Document:

exv10w2

 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2006-60, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

	 	1.	 	Guarantee.

          (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

          (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

          (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

          (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

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     2. Termination. This Guarantee is a continuing and irrevocable guarantee of the
Guaranteed Amounts now or hereafter existing and shall terminate and be of no further force and
effect with respect to the Funding Agreement and the Notes upon the full payment of the Scheduled
Payments or upon the earlier extinguishment of the obligations of Principal Life under the Funding
Agreement.

     3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

     4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

     5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

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c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

     6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

     7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

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granted, and collateral assignment made, by the Trust to the Indenture Trustee of this
Guarantee, (iii) agrees to make all payments due under this Guarantee to the Collection Account (as
defined in the Indenture) or any other account designated in writing to the Guarantor by the
Indenture Trustee and (iv) agrees to comply with all orders of the Indenture Trustee with respect
to this Guarantee without any further consent from the Trust.

     8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Elizabeth D. Swanson
	 

	 	 	 	 
	 

	 	Name:
	 	Elizabeth D. Swanson
	 

	 	 	 	 
	 

	 	Title:
	 	Counsel
	 

	 	 	 	 
	 

	 	Date:
	 	The Effective Date (as defined in
the Funding Agreement)

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

	 	 	 	 	 
	By:	 	U.S. Bank Trust National Association,  
	 	 	not in its individual capacity, but solely in its
	 	 	capacity as trustee
	 
	 	 	 	 
	By:	 	Bankers Trust Company, N.A.,
	 	 	under Limited Power of Attorney, dated February 16, 2006
	 
	 	 	 	 
	By:

	 	/s/ Diana L. Cook	 	 
	 

	 	 	 	 
	Name:

	 	Diana L. Cook	 	 
	 

	 	 	 	 
	Title:

	 	Vice President	 	 
	 

	 	 	 	 
	Date:	 	The Effective Date (as
defined in the Funding Agreement)

4exv10wh

 

    EXHIBIT 10(h)

 

    DeVry
    Inc.

 

    Incentive
    Plan of 2005

 

    1. Purpose.  The purposes of the
    DeVry Inc. Incentive Plan of 2005 (the “Plan”) are
    (i) to encourage outstanding individuals to accept or
    continue employment with DeVry Inc. (“DeVry” or the
    “Company”) and its subsidiaries or to serve as
    directors of DeVry, and (ii) to furnish maximum incentive
    to those persons to improve operations and increase profits and
    to strengthen the mutuality of interest between those persons
    and DeVry’s stockholders by providing them stock options
    and other stock and cash incentives.

 

    2. Administration.  The Plan will
    be administered by the Compensation Committee (the
    “Committee”) of the DeVry Board of Directors, which
    consists of two or more directors as the Board may designate
    from time to time, each of whom shall satisfy such requirements
    as:

 

    (a) the Securities and Exchange Commission may establish
    for administrators acting under plans intended to qualify for
    exemption under
    Rule 16b-3
    or its successor under the Securities Exchange Act of 1934 (the
    “Exchange Act”);

 

    (b) the New York Stock Exchange may establish pursuant to
    its rule-making authority; and

 

    (c) the Internal Revenue Service may establish for outside
    directors acting under plans intended to qualify for exemption
    under Section 162(m) of the Internal Revenue Code of 1986,
    as amended (the “Code”).

 

    The Committee shall have the authority to construe and interpret
    the Plan and any awards granted thereunder, to establish and
    amend rules for Plan administration, to change the terms and
    conditions of options and other awards at or after grant, and to
    make all other determinations which it deems necessary or
    advisable for the administration of the Plan. The determinations
    of the Committee shall be made in accordance with their judgment
    as to the best interests of DeVry and its stockholders and in
    accordance with the purposes of the Plan. A majority of the
    members of the Committee shall constitute a quorum, and all
    determinations of the Committee shall be made by a majority of
    its members. Any determination of the Committee under the Plan
    may be made without notice or meeting of the Committee, in
    writing signed by all the Committee members. The Committee shall
    authorize the Company’s chief executive officer (the
    “CEO”) or one or more other officers of the Company to
    (i) select employees to participate in the Plan,
    (ii) determine, from the total number of option shares and
    other awards approved by the Committee, the number of option
    shares and other awards to be granted to such participants, and
    (iii) determine the applicable terms and conditions of such
    awards, except in each case with respect to awards to officers
    subject to Section 16 of the Exchange Act or officers who
    are or may become “covered employees” within the
    meaning of Section 162(m) of the Code (“Covered
    Employees”). Any reference in the Plan to the Committee
    (other than in Section 19) shall include such
    authorized officer or officers. The CEO or such other officer(s)
    authorized to select employees to receive such option shares and
    other awards shall provide written notice of all such action to
    the Committee.

 

    3. Participants.  Participants may
    consist of all employees of DeVry and its subsidiaries and all
    non-employee directors of DeVry. Any corporation or other entity
    in which a 50% or greater interest is at the time directly or
    indirectly owned by DeVry shall be a subsidiary for purposes of
    the Plan. Designation of a participant in any year shall not
    require the Committee to designate that person to receive an
    award in any other year or to receive the same type or size of
    award as granted to the participant in any other year or as
    granted to any other participant in any year. The Committee or,
    if authorized pursuant to Section 2 hereof, the CEO or one
    or more other officers of the Company shall consider all factors
    deemed relevant in selecting participants and in determining the
    type and amount of their respective awards.

 

    4. Shares Available under the
    Plan.  There is hereby reserved for issuance
    under the Plan an aggregate of 3 million shares of DeVry
    common stock. If there is (i) a lapse, expiration,
    termination or cancellation of any Stock Option or other award
    prior to the issuance of shares thereunder or (ii) a
    forfeiture of any shares of restricted stock or shares subject
    to stock awards prior to vesting, the shares subject to these
    options or other awards shall be added to the shares available
    for awards under the Plan. Shares covered by an award granted
    under the Plan shall not be counted as used unless and until
    they are actually issued and delivered to a participant. Any
    shares covered by a Stock Appreciation Right shall be counted as
    used only to the extent shares are actually issued to the
    participant

    

    100

 

    upon exercise of the right. In addition, any shares covered by
    an award which is settled in cash, shall be added to the shares
    available for awards under the Plan. All shares issued under the
    Plan may be either authorized and unissued shares or issued
    shares reacquired by DeVry. Under the Plan, no participant may
    receive in any fiscal year (i) Stock Options relating to
    more than 150,000 shares, (ii) Restricted Stock or
    Restricted Stock Units relating to more than 50,000 shares,
    (iii) Stock Appreciation Rights relating to more than
    125,000 shares, or (iv) Performance Shares relating to
    more than 50,000 shares. No non-employee director may
    receive in any fiscal year Stock Options relating to more than
    15,000 shares or Restricted Stock Units relating to more
    than 5,000 shares. The shares reserved for issuance and the
    limitations set forth above shall be subject to adjustment in
    accordance with Section 15 hereof. All of the available
    shares may, but need not, be issued pursuant to the exercise of
    Incentive Stock Options. Notwithstanding anything else contained
    in this Section 4 the number of shares that may be issued
    under the Plan for awards other than Stock Options or Stock
    Appreciation Rights shall not exceed a total of 2 million
    shares (subject to adjustment in accordance with Section 15
    hereof).

 

    5. Types of Awards.  Awards under
    the Plan shall consist of Stock Options, Stock Appreciation
    Rights, Restricted Stock, Restricted Stock Units, Performance
    Stock, Performance Cash Awards, Annual Management Incentive
    Awards and Other Stock or Cash Awards, all as described below.

 

    6. Stock Options.  Stock Options
    may be granted to participants, at any time as determined by the
    Committee. The Committee or, if authorized pursuant to
    Section 2 hereof, the CEO or one or more other officers of
    the Company shall determine the number of shares subject to each
    option and whether the option is an Incentive Stock Option. The
    option price for each option shall be determined by the
    Committee, but shall not be less than 100% of the fair market
    value of DeVry’s common stock on the date the option is
    granted. Each option shall expire at such time as the Committee
    shall determine at the time of grant. Options shall be
    exercisable at such time and subject to such terms and
    conditions as the Committee shall determine; provided, however,
    that no option shall be exercisable later than the tenth
    anniversary of its grant. The option price, upon exercise of any
    option, shall be payable to DeVry in full by (a) cash
    payment or its equivalent, (b) tendering previously
    acquired shares having a fair market value at the time of
    exercise equal to the option price or certification of ownership
    of such previously-acquired shares, (c) delivery of a
    properly executed exercise notice, together with irrevocable
    instructions to a broker to promptly deliver to DeVry the amount
    of sale proceeds from the option shares or loan proceeds to pay
    the exercise price and any withholding taxes due to DeVry, and
    (d) such other methods of payment as the Committee, at its
    discretion, deems appropriate. In no event shall the Committee
    cancel any outstanding Stock Option for the purpose of reissuing
    the option to the participant at a lower exercise price or
    reduce the option price of an outstanding option.

 

    7. Stock Appreciation
    Rights.  Stock Appreciation Rights
    (“SARs”) may be granted to participants at any time as
    determined by the Committee. The Committee or, if authorized
    pursuant to Section 2 hereof, the CEO or one or more other
    officers of the Company shall determine the number of SARs to be
    granted to each participant. A SAR may be granted in tandem with
    a Stock Option granted under this Plan or on a free-standing
    basis. The grant price of a tandem SAR shall be equal to the
    option price of the related option. The grant price of a
    free-standing SAR shall be equal to the fair market value of
    DeVry’s common stock on the date of its grant. A SAR may be
    exercised upon such terms and conditions and for the term as the
    Committee in its sole discretion determines; provided, however,
    that the term shall not exceed the option term in the case of a
    tandem SAR or ten years in the case of a free-standing SAR. Upon
    exercise of a SAR, the participant shall be entitled to receive
    payment from DeVry in an amount determined by multiplying the
    excess of the fair market value of a share of common stock on
    the date of exercise over the grant price of the SAR by the
    number of shares with respect to which the SAR is exercised. The
    payment may be made in cash or stock, at the discretion of the
    Committee. In no event shall the Committee cancel any
    outstanding SAR for the purpose of reissuing the right to the
    participant at a lower exercise price or reduce the exercise
    price of an outstanding SAR.

 

    8. Restricted Stock and Restricted Stock
    Units.  Restricted Stock and Restricted Stock
    Units may be awarded to participants under such terms and
    conditions as shall be established by the Committee. The
    Committee or, if authorized pursuant to Section 2 hereof,
    the CEO or one or more other officers of the Company shall
    determine the amount or number of Restricted Stock and
    Restricted Stock Units to be granted to each participant.
    Restricted Stock Units provide participants the right to receive
    shares at a future date upon the attainment of certain
    conditions

    

    101

 

    specified by the Committee. Restricted Stock and Restricted
    Stock Units shall be subject to such restrictions and conditions
    as the Committee determines, including, without limitation, any
    of the following:

 

    (a) a prohibition against sale, assignment, transfer,
    pledge, hypothecation or other encumbrance for a specified
    period;

 

    (b) a requirement that the holder forfeit such shares or
    units in the event of termination of employment during the
    period of restriction; or

 

    (c) the attainment of performance goals described in
    Section 13 hereof.

 

    All restrictions shall expire at such times as the Committee
    shall specify.

 

    9. Performance Stock.  The
    Committee or, if authorized pursuant to Section 2 hereof,
    the CEO or one or more other officers of the Company shall
    designate the participants to whom performance stock
    (“Performance Stock”) is to be awarded and determine
    the number of shares, the length of the performance period and
    the other terms and conditions of each such award; provided the
    stated performance period will not be less than 12 months.
    Each award of Performance Stock shall entitle the participant to
    a payment in the form of shares of common stock upon the
    attainment of performance goals and other terms and conditions
    specified by the Committee.

 

    Notwithstanding satisfaction of any performance goals, the
    number of shares issued under a Performance Stock award may be
    adjusted by the Committee on the basis of such further
    consideration as the Committee in its sole discretion shall
    determine. However, the Committee may not, in any event,
    increase the number of shares earned upon satisfaction of any
    performance goal by any participant who is a Covered Employee.
    The Committee may, in its discretion, make a cash payment equal
    to the fair market value of shares of common stock otherwise
    required to be issued to a participant pursuant to a Performance
    Stock award.

 

    10. Performance Cash Awards.  The
    Committee or, if authorized pursuant to Section 2 hereof,
    the CEO or one or more other officers of the Company shall
    designate the participants to whom Performance Cash Awards
    (“Performance Cash Awards”) are to be awarded and
    determine the number of units and the terms and conditions of
    each such award; provided the stated performance period will not
    be less than 12 months. Each Performance Cash Award shall
    entitle the participant to a payment in cash upon the attainment
    of performance goals and other terms and conditions specified by
    the Committee.

 

    Notwithstanding the satisfaction of any performance goals, the
    amount to be paid under a Performance Cash Award may be adjusted
    by the Committee on the basis of such further consideration as
    the Committee in its sole discretion shall determine. However,
    the Committee may not, in any event, increase the amount earned
    under Performance Cash Awards upon satisfaction of any
    performance goal by any participant who is a Covered Employee
    and the maximum amount earned by a Covered Employee in any
    fiscal year may not exceed $1,000,000. The Committee may, in its
    discretion, substitute actual shares of common stock for the
    cash payment otherwise required to be made to a participant
    pursuant to a Performance Cash Award.

 

    11. Annual Management Incentive
    Awards.  The Committee may designate DeVry
    executive officers who are eligible to receive a monetary
    payment in any fiscal year based on a percentage of an incentive
    pool equal to 5% of DeVry’s consolidated operating earnings
    for the fiscal year. The Committee shall allocate an incentive
    pool percentage to each designated participant for each fiscal
    year. In no event may the incentive pool percentage for any one
    participant exceed 20% of the total pool. Consolidated operating
    earnings shall mean the consolidated earnings before income
    taxes of the Company, computed in accordance with generally
    accepted accounting principles, but shall exclude the effects of
    Special Items. Special Items shall include (i) gains or
    losses on the disposition of a business, (ii) changes in
    tax or accounting regulations or laws, or (iii) the effect
    of a merger or acquisition, as determined in accordance with
    generally accepted accounting principles.

 

    As soon as possible after the determination of the incentive
    pool for a fiscal year, the Committee shall calculate the
    participant’s allocated portion of the incentive pool based
    upon the percentage established at the beginning of the fiscal
    year. The participant’s incentive award then shall be
    determined by the Committee based on the participant’s
    allocated portion of the incentive pool subject to adjustment in
    the sole discretion of the Committee. In no event may the
    portion of the incentive pool allocated to a participant who is
    a Covered Employee be increased in any way, including as a
    result of the reduction of any other participant’s
    allocated portion.

    

    102

 

    12. Other Stock or Cash Awards.  In
    addition to the incentives described in sections 6 through
    11 above, the Committee may grant other incentives payable in
    cash or in common stock under the Plan as it determines to be in
    the best interests of DeVry and subject to such other terms and
    conditions as it deems appropriate; provided an outright grant
    of stock will not be made unless it is offered in exchange for
    cash compensation that has otherwise already been earned by the
    recipient.

 

    13. Performance Goals.  Awards of
    Restricted Stock, Restricted Stock Units, Performance Stock,
    Performance Cash Awards and other incentives under the Plan
    shall be made subject to the attainment of performance goals
    relating to one or more business criteria within the meaning of
    Section 162(m) of the Code, including, but not limited to,
    cash flow; cost; ratio of debt to debt plus equity; profit
    before tax; economic profit; earnings before interest and taxes;
    earnings before interest, taxes, depreciation and amortization;
    earnings per share; operating earnings; economic value added;
    ratio of operating earnings to capital spending; free cash flow;
    net profit; net sales; sales growth; price of DeVry common
    stock; return on net assets, equity or stockholders’
    equity; market share; or total return to stockholders
    (“Performance Criteria”). Awards of Stock Options
    under the Plan may be made subject to attainment of such
    performance goals. Any Performance Criteria may be used to
    measure the performance of the Company as a whole or any
    business unit of the Company and may be measured relative to a
    peer group or index. Any Performance Criteria may include or
    exclude Special Items (as defined in section 11 above). In
    all other respects, Performance Criteria shall be calculated in
    accordance with the Company’s financial statements,
    generally accepted accounting principles, or under a methodology
    established by the Committee prior to the issuance of an award
    which is consistently applied and identified in the audited
    financial statements, including footnotes, or the Management
    Discussion and Analysis section of the Company’s annual
    report. However, the Committee may not in any event increase the
    amount of compensation payable to a Covered Employee upon the
    attainment of a performance goal.

 

    14. Change in Control.  Except as
    otherwise determined by the Committee at the time of grant of an
    award, upon a Change in Control of DeVry, all performance goals
    shall be deemed achieved at target levels and all other terms
    and conditions met; all outstanding Stock Options and SARs shall
    become vested and exercisable; all restrictions on Restricted
    Stock and Restricted Stock Units shall lapse; all Performance
    Stock shall be delivered; all Performance Cash Awards and
    Restricted Stock Units shall be paid out as promptly as
    practicable; all Annual Management Incentive Awards shall be
    paid out based on the consolidated operating earnings of the
    immediately preceding year or such other method of payment as
    may be determined by the Committee at the time of award or
    thereafter but prior to the Change in Control; and all Other
    Stock or Cash Awards shall be delivered or paid. A “Change
    in Control” shall mean:

 

    (i) the sale or disposition by the Company of all or
    substantially all of the assets of the Company (or any
    transaction having a similar effect);

 

    (ii) the consummation of a merger or consolidation of the
    Company with any other entity other than (A) a merger or
    consolidation which would result in the voting interests of the
    Company outstanding immediately prior thereto continuing to
    represent (either by remaining outstanding or by being converted
    into voting interests of the surviving entity) at least 50% of
    the combined voting power of the voting interests of the Company
    or such surviving entity outstanding immediately after such
    merger or consolidation, or (B) a merger or consolidation
    effected to implement a recapitalization of the Company (or
    similar transaction); or

 

    (iii) the acquisition, other than from the Company, by any
    individual, entity or group (within the meaning of
    Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
    of 1934, as amended (the “Exchange Act”)), of
    beneficial ownership (within the meaning of
    Rule 13d-3
    promulgated under the Exchange Act) of 25% or more of the then
    outstanding voting interests of the Company but excluding, for
    this purpose, any such acquisition by the Company or any of its
    affiliates, or by any employee benefit plan (or related trust)
    of the Company or any of its affiliates.

 

    15. Adjustment Provisions.  

 

    (a) In the event of any change affecting the shares of
    DeVry Common Stock by reason of stock dividend, stock split,
    reverse stock split, spin-off, recapitalization, merger,
    consolidation, reorganization, share combination, exchange of
    shares, stock rights offering, liquidation, extraordinary cash
    dividend, disaffiliation of a subsidiary or

    

    103

 

    similar event, the Committee shall make such adjustments (if
    any) as it deems appropriate and equitable, in its discretion,
    to outstanding awards to reflect such event, including without
    limitation, (1) adjustments in the aggregate number or
    class of shares which may be distributed under the Plan, the
    maximum number of shares which may be made subject to an award
    in any year and in the number, class and option price or other
    price of shares subject to the outstanding awards granted under
    the Plan; (2) the substitution of other property
    (including, without limitation, other securities) for the stock
    covered by outstanding awards; and (3) in connection with
    any disaffiliation of a subsidiary, arrangement for the
    assumption, or replacement with new awards, of awards held by
    participants employed by the affected subsidiary by the entity
    that controls the subsidiary following the disaffiliation.

 

    (b) In the event of any merger, consolidation or
    reorganization of DeVry with or into another corporation which
    results in the outstanding common stock of DeVry being converted
    into or exchanged for different securities, cash or other
    property, or any combination thereof, there shall be
    substituted, on an equitable basis as determined by the
    Committee in its discretion, for each share of common stock then
    subject to an award granted under the Plan, the number and kind
    of shares of stock, other securities, cash or other property to
    which holders of common stock of DeVry will be entitled pursuant
    to the transaction.

 

    16. Substitution and Assumption of
    Awards.  The Board of Directors or the
    Committee may authorize the issuance of awards under this Plan
    in connection with the assumption of, or substitution for,
    outstanding awards previously granted to individuals who become
    employees of DeVry or any subsidiary as a result of any merger,
    consolidation, acquisition of property or stock, or
    reorganization other than a Change in Control, upon such terms
    and conditions as the Committee may deem appropriate.

 

    17. Nontransferability.  Each award
    granted under the Plan shall not be transferable otherwise than
    by will or the laws of descent and distribution and each Stock
    Option and SAR shall be exercisable during the
    participant’s lifetime only by the participant or, in the
    event of disability, by the participant’s personal
    representative. In the event of the death of a participant,
    exercise of any award or payment with respect to any award shall
    be made only by or to the executor or administrator of the
    estate of the deceased participant or the person or persons to
    whom the deceased participant’s rights under the award
    shall pass by will or the laws of descent and distribution.
    Notwithstanding the foregoing, at its discretion, the Committee
    may permit the transfer of a Stock Option by the participant, on
    a general or specific basis, subject to such terms and
    conditions as may be established by the Committee.

 

    18. Taxes.  DeVry shall be entitled
    to withhold the amount of any tax attributable to any amounts
    payable or shares deliverable under the Plan, after giving the
    person entitled to receive such payment or delivery notice and
    DeVry may defer making payment or delivery as to any award, if
    any such tax is payable until indemnified to its satisfaction. A
    participant may pay all or a portion of any required withholding
    taxes arising in connection with the exercise of a Stock Option
    or SAR or the receipt of shares hereunder by electing to have
    DeVry withhold shares of common stock, having a fair market
    value equal to the amount required to be withheld.

 

    19. Duration, Amendment and
    Termination.  No award shall be granted more
    than ten years after the date of adoption of this Plan by the
    Board of Directors; provided, however, that the terms and
    conditions applicable to any award granted on or before such
    date may thereafter be amended or modified by mutual agreement
    between DeVry and the participant, or such other person as may
    then have an interest therein. The Board of Directors or the
    Committee may amend the Plan from time to time or terminate the
    Plan at any time. However, no such action shall reduce the
    amount of any existing award or change the terms and conditions
    thereof without the participant’s consent. No material
    amendment of the Plan shall be made without stockholder approval.

 

    20. Fair Market Value.  The fair
    market value of DeVry’s common stock at any time shall be
    determined in such manner as the Committee may deem equitable,
    or as required by applicable law or regulation.

 

    21. Other Provisions.  

 

    (a) Any award under the Plan may also be subject to other
    provisions (whether or not applicable to an award granted to any
    other participant) as the Committee determines appropriate,
    including provisions intended to comply with federal or state
    securities laws and stock exchange requirements, understandings
    or conditions as to the participant’s employment,
    requirements or inducements for continued ownership of common
    stock after exercise or vesting of awards, forfeiture of awards
    in the event of termination of employment shortly after exercise
    or vesting,

    

    104

 

    or breach of noncompetition or confidentiality agreements
    following termination of employment, or provisions permitting
    the deferral of the receipt of an award for such period and upon
    such terms as the Committee shall determine.

 

    (b) In the event any award under this Plan is granted to an
    employee who is employed or providing services outside the
    United States and who is not compensated from a payroll
    maintained in the United States, the Committee may, in its sole
    discretion, modify the provisions of the Plan as they pertain to
    such individuals to comply with applicable law, regulation or
    accounting rules.

 

    (c) The Committee, in its sole discretion, may require a
    participant to have amounts or shares of common stock that
    otherwise would be paid or delivered to the participant as a
    result of the exercise or settlement of an award under the Plan
    credited to a deferred compensation or stock unit account
    established for the participant by the Committee on the
    Company’s books of account.

 

    22. Governing Law.  The Plan and
    any actions taken in connection herewith shall be governed by
    and construed in accordance with the laws of the state of
    Delaware (without regard to applicable Delaware principles of
    conflict of laws).

 

    23. Stockholder Approval.  The Plan
    was adopted by the Board of Directors on September 13,
    2005, subject to stockholder approval. The Plan and any awards
    granted thereunder shall be null and void if stockholder
    approval is not obtained at the next annual meeting of
    stockholders.

 

    As Amended, May 22, 2006

    

    105

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