Document:

Eighth Amendment of ESI Pension Plan

 Exhibit 10.49 
  
 EIGHTH AMENDMENT 
 OF ESI PENSION PLAN 
  
 This Eighth
Amendment of ESI Pension Plan (the “Plan”) is adopted by ITT Educational Services, Inc. (the “Employer”). 
  
 Background 
  
 A. The Employer originally established the Plan effective June 9, 1998. 
  
 B. The Plan has been amended by a First, Second, Third, Fourth, Fifth, Sixth and Seventh Amendment. 
  
 C. The Employer now wishes to amend the Plan further. 
  
 Amendment 
  
 1. Effective January 1, 2005, the definition of “Compensation”
at Section 2.01 is amended to read as follows: 
  
 “Compensation” means, with respect to an Employee for a Plan Year, the Employee’s wages, salaries, fees for professional services, and other amounts received for personal services actually rendered in the course of employment
with the Employer to the extent that the amounts are included in gross income. For purposes of Sections 6.02 and 6.03, an Employee’s salary specifically includes retention bonuses and lump sum vacation pay, and specifically excludes curriculum
development pay, settlement agreement pay, lieu of notice pay, short term disability pay and severance pay. Compensation also includes amounts contributed by the Employer pursuant to a salary reduction agreement that are not includable in the gross
income of the Member under Code section 125 or 457, subsection 402(h) or 403(b), or paragraph 132(f)(4) or 402(e)(3); and Employee contributions described in Code paragraph 414(h)(2) that are treated as Employer contributions.
Compensation does not include, whether or not included in gross income, reimbursements or other expense allowances; fringe benefits (cash and non-cash); moving expenses (including settling in allowances); or nonqualified deferred compensation;
welfare benefits; amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by an employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture. Except as
permitted by the Code for purposes of Section 7.08 and Articles XI and XIII, an Employee’s Compensation will not exceed the limit described at Section 15.04. 

 2. Effective March 28, 2005, Subsection 7.01(a) is amended to read as follows: 
  
 (a) If the value of the balance of the Member’s Cash
Balance Account is $1,000 or less on the date his benefits are payable, which will be as soon as administratively feasible after his Separation from Service, his benefit will be paid to him in a lump sum cash payment. If the value of the balance of
the Member’s Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date his benefits are payable, his benefit will be paid to him in a lump sum cash payment as of the first day of any month occurring after he Separates from
Service and on or before his Required Beginning Date, as he elects. If the value of the balance of the Member’s Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date his benefits are payable, but later exceeds $5,000, his
benefits will be paid to him in accordance with Subsection (b) as though he deferred payment to a time after his benefits were first payable. 
  
 3. Effective March 28, 2005, Subsection 7.02(a) is amended to read as follows: 
  
 (a) If the present value of the balance of the Member’s Cash Balance Account on the date that is the
first anniversary of his Disability Date is $1,000 or less, his benefit will be paid to him as soon as administratively feasible after the first anniversary of his Disability Date. If the value of the balance of the Member’s Cash Balance
Account on the date that is the first anniversary of his Disability Date exceeds $1,000 but does not exceed $5,000, his benefit will be paid to him as of the first day of any month occurring after the first anniversary of his Disability Date and on
or before his Required Beginning Date, as he elects. If the value of the balance of the Member’s Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date that is the first anniversary of his Disability Date, but later exceeds
$5,000, his benefits will be paid to him in accordance with Subsection (b) as though he deferred payment to a time after his benefits were first payable. 
  

4. Effective March 28, 2005, Subsection 7.03(a) is amended to read as follows: 
  
 (a) If the present value of the balance of the Member’s Cash Balance Account is $1,000 or less on the
date his benefits are payable, which is as soon as administratively feasible after his Separation from Service occurs, a benefit equal to the present value of his Cash Balance Account will be paid to him in a single lump sum cash payment as soon as
administratively feasible after the last day of the Plan Year in which his Separation from Service occurs. If the present value of the balance of the Member’s Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date his
benefits are payable, a benefit equal to the present value of his Cash Balance Account will be paid to him in a single lump sum cash payment on the first day of any month occurring after he Separates from Service and on or before his Required
Beginning Date, as he elects. If the present value of the balance of the Member’s Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date his benefits are payable, but later exceeds $5,000, his benefits will be paid to him in
accordance with Subsection (b) as though he deferred payment to a time after his benefits were first payable. 
  

 - 2 - 

 5. Effective March 28, 2005, Subsection 7.04(a) is amended to read as follows: 
  
 (a) If the present value of the balance of the Member’s
Cash Balance Account on the date of his death, together with the amount of any prior distributions from the Plan, is $1,000 or less, a benefit equal to the present value of the Member’s Cash Balance Account will be paid to his Beneficiary in a
single lump sum cash payment as soon as administratively feasible after his death. If the present value of the balance of the Member’s Cash Balance Account on the date of his death, together with the amount of any prior distributions from the
Plan, exceeds $1,000 but does not exceed $5,000, a benefit equal to the present value of his Cash Balance Account will be paid to his Beneficiary in a single lump sum cash payment as of the first day of any month the Beneficiary designates, if his
Beneficiary is the Member’s Spouse, or as soon as administratively feasible after his death, if his Beneficiary is not his Spouse. If the present value of the balance of the Member’s Cash Balance Account on the date of his death, together
with the amount of any prior distributions from the Plan, exceeds $1,000 but does not exceed $5,000, but exceeds $5,000 on the date as of which his Spouse elects to receive it, the Spouse’s benefit will be paid to the Spouse in accordance with
Subsection (b) as though the Member’s death occurred on the date as of which the Spouse elected to receive the benefit. 
  
 6. Effective January 1, 2004, Paragraph 11.02(a)(4) is amended to read as follows: 
  
 (4) For purposes of adjusting the limit under
Paragraph (3), the interest rate assumption used for distributions with Annuity Starting Dates in 2004 will be the greatest of the applicable interest rate (as defined in Code paragraph 417(e)(3)) in effect on December 31, 2003, 5.5%
and the rate used to compute an Actuarial Equivalent; the interest rate assumption used for distributions with Annuity Starting Dates in 2005 will be the greater of 5.5% and the rate used to compute an Actuarial Equivalent; and the interest rate
assumption used for distributions with Annuity Starting Dates in 2006 and later Plan Years will be the greater of the applicable interest rate (as defined in Code paragraph 417(e)(3)) and the rate used to compute an Actuarial Equivalent. For
purposes of adjusting the limit under Paragraph (2), the interest rate assumption will be the lesser of 5% or the rate used to compute an Actuarial Equivalent. For purposes of adjusting any limit or benefit under Paragraph (1),
(2) or (3), the mortality table used will be the table prescribed in Revenue Ruling 2001-62. 
  
 7. Effective March 28, 2005, Section 7.16 is amended to read as follows: 
  
 Section 7.16. Annual Determination of Cash Balance Accounts. For purposes of
Sections 7.01, 7.02, 7.03 and 7.04, the determination of whether the present value of a Member’s Cash Balance Account is $1,000 or less will be made at the time the benefit is first payable and again once each Plan Year after the benefit
is first payable. If at any time a determination is made that the present value of a Member’s Cash Balance Account is $1,000 or less, the benefit will be paid to the Member or his or her Beneficiary in a lump sum cash payment as soon as
administratively feasible after the determination. 
  

 - 3 - 

 This Eighth Amendment of ESI Pension Plan is executed this 15 day of April , 2005. 
  

			
	ITT EDUCATIONAL SERVICES, INC.
		
	 By:
	 	 /s/ Nina Esbin

	 	 	(Signature)
		
	 	 	 Nina Esbin

	 	 	(Printed)
		
	 	 	 Sr. VP, Human Resources

	 	 	(Title)

  
 ATTEST: 
  

	
	 /s/ Jenny Yonce

	 (Signature)

	
	 Jenny Yonce

	 (Printed)

	
	 Mgr, Benefits & HRIS

	 (Title)

  

 - 4 -Fourth Amendment of ESI 401(k) Plan

 Exhibit 10.50 
  
 FOURTH AMENDMENT OF ESI 401(k) PLAN 
  
 This Fourth Amendment of the ESI 401(k) Plan (the “Plan”) is adopted by ITT Educational Services, Inc. (the
“Employer”). 
  
 Background 
  
 A. Effective May 15, 1998, the Employer amended and completely restated
the Plan. 
  
 B. The Plan has been amended by a First, Second and
Third Amendment. 
  
 C. The Employer now wishes to amend the Plan
further. 
  
 Amendment 
  
 1. Effective April 1, 2005, the definition of “Salary” at
Section 2.54 is amended to read as follows: 
  
 “Salary” shall mean, with respect to an Employee for a Plan Year, the Employee’s wages, salaries, fees for professional services, and other amounts received for personal services actually rendered in the course of
employment with the Company to the extent that the amounts are included in gross income, but excluding bonuses (other than retention bonuses). “Salary” specifically includes retention bonuses and lump sum vacation pay, and specifically
excludes curriculum development pay, settlement agreement pay, lieu of notice pay, short term disability pay and severance pay. “Salary” also includes amounts contributed by the Company pursuant to a salary reduction agreement that are not
includible in the gross income of the Member under section 125, 457, 402(h), 403(b), or 402(e)(3) of the Code, and Employee contributions described in section 414(h)(2) of the Code that are treated as Employer contributions. Salary
does not include, whether or not included in gross income, reimbursements or other expense allowances, fringe benefits (cash and non-cash), moving expenses (including settling in allowances), nonqualified deferred compensation, welfare benefits, or
amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by an employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture. Salary shall not exceed the
limit described at Section 18.4. 

 2. Effective March 28, 2005, Sections 11.1(b) and (c) are amended to read as follows:

  
 (b) In lieu of a distribution as described in
paragraph (a) above, a Member or Deferred Member whose Vested Share exceeds $1,000, may, in accordance with procedures prescribed by the Committee, elect to have the distribution of his or her Vested Share commence as of any Valuation Date
coincident with or following his or her Termination of Employment that is before the date described in paragraph (a) above. 
  
 (c) In the case of the death of a Member or Deferred Member before payment of his or her Accounts commences, the Vested Share of his or
her Accounts shall be distributed to his or her Beneficiary as soon as administratively practicable following the Member’s or Deferred Member’s date of death. Notwithstanding the foregoing, the Beneficiary of a Member or Deferred Member
whose Vested Share of his or her Accounts, as of the Valuation Date coincident with or next following the Member’s or Deferred Member’s date of death, exceeds $1,000 may elect to defer receipt of the Member’s or Deferred Member’s
Vested Share for a period not to exceed 12 months from the Member’s or Deferred Member’s date of death. 
  
 3. Effective March 28, 2005, the first paragraph of Section 11.2(b) is amended to read as follows: 
  
 (b) A Member or Deferred Member whose Vested Share, as of
the Valuation Date corresponding to his or her application for distribution, exceeds $1,000 but does not exceed $5,000, may elect, in accordance with the administrative procedures and within the time period prescribed by the Committee, to receive
his or her Vested Share in a lump sum payment. A Member or Deferred Member whose Vested Share, as of the Valuation Date corresponding to his or her application for distribution, exceeds $5,000, may elect, in accordance with the administrative
procedures and within the time period prescribed by the Committee, to receive his or her Vested Share in one of the following optional forms: 
  
 4. Effective March 28, 2005, Subsection 11.3 is amended to read as follows: 
  
 11.3 Small Benefits. Notwithstanding any provision of the Plan to the contrary, a lump sum payment
shall be made in lieu of all vested benefits if the value of the Vested Share of the Member’s Accounts as of the time the benefits are distributed amounts to $1,000 or less. The lump sum payment shall automatically be made as soon as
administratively practicable following the Member’s Termination of Employment. 
  
 5. Effective March 28, 2005, Section 16.4 is amended to read as follows: 
  
 16.4 Inalienability of Benefits. 
  
 (a) Except as specifically provided in the Plan or as applicable law may otherwise require or as may be required under the terms of a
Qualified Domestic Relations Order, no benefit under the Plan shall be subject in any manner to anticipation, alienation, 
  

 - 2 - 

 sale, transfer, assignment, pledge, encumbrance, or charge, and any attempts to do so shall be void, and
no Plan benefit shall be in any manner liable for or subject to debts, contracts, liabilities, engagements, or torts of the person entitled to the benefit. In the event that the Committee finds that any Member, Deferred Member, or Beneficiary who is
or may become entitled to benefits hereunder has become bankrupt or that any attempt has been made to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge any of his or her benefits under the Plan, except as specifically
provided in the Plan or as otherwise required by applicable law, then the benefit shall cease and terminate, and in that event the Committee shall hold or apply the same to or for the benefit of the Member, Deferred Member, or Beneficiary who is or
may become entitled to benefits hereunder, his or her spouse, children, parents or other relatives, or any of them. 
  
 (b) Notwithstanding the foregoing, payment shall be made in accordance with the provisions of a Qualified Domestic Relations Order.

  
 Notwithstanding anything herein to the
contrary, if the amount payable to an alternate payee under a Qualified Domestic Relations Order is $1,000 or less, the amount shall be paid in one lump sum as soon as practicable following the qualification of the order. If the amount exceeds
$1,000, it may be paid as soon as practicable following the qualification of the order if the Qualified Domestic Relations Order so provides and the alternate payee consents thereto; otherwise it may not be payable before the earliest of
(i) the Member’s Termination of Employment, (ii) the time the amount could be withdrawn under Article Ten, or (iii) the Member’s attainment of age 50. 
  
 6. Effective March 28, 2005, Subsection 18.8(b) is amended to read as follows: 
  
 (b) For purposes of determining whether a Member’s
nonforfeitable account balance exceeds $1,000 under Sections 11.1(b), 11.1(c), 11.2(b), 11.3 and 16.4 of the Plan, the value of a Member’s nonforfeitable account balance shall be determined with regard to that portion of the account
balance that is attributable to rollover distributions (and earnings allocable thereto) within the meaning of Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of the Participant’s
nonforfeitable account balance as so determined is $1,000 or less, the Plan shall immediately distribute the Participant’s entire nonforfeitable account balance. For purposes of determining whether a Member’s nonforfeitable account balance
exceeds $5,000 under Sections 11.2(b) and 11.10 of the Plan, the value of a Member’s nonforfeitable account balance shall be determined without regard to that portion of the account balance that is attributable to rollover
distributions (and earnings allocable thereto), as described in the first sentence of this Section. 
  

 - 3 - 

 This Fourth Amendment of ESI 401(k) Plan is executed this 15 day of April , 2005. 
  

			
	 ITT EDUCATIONAL SERVICES, INC.

		
	 By:
	 	 /s/ Nina Esbin

	 	 	(Signature)
		
	 	 	 Nina Esbin

	 	 	(Printed)
		
	 	 	 Sr. V.P., Human Resources

	 	 	(Title)

  
 ATTEST: 
  

	
	 /s/ Jenny Yonce

	 (Signature)

	
	 Jenny Yonce

	 (Printed)

	
	 Mgr, Benefits & HRIS

	 (Title)

  

 - 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]