Document:

Exhibit

EXHIBIT 10.2
 
SUMMARY OF NON-EMPLOYEE DIRECTOR COMPENSATION

		
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	Each year, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of 2U, Inc. (the “Company”) approves the compensation arrangements for non-employee members of the Board to take effect as of April 1 of such year. The compensation arrangements described below may be modified, amended or terminated by the Board at any time in its discretion.

		
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	Each non-employee director will receive an annual cash retainer of $25,000, to be paid in equal quarterly installments of $6,250 on April 1 (or as soon as reasonably practicable thereafter) and on the first day of each calendar quarter thereafter.  At the timely election of a non-employee director, such director may receive, in lieu of such annual retainer, a restricted stock unit award (the “Director Retainer RSU Grant”) covering a number of shares of the Company’s common stock (the “Common Stock”) determined by dividing $25,000 by the Fair Market Value (as defined in the Company’s 2014 Equity Incentive Plan (as amended, the “2014 Plan”) of the Company’s Common Stock on the date of grant.  Director Retainer RSU Grants vest in full on the first anniversary of the vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service (as defined in 2014 Plan) through the vesting date.

		
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	Each non-employee director who serves as Chair of the Board or Chair of the Audit Committee, Compensation Committee or Nominating and Corporate Governance Committee will receive an additional annual cash retainer of $5,000, to be paid in equal quarterly installments of $1,250 on April 1 (or as soon as reasonably practicable thereafter) and on the first day of each calendar quarter thereafter.  At the timely election of any Chair, such Chair may receive, in lieu of such annual retainer, a restricted stock unit award (the “Chair Retainer RSU Grant”) covering a number of shares of Common Stock determined by dividing $5,000 by the Fair Market Value of the Common Stock on the date of grant.  Chair Retainer RSU Grants vest in full on the first anniversary of the vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service through the vesting date.

		
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	On or about April 1 of each year, each non-employee director will receive an annual restricted stock unit award (each, a “Director Annual RSU Grant”) covering a number of shares of Common Stock determined by dividing $100,000 by the Fair Market Value of the Common Stock on the date of grant.  Director Annual RSU Grants vest as to one-third of the underlying shares on each of the first, second and third anniversaries of the applicable vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service through each vesting date.

		
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	On or about April 1 of each year, each non-employee director will also receive a stock option award (each, a “Director Annual Option Grant”) with a grant date fair value of $100,000 and an exercise price per share equal to the Fair Market Value of the Common Stock on the date of grant.  Director Annual Option Grants vest and become exercisable as to one-third of the underlying shares on each of the first, second and third anniversaries of the applicable vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service through each vesting date.

		
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	On or about April 1 of each year, each non-employee director who is then serving as Chair of the Board or Chair of the Audit Committee will also receive a restricted stock unit award (each, an “Board/Audit Chair Annual RSU Grant”) covering a number of shares of Common Stock determined by dividing $15,000 by the Fair Market Value of the Common Stock on the date of grant.  Board/Audit Chair Annual RSU Grants vest in full on the first anniversary of the vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service through the vesting date.

		
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	On or about April 1 of each year, each non-employee director who is then serving as Chair of the Compensation Committee or Chair of the Nominating and Corporate Governance Committee or member of the Audit Committee (other than the Chair) will also receive a restricted stock unit award (each, an “Other Chair/Audit Member Annual RSU Grant”) covering a number of shares of Common Stock determined by dividing $5,000 by the Fair Market Value of the Common Stock on the date of grant.  Other Chair/Audit Member Annual RSU Grants vest in full on the first anniversary of the vesting commencement date (typically April 1 of the applicable year), assuming Continuous Service through the vesting date.

		
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	In connection with his or her initial appointment to the Board, each non-employee director will receive a restricted stock unit award (an “Initial RSU Grant”) and a stock option award (an “Initial Option Grant”) on the first day of the first quarter immediately following the effective date of the director’s appointment. Initial RSU Grants cover a number 

of shares of Common Stock determined by dividing $25,000 by the Fair Market Value of the Common Stock on the date of grant and vest as to one-third of the underlying shares on each of the first, second and third anniversaries of the applicable vesting commencement date (which is typically the grant date), assuming Continuous Service through each vesting date. Initial Option Grants (i) have a grant date fair value of $25,000, (ii) have an exercise price per share equal to the Fair Market Value of the Common Stock on the date of grant and (iii) vest and become exercisable as to one-third of the underlying shares on each of the first, second and third anniversaries of the vesting commencement date (typically the date of grant), assuming Continuous Service through each vesting date.
		
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	Each Director Retainer RSU Grant, Chair Retainer RSU Grant, Director Annual RSU Grant, Director Annual Option Grant, Board/Audit Chair Annual RSU Grant, Other Chair Annual RSU Grant, Initial RSU Grant and Initial Option Grant is granted under and subject to the terms and conditions of the 2014 Plan and an award agreement in substantially the forms previously approved by the Board or the Compensation Committee to evidence awards issued under the 2014 Plan. Awards that would otherwise cover partial shares are typically rounded down to the nearest whole share.

		
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	The cash retainers, equity awards and vesting schedules described in this summary may be prorated to reflect partial periods of a non-employee director’s service.

****Exhibit

Exhibit 10.1 

Non-Employee Director 
Restricted Stock Unit Award Agreement

[DATE]

THIS AGREEMENT evidences the grant by UNITED PARCEL SERVICE, INC., a Delaware corporation (the “Company”), in accordance with the United Parcel Service, Inc. 2018 Omnibus Incentive Compensation Plan (the “Plan”), to [NAME], a non-employee director of the Company, of [UNITS] Restricted Stock Units (“RSUs”).  Each RSU has a value that equals the value of one share of the Company’s class A common stock (“Share”). This Award is granted effective as of the [YEAR] Annual Grant Date, [DATE], and is subject to all of the terms and conditions set forth below.

	
			
	UNITED PARCEL SERVICE, INC.
	 
	ATTEST:

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	David P. Abney
	 
	Norman M. Brothers, Jr.

	Chairman and Chief Executive Officer
	 
	Secretary

	 
	 
	 

UPS NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION PROGRAM
Terms and Conditions
		
	1.
	Establishment, Objectives and Duration.

		
	1.1
	Establishment of the Program and Effective Date.  The Board of Directors of United Parcel Service, Inc. (“Board”) hereby establishes this Non-employee Director Equity Compensation Program (“Program”) to provide for automatic Awards to Directors in the form of RSUs pursuant to Article 8 of the United Parcel Service, Inc. 2018 Omnibus Incentive Compensation Plan, as amended from time to time, and any successor plan (“ICP”).  This document sets forth the terms under which Awards shall be made and administered for Directors.  Capitalized terms shall have the meanings set forth in the ICP or in Section 8 herein.  

The Program shall be effective as of May 9, 2019 (“Program Effective Date”).

		
	1.2
	Duration of the Program.  The Program shall commence on the Program Effective Date and shall remain in effect, subject to the right of the Board to amend or terminate the Program at any time pursuant to Section 7.2 hereof.

		
	2.
	Administration.

		
	2.1
	Authority of the Board.  The Program will be administered by the Board based on recommendations from the Compensation Committee, and the Board’s power and authority to administer the Program will be the same as the Committee’s power and authority to administer the ICP with respect to the granting and interpretation of awards.  

		
	2.2
	Decisions Binding.  All decisions of the Board shall be final, conclusive and binding on all persons, including the Company, its stockholders, any Directors, and their estates and beneficiaries.  

		
	3.
	Eligibility for Awards.  Only a Director shall be eligible to receive an Award.  

		
	4.
	Automatic Awards.

		
	4.1
	New Directors.  Each newly-elected Director automatically shall be granted (without any further action on the part of the Board or the Committee) an Award as of his or her New Director Grant Date of that number of RSUs that is equal to $[AMOUNT] divided by the NYSE closing price per share of the Company’s class B common stock on the New Director Grant Date, rounded down to the next whole number, and prorated for the number of calendar quarters remaining until the Annual Grant Date.

		
	4.2
	Annual Awards.  Each Director automatically shall be granted (without any further action on the part of the Board or the Committee) an Award as of the Annual Grant Date of that number of RSUs that is equal to $[AMOUNT] divided by the NYSE closing price per share of the Company’s class B common stock on the Annual Grant Date, rounded down to the next whole number. 

		
	4.3
	Account Credits and DEUs.  Each Director’s Account shall be credited with the RSUs granted to such Director pursuant this Section 4.  In addition, each Account shall be credited with DEUs each time dividends are paid on a Share as follows:

(A)    in the case of Share dividends, by multiplying the per Share dividend by the number of RSUs and DEUs credited to the Account prior to the adjustment for the dividend; and
(B)    in the case of a cash dividend or non-Share property dividend, by (i) multiplying the cash dividend paid per Share or the fair market value of the property transferred per Share by the number of RSUs and DEUs credited to the Account prior to adjustment for the dividend and (ii) dividing the product by the NYSE closing price per share of the Company’s class B common stock on the last full trading day before the dividend is paid.

		
	4.4
	Award Agreements.  A Director shall receive an Award agreement that sets forth the grant date and the number of RSUs credited to his or her Account on such grant date. 

		
	5.
	Vesting.  RSUs and DEUs are fully vested on the date they are credited to the Director’s Account.

		
	6.
	Payment of Awards.  A number of Shares equal to the number of RSUs and DEUs credited to a                             Director’s Account shall be transferred to the Director (or, upon the Director’s death, to his or her estate) on the date of the Director’s Separation from Service.  

		
	7.
	Miscellaneous.

7.1    Awards Subject to the Terms of the ICP.  Awards are subject to the terms of the ICP. 
		
	7.2
	Amendment and Termination.  The Board may amend, alter, suspend or terminate the Program at any time based on the recommendation of the Committee and subject to the terms of the ICP.  The UPS Salary Committee may make administrative amendments to the Program as it deems necessary to effectuate the Program from time to time; provided, however, that any such amendment shall be in writing, signed by all members of the UPS Salary Committee and a copy of any such amendment shall be reviewed with the Committee and kept with the records of the Program.

		
	8.
	Definitions.  Except as set forth below, capitalized terms shall have the meanings set forth in the ICP.

		
	8.1
	Account.  Means a bookkeeping account maintained to keep track of the Award and any adjustments made to such Award.

		
	8.2
	Annual Grant Date.  Means the day of the Company’s Annual Meeting each calendar year.    

8.3    Award.  Means the awards described in Section 4.
8.4    Board.  Means the Board of Directors of United Parcel Service, Inc.
8.5    Code.  Means the Internal Revenue Code of 1986, as amended from time to time.
8.6    Committee.  Means the Compensation Committee of the Board.
8.7    Director.  Means an individual who is a non-management member of the Board.
		
	8.8
	DEUs.  Means dividend equivalent units for dividends paid on a Share.  Each DEU shall have a value equal to one Share.  

		
	8.9
	ICP.  Means the United Parcel Service, Inc. 2018 Omnibus Incentive Compensation Plan, as amended from time to time or any successor plan.    

		
	8.10
	Program.  Means the UPS Non-employee Director Equity Compensation Program, as amended from time to time.

8.11    Program Effective Date.  Means the date described in Section 1.1.
		
	8.12
	New Director Grant Date.  Means the day on which a new Director’s appointment to the Board is first effective.  

8.13    NYSE.  Means the New York Stock Exchange.
		
	8.14
	Separation from Service.  Means a “separation from service” within the meaning of Code Section 409A.

8.15    Share.  Means a share of Class A common stock of the Company.   
		
	8.16
	RSU.  Means a Restricted Stock Unit, which is a bookkeeping unit, the value of which           corresponds to one Share.

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