Document:

Summary of Certain Director and Executive Compensation

 Exhibit 10.24 
 Description of ITT Educational Services, Inc.’s Payment of 2010 Bonus Compensation, 2011 
 Special Bonus, 2011 Executive Salaries, 2011 Executive Perquisites and 2011 Director 
 Compensation 
 Payment of 2010 Bonus Compensation 

On January 17, 2011, the Compensation Committee of our Board of Directors approved the payment of a 2010 annual bonus award in cash
to each of our named executive officers, as follows: 
  

					
	 Named Executive Officer
	  	2010 Annual Bonus Amount	 
	 Kevin M. Modany
	  	$	480,625	  
	 Daniel M. Fitzpatrick
	  	$	131,625	  
	 Clark D. Elwood
	  	$	129,594	  
	 Eugene W. Feichtner
	  	$	110,625	  
	 June M. McCormack
	  	$	98,625	  

 2011 Special Bonus

 On December 21, 2010, the Compensation Committee of our Board of Directors approved the payment of a special bonus in
cash to each of our named executive officers, which bonus is payable on or before June 30, 2011 if the named executive officer is still employed by us on June 27, 2011, as follows: Kevin M. Modany $1,153,500; Daniel M. Fitzpatrick
$324,000; Clark D. Elwood $319,000; Eugene W. Feichtner $295,000; and June M. McCormack $263,000. The Committee determined to award the special bonuses in order to help motivate and retain those executives, as well as to recognize their
extraordinary efforts during a particularly difficult regulatory and legislative environment affecting us and our industry. 
 2011
Executive Salaries 
 On January 17, 2011, the Compensation Committee of our Board of Directors authorized a salary
increase for our named executive officers effective March 28, 2011. The following table sets forth the annualized base salary information for each of our named executive officers as of March 28, 2011: 

 

					
	 Named Executive Officer
	  	2011 Annualized Base Salary	 
	 Kevin M. Modany
	  	$	788,250	  
	 Daniel M. Fitzpatrick
	  	$	332,000	  
	 Clark D. Elwood
	  	$	327,000	  
	 Eugene W. Feichtner
	  	$	302,500	  
	 June M. McCormack
	  	$	270,000	  

 2011 Executive Perquisites

 On January 17, 2011, the Compensation Committee of our Board of Directors also approved the following executive
perquisites in 2011 for our named executive officers: 
  

	 	•	 	 for Mr. Modany, the use of a company car; 

  

	 	•	 	 for Mr. Modany, an allowance to be used for tax return preparation and financial planning of up to 2% of annualized base salary as of
March 28, 2011; 

  

	 	•	 	 for Messrs. Fitzpatrick, Elwood and Feichtner and Ms. McCormack, an allowance to be used for tax return preparation and financial planning of up
to 1% of annualized base salary as of March 28, 2011; and 

  

	 	•	 	 for each of our named executive officers: 

  

	 	•	 	 tickets to sporting, theater and other events; 

  

	 	•	 	 enhanced disability benefits; and 

  

	 	•	 	 an annual physical examination. 

 The aggregate incremental cost to us in 2011 for providing all of the 2011 perquisites described above is
not expected to exceed $125,000. 
 2011 Director Compensation 

The compensation for non-employee Directors on our Board of Directors in 2011 consists of: 

 

	 	•	 	 an annual retainer of $60,000 payable in one installment on January 1, 2011, at the election of each non-employee Director, in cash or shares of
our common stock in increments of 25% each; 

  

	 	•	 	 no separate meeting fees; 

  

	 	•	 	 a grant under the 2006 ITT Educational Services, Inc. Equity Compensation Plan of restricted stock units (“RSUs”) with a time-based period of
restriction that: 

  

	 	•	 	 has a value of $100,000, plus the value associated with any fractional RSU necessary to cause the grant to be for a whole number of RSUs, pursuant to
which the value is determined based on the closing market price of a share of our common stock on the effective date of the grant; 

  

	 	•	 	 is effective on the tenth business day following our 2011 Annual Meeting of Shareholders; 

 

	 	•	 	 has a time-based period of restriction of three years; and 

 

	 	•	 	 is settled on the first business day following the last day of the period of restriction by the delivery of one share of our common stock for each RSU
in the grant. 

 We also reimburse Directors for reasonable, out-of-pocket travel expense related to attending our Board of
Directors and its committee meetings and other business of the Board.Third Amendment to 2006 Equity Compensation Plan

 Exhibit 10.32 
 THIRD AMENDMENT TO THE 
 2006 ITT EDUCATIONAL SERVICES, INC. EQUITY
COMPENSATION PLAN 
 WHEREAS, the shareholders of ITT Educational Services, Inc. (the “Company”) approved the 2006
ITT Educational Services, Inc. Equity Compensation Plan (the “Plan”) on May 9, 2006; and 
 WHEREAS, the Plan was
subsequently amended by a First Amendment, which was adopted by the Board of Directors of the Company on October 24, 2006, in certain respects not requiring shareholder approval; and 

WHEREAS, the Plan was further amended by a Second Amendment, which was adopted by the Board of Directors of the Company on July 24,
2007, in certain respects not requiring shareholder approval; and 
 WHEREAS, the Board of Directors of the Company desires to
further amend the Plan in certain respects that do not require shareholder approval. 
 NOW, THEREFORE, the Plan is hereby
amended as follows: 
 1. Subsection 2(ii) of the Plan is hereby amended to read as follows: 

(ii) [Reserved] 
 2. Subsection 7(h) of the Plan is hereby amended to read as follows: 
 (h) Termination for Death or Disability. Upon a Participant’s death or Disability, the following rules apply: 

(i) All of the Participant’s Options with time-based vesting provisions will become immediately exercisable and
will remain exercisable until the earlier of the following two dates: 
 (A) the date three (3) years after the date
of the Participant’s death or Disability; or 
 (B) the date the Options expire in accordance with their terms. 

(ii) All of the Participant’s Options with performance-based vesting provisions are subject to the following two
rules: 
 (A) the Participant will forfeit all such Options that are not exercisable as of the date of the
Participant’s death or Disability; and 
 (B) Options that were exercisable as of the date of the Participant’s
death or Disability will remain exercisable until the earlier of (I) the date three (3) years after the date of the Participant’s death or Disability, or (II) the date the Options expire in accordance with their terms. 

 3. Subsection 7(i) of the Plan is hereby amended to read as follows: 

(i) Other Terminations Without Cause. Upon termination by the Company of employment or service without Cause,
or upon termination of employment or service by the Participant for a reason other than death or Disability, the following rules apply: 
 (i) A Participant will forfeit all of his or her Options that had not yet become exercisable as of the date of the Participant’s termination. 

(ii) Options that were exercisable as of the date of the Participant’s termination will remain exercisable until
the earlier of (i) the date 90 days after the date of termination, or (ii) the date the Options expire in accordance with their terms. 
 4. Subsection 8(h) of the Plan is hereby amended to read as follows: 
 (h) Termination for Death or Disability. Upon a Participant’s death or Disability, the following rules apply: 

(i) All of the Participant’s SARs with time-based vesting provisions will become immediately exercisable and
will remain exercisable until the earlier of the following two dates: 
 (A) the date three (3) years after the date
of the Participant’s death or Disability; or 
 (B) the date the SARs expire in accordance with their terms. 

(ii) All of the Participant’s SARs with performance-based vesting provisions are subject to the following two
rules: 
 (A) a Participant will forfeit all such SARs that are not exercisable as of the date of the Participant’s
death or Disability; and 
 (B) SARs that were exercisable as of the date of the Participant’s death or Disability
will remain exercisable until the earlier of (I) the date three (3) years after the date of the Participant’s death or Disability, or (II) the date the SARs expire in accordance with their terms. 

5. Subsection 8(i) of the Plan is hereby amended to read as follows: 

(i) Other Terminations Without Cause. Upon termination by the Company of the Participant’s employment or
service without Cause, or upon termination of employment or service by the Participant for a reason other than death or Disability, the following rules apply: 
 (i) A Participant will forfeit all of his or her SARs that had not yet become exercisable as of the date of the Participant’s termination. 

(ii) SARs that were exercisable as of the date of the Participant’s termination will remain exercisable until
the earlier of (i) the date 90 days after the date of termination, or (ii) the date the SARs expire in accordance with their terms. 
 6. Subsection 9(c)(i) of the Plan is hereby amended to read as follows: 
 (i) Time-Based Period of Restriction: Any Period of Restriction for an Award of Restricted Stock that is based solely on the passage of time will not be less than one (1) year, which period may,
at the discretion of the Committee, lapse on a pro-rated, graded or cliff basis (as specified in an Award Agreement). 

 7. Subsection 10(d)(i) of the Plan is hereby amended to read as follows: 

(i) Time-Based Period of Restriction: Any Period of Restriction for an Award of Restricted Stock Units that is based
solely on the passage of time will not be less than one (1) year, which period may, at the discretion of the Committee, lapse on a pro-rated, graded or cliff basis (as specified in an Award Agreement). 

8. Subsection 10(e) of the Plan is hereby amended to read as follows: 

(e) Form and Timing of Settlement. Except as otherwise provided in Section 19 or a Participant’s
Award Agreement, settlement and payment of Restricted Stock Units will be made at a specified settlement date that will not be earlier than the last day of the Period of Restriction. The Committee, in its sole discretion, may elect to settle earned
Restricted Stock Units from among the following alternatives: (i) by delivery of Shares; (ii) by payment in cash of an amount equal to the Fair Market Value of the Shares on the settlement date or equal to the average of the Fair Market
Value of the Shares over a specified number of days prior to the settlement date, as determined by the Committee and specified in the Award Agreement; or (iii) by a combination of (i) and (ii). The Committee’s election with respect to
such form of settlement will be specified in the Award Agreement entered into effective on the grant date of the Award. 
 9.
Subsection 10(g) of the Plan is hereby amended to read as follows: 
 (g) Termination of Employment or
Service. Notwithstanding subsection (d) above: 
 (i) With respect to an Award of Restricted Stock
Units with a time-based Period of Restriction, (A) upon termination of a Participant’s employment or service due to death or Disability, the Period of Restriction with respect to such Restricted Stock Units will lapse immediately, and the
Restricted Stock Units will be settled immediately thereafter, and (B) upon termination of a Participant’s employment or service for any reason other than death or Disability, the Participant will forfeit immediately after the termination
of employment or service all of his or her Restricted Stock Units that are unvested as of the date of termination of employment or service. 
 (ii) With respect to an Award of Restricted Stock Units with a performance-based Period of Restriction, upon termination of a Participant’s employment or service for any reason, the Participant
will forfeit immediately after the termination of employment or service all of his or her Restricted Stock Units that are unvested as of the date of termination of employment or service. 

10. Subsection 11(d) of the Plan is hereby amended to read as follows: 

(d) Form and Timing of Payment. As soon as practicable following the completion of the
Performance Period applicable to outstanding Performance Shares, the Committee will certify in writing the extent to which the applicable Performance Measures have been attained and the resulting final value of the Award earned by the Participant
and to be paid upon its settlement. By the fifteenth
(15th) day of the third (3rd) month following the completion of the Performance Period
applicable to outstanding Performance Shares, payment will be made to each eligible Participant of the final value of the Performance Shares. The Committee, in its sole discretion, may elect to settle earned Performance Shares from among the
following alternatives: (i) by delivery of Shares; (ii) by payment in cash of an amount equal to the Fair Market Value of the Shares on the settlement date or equal to 

 
the average of the Fair Market Value of the Shares over a specified number of days prior to the settlement date, as determined by the Committee and specified in the Award Agreement; or
(iii) by a combination of (i) and (ii). The Committee’s election with respect to such form of settlement will be specified in the Award Agreement entered into effective on the grant date of the Award. 

11. Subsection 12(d) of the Plan is hereby amended to read as follows: 

(d) Form and Timing of Payment. As soon as practicable following the completion of the
Performance Period applicable to outstanding Performance Units, the Committee will certify in writing the extent to which the applicable Performance Measures have been attained and the resulting final value of the Award earned by the Participant and
to be paid upon its settlement. By the fifteenth
(15th) day of the third (3rd) month following the completion of the Performance Period
applicable to outstanding Performance Units, payment shall be made to each eligible Participant of the final value of the Performance Units. The Committee, in its sole discretion, may elect to settle earned Performance Units from among the following
alternatives: (i) in cash; (ii) in Shares that have an aggregate Fair Market Value (determined as of the settlement date or based on the average of the Fair Market Value of the Shares over a specified number of days prior to the settlement
date, as determined by the Committee and specified in the Award Agreement) equal to the value of the earned Performance Units; or (iii) in a combination of (i) and (ii). The Committee’s election with respect to such form of settlement
will be specified in the Award Agreement entered into effective on the grant date of the Award. 
 12. Subsection 13(b) of the
Plan is hereby amended to read as follows: 
 (b) Period of Restriction. Except as otherwise provided
in a Participant’s Award Agreement, upon a termination of employment or service or pursuant to Section 19 in the event of a Change in Control or Subsidiary Disposition, Other Stock-Based Awards granted pursuant to this Section 13 will
have a minimum Period of Restriction of one (1) year, which period may, in the Committee’s discretion, lapse on a pro-rated, graded, or cliff basis (as specified in an Award Agreement). Notwithstanding the above, an Award of payment in
Shares in lieu of cash under other Company incentive or bonus programs, or Awards under Section 13(d), will not be subject to the minimum Period of Restriction limitation described above. 

13. This Third Amendment to the Plan shall become effective upon its adoption by the Board of Directors of the Company. 

 

			
		 	Adopted by the Board of Directors of ITT Educational Services, Inc. on November 24, 2010, except for Sections 8, 10 and 11 which were adopted on January 17,
2011

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