Document:

Exhibit
10.17

     

    
      ARTIO
GLOBAL INVESTORS INC.

      MANAGEMENT
INCENTIVE PLAN

       

      

       

      1.           Purpose.  The
purpose of the Artio Global Investors Inc. Management Incentive Plan (the
“Plan’) is to advance the interests of Artio Global Investors Inc., a Delaware
corporation (the “Company”) and its stockholders by providing certain key
executives of the Company and its affiliates and subsidiaries with annual
incentive compensation that is tied to the achievement of pre-established and
objective performance goals.  The Plan was adopted by the Company’s
Board of Directors on August 6, 2009 and approved by the Company’s stockholders
on  September __, 2009.

       

      2.           Definitions.  Unless
the context clearly indicates otherwise, the following terms shall have the
following meanings:

       

      “Award” means an incentive
compensation award granted under the Plan that is contingent on the attainment
of Performance Factors with respect to a Performance Period.

       

      “Board” means the Board of
Directors of the Company.

       

      “Committee” means the
Compensation Committee of the Board, a subcommittee thereof, or such other
committee as may be appointed by the Board to administer the Plan pursuant to
Section 3 below.  If required by the Board, the Committee shall be
comprised of three or more non-employee directors of the Board who shall qualify
to administer the Plan as “outside directors” under Section 162(m) of the Code
and who shall qualify as “independent’ under the NYSE listing
requirements.

       

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

       

      “Participant” means each key
employee of the Company or its affiliates or subsidiaries who has been selected
by the Committee to participate in the Plan during any Performance
Period.

       

      “Performance Factors” means
the criteria and objectives, determined by the Committee, which must be met
during the applicable Performance Period as a condition of a Participant’s receipt of payment with respect to an
Award.  The Performance Factors may be based on the performance of the
Company as a whole, the performance of different affiliates, subsidiaries or
divisions or based on the personal goals of the individual.  The
Performance Factors may include, without limitation, the following: total
shareholder return; earnings per share; cash flow; free cash flow; selling,
general and administrative expense; working capital management; share price;
gross margin; revenue growth; operating income growth; net earnings; net income
(before or after taxes); return on equity; return on assets or net assets; or
any combination of the foregoing, each as determined in accordance with
generally accepted accounting principles, where applicable, as consistently
applied by the Company. Performance criteria may
be measured on an absolute (e.g., plan or budget) or
relative basis.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      “Performance Period” means any
period or periods designated by the Committee for determining Performance Awards
under the Plan, which generally shall be for a period of at least 12
months.  The initial Performance Period shall be with respect to the
fiscal year ending December 31, 2009.

       

      “Plan” means the Artio Global
Investors Inc. Management Incentive Plan, as amended from time to
time.

       

      3.           Plan
Administration.  The Committee shall have full discretion,
power and authority to administer and interpret the Plan and to establish rules
and procedures for its administration as the Committee deems necessary and
appropriate.  The Committee may delegate to officers and employees of
the Company or its affiliates the authority to manage the day-to-day
administration of the Plan, including without limitation the discretionary
authority to: (i) administer and interpret the terms of the Plan; and
(ii) to make all determinations with respect to the Plan, including all
factual determinations.  Any interpretation of the Plan or other act
or decision on any matter pertaining to the Plan that is made by the Committee
(or its delegate) in its discretion in good faith shall be final and binding on
all parties.  In the event a Committee has not been designated to
administer the Plan, the Board shall administer the Plan and all references to
the Committee shall be deemed to refer to the Board.

       

      4.           Eligibility.  Awards
may be granted to Participants selected by the Committee in its sole
discretion.

       

      5.           Terms of
Awards.  Awards
granted under the Plan shall be communicated to
Participants in such form as the Committee shall from time to time approve and
the terms and conditions of such Awards shall be set forth
therein.

       

      (a)  In
General.  No later than the 90th day of each Performance
Period, the Committee shall
specify in writing, by resolution of the Committee or other appropriate action,
the Participants for such Performance Period and the Performance Factors
applicable to each Award for each Participant with respect to such Performance
Period.  Unless otherwise provided by the
Committee in connection with specified terminations of employment, payment in
respect of Awards shall be made only if and to the extent the minimum
Performance Factors with respect to such Performance Period are attained.
Notwithstanding the
foregoing, any Awards with respect to the initial Performance Period and the
payment therefor shall be determined by the Committee in its
discretion.

       

      (b)  Special Provisions
Regarding Awards.  The Committee may at its discretion increase
(except to the extent required with respect to a Participant who is a covered
employee within the meaning of Section 162(m) of the Code) or decrease the
amount of an Award payable upon attainment of the specified Performance Factors
which would otherwise be payable with respect to such Award, based on, among
other things, the Committee's assessment of the Participant's contribution to
the long-term health of the Company. 

       

      6.           Time and Form of Payment.  Unless otherwise determined by the
Committee, all payments in respect of Awards granted under this Plan shall be
made in cash no later than
March 15th of the year following the end of a
Performance Period ending December 31 and, in all other 

       

       

      
        
          
          

        

        
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      cases, no later than 90 days following
the end of the applicable Performance Period.  In the case of a Participant who is a covered employee within the
meaning of Section 162(m) of the Code, unless otherwise determined by the
Committee and to the extent
required under Section 162(m) of the Code, such payments shall be made only after
achievement of the relevant Performance Factors have been certified by the Committee.
 Unless otherwise provided by the
Committee, a Participant must be actively employed
by or providing services to the Company or its affiliates or subsidiaries at the time Awards generally
are paid with respect to a Performance
Period in order to be eligible to receive payment in respect of such
Award.

       

      7.           Plan Amendment and
Termination.  Except as explicitly provided by law, this Plan
is provided at the Company’s sole discretion and the Board or the Committee may
modify or terminate it at any time, prospectively or retroactively, without
notice or obligation for any reason, subject to obtaining any necessary
stockholder approval as required by law, regulation or listing exchange
requirement.  In addition, there is no obligation to extend the Plan
or to establish a replacement plan in subsequent years.

       

      8.           Miscellaneous
Provisions.

       

      (a)  No Rights to
Awards.  No employee, Participant or other person shall have
any claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of employees, Participants, or beneficiaries of Awards
under the Plan.  The terms and conditions of Awards need not be the
same with respect to each recipient.  Any Award granted under the Plan
shall be a one-time Award which does not constitute a promise of future
grants.  The Company, in its sole discretion, maintains the right to
make available future grants hereunder.

       

      (b)  Withholding.  The
Company shall be authorized to withhold from any Award granted or from any
compensation or other amount owing to a Participant the amount of required
withholding taxes due in respect of an Award.

       

      (c)  Section 409A of the Code.  It is the intention of
the Company that this Plan be exempt from, or if not so exempt, comply with, the
requirements of Section 409A of the Code and any guidance issued thereunder,
including without limitation the six month delay for payments of deferred
compensation to “key employees” upon separation from service pursuant to Section
409A(a)(2)(B)(i) of the Code (if applicable), and the Plan shall be interpreted,
operated and administered accordingly.  Notwithstanding anything in
this Plan to the contrary, the Company does not guarantee the tax treatment of
any payments or benefits under this Plan, whether pursuant to the Code, federal,
state, local or foreign tax laws or regulations.

       

      (d)  No Limit on Other
Compensation Arrangements.  Nothing contained in the Plan shall
prevent the Company from adopting or continuing in effect other or additional
compensation arrangements, and such arrangements may be either generally
applicable or applicable only in specific cases.

       

      (e)  No Right to Continued
Employment.  The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of, or to continue
to provide services to, the Company or any of its affiliates or
subsidiaries.  Further, the Company or any affiliate or 

       

       

      
        
          
          

        

        
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      subsidiary
may at any time dismiss a Participant, free from any liability, or any claim
under the Plan, unless otherwise expressly provided in the Plan.  The
receipt of any Award under the Plan is not intended to confer any rights on the
receiving Participant except as set forth in the terms of the
Award.

       

      (f) Governing Law.  The
validity, construction and effect of the Plan and any rules and regulations
relating to the Plan and any Award shall be determined in accordance with the
laws of the State of New York, without application of the conflict of laws
principles thereof.

       

      (g)  Severability.  If
any provision of the Plan or any Award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction, or as to any person or Award,
such provision shall be construed or deemed amended to conform to applicable
laws.

       

      (h)  No Trust or Fund
Created.  Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a Participant or any other
person.  To the extent that any person acquires a right to receive
payments from the Company pursuant to an Award, such right shall be no greater
than the right of any unsecured general creditor of the Company.

       

      

      - 4
-EX-10.14

Exhibit 10.14

WAIVER AND RELEASE OF CLAIMS

     1. In consideration of the payments and benefits to be made under the Employment Agreement,
dated as of December 7, 2006 (the “Employment Agreement”) and the additional benefits (all
of which are set forth in Exhibit A, attached hereto), to which Stephen J. Weiss (the
“Executive”) and Education Management LLC (the “Company”) (each of the Executive
and the Company, a “Party” and collectively, the “Parties”) are parties, the
sufficiency of which the Executive acknowledges, the Executive, with the intention of binding
himself and his heirs, executors, administrators and assigns, does hereby release, remise, acquit
and forever discharge the Company and each of its parents, subsidiaries and affiliates (the
“Company Affiliated Group”), their present and former officers, directors, executives,
shareholders, agents, attorneys, employees and employee benefit plans (and the fiduciaries
thereof), and the successors, predecessors and assigns of each of the foregoing (collectively, the
“Company Released Parties”), of and from any and all claims, actions, causes of action,
complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial
obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law,
equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether
now known or unknown, suspected or unsuspected, which the Executive, individually or as a member of
a class, now has, owns or holds, or has at any time heretofore had, owned or held, arising on or
prior to the date hereof, against any Company Released Party that arises out of, or relates to, the
Employment Agreement, the Executive’s employment with the Company, or any termination of such
employment, including claims (i) for severance or vacation benefits, unpaid wages, salary or
incentive payments, (ii) for breach of contract, wrongful discharge, impairment of economic
opportunity, defamation, intentional infliction of emotional harm or other tort, (iii) for any
violation of applicable state and local labor and employment laws (including, without limitation,
all laws concerning unlawful and unfair labor and employment practices) and (iv) for employment
discrimination under any applicable federal, state or local statute, provision, order or
regulation, and including, without limitation, any claim under Title VII of the Civil Rights Act of
1964 (“Title VII”), the Civil Rights Act of 1988, the Fair Labor Standards Act, the
Americans with Disabilities Act (“ADA”), the Executive Retirement Income Security Act of
1974, as amended (“ERISA”), the Age Discrimination in Employment Act (“ADEA”), and
any similar or analogous state statute, excepting only:

	 	(A)	 	rights of the Executive arising under, or
preserved by, this Agreement (including Exhibit A attached
hereto) or Section 3 or Section 7 of the Employment Agreement;
	 
	 	(B)	 	the right of the Executive to receive COBRA
continuation coverage in accordance with applicable law;
	 
	 	(C)	 	claims for benefits under any health,
disability, retirement, life insurance or other, similar employee
benefit plan (within the meaning of Section 3(3) of ERISA) of the
Company Affiliated Group; and
	 
	 	(D)	 	rights to indemnification the Executive has or
may have under the by-laws, limited liability company agreement or
certificate of incorporation of any member of the Company Affiliated
Group or

 

 

	 	 	 	as an insured under any director’s and officer’s liability insurance
policy now or previously in force.

     2. The Employee acknowledges and agrees that the release of claims set forth in this Agreement
is not to be construed in any way as an admission of any liability whatsoever by any Company
Released Party, any such liability being expressly denied.

     3. The release of claims set forth in this Agreement applies to any relief no matter how
called, including, without limitation, wages, back pay, front pay, compensatory damages, liquidated
damages, punitive damages, damages for pain or suffering, costs, and attorneys’ fees and expenses.

     4. The Executive specifically acknowledges that his acceptance of the terms of the release of
claims set forth in this Agreement is, among other things, a specific waiver of his rights, claims
and causes of action under Title VII, ADEA, ADA and any state or local law or regulation in respect
of discrimination of any kind; provided, however, that nothing herein shall be
deemed, nor does anything contained herein purport, to be a waiver of any right or claim or cause
of action which by law the Executive is not permitted to waive.

     5. As to rights, claims and causes of action arising under the ADEA, the Executive
acknowledges that he has been given but not utilized a period of twenty-one (21) days to consider
whether to execute this Agreement. If the Executive accepts the terms hereof and executes this
Agreement, he may thereafter, for a period of seven (7) days following (and not including) the date
of execution, revoke this Agreement as it relates to the release of claims arising under the ADEA.
If no such revocation occurs, this Agreement shall become irrevocable in its entirety, and binding
and enforceable against the Executive, on the day next following the day on which the foregoing
seven-day period has elapsed. If such a revocation occurs, the Executive shall irrevocably forfeit
any right to payment of the Severance Payment and/or Pro-Rata Annual Bonus Payment (as such terms
are defined in the Employment Agreement), but the remainder of the Employment Agreement shall
continue in full force.

     6. Other than as to rights, claims and causes of action arising under the ADEA, the release of
claims set forth in this Agreement shall be immediately effective upon execution by the Executive.

     7. The Executive acknowledges and agrees that he has not, with respect to any transaction or
state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against
any Company Released Party with any governmental agency, court or tribunal.

     8. The Executive acknowledges that he has been advised to seek, and has had the opportunity to
seek, the advice and assistance of an attorney with regard to the release of claims set forth in
this Agreement, and has been given a sufficient period within which to consider the release of
claims set forth in this Agreement.

     9. The Executive acknowledges that the release of claims set forth in this Agreement relates
only to claims which exist as of the date of this Agreement.

 

 

     10. The Executive acknowledges that the Severance Payments and/or Pro-Rata Annual Bonus
Payment set forth on Exhibit A he is receiving in connection with the release of claims set
forth in this Agreement and his obligations under this Agreement are in addition to anything of
value to which the Executive is entitled from the Company and that such payments and the other
benefits set forth on Exhibit A satisfy the Company’s obligations to the Executive under
the Employment Agreement in connection with the termination of the Executive’s employment with the
Company.

     11. Each provision hereof is severable from this Agreement, and if one or more provisions
hereof are declared invalid, the remaining provisions shall nevertheless remain in full force and
effect. If any provision of this Agreement is so broad, in scope, or duration or otherwise, as to
be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

     12. This Agreement constitutes the complete agreement of the Parties in respect of the subject
matter hereof and shall supersede all prior agreements between the Parties in respect of the
subject matter hereof except to the extent set forth herein.

     13. The failure to enforce at any time any of the provisions of this Agreement or to require
at any time performance by another party of any of the provisions hereof shall in no way be
construed to be a waiver of such provisions or to affect the validity of this Agreement, or any
part hereof, or the right of any party thereafter to enforce each and every such provision in
accordance with the terms of this Agreement.

     14. This Agreement may be executed in several counterparts, each of which shall be deemed to
be an original, but all of which together shall constitute one and the same instrument. Signatures
delivered by facsimile shall be deemed effective for all purposes.

     15. This Agreement shall be binding upon any and all successors and assigns of the Executive
and the Company.

     16. Except for issues or matters as to which federal law is applicable, this Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of New York
without giving effect to the conflicts of law principles thereof.

     17. Capitalized terms used herein have the meanings given them in the Employment Agreement
unless otherwise defined herein.

 

 

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the Parties, all
as of July 10, 2009.

	 	 	 	 	 
	 	 	EDUCATION MANAGEMENT LLC
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Todd S. Nelson
	 

	 	 	 	 
	/s/
Stephen J. Weiss 

	 	 	 	Name: Todd S. Nelson
	STEPHEN J. WEISS, Individually

	 	 	 	Title: Chief Executive Officer

Solely with respect to the Stock Option Agreements described in Section 10 of Exhibit A
hereto.

	 	 	 	 	 
	EDUCATION MANAGEMENT CORPORATION

 	 	 
	By:  	/s/
Todd S. Nelson	 	 
	 	Name:  	Todd S. Nelson 	 	 
	 	Title:  	Chief Executive Officer 	 	 
	 

 

 

EXHIBIT A

Pursuant to the Executive’s Employment Agreement, and as otherwise agreed to by the Company in
connection with his termination of employment effective August 5, 2009 (“Termination Date”), the
Company shall provide the Executive the payments and benefits as follows:

     1. Executive’s base salary through the Termination Date and other items of compensation
accrued through that date (less applicable withholding taxes), which amounts shall be paid on or
about August 6, 2009;

     2. The Executive’s full 2009 MICP Bonus at 150% of target in the aggregate amount of $496,500
(less applicable withholding taxes), which amount shall be paid on or about August 6, 2009, as
payment for his Pro-Rata Annual Bonus Payment;

     3. Severance Payments equal to: (1) 104% of Executive’s current Base Salary for eighteen (18)
months, in the aggregate amount of $516,360 (less applicable withholding taxes); plus (2)
additional Bonus payments at the same 150% of target referenced above for eighteen (18) months, in
the aggregate amount of $744,750 (less applicable withholding taxes). These severance payments
will be made over an eighteen (18) month period beginning six (6) months and a day following
Executive’s termination of employment. On February 7, 2010 (six months and one day following the
effective date of your termination of employment), Company will pay Executive a lump-sum payment of
$420,370 (less applicable withholding taxes) representing the prior six months of delayed
installment payments, with the balance of the severance payments to be paid in twelve (12) equal
installments of $70,061.67 per month beginning on February 7, 2010;

     4. The continuation of Executive’s medical, dental and vision benefits for eighteen (18)
months from the Termination Date (the Company will pay the same pro rata portion of Executive’s
monthly premium as it pays for Executive as an active employee);

     5. Key Executive Outplacement Services or a cash payment equal to the estimated value thereof
($25,000), which services or payment shall be provided or paid no later than February 7, 2010.

     6. Reimbursement of documented costs of moving Executive’s personal possessions up to a
maximum of $15,000;

     7. Reimbursement of documented legal expenses incurred by Executive in connection with having
this Agreement reviewed by counsel up to maximum of $10,000;

     8. Executive will be allowed to retain his Company provided cell phone and laptop computer,
after Company-related data is removed from the computer; and

     9. Executive will be provided a letter of reference following the execution of this Agreement.

     10. Under the terms of Executive’s Time-Vested Non-Qualified Stock Option

 

 

Agreement dated December 7, 2006 (the “2006 Option Agreement”), the Executive would have been
entitled to exercise 80% of his time-based options (including the additional 20% that becomes
vested as of the next anniversary of the grant date after the Termination Date). The Parent Board
has decided to provide Executive with an additional benefit and fully vest the other 20% of his
time-based options under the 2006 Option Agreement so that Executive may exercise 100% shares
subject to this grant. This option will remain exercisable through the termination date set forth
in the 2006 Option Agreement, unless sooner terminated in connection with the terms of the Option
Plan or the 2006 Option Agreement.

     Under the terms of Executive’s Time-Vested Non-Qualified Stock Option Agreement dated June 28,
2007 (the “2007 Option Agreement”), the Executive would have been entitled to exercise 60% of his
time-based options (including the additional 20% that becomes vested as of the next anniversary of
the grant date after the Termination Date). The Parent Board has decided to provide Executive with
an additional benefit and fully vest the other 40% of his time-based options under the 2007 Option
Agreement so that Executive may exercise 100% shares subject to this grant. This option will
remain exercisable through the termination date set forth in the 2007 Option Agreement, unless
sooner terminated in connection with the terms of the Option Plan or the 2007 Option Agreement.

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