Document:

Exhibit
10.53(b)

 

 

Executive
Deferred Compensation Agreement

 

The Executive Deferred Compensation and
Consulting Agreement, better known as EDCA, is a non-qualified, unfunded,
supplemental pension plan for key executives.

 

Each year benefits are accrued at one and
one-half percent of that year’s base salary plus bonus payment and added to the
prior year accrual balance. That accumulated benefit is then given a present
value based on group annuity mortality tables and the current PBGC immediate
interest rate. At retirement the monthly accrued present value benefit is
payable as a 10-year certain and life annuity. The Plan also provides for the
continuation of life, medical and dental benefits at retirement based on
certain criteria as outlined in the Agreement.

EXECUTIVE
DEFERRED COMPENSATION

AND
CONSULTING AGREEMENT

 

THIS AGREEMENT is entered into as of Apri1
22, 1996 (“Effective Date”), at Pleasanton, California, between HEXCEL CORPORATION, a Delaware corporation (“Hexcel”), and Joseph
H. Shaulson (“Employee”), on the basis of the following facts and
understandings:

 

RECITALS

                                A.            Employee is a key executive of
Hexcel and has made substantial contributions to its success.

 

                                B.            Hexcel wishes to provide certain
retirement, death and similar benefits for Employee in the expectation that
such benefits will serve as an incentive to Employee to continue in the employ
of Hexcel until his retirement or death and as an incentive to protect Hexcel’s
trade secrets and other confidential and proprietary information. Hexcel also
wishes to receive the benefits of Employee’s advice and consultation following
retirement, which will be compensated for by the payments to be made hereunder.

 

                                C.            Hexcel’s Board of Directors has
authorized it to enter into this Executive Deferred Compensation Agreement with
Employee.

 

AGREEMENT

NOW,
THEREFORE, in consideration of the services rendered in the
past and to be rendered in the future by Employee, the parties hereto agree as
follows:

 

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1.             RETIREMENT
AND CONSULTING INCOME

 

                                1.1.          Normal Retirement.  If Employee retires or otherwise ceases to be
employed by Hexcel on or after his 65th birthday, Employee shall
receive a monthly amount of consulting and retirement income payment, without any
specification as to the amount allocated to either. Such payments shall
commence the calendar month following Employee’s retirement or other
termination of employment and shall continue for one hundred twenty (120) such
payments or until payment for the month in which Employee dies, whichever is
the last to occur.

 

                                                Retirement
Before Age 65.  If Employee retires
or otherwise ceases to be employed by Hexcel after his 40th birthday
but prior to his 65th birthday, his consulting and retirement income
payments, without any specification as to the amount allocated to either,
computed pursuant to Section 1.2, shall commence the calendar month following
his 65th birthday and shall continue for one hundred twenty (120)
such payments or until payment for the month in which Employee dies, whichever
is the last to occur. Should the Employee request that such payments commence
at an earlier date and Hexcel, in its sole and absolute discretion, consents
thereto in writing, the monthly amounts payable shall be the amount actuarially
reduced to reflect the appropriate benefit according to the employee’s age.

 

                                Employee
shall not be entitled to any benefits under this Agreement if Employee ceases
to be employed by Hexcel prior to attaining his 40th birthday.

 

                                1.2.          The monthly consulting and retirement
income payments shall be equal to one-twelfth (1/12th) of the following: One
and one-half percent (1 1/2%) of the aggregate base salary and incentive cash
bonuses paid to Employee by Hexcel subsequent to the Effective Date, multiplied
by a fraction, the numerator of which shall be the total number of 

 

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whole calendar months of Employee’s
employment by Hexcel subsequent to the Effective Date and the denominator of
which will be 67.  In no event shall such
fraction exceed 1 (67/67).

 

                1.3.          Benefits.  In
lieu of the payments described in Sections 1.1 and 1.2, and provided that
Hexcel, in its sole and absolute discretion, consents thereto in writing,
Employee may elect any other form of retirement benefit actuarially equivalent
thereto. Employee’s election of benefits under this Section 1.3 shall not
relieve Employee of his obligation under Paragraph 3.

 

2.             DEATH
BENEFITS.  If Employee dies after his
40th birthday but prior to his 65th birthday and prior to
commencement of payments to him pursuant to Sections 1.1 or 1.2, benefit will
be payable to his designated beneficiary in lieu of any amount specified in
Paragraph 1, a monthly pension for the balance of such beneficiary’s lifetime
which is actuarially equivalent to the lump sum death benefit. In lieu of said
monthly pension, on the condition that Hexcel, in its sole discretion, consents
thereto in writing, such beneficiary may elect any other form of pension
benefit actuarially equivalent thereto, based on the actuarial assumptions,
such election to be made by written notice to Hexcel, in form satisfactory to
Hexcel, within sixty (60) days following the Employee’s death.

 

                                If
Employee dies after commencement of payments to him pursuant to Sections 1.1 or
1.2, but prior to the receipt of 120 such payments or after his 65th
birthday, but prior to receiving the first payment under Section 1.1, his
designated beneficiaries shall receive such payments until the aggregate number
of payments to Employee and his beneficiary totals 120.

 

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3.             AGREEMENTS
OF EMPLOYEE.  As a material part of
the consideration for this Agreement and as a condition precedent to Hexcel’s
obligation to make each payment to Employee or Employee’s successors hereunder,
Employee agrees as follows:

 

                                3.1.          Consultation Services.  For a period of ten years following the
effective date of retirement or other termination of employment, Employee shall
render consultation services to Hexcel from time to time upon request of
Hexcel, in all areas of Hexcel’s business; provided, however, that Hexcel shall
only make such requests at reasonable times and locations in light of Employee’s
other commitments, and upon reasonable prior notice; and provided further that
the extent of said consultation services shall be limited to not more than ten
(10) working days (on the basis of eight-hour work days) per year unless agreed
to by Employee. The parties acknowledge that Employee, while providing
consultation services hereunder, will be acting in the capacity of an
independent contractor and not an employee, and Hexcel shall not have the power
to direct or control the manner in which Employee performs his duties as
consultant. Hexcel shall reimburse Employee for any expenses incurred by
Employee in carrying out his obligations, provided such expenses were approved
in advance by Hexcel in writing.

 

                                3.2.          Competitive Activity.   Employee
acknowledges that the pursuit of Competitive Activity, as defined below, would
necessarily involve the use or disclosure of Confidential Information. To
forestall such disclosure, use, and breach, to protect Hexcel’s benefits under
Section 3.1, and in consideration of the benefits provided Employee under Sections
l, Employee agrees that for a period of ten (10) years after termination of his
employment, or so long as he is receiving benefits under this Agreement,
whichever is the shorter period, he shall not, directly or indirectly, (i)
divert or attempt to divert from Hexcel or 

 

4

 

its successors, assigns, or affiliated companies (“Hexcel Companies”)
any business of any kind in which it or they are engaged at the time of
Employee’s termination or any business acquired by one of the Hexcel Companies
within six months after such termination if said acquisition was in the process
of negotiation at the time of such termination (hereinafter collectively
designated “Hexcel’s Business”), including, without limitation, the
solicitation of or interference with any of its or their customers; (ii)
solicit for employment any person employed by any of the Hexcel Companies; or
(iii) engage (as a partner, substantial owner, employee, associate, consultant,
agent or otherwise) in any business activity that is or may be competitive with
Hexcel’s Business in any county of any state or in any territory or foreign
country where any of the Hexcel Companies conducts any portion of Hexcel’s
Business (“Competitive Activity”), unless Employee can prove that any action
taken in contravention of this subsection 3.2(iii) was done without the use in
any way of Confidential Information.

 

4.             CONDITIONS
TO PAYMENT OF COMPENSATION.

 

                4.1.          No Vested Benefit.  The parties acknowledge that the sums payable
to Employee hereunder increase pursuant to the formula set forth in Section 1.2
based upon the length of Employee’s employment with Hexcel - i.e., Employee
receives credit in such formulas over the period of his employment. Hexcel may,
at any time upon thirty (30) days’ prior written notice to Employee, terminate
Employee’s right to receive such credit for future employment with Hexcel,
which shall not, however, affect such credit accrued up to the effective date
of such termination. Notwithstanding such employment credit, the amounts
computed in accordance with such formulas are payable to Employee only on the
terms and subject to the conditions contained in this Agreement, including,
without limitation, the conditions specified in Sections 4.2 and 4.3.

 

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                4.2.          Termination of Employment.  Causes. 
Hexcel’s obligation to make payments to Employee hereunder is subject to
the condition precedent that Hexcel has not terminated Employee’s employment by
reason of Employee’s theft, fraud, embezzlement or felony, provided that the
foregoing is directly connected with his employment and Hexcel determines, in
its sole and absolute discretion, that such act is inimical to its best
interests, or by reason of violation of Section 3.2 hereof, or for wrongfully
disclosing any secret process or imparting any confidential information, or
intentionally doing any other act materially inimical to the best interests of
Hexcel. In case of any such termination of Employee’s employment by Hexcel, all
of Employee’s rights and benefits hereunder shall terminate.

 

                4.3.          Breaches of Agreement.  Hexcel’s obligation to make payments to
Employee hereunder is subject to the further conditions precedent (a) that
Employee has not breached or violated any term, convenant or provision of this
Agreement, including, without limitation, those set forth in Section 3.2, and
(b) Employee has not engaged in any of the acts mentioned in Section 4.2 while
an employee of Hexcel, which acts are discovered subsequent to Employee’s
retirement or other termination of employment. In case of any such breach or
violation under clause (a) or if Employee has engaged in the acts referred to
in clause (b) all of Employee’s rights and benefits hereunder shall terminate.

 

                4.4.          Preservation of Remedies.  In addition to the conditions precedent to
Hexcel’s obligations hereunder for any payments or benefits, Hexcel shall also
be entitled to all of its legal and equitable remedies resulting from any
breach or violation of this Agreement by Employee, including, without
limitation, recovery from Employee of all damages resulting from such breach or
violation.

 

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5.             CHANGE
IN CONTROL.  If there is a change of
control of Hexcel, Employee’s right to receive payments the effective date of
such change in control shall vest. Employee shall have the option to receive a
lump sum payment equal to the present value of such payments within thirty (30)
days of such change in control, or to receive payments pursuant to the terms of
Section 1.

 

                                5.1           The term “Change in Control” shall mean any of the
following events:

 

                                                (a)
(i)       any Person is or becomes the
Beneficial Owner of 20% or more of either (x) the then outstanding common stock
of the Company (the “Outstanding Common Stock”) or (y) the combined voting
power of the then outstanding securities entitled to vote generally in the
election of directors of the Company (the “Total Voting Power”), excluding,
however, the following: (1) any acquisition by the Company or any of its
affiliates or (2) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its affiliates; and
(ii) Ciba Beneficially Owns, in the aggregate, a lesser percentage of the Total
Voting Power than such Person Beneficially Owns; or

 

                                                (b)
          a change in the composition of
the Board such that the individuals who, as of the date of the adoption of the
Plan by the Board, constitute the Board (such individuals shall be hereinafter
referred to as the “Incumbent Directors”) cease for any reason to constitute at
least a majority of the Board; provided, however, for purposes of this
definition, that any individual who becomes a director subsequent to such date,
whose election, or nomination for election by the Company’s stockholders, was
made or ­approved pursuant to the Governance Agreement or by a vote of at least
a majority of the Incumbent Directors (or directors whose election or
nomination for election was previously so approved) shall be considered a
member of the Incumbent Board; but, provided, further, that any such 

 

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individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on
behalf of a person or legal entity other than the Board shall not be considered
a member of the Incumbent Board; or

 

                                                (c)           the approval by the stockholders of
the Company of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (“Corporate
Transaction”); excluding, however, such a Corporate Transaction (i) pursuant to
which all or substantially all of the individuals and entities who are the
Beneficial Owners, respectively, of the Outstanding Common Stock and Total
Voting Power immediately prior to such Corporate Transaction will Beneficially
Own, directly or indirectly, more than 50%, respectively, of the outstanding
common stock and the combined voting power of the then outstanding securities
entitled to vote generally in the election of directors of the company
resulting from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership
immediately prior to such Corporate Transaction of the Outstanding Common Stock
and Total Voting Power, as the case may be, or (ii) after which no Person
Beneficially Owns a greater percentage of the combined voting power of the then
outstanding securities entitled to vote generally in the election of directors
of such corporation than does Ciba; or

 

                                                (d)           Ciba shall become the Beneficial
Owner of more than 57.5% of the Total Voting Power; or

 

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                                                (e)           the approval by the stockholders of
the Company of a complete liquidation or dissolution of the Company:

 

6.             RIGHTS
OF PARTIES.

 

                6.1.          Change
of Beneficiary.  Employee shall have
the right at any time to change the person or persons designated as beneficiary
or contingent beneficiary on the Beneficiary Designation form attached hereto
or by written notice to Hexcel in form satisfactory to Hexcel. Such change of
beneficiary shall become effective upon receipt and approval by Hexcel. If
Employee is married, such change of beneficiary shall be subject to the written
consent of Employee’s spouse.

 

                                6.2.          No Employment Agreement.  Nothing contained in this Agreement shall be
construed as giving to Employee the right to continued employment with Hexcel.

 

                                6.3.          Other Retirement Plans.  Nothing in this Agreement shall affect any
right the Employee may otherwise have to participate in or under any retirement
plan of Hexcel or other entity.

 

7.             NOTICES.
 Any notice required or permitted to be
given under this Agreement shall be sufficient if in writing and sent by
prepaid certified or registered mail to his last known residence in the case of
Employee, or its principal office in the case of Hexcel.

 

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8.             TRANSFER
OF INTEREST.  Except as otherwise
expressly provided herein, Employee agrees, on behalf of his heirs, legatees,
personal representatives and designated beneficiaries, that this Agreement and
the rights, interests and benefits hereunder shall not be sold, assigned,
conveyed, hypothecated, or otherwise transferred, and no such interest shall be
subject to any liabilities or obligations of any bankruptcy proceedings, claims
or creditors, attachment, garnishment, execution, levy or other legal process
against any such person or his property, provided, however, that if Employee is
indebted to Hexcel for any reason whatsoever at the time of any distribution or
distributions, Hexcel shall have the right to apply so much of such
distribution as may be necessary to satisfy Employee’s indebtedness to Hexcel.

 

9.             ARBITRATION.

 

                                9.1.          Arbitrable Claims.  All disputes between Employee (and his
attorneys, successors, and assigns) and Hexcel (and its affiliates,
shareholders, directors, officers, employees, agents, successors, attorneys,
and assigns) of any kind whatsoever, including without limitation, all disputes
relating in any manner to the employment or termination of Employee, and all
disputes arising under this Agreement (“Arbitrable Claims”) shall be resolved
by arbitration. All persons and entities specified in the preceding sentence
(other than Hexcel and Employee) shall be considered third-party beneficiaries
of the rights and obligations created by this Section on Arbitration.
Arbitrable Claims shall include, but are not limited to, contract (express or
implied) and tort claims of all kinds, as well as all claims based on any
federal, state, or local law, statute, or regulation, excepting only claims
under applicable workers’ compensation law and unemployment insurance claims.
Arbitration shall be final and binding upon the parties and shall be the
exclusive remedy for all Arbitrable 

 

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Claims, except that Hexcel may, at its
option, seek injunctive relief and damages in court for any breach of Section
3.2 of this Agreement. Subject to the foregoing sentence, THE PARTIES HEREBY
WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS.

 

                                9.2.          Procedure.  Arbitration of Arbitrable Claims shall be in
accordance with the Employment Dispute Resolution Rules of the American
Arbitration Association (“AAA Employment Rules”), except as provided otherwise
in this Agreement. Arbitration shall be initiated by providing written notice
to the other party with a statement of the claim(s) asserted, the facts upon
which the claim(s) are based, and the remedy sought. In any arbitration, the
burden of proof shall be allocated as provided by applicable law. Either party
may bring an action in court to compel arbitration under this agreement and to
enforce an arbitration award. Otherwise, neither party shall initiate or
prosecute any lawsuit or administrative action in any way related to any
Arbitrable Claim. The Federal Arbitration Act shall govern the interpretation
and enforcement of this Section.

 

                                9.3           Arbitrator Selection and
Authority.  All disputes involving
Arbitrable Claims shall be decided by a single arbitrator. The arbitrator shall
be selected by mutual agreement of the parties within thirty (30) days of the
mailing or hand delivery, as applicable, of the notice initiating the
arbitration. If the parties cannot agree on an arbitrator, then the complaining
party shall notify the AAA and request selection of an arbitrator in accordance
with the AAA Employment Rules. The arbitrator shall have the same authority as
a court to award equitable relief, damages, costs, and fees as provided by law
for the particular claim(s) asserted. The fees of the arbitrator shall be paid
by the losing party, as identified by the arbitrator. The arbitrator shall have
exclusive authority to resolve all Arbitrable Claims, 

 

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including, but not limited to, any claim that
all or any part of this Agreement is void or unenforceable.

 

                                9.4.          Confidentiality.  All proceedings and documents prepared in
connection with any Arbitrable Claim shall be confidential and, unless
otherwise required by law, the subject matter thereof shall not be disclosed to
any person other than the parties to the proceeding, their counsel, witnesses
and experts, the arbitrator, and, if involved, the court and court staff. All
documents filed with the arbitrator or with a court shall be filed under seal.
The parties shall stipulate to all arbitration and court orders necessary to
effectuate fully the provisions of this subsection concerning confidentiality.

 

                                9.5.          Continuing Obligations.  The rights and obligations of Employee and
Hexcel set forth in this Section 9 shall survive the termination of Employee’s
employment and the expiration of this Agreement.

 

10.           INSURANCE
BENEFITS

 

                                10.1.        Life Insurance.  Subject to Sections 10.3 and 10.4, Hexcel
shall keep in force and pay for life insurance for Employee should Employee
retire or otherwise cease to be employed by Hexcel (“termination”) in the
following amounts so long as Employee has not received all of the payments to
which Employee is entitled under this Agreement.

 

                                                (a)           For the period prior to the time
Employee has received any payments under this Agreement and prior to the
Employee’s 65th birthday, an amount equal to two (2) times the
present value of Employee’s potential payments hereunder (in accordance with
Section 1.2 at the time of termination, provided such insurance shall not exceed
the amount of life insurance on Employee in effect at the time of retirement or
other termination.

 

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  Example:

  
	
   

  	
  Salary $80,000

  
	
   

  	
  Employee Insurance $240,000

  
	
   

  	
  Present Value of Potential Payments $200,000

  
	
   

  	
  Then lesser of

  
	
   

  	
  2 X $200,000 = $400,000

  
	
   

  	
  Insurance at term = $240,000

  
	
   

  	
  Therefore, $240,000 life insurance.

  

 

After Employee’s 65th birthday,
but only while Employee is receiving payments under this Agreement, an amount
equal to one (1) times the present value of Employee’s potential payments
hereunder (in accordance with Section 1.2 at the time of retirement or other
termination, provided such insurance shall not exceed the amount of life
insurance on Employee in effect at the time of termination.

 

	
   

  	
  Example:

  
	
   

  	
  Salary $80,000

  
	
   

  	
  Employee Insurance
  $240,000

  
	
   

  	
  Present Value of Potential
  Payments $200,000

  
	
   

  	
  Then lesser of

  
	
   

  	
  1 X $200,000 = $200,000

  
	
   

  	
  Employee Insurance =
  $240,000

  
	
   

  	
  Therefore, $200,000 life
  insurance.

  
	
   

  	
   

  

 

 

13

 

                                10.2.        Medical and Dental Insurance.  Hexcel, at its expense, shall continue to
cover Employee in its group medical and dental insurance plan during those
periods life insurance is maintained for Employee pursuant to Section 10.1.

 

                                10.3.        Termination of Benefits.  Notwithstanding anything set forth herein,
Employee shall not be entitled to any benefits under Sections 10.1 and 10.2
should Employee receive a lump sum benefit hereunder or after Employee’s 75th
birthday.

 

                                10.4.        Eligibility.  Notwithstanding anything set forth herein,
Hexcel shall have no obligations under sections 10.1 or 10.2 unless all of the
following conditions precedent are satisfied:

 

                                                (a)           At the time of Employee’s retirement
or other termination, he was employed by Hexcel for not less than five (5)
years; and

 

                                                (b)           Employee was not terminated for any
reason set forth in Section

 

4.2; and

 

                                                (c)           Employee is in full compliance with
his obligations under this Agreement, including without limitation his
obligations under Section 3.2.

 

11.           MISCELLANEOUS.  All payments received pursuant to this
Agreement shall be subject to applicable payroll taxes and taxes withholding.
This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of Hexcel and the heirs, legatees, personal representatives and
designated beneficiaries of Employee.

 

                                The
parties understand and agree that the preceding Sections recite the sole
consideration for this Agreement and that no representation or promise has been
made by Employee or Hexcel in regard to the subject matter of this Agreement,
except as expressly set forth in this Agreement. This Agreement shall supersede
all prior or contemporaneous 

 

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agreements and understandings between the
parties whether written or oral, express or implied, with respect to executive
deferred compensation, except to the extent that the provisions of any such
agreement have been expressly referred to in this Agreement as having continued
effect.

 

                                This
Agreement may not be modified, amended, or terminated except by an instrument
in writing, signed by each of the parties.

 

                                Notwithstanding
anything to the contrary contained in this Agreement, if any provisions hereof,
or the application thereof to any circumstance, is held invalid for any reason
whatsoever, such invalid provision shall be severable and shall not affect any other
provision hereof or the application thereof to any other circumstances which
can be given effect without such invalid provisions or application. This
Agreement is entered into in contemplation of and shall be interpreted and
enforced in accordance with Delaware law. For convenience, references to the
Employee herein are masculine, but shall be deemed to include the feminine
gender if Employee is female. Paragraph and Section headings have been inserted
for convenience only, and in no way shall be used to interpret or otherwise
affect the terms of this Agreement.

 

                                TO
EVIDENCE THEIR AGREEMENT to the foregoing, the parties have executed this
Agreement the day and year first above written.

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  HEXCEL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Joseph H. Shaulson

  	
   

  	
   

  	
   

  	
   

  	
  By

  	
  /s/ David M. Wong

  
	
  Joseph H. Shaulson

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  David M. Wong

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice President, Corporate
  Affairs

  

 

 

15Exhibit
10.01

 

PERFORMANCE SHARES GRANT AGREEMENT

 

pursuant to the

 

LAUREATE EDUCATION, INC. (FORMERLY SYLVAN LEARNING SYSTEMS, INC.)

1998 STOCK INCENTIVE PLAN

 

 

1998 Stock Incentive Plan

 

Grantee: Douglas L. Becker

No. of Performance Shares: 
166,000

 

 

AGREEMENT, effective as of
January 1, 2004 (“Effective Date”), between Laureate Education, Inc. (the “Company”),
and the Grantee.

 

WHEREAS, the Grantee is now
in the employ of the Company or a subsidiary of or entity affiliated with the
Company, called collectively the “Company” (as those terms are defined in the
Plan) and the Company desires to have the Grantee remain in such employ or
capacity and to afford the Grantee the opportunity to acquire stock ownership
in the Company so that the Grantee may have a direct proprietary interest in
the Company’s success; and

 

WHEREAS, the Company and its
stockholders have approved the Laureate Education, Inc. (formerly Sylvan
Learning Systems, Inc.) 1998 Stock Incentive Plan (the “Plan”) pursuant to
which the Company may, from time to time, enter into stock-based award
agreements with certain of its employees;

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and agreements
hereinafter set forth, the parties hereto hereby mutually covenant and agree as
follows:

 

1.                                       Definitions

 

                                                Under this
Agreement, except where the context otherwise indicates, the following
definitions apply:

 

(a)                                  “Account” means the
bookkeeping account maintained for the Grantee pursuant to Section 3(b).

 

(b)                                 “Agreement” means the
Performance Shares Grant Agreement and shall include the applicable provisions
of the Plan, which is hereby incorporated into and made a part of this
Agreement.

 

(c)                                  “Award
Valuation Date” means February 28, 2004.

 

(d)                                 “Distribution
Date” means the later of (i) six (6) months following the Grantee’s
separation from service with the Company and all Affiliates (within the meaning
of Section 409A of the Code) or (ii) thirty days following the Grantee’s
termination or resignation from the Board; provided that the Distribution Date
shall be no later than would be permitted under Section 409A of the Code and
regulations thereunder.

 

(e)                                  “Dividend” means any
dividend (other than in Common Stock) on Common Stock, or any distribution
(other than in Common Stock) with respect thereto.

 

(f)                                    “Dividend
Payment Date” means the payment date for a dividend or
distribution with respect to Common Stock.

 

(g)                                 “Employment
Agreement” means the Employment Agreement effective as of June
30, 2004, by and between the Company and Douglas L.
Becker.

 

(h)                                 “Extraordinary
Items of Income or Loss” means any amount of income, gain or loss
included in the calculation of the net income of the Company that the Board, in
its discretion, but acting in good faith, determines to be extraordinary;
provided, however, in no event will the revenue or income from an acquisition
be deemed to be extraordinary, to the extent revenue or income from such
acquisition is consolidated and included with revenue and income of the Company
for reporting purposes.

 

(i)                                     “Disabled” means a “Total
Disability”, as defined in Section 6.3(b) of the Employment Agreement.

 

(j)                                     “Fiscal
Year” means the fiscal year of the Company, which is currently January 1
through December 31.

 

(k)                                  “GAAP” means U.S.
generally accepted accounting principles, consistently applied.

 

(l)                                     “Grant
Date” means February 28, 2004.

 

(m)                               “Net
Income” means for 2004 and later, Income (Loss) from continuing operations
before cumulative effect of change in accounting principles as determined in
accordance with GAAP and reflected in the Company’s Consolidated Statements of
Operations in its filing with the SEC, but modified so as to exclude any
Extraordinary Items of Income.  For 2003,
Net Income shall be deemed to be $40,288,000. 
Extraordinary Items of Loss shall be included in the calculation of Net
Income

 

(n)                                 “Performance
Share” means a bookkeeping entry that represents an amount equivalent to a
share of Common Stock.

 

(o)                                 “Revenue” means gross
revenue of the Company and determined in accordance with GAAP.  For 2003, the
Revenue was $471,903,000.

 

(p)                                 “2004
Earnings Per Share Target” means $1.25 net earnings per share (on a fully diluted basis)
determined in accordance with GAAP, but determined by excluding any
Extraordinary Items of Income. Such amount reflects the earnings target
established for the 2004 Fiscal Year.

 

Any capitalized term used
herein that is not expressly defined in this Agreement shall have the meaning
that such term has under the Plan unless otherwise provided herein.

 

2.                                       Grantee’s
Agreement

 

In
consideration of the Performance Shares granted to Grantee pursuant to this
Agreement, the restrictive covenants contained in Section 5.2 of the Employment
Agreement (as well of the 

 

2

 

provisions
of Sections 5.4 and 5.5 of the Employment Agreement) are incorporated herein by
reference and made a part hereof.  Such
restrictive covenants (as incorporated herein) are designed to be separate from
the restrictive covenants contained in such Employment Agreement and shall
survive the termination or non-renewal of the Employment Agreement (so that the
one year non-compete/non-solicitation covenants incorporated herein apply for
the one year period following the Grantee’s termination of employment). The
enforceability of such covenants (as incorporated herein) shall not be
dependent on the enforceability of such restrictive covenants under the
Employment Agreement.

 

3.                                       Grant of
Performance Shares

 

(a)                                  Subject to the
provisions of this Agreement and pursuant to the provisions of the Plan, the
Company hereby grants to the Grantee 166,000 Performance Shares as of the Grant
Date.

 

(b)                                 Performance
Shares granted to the Grantee shall be credited to the Grantee’s Account.  The Grantee’s Account shall be the record of
Performance Shares granted to the Grantee hereunder and is solely for
accounting purposes and shall not require a segregation of any assets of the
Company.

 

(c)                                  If the Company
pays any Dividend, the Grantee’s Account will be credited with the dollar value
of the Dividend allocable to the Performance Shares (whether or not vested)
that are credited to the Grantee’s Account. 
As of December 31 of each year (or, if applicable, as of the last day of
the month preceding the Distribution Date), the Grantee’s Account will be
credited (or charged) as follows:

 

(i)                                     Cash Dividend

 

Cash
Dividends shall be credited with annual interest at the prime rate published in
the “Money Rates” table of The Wall Street Journal on
the last business day of each calendar year (or, if applicable, as of the last
business day of the month preceding the Distribution Date).

 

(ii)                                  Non-Cash
Dividend

 

To
the extent that the Company pays a non-cash Dividend and the property that
comprises such non-cash Dividend consists of publicly traded securities or
other property whose fair market value is readily determinable from available
public sources (e.g., published valuations), the Account shall be credited (or
charged) with the amount of any appreciation or depreciation in the value of
such publicly traded securities or other property following the Dividend
Payment Date, together with the value of any subsequent dividend or
distribution with respect thereto.  To
the extent that the non-cash Dividend (or dividend or distribution with respect
thereto) consists of publicly traded securities, then the amount of
appreciation/depreciation charged to the Account shall be based on the last
reported sale price per share of such security, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on a national securities exchange or included for quotation on the
Nasdaq-National Market, or if the securities are not so listed or admitted to
trading or included for quotation, the last quoted price, or if the securities
are not so quoted, the average 

 

3

 

of
the high bid and low asked prices, regular way, in the over-the-counter market,
as reported by the National Association of Securities Dealers, Inc. Automated
Quotation System or, if such system is no longer in use, the principal other
automated quotations system that may then be in use or, if the securities are
not quoted by any such organization, the average of the closing bid and asked
prices, regular way, as furnished by a professional market maker making a
market in the securities as selected in good faith by the Administrator.  The determination of the value of other
property shall be made based upon such available public source or sources as
shall be selected in good faith by the Administrator. In no event shall this
provision be construed as requiring the Company or the Administrator to secure
an appraisal of any securities or other property.  In the event the value of any non-cash
Dividend (or any portion thereof) (or dividend or distribution with respect
thereto) is not readily determinable in accordance with the foregoing
provisions, then the value of such non-cash Dividend (or dividend or
distribution with respect thereto) shall be credited to the Account and with
interest on the same basis as a cash Dividend (from the Dividend Payment Date or,
if later, as of the last date on which the value of such non-cash Dividend was
readily determinable in accordance with the foregoing provisions).

 

(d)                                 As of the
Distribution Date, the amount of any Dividends (or dividend or distribution
with respect thereto) credited to the Grantee’s Account (with respect to
Performance Shares that are vested) shall be paid to the Grantee in cash.

 

(e)                                  The Grantee
shall not have the rights of a stockholder with respect to any Performance
Shares credited to the Grantee’s Account until shares of Common Stock have been
distributed to the Grantee pursuant to Section 5, and the Grantee’s name has
been entered as a stockholder of record on the books of the Company with
respect to such distributed shares of Common Stock.

 

(f)                                    Nothing
contained in the Plan or this Agreement, nor the grant of Performance Shares
herein, shall be construed or deemed under any circumstances to obligate the
Company to continue the employment of the Grantee for any period of time, and
nothing in the Plan or this Agreement shall limit or restrict the right of the
Company to terminate the Grantee’s employment at any time, for any reason, for
or without cause (subject, however, to the terms of the Employment Agreement).

 

4.                                       Vesting

 

(a)                                  Time Vesting of
Performance Shares.  Unless the
Grantee’s right to the Performance Shares has earlier terminated pursuant to
the provisions of this Agreement, the Grantee shall be vested in 2,305.5556
Performance Shares as of the last day of each month beginning on and after
January 1, 2004 during which he is in the continuous employ of the
Company.  In all events, the Grantee
shall be fully vested in all Performance Shares on December 31, 2009 (provided
that he has been in the continuous employ of Company from the January 1, 2004
through December 31, 2009).

 

(b)                                 Additional
Vesting Upon Satisfaction of Performance Thresholds.  To the extent that the performance thresholds
contained in this Section 4(b) are met for a Fiscal Year, then the Grantee
shall become vested in an additional number of Performance Shares (up to the
total grant of 166,000 Performance Shares) as follows:

 

4

 

(i)                                     Fiscal Year
Performance Vesting

 

Unless
the Grantee’s right to the Performance Shares has earlier terminated pursuant
to the provisions of this Agreement or the Plan, to the extent that the
performance criteria specified below are satisfied with respect to the
applicable Fiscal Year, the Grantee shall become vested in the number of
Performance Shares specified below.

 

(1)                                  FY 2004 – In addition
to the shares already vested pursuant to Section 4(a) above, an additional
27,666.667 Performance Shares shall become vested on January
1, 2005 if, after giving effect to the compensation expense caused by the additional
vesting provided in this Section 4(b)(i)(1), the Company meets its 2004
Earnings Per Share Target.

 

(2)                                  FY 2005 – In addition
to the shares already vested pursuant to Section 4(a) and Section 4(b)(i)(1)
above, an additional 27,666.667 Performance Shares shall become vested on January 1, 2006 if all of the following requirements have
been met: (A) the Company met its 2004 Earnings Per Share Target, (B) the
Company’s Revenue for 2005 exceeds its Revenue for 2004 by twenty percent (20%)
or more, and (C) the Company’s Net Income for 2005 exceeds its Net
Income for 2004 by twenty-five percent (25%) or more.

 

(3)                                  FY 2006 – In addition
to the shares already vested pursuant to Section 4(a) and Section 4(b)(i)(1)
and (2) above, an additional 27,666.667 Performance Shares shall become vested
on January 1, 2007 if all of the
following requirements have been met: 
(A) the Company met its 2004 Earnings Per Share Target, (B) the
Revenue/Net Income criteria specified in Section 4(b)(i)(2) above were met for
2005, (C) the Company’s Revenue for 2006 exceeds its Revenue for 2005 by twenty
percent (20%) or more, and (D) the Company’s Net Income for 2006 exceeds
its Net Income for 2005 by twenty-five percent (25%) or more.

 

(ii)                                  Cumulative
Performance Vesting

 

Notwithstanding
the foregoing, unless the Grantee’s right to the Performance Shares has earlier
terminated pursuant to the provisions of this Agreement or the Plan, if the
Company fails to attain the Fiscal Year performance criteria specified in
Section 4(b)(i)(1), (2) and/or (3) above, the Grantee shall nevertheless vest
in the number of Performance Shares specified below.

 

(1)                                  FY 2005 – In addition
to the shares already vested pursuant to Section 4(a), on January
1, 2006 the Grantee shall become vested in an additional 55,333.333 Performance
Shares (i.e., 33.333% of the original grant of 166,000 Performance Shares), less the number of additional
Performance Shares (if any) that became vested on or before such date under
Section 4(b)(i) above, if both of the following requirements have been met: (A)
the Company’s Revenue for 2005 exceeds its Revenue for 2003 by forty-four
percent (44%) or more, and (B) the Company’s Net Income for 2005 exceeds
its Net Income for 2003 by fifty-six and one-quarter percent (56.25%) or more.

 

5

 

(2)                                  FY 2006 – In addition
to the shares already vested pursuant to Section 4(a) above, on January 1, 2007 the Grantee shall become vested in 83,000
Performance Shares (i.e., 50% of the original grant of 166,000 Performance
Shares), less the number of additional
Performance Shares (if any) that became vested on or before such date under
Section 4(b)(i) and/or Section 4(b)(ii)(1) above, if both of the following
requirements have been met: (A) the Company’s Revenue for 2006 exceeds its
Revenue for 2003 by seventy-two and eight tenths percent (72.8%) or more, and
(B) the Company’s Net Income for 2006 exceeds its Net Income for 2003 by
ninety-five and thirty-one one hundreds percent (95.31%) or more.

 

(3)                                  FY 2007 – To the
extent not previously vested under Section 4(a), Section 4(b)(i) or Section
4(b)(i)(1) or (2) above, all remaining unvested Performance Shares shall become
vested on January 1, 2008 (i.e., the Grantee will become 100% vested in all
166,000 Performance Shares) if both of the following requirements have been
met: (A) the Company’s Revenue for 2007 exceeds its Revenue for 2003 by one
hundred seven and thirty-six one hundreds percent (107.36%) or more, and
(B) the Company’s Net Income for 2007 exceeds its Net Income for 2003 by one
hundred forty-four and fourteen one hundreds percent (144.14%) or more.

 

(iii)                               Employment
Requirement – Except as provided in Section 4(c) or 4(d) below,
in order to become vested in accordance with subsections (i) or (ii) above, the
Grantee must have been in the continuous employ of Company from January 1, 2004
through the close of business on the applicable January 1 vesting date.

 

(iv)                              Supplemental
Nature of Performance Vesting – The vesting provisions
contained in this Section 4(b) shall be in addition to (and not in lieu of) the
vesting schedule contained in Section 4(a) above.  In no event shall the application of the
additional vesting provided in this Section 4(b) (or any accelerated vesting
under the remaining provisions of this Agreement) cause the Grantee to become
vested in more than a total of 166,000 Performance Shares.

 

(c)                                  Acceleration of
Vesting Upon Termination Due to Termination for Good Reason or Termination
Without Good Cause. 
Notwithstanding the provisions of Section 4(a) or 4(b), but subject to
the terms of this Agreement and the Plan, upon the termination of the Grantee’s
employment for “Good Reason” or without “Good Cause” (as those terms are
defined in the Employment Agreement), the Grantee shall be vested in
Performance Shares as follows:

 

(i)                                     If such
termination occurs on or before the second anniversary of the Effective Date,
then the Grantee shall become vested in a total of 110,666.667 Performance
Shares. If, at the time of such termination, the Grantee is already vested in
110,666.667 Performance Shares, the accelerated vesting provisions of this
Section 4(c)(i) shall not apply.

 

6

 

(ii)                                  If such
termination occurs after the second anniversary of the Effective Date, then the
Grantee shall become 100% vested in all 166,000 Performance Shares granted
under this Agreement.

 

(d)                                 Performance
Vesting For Fiscal Year of Death or Total Disability.  Notwithstanding the provisions of Sections
4(a) or 4(b), but subject to the terms of this Agreement and the Plan, if the
Grantee’s employment is terminated by reason of death or Total Disability and
the applicable performance threshold in Section 4(b)(i) or (ii) is met for the
fiscal year in which such termination occurs, then, in addition to the shares
already vested pursuant to Section 4(a) and Section 4(b) above, the Grantee
shall become vested in an additional number of Performance Shares equal to the
additional Performance Shares that would have become vested pursuant to Section
4(b)(i) or (ii) if the Grantee had been employed on the applicable January 1
vesting date multiplied by a fraction, (x) the numerator of which is the number
of days during which the Grantee was employed during in the fiscal year of termination,
(y) and the denominator of which is 365.

 

(e)                                  Vesting Upon
Termination for Other Reasons.  No special vesting provisions shall apply if
the Grantee’s employment with the Company ceases for any other reason
(including, without limitation, (1) Good Cause; (2) a mutual agreement between
the Company and the Grantee to terminate Grantee’s employment; (3) termination
of the Executive’s employment pursuant to Section 6.1 of the Employment
Agreement (non-renewal), or (4) resignation of the Grantee other than for Good
Reason; as those terms are defined and described in the Employment Agreement).

 

5.                                       Distribution of
Performance Shares

 

(a)                                  Upon the
Grantee’s Distribution Date, the number of vested Performance Shares credited
to the Account of the Grantee shall be converted into actual shares of Common
Stock on a one-for-one basis.  Any vested
fractional Performance Shares that cannot be converted into whole shares of
Common Stock shall be distributed to the Grantee in cash.

 

(b)                                 Within ten (10)
business days following the Grantee’s Distribution Date, the Company shall
distribute to the Grantee the number of shares of Common Stock and cash
determined in accordance with Section 5(a) (net of any withholding required
under applicable law and not paid by the Grantee in cash pursuant to Section
16).

 

(c)                                  If the Grantee
is subject to liability under section 16(b) of the Securities and Exchange Act
of 1934 on the Distribution Date and makes an election in a timely manner under
Section 83(b) of the Code to recognize income for tax purposes, the Grantee
shall notify the Company within thirty (30) days of making such election.

 

6.                                       Grantee

 

Whenever the word “Grantee”
is used in any provision of this Agreement under circumstances where the
provision should logically be construed to apply to the estate, personal
representative or beneficiary to whom Performance Shares credited to the
Account of the Grantee may be transferred by will or by the laws of descent and
distribution, the word “Grantee” shall be deemed to include such person.

 

7

 

7.                                       Assignability

 

No amount payable to the
Grantee hereunder (including, without limitation, Performance Shares credited
to the Grantee’s Account) shall be transferable by the Grantee otherwise than
by will or the laws of descent and distribution.  No amount shall be payable to anyone other
than the Grantee during the Grantee’s lifetime. 
No assignment or transfer of any amount payable to the Grantee under
this Agreement (including, without limitation, shares of Common Stock payable
on the Distribution Date), whether voluntary or involuntary, by operation of
law or otherwise, except by will or the laws of descent and distribution, shall
vest in the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer any amount payable
hereunder, this Agreement shall terminate and be of no force or effect.

 

8.                                       Unfunded Plan

 

(a)                                  Obligations of
the Company.  The
obligation of the Company to make payments with respect to Performance Shares
granted hereunder shall be interpreted solely as an unfunded contractual
obligation to make such payments in the manner and under the conditions
prescribed under this Agreement.  Any
assets set aside with respect to amounts payable under this Agreement shall be
subject to the claims of the Company’s general creditors, and no person other
than the Company shall, by virtue of the provisions of the Plan or this
Agreement, have any interest in such assets. In no event shall any assets set
aside (directly or indirectly) with respect to amounts payable under this
Agreement be located or transferred outside the United States.

 

(b)                                 Rights of the
Grantee.  Neither the Grantee nor any
other person shall have any interest in any particular assets of the Company by
reason of the right to receive a benefit under this Agreement, and the Grantee
or any such other person shall have only the rights of a general unsecured
creditor of the Company with respect to any rights under the Plan or this
Agreement.

 

9.                                       The Company’s
Rights

 

The existence of this
Agreement shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or other stocks with preference ahead of or convertible
into, or otherwise affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or
any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

 

10.                                 Recapitalization;
Merger and Consolidation

 

Other
than pursuant to any conversion rights set forth in the charter of the Company,
if the shares of the Company’s Common Stock as a class are increased, decreased
or changed into, or exchanged for, a different number or kind of shares or
securities of the Company, through merger, consolidation, reorganization,
recapitalization, reclassification, stock dividend, stock split, combination of
shares, exchange of shares, change in corporate structure or the like, an
appropriate and proportionate adjustment shall be made in the number and kinds
of securities covered by outstanding units of Performance Shares, and in the
value of outstanding Performance Shares thereof granted prior to any such
change.  The foregoing adjustment shall
be made in a manner that will cause the intrinsic value of each outstanding
unit of Performance Shares 

 

8

 

immediately
after the applicable transaction to be equal to the intrinsic value of each
such outstanding unit of Performance Shares immediately before the applicable
transaction.

 

11.                                 Preemption by
Applicable Laws or Regulations

 

Anything in this Agreement
to the contrary notwithstanding, if, at any time specified herein for the
issuance of Common Stock to the Grantee, any law, regulation or requirements of
any governmental authority having appropriate jurisdiction shall require either
the Company or the Grantee to take any action prior to or in connection with
the issuance of such Common Stock, the issuance of such shares of Common Stock
shall be deferred until such action shall have been taken.

 

12.                                 Resolution of
Disputes

 

Subject to Section 5.4 of
the Employment Agreement (which has been incorporated herein by reference with
respect to the restrictive covenants contained in Section 2) and Section 13,
and to the extent permitted by the Plan (and not inconsistent with the
provisions of Section 2(f) thereof), disputes or disagreements which shall
arise under, or as a result of, or pursuant to, this Agreement shall be
determined pursuant to the arbitration provision in Section 7.1 of the
Employment Agreement, and the determination of such arbitration shall be
binding upon the Company, the Grantee and the Administrator. To the extent
permitted by (and not inconsistent with) the terms of the Plan, the
Administrator (as defined in the Plan) hereby determines (in accordance with
Section 3(f) of the Plan) that the procedures for resolving disputes that are
contained in above referenced sections shall apply and be binding for purposes
of this Agreement.

 

13.                                 Claims
Procedure

 

(a)                                  Claims for
Deferred Compensation.  The
Company and the Grantee hereby agree that the purpose of this Agreement is to
provide supplemental benefits to the Grantee in the form of deferred
compensation.  For purposes of Title I of
the Employment Retirement Income Security Act of 1974, as amended (“ERISA”),
this Agreement is intended to constitute an unfunded plan maintained for the
purpose of providing deferred compensation for the Grantee.  Any claim for compensation hereby by the
Grantee shall be made in writing to the Administrator.  If such claim for compensation is wholly or
partially denied, the Administrator shall, within ninety (90) days after
receipt of the claim, notify the Grantee of such denial (unless the
Administrator determines that special circumstances require an extension of
time for processing the claim).  Such
notice of denial shall be in writing, shall be delivered to the Grantee in
writing or by electronic notification, shall be expressed in a manner
calculated to be understood by the Grantee and shall contain (1) the specific
reason or reasons for denial of the claim, (2) reference to the specific
provisions of this Agreement and/or the Plan upon which the denial is based,
(3) a description of any additional material or information necessary to
perfect the claim and an explanation of why such material or information is
necessary, and (4) an explanation of the claim review procedure, as specified
under the provisions of this Section 13.  Furthermore, if notice of the denial of a
claim is not furnished by the Administrator to the Grantee in accordance with
the provisions of this Section 13, the claim shall be denied and the Grantee
shall be permitted to proceed to the review stage provided in this Section 13.

 

(b)                                 Request for
Review of Denial.  In the
event that a claim for compensation by the Grantee is denied, the Grantee may
(1) file with the Administrator a written request that the 

 

9

 

Administrator
conduct a full and fair review of the denial of the claim for compensation and
(2) review any documents pertinent to such request.  Such request shall be delivered to the
Administrator within sixty (60) days after the receipt by the Grantee of the
written notice of denial of the claim, or such later date as shall be
reasonable taking into account the nature of the claim and any other attendant
circumstances.  Such review shall (i)
provide the Grantee with the opportunity to submit written comments, documents,
records and other information relating to the claim for compensation; (ii)
provide the Grantee, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant to the claim
for compensation; and (iii) take into account all comments, documents, records
or other information submitted by the Grantee relating to the claim for
compensation, without regard to whether such information was submitted or
considered in the initial determination of compensation.

 

(c)                                  Decision on
Review of Denial.  The
Administrator shall deliver to the Grantee a written decision on any claim
filed hereunder within sixty (60) days after the receipt of the aforesaid
request for review (unless the Administrator determines that special
circumstances require an extension of time for processing the claim).  Such decision shall (1) be expressed in a
manner calculated to be understood by the Grantee, (2) include specific reasons
for the decision, (3) contain specific references to the pertinent provisions
of this Agreement upon which the decision is based; (4) contain a statement
that the Grantee is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other information
relevant to the Grantee’s claim for compensation, (5) contain a statement
describing any voluntary appeal procedures offered by this Agreement, and (6)
contain a statement describing the rights of the Grantee under Section 12
..  Furthermore, in the event that the
Administrator fails to furnish its decision on review within the applicable
time period to the Grantee, the Grantee shall be deemed to have exhausted the
administrative claims procedures under this Section 13 and shall be entitled to
pursue resolution pursuant to Section 12.

 

14.                                 Amendments

 

This Agreement may be
amended only by written agreement signed by both parties. No modification
to the Plan that would materially adversely affect the terms of this Agreement
shall apply to this Agreement without the written approval of the Grantee; provided,
however, modifications to the Plan that are dictated by requirements of federal
or state laws applicable to the Company shall not be deemed to adversely affect
the terms of this Agreement.

 

15.                                 Notice

 

Any notice which either
party hereto may be required or permitted to give to the other shall be in
writing, and may be delivered personally or by mail, postage prepaid, addressed
as follows:  to the Company or the Administrator
at 1001 Fleet Street, Baltimore, Maryland 21202 (Attention: Office of the
Secretary/Legal Department), or at such other address as the Company or the
Administrator, by notice to the Grantee, may designate in writing from time to
time; to the Grantee, at his or her address as shown on the records of the
Company, or at such other address as the Grantee, by notice to the Secretary of
the Company, may designate in writing from time to time.

 

10

 

16.                                 Tax Withholding

 

The Company shall have the
right to charge the Grantee’s Account (or, to the extent permitted by law, to
deduct from any other amount payable to the Grantee, including, without
limitation any salary or bonus) any federal, state, local taxes (including,
without limitation, income taxes and the Grantee’s portion of any employment
taxes) or other amounts which it deems are required by law to be withheld.  In addition, the Company may retain a
sufficient number of shares of Common Stock to be issued to the Grantee to
cover all such required withholding. 
Notwithstanding the forgoing, in lieu of having such required
withholding deducted from other amounts due, the Grantee may direct the Company
to reduce the number of vested Performance Shares and/or Dividends allocated to
the Grantee’s Account or otherwise retain a sufficient number of shares of Common Stock to be issued to the Grantee to
cover any or all such required withholding.

 

17.                                 Governing Law

 

All matters relating to this
Agreement shall be governed by the laws of the State of Maryland, without
regard to the principles of conflict of laws, except to the extent preempted by
the laws of the United States.

 

18.                                 Construction

 

This Agreement has been
entered into in accordance with the terms of the Plan, and wherever a conflict
may arise between the terms of this Agreement and the terms of the Plan, the
terms of the Plan shall control.

 

19.                                 General

 

The Company shall at all
times during the term of this Agreement reserve and keep available such number
of shares of Common Stock of the Company as will be sufficient to satisfy the
requirements herein and shall pay all original issue and transfer taxes with
respect to the issue and transfer of shares of Common Stock of the Company
pursuant hereto and all other fees and expenses necessarily incurred by the
Company in connection herewith.  From
time to time the Company will use its best efforts to comply with all laws and
regulations which, in the opinion of counsel for the Company shall be applicable
thereto.

 

20.                                 Regulatory
Compliance

 

No Common Stock shall be
issued hereunder until the Company has received all necessary regulatory
approvals and has taken all necessary steps to assure compliance with federal
and state securities laws or has determined to its satisfaction and the satisfaction
of its counsel that an exemption from the requirements of the federal and
applicable state securities laws are available.

 

21.                                 Genders

 

The use of either gender
herein shall be deemed to be or include the other gender and the use of the
singular herein shall be deemed to be or include the plural and vice  versa,
wherever appropriate, unless the context clearly indicates otherwise.

 

22.                                 Headings

 

The headings and other
captions contained in this Agreement are for convenience of reference only and
shall not be used in interpreting, construing or enforcing any of the
provisions of this 

 

11

 

Agreement.  References in this Agreement to any Section
or Sections are references to a Section or Sections of this Agreement, unless
expressly stated otherwise.

 

23.                                 Incorporation
of Plan

 

This Agreement is entered
into under the applicable provisions of the Plan which is attached hereto and
made a part hereof.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed by its duly authorized officer
and its seal to be affixed hereto, and the Grantee has hereunto set the Grantee’s
hand and seal, all on the day and year first above written.

 

	
   

  	
  LAUREATE EDUCATION, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W.
  Zentz

  	
   

  
	
   

  	
   

  	
  Robert W. Zentz, Sr. Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  [SEAL]

  	
   

  
	
   

  	
  GRANTEE:

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas L.
  Becker

  	
  (SEAL)

  	
   

  
	
   

  	
  Douglas L. Becker

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

12

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