Document:

EX-10.15

 Exhibit 10.15 

AMENDED AND RESTATED 

ESCROW AGREEMENT (PUBLIC OFFERING) 

THIS AMENDED AND RESTATED AGREEMENT (this “Agreement”) is made this 2nd day of June 2015 by and among Hailiang Education Group, Inc.
(the “Issuer”) and the Underwriter whose name and address appears on the Information Sheet (as defined herein) attached to this Agreement and Continental Stock Transfer & Trust Company, 17 Battery Place, 8th Floor, New York, New
York 10004 (the “Escrow Agent”). This Agreement restates and supersedes that certain Escrow Agreement, dated March 13, 2015, by and among the Issuer, the Underwriter and the Escrow Agent (the “Original
Agreement”). 
 W I T N E S S E T H: 

WHEREAS, the Issuer, the Underwriter and the Escrow Agent previously entered into the Original Agreement; 

WHEREAS, the Issuer has filed with the Securities and Exchange Commission (the “Commission”) a Registration Statement (the
“Registration Statement”) covering a proposed public offering of its securities as described on the Information Sheet; 
 WHEREAS,
the Underwriter proposes to offer the Securities, as agent for the Issuer, for sale to the public on a “best efforts” only basis for at least the Minimum Securities Amount and Minimum Dollar Amount and at most the Maximum Securities Amount
and Maximum Dollar Amount and at the price per share or other unit all as set forth, on the Information Sheet; 
 WHEREAS the Issuer and the
Underwriter propose to establish an Escrow Account (the “Escrow Account”), to which subscription monies which are received by the Escrow Agent from the Underwriter in connection with such public offering are to be credited, and the
Escrow Agent is willing to establish the Escrow Account and the terms are subject to the conditions hereinafter set forth; 
 WHEREAS, the Escrow
Agent has an agreement with JP Morgan Chase to establish a special Bank Account (the “Bank Account”) into which the subscription monies, which are received by the Escrow Agent from the Underwriter and credited to the Escrow Account,
are to be deposited; 
 WHEREAS, the Issuer, the Underwriter and the Escrow Agent wish to amend and restate the Original Agreement in its entirety;
and 
 NOW, THEREFORE in consideration of the premises and mutual covenants herein contained, the parties hereto hereby agree as follows: 

 

	1	Information Sheet. Each capitalized term not otherwise defined in this Agreement shall have the meaning set forth for such term on the information sheet which is attached to this Agreement and is
incorporated by reference herein and made a pact hereof (the “Information Sheet”). 

	2	Establishment of the Bank Account. 

  

	2.1	The Escrow Agent shall establish a non-interest bank account at the branch of JP Morgan Chase selected by the Escrow Agent, and bearing the designation set forth on the
Information Sheet (heretofore defined as the “Bank Account”). The purpose of the Bank Account is for (a) the deposit of all subscription monies (checks, or wire transfers) which are received by the Underwriter from prospective
purchasers of the Securities and are delivered by the Underwriter to the Escrow Agent, (b) the holding of amounts of subscription monies which are collected through the banking system, and (c) the disbursement of collected funds, all as
described herein. 

  

	2.2	On or before the date of the initial deposit in the Bank Account pursuant to this Agreement, “The Underwriter shall notify the Escrow Agent in writing of the Effective Date of the Registration Statement (the
“Effective Date”), and the Escrow Agent shall not be required to accept any amounts for credit to the Escrow Account or for deposit in the Bank Account prior to its receipt of such notification. 

 

	2.3	The Offering Period, which shall be deemed to commence on the Effective Date, shall consist of the number of calendar days or business days set forth on the Information Sheet. The Offering Period shall be extended by an
Extension Period only if the Escrow Agent shall have received written notice thereof at least five (5) business days prior to the expiration of the Offering Period. The Extension Period, which shall be deemed to commence on the next calendar
day following the expiration of the Offering Period, shall consist of the number of calendar days or business days set forth on the Information Sheet. The last day of the Offering Period, or the last day of the Extension Period (if the Escrow Agent
has received written notice thereof as hereinabove provided), is referred to herein as the “Termination Date”. Except as provided in Section 4.3 hereof, after the Termination Date the Underwriter shall not deposit, and the
Escrow Agent shall not accept, any additional amounts representing payments by prospective purchasers. 

  

	3	Deposits to the Bank Account. 

  

	3.1	The Underwriter shall promptly deliver to the Escrow Agent all monies in the form of checks or wire transfers which it receives from prospective purchasers of the Securities by the end of the next business day following
receipt where internal supervisory review is conducted at the same location at which subscription documents and monies are received.. Upon the Escrow Agent’s receipt of such monies, they shall be credited to the Escrow Account. All checks
delivered to the Escrow Agent shall be made payable to “CST&T Hailiang Education Group Inc. Escrow Account.” Any check payable other than to the Escrow Agent as required hereby shall be returned to the prospective purchaser, or if the
Escrow Agent has insufficient information to do so, then to the Underwriter (together with any Subscription Information, as defined below or other documents delivered therewith) by noon of the next business day following receipt of such check by the
Escrow Agent, and such check shall be deemed not to have been delivered to the Escrow Agent pursuant to the terms of this Agreement. 

  
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	3.2	Promptly after receiving subscription monies as described in Section 3.1, the Escrow Agent shall deposit the same into the Bank Account. Amounts of monies so deposited are hereinafter referred to as “Escrow
Amounts”. The Escrow Agent shall cause the Bank to process all Escrow Amounts for collection through the banking system. Simultaneously with each deposit to the Escrow Account, the Underwriter (or the Issuer, if such deposit is made by the
Issuer) shall inform the Escrow Agent in writing of the name, address, and the tax identification number of the purchaser, the amount of Securities subscribed for by such purchase, and the aggregate dollar amount of such subscription (collectively,
the “Subscription Information”). 

  

	3.3	The Escrow Agent shall not be required to accept for credit to the Escrow Account or for deposit into the Bank Account checks which are not accompanied by the appropriate Subscription Information, which at minimum shall
include the name address, tax identification number and the number of shares/units. Wire transfers representing payments by prospective purchasers shall not be deemed deposited in the Escrow Account until the Escrow Agent has received in writing the
Subscription Information required with respect to such payments. 

  

	3.4	The Escrow Agent shall not be required to accept in the Escrow Account any amounts representing payments by prospective purchasers, whether by check or wire, except during the Escrow Agent’s regular business hours.

  

	3.5	Only those Escrow Amounts, which have been deposited in the Bank Account and which have cleared the banking system and have been collected by the Escrow Agent, are herein referred to as the “Fund”.

  

	3.6	If the proposed offering is terminated before the Termination Date, the Escrow Agent shall refund any portion of the Fund prior to disbursement of the Fund in accordance with Article 4 hereof upon instructions in
writing signed by both the Issuer and the Underwriter. 

  

	4	Disbursement from the Bank Account. 

  

	4.1	Subject to Section 4.3 below, if by the close of regular banking hours on the Termination Date the Escrow Agent determines that the amount in the Fund is less than the Minimum Dollar Amount or the Minimum
Securities Amount, as indicated by the Subscription information submitted to the Escrow Agent, then in either such case, the Escrow Agent shall promptly refund to each prospective purchaser the amount of payment received from such purchaser which is
then held in the Fund or which thereafter clears the banking system, without interest thereon or deduction therefrom, by drawing checks on the Bank Account for the amounts of such payments and transmitting them to the purchasers. In such event, the
Escrow Agent shall promptly notify the Issuer and the Underwriter of its distribution of the Fund. 

  

	4.2	Subject to Section 4.3 below, if at any time up to the close of regular banking hours on the Termination Date, the Escrow Agent determines that the amount in the Fund is at least equal to the Minimum Dollar Amount
and represents the sale of not less than the Minimum Securities Amount, the Escrow Agent shall promptly notify the Issuer and the Underwriter of such fact in writing. The Escrow Agent shall promptly disburse the Fund, by drawing checks on the Bank
Account in accordance with instructions in writing signed by both the Issuer and the Underwriter as to the disbursement of the Fund, promptly after it receives such instructions. 

  
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	4.3	(This provision applies only if a Collection Period has been provided for by the appropriate indication on the Information Sheet.) If the Escrow Agent or the Underwriter has on hand at the close of business on the
Termination Date any uncollected amounts which when added to the Fund would raise the amount in the Fund to the Minimum Dollar Amount, and result in the Fund represent the sale of the Minimum Securities Amount, the Collection Period (consisting of
the number of business days set forth on the Information Sheet) shall be utilized to allow such uncollected amounts to clear the banking system. During the Collection Period, the Underwriter (and the Issuer) shall not deposit and the Escrow Agent
shall not accept, any additional amounts; provided, however, that such amounts as were received by the Underwriter (or the Issuer) by the close of business on the Termination Date may be deposited with the Escrow Agent by noon of the next business
day following the Termination Date. If, at the close of business on the last day of the Collection Period, an amount sufficient to raise the amount in the Fund to the Minimum Dollar Amount and which would result in the Fund representing the sale of
the Minimum Securities Amount shall not have cleared the banking system, the Escrow Agent shall promptly notify the Issuer and the Underwriter in writing of such fact and shall promptly return all amounts then in the Fund, and any amounts which
thereafter clear the banking system to the prospective purchasers as provided in Section 4.2 hereof. 

  

	4.4	Upon disbursement of the Fund pursuant to the terms of this Article 4, the Escrow Agent shall be relieved of all further obligations and released from all liability under this Agreement. It is expressly agreed and
understood that in no event shall the aggregate amount of payments made by the Escrow Agent exceed the amount of the Fund. 

  

	5	Rights, Duties and Responsibilities of Escrow Agent. It is understood and agreed that the duties of the Escrow Agent are purely ministerial in nature, and that: 

 

	5.1	The Escrow Agent shall notify the Underwriter, on a daily basis, of the Escrow Amounts which have been deposited in the Bank Account and of the amounts, constituting the Fund, which have cleared the banking system and
have been collected by the Escrow Agent. 

  

	5.2	The Escrow Agent shall not be responsible for or be required to enforce any of the terms or conditions of the underwriting agreement or any other agreement between the Underwriter and the Issuer nor shall the Escrow
Agent be responsible for the performance by the Underwriter or the Issuer of their respective obligations under this Agreement. 

  

	5.3	The Escrow Agent shall not be required to accept from the Underwriter (or the Issuer) any Subscription Information pertaining to prospective purchasers unless such Subscription Information is accompanied by checks, or
wire transfers meeting the requirements of Section 3.1, nor shall the Escrow Agent be required to keep records of any information with respect to payments deposited by the Underwriter (or the Issuer) except as to the amount of such payments;
however, the Escrow Agent shall notify the Underwriter within a reasonable time of any discrepancy between the amount set forth in any Subscription Information and the amount delivered to the Escrow Agent therewith. Such amount need not be accepted
for deposit in the Escrow Account until such discrepancy has been resolved. 

  
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	5.4	The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. The Escrow Agent, within a reasonable time, shall return to the Underwriter any check received
which is dishonored, together with the Subscription Information, if any, which accompanied such check. 

  

	5.5	The Escrow Agent shall be entitled to rely upon the accuracy, act in reliance upon the contents, and assume the genuineness of any notice, instruction, certificate, signature, instrument or other document which
is given to the Escrow Agent pursuant to this Agreement without the necessity of the Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall not be obligated to make any inquiry as to the authority, capacity, existence or
identity or any person purporting to give any such notice or instructions or to execute any such certificate, instrument or other document. 

  

	5.6	If the Escrow Agent is uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Bank Account, the Escrow Amounts or the Fund which, in its sole determination, are in conflict
either with other, instructions received by it or with any provision of this Agreement, it shall be entitled to hold the Escrow Amounts, the Fund, or a portion thereof, in the Bank Account pending the resolution of such uncertainty to the Escrow
Agent’s sole satisfaction, by final judgment of a court or courts of competent jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit the Fund (and any other Escrow Amounts that thereafter become part of the Fund) with
the Clerk of a court of competent jurisdiction in a proceeding to which all parties in interest are joined. Upon the deposit by the Escrow Agent of the Fund with the Clerk of any court, the Escrow Agent shall be relieved of all further obligations
and released from all liability hereunder. 

  

	5.7	The Escrow Agent shall not be liable for any action taken or omitted hereunder, or for the misconduct of any employee, agent or attorney appointed by it, except in the case of willful misconduct or gross negligence. The
Escrow Agent shall be entitled to consult with counsel of its own choosing and shall not be Liable for any action taken, suffered or omitted by it in accordance with the advice of such counsel. 

 

	5.8	The Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Escrow Amounts, the Fund or any part thereof or to file any statement under the Uniform
Commercial Code with respect to the Fund or any part thereof. 

  

	6	Amendment; Resignation. This Agreement may be altered or amended only with the written consent of the Issuer, the Underwriter and the Escrow Agent. 

  
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	6.1	The Escrow Agent may resign for any reason upon thirty (30) business days’ written notice to the Issuer and the Underwriter. Should the Escrow Agent resign as herein provided, it shall not be required
to accept any deposit, make any disbursement or otherwise dispose of the Escrow Amounts or the Fund, but its only duty shall be to hold the Escrow Amounts until they clear the banking system and the Fund for a period of not more than five
(5) business days following the effective date of such resignation, at which time (a) if a successor escrow agent shall have been appointed and written notice thereof (including the name and address of such successor escrow agent) shall
have been given to the resigning Escrow Agent by the Issuer, the Underwriter and such successor escrow agent, then the resigning Escrow Agent shall pay over to the successor escrow agent the Fund, less any portion thereof previously paid out in
accordance with this Agreement; or (b) if the resigning Escrow Agent shall not have received written notice signed by the Issuer, the Underwriter and a successor escrow agent, then the resigning Escrow Agent shall promptly refund the amount in
the Fund to each prospective purchaser without interest thereon or deduction therefrom, and the resigning Escrow Agent shall promptly notify the Issuer and the Underwriter in writing of its liquidation and distribution of the Fund; whereupon, in
either case, the Escrow Agent shall be relieved of all further obligations and released from all liability under this Agreement. Without limiting the provisions of Section 8 hereof, the resigning Escrow Agent shall be entitled to be reimbursed
by the Issuer and the Underwriter for any actual expenses incurred in connection with its resignation, transfer of the Fund to a successor escrow agent or distribution of the Fund pursuant to this Section 6. 

 

	7	Representations and Warranties. The issuer and the Underwriter hereby jointly and severally represent and warrant to the Escrow Agent that: 

 

	7.1	No party other than the parties hereto and the prospective purchasers have, or shall have, any lien, claim or security interest in the Escrow Amounts or the Fund or any part thereof. 

 

	7.2	No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or Generally) the Escrow Amounts or the Fund or any part
thereof. 

  

	7.3	The Subscription information submitted with each deposit shall, at the time of submission and at the time of disbursement of the Fund, be deemed a representation and warranty that such deposit represents a bona fide
payment by the purchaser described therein for the amount of securities in such described as Subscription Information. 

  

	7.4	All of the information contained in the Information Sheet is, as of the date hereof, and will be, at the time of any disbursement of the Fund, true and correct. 

 

	7.5	Reasonable controls have been established and required due diligence performed to comply with “Know Your Customer” regulations, USA Patriot Act, Office of the Foreign Asset Control (OFAC) regulations and the
Bank Secrecy Act. 

  
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	8	Fees and Expenses. The Escrow Agent shall be entitled to the Escrow Agent Fees set forth on the Information Sheet, payable as and when stated therein. In addition, the Issuer and the Underwriter jointly
and severally agree to reimburse the Escrow Agent for any reasonable expenses incurred in connection with this Agreement, including, but not limited to, reasonable counsel fees. Upon receipt of the Minimum Dollar Amount, the Escrow Agent shall have
a lien upon the Fund to the extent of its fees for services as Escrow Agent. 

  

	9	Indemnification and Contribution. 

  

	9.1	The Issuer and the Underwriter (collectively referred to as the “Indemnitors”) jointly and severally agree to indemnify the Escrow Agent and its officers, directors, employees, agents and shareholders
(collectively referred to as the “ Indemnitees”) against, and hold them harmless of and from, any and all loss, liability, cost, damage and expense, including without limitation, reasonable counsel fees, which the Indemnitees may suffer or
incur by reason of any action, claim or proceeding brought against the Indemnitees arising out of or relating in any way to this Agreement or any transaction to which this Agreement relates, unless such action, claim or proceeding is the result of
the willful misconduct or gross negligence of the Indemnitees. 

  

	9.2	If the indemnification provided for in Section 9.1 is applicable, but for any reason is held to be unavailable, the Indemnitors shall contribute such amounts as are just and equitable to pay, or to reimburse the
Indemnitees for, the aggregate of any and all losses, liabilities, costs, damages and expenses, including counsel fees, actually incurred by the Indemnitees as a result of or in connection with, and any amount paid in settlement of, any action,
claim or proceeding arising out of or relating in any way to any actions or omissions of the Indemnitors. 

  

	9.3	The provisions of this Article 9 shall survive any termination of this Agreement, whether by disbursement of the Fund, resignation of the Escrow Agent or otherwise. 

 

	10	Governing Law and Assignment. This Agreement shall be construed in accordance with and governed by the laws of the State of New York and shall be binding upon the parties hereto and their respective
successors and assigns; provided, however, that any assignment or transfer by any party of its rights under this Agreement or with respect to the Escrow Amounts or the Fund shall be void as against the Escrow Agent unless (a) written notice
thereof shall be given to the Escrow Agent; and (b) the Escrow Agent shall have consented in writing to such assignment or transfer. 

  

	11	Notices. All notices required to be given in connection with this Agreement shall be sent by registered or certified mail, return receipt requested, or by hand delivery with receipt acknowledged, or
by the Express Mail service offered by the United States Post Office, and addressed, if to the Issuer or the Underwriter, at their respective addresses set forth on the Information Sheet, and if to the Escrow Agent, at its address set forth above,
to the attention of the Trust Department. 

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

  

	13	Execution in Several Counterparts. This Agreement may be executed in several counterparts or by separate instruments, and all of such counterparts and instruments shall constitute one agreement,
binding on all of the parties hereto. 

  

	14	Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings (written
or oral) of the parties in connection therewith. 

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

 

									
	THE ISSUER				CONTINENTAL STOCK TRANSFER & TRUST COMPANY
			
	 HAILIANG EDUCATION GROUP INC.
  
				
	By:		 /s/ Ming Wang
				By:		 /s/ Cynthia Jordan

	Name:		Ming Wang				Name:		Cynthia Jordan
	Title:		Chief Executive Officer				Title:		Vice President
				
	THE UNDERWRITER						
				
	NETWORK 1 FINANCIAL SECURITIES, INC.						
					
	By:		 /s/ Damon Testaverde
						
	Name:		Damon Testaverde						
	Titie:		Managing Director						

 EXHIBIT A 

ESCROW AGREEMENT INFORMATION SHEET 
  

	1.	The Issuer 

 Name: Hailiang Education Group Inc. 

Address: 386, Jiefangbei Road, Diankou Town, Zhuji, Zhejiang Province, PRC 311814 

 

	2.	The Underwriter 

 Name: Network 1 Financial Securities, Inc. 

Address: The Gallaria, 2 Bridge Avenue, Suite 241, Red Bank, New Jersey, United States 

 

	3.	The Securities 

 Description of the Securities to be offered: Up to 2,858,000 American
depositary shares representing 45,728,000 ordinary shares of the Issuer 
  

	4.	Minimum Amounts and Conditions Required for Disbursement of the Escrow Account 

Aggregate dollar amount which must be collected before the Escrow Account may be disbursed to the Issuer: US$10,003,000. 

 

	5.	Plan of Distribution of the Securities 

 Initial Offering Period: Through September 4,
2015 
 Extension Period, if any: At Discretion of Company 
  

	6.	Title of Escrow Account 

 “CST&T Hailiang Education Group Inc. Escrow
Account” 
  

	7.	Escrow Agent Fees and Charges 

 $2,750: $1250.00 payable at signing of the Escrow
Agreement, plus $1,500.00 prior to the Closing. (Note: $250.00 online “view only” access to the bank account is included). A fee of $500 will be payable for document review services related to each amendment to the Escrow Agreement. In
addition, the Escrow Agent shall be paid a fee of $500.00 for each additional closing. Should the Escrow Agent continue for more than one year, the Escrow Agent shall receive a fee of $600.00 per month, or any portion thereof, payable in advance or
the first business day of the month. 
 Distribution charges: 

$10.00 per check 
 $50.00 per wire

 $100.00 per check returned (NSF) check 

$100.00 lost check replacement feenauh_ex101.htm

Exhibit 10.1

EFFECTIVE DATE

June 1, 2015 to May 31, 2016

 

NAMED EXECUTIVE OFFICER COMPENSATION PLAN

 

This compensation plan is made up of three components.  For purposes of this plan, the title “Named Executive Officer” refers to those individuals who have been identified as such by the Chief Executive Officer and approved by the Board of Directors.  In addition, this plan and its components are based on the performance of National American University Holdings, Inc. (“NAUH”).

Component 1:  BASE PAY COMPUTATION

The Board of Directors, in consultation with the chief executive officer/CEO, will determine the specific base salary of the Named Executive Officer positions.  Additional factors which may be considered in determining the actual base salary include, but are not limited to, experience level, educational level, assessment of satisfactory performance, years of service, and performance expectations for the upcoming year.

Component 2:  QUARTERLY ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES

The second component of the compensation plan will be based on achievement of specific quarterly organizational objectives (the “Additional Quarterly Compensation”).  The Additional Quarterly Compensation will be based on NAUH quarterly pre-tax profit margin and objectives related to institutional effectiveness.  The amount of the Additional Quarterly Compensation will be calculated quarterly by taking the appropriate percentage multiplied by the Named Executive Officer’s current annual base salary.  The Named Executive Officer will receive a percentage of his/her annual base salary each quarter based on achieving the objectives listed below.

 

	Quarterly Objective	 	Percentage of Annual Base Salary 	 	Description
	 	 	 	 	 
	1	 	 
10% per quarter

	 	 
For achieving the approved budgeted NAUH pre-tax profit margin for the quarter.

	 	 	 	 	 
	 	 
 

	 
5% per quarter

	 	 
For achieving less than 100% but greater than 90% of the approved budgeted NAUH pre-tax profit margin.

	 	 	 	 	 
	2	 	 
10% per quarter

	 	 
For achieving a composite survey result of 88 points or better for overall performance for the quarter.

	 	 	 	 	 
	 	 	 
5% per quarter

	 	 
For achieving a composite survey result of greater than 75 points and less than 88 points for overall  performance for the quarter.

 

Objective 1: successfully achieving the approved NAUH budgeted pre-tax profit margin per quarter as determined and approved by the Board prior to June 1st of each year.

 

Objective 2: successfully achieving satisfactory performance for the quarter as measured by the composite survey results.

 

A. The Additional Quarterly Compensation is based on achieving the organizational objectives for the prior quarter.  Additional Quarterly Compensation, if any, will be determined quarterly and paid semi-monthly on the Company’s regular payroll schedule in five (5) equal payroll installments after the calculations can be finalized.

 

In order to be eligible to earn Additional Quarterly Compensation for a given quarter, the Named Executive Officer must be employed by NAUH or its affiliates during the entire quarter in which the objectives are measured and when the amount of the Additional Quarterly Compensation is determined.  No Additional Quarterly Compensation will be paid after employment is terminated.  The Board of Directors will be solely responsible for determining whether the objectives for the Additional Quarterly Compensation are satisfied and the amount of any Additional Quarterly Compensation.

Component 3:  ANNUAL ACHIEVEMENT AWARD

The final component of the compensation plan will be based on NAUH’s Earnings Before Interest and Taxes (“EBIT”).  To the extent that NAUH’s actual EBIT for the fiscal year exceeds NAUH’s budgeted EBIT for the fiscal year, the Named Executive Officer will receive three percent (3%) of the excess up to a maximum of 75% of his/her annual base salary.

Calculations will be based on the annual budget for NAUH, as approved by the Board prior to June 1st, and the final audited financial statements prepared for the fiscal year ending May 31st.  The Annual Achievement Award will be paid in six (6) equal payroll installments during normal payroll periods beginning September 1st of each year.

  

1

  

 

In order to be eligible to earn the Annual Achievement Award for a given year, the Named Executive Officer must be employed by NAUH or its affiliates during the entire year in which the objectives are measured and when the amount of the Annual Achievement Award is determined.  No Annual Achievement Award will be paid after employment is terminated.  The Board of Directors will be solely responsible for determining whether the objectives for the Annual Achievement Award are satisfied and the amount of any Annual Achievement Award.

GENERAL PROVISIONS

This compensation plan does not create a contract of employment, express or implied, or alter the employment at-will relationship between you and NAUH or its affiliates, including the university.  This document is not intended by reason of its distribution to confer any rights or privileges upon you or to entitle you to be or remain employed by NAUH or its affiliates, including the university.  The contents of this plan are presented as a guide and as a matter of information only.  While NAUH believes wholeheartedly in the plan, it is not a condition of employment and may not be relied upon by you as a contract or other right.  The provisions of this compensation plan are subject to change at anytime by the NAUH or its affiliates without any notice and without anyone’s agreement.  Further, business conditions, federal and state law, and/or organizational needs are constantly in flux and may require that portions of this document be revised or rewritten.

The Named Executive Officer is subject to the provisions of the National American University Employee Handbook (NAUM 4-0).

Notwithstanding any provision in this compensation plan to the contrary, any portion of the payments and benefits provided under this compensation plan shall be subject to any clawback policy adopted by or applicable to NAUH pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, any Securities and Exchange Commission rule, any applicable listing standard promulgated by any national securities exchange or national securities association, or any other legal requirement.

* * * * *

 

I acknowledge receipt of a copy of the Named Executive Officer Compensation Plan and further acknowledge that my employment is not governed by any written or oral contract, including this document, and that my employment is considered an at-will arrangement.

 

	 	 	 	 	 
	Named Executive Officer 	 	Date	 	 
	 	 	 	 	 
	 	 	 	 	 
	Dr. Ronald L. Shape 	 	Date	 	 
	CEO	 	 	 	 

 

 

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