Document:

AMBAC FINANCIAL GROUP, INC.

RESTRICTED STOCK UNIT AGREEMENT

 

________________ (the “Participant”)
has been granted a Full Value Award under the Ambac Financial Group, Inc. Incentive Compensation Plan (the “Plan”)
in the form of restricted stock units. The Award shall be effective as of _________, 20[ ] (the “Grant Date”). The
Award shall be subject to the following terms and conditions (sometimes referred to as this “Agreement”).

 

1.             Defined Terms. Capitalized terms used in this Agreement which are not otherwise defined herein shall have the meaning
specified in the Plan.

 

2.             Grant of Restricted Stock Units. Subject to the terms of this Agreement and the Plan, effective as of the Grant Date
the Participant is hereby granted _______ restricted stock units (the "Restricted Stock Units"). This Award contains
the right to dividend equivalent units (“Dividend Equivalent Units”) as described in paragraph 3. Each Restricted Stock
Unit shall become vested as described in paragraph 4 and each vested Restricted Stock Unit shall be settled in accordance with
paragraph 5.

 

3.             Dividend
Equivalent Units. The Participant shall be entitled to Dividend Equivalent Units in accordance with the following:

 

		(a)	If a dividend with respect to shares of Common Stock is payable in cash, then, as of the applicable dividend payment date,
the Participant shall be credited with that number of Dividend Equivalent Units equal to (i) the cash dividend payable with respect
to a share of Common Stock, multiplied by (ii) the number of Restricted Stock Units outstanding (i.e., the number of Restricted
Stock Units granted hereunder less the number of such Restricted Stock Units that have settled in accordance with Section 5 below)
on the applicable dividend record date, divided by (iii) the Fair Market Value of a share of Common Stock on the dividend payment
date.

 

		(b)	If a dividend with respect to shares of Common Stock is payable in shares of Common Stock, then, as of the dividend payment
date, the Participant shall be credited with that number of Dividend Equivalent Units equal to (i) the number of shares Common
Stock distributed in the dividend with respect to a share of Common Stock, multiplied by (ii) the number of Restricted Stock Units
outstanding on the applicable dividend record date.

 

Dividend Equivalent Units shall be subject to the same vesting
provisions as the Restricted Stock Units to which they relate and shall be settled in accordance with paragraph 5. No Dividend
Equivalent Units shall be credited with respect to previously credited Dividend Equivalent Units.

 

4.            Vesting and Forfeiture of Restricted Stock Units and Dividend Equivalent Units. All Restricted Stock Units and Dividend
Equivalent Units shall be unvested unless and until they become vested and nonforfeitable in accordance with this paragraph 4.
Subject to the terms and conditions of this Agreement and the Plan, one-half (1/2) of the Restricted Stock Units and associated
Dividend Equivalent Units awarded hereunder shall vest on the Grant Date and one-half (1/2) of the Restricted Stock Units and associated
Dividend Equivalent Units awarded hereunder shall vest on the first anniversary of the Grant Date. The Grant Date and the first
anniversary of the Grant Date are sometimes referred to herein as a “Vesting Date”. Notwithstanding the foregoing,
if the Participant's termination of employment with Ambac Financial Group, Inc. (“the Company”) and its Subsidiaries
(the “Termination Date”) occurs for any reason prior to the applicable Vesting Date, all Restricted Stock Units and
associated Dividend Equivalent Units which are not vested upon the Participant’s Termination Date shall immediately expire
and shall be forfeited and the Participant shall have no further rights with respect to such Restricted Stock Units or associated
Dividend Equivalent Units. Restricted Stock Units and associated Dividend Equivalent Units which are vested on a Participant’s
Termination Date shall immediately be forfeited and the Participant shall have no further rights with respect thereto in the event
the Termination Date occurs as a result of the termination for “cause” of the Participant, and the Participant shall
have no further rights with respect to thereto. As used herein, “cause” means (i) any act or omission by the Participant
resulting in, or intending to result in, personal gain at the expense of the Company or any of its affiliates; (ii) the improper
disclosure by the Participant of proprietary or confidential information of the Company or any of its affiliates; or (iii) misconduct
by the Participant, including, but not limited to, fraud, intentional violation of, or negligent disregard for, the rules and procedures
of the Company or its affiliates (including the code of business conduct), theft, violent acts or threats of violence, or possession
of controlled substances on the property of the Company or any of its affiliates; provided, that the meaning of “cause”
shall be (x) expanded to include any additional grounds for cause-based termination specified in any contract, policy or plan applicable
to the Participant or (y) superseded to the extent expressly provided in such contract, policy or plan. The determination of whether
“cause” exists shall be made by the Company in its sole and absolute discretion.

 

    	 

    	 

    

 

 

5.             Settlement.
Subject to the terms and conditions of this Agreement, Restricted Stock Units and associated Dividend Equivalent Units that have
become vested in accordance with paragraph 4 shall be settled as of the earlier of (a) the Participant’s Termination Date
or (b) the second anniversary of the applicable Vesting Date.  The date on which settlement occurs is referred to as the
“Settlement Date”. Settlement of the vested Restricted Stock Units and associated Dividend Equivalent Units on a Settlement
Date shall be made in the form of shares of Common Stock with one share of Common Stock being issued in settlement of each Restricted
Stock Unit and associated Dividend Equivalent Unit (any fractional share being rounded up to the next whole unit). Upon the settlement
of any vested Restricted Stock Units and Dividend Equivalent Units, such Restricted Stock Units and Dividend Equivalent Units
shall be cancelled.

 

6.            
Withholding. All Awards and payments under this Agreement are subject to withholding of all applicable taxes. At
the election of the Participant, and with the consent of the Committee, such withholding obligations may be satisfied through amounts
that the Participant is otherwise to receive upon settlement of this Award or by a cash payment from the Participant to the Company
or otherwise as agreed between the Participant and the Company. Under no circumstances will the Company permit the Participant
to withhold shares of Common Stock in excess of the maximum tax withholding requirements. Notwithstanding the foregoing, if a tax
withholding obligation with respect to tax imposed under the Federal Insurance Contributions Act (FICA) under sections 3101, 3121(a)
and 3121(v)(2) of the Code (the “FICA Obligations”) is incurred with respect to any of the Restricted Stock Units and
associated Dividend Equivalent Units prior to the Settlement Date with respect to such Restricted Stock Units and associated Dividend
Equivalent Units (each date on which the FICA Obligation arises being referred to herein as a “Tax Vesting Date”) then,
on the applicable Tax Vesting Date, that number of Restricted Stock Units and associated Dividend Equivalent Units for which the
Settlement Date has not occurred as of the Tax Vesting Date shall be settled (and the Tax Vesting Date shall be treated as the
“Vesting Date” with respect to such Restricted Stock Units and associated Dividend Equivalent Units) with respect to
that number of shares of Common Stock subject thereto having a having a Fair Market Value (determined as of the Tax Vesting Date)
equal to the sum of the following:

 

 

    	 

    	 

    

 

		(a)	the FICA Obligations;

 

		(b)	the income tax imposed by section 3401 of the Code (or the corresponding withholding provisions of applicable state, local
or foreign tax laws) as a result of the FICA Obligations; and

 

		(c)	the amount necessary to pay the additional income tax on wages attributable to the pyramiding of the payments under subparagraphs
6(a) and (b).

 

In no event shall the value of the Restricted
Stock Units and associated Dividend Equivalent Units that are settled pursuant to subparagraphs 6(a), (b) and (c) exceed the amount
that could be distributed pursuant to Treas. Reg. § 1.409-3(j)(xi).

 

7.             Transferability. This Award is not transferable except as designated by the Participant by will or by the laws of
descent and distribution.

 

8.             Heirs and Successors. If any benefits deliverable to the Participant under this Agreement have not been delivered
at the time of the Participant’s death, such rights shall be delivered to the Participant’s estate.

 

9.             Administration.
The authority to administer and interpret this Agreement shall be vested in the Committee, and the Committee shall have all the
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of the Agreement by the Committee
and any decision made by it with respect to the Agreement is final and binding on all persons.

 

10.           Adjustment
of Award. The number of Restricted Stock Units and Dividend Equivalent Units awarded pursuant to this Agreement may be adjusted
by the Committee in accordance with the terms of the Plan to reflect certain corporate transactions which affect the number, type
or value of the Restricted Stock Units or Dividend Equivalent Units.

 

11.           Notices.
Any notice required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a
United States Post Office, postage prepaid, addressed, as appropriate, to the Company at its principal offices, to the Participant
at the Participant’s address as last known by the Company or, in either case, such other address as one party may designate
in writing to the other.

 

 

    	 

    	 

    

 

12.           Governing
Law. The validity, construction and effect of this Agreement shall be determined in accordance with the laws of the State
of New York and applicable federal law.

 

13.           Amendments. The Board of Directors may, at any time, amend or terminate the Plan, and the Board of Directors or the
Committee may amend this Agreement, provided that no amendment or termination may, in the absence of written consent to the change
by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights
of any Participant or beneficiary under this Agreement prior to the date such amendment or termination is adopted by the Board
of Directors or the Committee, as the case may be. 

 

14.           Award
Not Contract of Employment. The Award does not constitute a contract of employment or continued service, and the grant of
the Award will not give the Participant the right to be retained in the employ or service of the Company or any Subsidiary, nor
any right or claim to any benefit under the Plan or this Agreement, unless such right or claim has specifically accrued under
the terms of the Plan and this Agreement.

 

15.          
Severability. If a provision of this Agreement is held invalid by a court of competent jurisdiction, the remaining
provisions will nonetheless be enforceable according to their terms. Further, if any provision is held to be overbroad as written,
that provision shall be amended to narrow its application to the extent necessary to make the provision enforceable according to
applicable law and enforced as amended.

 

16.           Plan
Governs. The Award evidenced by this Agreement is granted pursuant to the Plan, and the Restricted Stock Units, Dividend Equivalent
Units and this Agreement are in all respects governed by the Plan and subject to all of the terms and provisions thereof, whether
such terms and provisions are incorporated in this Agreement by reference or are expressly cited.

 

17.           Special Section 409A Rules. Notwithstanding any other provision of this Agreement to the contrary, if any payment
or benefit hereunder is subject to section 409A of the Code, and if such payment or benefit is to be paid or provided on account
of the Participant’s termination of employment (or other separation from service):

 

		(a)	and if the Participant is a specified employee (within the meaning of section 409A(a)(2)(B) of the Code) and if any such payment
or benefit is required to be made or provided prior to the first day of the seventh month following the Participant’s separation
from service or termination of employment, such payment or benefit shall be delayed until the first day of the seventh month following
the Participant’s separation from service; and

 

		(b)	the determination as to whether the Participant has had a termination of employment (or separation from service) shall be made
in accordance with the provisions of section 409A and the guidance issued thereunder without application of any alternative levels
of reductions of bona fide services permitted thereunder.a50772872_ex44.htm

EXHIBIT 4.4

DeVry Education Group Inc.

Second Amended and Restated Incentive Plan of 2013

1.           Purpose; Relationship to 2005 Plan.   The purposes of the DeVry Education Group Inc. Second Amended and Restated Incentive Plan of 2013 (the “Plan”) are (i) to encourage outstanding individuals to accept or continue employment with DeVry Education Group Inc. (“DeVry Group” or the “Company”) and its subsidiaries or to serve as directors of DeVry Group, and (ii) to furnish maximum incentive to those persons to improve operations and increase profits and to strengthen the mutuality of interest between those persons and DeVry Group’s stockholders by providing them stock options and other stock and cash incentives.

 

The Company currently maintains the DeVry Inc. Incentive Plan of 2005 (the “2005 Plan”).  Upon approval of the Plan by the stockholders pursuant to Section 23, no further grants will be made under the 2005 Plan, but all prior grants under the 2005 Plan will remain outstanding in accordance with their terms.  If the Plan is not approved by the stockholders, the 2005 Plan will remain in effect.

 

The Board of Directors of DeVry Group approved the Plan, subject to stockholder approval, on May 15, 2013 and amended and restated the Plan on October 28, 2013, subject to shareholder approval, to reduce the number of shares available under the Plan pursuant to Section 4 below.   On November 6, 2013, the shareholders of DeVry Group approved the Plan and a change of the Company’s name from DeVry Inc. to DeVry Education Group Inc.  In furtherance of such name change, and under authority delegated by the Board of Directors, the Plan was amended and restated a second time on November 6, 2013 solely to reflect the Company’s new name.

 

2.           Administration. The Plan will be administered by the Compensation Committee (the “Committee”) of the DeVry Group Board of Directors (the “Board”), which consists of two or more directors as the Board may designate from time to time, each of whom shall satisfy such requirements as:

 

(a)           the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 or its successor under the Securities Exchange Act of 1934 (the “Exchange Act”);

 

(b)           the New York Stock Exchange may establish pursuant to its rule-making authority; and

 

(c)           the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

The Committee shall have the authority to construe and interpret the Plan and any awards granted thereunder, to establish and amend rules for Plan administration, to change the terms and conditions of options and other awards at or after grant (subject to Section 19), and to make all other determinations which it deems necessary or advisable for the administration of the Plan. The determinations of the Committee shall be made in accordance with their judgment as to the best interests of DeVry Group and its stockholders and in accordance with the purposes of the Plan. A majority of the members of the Committee shall constitute a quorum, and all determinations of the Committee shall be made by a majority of its members. Any determination of the Committee under the Plan may be made without notice or meeting of the Committee, in writing signed by all the Committee members. The Committee shall authorize the Company’s chief executive officer (the “CEO”) or one or more other officers of the Company to (i) select employees to participate in the Plan, (ii) determine, from the total number of option shares and other awards approved by the Committee, the number of option shares and other awards to be granted to such participants, and (iii) determine the applicable terms and conditions of such awards, except in each case with respect to awards to officers subject to Section 16 of the Exchange Act or officers who are or may become “covered employees” within the meaning of Section 162(m) of the Code (“Covered Employees”). Any reference in the Plan to the Committee (other than in Section 19) shall include such authorized officer or officers. The CEO or such other officer(s) authorized to select employees to receive such option shares and other awards shall provide written notice of all such action to the Committee.

 

  

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Awards to the CEO shall be approved by a subcommittee of the Board consisting of all directors who meet the requirements of (a), (b) and (c) above, which shall constitute the “compensation committee” as defined in Section 162(m) of the Code for purposes of such awards.

 

3.           Participants. Participants may consist of all employees of DeVry Group and its subsidiaries and all non-employee directors of DeVry Group. Any corporation or other entity in which a 50% or greater interest is at the time directly or indirectly owned by DeVry Group shall be a subsidiary for purposes of the Plan. Designation of a participant in any year shall not require the Committee to designate that person to receive an award in any other year or to receive the same type or size of award as granted to the participant in any other year or as granted to any other participant in any year. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall consider all factors deemed relevant in selecting participants and in determining the type and amount of their respective awards.

 

4.           Shares Available under the Plan.  There is hereby reserved for issuance under the Plan an aggregate of 4,500,000 shares of DeVry Group common stock.  If there is (i) a lapse, expiration, termination or cancellation of any Stock Option or other award granted under the Plan or the 2005 Plan prior to the issuance of shares thereunder or (ii) a forfeiture of any shares of restricted stock or shares subject to stock awards granted under the Plan or the 2005 Plan prior to vesting, the shares subject to these options or other awards shall be added to the shares available for awards under the Plan. Shares covered by an award granted under the Plan shall not be counted as used unless and until they are actually issued and delivered to a participant; provided that shares that are withheld for payment of the exercise price of a Stock Option, or for payment of tax withholding, shall be treated as issued. The total number of shares covered by a Stock Appreciation Right, rather than the net number of shares issued, shall be counted as used upon exercise of the right. In addition, any shares covered by a Stock Option, Stock Appreciation Right, or an award of Restricted Stock, Restricted Stock Units, or Performance Shares shall be treated as issued even if the award is settled in cash. All shares issued under the Plan may be either authorized and unissued shares or issued shares reacquired by DeVry Group.  During any fiscal year, no individual participant may receive Stock Options relating to more than 50% of the total number of shares reserved pursuant to the first sentence of this Section 4 (as amended from time to time), and no individual participant may receive Stock Appreciation Rights relating to more than 50% of the total number of shares reserved pursuant to the first sentence of this Section 4 (as amended from time to time). The shares reserved for issuance and the limitations set forth above shall be subject to adjustment in accordance with Section 15 hereof. All of the available shares (without adjustment) may, but need not, be issued pursuant to the exercise of Incentive Stock Options.

 

5.           Types of Awards. Awards under the Plan shall consist of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Stock, Performance Stock Units, Performance Cash Awards, Annual Management Incentive Awards and Other Stock or Cash Awards, all as described below.

 

6.           Stock Options. Stock Options may be granted to participants, at any time as determined by the Committee. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall determine the number of shares subject to each option and whether the option is an Incentive Stock Option. The option price for each option shall be determined by the Committee, but shall not be less than 100% of the fair market value of DeVry Group’s common stock on the date the option is granted. Each option shall expire at such time as the Committee shall determine at the time of grant. Options shall be exercisable at such time and subject to such terms and conditions as the Committee shall determine; provided, however, that no option shall be exercisable later than the tenth anniversary of its grant. The option price, upon exercise of any option, shall be payable to DeVry Group in full by (a) cash payment or its equivalent, (b) tendering previously acquired shares having a fair market value at the time of exercise equal to the option price or certification of ownership of such previously-acquired shares, (c) delivery of a properly executed exercise notice, together with irrevocable instructions to a broker to promptly deliver to DeVry Group the amount of sale proceeds from the option shares or loan proceeds to pay the exercise price and any withholding taxes due to DeVry Group, and (d) such other methods of payment as the Committee, at its discretion, deems appropriate. In no event shall the Committee (a) cancel any outstanding Stock Option for the purpose of reissuing the option to the participant at a lower exercise price or reduce the option price of an outstanding option, or (b) cause any Stock Option to be repurchased or otherwise cancelled in exchange for a payment of any form of consideration if the exercise price is greater than the fair market value of the shares covered by the Stock Option.

 

  

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7.           Stock Appreciation Rights. Stock Appreciation Rights (“SARs”) may be granted to participants at any time as determined by the Committee. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall determine the number of SARs to be granted to each participant. A SAR may be granted in tandem with a Stock Option granted under this Plan or on a free-standing basis. The grant price of a tandem SAR shall be equal to the option price of the related option. The grant price of a free-standing SAR shall be equal to the fair market value of DeVry Group’s common stock on the date of its grant. A SAR may be exercised upon such terms and conditions and for the term as the Committee in its sole discretion determines; provided, however, that the term shall not exceed the option term in the case of a tandem SAR or ten years in the case of a free-standing SAR. Upon exercise of a SAR, the participant shall be entitled to receive payment from DeVry Group in an amount determined by multiplying the excess of the fair market value of a share of common stock on the date of exercise over the grant price of the SAR by the number of shares with respect to which the SAR is exercised. The payment may be made in cash or stock, at the discretion of the Committee. In no event shall the Committee (a) cancel any outstanding SAR for the purpose of reissuing the right to the participant at a lower exercise price or reduce the exercise price of an outstanding SAR, or (b) cause any SAR to be repurchased or otherwise cancelled in exchange for a payment of any form of consideration if the grant price is greater than the fair market value of the shares covered by the SAR.

 

8.           Restricted Stock and Restricted Stock Units. Restricted Stock and Restricted Stock Units may be awarded to participants under such terms and conditions as shall be established by the Committee. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall determine the amount or number of Restricted Stock and Restricted Stock Units to be granted to each participant. Restricted Stock Units provide participants the right to receive shares at a future date upon the attainment of certain conditions specified by the Committee. Restricted Stock and Restricted Stock Units shall be subject to such restrictions and conditions as the Committee determines, including, without limitation, any of the following:

 

(a)           a prohibition against sale, assignment, transfer, pledge, hypothecation or other encumbrance for a specified period; or

 

(b)           a requirement that the holder forfeit such shares or units in the event of termination of employment during the period of restriction.

 

All restrictions shall expire at such times as the Committee shall specify.

 

9.           Performance Stock and Performance Stock Units. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall designate the participants to whom shares of Performance Stock and Performance Stock Units are to be awarded and determine the number of shares, the length of the performance period and the other terms and conditions of each such award; provided the stated performance period will not be less than 12 months except in the case of a newly hired participant. Each award of Performance Stock shall consist of a number of shares of stock that shall be issued upon the grant of the award, but shall be subject to forfeiture if the stated performance goals are not achieved, and each award of Performance Share Units shall entitle the participant to a payment in the form of shares of common stock upon the attainment of performance goals, in both cases subject to such other terms and conditions as the Committee may specify.

 

  

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Notwithstanding satisfaction of any performance goals, the number of shares issued under a Performance Stock award may be adjusted by the Committee on the basis of such further consideration as the Committee in its sole discretion shall determine.  The maximum number of shares of Performance Stock and Performance Stock Units that may be earned by any Covered Employee in any fiscal year shall not exceed 50% of the total number of shares reserved pursuant to the first sentence of this Section 4 (as amended from time to time). The Committee may, in its discretion, make a cash payment equal to the fair market value of shares of common stock otherwise required to be issued to a participant pursuant to a Performance Stock Unit award.

 

10.           Performance Cash Awards. The Committee or, if authorized pursuant to Section 2 hereof, the CEO or one or more other officers of the Company shall designate the participants to whom Performance Cash Awards (“Performance Cash Awards”) are to be awarded and determine the number of units and the terms and conditions of each such award; provided the stated performance period will not be less than 12 months except in the case of a newly hired participant. Each Performance Cash Award shall entitle the participant to a payment in cash upon the attainment of performance goals and other terms and conditions specified by the Committee.

 

Notwithstanding the satisfaction of any performance goals, the amount to be paid under a Performance Cash Award may be adjusted by the Committee on the basis of such further consideration as the Committee in its sole discretion shall determine. The maximum amount earned by a Covered Employee in any fiscal year may not exceed $5,000,000.  The Committee may, in its discretion, substitute actual shares of common stock for the cash payment otherwise required to be made to a participant pursuant to a Performance Cash Award.

 

11.           Annual Management Incentive Awards. For each fiscal year commencing with the fiscal year beginning July 1, 2014, there is hereby established an incentive pool equal to 5% of DeVry Group’s consolidated operating earnings for the fiscal year. The Committee may, by resolution adopted during the first 90 days of the fiscal year, allocate an incentive pool percentage to each designated participant for each fiscal year; but if the Committee does not adopt a different allocation, then 20% of the incentive pool shall be allocated to each person who is a “named executive officer” of the Company for the fiscal year, as defined by Item 402(a)(3)(i) through (iii) (but not (iv)) of SEC Regulation S-K), determined as of the end of the fiscal year and disregarding any person who is a named executive office solely by reason of having served as principal executive officer or principal financial officer earlier in the fiscal year. In no event may the incentive pool percentage for any one participant exceed 20% of the total pool, regardless of how many participants are allocated a percentage.  Consolidated operating earnings shall mean the consolidated earnings before income taxes of the Company, computed in accordance with generally accepted accounting principles, but shall exclude the effects of Special Items. Special Items shall include (i) gains or losses on the disposition of a business, (ii) changes in tax or accounting regulations or laws, or (iii) the effect of a merger or acquisition, as determined in accordance with generally accepted accounting principles.

 

As soon as possible after the determination of the incentive pool for a fiscal year, the Committee shall certify each participant’s allocated portion of the incentive pool based upon the percentage established in the preceding paragraph. The participant’s incentive award then shall be determined by the Committee (or, in the case of the CEO, the outside members of the Board as provided in the last paragraph of Section 2) based on the participant’s allocated portion of the incentive pool subject to reduction in the sole discretion of the Committee. In no event may the portion of the incentive pool allocated to a participant be increased in any way, including as a result of the reduction of any other participant’s allocated portion, and in no event shall any person be entitled to any Annual Management Incentive Award under this Section 11 until the Committee has affirmatively certified such person’s allocated share of the incentive pool and the final amount of such person’s payment.

 

12.           Other Stock or Cash Awards. In addition to the incentives described in Sections 6 through 11 above, the Committee may grant other incentives payable in cash or in common stock under the Plan as it determines to be in the best interests of DeVry Group and subject to such other terms and conditions as it deems appropriate; provided an outright grant of stock will not be made unless it is offered in exchange for cash compensation that has otherwise already been earned by the recipient.

 

  

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13.           Performance Criteria. Awards of Stock Options, SARs, Performance Stock, Performance Stock Units, Performance Cash Awards and other incentives under the Plan may be made subject to the attainment of performance goals relating to one or more business criteria, including, but not limited to, cash flow; cost; ratio of debt to debt plus equity; profit before tax; economic profit; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings per share; operating earnings; economic value added; ratio of operating earnings to capital spending; free cash flow; net profit; net sales; sales growth; price of DeVry Group common stock; return on net assets, equity or stockholders’ equity; market share; total return to stockholders; or measurable student outcomes or satisfaction (“Performance Criteria”). Any Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index. Any Performance Criteria may include or exclude Special Items (as defined in section 11 above).  In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, generally accepted accounting principles, or under a methodology established by the Committee not later than the issuance of an award.

 

Notwithstanding the foregoing, any award of Performance Stock, Performance Stock Units, or Performance Cash Awards to a Covered Employee shall be subject to the following requirements, unless the Committee determines at the time of grant that the award is not intended to constitute “qualified performance based compensation” for purposes of Section 162(m) of the Code:

 

(a)           The Performance Criteria for such award shall be established by the earlier of the first 90 days, or the first 25%, of the period of service to which the award relates (which may be the period commencing on the participant’s date of employment, even if the Performance Criteria takes into account periods prior to such date), and at a time when achievement of the Performance Criteria is substantially uncertain.

 

(b)           The Performance Criteria for such award shall be limited to one or more of the specific Performance Criteria listed above, and shall be stated in terms so that a third party having knowledge of the relevant performance results could calculate the amount to be paid pursuant to the award; provided that the foregoing shall not preclude the Committee from exercising negative discretion to reduce a Covered Employee’s award based upon other criteria, including its subjective evaluation of the Covered Employee, to the extent permitted by the terms of the award.

 

(c)           The Committee may not in any event increase the amount of compensation payable to the Covered Employee upon the attainment of the Performance Criteria.

 

(d)           Payment to the Covered Employee may not be made unless the Committee has certified the extent to which the Performance Criteria have been satisfied.

 

14.           Change in Control. Except as otherwise determined by the Committee at the time of grant of an award, upon a Change in Control of DeVry Group, all performance goals shall be deemed achieved at target levels and all other terms and conditions met; all outstanding Stock Options and SARs shall become vested and exercisable; all restrictions on Restricted Stock and Performance Stock shall lapse; all Performance Cash Awards, Restricted Stock Units and Performance Stock Units shall be paid out as promptly as practicable; all Annual Management Incentive Awards shall be paid out based on the consolidated operating earnings of the immediately preceding year or such other method of payment as may be determined by the Committee at the time of award or thereafter but prior to the Change in Control; and all Other Stock or Cash Awards shall be delivered or paid. A “Change in Control” shall mean:

 

(i)           the sale or disposition by the Company of all or substantially all of the assets of the Company (or any transaction having a similar effect);

 

  

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(ii)           the consummation of a merger or consolidation of the Company with any other entity other than (A) a merger or consolidation which would result in the voting interests of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting interests of the surviving entity) at least 50% of the combined voting power of the voting interests of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction); or

 

(iii)           the acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of the then outstanding voting interests of the Company but excluding, for this purpose, any such acquisition by the Company or any of its affiliates, or by any employee benefit plan (or related trust) of the Company or any of its affiliates.

 

15.           Adjustment Provisions.

 

(a)           In the event of any change affecting the shares of DeVry Group Common Stock by reason of stock dividend, stock split, reverse stock split, spin-off, recapitalization, merger, consolidation, reorganization, share combination, exchange of shares, stock rights offering, liquidation, extraordinary cash dividend, disaffiliation of a subsidiary or similar event, the Committee shall make such adjustments (if any) as it deems appropriate and equitable, in its discretion, to outstanding awards to reflect such event, including without limitation, (1) adjustments in the aggregate number or class of shares which may be distributed under the Plan, the maximum number of shares which may be made subject to an award in any year and in the number, class and option price or other price of shares subject to the outstanding awards granted under the Plan; (2) the substitution of other property (including, without limitation, other securities) for the stock covered by outstanding awards; and (3) in connection with any disaffiliation of a subsidiary, arrangement for the assumption, or replacement with new awards, of awards held by participants employed by the affected subsidiary by the entity that controls the subsidiary following the disaffiliation.

 

(b)           In the event of any merger, consolidation or reorganization of DeVry Group with or into another corporation which results in the outstanding common stock of DeVry Group being converted into or exchanged for different securities, cash or other property, or any combination thereof, there shall be substituted, on an equitable basis as determined by the Committee in its discretion, for each share of common stock then subject to an award granted under the Plan, the number and kind of shares of stock, other securities, cash or other property to which holders of common stock of DeVry Group will be entitled pursuant to the transaction.

 

16.           Substitution and Assumption of Awards. The Board of Directors or the Committee may authorize the issuance of awards under this Plan in connection with the assumption of, or substitution for, outstanding awards previously granted to individuals who become employees of DeVry Group or any subsidiary as a result of any merger, consolidation, acquisition of property or stock, or reorganization other than a Change in Control, upon such terms and conditions as the Committee may deem appropriate.

 

17.           Nontransferability. Each award granted under the Plan shall not be transferable otherwise than by will or the laws of descent and distribution and each Stock Option and SAR shall be exercisable during the participant’s lifetime only by the participant or, in the event of disability, by the participant’s personal representative. In the event of the death of a participant, exercise of any award or payment with respect to any award shall be made only by or to the executor or administrator of the estate of the deceased participant or the person or persons to whom the deceased participant’s rights under the award shall pass by will or the laws of descent and distribution. Notwithstanding the foregoing, at its discretion, the Committee may permit the transfer of an award other than an Incentive Stock Option by the participant, on a general or specific basis, subject to such terms and conditions as may be established by the Committee.

 

  

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18.           Taxes. DeVry Group shall be entitled to withhold the amount of any tax attributable to any amounts payable or shares deliverable under the Plan, after giving the person entitled to receive such payment or delivery notice and DeVry Group may defer making payment or delivery as to any award, if any such tax is payable until indemnified to its satisfaction. A participant may pay all or a portion of any required withholding taxes arising in connection with the exercise of a Stock Option or SAR or the receipt of shares hereunder by electing to have DeVry Group withhold shares of common stock, having a fair market value equal to the amount required to be withheld.  All awards under this Plan are intended to be exempt from, or to satisfy, the requirements of Section 409A of the Code, and to the maximum extent permitted by law the Plan and all award agreements shall be so interpreted and administered.  Without limiting the generality of the foregoing, if any participant is a “specified employee” at the time that he incurs a “separation from service”, as both such terms are defined by Section 409A, any amount that becomes payable to such participant by reason of such separation from service that constitutes a form of deferred compensation subject to Section 409A shall not be paid until the earlier of the first day of the seventh month following the month that includes the separation from service or the date of the participant’s death.  Notwithstanding the foregoing, in no event shall the Company, the members of the Committee, or any other person have any obligation to indemnify or reimburse any participant for any additional taxes or penalties imposed on such participant by reason of Section 409A.

 

19.           Duration, Amendment and Termination. No award shall be granted more than ten years after the date of adoption of this Plan by the Board of Directors; provided, however, that the terms and conditions applicable to any award granted on or before such date may thereafter be amended or modified by mutual agreement between DeVry Group and the participant, or such other person as may then have an interest therein. The Board of Directors or the Committee may amend the Plan from time to time or terminate the Plan at any time. However, no such action, and no amendment or modification of an award, shall reduce the amount of any existing award or change the terms and conditions thereof in a manner that is adverse to the interests of the participant, without the participant’s consent, except as otherwise permitted. No amendment to the Plan that is material, within the meaning of New York Stock Exchange listing requirements or other applicable law, shall be made without stockholder approval.

 

20.           Fair Market Value. The fair market value of DeVry Group’s common stock at any time shall be determined in such manner as the Committee may deem equitable, or as required by applicable law or regulation.

 

21.           Other Provisions.

 

(a)           Any award under the Plan may also be subject to other provisions (whether or not applicable to an award granted to any other participant) as the Committee determines appropriate, including provisions intended to comply with federal or state securities laws and stock exchange requirements, understandings or conditions as to the participant’s employment, requirements or inducements for continued ownership of common stock after exercise or vesting of awards, forfeiture of awards in the event of termination of employment shortly after exercise or vesting, or breach of noncompetition or confidentiality agreements following termination of employment, or provisions permitting the deferral of the receipt of an award for such period and upon such terms as the Committee shall determine.

 

(b)           In the event any award under this Plan is granted to an employee who is employed or providing services outside the United States and who is not compensated from a payroll maintained in the United States, the Committee may, in its sole discretion, modify the provisions of the Plan as they pertain to such individuals to comply with applicable law, regulation or accounting rules.

 

(c)           The Committee, in its sole discretion, but subject to the requirements of Section 409A of the Code, may permit or require a participant to have amounts or shares of common stock that otherwise would be paid or delivered to the participant as a result of the exercise or settlement of an award under the Plan (other than a Stock Option or SAR) credited to a deferred compensation or stock unit account established for the participant by the Committee on the Company’s books of account.

 

  

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22.           Governing Law. The Plan and any actions taken in connection herewith shall be governed by and construed in accordance with the laws of the state of Delaware (without regard to applicable Delaware principles of conflict of laws).

 

23.           Stockholder Approval. The Plan, as amended and restated, was adopted by the Board of Directors on October 28, 2013, subject to stockholder approval.  The Plan and any awards granted thereunder shall be null and void if stockholder approval is not obtained at the next annual meeting of stockholders; provided, however, that to the extent that any such award could have been made under the terms of the 2005 Plan, such award shall remain in effect and be treated as having been made under the 2005 Plan.

 

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