Document:

Exhibit 10.49

 

EIGHTH AMENDMENT

OF ESI PENSION PLAN

 

This Eighth
Amendment of ESI Pension Plan (the “Plan”) is adopted by ITT Educational
Services, Inc. (the “Employer”).

 

Background

 

A.                                   The Employer originally established the Plan
effective June 9, 1998.

 

B.                                     The Plan has been amended by a First, Second,
Third, Fourth, Fifth, Sixth and Seventh Amendment.

 

C.                                     The Employer now wishes to amend the Plan
further.

 

Amendment

 

1.                                       Effective January 1, 2005,
the definition of “Compensation” at Section 2.01 is amended to read as
follows:

 

“Compensation”
means, with respect to an Employee for a Plan Year, the Employee’s wages,
salaries, fees for professional services, and other amounts received for
personal services actually rendered in the course of employment with the
Employer to the extent that the amounts are included in gross income.  For purposes of Sections 6.02 and 6.03, an
Employee’s salary specifically includes retention bonuses and lump sum vacation
pay, and specifically excludes curriculum development pay, settlement agreement
pay, lieu of notice pay, short term disability pay and severance pay.   Compensation also includes amounts
contributed by the Employer pursuant to a salary reduction agreement that are
not includable in the gross income of the Member under Code section 125 or
457, subsection 402(h) or 403(b), or paragraph 132(f)(4) or
402(e)(3); and Employee contributions described in Code
paragraph 414(h)(2) that are treated as Employer contributions.  Compensation does not include, whether or not
included in gross income, reimbursements or other expense allowances; fringe
benefits (cash and non-cash); moving expenses (including settling in
allowances); or nonqualified deferred compensation; welfare benefits; amounts
realized from the exercise of a nonqualified stock option, or when restricted
stock (or property) held by an employee either becomes freely transferable or
is no longer subject to a substantial risk of forfeiture.  Except as permitted by the Code for purposes
of Section 7.08 and Articles XI and XIII, an Employee’s Compensation
will not exceed the limit described at Section 15.04.

 

 

2.                                       Effective March 28, 2005,
Subsection 7.01(a) is amended to read as follows:

 

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

 

3.                                       Effective March 28, 2005,
Subsection 7.02(a) is amended to read as follows:

 

(a)                                  If the
present value of the balance of the Member’s Cash Balance Account on the date
that is the first anniversary of his Disability Date is $1,000 or less, his
benefit will be paid to him as soon as administratively feasible after the
first anniversary of his Disability Date. 
If the value of the balance of the Member’s Cash Balance Account on the
date that is the first anniversary of his Disability Date exceeds $1,000 but
does not exceed $5,000, his benefit will be paid to him as of the first day of
any month occurring after the first anniversary of his Disability Date and on
or before his Required Beginning Date, as he elects.  If the value of the balance of the Member’s
Cash Balance Account exceeds $1,000 but does not exceed $5,000 on the date that
is the first anniversary of his Disability Date, but later exceeds $5,000, his
benefits will be paid to him in accordance with Subsection (b) as though
he deferred payment to a time after his benefits were first payable.

 

4.                                       Effective March 28, 2005,
Subsection 7.03(a) is amended to read as follows:

 

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

 

2

 

5.                                       Effective March 28, 2005,
Subsection 7.04(a) is amended to read as follows:

 

(a)                                  If the
present value of the balance of the Member’s Cash Balance Account on the date
of his death, together with the amount of any prior distributions from the
Plan, is $1,000 or less, a benefit equal to the present value of the Member’s
Cash Balance Account will be paid to his Beneficiary in a single lump sum cash
payment as soon as administratively feasible after his death.  If the present value of the balance of the
Member’s Cash Balance Account on the date of his death, together with the
amount of any prior distributions from the Plan, exceeds $1,000 but does not
exceed $5,000, a benefit equal to the present value of his Cash Balance Account
will be paid to his Beneficiary in a single lump sum cash payment as of the
first day of any month the Beneficiary designates, if his Beneficiary is the
Member’s Spouse, or as soon as administratively feasible after his death, if
his Beneficiary is not his Spouse.  If
the present value of the balance of the Member’s Cash Balance Account on the
date of his death, together with the amount of any prior distributions from the
Plan, exceeds $1,000 but does not exceed $5,000, but exceeds $5,000 on the date
as of which his Spouse elects to receive it, the Spouse’s benefit will be paid
to the Spouse in accordance with Subsection (b) as though the Member’s
death occurred on the date as of which the Spouse elected to receive the
benefit.

 

6.                                       Effective January 1, 2004,
Paragraph 11.02(a)(4) is amended to read as follows:

 

(4)                                  For purposes
of adjusting the limit under Paragraph (3), the interest rate assumption
used for distributions with Annuity Starting Dates in 2004 will be the greatest
of the applicable interest rate (as defined in Code paragraph 417(e)(3))
in effect on December 31, 2003, 5.5% and the rate used to compute an
Actuarial Equivalent; the interest rate assumption used for distributions with
Annuity Starting Dates in 2005 will be the greater of 5.5% and the rate used to
compute an Actuarial Equivalent; and the interest rate assumption used for
distributions with Annuity Starting Dates in 2006 and later Plan Years will be
the greater of the applicable interest rate (as defined in Code
paragraph 417(e)(3)) and the rate used to compute an Actuarial
Equivalent.  For purposes of adjusting
the limit under Paragraph (2), the interest rate assumption will be the
lesser of 5% or the rate used to compute an Actuarial Equivalent.  For purposes of adjusting any limit or
benefit under Paragraph (1), (2) or (3), the mortality table used will
be the table prescribed in Revenue Ruling 2001-62.

 

7.                                       Effective March 28, 2005,
Section 7.16 is amended to read as follows:

 

Section
7.16.  Annual
Determination of Cash Balance Accounts. 
For purposes of Sections 7.01, 7.02, 7.03 and 7.04, the
determination of whether the present value of a Member’s Cash Balance Account
is $1,000 or less will be made at the time the benefit is first payable and
again once each Plan Year after the benefit is first payable.  If at any time a determination is made that
the present value of a Member’s Cash Balance Account is $1,000 or less, the
benefit will be paid to the Member or his or her Beneficiary in a lump sum cash
payment as soon as administratively feasible after the determination.

 

3

 

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

 

 

	
   

  	
  ITT EDUCATIONAL SERVICES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Nina Esbin

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
      Nina
  Esbin

  	
   

  
	
   

  	
   

  	
  (Printed)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
      Sr.
  VP, Human Resources

  	
   

  
	
   

  	
   

  	
  (Title)

  	
   

  

 

	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
      /s/
  Jenny Yonce

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
      Jenny
  Yonce

  	
   

  
	
  (Printed)

  	
   

  
	
   

  	
   

  
	
      Mgr,
  Benefits & HRIS

  	
   

  
	
  (Title)

  	
   

  

 

4Exhibit 10.50

 

 

FOURTH AMENDMENT
OF ESI 401(k) PLAN

 

This Fourth
Amendment of the ESI 401(k) Plan (the “Plan”) is adopted by
ITT Educational Services, Inc. (the “Employer”).

Background

 

A.                                                     Effective May 15, 1998, the Employer
amended and completely restated the Plan.

 

B.                                                       The Plan has been amended by a First, Second
and Third Amendment.

 

C.                                                       The Employer now wishes to amend the Plan
further.

 

Amendment

 

1.                                                         Effective
April 1, 2005, the definition of “Salary” at Section 2.54 is amended
to read as follows:

 

“Salary” shall mean, with respect to an Employee
for a Plan Year, the Employee’s wages, salaries, fees for professional
services, and other amounts received for personal services actually rendered in
the course of employment with the Company to the extent that the amounts are
included in gross income, but excluding bonuses (other than retention
bonuses).  “Salary” specifically includes
retention bonuses and lump sum vacation pay, and specifically excludes
curriculum development pay, settlement agreement pay, lieu of notice pay, short
term disability pay and severance pay.  “Salary”
also includes amounts contributed by the Company pursuant to a salary reduction
agreement that are not includible in the gross income of the Member under
section 125, 457, 402(h), 403(b), or 402(e)(3) of the Code, and
Employee contributions described in section 414(h)(2) of the Code that are
treated as Employer contributions. 
Salary does not include, whether or not included in gross income,
reimbursements or other expense allowances, fringe benefits (cash and non-cash),
moving expenses (including settling in allowances), nonqualified deferred
compensation, welfare benefits, or amounts realized from the exercise of a
nonqualified stock option, or when restricted stock (or property) held by an
employee either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture.  Salary
shall not exceed the limit described at Section 18.4.

 

 

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

 

(b)           In lieu of a distribution as described in
paragraph (a) above, a Member or Deferred Member whose Vested Share exceeds $1,000, may, in
accordance with procedures prescribed by the Committee, elect to have the distribution
of his or her Vested Share commence as of any Valuation Date coincident with or following his or
her Termination of Employment that is before the date described in
paragraph (a) above.

 

(c)           In the case of the death of a Member
or Deferred Member before payment of his or her Accounts commences, the Vested
Share of his or her Accounts shall be distributed to his or her Beneficiary as
soon as administratively practicable following the Member’s or Deferred Member’s
date of death.  Notwithstanding the
foregoing, the Beneficiary of a Member or Deferred Member whose Vested Share of
his or her Accounts, as of the Valuation Date coincident with or next following
the Member’s or Deferred Member’s date of death, exceeds $1,000 may elect to
defer receipt of the Member’s or Deferred Member’s Vested Share for a period
not to exceed 12 months from the Member’s or Deferred Member’s date of death.

 

3.             Effective
March 28, 2005, the first paragraph of Section 11.2(b) is amended to
read as follows:

 

(b)           A Member or Deferred Member whose
Vested Share, as of the Valuation Date corresponding to his or her application
for distribution, exceeds $1,000 but does not exceed $5,000, may elect, in
accordance with the administrative procedures and within the time period
prescribed by the Committee, to receive his or her Vested Share in a lump sum
payment.  A Member or Deferred Member
whose Vested Share, as of the Valuation Date corresponding to his or her
application for distribution, exceeds $5,000, may elect, in accordance with the
administrative procedures and within the time period prescribed by the
Committee, to receive his or her Vested Share in one of the following optional
forms:

 

4.             Effective
March 28, 2005, Subsection 11.3 is amended to read as follows:

 

11.3        Small Benefits. 
Notwithstanding any provision of the Plan to the contrary, a lump sum
payment shall be made in lieu of all vested benefits if the value of the Vested
Share of the Member’s Accounts as of the time the benefits are distributed
amounts to $1,000 or less.  The lump sum
payment shall automatically be made as soon as administratively practicable
following the Member’s Termination of Employment.

 

5.             Effective
March 28, 2005, Section 16.4 is amended to read as follows:

 

16.4        Inalienability
of Benefits.

 

(a)           Except as specifically provided in the
Plan or as applicable law may otherwise require or as may be required under the
terms of a Qualified Domestic Relations Order, no benefit under the Plan shall
be subject in any manner to anticipation, alienation,

 

2

 

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

 

(b)           Notwithstanding the foregoing,
payment shall be made in accordance with the provisions of a Qualified Domestic
Relations Order.

 

Notwithstanding anything
herein to the contrary, if the amount payable to an alternate payee under a
Qualified Domestic Relations Order is $1,000 or less, the amount shall be paid
in one lump sum as soon as practicable following the qualification of the
order.  If the amount exceeds $1,000, it
may be paid as soon as practicable following the qualification of the order if
the Qualified Domestic Relations Order so provides and the alternate payee
consents thereto; otherwise it may not be payable before the earliest of (i)
the Member’s Termination of Employment, (ii) the time the amount could be
withdrawn under Article Ten, or (iii) the Member’s attainment of age 50.

 

6.             Effective
March 28, 2005, Subsection 18.8(b) is amended to read as follows:

 

(b)           For purposes of determining whether a
Member’s nonforfeitable account balance exceeds $1,000 under
Sections 11.1(b), 11.1(c), 11.2(b), 11.3 and 16.4 of the Plan, the
value of a Member’s nonforfeitable account balance shall be determined with
regard to that portion of the account balance that is attributable to rollover
distributions (and earnings allocable thereto) within the meaning of
Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii),
and 457(e)(16) of the Code.  If the
value of the Participant’s nonforfeitable account balance as so determined is
$1,000 or less, the Plan shall immediately distribute the Participant’s entire
nonforfeitable account balance.  For
purposes of determining whether a Member’s nonforfeitable account balance
exceeds $5,000 under Sections 11.2(b) and 11.10 of the Plan, the
value of a Member’s nonforfeitable account balance shall be determined without
regard to that portion of the account balance that is attributable to rollover
distributions (and earnings allocable thereto), as described in the first
sentence of this Section.

 

3

 

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

 

	
   

  	
  ITT EDUCATIONAL SERVICES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
       /s/
  Nina Esbin

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
       Nina
  Esbin

  	
   

  
	
   

  	
   

  	
  (Printed)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
       Sr.
  V.P., Human Resources

  	
   

  
	
   

  	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Jenny Yonce

  	
   

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jenny
  Yonce

  	
   

  	
   

  	
   

  	
   

  
	
  (Printed)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mgr,
  Benefits & HRIS

  	
   

  	
   

  	
   

  	
   

  
	
  (Title)

  	
   

  	
   

  	
   

  	
   

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]