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exhibit10_2.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
10.2

       

      

       

      SEPARATION AGREEMENT AND
GENERAL RELEASE

       

      This
Separation Agreement and General Release (the "Agreement") is by and between
John C. Earley, Jr. ("Mr. Earley") and Gulf South Pipeline Company, LP ("Gulf
South"), Gulf Crossing Pipeline Company LLC ("Gulf Crossing"), Texas Gas
Transmission, LLC ("Texas Gas"), Boardwalk GP, LLC (“Boardwalk GP”) and
Boardwalk Operating GP, LLC ("Boardwalk Operating") (Gulf South, Gulf Crossing,
Texas Gas, Boardwalk GP and Boardwalk Operating are collectively referred to
herein as the "Company").

       

      1. Separation
Date.  Mr. Earley's employment with the Company has terminated
effective May 2, 2008 (the "Separation Date").

       

      2. Consulting
Services.  In consideration of the payment set forth in Section
4.2 of this Agreement, for a period of six months from the Separation Date, Mr.
Earley shall serve as a Consultant to the Company and its subsidiaries or
affiliates providing construction, engineering and operational consulting
services only when requested by Mr. Gafvert, the Company's CEO.  Mr.
Earley's consulting services for the Company shall terminate on November 2,
2008, without the necessity of any notice or other action by the
Company.

       

      As a
Consultant, Mr. Earley shall serve as an independent contractor, and not an
employee, of the Company or any of its subsidiaries or
affiliates.  Mr. Earley shall have the right to control the details of
the consulting services he shall provide to the Company, provided however, Mr.
Earley shall with reasonable notice be available during normal business hours
and for trips to the field should he be requested by Mr. Gafvert.  Mr.
Earley shall work with the Company to ensure that his actions as a Consultant
are consistent with the goals and objectives of the Company and the subsidiary
or affiliate that has requested his services.  As a Consultant, Mr.
Earley shall not be entitled to receive any Company benefits, such as employee
benefits, in connection with his consulting services.  Mr. Earley
shall supply all equipment and supplies necessary for his consulting
services.  Mr. Earley shall control the hours of his
work.  Mr. Earley shall also control the location of his work,
however, there may be occasions when Mr. Earley is expected to meet with Company
officials at a Company facility or other designated location.  Mr.
Earley shall be free to hire assistants in providing consulting services and
shall be free to provide consulting services to his other
clients.  Mr. Earley shall be responsible for the payment of all
out-of-pocket expenses associated with his provision of consulting services to
the Company, provided however, the Company shall reimburse Mr. Earley for the
reasonable cost of any travel or related expenses incurred at the Company's
expressed written direction, but in no event shall any such reimbursements be
made after the last day of the calendar year following the calendar year that
the expense was incurred.

       

      Mr.
Earley shall not be treated as an employee for federal or state tax purposes
with respect to the consulting services rendered under this
Agreement.  The Company shall, to the extent it is legally required to
do so, file all necessary tax information reports with federal and state taxing
authorities, including an Internal Revenue Service Form 1099, to report the
income arising from the Agreement.

       

      
        
          Exhibit 10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July
29, 2008   

          
          

        

        
          1

          
            

          

        

        
          
          

           

        

      

       

      3. Effective
Date.  Mr. Earley has up to and including twenty-one (21) days
from the receipt of this Agreement within which to consider the
Agreement.  This Agreement shall become final, binding and enforceable
on the eighth day after Mr. Earley signs the Agreement, unless Mr. Earley
revokes the Agreement as provided for in Section 15 of this Agreement (the
"Effective Date").  The Effective Date shall be no later than October
1, 2008.

       

      4. Payments.

       

      4.1 As
consideration for Mr. Earley's promises within this Agreement and Mr. Earley’s
execution and acceptance of this Agreement, the Company shall pay Mr. Earley,
excluding the payments for the consulting services rendered pursuant to Section
2, the gross amount of One Million Five Hundred Fifty Thousand Dollars and 0/100
($1,550,000.00), less required governmental payroll deductions.  That
amount shall be paid in three separate payments.  The first payment,
of Five Hundred Fifty Thousand Dollars and 0/100 ($550,000.00), less required
governmental payroll deductions, shall be made on the later of the Effective
Date or June 1, 2008.  The second payment, of Five Hundred Thousand
Dollars and 0/100 ($500,000.00), less required governmental payroll deductions,
shall be made on October 1, 2008. The third payment, of Five Hundred Thousand
Dollars and 0/100 ($500,000.00), less required governmental payroll deductions,
shall be made no later than December 31, 2008.  Each of these payments
shall constitute separate payments that are unrelated to any other payment set
forth in Section 4 of this Agreement for purposes of Section 409A of
the Internal Revenue Code of 1986, as amended (the "Code").

       

      4.2 As
consideration for the consulting services that Mr. Earley shall provide,
pursuant to Section 2 of this Agreement, the Company shall pay Mr. Earley the
sum of One Hundred Thousand Dollars and 0/100 ($100,000.00), in the form of six
(6) monthly installments.  The first five installment payments shall
each be in the amount of  Sixteen Thousand Six Hundred Sixty-Six
Dollars and Sixty-Seven Cents ($16,666.67).  The final installment
payment shall be in the amount of Sixteen Thousand Six Hundred Sixty-Six Dollars
and Sixty-Five Cents ($16,666.65). Unlike the payments provided for in Section
4.1 above, no deductions shall be made from these payments.  The first
installment shall be paid in May of 2008.  During each of the
subsequent five (5) months, Mr. Earley shall receive another installment
payment, provided however that in no event shall any payment be made after March
15 of 2009.  Each of these payments shall constitute a separate
payment that is unrelated to any other payment set forth in this Section 4 of
this Agreement for purposes of Section 409A of the Code.

       

      4.3  Notwithstanding
the above, Mr. Earley shall receive payment for any unused and accrued vacation
that remains accrued and unpaid (in accordance with the Company’s payroll
policies) as of the Separation Date less required governmental payroll
deductions, which shall be paid to Mr. Earley, in the form of a lump-sum
payment.  That payment shall be paid as soon as administratively
practicable, but under no circumstances later than June 15, 2008.  In
addition, the Company shall pay Mr. Earley, no later than June 15, 2008, a lump
sum amount equal to the employee's cost of purchasing  six months of
COBRA coverage, under the Company's health insurance plan for Mr. Earley and his
family, less required governmental payroll deductions.   Mr.
Earley shall be free to spend that amount on COBRA coverage or anything else he
may choose.  Each of these payments shall constitute a separate
payment that is unrelated to any other payment set forth in this Section 4 of
the Agreement for purposes of Section 409A of the Code.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      5. Payment
of Equity Compensation.  Of the gross
compensation provided for in Section 4.1 of this Agreement, the first Six
Hundred Sixty-Five Thousand Eight Hundred Fifty-Five Dollars and 0/100
($665,855.00) paid out with respect to the first and second payments set forth
in Section 4.1, is in full payment of the equity compensation benefits in which
Mr. Earley has vested (including, without limitation, all awards of phantom
units, such as LP and GP units) as of the Separation Date pursuant to the
Boardwalk Pipeline Partners Long-Term Incentive Plan and Strategic Long Term
Incentive Plan.  Mr. Earley hereby acknowledges that all rights to any
and all equity compensation benefits (including, without limitation, all awards
of phantom units) from the Company pursuant to the Boardwalk Pipeline Partners
Long-Term Incentive Plan, Strategic Long Term Incentive Plan or any other plan
in which he is not vested, as determined in the sole discretion of the plan
administrator of such plan, as of the Separation Date are hereby forfeited, and
the Company shall have no obligation to provide any further benefits or payments
under any such plan to Mr. Earley, except as specifically and expressly set
forth in this Section 5 above. Mr. Earley additionally hereby acknowledges that
the portion of the payment in Section 4.1 representing vested equity
compensation benefits, as referenced above in this Section, constitutes full and
complete payment for all vested equity compensation benefits (including, without
limitation, all awards of phantom units) to which he may be entitled under the
Boardwalk Pipeline Partners Long-Term Incentive Plan, Strategic Long Term
Incentive Plan, or any other plan.

       

      6. Release.  In
consideration of the payments set forth in Section 4.1, an amount to which
Mr. Earley is not otherwise entitled, and the sufficiency of which Mr. Earley
acknowledges, Mr. Earley hereby KNOWINGLY AND VOLUNTARILY
RELEASES AND DISCHARGES Gulf South, Gulf Crossing, Texas Gas, Boardwalk
GP and Boardwalk Operating, and the past and present successors, assigns,
affiliates, parent companies, subsidiaries, partnerships, limited partnerships,
partners, joint ventures, predecessors, officers, directors, trustees,
conservators, employees, agents, insurance carriers, contractors,
representatives, shareholders and attorneys of Gulf South, Gulf Crossing, Texas
Gas, Boardwalk GP, Boardwalk Operating, and any of their benefit plans
(including, without limitation, the Boardwalk Pipeline Partners Long-Term
Incentive Plan (and their plan administrators)) and any of the other foregoing
entities from any and all rights, claims, debts, liabilities, actions and/or
causes of action, whether in law or in equity, whether known or unknown, that
are based upon facts occurring at any time prior to, or at the time of, Mr.
Earley’s signing of this Agreement including, but not limited to, any matter or
action related to Mr. Earley's employment with, termination from, and/or
affiliation with Gulf South, Gulf Crossing, Texas Gas, Boardwalk GP and/or
Boardwalk Operating, including, but not limited to, the following, identified in
subsections 6.1, 6.2 and 6.3 below:

       

      6.1 Any
statutory claims under the Civil Rights Acts of 1866, 1964, and 1991; the
Americans with Disabilities Act of 1990; the Age Discrimination in Employment
Act; the Older Workers Benefit Protection Act; the Rehabilitation Act of 1973;
Executive Order 11246; the Family and Medical Leave Act of 1993; the Employee
Retirement Income Security Act; the Equal Pay Act; the Sarbanes-Oxley Act,
Chapter 451 of the Texas Labor Code; the Texas Payday Law; Chapter 21 of the
Texas Labor Code; and all other federal, state or local statutes, laws or
regulations;

       

      6.2 Any tort,
contract or other common law claims, matters or actions related to Mr. Earley's
employment and/or affiliation with, or termination and/or separation from, Gulf
South, Gulf Crossing, Texas Gas, Boardwalk GP, and/or Boardwalk Operating,
including, but not limited to, defamation, intentional infliction of emotional
distress, fraud, misrepresentation, breach of contract, wrongful discharge,
constructive discharge, breach of any express or implied covenant of good faith
and fair dealing and breach of fiduciary duty; and,

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      6.3 Any and
all claims for past or future employment benefits, including, but not limited
to, wages, bonuses, incentives (including phantom based equity programs),
vacation pay, medical insurance coverage and/or other benefits.

       

      6.4 Notwithstanding
the foregoing provisions of this Section 6, (i) to the extent that Mr. Earley
has served as an officer, director, member, manager, agent or employee, of any
of the companies currently or formerly constituting part of the Company, he
shall continue to be entitled to indemnity for any and all claims (including,
but not limited to any damages, fines, penalties, attorneys’ fees and related
costs and expenses) to the maximum extent permitted and provided for under the
articles or certificate of incorporation or organization, bylaws, operating
agreement, regulations, limited partnership agreement, partnership agreement and
any other charter documents of any of the constituent companies of the Company
and (ii) none of the release provisions in this Agreement release any
indemnification protections that Mr. Earley would otherwise have under the
articles or certificate of incorporation or organization, bylaws, operating
agreement, regulations, limited partnership agreement, partnership agreement and
any other charter documents of any of the constituent companies of the Company;
provided, however, that any such indemnification shall be provided only to the
extent that any such claims are related to Mr. Earley's performance of service
to the Company or any of its constituent companies in his capacity as an
officer, director, member, manager, agent or employee of the Company or its
constituent companies and only to the extent permitted under applicable
law.

       

      7. Termination
from All Positions with the Company.  Mr. Earley agrees
that as of the Separation Date he has ceased to hold any positions of any nature
with Gulf South, Gulf Crossing, Texas Gas, Boardwalk GP, and/or Boardwalk
Operating, including, without limitations, any positions as an officer,
director, member, manager, partner, employee or agent with Gulf South, Gulf
Crossing, Texas Gas, Boardwalk GP, and/or Boardwalk Operating or any parent,
affiliate, subsidiary or partner of Gulf South, Gulf Crossing, Texas Gas,
Boardwalk GP, and/or Boardwalk Operating.

       

      8. Confidential
and Proprietary Information.  Mr. Earley acknowledges, agrees
and stipulates that during his employment with the Company he has had access to
confidential and proprietary information relating to the business and affairs of
the Company, including, without limitation, (i) the Company's financial
information, including budgets or projections, business plans, pricing policies
or strategies, tariff information, business methods, or any other financial,
marketing, pricing, or regulatory strategic information; (ii) information about
existing or potential customers of the Company and their representatives,
including customer identities, lists, preferences, customer services and all
other customer information; (iii) information about the Company 's employees and
the terms and conditions of their employment with the Company; (iv) computer
techniques, programs and software of the Company; (v) gas measurement devices,
strategies, and associated programs and software; (vi) information about
potential acquisitions or divestitures by the Company; and (vii) any other
non-public information of the Company that cannot be obtained readily by the
public and would be useful or helpful to competitors, customers or industry
trade groups if disclosed (collectively, "Confidential
Information").  In no event shall the definition of Confidential
Information include any information which (i) is generally known or available to
the general public, (ii) is lawfully acquired by Mr. Earley from any third party
not bound by an obligation of confidence, or (iii) is in or hereafter becomes a
part of the public domain other than by reason of a violation of this
Agreement. Mr. Earley
agrees that he shall not, at any time, directly or indirectly, for any reason
whatsoever, with or without cause, unless pursuant to a lawful subpoena or court
order, use, disseminate or disclose any of the Confidential Information to any
person or entity.  Mr. Earley further acknowledges that if Mr. Earley
were to use or disclose, directly or indirectly, the Confidential Information,
that such use and/or disclosure would cause the Company irreparable harm and
injury for which no adequate remedy at law exists.  Therefore, in the
event of the breach or threatened breach of the provisions of this Agreement by
Mr. Earley, the Company shall be entitled to obtain injunctive relief to enjoin
such breach or threatened breach, in addition to all other remedies and
alternatives which may be available at law or in equity.  Mr. Earley
acknowledges that the remedies contained in the Agreement for violation of this
Agreement are not the exclusive remedies which the Company may
pursue.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      9. Non-Solicitation and
Non-Recruitment Covenants.

       

      9.1 Non-Solicitation
Obligations. In consideration of the
payments set forth in Section 4.1 of this Agreement and the Confidential
Information which was given to Mr. Earley during his employment, and which may
be given to Mr. Earley in connection with his performance of the consulting
services, and in order to enforce Mr. Earley's agreement not to disclose
Confidential Information, Mr. Earley and the Company agree that, for a period of
twelve (12) months from and after the Separation Date, Mr. Earley shall not, in
any capacity, directly or indirectly call on, service or solicit competing
business from customers or prospective customers of the Company as of the
Separation Date or cause or encourage others to call on, service or solicit
competing business from customers or prospective customers of the Company,
except as needed to perform the consulting services on behalf of the Company
described in Section 2, if, within the twelve (12) months preceding the
Separation Date, Mr. Earley had or made contact with the customer, or had access
to information and files about the customer.  Additionally, Mr. Earley
agrees that, for a period of six months following his Separation Date, he shall
not  engage in any full time employment with any employer that
directly or indirectly owns or operates (i) an interstate natural gas pipeline,
(ii) an intrastate natural gas pipeline, and/or (iii) a natural gas storage
facility in the United States.  As provided in Section 2, Mr. Earley
may provide consulting services to other clients, so long as he does not violate
the provisions of this Section 9.

       

      9.2 Non-Recruitment
Obligations.  In consideration of the payments set forth in
Section 4.1 of this Agreement and the Confidential Information which was given
to Mr. Earley during his employment, and which may be given to Mr. Earley in
connection with his performance of the consulting services, and in order to
enforce Mr. Earley's agreement not to disclose Confidential Information, Mr.
Earley and the Company agree that, for a period of twelve (12) months from and
after the Separation Date, Mr. Earley shall not, in any capacity, directly or
indirectly, (i) encourage, hire, induce, or solicit any employee of the Company
to accept employment with any other employer, (ii) encourage induce, or solicit
any employee of the Company to leave employment with the Company, or (iii) cause
or encourage others to encourage, induce or solicit any employee of the Company
to leave the Company.

       

      9.3 Injunctive
Relief.  The Company and Mr. Earley acknowledge and agree that
breach of any of the covenants made by Mr. Earley in this Section 9 would cause
irreparable injury to the Company, which could not sufficiently be remedied by
monetary damages; and, therefore, that the Company shall be entitled to obtain
such equitable relief as declaratory judgments; temporary, preliminary and
permanent injunctions; and orders of specific performance to enforce those
covenants or to prohibit any act or omission that constitutes a breach
thereof.  If the Company must bring suit to enforce the provisions of
Section 9 or to defend against any such action, should the Company prevail in
any such action it shall be entitled to recover its reasonable attorney's fees
and costs related thereto.

       

      9.4 Tolling.  If
Mr. Earley is found to have breached any promise made in Section 9 of this
Agreement, the 12-month period specified in Sections 9.1 and 9.2 of this
Agreement shall be extended by the period of time for which Mr. Earley was in
breach so that the Company has the full benefit of the 12 month period(s)
specified in Sections 9.1 and 9.2.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
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      10. Company
Property.  Mr. Earley agrees to deliver to Michael McMahon,
General Counsel of Boardwalk Pipeline Partners, LP, no later than ten (10) days
following the Effective Date, any and all property, including keys, access
cards, files provided for Mr. Earley's use by the Company and all CD's, computer
disks, flash/thumb drives and other electronic or written materials including
but not limited to business related emails and computer files which relate to
the Company, its business activities, or Mr. Earley's position(s) with the
Company.

       

      11. Non-Disparagement.  Mr.
Earley agrees that he shall not make disparaging remarks or communications of
any type concerning the Company or any of the parents, affiliates or
subsidiaries of the Company, or any of the officers or directors of any of those
entities.  Mr. Earley agrees that he shall engage in no conduct
designed to be, or that would have the effect of being, detrimental to the
interests and goodwill of the Company, its officers, directors or employees, nor
shall he engage in any conduct designed to reflect, or that would have the
effect of reflecting, adversely on the reputation and/or goodwill of the
Company, its officers, directors or employees, provided that no section or
provision in this Agreement shall be construed as prohibiting Mr. Earley from
making any truthful statements or reports to any regulatory agency or other
governmental agency or official.

       

      12. Cooperation.  For
a period of twelve months following the Effective Date and conditioned upon full
compliance by the Company and its constituent component companies with any
ongoing indemnity obligations set forth in Section 6.4, Mr. Earley agrees to
cooperate with the Company as reasonably requested by responding to questions,
attending meetings, depositions, administrative or regulatory proceedings and
court hearings, executing documents and cooperating with the Company and its
accountants and legal counsel with respect to business or regulatory issues,
and/or claims and litigation involving third parties, of which he has or had
knowledge. In addition, Mr. Earley agrees to use his best efforts, when
requested or if directly contacted by a current Company employee, to encourage
current Company employees to stay with the Company and to provide the Company at
least the same level of performance as they did when he was at the
Company.  Mr. Earley agrees to communicate with all parties, witnesses
and other participants, and their respective legal counsel, in any such claims,
administrative proceedings or litigation through the designated legal counsel of
the Company.  The Company agrees to comply with the indemnity
provisions of Section 6.4 and, in addition,  reimburse Mr. Earley for
reasonable out-of-pocket expenses actually incurred for travel, meals and
lodging, in accordance with the then existing policies of the Company, for
providing requested cooperation required by this Section 12; provided, however,
that no reimbursement shall be made to Mr. Earley unless: (i) all of the
conditions in this Section are satisfied; and (ii) all of the conditions in
Section 20 are satisfied.  The reimbursement shall be paid to Mr.
Earley by the Company as soon as administratively practicable after Section
12(i) is satisfied, but in no event shall reimbursements be paid later than the
last day of the calendar year following the calendar year that the expense was
incurred.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Further,
Mr. Earley agrees that, at all times in the future, he shall maintain, in strict
confidence, any information of which he may now have or hereinafter obtain
knowledge regarding pending claims, administrative proceedings and litigation
against the Company, or which may be made the basis of future claims,
administrative proceedings or litigation against the Company, except to the
extent otherwise required by law.  Additionally, Mr. Earley agrees
that, at all times in the future, he shall not communicate with any person
having a legal interest adverse to the interest of the Company, or with a
representative, agent or legal counsel for any such person, concerning any
currently pending or potential future claims, administrative or regulatory
proceedings or litigation against the Company, without the express written
agreement of the Company, except to the extent required by law.

       

      13. Representations
Concerning Business Conflicts.  Mr. Earley
represents that during his employment with the Company he has not solicited or
received any gifts, contributions, gratuities, services or kickbacks of anything
more than nominal value from any customer, supplier or contractor of the
Company.  Mr. Earley represents that he has not had a contractual or
business relationship with any supplier, customer, or contractor of the
Company.  Mr. Earley represents that he has not entered into any
transactions where he improperly benefited or attempted to improperly benefit
from his employment with the Company.  Mr. Earley represents that, to
the best of his knowledge, he has not engaged in any situation in which his own
interest influenced the way he handled Company business, including the use of
his relationship with the Company for personal profit or advantage, either
directly or indirectly.  Mr. Earley represents that, to the best of
his knowledge, he has not engaged in any conduct that created an actual or
potential conflict of interest or created the appearance of such a
conflict.  Mr. Earley represents that, to the best of his knowledge,
he has not  engaged in (i) any transaction where he, directly or
through others, converted or attempted to convert any benefit, asset or
opportunity of the Company into a benefit, asset or opportunity of himself or
(ii) any situation where he, directly or through others, acquired, appropriated,
or obtained for himself any good, service, benefit, asset or opportunity through
use of the Company’s assets, other than normal salary and employee benefits paid
to Mr. Earley in connection with his employment with the Company.  Mr.
Earley represents that, to the best of his knowledge, he has not disclosed or
used confidential or proprietary Company information for personal profit or
advantage, for the profit or advantage of any third party or for any other
purpose not specifically authorized by the Company.

       

      14. Twenty-One
(21) Days to Consider.  The Company advises Mr. Earley that he
has twenty-one (21) calendar days from the date he receives this Agreement
within which to consider whether to sign this Agreement.  The Company
advises Mr. Earley that he may voluntarily choose to sign the Agreement earlier,
but is not required to do so.

       

      15. Seven (7)
Days to Revoke.  The Company hereby advises Mr. Earley that for
a period of seven (7) calendar days after he signs this Agreement, Mr. Earley
may revoke this Agreement.  This Agreement shall not become effective
or enforceable until the revocation period has expired. In order to revoke this
Agreement pursuant to this Section 15, Mr. Earley must submit his revocation in
writing to Michael McMahon, General Counsel, 9 Greenway Plaza, Suite 2800,
Houston, Texas 77046, before the expiration of the seven (7) day
period.  Notwithstanding the foregoing, Mr. Earley acknowledges that
the termination of his employment as of the Separation Date shall remain
effective even if Mr. Earley revokes the Agreement.  Mr. Earley
acknowledges, represents and agrees that he understands his rights and
obligations under this Section 15.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      16. Advice of
Attorney. The
Company hereby advises Mr. Earley to consult with an attorney prior to executing
(signing) this Agreement.

       

      17. Non-Admission.  This
Agreement is not an admission by either Mr. Earley or the Company of any
wrongdoing or liability.

       

      18. Prior
Agreements Superseded.  This Agreement constitutes the sole
agreement of the parties hereto concerning the subject matter herein and
supersedes any prior understandings or written or oral agreements between the
parties regarding the subject matter herein.

       

      19. Exclusive
Law, Severability and Venue. This
Agreement shall be interpreted in accordance with the laws of the State of
Texas.  If any provision of this Agreement becomes or is deemed
invalid, illegal or unenforceable in any applicable jurisdiction by reason of
the scope, extent or duration of its coverage, then such provision shall be
deemed amended to the minimum extent necessary to conform to applicable law so
as to be valid and enforceable or, if such provision cannot be so amended
without materially altering the intention of the parties, then such provision
shall be stricken and the remainder of this Agreement shall continue in force
and effect.  If any provision of this Agreement is rendered illegal by
any present or future statute, law, ordinance or regulation (collectively the
"Law"), then that provision shall be curtailed or limited only to the minimum
extent necessary to bring the provision into compliance with the
Law.  All other terms and provisions of this Agreement shall continue
in full force and effect without impairment or limitation. Mr. Earley agrees
that for all matters directly or indirectly arising out of this Agreement, venue
and jurisdiction for any such matters shall lie with the state and federal
courts located in Harris County, Texas as applicable under this
Agreement.

       

      20. Section
409A.  To the extent that the terms of this Agreement would
subject Mr. Earley to gross income inclusion, penalties, interest, or additional
tax pursuant to Section 409A of the Code, those terms are automatically stricken
and reformed either to be exempt from, or to comply with, Section 409A of the
Code and the regulations issued thereunder.  Notwithstanding any
provision of this Agreement to the contrary, only to the extent that this
Agreement is subject to the requirements of Section 409A of the Code and is not
exempted from such requirements, if at the time of Mr. Earley's termination of
employment with the Company, he is a "specified employee" as defined in Section
409A of the Code, no payment or benefit that results from his termination of
employment shall be provided until the date which is six months after the date
of his termination of employment (or, if earlier, his date of
death).  Payments to which Mr. Earley would otherwise be entitled
during the six-month period described above shall be accumulated and paid in a
lump sum on the first day of the seventh month after the date of his termination
of employment.  Notwithstanding anything to the contrary, to the
extent required by Section 409A of the Code: (a) the amount of expenses eligible
for reimbursement or to be provided as an in-kind benefit under this Agreement
during the calendar year may not affect the expenses eligible for reimbursement
or to be provided as an in-kind benefit in any other calendar year and (b) the
right to reimbursement or in-kind benefits under this Agreement shall not be
subject to liquidation or exchange for another benefit.

       

      21. Tax
Advice. Mr.
Earley acknowledges that neither the Company nor any of its representatives have
provided him with any tax advice or tax-related representations concerning the
payments provided for in this Agreement or any other aspect of this
Agreement.  Mr. Earley agrees that he should consult his own tax
advisor(s) for any such tax advice or information.

       

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29,
2008

          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      IN
WITNESS WHEREOF, the parties have duly executed and delivered this Separation
Agreement to be effective as of the Effective Date.

       

      
        	
                 
      

              	
                By:

              	
                /s/
      John C. Earley, Jr.

              	 

      

      
        	
                 
      

              	
                Mr.
      John C. Earley, Jr.

              

      

      

      
        	
                 
      

              	
                Date:

              	
                May 8,
      2008

              	 

      

      

      

      For the
Company:

      

      By:           /s/
Michael McMahon

      Mr. Michael McMahon

      General Counsel

      

      Date:       May 8,
2008                               

      

      

      

      

      
        
          Exhibit
10.2 to the Boardwalk Pipeline Partners, LP Form 10Q filed July 29, 2008
            
                                       

            

          

        

        
          9Filed by Bowne Pure Compliance

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement” or “Employment Agreement”) dated July 24, 2008 between Eugene S.
Putnam, Jr. “Employee”) and Universal Technical Institute, Inc., a Delaware corporation (the “Company”) provides:

WHEREAS, the Company wishes to obtain the services of Employee and Employee is willing to provide services to the
Company; and

WHEREAS, Employee wishes to have the protection provided for in this Agreement and, in exchange for such
protection, is willing to give to the Company, under certain circumstances, a covenant not to compete and a release of
all liability.

NOW, THEREFORE, the parties hereto agree as follows:

	 	99.	 	Definitions.

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

	 	b.	 	“Cause” means any one or more of the following:

(i) Employee’s conviction of, or plea of guilty or nolo contendere to, (a) any felony; or, (b) a
crime involving tax evasion, fraud, embezzlement, conversion of property or moral turpitude;

(ii) A finding by a majority of the Board of Directors of Employee’s fraud, embezzlement or
conversion of the Company’s property;

(iii) Employee’s conviction of, or plea of guilty or nolo contendere to, a crime involving the
acquisition, use or expenditure of federal, state or local government funds relating to the business
and affairs of the Company;

(iv) A final, nonappealable administrative or judicial determination that Employee committed
fraud or any other violation of law involving federal, state or local government funds relating to
the business and affairs of the Company;

(v) A finding by a majority of the Board of Directors of Employee’s knowing breach of any of
Employee’s fiduciary duties to any company in the Company Group or the Company’s stockholders or
making of an intentional misrepresentation or omission which breach, misrepresentation or omission
would reasonably be expected to have a material adverse effect on the business relationship, the
business, properties, assets, operations, condition (financial or other) or prospects of any company
in the Company Group;

 

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(vi) Employee’s alcohol or substance abuse, which materially interferes with Employee’s ability
to discharge the duties, responsibilities and obligations prescribed by this Agreement as determined
by a majority of the Board of Directors;

(vii) Employee’s material and knowing failure to observe or comply with law applicable to the
business of the Company as an officer or employee of the Company which would reasonably be expected
to have a material adverse effect on the business relationship, the business, properties, assets,
operations, condition (financial or other), or prospects of any company in the Company Group as
determined by a majority of the Board of Directors;

(viii) Employee’s willful gross misconduct relating to the business of the Company that results
in significant harm to the Company or its operation, properties, reputation, goodwill or business
relationships as determined by a majority of the Board of Directors,

provided that (i) any finding or determination made by the Board of Directors concerning the existence of
Cause must be made in good faith and not for purposes of evading the Company’s obligations hereunder; and (ii)
a finding or determination of Cause by the Board of Directors may not be made unless, prior to determining
that Cause exists, the Employee shall be given written notice stating in reasonable detail the facts and
circumstances deemed by the Company to constitute Cause, and thirty (30) days from receipt of such notice
Employee has failed to cure the facts and circumstances set forth in such notice.

c. “Change of Control” means: (i) any sale, lease, exchange, or other transfer (in one transaction or
series of related transactions) of all or substantially all of the Company’s assets to any person or group of
related persons under Section 13(d) of the Securities and Exchange Act of 1934 (“Group”); (ii) the Company’s
shareholders approve and complete any plan or proposal for the liquidation or dissolution of the Company;
(iii) any person or Group becomes the beneficial owner, directly or indirectly, of shares representing more
than 50% of the aggregate voting power of the issued and outstanding stock entitled to vote in the election of
directors of the Company (“Voting Stock”) and such person or Group has the power and authority to vote such
 shares; (iv) any person or Group acquires sufficient shares of Voting Stock to elect a majority of the members
of the Board of Directors; or (v) the completion of a merger or consolidation of the Company with another
entity in which holders of the Company’s stock immediately before the completion of the transaction hold,
directly or indirectly, immediately after the transaction, 50% or less of the common equity interest in the
surviving corporation in the transaction. Notwithstanding the foregoing, in no event will a Change of Control
be deemed to have occurred as a result of an initial public offering of the Company’s stock. Also,
notwithstanding anything to the contrary herein, the fact that a transaction or event is defined as a Change
of Control for purposes of this Agreement shall not evidence or infer that the transaction or
event constitutes a change of control for purposes of, including but not limited to, any determination or
definition of the Department of Education, any licensing agency, or for determining the duties of the
Company’s Board of Directors under Delaware corporate law.

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d. “Change of Chief Executive Officer (“CEO”)” means the termination of employment or material diminution of the
authority, duties or responsibilities of the current CEO, Kim McWaters.

e. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

f. “Company Group” shall mean the entities listed on Schedule 1.

g. “Compete” shall mean to directly or indirectly own, operate, manage, join, control, be employed by, be
a consultant to, invest in, or become a director, officer, agent, partner, member, independent contractor or
shareholder of any Competitive Business, as defined below. As used in this Agreement, “Compete” does not
include purely passive investments in any publicly traded company so long as Employee does not directly or
indirectly own, acquire or obtain options to acquire, 5% or more of any class of shares in such company.

h. “Competitive Business” means any post secondary educational institution or entity which conducts
educational programs in the areas of automotive, motorcycle, marine, diesel or collision repair and refinishing
technologies (or a combination of these programs).

i. “Confidential Information” means any confidential information including, without limitation, any study,
data, calculations, software, storage media or other compilation of information, patent, patent application,
copyright, “know-how”, trade secrets, customer, student or prospective student lists or information, details of
client, consultant, student, vendor, supplier or manufacturer contracts, pricing policies, operational
methods, marketing plans or strategies, product development techniques or plans, business acquisition plans or
any portion or phase of any scientific or technical information, ideas, discoveries, designs, computer programs
(including source or object codes), processes, procedures, formulae, improvements or other proprietary or
intellectual property of any company in the Company Group, whether or not in written or tangible form, and
whether or not registered, and including all files, records, manuals, books, catalogues, memoranda, notes,
summaries, plans, reports, records, documents and other evidence thereof. Notwithstanding the foregoing, the
term Confidential Information does not include, and there shall be no obligation hereunder with respect to,
information that is or becomes generally available to the public other than as a result of a disclosure by the
Employee not permissible hereunder.

j. “Good Reason,” when used with reference to a voluntary termination by Employee of Employee’s
employment with the Company, shall mean any of the following conditions, provided that Employee (i) provides
the Company with actual notice of the condition giving rise to the termination within ninety (90) days of
Employee’s knowledge of the initial existence of the condition, (ii) provides the Company with the opportunity
to cure within thirty (30) days of the notice, and (iii) terminates employment within one (1) year of the
initial existence of the condition:

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(a) A material diminution in any of the following:

A. Employee’s base compensation;

B. Employee’s authority, duties or responsibilities; provided that, a material
diminution of Employee’s authority, duties or responsibilities shall be deemed to have
occurred if Employee ceases to have such authorities, duties or responsibilities with
respect to the entity which is the ultimate parent entity of the Company Group following a
Change of Control.

(b) A material change in the geographic location at which the Employee must perform the
services; or

© Any other action or inaction that constitutes a material breach by the Company of this
Agreement and such breach is not cured as set forth in 1.j. (ii) above.

k. “Market” means anywhere in the United States or Puerto Rico. If an arbitrator or arbitration panel
finds that this definition of Market is unreasonable, then the Market will be considered to mean all states in
which the Company has a campus or other training center and all states that are contiguous to a state in which
the Company has a campus or other training center. If an arbitrator or arbitration panel finds that
definition of Market is unreasonable, the Market shall mean all states in which the Company has a campus or
other training center.

l. “Position” means the particular position of Executive Vice President and Chief Financial Officer.

m. “Regulations” means any laws, ordinances, regulations or rules of any governmental, regulatory or
administrative body, agent or authority, any court or judicial authority, or any public, private or industry
regulatory authority.

n. “Severance Period” means the period of time that the Company continues to pay Employee as set forth in
Section 9.

o. “Specified Employee” means any Company employee that the Company determines is a Specified Employee
within the meaning of Section 409A of the Code, by applying reasonable, objectively determinable
identification procedures as set forth in a resolution of the Board of Directors on December 10, 2007.

p. “Term of Employment” means the period commencing on the date Employee actually begins employment with
the Company, which shall be no later than July 31, 2008 ( the “Effective Date”) and terminating three (3)
years after the Effective Date. Employee acknowledges that the Company has no obligation to continue
Employee’s employment or this Agreement beyond the Term of Employment. The Term of Employment may also be
terminated with or without cause and without notice subject to the provisions of Section 8 and Section 9.

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q. “Termination Date” shall mean the last day of Employee’s employment with the Company.

2. Nature of Employment. Subject to the terms of this Agreement, the Company hereby agrees to continue to
employ Employee in the Position, and Employee hereby agrees to accept the continuation of such employment in the
Position, for the Term of Employment under this Agreement.

3. Extent of Employment.

While employed:

a. Employee agrees to perform the duties of the Position faithfully and to the best of Employee’s ability
at the principal offices of the Company or in locations as may be designated temporarily from time to time by
the Company or as necessary to fulfill the duties of the Position. Employee shall report to the President and
Chief Executive Officer, or as otherwise directed by the Board of Directors.

b. Employee shall abide by the policies, rules, customs, and usages as established by or existing at the
Company.

c. Employee shall devote all of his business time, energy and skill as may be reasonably necessary for
the performance of the duties, responsibilities, and obligations of the Position.

d. Employee shall not knowingly breach or violate any Regulations or rules of any governmental or
regulatory body in any material respect and shall not act in any manner which might reasonably be expected to
have a material adverse effect on the ongoing business, properties, assets, operations, condition (financial
or other), business relationships or prospects of any company in the Company Group.

e. Employee shall not commit or engage in any conduct, through action or omission, which would constitute
any of the offenses set forth in the definition of “Cause” under this Agreement.

f. Employee agrees to relocate to and live in the Phoenix, Arizona metropolitan area no later than
October 1, 2009.

4. Compensation. While Employee is employed by the Company, the Company shall pay Employee as follows:

a. A base salary, paid in twenty six (26) equal installments, at a rate of Three Hundred Thousand Dollars
($300,000) per annum. The Board of Directors shall annually, and in its sole discretion, determine whether the
base salary should be increased and, if so, in what amount.

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b. An annual bonus based on Employee’s performance as determined and approved by the Board of Directors
based on performance parameters set by the Board of Directors. For the fiscal year 2008, the bonus target
shall be 50% of Employee’s base salary, pro-rated for the time Employee is employed or was an independent
contractor during the fiscal year. Such bonus will be determined at the sole discretion of the Board of
Directors, and may not be paid at all. Employee acknowledges that no bonus will be paid if performance
parameters are not met. If the Board of Directors determines that such bonus shall be paid, such bonus shall
be paid by the fifteenth (15th) day of the third (3rd) month of the Employee’s taxable
year following the year in which the Employee becomes entitled to such bonus.

5. Reimbursement of Expenses. While Employee is employed, the Company shall reimburse Employee for
reasonably documented travel expenses, entertainment and other expenses reasonably incurred by Employee in connection
with the performance of the duties of the Position and, in each case, according to the reasonable rules, policies,
customs and usage promulgated by the Company from time to time. All reimbursements shall be made within thirty (30)
days of Employee’s submission of any reasonably documented expense reimbursement claim. The amount of expenses
eligible for reimbursement provided during one taxable year shall not affect the amount of expenses eligible for
reimbursement or in-kind benefits provided during any other taxable year. Employee may not elect to receive cash or any
other benefit in lieu of the reimbursements provided by this Section.

6. Relocation Benefits and Sign On Bonus. Employee shall be given a relocation allowance of up to
One Hundred and Fifty Thousand Dollars ($150,000) to assist in Employee’s commute to Phoenix prior to relocation and
the relocation of Employee and his family to Phoenix. This benefit shall be paid in accordance with and subject to the
terms of the Company relocation policies and procedures and shall be subject to the Employee’s execution of a repayment
agreement. Pursuant to the repayment agreement, Employee must repay all or a portion of the relocation benefits if
Employee “voluntarily terminates” employment. Termination for Good Reason as defined in Section 1, or the death or
disability of Employee, shall not be considered “voluntary” termination for purposes of the repayment agreement.
Company agrees to pay to Employee a one time bonus of Fifty Thousand Dollars ($50,000) less applicable payroll taxes,
within thirty (30) days of the execution of this Agreement by Employee.

7. Benefits. While Employee is employed, the Employee shall be entitled to perquisites and benefits
established from time to time, at the sole discretion of the Board of Directors for the Position, including without
limitation, health, short and long term disability, pension and life insurance benefits consistent with past practice,
or as increased from time to time; provided that the perquisites and benefits provided to Employee shall be at least
substantially equal to those provided to any other officer of the Company.

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8. Termination of Employment for Cause or without Good Reason. At any time during the Term of Employment,
Company may terminate Employee for Cause effective upon the giving to Employee a written notice of termination. If
Employee’s employment is terminated for Cause or Employee voluntarily terminates without Good Reason, Employee shall be
entitled to:

a. Payment of accrued and unpaid base salary and unused vacation through the Termination Date;

b. Reimbursement for expenses incurred through the Termination Date as set forth in Section 5.

9. Termination of Employment without Cause or for Good Reason. During the Term of Employment, the Company
may terminate Employee without Cause and without providing notice to Employee, and Employee may terminate employment
with the Company for Good Reason.

a. During the Term of Employment, if Employee is terminated without Cause or if Employee terminates for
Good Reason, either of which occurs without a Change of Control or Change of CEO, Employee shall be entitled
to the following items so long as Employee has signed the release described in Section 11 below and not
revoked it:

(i) The Company shall provide the items set forth in Section 8.a. and 8.b. above.

(ii) The Company shall pay to Employee, an amount equal to Employee’s base salary at the
highest rate in effect at any time during the twelve (12) months immediately preceding the
Termination Date, payable for a period of twelve (12) months (the “Severance Period”). Employee will
be paid this amount in equal bi-weekly installments according to the Company’s regular payroll
periods and practices. The first payment to which Employee is entitled shall be paid on the first
day of the month following the revocation period, if any, as set forth in Exhibit A. At all
times, the right to each monthly payment made under this Section 10 shall be treated as the right to
a series of separate payments within the meaning of 26 CFR Section 1.409A-2(b) (2) (iii).

(iii) Employee will be eligible for the fiscal year bonus if such bonus is approved by the Board
of Directors based upon parameters set by the Board of Directors. The amount of any such bonus will
be pro-rated based on the Termination Date and shall be paid at the time other employees are paid the
bonus, but in no event will such bonus be paid after the fifteenth (15th) day of the third
(3rd) month of the Employee’s taxable year following the year in which the Employee
becomes entitled to such bonus.

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(iv) Employee’s then current medical and dental benefits will continue pursuant to Company
policy and the provisions of any applicable benefit plan. Beginning on the first day that active
employee coverage is ineffective, Employee may elect to continue current medical and dental benefits
for up to twelve (12) months in accordance with any applicable plan provisions and the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA). In addition, the Company will continue to pay a
monthly amount equal to the Company paid portion of the insurance premium for the coverage held by
Employee as of the Termination Date, and any administrative fee, for a period of twelve (12) months.
Upon Employee’s employment with another employer, to the extent Employee and his dependants are
eligible for substantially equivalent benefits under the new employer’s plan, the Company will no
longer be obligated to pay for the continuation coverage.

	 	99.	 	All stock Awards (as defined by any applicable Plan),
including stock options and restricted stock, shall be governed by the terms and
provisions of the Plan and the grant Agreement under which such Award was granted.

(vi) Employee’s participation in and/or coverage under all other employee benefit plans,
programs or arrangements sponsored or maintained by the Company shall cease to be effective as of the
Termination Date, unless such benefit, program or plan is inalienable under the law.

(vii) The Company shall pay for twelve (12) months of outplacement services through a provider
selected by the Company for the twelve (12) month period immediately following the Termination Date.

(viii) The children of Employee shall be eligible to attend any Company location or program
without paying tuition.

b. During the Term of Employment, if Employee is terminated without Cause or if Employee terminates for
Good Reason, either of which occurs within twelve (12) months of a Change of Control or a Change of CEO within
twelve (12) months of the execution of this Agreement, Employee shall be entitled to the following items so
long as Employee has signed the release described in Section 11 below and not revoked it:

(i) Except for the bonus set forth in Section 9.a.(iii), all of the payments and benefits as set
forth in Section 9.a. above;

(ii) The Company shall also pay to Employee Employee’s maximum targeted bonus for the fiscal
year in which the Termination Date occurs prorated to the Termination Date. Employee will be paid
this bonus amount over the Severance Period in equal bi-weekly installments according to the
Company’s regular payroll periods and practices;

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c. In addition to the pro-rated bonus set forth above in Section 9 a. iii or 9 b.ii, to the extent
Employee’s Termination Date is prior to the date on which the Company has paid any bonus to which the Employee
may be entitled for the fiscal year immediately preceding the Termination Date, (i.e. between the end of the
fiscal year and the bonus payout), Employee will receive such bonus in a lump sum on the same date as Employee
would have received such bonus had Employee remained continuously employed by the Company.

d. If any payment or benefit Employee would receive under this Agreement, when combined with any other
payment or benefit Employee receives pursuant to the termination of Employee’s employment with the Company
(“Payment”), would:

(i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and

(ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be whichever of the following amounts, taking into
account the applicable federal, state and local employment taxes, income taxes, and the Excise Tax,
results in Employee’s receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax:

(a) the full amount of such Payment; or

	 	(b)	 	such lesser amount (with cash payments
being reduced) as would result in no portion of the Payment being subject to
the Excise Tax.

(iii) All determinations required to be made under this Section 10(f), including whether and to
what extent the Payments shall be reduced and the assumptions to be utilized in arriving at such
determination, shall be made by a national independent accounting firm registered with the Public
Company Accounting Oversight Board as will be designated by the Company (the “Accounting Firm”). The
Accounting Firm shall provide detailed supporting calculations both to Employee and the Company at
such time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne
solely by the Company. For purposes of making the calculations required by this Section 10(g), the
Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and
may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and
4999 of the Code.      

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e. Notwithstanding any other provision of this Agreement to the contrary, neither the time nor the
schedule of any payment under this Agreement may be accelerated or subject to a further deferral except as
provided in 26 C.F.R. § 1.409A-3 (j) (4).

f. The Employee does not have any right to make any election regarding the time or form of any payment
due under this Agreement.

g. If the Company fails to make any payment under this Agreement, either intentionally or
unintentionally, within the time period specified in this Agreement, but the payment is made within the same
calendar year, such payment will be treated as made within the time period specified in the Agreement pursuant
to 26 C.F.R. § 1.409A-3(d). In addition, if a payment is not made due to a dispute with respect to such
payment, the payment may be delayed in accordance with 26 C.F.R. § 1.409A-3(g).

h. For purposes of this Agreement, the determination of whether Employee has terminated employment will
be made in accordance with 26 C.F.R. Section 1.409A-1(h) (1) (m). This Agreement shall be administered in
compliance with Section 409A of the Code and each provision shall be interpreted, to the extent possible, to
comply with Section 409A.

i. All severance payments payable under Sections 9 a. ii. And 9 b. i. which have become payable under this
Agreement due to the termination of Employee without Cause or for Good Reason, shall continue to be payable to the
estate of Employee in the event of Employee’s death.

Notwithstanding any of the foregoing, if the Employee is a Specified Employee on the Termination Date, all
monthly payments, if any, that are to be made following the fifteenth (15th) day of the third
(3rd) month of the Employee’s taxable year following the Employee’s taxable year in which Termination Date
occurred, but before the date which is six (6) months following the Termination Date, that are, in the aggregate, in
excess of the Excludable Compensation shall be paid in a lump-sum on the first (1st) day of the seventh
(7th) month following the Employee’s Termination Date or, if earlier, the date the Employee dies following
the Termination Date. For purposes of this Section 9, “Excludable Compensation” shall equal the lesser of two times
(i) the Employee’s annualized base compensation for the Employee’s taxable year prior to the Employee’s taxable year in
which the Termination Date occurred or (ii) the applicable limit set forth in Section§ 401(a) (17) of the Code for the
year in which the Termination Date occurred.

10. Mitigation or Reduction of Benefits. In the event of termination of employment as set forth in
Section 10 above, Employee shall not be required to mitigate the amount of any payment provided for in that Section by
seeking other employment or otherwise. Except as otherwise specifically set forth herein, the amount of any payment or
benefits provided in Section 9 shall not be reduced by any compensation or benefits or other amounts paid to or earned
by Employee as the result of employment by another employer after the Termination Date.

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11. Release. In order to receive payments and benefits described in Section 10, other than those provided
in Section 8, Employee must execute a Release in the form attached as Exhibit A, and that Release must become
effective by Employee not revoking it. If Employee fails to sign the Release within the period provided in the Release,
or if Employee revokes the Release within the seven (7) day revocation period provided therein, Employee will forfeit
any right to the payments and benefits described in Section 9. As a general rule, Employee shall receive the Release
from the Company on or before Employee’s Termination Date, but in no event will Employee receive the Release more than
ten (10) days following Employee’s Termination Date.

12. Covenant Not to Compete. In consideration of this Agreement, and the employment under it, the parties
have agreed to the following Covenant Not to Compete.

a. Post Termination Restrictions. Employee acknowledges that the services provided under this Agreement
give Employee the opportunity to have special knowledge of the Company, its Confidential Information, and the
capabilities of individuals employed by or affiliated with the Company. Employee further acknowledges that
interference with those business or employment relationships with the Company would cause irreparable injury
to the Company. Consequently, Employee covenants and agrees that:

(i) From the Effective Date hereof until twelve (12) months (or for eight (8) months if an
arbitrator or arbitration panel finds that twelve (12) months are unreasonable) after the Termination
Date, Employee will not, without the express written approval of a majority of the Board of
Directors, directly or indirectly, anywhere in the Market, in one or a series of transactions,
Compete against Company, as defined in Section 1 above, without regard to (a) whether the Competitive
Business has its office or other business facilities within or outside the Market, (b) whether any of
the activities of the Employee referred to above occur or are performed within or outside the Market,
or (c) whether the Employee resides, or reports to an office, within or outside the Market.

(ii) From the effective date hereof until twelve (12) months after the Termination Date (which
shall not be reduced by (a) any period of violation of this Agreement by Employee or (b) if the
Company is the prevailing party in any litigation to enforce its rights under this Section 12, the
period which is required for such litigation), Employee will not, without the express prior written
approval of a majority of the Board of Directors, directly or indirectly, in one or a series of
transactions: (i) recruit, solicit or otherwise induce or influence any proprietor, partner,
stockholder, lender, director, officer, employee, sales agent, joint venturer, investor, lessor,
customer, agent, representative or any other person which has a business relationship with the
Company or had a business relationship with the Company within the twelve (12) month period preceding
the date of the incident in question, to discontinue, reduce or modify such employment, agency or
business relationship with the Company; or (ii) employ or seek to employ or cause any Competitive
Business to employ or seek to employ any person or agent who is then (or was at any time within
twelve (12) months prior to the date the Employee or the Competitive Business employs or seeks to
employ such person) employed or retained by the Company. Notwithstanding the foregoing, nothing
herein shall prevent the Employee from providing a personal letter of recommendation to an employee
of the Company with respect to a future or any other employment opportunity.

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(iii) The scope and term of this Section 12 would not preclude Employee from earning a living in
an occupation or position with an entity that is not a Competitive Business.

b. Acknowledgment Regarding Restrictions. Employee recognizes and agrees that the restraints contained
in Section 12 (both separately and in total) are reasonable and should be fully enforceable in view of the
high level positions Employee has had with the Company, and the Company’s legitimate interests in protecting
its Confidential Information and its goodwill and relationships. Employee specifically hereby acknowledges and
confirms that Employee is willing and intends to, and will, abide fully by the terms of Section 12 of this
Agreement. Employee further agrees that the Company would not have adequate protection if Employee were
permitted to work in a Competitive Business in violation of the terms of this Agreement since the disclosure
of Confidential Information is inevitable and the Company would be unable to verify whether its Confidential
Information was being disclosed and/or misused.

c. Company’s Right to Cease and Recoup Payments and Obtain Injunctive Relief. In the event of a breach
or imminent breach of any of Employee’s duties or obligations under this Agreement, the Company shall be
entitled to immediately cease all payments and benefits to Employee under Section 9 and, in the event of an
actual breach, require Employee to disgorge and repay to Company all payments and benefits previously paid to
or conferred upon Employee under Section 9 of this Agreement after the commencement of Employee’s breach.
Employee agrees that if Employee breaches any duties or obligations Employee has under this Agreement, that,
except for sums set forth in Section 8, Employee has no right to any money or benefits under Section 10 of
this Agreement and that Employee must return any money paid to Employee under that section. In addition to any
other legal or equitable remedies the Company may have (including any right to damages that it may suffer),
the Company shall be entitled to temporary, preliminary and permanent injunctive relief restraining such
breach or imminent breach. Employee hereby expressly acknowledges that the harm which might result to
Company’s business as a result of noncompliance by Employee with any of the provisions of this Agreement would
be largely irreparable. Each party undertakes and agrees that if she/it breaches or threatens to breach the
Agreement, she/it shall be liable for any attorneys’ fees and costs incurred by the other party in enforcing
its rights hereunder.

d. Employee Agreement to Disclose this Agreement. Employee agrees to disclose, during the Severance
Period, the terms of this Section 12 to any potential future employer.

e. Survival. The terms of this entire Section 12 shall survive the termination of Employee’s employment
under this Agreement regardless of who terminates employment or the reasons therefore.

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13. Confidential Information.

a. During and after the Term of Employment, Employee will not, directly or indirectly, in one or a series
of transactions, disclose to any person, or use or otherwise exploit for the Employee’s own benefit or for the
benefit of anyone other than the Company, any Confidential Information, whether prepared by Employee or not;
provided, however, that any Confidential Information may be disclosed (i) to officers, representatives,
employees and agents of the Company who need to know such Confidential Information in order to perform the
services or conduct the operations required or expected of them in the business, and (ii) in good faith by the
Employee in connection with the performance of Employee’s duties hereunder to persons who are authorized to
receive such information by the Company. Employee shall use Employee’s best efforts to prevent the removal of
any Confidential Information from the premises of the Company, except as required in Employee’s normal course
of employment by the Company. Employee shall use Employee’s best efforts to cause all persons or entities to
whom any Confidential Information shall be disclosed by Employee hereunder to observe the terms and conditions
set forth herein as though each such person or entity was bound hereby. Employee shall have no obligation
hereunder to keep confidential any Confidential Information, if and to the extent disclosure of any such
information is specifically required by law or requested by a governmental agency; provided, however, that in
the event disclosure is required by applicable law or requested by a governmental agency, the Employee shall
provide the Company with prompt notice of such requirement or request, prior to making any disclosure, so that
the Company may seek an appropriate protective order. At the request of the Company, Employee agrees to
deliver to the Company, at any time during the Term of Employment, or thereafter, all Confidential Information
which Employee may possess or control. Employee agrees that all Confidential Information of the Company
(whether now or hereafter existing) conceived, discovered or made by Employee during the Term of Employment
exclusively belongs to the Company (and not to Employee). Employee will promptly disclose such Confidential
Information to the Company and perform all actions reasonably requested by the Company to establish and
confirm such exclusive ownership.

b. The terms of this entire Section 13 shall survive the termination of Employee’s employment under this
Agreement regardless of who terminates employment or the reasons therefore.

14. Notice. All notices hereunder shall be in writing and shall be deemed to have been duly given (a)
when delivered personally or by courier, or (b) on the third business day following the mailing thereof by registered
or certified mail, postage prepaid, or (c) on the first business day following the mailing thereof by overnight
delivery service, in each case addressed as set forth below:

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If to the Company:

Universal Technical Institute, Inc.

20410 North 19th Avenue, Suite 200

Phoenix, Arizona 85027

Facsimile No.: (623) 445-9501

Attn: General Counsel

With a copy to:

Chairman of the Compensation Committee

of the Board of Directors

20410 North 19th Avenue, Suite 200

Phoenix, Arizona 85027

If to Employee:

Eugene Putnam

5629 Longmont Drive

Houston, TX 77056

Any party may change the address to which notices are to be addressed by giving the other party written notice in
the manner herein set forth.

15. Employee Expenses in the Event of Dispute. If Employee’s employment is terminated by the Company
within the Term of Employment and there is a dispute with respect to this Agreement, then all of Employee’s reasonable
legal expenses incurred by Employee (a) to defend the validity of this Agreement, (b) if Employee’s employment has been
terminated for Cause, to contest such termination, (c) to contest any determinations by the Company concerning the
amounts payable by the Company under this Agreement, or (d) to otherwise obtain or enforce any right or benefit
provided to Employee by this Agreement, shall be paid by the Company if Employee is the prevailing party. Such
expenses shall be paid, if at all, within thirty (30) days of the date of the determination that Employee is the
prevailing party, but in no event later than December 31st of the taxable year following the year in which
the Employee incurred the expenses. The expenses reimbursed in one taxable year will not affect the expenses eligible
for reimbursement by the Company in a different taxable year. All reimbursements of the expenses must be made no later
than December 31st of the taxable year following the taxable year in which the expenses were incurred. The
Employee may not elect to receive cash or any other benefit in lieu of the benefits provided by this Section.

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16. Agreement to Arbitrate. All disputes or claims regarding this Agreement shall be submitted for
resolution exclusively to binding arbitration under the Commercial Rules of Arbitration of the American Arbitration
Association in Phoenix, Arizona. The arbitrator or arbitration panel shall have the authority to award temporary or
permanent injunctive relief and to award attorneys’ fees and costs to the prevailing party. Any temporary or permanent
injunctive relief ordered by the arbitrator or the arbitration panel may be enforced in court by either party by
seeking judicial confirmation of such award.

17. Successors; Binding Agreement.

a. The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, upon or
prior to such succession, to expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would have been required to perform it if no such succession had taken place.
A copy of such assumption and agreement shall be delivered to Employee promptly after its execution by the
successor. Failure of the Company to obtain such agreement upon, or prior to, the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle Employee to benefits from the Company in the
same amounts and on the same terms as Employee would be entitled hereunder if Employee terminated Employee’s
employment for Good Reason. For purposes of the preceding sentence, the date on which any such succession
becomes effective shall be deemed the Termination Date. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes
and delivers the agreement provided for in this Section 18 or which otherwise becomes bound by the terms and
provisions of this Agreement by operation of law.

b. This Agreement is personal to Employee and Employee may not assign or delegate any part of Employee’s
rights or duties hereunder to any other person, except that this Agreement shall inure to the benefit of, and
be enforceable by, Employee’s legal representatives, executors, administrators, heirs and beneficiaries.

18. Severability. If any provision of this Agreement or the application thereof to any person or
circumstance shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement and the
application of such provision to persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be affected thereby, and each provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law. An arbitrator or arbitration panel can reasonably modify this Agreement by rewriting
it and/or it can “blue-pencil” this Agreement by striking things out.

19. Headings. The headings in this Agreement are inserted for convenience of reference only and shall not
in any way affect the meaning or interpretation of this Agreement.

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20. Counterparts. This Agreement may be executed in one or more identical counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

21. Waiver. Neither any course of dealing nor any failure or neglect of either party hereto in any
instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of such right,
power or privilege or of any other right, power or privilege or of the same right, power or privilege in any other
instance. Without limiting the generality of the foregoing, Employee’s continued employment without objection shall not
constitute Employee’s consent to, or a waiver of, Employee’s rights with respect to any circumstances constituting Good
Reason. All waivers by either party hereto must be contained in a written instrument signed by the party to be charged
therewith, and, in the case of the Company, by a resolution adopted by a majority of the Board of Directors.

22. Entire Agreement. This instrument constitutes the entire agreement of the parties in this matter and
shall supersede any other agreement between the parties, oral or written, concerning the same subject matter.

23. Amendment. This Agreement may be amended only by a writing which makes express reference to this
Agreement as the subject of such amendment and which is signed by Employee and by the Chairman of the Compensation
Committee of the Board of Directors or the Chairman’s designee.

24. Governing Law. In light of Company’s and Employee’s substantial contacts with the State of Arizona,
the facts that the Company is headquartered in Arizona and Employee resides in and provides services to the Company in
Arizona, the parties’ interests in ensuring that disputes regarding the interpretation, validity and enforceability of
this Agreement are resolved on a uniform basis, and Company’s execution of, and the making of, this Agreement in
Arizona, the parties agree that: (a) any arbitration or litigation involving any noncompliance with or breach of the
Agreement, or regarding the interpretation, validity and/or enforceability of the Agreement, shall be filed and
conducted exclusively in the state of Arizona; and (b) the Agreement shall be interpreted in accordance with and
governed by the laws of the State of Arizona, without regard for any conflict/choice of law principles.

IN WITNESS WHEREOF, Employee and the Company have executed this Agreement as of the day and year first above
written.

UNIVERSAL TECHNICAL INSTITUTE, INC.

By: /s/ Chad A. Freed                                              

Eugene S. Putnam, Jr.

By: /s/ Eugene S. Putnam, Jr.                                   

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SCHEDULE 1

Companies in the Company Group consist of:

	 	a.	 	Universal Technical Institute, Inc.

	 	b.	 	UTI Holdings, Inc.

	 	c.	 	U.T.I. of Illinois, Inc.

	 	d.	 	Universal Technical Institute of Texas, Inc.

	 	e.	 	Universal Technical Institute of California, Inc.

	 	f.	 	Custom Training Group, Inc.

	 	g.	 	The Clinton Harley Corporation

	 	h.	 	Universal Technical Institute of Arizona, Inc.

	 	i.	 	Universal Technical Institute of North Carolina, Inc.

	 	j.	 	Universal Technical Institute of Northern California, Inc.

	 	k.	 	Universal Technical Institute of Massachusetts, Inc.

	 	l.	 	Universal Technical Institute of Pennsylvania, Inc.

	 	m.	 	Universal Technical Institute of Phoenix, Inc.

 

 

 

 

Exhibit A

RELEASE

This RELEASE (the “Release”) dated      ,      is by and between Eugene S. Putnam. Jr. (“Employee”) and
Universal Technical Institute, Inc., a Delaware corporation (“Company”);

WHEREAS, the Company and Employee are parties to an Employment Agreement dated      , 2008 (the “Employment
Agreement”), which provides certain protection to Employee during employment and upon termination of employment; and

WHEREAS, the execution of this Release is a condition precedent to, and material inducement to, the Company’s
provision of certain benefits under the Employment Agreement;

NOW, THEREFORE, the parties hereto agree as follows:

1. Mutual Promises. The Company undertakes the obligations contained in the Employment Agreement, which are in
addition to any compensation to which Employee might otherwise be entitled, in exchange for Employee’s promises and
obligations contained herein. The Company’s obligations are undertaken in lieu of any other employment benefits.

2. Release of Claims; Agreement Not to File Suit.

a. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors,
administrators, successors, assigns and anyone claiming through or under any of the foregoing, agrees to, and
does, release and forever discharge the Company and its subsidiaries and affiliates, each of their
shareholders, directors, officers, employees, agents and representatives, and its successors and assigns
(collectively, the “Company Released Persons”), from any and all matters, claims, demands, damages, causes of
action, debts, liabilities, controversies, judgments and suits of every kind and nature whatsoever, foreseen
or unforeseen, known or unknown, which have arisen or could arise from matters which occurred prior to the
date of this Release, which matters include without limitation: (i) the matters covered by the Employment
Agreement and this Release, and (ii) Employee’s employment, and/or termination from employment with the
Company.

b. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors,
administrators, successors, assigns, and anyone claiming through or under any of the foregoing, agrees that
Employee will not file or otherwise submit any arbitration demand, claim, complaint, or action to any court,
organization, or judicial forum (nor will Employee permit any person, group of persons, or organization to
take such action on Employee’s behalf) against any Company Released Person arising out of any actions or
non-actions on the part of any Company Released Person arising out of the parties’ employment relationship
before the date of this Release or any action taken after the date of this Release pursuant to the Employment
Agreement. Employee further agrees that in the event that any person or entity should bring such a charge,
claim, complaint, or action on Employee’s behalf, Employee hereby waives and forfeits any right to recovery
under said claim and will exercise every good faith effort to have such claim dismissed.

 

 

 

 

c. The charges, claims, complaints, matters, demands, damages, and causes of action referenced in
Sections 2(a) and 2(b) include, but are not limited to: (i) any breach of an actual or implied contract of
employment between Employee and any Company Released Person, (ii) any claim of unjust, wrongful, or ÿortuous
discharge (including, but not limited to, any claim of fraud, negligence, retaliation for whistle blowing, or
intentional infliction of emotional distress), (iii) any claim of defamation or other common law action, or
(iv) any claims of violations arising under the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et
seq., the Age Discrimination in Employment Act, 29 U.S.C. §621 et seq., the Americans with
Disabilities Act of 1990, 42 U.S.C. §12101 et seq., the Fair Labor Standards Act of 1938, as amended, 29
U.S.C. §201 et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. §701 et seq., the
Family and Medical Leave Act, or any other relevant federal, state, or local statutes or ordinances, or any
claims for pay, vacation pay, insurance, or welfare benefits or any other benefits of employment with any
Company Released Person arising from events occurring prior to the date of this Release other than those
payments and benefits specifically provided herein.

d. This Release shall not affect Employee’s right to any governmental benefits payable under any Social
Security or Worker’s Compensation law now or in the future.

e. This Release does not affect Employee’s right to participate in any federal, state or local
investigation by any governmental agency or to challenge the validity of this Agreement. Further, this Release
is not intended to be a release of any claims under the Arizona Minimum Wage Act, effective January 1, 2007.

3. Release of Benefit Claims. Employee, for and on behalf of him or herself and his/her heirs, beneficiaries,
executors, administrators, successors, assigns and anyone claiming through or under any of the foregoing, further
releases and waives any claims for pay, vacation pay, insurance or welfare benefits or any other benefits of employment
with any Company Released Person arising from events occurring prior to the date of this Release other than claims to
the payments and benefits specifically provided for in the Employment Agreement and claims for benefits which are not
subject to waiver under the law.

4. Revocation Period; Knowing and Voluntary Agreement. Employee acknowledges that he/she is knowingly and
voluntarily waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act, as
amended, (“ADEA”). Employee also acknowledges that the consideration given for the waiver and release in the preceding
Section is in addition to anything of value to which he/she would be entitled to without this Agreement. Employee
further acknowledges that Employee is advised by this writing, as required by the ADEA, that: (a) this waiver and
release do not apply to any rights or claims that may arise after execution date of this Agreement; (b) Employee has
been advised of having had the right to consult with an attorney prior to signing this Agreement; (c) Employee has
twenty-one (21) days to consider this Agreement (although Employee may choose to voluntarily execute this Agreement
earlier); (d) Employee has seven (7) days following the signing of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement shall not be effective until the date upon which the revocation period has expired,
which shall be the eighth day after this Agreement is executed by the Employee.

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5. Severability. If any provision of this Release or the application thereof to any person or circumstance shall
to any extent be held to be invalid or unenforceable, the remainder of this Release and the application of such
provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be
affected thereby, and each provision of this Release shall be valid and enforceable to the fullest extent permitted by
law.

6. Headings. The headings in this Release are inserted for convenience of reference only and shall not in any way
affect the meaning or interpretation of this Release.

7. Counterparts. This Release may be executed in one or more identical counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument.

8. Entire Agreement. This Release and related Employment Agreement constitutes the entire agreement of the
parties in this matter and shall supersede any other agreement between the parties, oral or written, concerning the
same subject matter.

9. Governing Law. This Release shall be governed by, and construed and enforced in accordance with, the laws of
the State of Arizona, without reference to the conflict of laws rules of such State.

IN WITNESS WHEREOF, Employee and the Company have executed this Release as of the day and year first above written.

UNIVERSAL TECHNICAL INSTITUTE, INC.

By:                                                                                   

EUGENE S. PUTNAM, JR.

By:                                                                                   

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