Document:

Exhibit 10.1

 

EXECUTION VERSION

 

SUPPORT AGREEMENT

 

This Support Agreement, dated as of June 29, 2016 (this “Agreement”), is by and among the Persons (as defined herein) listed on Schedule A hereto (collectively, “IVA,” and each individually, a “member” of IVA), DeVry Education Group Inc., a Delaware corporation (the “Company”), and Michael W. Malafronte, in his individual capacity and as a member of IVA (the “IVA Designee”).

 

WHEREAS, IVA and its Affiliates (as defined herein) collectively beneficially own, an aggregate of 12,221,652 shares of common stock of the Company, par value $0.01 (the “Common Stock”);

 

WHEREAS, the Company has determined that it is in the best interests of the Company and its stockholders, and IVA and the IVA Designee have determined that it is in their respective best interests, to come to an agreement with respect to certain matters in respect of the Company’s Board of Directors (the “Board”) and certain other matters, as provided in this Agreement; and

 

WHEREAS, the Nominating & Governance Committee of the Board (the “Nominating Committee”) and the Board have considered the qualifications of the IVA Designee and conducted such review as they have deemed appropriate, including as to (i) reviewing materials provided by the IVA Designee and IVA and (ii) conducting interviews between the IVA Designee and certain members of the Nominating Committee and the Board;

 

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.              Board Representation and Board Matters.

 

(a)            Concurrently with the execution of this Agreement, the Company has (i) increased the size of the Board by one (1) director to ten (10) directors and (ii)  appointed the IVA Designee to serve as a director of the Company.  Prior to the date hereof, the IVA Designee has delivered and the Company has accepted (x) a completed standard director and officer questionnaire of the Company (the “D&O Questionnaire”), (y) an executed letter in the form attached hereto as Exhibit A (the “IVA Designee Letter”) and (z) the executed irrevocable resignation in the form attached hereto as Exhibit B (the “IVA Designee Resignation,” and together with the D&O Questionnaire and the 2016 Nominee Letter, the “IVA Designee Nomination Documents”).

 

(b)            Unless the IVA Designee has resigned from the Board, the Company’s slate of nominees for election as directors of the Company at the 2016 Annual Meeting shall include the IVA Designee.

 

(c)             For any annual meeting at which the IVA Designee is nominated by the Company and agrees to serve (including if the Company’s slate of nominees for election as directors of the Company at the 2016 Annual Meeting includes the IVA Designee pursuant to Section 1(b) above), the Company will use reasonable best efforts to cause the election of the IVA Designee to the Board at such annual meeting (including recommending that the Company’s stockholders vote in favor of the election of the IVA Designee (along with all of the Company’s nominees) and otherwise supporting the IVA Designee for election in the same manner in which the Company supports its other nominees in the aggregate).

 

 

(d)            For so long as the IVA Designee serves on the Board, but subject to (x) compliance with New York Stock Exchange listing requirements regarding independence of directors and committee members, including applicable enhanced requirements with respect to certain committees and (y) compliance with changes in applicable law after the date of this Agreement (collectively, the “Independence Requirements”), the IVA Designee shall be, and concurrently with the execution of this Agreement has been, appointed to (i) the Compensation Committee of the Board, (ii) the Nominating Committee and (iii) the External Relations Committee; provided that such IVA Designee, in his sole discretion, may decline to serve on any such committee at any time. The Board, based on information provided by the IVA Designee has determined that, as of the date hereof, the IVA Designee satisfies the Independence Requirements.

 

(e)            Should the IVA Designee resign from the Board or be rendered unable to, or refuse to, be appointed to, or for any other reason fail to serve or is not serving on, the Board (other than (i) as a result of not being nominated by the Company at an annual meeting at which such IVA Designee would be required to stand for re-election pursuant to the Company’s certificate of incorporation to remain on the Board (such meeting, the “Re-election Meeting”), except if the Company was required to so nominate such IVA Designee pursuant to this Agreement, or (ii) as a result of the application of Section 1(f) below), IVA shall be entitled to designate a replacement board member for such IVA Designee that is reasonably satisfactory to the Board, consistent with the standards and processes followed in connection with the initial appointment of the IVA Designee, including with respect to Independence Requirements (a “Replacement”), and the Company shall take all necessary action to implement the foregoing as promptly as practicable, and in no event later than twenty (20) calendar days after designation of the replacement by IVA.  Any such Replacement who becomes a Board member in replacement of an IVA Designee shall be deemed to be an IVA Designee for all purposes under this Agreement and, prior to his or her appointment to the Board, shall be required to (1) execute and deliver to the Company the IVA Designee Nomination Documents and (2) otherwise satisfy the evaluation procedures of the Nominating Committee in accordance with the practices of the Nominating Committee and the Board.  If IVA designates a Replacement as contemplated by this Section 1(e), IVA acknowledges and agrees that all provisions of this Agreement applicable to IVA shall remain in full force and effect.

 

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(f)            Notwithstanding the foregoing Sections 1(a) through 1(e), if at any time after the date of this Agreement (A) IVA, together with the IVA Affiliates (as defined below), ceases collectively to beneficially own or have other ownership interest in aggregate Net Long Positions of at least ten percent (10%) of the outstanding shares of Common Stock, or (B) IVA or the IVA Designee materially breaches any obligation under this Agreement and fails to cure such breach (to the extent it is curable) within ten (10) business days after receipt by IVA of written notice from the Company specifying any such breach then, in the case of (A) or (B), (x) the IVA Designee Resignation shall become immediately effective, and (y) the Company shall have no further obligations under this Section 1 or Section 2(b). In furtherance of this Section 1(f), the IVA Designee shall have, prior to the date of this Agreement, executed and delivered the IVA Designee Resignation to the Company. IVA shall keep the Company regularly apprised of its (and the IVA Affiliates’) ownership position in respect of the Common Stock (including Net Long Positions) to the extent such positions differ materially from the ownership positions publicly reported on IVA’s Schedule 13D (including amendments thereto). For purposes of this Agreement, the term “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); provided that “Affiliate” shall not include any entity whose equity securities are registered under the Exchange Act (or are publicly traded in a foreign jurisdiction), solely by reason of the fact that a principal of IVA serves as a member of its board of directors or similar governing body, unless IVA otherwise controls such entity (as the term “control” is defined in Rule 12b-2 promulgated by the SEC under the Exchange Act), and the term “Persons” or “Person” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.

 

(g)            At all times while serving as a member of the Board, except as otherwise agreed to by the IVA Designee and the Board, the IVA Designee shall comply in all material respects with all policies, procedures, processes, codes, rules, standards and guidelines generally applicable to Board members, including the Company’s code of conduct, securities trading policies, anti-hedging policies, Regulation FD-related policies, director confidentiality policies and corporate governance guidelines, copies of which, in each case, have been provided to IVA and the IVA Designee, and preserve the confidentiality of the Company’s business and information, including discussions or matters considered in meetings of the Board or Board committees.  The IVA Designee’s obligations under this Agreement are in addition to the fiduciary and common law duties of any director of a Delaware corporation.  The Company represents that all members of the Board are or will be subject to materially similar policies, procedures, processes, codes, rules, standards and guidelines.

 

2.              Certain Other Matters.

 

(a)            The IVA Designee shall be entitled to resign from the Board at any time in his discretion and, upon resignation, shall have no obligations thereafter imposed under this Section 2 on the IVA Designee or IVA. For purposes of this Agreement, the “Standstill Period” shall mean the period from the date of this Agreement until such time as the IVA Designee (or his Replacement, if applicable) is no longer a member of the Board.  If the IVA Designee (or his or her Replacement, if applicable) agrees to be included as a director nominee for election at any Stockholders Meeting other than as a director nominated by the Board for election at such Stockholders Meeting, the IVA Designee Resignation previously provided by such IVA Designee shall become effective.

 

(b)            The Company agrees that for so long as the IVA Designee (or any Replacement) is on the Board, the Company shall forthwith notify IVA, in writing, as to the Board’s decision whether or not to nominate the IVA Designee (or any Replacement) for election at a Re-election Meeting (which written notice from the Company, if any, shall in any event be delivered to IVA not later than thirty (30) days prior to the advance notice deadline for making director nominations at the Re-election Meeting).

 

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(c)                 Except as set forth in Section 2(d), during the Standstill Period, no member of IVA shall, directly or indirectly, and each member of IVA shall cause each IVA Affiliate not to, directly or indirectly:

 

(i)            (A) solicit proxies or written consents of stockholders or conduct any other type of referendum (binding or non-binding) with respect to, or from the holders of, the Voting Securities (as defined below), or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange Act) in or assist any Person not a party to this Agreement (a “Third Party”) in any “solicitation” of any proxy, consent or other authority (as such terms are defined under the Exchange Act) to vote any shares of the Voting Securities (other than such encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter), or (B) control or exert influence over or seek to control or exert influence over the voting of any Voting Securities as to which a Third Party that is counterparty to any Net Long Position of IVA possesses power to vote or direct the voting (other than such control or influence that is consistent with Company management’s recommendation in connection with such matter);

 

(ii)          encourage, advise or influence any other Person or assist any Third Party in so encouraging, assisting or influencing any Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum (other than such encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter);

 

(iii)         form or join in a partnership, limited partnership, syndicate or other group, including a “group” as defined under Section 13(d) of the Exchange Act, with respect to the Voting Securities (including any Net Long Position) (for the avoidance of doubt, excluding any group composed solely of IVA and the IVA Affiliates) or otherwise support or participate in any effort by a Third Party with respect to the matters set forth in clauses (i), (vi), (vii) or (ix) of this Section 2(c);

 

(iv)         present at any annual meeting or any special meeting of the Company’s stockholders any proposal for consideration for action by stockholders or seek the removal of any member of the Board or (except as expressly permitted in this Agreement with respect to a Replacement) propose any nominee for election to the Board or seek representation on the Board;

 

(v)          make any request for stockholders list materials or other books and records of the Company under Section 220 of the Delaware General Corporation Law or otherwise;

 

(vi)         institute, solicit or join, as a party, any litigation, arbitration or other proceeding against the Company or any of its Subsidiaries (as defined below) or any of their respective current or former directors or officers (including derivative actions), other than litigation by IVA to enforce the provisions of this Agreement; provided, that this clause (vi) shall not require IVA to opt-out of any class action lawsuit against the Company or any of its Subsidiaries;

 

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(vii)       without the prior written approval of the Board, separately or in conjunction with any other Person in which it is or proposes to be either a principal, partner or financing source or is acting or proposes to act as broker or agent for compensation, propose (publicly, privately or to the Company) or effect any merger, consolidation, business combination, tender or exchange offer, sale or purchase of assets, sale or purchase of securities, dissolution, liquidation, reorganization, restructuring, recapitalization, extraordinary dividend, significant share repurchase or similar transaction of or involving the Company or any of its Affiliates or a material amount of the assets or businesses of the Company or actively encourage, initiate or support any other Third Party in any such activity;

 

(viii)     purchase or cause to be purchased or otherwise acquire or agree to acquire Beneficial Ownership of any Voting Securities (including adding to any Net Long Position and, for purposes of this calculation, including any Synthetic Positions) such that IVA and the IVA Affiliates would collectively beneficially own (including for purposes of this calculation, any net long Synthetic Positions as beneficial ownership of the associated Voting Securities) more than nineteen and nine-tenths percent (19.9%) of the Company’s issued and outstanding Voting Securities at such time;

 

(ix)         except as set forth herein, take any action in support of or make any proposal or request that constitutes (A) controlling, changing or influencing the Board or management of the Company, including any plans or proposals to change the number or term of directors or to fill any vacancies on the Board, (B) any material change in the capitalization, stock repurchase programs and practices, capital allocation programs and practices or dividend policy of the Company, (C) any other material change in the Company’s management, business or corporate structure or (D) seeking to have the Company waive or make amendments or modifications to the Company’s certificate of incorporation or by-laws;

 

(x)           enter into any negotiations, agreements, arrangements or understandings with any Third Party with respect to the matters set forth in this Section 2; or

 

(xi)         request, directly or indirectly, any amendment or waiver of the foregoing in a manner that would be reasonably likely to require public disclosure by IVA (or any of its Affiliates) or the Company.

 

As used in this Agreement, the term “Voting Securities” shall mean the Common Stock, and any other securities of the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for, Common Stock or other securities, whether or not subject to the passage of time or other contingencies.

 

As used in this Agreement, the term “Beneficial Ownership” of Voting Securities means ownership of (i) Voting Securities and (ii) rights or options to own or acquire any Voting Securities (whether such right or option is exercisable immediately or only after the passage of time or upon the satisfaction of one or more conditions (whether or not within the control of such Person), compliance with regulatory requirements or otherwise). For purposes of this Section 2, no Person shall be, or be deemed to be, the “Beneficial Owner” of, or to “beneficially own,” any securities beneficially owned by any director of the Company to the extent such securities were acquired directly from the Company by such director as or pursuant to director compensation for serving as a director of the Company.

 

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Notwithstanding anything to the contrary in this Agreement, including this Section 2, nothing in this Agreement shall be deemed to prohibit IVA from (A) voting for or against (1) any acquisition of any material assets or businesses of the Company or any of its subsidiaries, (2) any tender offer or exchange offer, merger, acquisition or other business combination involving the Company or any of its subsidiaries, or (3) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries, (B) communicating privately with the Board or the Chief Executive Officer of the Company regarding any matter in a manner that would not be reasonably likely to require public disclosure by IVA (or any of its Affiliates) or the Company, (C) making any public statement or announcement with respect to a transaction as described in clause (A) of this paragraph proposed by the Company that requires a vote of the stockholders and that is publicly announced by the Company after the date of this Agreement, or (D) other than as provided by Section 2(c) and 2(e), voting for or against any matter requiring shareholder approval.

 

(d)            It is understood and agreed that the restrictions set forth in Section 2(c) shall not apply to the actions of the IVA Designee in respect of such IVA Designee’s participation in Board and Board committee meetings (including votes on and discussions regarding matters at such meetings) in such IVA Designee’s capacity as a director of the Company.

 

(e)            Until the end of the Standstill Period, IVA together with all controlled Affiliates of the members of IVA (such controlled Affiliates, collectively and individually, the “IVA Affiliates”) shall cause all Voting Securities owned by them directly or indirectly, whether owned of record or beneficially owned, as of the record date for any annual or special meeting of stockholders (each, a “Stockholders Meeting”) within the Standstill Period, in each case that are entitled to vote at any such Stockholders Meeting, not to be voted at all such Stockholders Meetings or at any adjournments or postponements thereof to cause a majority of the Board to be comprised of directors that were not nominated by the Board for election as a director.

 

3.              Compensation. The IVA Designee shall be compensated for his services as a director and shall be reimbursed for his expenses on the same basis as all other non-employee directors of the Company and shall be eligible to be granted equity-based compensation on the same basis as all other non-employee directors of the Company.

 

4.              Indemnification and Insurance. The IVA Designee shall be entitled to the same rights of indemnification and directors’ and officers’ liability insurance coverage as the other non-employee directors of the Company as such rights may exist from time to time. The form indemnification agreement for directors is attached hereto as Exhibit D.

 

5.              Non-Disparagement. During the Standstill Period, neither the Company nor IVA shall in any manner, directly or indirectly, make, or cause to be made, any statement, announcement or disclosure negatively commenting upon the Company, IVA or any of IVA’s affiliates (including through any press release or other publicly available format, the filing or furnishing of any document or report with any regulatory or governmental agency or stock exchange, any Internet posting, or any public or private disclosure to any journalist or member of the media (including in a television, radio, newspaper, online, magazine or other interview, regardless of format), shareholder, securities analyst or other person); provided, that neither the Company nor IVA shall be deemed in breach of this Section by virtue of an unpremeditated, private, informal remark that is not part of any coordinated communication or campaign and is not intended or designed to circumvent, directly or indirectly, the restrictions contemplated by this Section.

 

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6.               Public Announcements. Promptly following the execution of this Agreement, the Company and IVA shall announce this Agreement by means of jointly issued press release in the form attached hereto as Exhibit C (the “Press Release”). Neither the Company (and the Company shall cause each of its subsidiaries, directors and officers not to) nor IVA or any IVA Affiliate shall make or cause to be made any public announcement or statement with respect to the subject of this Agreement that is contrary to the statements made in the Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other party.  The Company acknowledges that IVA intends to file this Agreement and the Press Release as exhibits to its Schedule 13D pursuant to an amendment. The Company shall have reasonable advance review and consultation rights upon any Schedule 13D filing (or amendment thereto) made by IVA with respect to this Agreement.  IVA acknowledges and agrees that the Company intends to  file this Agreement and file or furnish the Press Release with the SEC as exhibits to a Current Report on Form 8-K and to file this Agreement as an exhibit to future filings with the SEC .  IVA shall have reasonable advance review and consultation rights upon any Current Report on Form 8-K filing (or amendment thereto) made by the Company with respect to this Agreement.

 

7.               IVA Designee and IVA; Company Information; No Use of Non-Public Information.  The parties acknowledge and agree that IVA and the IVA Designee shall remain subject to all applicable securities laws.  The IVA Designee shall keep all non-public information of the Company (including discussions or matters considered in meetings of the Board or Board committees) strictly confidential and shall not disclose any such information to IVA or any IVA Affiliates.  IVA shall at all times during the term of this Agreement have in place adequate protocols (including “Chinese walls” and other appropriate policies and procedures) to ensure that non-public information concerning the Company that is in the possession or control of the IVA Designee is not used by or shared with IVA or any IVA Affiliates.  IVA acknowledges and agrees that (i) IVA and the IVA Affiliates shall not solicit or obtain any non-public information of the Company from the IVA Designee, (ii) IVA shall be responsible for, and shall monitor the adequacy of, protocols implemented to ensure compliance with this Section 7, and shall promptly take all appropriate actions to remediate any deficiencies in such protocols, and (iii) IVA shall promptly notify the Company of any breach of this Section 7 by IVA or any IVA Affiliate.  IVA shall be liable for any breach of this Section 7 by any IVA Affiliate and shall indemnify the Company for any damages, costs and expenses suffered or incurred by the Company in connection with any such breach.

 

8.               Representations and Warranties of All Parties. Each of the parties represents and warrants to the other party that: (a) such party has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (b) this Agreement has been duly and validly authorized, executed and delivered by it and is a valid and binding obligation of such party, enforceable against such party in accordance with its terms; and (c) this Agreement will not result in a violation of any terms or conditions of any agreements to which such Person is a party or by which such party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such party.

 

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9.               Representations and Warranties of IVA. IVA represents and warrants that, as of the date of this Agreement: (a) IVA, together with all of the IVA Affiliates, collectively beneficially own an aggregate of 12,221,652 shares of Common Stock; (b) except for such ownership, no member of IVA, individually or in the aggregate with all other members of IVA and the IVA Affiliates, has any other Beneficial Ownership of any Voting Securities or any Net Long Position in any other Voting Securities; (c) IVA has not provided or agreed to provide, and will not provide, any compensation in cash or otherwise to any New Director, solely, in his or her capacity as a director or director nominee of the Company in connection with such New Director’s nomination and appointment to, or service on, the Board; and (d) IVA, collectively with the IVA Affiliates, except as described above, has no Synthetic Positions. The term “Net Long Position” shall mean such Person’s net long position, as defined in Rule 14e-4 under the Exchange Act, mutatis mutandis, in respect of the Voting Securities. The term “Synthetic Position” shall mean either of (i) any short sale or any purchase, sale or grant of any option, warrant, convertible security, stock appreciation right, or other security, contract right or derivative position or similar right (including any put or call option or “swap” transaction with respect to any security, other than a broad based market basket or index), whether or not presently exercisable, that has an exercise or conversion privilege or a settlement payment or mechanism at a price related to the value of the Voting Securities or a value determined in whole or in part with reference to, or derived in whole or in part from, the value of the Voting Securities and that increases in value as the market price or value of the Voting Securities decreases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any decrease in the value of the Voting Securities or (ii) any purchase, sale or grant of any option, warrant, convertible security, stock appreciation right, or other security, contract right or derivative position or similar right (including any put or call option or “swap” transaction with respect to any security, other than a broad based market basket or index), whether or not presently exercisable, that has an exercise or conversion privilege or a settlement payment or mechanism at a price related to the value of the Voting Securities or a value determined in whole or in part with reference to, or derived in whole or in part from, the value of the Voting Securities and that increases in value as the market price or value of the Voting Securities increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any increase in the value of the Voting Securities, in each case of (i) and (ii), regardless of whether (x) such derivative conveys any voting rights in such Voting Securities to such Person or any of such Person’s Affiliates, (y) such derivative is required to be, or capable of being, settled through delivery of such securities, or (z) such Person or any of such Person’s Affiliates may have entered into other transactions that hedge the economic effect of such derivative. A Synthetic Position shall not include (1) any interests, rights, options or other securities set forth in Rule 16a-1(c)(1)-(5) or (7) of the General Rules and Regulations under the Exchange Act or (2) any Voting Securities beneficially owned (as defined in Rule 13d-3 under the Exchange Act) by such Person or its Affiliates or any Net Long Position held by such Person or its Affiliates.

 

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10.            Miscellaneous. The parties hereto recognize and agree that if for any reason any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy. Accordingly, each party agrees that in addition to other remedies the other party shall be entitled to at law or equity, the other party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement exclusively in the Court of Chancery or, if the Court of Chancery does not have jurisdiction, other federal or state courts of the State of Delaware. Furthermore, each of the parties hereto: (a) consents to submit itself to the personal jurisdiction of the Court of Chancery or, if the Court of Chancery does not have jurisdiction, other federal or state courts of the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement; (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court; (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery or, if the Court of Chancery does not have jurisdiction, other federal or state courts of the State of Delaware, and each of the parties irrevocably waives the right to trial by jury with respect to any matter arising under or related to this Agreement; and (d) irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address of such party’s principal place of business or as otherwise provided by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

 

11.            No Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

12.            Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and may be amended only by an agreement in writing executed by the parties hereto.

 

13.            Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by email, when such email is sent to the email address set forth below during normal business hours and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this subsection:

 

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if to the Company:

 

DeVry Education Group Inc.

3005 Highland Parkway

Downers Grove, Illinois 60515

Attention:            Gregory S. Davis

Email:                        gsdavis@devrygroup.com

 

With a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

155 N. Wacker Drive

 Suite 2700

Chicago, Illinois 60606

Attention:             Charles W. Mulaney, Jr.

Email:                         charles.mulaney@skadden.com

  

if to IVA:

 

International Value Advisers, LLC

717 5th Avenue, 10th Floor

New York, New York 10022

Attention:             Shanda Scibilia

Email:                         shanda.scibilia@ivafunds.com

 

With a copy (which shall not constitute notice) to:

Morrison & Foerster LLP

425 Market Street

San Francisco, California 94105

Attention:             Murray A. Indick

Email:                         mindick@mofo.com

 

14.            Severability. If at any time subsequent to the date of this Agreement, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Agreement.

 

15.            Counterparts. This Agreement may be executed in two or more counterparts which together shall constitute a single agreement.

 

16.            Successors and Assigns. This Agreement shall not be assignable by any of the parties to this Agreement. This Agreement, however, shall be binding on successors of the parties hereto.

 

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17.            No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and is not enforceable by any other Persons.

 

18.            Fees and Expenses.  Neither the Company, on the one hand, nor IVA, on the other hand, will be responsible for any fees or expenses of the other in connection with this Agreement, except that the Company shall reimburse IVA, in an amount not to exceed $30,000, for its attorneys fees and costs arising in connection with the negotiation of this Agreement and all related securities filings.

 

19.            Interpretation and Construction. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The term “including” shall be deemed to mean “including without limitation” in all instances.

 

20.            Amendments.  This Agreement may only be amended pursuant to a written agreement executed by the parties.

 

[Signature Pages Follow]

 

 

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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same to be executed by its duly authorized representative as of the date first above written.

 

 

	 	DEVRY EDUCATION GROUP INC.	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Gregory S. Davis	 
	 	 	Name: Gregory S. Davis	 
	 	 	
Title:   Senior Vice President, General Counsel

            and Secretary

	 
	 	 	 	 

 

[Signature Page to Support Agreement]

 

	
 

	
INTERNATIONAL VALUE ADVISERS, LLC

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
By:

	
/s/ Charles de Vaulx

	 
	
 

	
Name: Charles de Vaulx

	 
	
 

	
Title: Chairman, Chief Investment Office

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
By: INTERNATIONAL VALUE ADVISERS, LLC,

	 
	
 

	
its investment manager

	 
	 	 	 	 
	
 

	
 

	
 

	 
	
 

	
By:

	
/s/ Charles “Chuck” de Lardemelle

	 
	
 

	
Name: Charles “Chuck” de Lardemelle

	 
	
 

	
Title: Portfolio Manager

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
By: MICHAEL W. MALAFRONTE, individually

	 
	
 

	
and as a member of IVA, LLC

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
By: 

	
/s/ Michael W. Malafronte

	 
	
 

	
Name: Michael W. Malafronte

	 
	
 

	
Title: Managing Partner

	 
	
 

	
 

	
 

	 
	 	 	 	 

 

[Signature Page to Support Agreement]

 

SCHEDULE A

 

 

 

International Value Advisers, LLC

 

 

Schedule A

 

EXHIBIT A

 

FORM OF NOMINEE LETTER

 

 

_______________, 2016

 

Attention: Board of Directors

DeVry Education Group Inc.

3005 Highland Parkway

Downers Grove, Illinois 60515

 

Re:            Consent

 

Ladies and Gentlemen:

 

I hereby consent to (a) serve as a director of DeVry Education Group Inc. (the “Company”), effective [DATE], (b) if nominated by the Company, be named as a nominee for the position of director of the Company in the Company’s proxy statement for the Company’s 2016 Annual Meeting of Stockholders (the “2016 Annual Meeting”) and (c) serve as a director if I am so elected at the 2016 Annual Meeting.  I also agree that, after the date hereof, I will provide to the Company, as requested by the Company from time to time, such information as the Company is entitled to reasonably receive from other members of the Company’s Board of Directors (the “Board”) and as is required to be disclosed in proxy statements or other reports or filings under applicable law or securities exchange listing requirements.

 

At all times while serving as a member of the Board, except as otherwise agreed to by myself and the Board, I agree to comply in all material respects with all policies, procedures, processes, codes, rules, standards and guidelines generally applicable to Board members, including the Company’s code of conduct, securities trading policies, anti-hedging policies, Regulation FD-related policies, director confidentiality policies and corporate governance guidelines, in each case that have been identified to me, and preserve the confidentiality of the Company’s business and information, including discussions or matters considered in meetings of the Board or Board committees.  I acknowledge and agree that the foregoing obligations are in addition to the fiduciary and common law duties of any director of a Delaware corporation.

 

	 		 
	 	 	Sincerely, 	 
	 	 	 	 
	
 

	
 

		 
	 	 	Name:	 

 

A-1

 

EXHIBIT B

 

IRREVOCABLE RESIGNATION

 

 

_______________, 2016

 

Attention: Board of Directors

DeVry Education Group Inc.

3005 Highland Parkway

Downers Grove, Illinois 60515

 

Re:            Resignation

 

Ladies and Gentlemen:

 

This irrevocable resignation is delivered pursuant to Section 1(a), 1(f) or 2(a) of the Support Agreement, dated as of June [ ], 2016 (the “Agreement”), by and among DeVry Education Group Inc., IVA (as defined therein) and the IVA Designee (as defined therein). Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement.

 

Following the date of the Agreement, but effective only upon the earliest to occur of (a) such time as I agree to be included as a director nominee for election at any Stockholders Meeting, other than as a director nominated by the Board for election at such Stockholders Meeting, (b) IVA, together with all of the IVA Affiliates, ceases collectively to beneficially own or have other ownership interest in aggregate Net Long Positions of at least 10% of the outstanding shares of Common Stock and (c) IVA or the IVA Designee materially breaches any obligation under the Agreement and fails to cure such breach (to the extent it is curable) within ten (10) business days after receipt by IVA of written notice from the Company specifying any such breach, I hereby resign from my position as a director of the Company and from any and all committees of the Board on which I serve.

 

 

	 		 
	 	 	Sincerely, 	 
	 	 	 	 
	
 

	
 

		 
	 	 	Name:	 

 

B-1

 

EXHIBIT C

 

PRESS RELEASE

 

 

See attached.

 

 

C-1

 

EXHIBIT D

 

FORM OF INDEMNIFICATION AGREEMENT

 

See attached.

 

 

D-1

 

 

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT made and entered into as of this 29th day of June, 2016 (“Agreement”), by and between DEVRY EDUCATION GROUP INC., a Delaware corporation, and its wholly owned subsidiaries (“Company”), and Michael W. Malafronte (“Indemnitee”).

 

WHEREAS, highly competent persons are reluctant to serve publicly-held corporations as directors or in other capacities unless they are provided with adequate protection through insurance and indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; and

 

WHEREAS, the difficulties from time to time in obtaining adequate insurance on a cost effective basis and uncertainties relating to indemnification increase the difficulty of attracting and retaining such persons; and

 

WHEREAS, the Board of Directors has determined that the inability to attract and retain such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; and

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

 

WHEREAS, this Agreement is being entered into as part of the Indemnitee’s total compensation for serving as a director; and

 

WHEREAS, Indemnitee is willing to serve or to continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified;

 

NOW THEREFORE, in consideration of the premises and the covenants contained herein, the Company and the Indemnitee do hereby covenant and agree as follows:

 

Section 1. Services by Indemnitee. Indemnitee agrees to serve as a director of the Company and agrees to the indemnification provisions provided for herein. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or other obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in any such position.

 

Section 2. Indemnification. The Company shall indemnify Indemnitee to the fullest extent permitted by applicable law in effect on the date hereof or as such laws may from time to time be amended. Without diminishing the scope of the indemnification provided by this Section 2, the rights of indemnification of Indemnitee provided hereunder shall include but shall not be limited to those rights set forth hereinafter, except to the extent expressly prohibited by applicable law.

 

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Section 3. Action or Proceeding Other Than an Action by or in the Right of the Company. Indemnitee shall be entitled to the indemnification rights provided in this Section if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, other than an action by or in the right of the Company, by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. Pursuant to this Section, Indemnitee shall be indemnified against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with such action, suit or proceeding (including, but not limited to, the investigation, defense or appeal thereof), if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful; provided, however, the Company shall not be obligated to indemnify the Indemnitee in connection with any actions, suits or proceedings if the indemnification relates to any “short-swing” disgorgement or similar liability arising under Section 16(b) or 16(c) of the Securities Exchange Act of 1934, as amended, or any rules or regulations promulgated thereunder.

 

Section 4. Actions by or in the Right of the Company. Indemnitee shall be entitled to the indemnification rights provided in this Section if Indemnitee is a person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. Pursuant to this Section, Indemnitee shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided, however, that no such indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Company, unless, and only to the extent that, the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite such adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as such court shall deem proper. The Company shall not be obligated to indemnify the Indemnitee in connection with any actions, suits or proceedings if the indemnification relates to any “short-swing” disgorgement or similar liability arising under Section 16(b) or 16(c) of the Securities Exchange Act of 1934, as amended, or any rules or regulations promulgated thereunder.

 

Section 5. Indemnification for Costs, Charges and Expenses of Successful Party. Notwithstanding the other provisions of this Agreement, to the extent that Indemnitee has served as a witness on behalf of the Company or has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 3 and 4 hereof, or in defense of any claim, issue or matter therein, Indemnitee shall be indemnified against all expenses (including attorneys’ fees) actually and reasonably incurred by Indemnitee in connection therewith.

 

2

 

Section 6. Partial Indemnification. If Indemnitee is only partially successful in the defense, investigation, settlement or appeal of any action, suit, investigation or proceeding described in Section 3 or 4 hereof, and as a result is not entitled under Section 5 hereof to indemnification by the Company for the total amount of the expenses (including attorneys’ fees), costs, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him, the Company shall nevertheless indemnify Indemnitee, as a matter of right pursuant to Section 5 hereof, to the extent Indemnitee has been partially successful.

 

Section 7. Determination of Entitlement to Indemnification. Upon written request by Indemnitee for indemnification pursuant to Section 3 or 4 hereof, the entitlement of Indemnitee to indemnification pursuant to the terms of this Agreement shall be determined by the following person or persons who shall be empowered to make such determination: (a) the Board of Directors of the Company by a majority vote of the Disinterested Directors (as hereinafter defined), even though less than a quorum; or (b) by a committee of Disinterested Directors designated by a majority vote of such Directors, even though less than a quorum; or (c) if there are no Disinterested Directors, or if the Disinterested Directors direct by majority vote, by Independent Counsel (as hereinafter defined) in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; or (d) by the stockholders. Such Independent Counsel shall be selected by the Disinterested Directors by majority vote and approved by Indemnitee. Upon failure of the Board of Directors to so select such Independent Counsel or upon failure of Indemnitee to so approve, such Independent Counsel shall be selected by the Chancellor of the State of Delaware or such other person as the Chancellor shall designate to make such selection. Such determination of entitlement to indemnification shall be made no later than 60 days after receipt by the Company of a written request for indemnification. Such request shall include documentation or information which is necessary for such determination and which is reasonably available to Indemnitee. Any costs or expenses (including attorneys’ fees) incurred by Indemnitee in connection with Indemnitee’s request for indemnification hereunder shall be borne by the Company. The Company hereby indemnifies and agrees to hold Indemnitee harmless therefore irrespective of the outcome of the determination of Indemnitee’s entitlement to indemnification. If the person making such determination shall determine that Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person shall reasonably prorate such partial indemnification among such claims, issues or matters.

 

Section 8. Presumptions and Effect of Certain Proceedings. The Secretary of the Company shall, promptly upon receipt of Indemnitee’s request for indemnification, advise in writing the Board of Directors or such other person or persons empowered to make the determination as provided in Section 7 that Indemnitee has made such request for indemnification. Upon making such request for indemnification, Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall have the burden of proof in the making of any determination contrary to such presumption. If the person or persons so empowered to make such determination shall have failed to make the requested indemnification within 60 days after receipt by the Company of such request, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be absolutely entitled to such indemnification, absent actual and material fraud in the request for indemnification. The termination of any action, suit, investigation or proceeding described in Section 3 or 4 hereof by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself (a) create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful or (b) otherwise adversely affect the rights of Indemnitee to indemnification except as may be provided herein.

 

3

 

Section 9. Advancement of Expenses and Costs. All reasonable expenses and costs incurred by Indemnitee (including attorneys’ fees, retainers and advances of disbursements required of Indemnitee) shall be paid by the Company in advance of the final disposition of such action, suit or proceeding at the request of Indemnitee within twenty days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time. Indemnitee’s entitlement to such expenses shall include those incurred in connection with any proceeding by Indemnitee seeking an adjudication pursuant to this Agreement. Such statement or statements shall reasonably evidence the expenses and costs incurred by him in connection therewith and shall include or be accompanied by an undertaking by or on behalf of Indemnitee to repay such amount if it is ultimately determined that Indemnitee is not entitled to be indemnified against such expenses and costs by the Company as provided by this Agreement or otherwise.

 

Section 10. Remedies of Indemnitee in Cases of Determination not to Indemnify or to Advance Expenses. In the event that a determination is made that Indemnitee is not entitled to indemnification hereunder or if payment has not been timely made following a determination of entitlement to indemnification pursuant to Sections 7 and 8, or if expenses are not advanced pursuant to Section 9, Indemnitee shall be entitled to a final adjudication in an appropriate court of the State of Delaware or any other court of competent jurisdiction of Indemnitee’s entitlement to such indemnification or advance. The Company shall not oppose Indemnitee’s right to seek any such adjudication. Such judicial proceeding shall made de novo and Indemnitee shall not be prejudiced by reason of a determination (if so made) that Indemnitee is not entitled to indemnification. If a determination is made or deemed to have been made pursuant to the terms of Section 7 or Section 8 hereof that Indemnitee is entitled to indemnification, the Company shall be bound by such determination and is precluded from asserting that such determination has not been made or that the procedure by which such determination was made is valid, binding and enforceable. The Company further agrees to stipulate in any such court that the Company is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary. If the court shall determine that Indemnitee is entitled to any indemnification hereunder, the Company shall pay all reasonable expenses (including attorneys’ fees) and costs actually incurred by Indemnitee in connection with such adjudication (including, but not limited to, any appellate proceedings).

 

Section 11. Other Rights to Indemnification. The indemnification and advancement of expenses (including attorneys’ fees) provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may now or in the future be entitled under any provision of the Company’s Certificate of Incorporation or By-Laws, any agreement, a vote of stockholders or of the Disinterested Directors, any provision of law or otherwise.

 

4

 

Section 12. Attorneys’ Fees and Other Expenses to Enforce Agreement. In the event that Indemnitee is subject to or intervenes in any proceeding in which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or in part in such action, shall be entitled to recover from the Company, and shall be indemnified by the Company against, any actual expenses for attorneys’ fees and disbursements reasonably incurred by him.

 

Section 13. Duration of Agreement. This Agreement shall continue until and terminate upon the later of (a) 10 years after Indemnitee has ceased to occupy any of the positions or have any of the relationships described in Section 3 or 4 of this Agreement or (b) the final termination of all pending or threatened actions, suits, proceedings or investigations with respect to Indemnitee. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors, administrators or other legal representatives.

 

Section 14. Supersedes Prior Agreements. This Agreement replaces and supersedes any other agreement or agreements, oral or written, that the Company may have with Indemnitee with respect to the subject matter covered by this Agreement.

 

Section 15. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

Section 16. Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original, but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 17. Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

Section 18. Definitions. For purposes of this Agreement:

 

5

 

(a) “Disinterested Director” shall mean a director of the Company who is not or was not a party to the action, suit, investigation or proceeding in respect of which indemnification is being sought by Indemnitee.

 

(b) “Independent Counsel” shall mean a law firm or a member of a law firm that neither is presently nor in the past five years has been retained to represent (i) the Company or Indemnitee in any matter material to either such party or (ii) any other party to the action, suit, investigation or proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement.

 

(c) “other entity” shall include employee benefit plans, references to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; and references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company”.

 

Section 19. Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 20. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter which may be subject to indemnification covered hereunder, either civil, criminal or investigative.

 

Section 21. Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) on the fifth business day after deposit with the United States Post Office, by registered or certified mail, postage prepaid, (c) on the next business day after dispatch via nationally recognized overnight courier or (d) upon confirmation by the party to be put on notice of receipt of transmission by facsimile, all addressed to the party to be notified at the address indicated for such party below, or at such other address as such party may designate by ten (10) days’ advance written notice to the other parties. Notices should be provided in accordance with this Section at the following addresses:

 

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(a)

	
 

	
if to Indemnitee, to:

	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
(b)

	
 

	
if to the Company, to:

	
 

	
 

	
 

	 
	
 

	
 

	
DEVRY EDUCATION GROUP INC.

	
 

	
 

	
3005 Highland Parkway

	
 

	
 

	
Downers Grove, Illinois 60515

	
 

	
 

	
 

	 
	
 

	
 

	
Attention: General Counsel

 

Section 22. Governing Law. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware.

 

7

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

 

 

	 	DEVRY EDUCATION GROUP INC.  	 
	 	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	Name: 	 	 
	 	Its: 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	INDEMNITEE  	 
	 	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	 	
Michael W. Malafronte

	 

 

[Signature Page to Indemnification Agreement]EXHIBIT 10.1

 

AMENDED and RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated Employment Agreement
(the “Agreement”) is entered into as of June 29, 2016 between Wilhelmina International, Inc. (the “Company”),
and William J. Wackermann (the “Employee”) and supersedes that certain Employment Agreement between the Company
and Employee executed to be effective January 26, 2016.

 

WHEREAS, the Company desires to employ the Employee,
and Employee desires to be employed by the Company, upon the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

ARTICLE 1

EMPLOYMENT

 

		1.1. 	Employment. The Company hereby employs the Employee and the Employee hereby
                                                             accepts employment by the Company for the period and upon the terms and conditions contained in this Agreement.

 

		1.2. 	Office and Duties.
                                         Beginning on the Start Date (as defined below), the Employee shall serve the Company
                                         and its affiliates as Chief Executive Officer of the Company, and shall perform all duties
                                         and functions reasonably appurtenant to such position and as lawfully directed by the
                                         Chairman of Wilhelmina International, Inc. (the “Chairman”) or the Board
                                         of Directors of the Company (the “Board”). The Company may from time
                                         to time redefine the duties of the Employee hereunder in furtherance of the business
                                         of the Company.

 

		1.3. 	Full Time Employment; Performance. During the term of employment under this Agreement,
the Employee shall devote on a full-time basis all of his time, energy, skill and best efforts to the performance of his duties
hereunder in a manner that will faithfully and diligently further the business and interests of the Company and its affiliates.
The Employee shall strictly comply with (i) the policies or written manuals of the Company, (ii) such other rules and regulations
as may be adopted from time to time by the Company or its parent which are applicable generally to the Company’s employees
and (iii) the lawful directives and instructions of the Chairman and the Board. It is understood that the Employee may, as a passive
investor, invest his own assets (subject to the limitation contained in Section 5.3) and may engage in civic, community and religious
activities provided such activities do not interfere with his duties as an employee of the Company or are inconsistent with his
duties and contractual obligations hereunder. Any for-profit board or advisory roles are not permitted unless first approved by
the Chairman or the Board.

 

		1.4. 	Place of Work. The Employee shall perform services under this Agreement at the
                                                                           Company’s principal office currently located in New York, New York, and at such other place or places as directed by
                                                                           the Chairman or the Board.

 

ARTICLE 2

TERM

 

		2.1 	Term. Unless otherwise terminated in accordance with Article 4, the term (as
may be extended herein, the “Term”) of this Agreement shall be for an initial period of twenty-four (24) months
from January 26, 2016 to January 26, 2018; provided that the term of this Agreement shall automatically extend (i.e., evergreen)
for additional twelve (12) month periods unless either party informs the other in writing of non-renewal no later than ninety (90)
days prior to the end of the initial twenty-four month period (or if the Agreement was extended, prior to end of any twelve month
renewal period). Employee’s actual start date with the Company following commencement of the Term (the “Start Date”)
shall be mutually determined by the parties.

 

    	Page 1

     

    

ARTICLE 3

COMPENSATION FOR EMPLOYMENT

 

		3.1. 	Base Salary. The Company shall pay the Employee an annualized salary of $500,000,
                                                                           less all applicable deductions for taxes, social security payments and similar deductions as required by law and the
                                                                           employee’s share of the cost of employee benefits as determined by the Company. The foregoing salary shall commence as
                                                                           of the Start Date and be payable to the Employee in accordance with the Company’s customary payroll practices.

 

		3.2. 	Bonus.
                                         The Employee shall be entitled to an annual bonus equal in amount to 7.5% of pre-bonus
                                         EBITDA between $4,000,000 and $5,000,000. The Employee shall be entitled to a second
                                         annual bonus equal in amount to 10% of pre-bonus EBITDA between $5,000,000 and $6,000,000.
                                         The Employee shall be entitled to a third annual bonus equal in amount to 15% of pre-bonus
                                         EBITDA which exceeds $6,000,000. The bonus will be determined based on the actual calendar
                                         year (i.e., full year 2016 and 2017, as applicable) EBITDA (earnings before interest,
                                         taxes, depreciation and amortization) of the Wilhelmina Entities (as defined below);
                                         provided that for purposes of the calculations hereunder, EBITDA of the Wilhelmina Entities
                                         shall (1) exclude (i.e., be determined before) payment of any cash bonus to Employee
                                         under this Section 3.2 and (2) include Employee’s base salary and other compensation
                                         related expense (other than cash bonus) hereunder, e.g., stock option expense and T&E,
                                         regardless of whether such amounts are accounted for as part of the Wilhelmina Entities
                                         for GAAP or tax purposes (“pre-bonus EBITDA”).

 

The timing of the payment of the foregoing bonus (if
applicable) shall be consistent with the Company’s customary practices with respect to the timing of bonus payments to its
employees, provided that payment of such bonus shall be made no earlier than following final determination of actual calendar year
EBITDA based on the Company’s annual audit. “Wilhelmina Entities” mean the 100% owned direct and indirect subsidiaries
of the Company. For purposes of illustration, if calendar year pre-bonus EBITDA was $6,500,000, Employee would receive a bonus
of $250,000 [$250,000 = (a) 7.5% of $1,000,000 plus (b) 10% of $1,000,000 plus (c) 15% of $500,000].

 

In the event the Employee ceases to be employed as of
a date other than the last day of a calendar year, the Employee shall be entitled to a partial bonus equal in amount to 7.5% of
pre-bonus EBITDA between $4,000,000 and $5,000,000; 10% of pre-bonus EBITDA between $5,000,000 and $6,000,000; and 15% of pre-bonus
EBITDA greater than $6,000,000, determined in each case based on trailing twelve-month period pre-bonus EBITDA as of the quarter
end immediately preceding the Employee’s last day of employment, multiplied by the number of calendar quarters immediately
preceding the Employee’s last day of employment divided by four; provided that Employee shall be eligible for a such bonus
only if the trailing twelve-month pre-bonus EBITDA is in excess of pre-bonus EBITDA for the preceding calendar year. For purposes
of illustration, if (i) employee worked through August 31, (ii) prior calendar year pre-bonus EBITDA was $6,000,000 and (iii) trailing
twelve month pre-bonus EBITDA is $8,000,000, Employee would receive a bonus of $237,500 = [$237,500 = sum of (a) 7.5% of $1,000,000
plus (b) 10% of $1,000,000 plus (c) 15% of $2,000,000, multiplied by 2/4].

 

    	Page 2

     

    

 

		3.3. 	Stock Option Awards. Employee shall receive an annual stock option award in the
                                                                           amount of 200,000 option shares under the Company’s 2015 Incentive Plan (the “Plan”) struck at the closing
                                                                           price of Company’s stock as of the date of grant. Each stock option award will vest ratably in five (5) equal
                                                                           increments beginning on the first anniversary of the date of grant. The first such grant shall be made promptly following the
                                                                           Start Date, and the second such grant shall be made on the anniversary of the Start Date. Subsequent grants shall be made in
                                                                           an amount and at a time as determined in the discretion of the Board. The form of such grants, including the terms and
                                                                           conditions therein, will be determined by Company consistent with the Plan.

 

		3.3. 	Payment and Reimbursement of Expenses. The Company shall pay or reimburse the
                                                                           Employee for reasonable business expenses incurred by the Employee in performing his obligations under this Agreement in
                                                                           accordance with the policies and procedures of the Company, provided that (i) Employee has obtained appropriate prior
                                                                           approval with respect to each expense, (ii) Employee properly accounts for and documents such expenses in accordance with the
                                                                           regular policies of the Company and (iii) Employee submits such documentation is a timely manner. Business class air fare
                                                                           will be permitted on international flights.

 

		3.4. 	Benefits.
                                         The Employee shall be entitled to participate in or receive benefits under any plan or
                                         arrangement made available by the Company to its employees generally (including any health,
                                         dental, disability, and life insurance programs), subject to and on a basis consistent
                                         with the terms, conditions and overall administration of such plans and arrangements.
                                         Any such plan or arrangement shall be revocable and subject to termination or amendment
                                         at any time.

 

		3.5. 	Vacation.
                                         The Executive shall be entitled to such holidays as the Board may from time to time determine
                                         and, in addition, shall be entitled to four (4) weeks paid vacation (20 working days),
                                         provided, however, that (a) any vacation time which is not used during the Employment
                                         year which accrued shall expire and be forfeited and (b) in no event shall the Company
                                         be obligated to pay or otherwise compensate the Executive for any accrued vacation time
                                         that has not been used prior to the expiration or earlier termination of this Agreement.
                                         Employee shall provide his supervisor with reasonable advance notice of dates Employee
                                         intends to use paid vacation days and the timing of any such vacation days shall be subject
                                         to the approval of his supervisor.

 

 

 

ARTICLE 4

TERMINATION

 

		4.1. 	Termination by the Company. The Company may terminate the employment of the
                                                                           Employee at any time for Cause or without Cause. For purposes hereof, “Cause” shall mean the occurrence of
                                                                           any of the following:

 

		(i)	without limiting the applicability of any other clause of this Section 4.1, any breach of this
Agreement that remains uncured within ten (10) days after a written demand for performance is delivered or sent to the Employee
identifying the manner in which Employee has not performed;

 

		(ii)	any violation of Article 5 or Section 6.8 of this Agreement by the Employee (it being understood
that no cure period shall apply).

 

		(iii)	Employee’s commission of a dishonest or fraudulent act in connection with his employment
or an act intended to result in personal enrichment of Employee at the expense of the Company, or the misappropriation of Company
property in the reasonable determination of the Board;

 

    	Page 3

     

    

 

		(iv)	the Employee’s intentional or willful disobedience of a lawful directive of the Board of
Directors (whether by commission or omission) or any policy of the Company;

 

		(v)	gross negligence or willful misconduct in the performance of the Employee’s duties or responsibilities
under this Agreement;

 

		(vi)	the Employee’s indictment on, formal charge of, conviction of, or plea of nolo contendere
to, (i) any misdemeanor involving dishonesty (such as theft, forgery, or fraud) or moral turpitude or (ii) any felony;

 

		(vii)	the Employee’s insobriety during working hours, in violation of standard Company policy or
use of illegal drugs in violation of standard Company policy; or

 

		(viii)	the death of the Employee, or the inability (with, in the case of disability, reasonable accommodation)
of the Employee for any reason to perform his duties hereunder for a continuous period of 30 days (60 days in the case of disability)
for reasons other than actions by the Company;

 

Any notice of discharge for Cause shall describe with
reasonable specificity the Cause for termination of Employee’s employment as well as the effective date of the termination.

 

		4.2. 	Termination by Employee. The Employee may terminate this Agreement, and his
                                                                                 employment hereunder, for “Good Reason” by providing the Company with written notice. After receipt of said
                                                                                 notice, the Company may, in its sole discretion, relieve the Employee of his duties prior to the expiration of any notice
                                                                                 period given without affecting the voluntary nature of the Employee’s termination. “Good Reason”
                                                                                 shall mean a reduction of Employee’s salary during the Term.

 

		4.3. 	Post-Termination Obligations to Employee. If the Company terminates the
                                                                                 employment of the Employee for Cause, or without cause, or if the Employee terminates his employment for Good Reason (or the
                                                                                 Employee otherwise voluntarily terminates his employment with the Company), the Company shall have no further liability or
                                                                                 obligation to the Employee under this Agreement or otherwise in connection with his employment hereunder, except for (i) any
                                                                                 unpaid salary accrued through the date of termination, (ii) any unreimbursed expenses properly incurred prior to the date of
                                                                                 termination or (iii) as specifically provided in Article 5; provided that, if the Company terminates the employment of
                                                                                 the Employee without Cause or the Employee voluntarily terminates his employment for Good Reason, then the Company shall
                                                                                 continue to pay the Employee his salary (net of withholding for federal and state income taxes, social security payments,
                                                                                 employee benefit costs and similar deductions) at the rate and in the manner set forth in Section 3.1 for the lesser of (a)
                                                                                 the Number of Qualifying Months (as defined below) after such termination or (b) the number of months remaining under the
                                                                                 Term of the Agreement (assuming no renewal would occur); provided further that the Company shall be entitled to suspend all
                                                                                 post-termination payments to the Employee during any period when the Employee is in breach of any of the covenants contained
                                                                                 in Article 5. For avoidance of doubt, any post termination payment of salary set forth in the immediately preceding
                                                                                 sentence (1) shall be in lieu of, and not in addition to, any payment to which the Executive may be entitled pursuant to
                                                                                 Section 5.3(ii), (2) are in lieu of all other benefits or claims that the Employee might assert against the Company, and (3)
                                                                                 are conditioned upon the Employee's execution of a full, complete, and binding release of the Company from any and all
                                                                                 liabilities arising in connection with his employment by the Company or the termination thereof, on a form acceptable to the
                                                                                 Company. For purposes of this Section 4.3, the “Number of Qualifying Months” equals (x) three (3)
                                                                                 months plus (y) for each twelve (12) month renewal period that has commenced under Section 2.1 of this Agreement, one (1)
                                                                                 month. For purposes of illustration: upon renewal of this Agreement following the initial twenty-four month period, the
                                                                                 Number of Qualifying Months shall increase from three (3) to four (4), upon renewal of this Agreement once again (i.e., for a
                                                                                 second twelve month renewal term), the Number of Qualifying Months shall increase to five (5), etc.

 

    	Page 4

     

    

 

ARTICLE 5

RESTRICTIVE COVENANTS

 

		5.1 	Performance of Services. Throughout his employment by the Company, the Employee agrees
to perform faithfully and industriously the duties assigned to him hereunder to the best of his ability, to devote substantial
business time and attention, and his best efforts, abilities, experience, and talent, to the positions and titles held and for
the business of the Company and its affiliates.

 

		5.2 	Confidentiality.

 

		(i)	For purposes of this Agreement:

 

		1.	“Confidential Information” means all trade secrets and non-public information
concerning the Company and its affiliates and/or their business (whether made available to Employee orally, visually, in writing,
or in electronic or other tangible form or otherwise and whether or not during working hours), including, but not limited to, business
plans, marketing strategies, customer or client lists or contact information, model or talent lists or contact information, scouting
plans or procedures, Contractual Information (as defined below), financial information and any other information regarding the
conduct of the Company’s business and operations.

 

		2.	“Contractual Information” means the terms set forth in the contracts and agreements
of the Company including (i) commission rates, service charge, terms of commencement and expiration and other terms set forth in
representation agreements and (ii) salary, bonus, expiration, restrictive covenants and other terms of any employment agreement,
including this Agreement.

 

		3.	“Talent” means model, entertainer, musician, artist, photographer, athlete or
other “talent” or celebrity, including any bands, “acts”, teams or entities affiliated with or compromising
the foregoing.

 

		(ii)	The Employee covenants and agrees that during the Term and all times thereafter he will not make
use of any Confidential Information of his own benefit or the benefit of any party other than the Company (including any entity
in competition with the Company), or disclose to any third party any Confidential Information, except (a) if ordered by judicial
process (provided that the Company is informed in advance and has an opportunity to obtain an appropriate protective order or take
other action as the Company deems appropriate, except if Employee is prohibited from doing so by court order or government agency
directive), (b) if any such disclosure is customary in fulfillment of Employee’s duties for the Company and done in good
faith in furtherance of the business of the Company and its affiliates or (c) to the extent authorized in writing by the Company.

 

    	Page 5

     

    

 

		(iii)	Employee covenants and agrees that during the Term and all times thereafter not to knowingly or
intentionally (1) download or export, print or copy, or otherwise transmit or deliver to any person or entity (including to or
through one’s own personal email account), any Confidential Information for use (whether personal or third party) other than
for the exclusive benefit of the Company and its business, (2) modify, remove, destroy or delete any Confidential Information contained
on Company’s systems in an unauthorized manner, including in any manner designed to undermine the integrity of such information
or (3) relocate the Company’s computer hardware or software off premises without proper authorization.

 

		(iv)	The Employee further covenants and agrees that, upon termination of his employment hereunder, he
will surrender to the Company all books, lists, records, documents and other similar Company property obtained by him or entrusted
to him during the course of his employment by the Company (together with all copies thereof) that contain any Confidential Information
or that were paid for by the Company, it being explicitly understood and agreed that all such books, records, lists, documents
and property are and shall remain the property of the Company.

 

		(v)	Employee acknowledges that to the extent the Employee has an obligation to any former employer
not to disclose trade secrets and/or other legally protected confidential information, Employee intends to honor such obligation
at all times while in the employ of the Company. Specifically, Employee represents and agrees that Employee has not and will not
knowingly use for the benefit of the Company and its affiliates, or disclose to any person employed by the Company, any trade secrets
or other legally protected confidential information of any former employer.

 

		5.3 	Non-Compete.

 

		(i)	Employee agrees that during the Term and continuing for a period of twelve (12) months thereafter
(the “Restricted Period”) (regardless of the reason or basis of the termination of employment and regardless
of whether such termination was voluntary or involuntary) the Employee will not own, engage in, manage, operate, finance, join,
control, or participate in the ownership, management, operation, financing or control of, or act or be connected as an officer,
director, employee, agent, representative, consultant, partner, joint venturer, stockholder, member, beneficiary or otherwise with,
any Competing Business (defined below). For purposes of this Agreement, “Competing Business” means any business
or enterprise (1) that is engaged in (a) the business of representing, promoting and/or managing the careers or professional opportunities
of, models or other Talent or (b) any other business in which the Company and its affiliates is materially engaged and (2) which
operates within one hundred and fifty (150) miles of any location where the Company or any of its affiliates have operated at any
time during the period of Employee’s employment with the Company and its affiliates.

 

		(ii)	Notwithstanding anything to the contrary contained in Section 5.3(i), except in the case where
Employee voluntarily terminated his employment with the Company other than for Good Reason or the Company terminated Employee’s
employment for Cause, the restrictive covenant set forth in Section 5.3(i) shall have no effect following the cessation of Employee’s
employment with the Company and its affiliates unless the Company continues to pay Employee his salary (net of withholding for
federal and state income taxes, social security payments, employee benefit costs and similar deductions) at the rate and the manner
set forth in Section 3.1; provided that all or any portion of any such salary payment may be paid within fifteen days of any bi-weekly
regular payroll date of the Company; provided further that the Company shall be entitled to suspend a post-termination payments
to the Employee and still enforce the provisions of 5.3(i) during any period when the Employee is in breach of such covenant. For
avoidance of doubt, any determination to make the foregoing payments is in the sole and absolute discretion of the Company and
may be terminated by the Company at any time.

 

    	Page 6

     

    

 

		5.4 	Nonsolicitation. Employee agrees that during the Restricted Period (regardless of
the reason or basis of the termination of employment and regardless of whether such termination was voluntary or involuntary),
Employee shall not:

 

		(i)	solicit, induce or in any manner attempt to solicit or induce (or assist any third party in soliciting
or inducing) any person employed by, or acting as a consultant, independent contractor or agent of, the Company to terminate such
person’s employment or other relationship, as the case may be, with the Company;

 

		(ii)	solicit or induce, or in any manner attempt to solicit or induce (or assist any third party in
soliciting or inducing), (a) any model or other Talent represented by the Company to terminate, modify or not renew any contract,
arrangement or relationship with the Company or (b) any model or other Talent with whom the Company is in discussions with respect
to representation (or was in discussions with respect to representation at any time within the twelve months prior to the cessation
of Employee’s employment with the Company) not to enter into a contract, arrangement or relationship with the Company;

 

		(iii)	solicit or divert, or in any manner attempt to solicit or divert (or assist any third party in
soliciting or diverting), or otherwise accept as a customer or client, any customer or client of the Company, or request, advise
or otherwise induce (or assist any third party in party in inducing) any customer or client of the Company to withdraw, curtail
or cancel such customer’s business with the Company; or

 

		(iv)	solicit or induce (or assist any third party in soliciting or inducing) any mother agents, licensees
or other partners, suppliers or other counterparties to terminate, modify or not renew any contract, arrangement or relationship
with the Company, or any prospective mother agents, licensees or other partners, suppliers or other counterparties not to enter
into a contract, arrangement or relationship with the Company.

 

		5.5 	Ownership of Information, Inventions and Original Work. The Employee agrees that
all records and documents embodying any Confidential Information or pertaining to the existing or contemplated scope of the Company’s
business, whether conceived, prepared or developed by the Employee, the Company or otherwise, either alone or with others, are
the exclusive property of the Company. Without limiting the foregoing, the Employee agrees that that any creative works, photos,
discoveries, designs, inventions, improvements, modifications, enhancements, know-how and other information conceived, created
or developed by Employee, either alone or with others, during his employment by the Company and that reasonably comes within the
existing or contemplated scope of the Company’s business (collectively referred to as “Creative Work Product”)
are the exclusive property of the Company. The Employee shall promptly disclose to the Company any such Creative Work Product,
and cooperate with the Company in obtaining any intellectual property rights (including patents or copyrights) on such Creative
Work Product as deemed advisable by the Company. Any Creative Work Product disclosed by the Employee to the Company or any third
party within one year following the termination of employment from the Company shall be deemed to be owned by the Company under
the terms of this Agreement, unless conclusively established by the Employee to have been conceived after such termination.

 

    	Page 7

     

    

 

		5.6 	Enforceability of Covenants. The following provisions shall apply to the covenants
of the Employee set forth above in this Article 5:

 

		(i)	The Employee expressly acknowledges that the remedy at law for any breach of Article 5 may
be inadequate and that upon any such breach or threatened breach, the Company shall be entitled as a matter of right to injunctive
relief in any court of competent jurisdiction, in equity or otherwise, and to enforce the specific performance of the Employee’s
obligations under those provisions without the necessity of proving the actual damage to the Company or the inadequacy of a legal
remedy. The Employee hereby consents to the granting of such relief (including temporary restraining orders after reasonable notice
prior to application therefor) by any court of competent jurisdiction. The rights conferred upon the Company hereby shall not be
exclusive of, but shall be in addition to, any other rights or remedies that the Company may have at law, in equity or otherwise.

 

		(ii)	It is the intent and understanding of each party hereto that if in any action before any court
or agency legally empowered to enforce the covenants contained in this Article 5 or any term, restriction, covenant, or
promise contained herein is found to be unreasonable and accordingly unenforceable, then such term, restriction, covenant or promise
shall be deemed modified to the extent necessary to make it enforceable by such court or agency.

 

		(iii)	During any period in which the Employee is in breach of the covenants contained in Article 5,
the time period of those covenants shall be extended for an amount of time that the Employee is in breach of the covenants.

 

		(iv)	The covenants contained in this Article 5 shall continue in effect pursuant to and to the
extent consistent with their terms, notwithstanding the termination of the Employee’s employment pursuant to this Agreement
or the expiration of the Term.

 

		(v)	All references to the Company in this Article 5 shall be deemed to refer to the Company
and its affiliates.

 

		(vi)	Employee acknowledges that the Company would not have extended employment to Employee in the absence
of Employee’s agreement to the terms of this Article 5.

 

 

ARTICLE 6

GENERAL

 

		6.1 	Governing Law.  This Agreement shall be governed by, construed, interpreted and applied
in accordance with the laws of the State of New York, without giving effect to any conflict of laws rules that would refer the
matter to the laws of another jurisdiction. All disputes and controversies between the parties hereto arising out of or in connection
with this Agreement shall be handled at a proceeding whose situs is in New York County, New York. At the election of the Company
or Employee, any disputes and controversies under this Agreement between the parties hereto will be submitted to a three person
arbitration panel under the rules of the American Arbitration Association. If the Company or Employee elects to arbitrate, the
decision of such arbitration panel shall be binding on the parties hereto (although each party shall retain his right to appeal
any questions of law arising at the hearing), and judgment may be entered thereon in any court having jurisdiction and following
this Agreement. The costs of arbitration, including any administration fee and the costs for the use of facilities during the hearings,
shall be borne equally by the parties.

 

    	Page 8

     

    

 

		6.2 	Binding Effect. All of the terms and provisions of this Agreement shall be binding
upon and inure to the benefit and be enforceable by the respective heirs, representatives, successors (including any successor
as a result of a merger or similar reorganization) and permitted assigns of the parties hereto, except that the duties and responsibilities
of the Employee hereunder are of a personal nature and shall not be assignable in whole or in part by the Employee, and the Company
may not assign its rights, duties, or responsibilities without the consent of the Employee.

 

		6.3 	Notices. All notices required to be given under this Agreement shall be in writing
and shall be deemed to have been given and received when personally delivered, or when mailed by registered or certified mail,
postage prepaid, return receipt requested, or when sent by overnight delivery service or when emailed, addressed as follows:

 

 

	 	If to the Employee:     	
        William J. Wackermann

        2 Beekman Place

        New York, NY 10022

        Email: bill.wackermann@gmail.com

         

	 	If to the Company:	
        Wilhelmina International, Inc.

        200 Crescent Court, Suite 1400

        Dallas, Texas 75201

        Attn: Mark Schwarz

        Email: mark.schwarz@wilhelmina.com

         

Such addresses may be changed from time to
time by written notice to the other party.

 

		6.4 	Entire Agreement; Modification. This Agreement constitutes the entire agreement of
the parties hereto with respect to the subject matter hereof, and supersedes all other agreements (oral or written) with respect
to the subject matter hereof. This Agreement may not be modified or amended in any way except in writing by the parties hereto.

 

		6.5 	Duration. Notwithstanding the termination of the Employee’s employment by the
Company, this Agreement shall continue to bind the parties for so long as any obligations remain under the terms of this Agreement.

 

		6.6 	Attorney Fees. If any action at law or in equity, including an action for injunction
or declaratory relief, is brought to enforce or interpret the provisions of this Agreement, each party shall pay their own legal
fees and all of their costs and expenses of litigation.

 

		6.7 	Non-Waiver. The failure by the Company to complain of any act or omission on the
part of the Employee, no matter how long the same may continue, shall not be deemed to be a waiver by the Company of any of its
rights under this Agreement. The waiver by the Company at any time, expressed or implied, of any breach or attempted breach of
this Agreement shall not be deemed a waiver or a consent to any subsequent breach or attempted breach of the same or any other
type. If any action by the Employee shall require the consent or approval of the Company, such consent to or approval of the Company
to such action on any one occasion shall not be deemed a consent to or approval of any other action on the same or any subsequent
occasion.

 

    	Page 9

     

    

 

		6.8 	Severability. Whenever possible, each provision of this Agreement shall be interpreted
in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the extent of such provision or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Agreement.

 

		6.9 	Subsidiaries and Affiliates. Wherever the term affiliate (with reference to the Company)
is used in the Agreement, it shall include all subsidiaries of Wilhelmina International, Inc. and all other entities controlled
or operated by Wilhelmina International, Inc., as such subsidiaries and entities may exist from time to time.

 

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

 

 

 

[SIGNATURE PAGES FOLLOW]

 

 

 

 

 

 

 

    	Page 10

     

    

IN WITNESS WHEREOF, the parties hereto, intending
to be legally bound, have duly executed this Agreement as of the day and year first written above.

 

 

EMPLOYEE:

 

 

	By:  	/s/ WILLIAM J. WACKERMANN	 	 
	 	 	 	 
	 	William J. Wackermann	 	 
	 	 	 	 
	 	 	 	 
	COMPANY:	 	 
	 	 	 	 
	By:  	/s/ MARK E. SCHWARZ	 	 
	 	 	 	 
	 	Mark E. Schwarz	 	 
	 	Executive Chairman	 	 
	 	 	 

 

 

 

 

 

Page 11

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