other compensation policies. The
term Base Salary shall include any changes to the Base Salary from time to time.

          2.2 Bonus Programs. For each calendar year, Executive shall be eligible for an annual
bonus in an amount determined by the Compensation Committee of the Board (the “Compensation
Committee”) based on Executive’s performance of Executive’s duties and the Company’s other
compensation policies (the “Annual Bonus”). The actual Annual Bonus paid will be based on the
Company and Executive performance. Executive’s right to any bonus payable pursuant to this Section
2.2 shall be contingent upon Executive being employed by the Company on the date the Annual Bonus
is generally paid to executives of the Company.

     3. Equity Award. Executive shall generally be eligible to participate in Huron’s
equity plans from time to time, with the amount of any equity awards, and the terms and conditions
under which they are granted being in the sole discretion of the Compensation Committee based on
Executive’s performance of Executive’s duties and the Company’s other compensation policies. Such
equity awards shall be subject to the terms of the applicable equity incentive plan of the Company
and granting agreement.

     4. Benefits and Expenses.

 

 

          4.1 Benefits. During the Employment Period, Executive shall be eligible to
participate in the various health and welfare benefit plans maintained by the Company for its
similarly-situated key management employees from time to time, including but not limited to paid
vacation, medical and dental insurance, and disability and life insurance at levels as are provided
from time to time to similarly-situated executives of the Company.

          4.2 Business Expenses. The Company shall reimburse Executive for all ordinary,
necessary and reasonable travel and other business expenses incurred by Executive in connection
with the performance of Executive’s duties hereunder, in accordance with the Company policy. Such
reimbursement shall be made upon presentation of itemized expense statements and such other
supporting documentation as the Company may reasonably require. To the extent that any such
reimbursements are taxable to Executive (“Taxable Reimbursements”), such reimbursements shall be
paid to Executive only if (a) the expenses are incurred and reimbursable pursuant to a
reimbursement plan that provides an objectively determinable nondiscretionary definition of the
expenses that are eligible for reimbursement and (b) the expenses are incurred during the
Employment Period. With respect to any Taxable Reimbursements, the amount of the expenses that are
eligible for reimbursement during one calendar year may not affect the amount of reimbursements to
be provided in any subsequent calendar year, the reimbursement of an eligible expense shall be made
on or before the last day of the calendar year following the calendar year in which the expense was
incurred, and the right to reimbursement of the expenses shall not be subject to liquidation or
exchange for any other benefit.

     5. Compensation After Termination.

          5.1 Termination For Cause; Resignation Without Good Reason. If, Executive’s
employment is terminated by the Company for Cause or if Executive resigns her employment other than
for Good Reason during the Employment Period then, except as required by law, the Company shall
have no further obligations to Executive (except payment of the Base Salary accrued through the
date of said termination), and the Company shall continue to have all other rights available
hereunder (including, without limitation, all rights under the Restrictive Covenants at law or in
equity).

          5.2 Termination Without Cause; Resignation For Good Reason.

     (a) If Executive’s employment is terminated by the Company without Cause or Executive
resigns for Good Reason, then, subject to the terms and conditions of this Agreement,
Executive shall be entitled to receive the following amounts and benefits:

     (i) Severance pay (“Severance Pay”) in an amount equal to the Base Salary that
otherwise would have been payable if Executive’s employment hereunder had continued
until the last day of the Initial Period (with a minimum of six (6) months’ Base
Salary) or, after the Initial Period, in an amount equal six (6) months Base Salary,
which Severance Pay, in either case, shall be payable to Executive in a lump sum
within sixty (60) days following Executive’s termination of employment; and

     (ii) Continuation of medical benefits during the unexpired portion of the
Initial Period (with a minimum of six (6) months) or, after the Initial Period,

 

 

for six (6) months, in either case, upon the same terms as exist from time to
time for active similarly-situated executives of the Company, which benefits shall
be considered part of, and not in addition to, any coverage required under COBRA.

     (b) The Company shall have no other obligations under this Agreement or otherwise for
periods from and after Executive’s employment termination date (except payment of the Base
Salary accrued through the date of said termination), and the Company shall continue to
have all other rights available hereunder (including, without limitation, all rights under
the Restrictive Covenants at law or in equity).

          5.3 Termination Due To Death, Permanent Disability. If Executive’s employment is
terminated due to Executive’s Permanent Disability or if Executive dies during the Employment
Period, then, subject to the terms and conditions of this Agreement, (a) Executive or Executive’s
estate, as the case may be, shall be entitled to receive, in addition to any amounts Executive may
be entitled to receive under the Company’s long-term disability plan or other benefit plans,
payment of Base Salary through the date of termination, and (b) Executive and/or Executive’s
eligible dependents shall receive continuation of medical benefits upon the same terms as exist
immediately prior to the termination of employment for similarly-situated active executives of the
Company for the three (3)-month period immediately following the termination of employment (which
benefits shall be considered part of, and not in addition to, any coverage required under COBRA).
The Company shall have no other obligations under this Section 5.3 or otherwise with respect to
Executive’s employment from and after the termination date and the Company shall continue to have
all other rights available hereunder (including, without limitation, all rights under the
Restrictive Covenants at law or in equity).

          5.4 Change of Control.

     (a) The provisions of Sections 5.2 and 5.3 hereof to the contrary notwithstanding but
subject to the other terms and conditions of this Agreement, if (i) Executive is terminated
by the Company without Cause or Executive resigns her employment for CoC Good Reason
(defined below) in either case during the period commencing on a Change of Control (defined
below) and ending on the second anniversary of the Change of Control (such two-year period
being the “Protection Period” hereunder), or (ii) Executive reasonably demonstrates that the
Company’s termination of Executive’s employment (or event which, had it occurred following a
Change of Control, would have constituted CoC Good Reason) prior to a Change of Control was
attributable to or intended to facilitate a Change of Control or was at the request or
instigation of a third party who was taking steps reasonably calculated to effect a Change
of Control (or otherwise in contemplation of a Change of Control) and a Change of Control
actually occurs within twelve (12) months of such termination or resignation of Executive (
a “Qualifying Termination”), then, subject to the terms and conditions of this Agreement,
Executive shall be entitled to receive the following payments and benefits:

     (i) an amount in cash equal to the then-prevailing target amount of Executive’s
Annual Bonus (“Target Bonus”) for the year of termination or resignation multiplied
by a fraction, the numerator of which is the number of completed days of employment
by Executive (including the date of termination or

 

 

resignation) during the year of termination or resignation and the denominator
of which is 365;

     (ii) an amount in cash equal to the sum of Executive’s annual Base Salary and
Target Bonus, if any, for the year of termination or resignation; and

     (iii) continuation of medical benefits until the first anniversary of the date
of such termination or resignation upon the same terms as exist for Executive
immediately prior to the termination or resignation date (which benefits shall be
considered part of, and not in addition to, any coverage required under COBRA).

Following any termination or resignation of Executive’s employment pursuant to this Section
5.4, the Company shall continue to have all other rights available hereunder (including,
without limitation, all rights under the Restrictive Covenants and any restrictive covenants
set forth in any plan, award and agreement applicable to Executive, at law or in equity).
Subject to Executive’s execution of the Release described in Section 5.5, the payments
described in clauses (i) and (ii) (“Change of Control Severance Pay”) shall be paid in a
lump sum within sixty (60) days following Executive’s termination or resignation of
employment (or, in the case of a Qualifying Termination that occurs prior to the Change of
Control, within sixty (60) days following the Change of Control). If the Qualifying
Termination occurs prior to a Change of Control, in addition to the benefits described in
clause (iii) of this Section 5.4(a), Executive shall be paid a lump sum cash payment equal
to the difference between (I) the applicable premium paid by Executive for continuation of
medical benefits under COBRA from the date of the Qualifying Termination through the date of
the Change of Control (the “Pre-CIC Coverage Period”) and (II) the amount of the applicable
premium that would have been paid by Executive for continuation of medical benefits during
the Pre-CIC Coverage Period had the provisions of Section 5.4(a)(iii) been given effect from
the date of the Qualifying Termination, which payment shall be made in a lump sum within
sixty (60) days following the Change of Control. If (and to the extent) that the benefits
provided pursuant to Section 5.4(a)(iii) are taxable to Executive and are subject to Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), the amount of the
expenses that are eligible for reimbursement during one calendar year may not affect the
amount of reimbursements to be provided in any subsequent calendar year, the reimbursement
of an eligible expense shall be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred, and the right to
reimbursement of the expenses shall not be subject to liquidation or exchange for any other
benefit.

     (b) Payments and benefits under Section 5.4(a) shall not be subject to mitigation or
offset, except that medical benefits may be offset by comparable benefits obtained by
Executive in connection with subsequent employment. Nothing in this Section 5.4 is intended
to result in duplication of benefits provided by other provisions of this Agreement.

     (c) Anything set forth in any equity plan, equity award or any other provision of this
Agreement between the Company and Executive to the contrary notwithstanding, all of
Executive’s outstanding equity grants that were awarded at or prior to the time of the
Change of Control shall fully vest upon the occurrence of a Qualifying Termination.

 

 

     (d) The Change of Control Severance Pay shall be in lieu of the Severance Pay otherwise
for a termination under Section 5.2 of this Agreement and any other plan or agreement of the
Company, whether adopted before or after the date hereof, which provides severance payments
or benefits. For the avoidance of doubt, Executive shall not be entitled to payments and
benefits under both this Section 5.4 and any other provision of this Section 5 as the result
of her termination of employment.

     (e) If it is determined that any amount, right or benefit paid or payable (or otherwise
provided or to be provided) to Executive by the Company or any of its affiliates under this
Agreement or any other plan, program or arrangement under which Executive participates or is
a party (collectively, the “Payments”), would constitute an “excess parachute payment”
within the meaning of Section 280G of the Code, subject to the excise tax imposed by Section
4999 of the Code, as amended from time to time (the “Excise Tax”), then the amount of the
Payments payable to Executive under this Agreement shall be reduced (a “Reduction”) to the
extent necessary so that no portion of such Payments payable to Executive is subject to the
Excise Tax.

     All determinations required to be made under this Section 5.4(e) and the assumptions to
be utilized in arriving at such determination, shall be made by an independent, nationally
recognized accounting firm mutually acceptable to the Company and Executive (the “Auditor”);
provided that in the event a Reduction is required, Executive may determine which Payments
shall be reduced in order to comply with the provisions of Section 5.4(e); provided,
however, that Executive may not determine such order with respect to any payments that are
subject to Section 409A of the Code. The Auditor shall promptly provide detailed supporting
calculations to both the Company and Executive following any determination that a Reduction
is necessary. All fees and expenses of the Auditor shall be paid by the Company. All
determinations made by the Auditor shall be binding upon the Company and Executive.

     (f) For purposes of this Agreement, the term “Change of Control” shall be deemed to
have occurred upon the first to occur of the following events:

     (i) any Person becomes the Beneficial Owner, directly or indirectly, of common
stock or voting securities of Huron (not including in the amounts beneficially owned
by such Person any common stock or voting securities acquired directly from Huron or
its Affiliates) representing 40% or more of the combined voting power of Huron’s
then outstanding securities; or

     (ii) there is consummated a merger or consolidation of Huron or any direct or
indirect subsidiary of Huron with any Person, other than (A) a merger or
consolidation which would result in the voting securities of Huron outstanding
immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) at least 50% of the combined voting power of the
securities of Huron or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, (B) a merger or consolidation
effected to implement a recapitalization of Huron (or similar transaction) after
which no Person other than existing security holders is or

 

 

becomes the Beneficial Owner, directly or indirectly, of securities of Huron
(not including in the amount Beneficially Owned by such Person any common stock or
voting securities acquired directly from Huron or its Affiliates) representing 50%
or more of the combined voting power of Huron’s then outstanding securities, or (C)
a merger or consolidation of a subsidiary of Huron that does not represent a sale of
all or substantially all of the assets of Huron; or

     (iii) the shareholders of Huron approve a plan of complete liquidation or
dissolution of Huron (except for a plan of liquidation or dissolution effected to
implement a recapitalization of Huron addressed in (ii) above); or

     (iv) there is consummated an agreement for the sale or disposition of all or
substantially all of the assets of Huron to a Person, other than a sale or
disposition by Huron of all or substantially all of the assets of Huron to an
entity, at least 50% of the combined voting power of the voting securities of which
are owned by shareholders of Huron.

     Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of Huron immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of Huron immediately
following such transaction or series of transactions.

     For purposes of this Change of Control definition, (I) “Beneficial Owner” shall have the
meaning set forth in Rule 13d-3 under the Exchange Act, (II) “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended from time to time, (III) “Person” shall have the
meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that such term shall not include (w) Huron or any of Huron’s direct or
indirect subsidiaries, (x) a trustee or other fiduciary holding securities under an employee
benefit plan of Huron or any of its Affiliates, (y) an underwriter temporarily holding securities
pursuant to an offering of such securities, or (z) a corporation owned, directly or indirectly, by
the stockholders of Huron in substantially the same proportions as their ownership of stock of
Huron and (IV) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section
12 of the Exchange Act.

     (g) For purposes of this Section 5.4 (and distinguished from “Good Reason” provided
under certain other circumstances under this Agreement), the term “CoC Good Reason” means
the occurrence of any of the following within the twenty-four (24) month period following a
Change of Control (or prior to a Change of Control in connection with a Qualifying
Termination) without the express written consent of Executive:

     (i) any material breach by the Company of this Agreement;

     (ii) any material adverse change in the status, responsibilities or position of
Executive;

     (iii) any material reduction in Base Salary, other than in connection with an
across-the-board reduction in Base Salaries applicable in like proportions

 

 

to all similarly-situated executives of the Company and any direct or indirect
parent of the Company;

     (iv) assignment of duties to Executive that are materially inconsistent with
Executive’s position and responsibilities described in this Agreement; and

     (v) requiring Executive to be principally based at any office or location more
than fifty (50) miles from Executive’s current location in Chicago, Illinois.

     The foregoing to the contrary notwithstanding, if Huron is acquired as a subsidiary or
division of a reporting company pursuant to Section 13 and Section 15(d) of the Securities
Exchange Act of 1934, the fact that Executive is not named as the senior-most Human
Resources Executive of the reporting company following the Change of Control shall not, in
and of itself, constitute CoC Good Reason.

     Notwithstanding the foregoing provisions of this paragraph (g), Executive’s termination
of employment shall be considered to be on account of CoC Good Reason only if (A) an event
or condition occurs which satisfies the foregoing provisions of this Section 5.4(g), (B)
Executive provides the Company with written notice pursuant to Section 10.5 that she intends
to resign for CoC Good Reason and such written notice includes (I) a designation of at least
one of Section 5.4(g)(i)-(v) (the “Designated Sections”) which Executive believes is the
basis for CoC Good Reason, and (II) specifically describes the events or conditions
Executive is relying upon to satisfy the requirements of the Designated Sections, (C) as of
the thirtieth (30th) day following the Company’s receipt of such notice from
Executive, such events or conditions have not been corrected in all material respects, and
(D) Executive resigns her employment within sixty (60) days after the date on which
Executive first has actual knowledge of the occurrence of the events or conditions upon
which Executive relies upon to satisfy any of the Designated Sections.

          5.5 General Release. Executive acknowledges and agrees that Executive’s right to
receive severance pay and other benefits (including post-termination equity vesting) pursuant to
Section 5.2 and 5.4 of this Agreement (collectively, the “Severance Benefits”) is contingent upon
Executive’s compliance with the covenants, representations, warranties and agreements set forth in
Section 6 of this Agreement and, except for those payments and benefits required to be made or
provided by law or pursuant to the express terms of a benefit plan (and other than those benefits
to be provided upon death), such Severance Benefits shall be conditioned upon Executive’s execution
and acceptance of the terms and conditions of, and the effectiveness of, a general release in the
standard form used by the Company at the time of Executive’s termination of employment. (the
“Release”); provided, however, that such Release shall not require Executive to relinquish any
rights or claims that (a) arise after her execution of the Release, (b) relate to indemnification
or liability insurance pursuant to the Company’s insurance plans, bylaws or applicable law, or (c)
cannot be waived by law. If Executive fails to comply with the covenants set forth in Section 6 or
if Executive fails to execute the Release or revokes the Release during the seven (7)-day period
following her execution of the Release, then Executive shall not be entitled to any Severance
Benefits. The Company shall provide Executive with the Release within five (5) days following her
termination of employment (or, in the case of

 

 

any benefits relating to a Qualifying Termination occurring prior to a Change of Control,
within five (5) days following the Change of Control). Executive shall be entitled to any such
Severance Benefits only if the Release has been executed, is effective and the applicable
revocation period has expired no later than the date as of which such Severance Benefits are to be
paid (or provided) pursuant to this Agreement and if such requirements are not satisfied, Executive
shall not be entitled to any such Severance Benefits.

     6. Restrictive Covenants and Agreements.

          6.1 Executive’s Acknowledgment. Executive agrees and acknowledges that in order to
assure the Company that it will retain its value and that of the Business as a going concern, it is
necessary that Executive not utilize special knowledge of the Business and its relationships with
customers to compete with the Company. Executive further acknowledges that:

     (a) the Company is and will be engaged in the Business during the Employment Period and
thereafter;

     (b) Executive will occupy a position of trust and confidence with the Company, and
during the Employment Period, Executive will become familiar with the Company’s trade
secrets and with other proprietary and Confidential Information concerning the Company and
the Business;

     (c) the agreements and covenants contained in this Section 6 and Sections 7, 8 and 9
are essential to protect the Company and the confidentiality of its Confidential Information
(defined below) and near permanent client relationships as well as goodwill of the Business
and compliance with such agreements and covenants will not impair Executive’s ability to
procure subsequent and comparable employment; and

     (d) Executive’s employment with the Company has special, unique and extraordinary value
to the Company and the Company would be irreparably damaged if Executive were to provide
services to any person or entity in violation of the provisions of this Agreement.

          6.2 Confidential Information. As used in this Section 6, “Confidential Information”
shall mean the Company’s trade secrets and other non-public information relating to the Company or
the Business, including, without limitation, information relating to financial statements, customer
identities, potential customers, employees, suppliers, acquisition targets, servicing methods,
equipment, programs, strategies and information, analyses, marketing plans and strategies, profit
margins and other information developed or used by the Company in connection with the Business that
is not known generally to the public or the industry and that gives the Company an advantage in the
marketplace. Confidential Information shall not include any information that is in the public
domain or becomes known in the public domain through no wrongful act on the part of Executive.
Executive agrees to deliver to the Company at the termination of Executive’s employment, or at any
other time the Company may request, all memoranda, notes, plans, records, reports and other
documents (including copies thereof and all electronic versions) relating to the Business or the
Company or other forms of Confidential Information which Executive may then possess or have under
Executive’s control.

 

 

          6.3 Non-Disclosure. Executive agrees that during employment with the Company and
thereafter, Executive shall not reveal to any competitor or other person or entity (other than
current employees of the Company) any Confidential Information regarding Clients (as defined
herein) that Executive obtains while performing services for the Company. Executive further agrees
that Executive will not use or disclose any Confidential Information of the Company, other than in
connection with Executive’s work for the Company, until such information becomes generally known in
the industry through no fault of Executive.

          6.4 Non-Solicitation of Clients. Executive acknowledges that Executive will learn and
develop Confidential Information relating to the Company’s Clients and relating to the Company’s
servicing of those Clients. Executive recognizes that the Company’s relationships with its Clients
are extremely valuable to it and that the protection of the Company’s relationships with its
Clients is essential.

     Accordingly, and in consideration of the Company’s employment of Executive and the various
benefits and payments provided in conjunction therewith, Executive agrees that during the
Employment Period and for the longer period (“Restricted Period”) thereafter of (i) the period for
which Executive is entitled to receive severance payments under Section 5.2(a)(i) or, if
applicable, Section 5.4(a)(ii), or (ii) twelve (12) months following any termination of employment
with the Company, Executive will not, whether or not Executive is then self-employed or employed by
another, directly or through another, provide services that are the same or similar to those
services offered for sale and/or under any stage of development by the Company at the time of
Executive’s termination, to any Client of the Company whom Executive:

     (a) obtained as a Client for the Company; or

     (b) consulted with, provided services for, or supervised the provision of services for
during the twelve (12) month period immediately preceding termination of Executive’s
employment; or

     (c) submitted or assisted in the submission of a proposal for the provision of services
during the six (6) month period immediately preceding termination of Executive’s employment.

     “Client” shall mean those persons or firms for whom the Company has either directly or
indirectly provided services within the twenty-four (24)-month period immediately preceding
termination of Executive’s employment and therefore includes both the referral source or entity
that consults with the Company and the entity to which the consultation related. “Client” also
includes those persons or firms to whom Executive has submitted a proposal (or assisted or
participated in the submission of a proposal) to perform services during the six (6) month period
immediately preceding termination of Executive’s employment. For the avoidance of doubt, for
purposes of determining the Restricted Period, the period for which Executive is entitled to
receive severance payments shall be determined based on the period of Base Salary that is to be
paid to Executive as severance payments, regardless of the period over which the severance is
actually paid.

          6.5 Non-Interference with Relationships. Executive shall not at any time during the
Restricted Period directly or indirectly solicit, induce or encourage (a) any executive or employee
or other personnel (including contractors) of the Company, or (b) any customer,

 

 

Client, supplier, lender, professional advisor or other business relation of the Company to
leave, alter or cease his/her/its relationship with the Company, for any reason whatsoever.
Executive shall not hire or assist or participate in the hiring of any executive or employee or
other personnel (including contractors) of the Company for that same time period, whether or not
Executive is then self-employed or employed by another business. Executive shall not at any time
directly or indirectly make disparaging remarks about the Company.

          6.6 Modification. If any court of competent jurisdiction shall at any time deem that
the term of any Restrictive Covenant is too lengthy, or the scope or subject matter of any
Restrictive Covenant exceeds the limitations imposed by applicable law, the parties agree that
provisions of Sections 6.3, 6.4 and 6.5 shall be amended to the minimum extent necessary such that
the provision is enforceable or permissible by such applicable law and be enforced as amended.

          6.7 Representations and Warranties. Executive has made full disclosure to the Company
concerning the existence of, and delivered copies of any documents relating to, any contractual
arrangement (including, but not limited to, any non-compete or non-solicitation agreement) that
Executive has with any current or former employer which agreement purports to be in effect as of
the Effective Date or the dates of Executive’s intended employment with the Company (other than the
Prior Agreement). Executive represents, warrants and covenants to the Company that (a)
Executive is not a party to or bound by any employment agreement, noncompete, nonsolicitation (of
customers or employees), nondisturbance (of customers, employees or vendors), or confidentiality
agreement with any previous employer or any other person or entity that would be violated by
Executive’s acceptance of this position or which would interfere in any material respect with the
performance of Executive’s duties with the Company, (b) that Executive will not use any
confidential information or trade secrets of any person or party other than the Company in
connection with the performance of Executive’s duties with the Company (except as may be permitted
pursuant to non-disclosure agreements with clients), (c) that Executive will not at any time breach
(or threaten to breach) any such agreement with any such previous employer or any other person or
entity during Executive’s employment with the Company and (d) Executive shall not at any time enter
into any modification of any forgoing such agreement or any new agreement with, waive any rights of
Executive under any agreement with, or acknowledge any amounts due from Executive to, Executive’s
previous employer without first obtaining the prior written consent of the Company in its sole
discretion. Executive shall hereafter immediately disclose to the Company any knowledge of
Executive of a possible or potential violation of any forgoing such agreement occurring at any
time.

     7. Ownership of Intellectual Property. All intellectual property, documents, forms,
techniques, methodologies, ideas, inventions, writings, software and Confidential Information
created or conceived by Executive alone or with others while employed with the Company that relate
to the Company’s business or clients or work assigned to Executive by the Company (collectively,
“Materials”) constitute “work made for hire” and are the exclusive property of the Company. If for
any reason any Materials cannot legally constitute a “work made for hire,” then this Agreement
shall operate as an irrevocable assignment and agreement to assign to the Company all right, title
and interest in such Materials. Executive will promptly disclose to the Company in writing all
Materials developed during her employment with the Company, and Executive will execute such
documents as may be necessary to evidence her assignment(s) of all

 

 

right, title and interest in Materials to the Company. If Executive claims ownership in any
intellectual property, ideas or inventions that predate her employment with the Company, then
Executive will disclose such claims in writing to the Company’s Human Resources Department before
commencing any work for the Company.

     8. Effect on Termination. If, for any reason, this Agreement shall terminate or
Executive’s employment with the Company shall terminate, then, notwithstanding such termination,
those provisions contained in this Section 8 and Sections 6, 7, 9 and 10 hereof shall survive and
thereafter remain in full force and effect.

     9. Remedies.

          9.1 Non-Exclusive Remedy for Restrictive Covenants. Executive acknowledges and agrees
that the covenants set forth in Sections 6.3, 6.4, and 6.5 of this Agreement (collectively, the
“Restrictive Covenants”) are reasonable and necessary for the protection of the Company’s business
interests, that irreparable injury will result to the Company if Executive breaches any of the
terms of the Restrictive Covenants, and that in the event of Executive’s actual or threatened
breach of any such Restrictive Covenants, the Company will have no adequate remedy at law.
Executive accordingly agrees that in the event of any actual or threatened breach by Executive of
any of the Restrictive Covenants, the Company shall be entitled to immediate temporary injunctive
and other equitable relief, without the necessity of showing actual monetary damages or the posting
of bond. Nothing contained herein shall be construed as prohibiting the Company from pursuing any
other remedies available to it for such breach or threatened breach, including the recovery of
damages.

          9.2 Arbitration. Except as set forth in Section 9.1, any controversy or claim arising
out of or related to (i) this Agreement, (ii) the breach thereof, (iii) Executive’s employment with
the Company or the termination of such employment, or (iv) Employment Discrimination, shall be
settled by arbitration in Chicago, Illinois before a single arbitrator administered by the American
Arbitration Association (“AAA”) under its National Rules for the Resolution of Employment Disputes,
amended and restated effective as of January 1, 2004 (the “Employment Rules”), and judgment on the
award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
Notwithstanding the foregoing, Rule R-34 of the AAA’s Commercial Arbitration Rules amended and
restated effective as of September 1, 2007 (instead of Rule 27 of the Employment Rules) shall apply
to interim measures. References herein to any arbitration rule(s) shall be construed as referring
to such rule(s) as amended or renumbered from time to time and to any successor rules. References
to the AAA include any successor organization. “Employment Discrimination” means any
discrimination against or harassment of Executive in connection with Executive’s employment with
the Company or the termination of such employment, including any discrimination or harassment
prohibited under federal, state or local statute or other applicable law, including the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disability Act or any similar federal, state or local statute.

     10. Miscellaneous.

 

 

          10.1 Assignment. Executive may not assign any of Executive’s rights or obligations
hereunder without the written consent of the Company. The Company may assign this Agreement
without the consent of Executive. Except as otherwise expressly provided herein, all covenants and
agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and
inure to the benefit of the respective successors and assigns of the parties hereto whether so
expressed or not. In connection with a Change of Control, the Company shall cause a successor to
the Company to explicitly assume and agree to be bound by this Agreement and any such successor
shall explicitly assume and agree to be bound by this Agreement.

          10.2 Severability. Whenever possible, each provision of this Agreement shall 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 prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity and without invalidating the
remainder of this Agreement.

          10.3 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one and the
same Agreement.

          10.4 Descriptive Headings; Interpretation. The descriptive headings in this Agreement
are inserted for convenience of reference only and are not intended to be part of or to affect the
meaning or interpretation of this Agreement. The use of the word “including” in this Agreement
shall be by way of example rather than by limitation.

          10.5 Notices. All notices, demands or other communications to be given under or by
reason of the provisions of this Agreement shall be in writing and shall be deemed to have been
duly given if (a) delivered personally to the recipient, (b) sent to the recipient by reputable
express courier service (charges prepaid) or mailed to the recipient by certified or registered
mail, return receipt requested and postage prepaid, or (c) transmitted by telecopy to the recipient
with a confirmation copy to follow the next day to be delivered by overnight carrier. Such
notices, demands and other communications shall be sent to the addresses indicated below:

	 	 	 

	To the Company:

	 	Huron Consulting Group Inc.

550 West Van Buren Street

Chicago, IL 60607

Attention:     Patricia Olsen

Facsimile:     (312) 880-3250
	 
	 	 
	To Executive:

	 	C. Mark Hussey

4543 Clausen Avenue

Western Springs, IL 60558

or to such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. The date in which such notice shall be
deemed given shall be (w) the date of receipt if personally delivered, (x) three (3) business days
after the date of mailing if sent by certified or registered mail, (y) one business day after the
date

 

 

of delivery to the overnight courier if sent by overnight courier or (z) the next business day
after the date of transmittal by telecopy.

          10.6 Preamble; Preliminary Recitals. The Preliminary Recitals set forth in the
Preamble hereto are hereby incorporated and made part of this Agreement.

          10.7 Taxes. All compensation payable to Executive from the Company shall be subject
to all applicable withholding taxes, normal payroll withholding and any other amounts required by
law to be withheld.

          10.8 Entire Agreement. Except as otherwise expressly set forth herein, this Agreement
sets forth the entire understanding of the parties, and supersedes and preempts all prior oral or
written understandings and agreements with respect to the subject matter hereof, including the
Prior Agreement, as amended.

          10.9 Governing Law. This Agreement shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of
this Agreement shall be governed by, the laws of the State of Illinois without giving effect to
provisions thereof regarding conflict of laws.

          10.10 No Strict Construction. The language used in this Agreement will be deemed to
be the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party hereto.

          10.11 Amendment and Waivers. Any provisions of this Agreement may be amended or
waived only with the prior written consent of the Company and Executive.

          10.12 Additional Section 409A Provisions. Notwithstanding any provision contained in
this Agreement to the contrary, if (a) any payment hereunder is subject to Section 409A of the
Code, (b) such payment is to be paid on account of Executive’s separation from service (within the
meaning of Section 409A of the Code) and (c) Executive is a “specified employee” (within the
meaning of Section 409A(a)(2)(B) of the Code), then such payment shall be delayed, if necessary,
until the first day of the seventh month following Executive’s separation from service (or, if
later, the date on which such payment is otherwise to be paid under this Agreement). With respect
to any payments hereunder that are subject to Section 409A of the Code and that are payable on
account of a separation from service, the determination of whether Executive has had a separation
from service shall be determined in accordance with Section 409A of the Code. It is the intention
of both the Company and Executive that the benefits and rights to which Executive could be entitled
in connection with termination of employment comply with Section 409A of the Code and the Treasury
Regulations and other guidance promulgated or issued thereunder, and the provisions of this
Agreement shall be construed in a manner consistent with that intention. If Executive or the
Company believes, at any time, that any such benefit or right does not so comply, it shall promptly
advise the other and shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Section 409A of the Code (with the most limited
possible economic effect on Executive and on the Company). Neither the Company nor Executive,
individually or in combination, may accelerate any payment or benefit that is subject to Section
409A of the Code, except in compliance with Section 409A and the provisions of this Agreement, and
no amount

 

 

that is subject to Section 409A shall be paid prior to the earliest date on which it may be
paid without violating Section 409A.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates written
below.

	 	 	 	 	 
	 	COMPANY:

HURON CONSULTING GROUP INC.

 	 
	 	By:  	/s/
James H. Roth	 
	 	 	Its: 	CEO	 
	 	 	Date: 	July
11, 2011	 
	 	
C. Mark Hussey 	 
	 	
        /s/
C. Mark Hussey	 
	 	C. Mark Hussey	 
	 	(print name) 	 
	 	
July
7, 2011	 
	 	Date

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