Document:

Exhibit 10.1

     

   
   

    

   
   

    

   
   

  
    

      ADTALEM GLOBAL EDUCATION INC.

      EXECUTIVE EMPLOYMENT AGREEMENT

        

      

      THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of August 23, 2019 (the “Effective Date”), by and between
        Adtalem Global Education Inc. (“Adtalem”), and Michael O. Randolfi (the
        “Executive”). Adtalem and the Executive are sometimes hereinafter referred to individually as a “Party” and together as the “Parties.”

       

      Unless otherwise defined in the body of this Agreement, capitalized terms shall be defined as provided in Appendix I to this Agreement.

       

      In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
        hereto agree as follows: 

      

      

      

      AGREEMENT 

      

      

      

      
        
          1. Employment Period. Adtalem will employ the Executive, and the Executive hereby accepts employment with Adtalem, upon the terms and subject to the
              conditions set forth in this Agreement. The Executive’s employment under this Agreement shall begin on August 26, 2019 or such other date as may be mutually agreeable to the Parties (the “Start Date”), and shall continue thereafter until the first to occur of the events described in Section 8(a) (the “Employment Period”).

           

            

          2. Position and Duties.

        

      

       

      
        
          (a) Title; Responsibilities. During the Employment Period, the Executive will serve as the Senior Vice President and Chief Financial Officer of Adtalem and will have the normal duties, responsibilities and authority of that position, subject to the power of the Chairman and CEO to expand or limit such
              duties, responsibilities and authority; provided, however, at all times, Executive’s duties, responsibilities and authority shall be commensurate with such duties, responsibilities and authority held by executives in comparable positions in
              corporations of similar size and scope to Adtalem in Adtalem’s industry. The Executive shall report to the Chairman and CEO. In this trusted, executive position, the Executive will be given access to Adtalem’s Confidential Information. The
              Executive shall comply in all material respects with all applicable laws, rules and regulations relating to the performance of the Executive’s duties and responsibilities hereunder, including Adtalem’s Code of Business Conduct and Ethics.

        

      

      

      

      
        
          3. Compensation.

        

      

       

      
        
          (a) Base Salary. The Executive’s Base Salary under this Agreement shall be at the initial rate of $600,000. The Executive’s Base Salary will be paid by Adtalem in substantially equal bi-weekly installments. The Base Salary will be reviewed annually by the CEO in coordination with the Compensation Committee and upon such review the Base Salary may be increased by the CEO in coordination with the Compensation Committee (but subject to any applicable Adtalem policy, law, or
              exchange listing requirement); provided, however, the Base Salary under this Agreement, including as subsequently adjusted upwards, may not be decreased
              thereafter except in the case of an across-the-board percentage reduction in base salaries of executives at the Executive’s level affecting such executives equally. All amounts payable to the Executive under this Agreement will be subject to
              all required withholding by Adtalem.

           

            

           

            

           
            

           
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                            

        

      

      
        
           

            

          
            
              

          

        

      

      

      

      

      

      
        
          (b) Equity Awards. In addition to the Base Salary, the Executive shall be eligible for equity awards, as determined by Adtalem, the Board and/or
              Compensation Committee as necessary and appropriate to comply with Adtalem policy, applicable law, or exchange listing requirements, under Adtalem’s equity award plan(s) covering executives at the Executive’s level, as in effect from time to
              time. The equity award grant for Adtalem’s fiscal year 2020 (“FY2020”) will be made on the date that such awards are granted to other executive-level
              employees of Adtalem. The grant date value of the Executive’s FY2020 equity award shall equal no less than $1,250,000 (determined pursuant to the past practice of Adtalem), and shall consist of a mix of grant types as used for other
            similarly-situated executive employees of Adtalem.

        

      

       

      
        
          (c) Sign-On Awards.

        

      

       

      
        
          (i) Cash Bonus. The Executive shall be entitled to receive a sign-on cash bonus in an aggregate amount equal to $400,000 (the “Sign-On Cash Bonus”). The Sign-On Cash Bonus shall be paid as follows: (A) $125,000 shall be paid to the Executive on September 15, 2019, and (B) the
              remaining $275,000 shall be paid to the Executive on the date that is six (6) months following the Start Date. If the Executive’s employment with Adtalem is terminated either (I) by Adtalem for Cause, or (II) by the Executive without
            Good Reason, in each case prior to the first anniversary of the Start Date, then any portion of the Sign-On Cash Bonus that has, as of the Termination Date, been paid to the Executive shall be repaid by the Executive to Adtalem. If the
            Executive’s employment with Adtalem is terminated either (a) by Adtalem for Cause, or (b) by the Executive without Good Reason, in each case on or after the first anniversary of the Start Date but prior to the second anniversary of the Start Date, then an amount equal to fifty percent (50%) of the Sign-On Cash
            Bonus shall be repaid by the Executive to Adtalem.

        

      

      

      

      
        
          (ii) Equity Grant. The Executive shall receive a one-time award of Restricted Stock Units on the Start Date with a value on such date of $1,750,000
              consistent with Adtalem’s past practice (the “Sign-On RSUs”). Subject to the Executive’s continued employment with Adtalem on each applicable date, (A)
              forty percent (40%) of the Sign-On RSUs will become vested and be settled on the first anniversary of the Start Date, (B) forty percent (40%) of the Sign- On RSUs will become vested and be settled on the second anniversary of the Start Date,
              and (C) twenty percent (20%) of the Sign-On RSUs will become vested and be settled on the third anniversary of the Start Date.

           

            

           

          
          

          
            
              	
                      3005 Highland Parkway 

                      

                    	
                      ● 

                      

                    	
                      Downers Grove, IL 

                      

                    	
                      ● 

                      

                    	
                      60515-5799 

                      

                    	
                      ●

                    	
                      T: 630-515-7700 

                      

                    	
                      ●

                    	
                      adtalem.com 

                      

                    

            

                           

            

             

           

            

          
            
              

          

           

            

        

      

      
        
           

          

        

      

      

      

      
        
          4. Management Incentive. In addition to the Base Salary, the Executive will be eligible to receive an annual MIP Target payment under Adtalem’s annual Management Incentive Plan, as in effect
              from time to time, upon the achievement of specific Adtalem-wide and personal performance goals that will be determined each fiscal year by the Chairman and CEO and/or the Compensation Committee as necessary and appropriate to comply with
              Adtalem policy; provided, however, the MIP Award may be based on a higher or lower percentage of the MIP Target for performance which is in excess of target goals or below target goals, respectively. Any MIP Award due and owing hereunder with
              respect to any fiscal year shall be paid no later than the fifteenth day of the third month following the end of Adtalem’s fiscal year in which the MIP Award was earned. For FY2020, the Executive’s applicable MIP Target shall equal eighty
              percent (80%) of the Executive’s Base Salary. 

          

        

      

      

      

      
        
          5. Vacation. The Executive will be entitled to the number of weeks of vacation each fiscal year equal to that of other executives at the Executive’s level. 

          

        

      

      

      

      
        
          6. Benefits. In addition to the Base Salary and other compensation provided for in Section 3 and Section 4 above, the Executive shall be eligible to participate in such health and welfare
              benefit plans (including Executive’s eligible dependents) and any qualified and/or non- qualified retirement plans of Adtalem as may be in effect from time to time; provided, however, that participation shall be subject to all of the terms
              and conditions of such plans, including, without limitation, all waiting periods, eligibility requirements, vesting, contributions, exclusions and other similar conditions or limitations. Any and all benefits under any such plans shall also
              be payable, if applicable, in accordance with the underlying terms and conditions of such plan document. Executive’s participation in the foregoing plans and any perquisite programs will be on terms no less favorable than afforded to
              executives at the Executive’s level, as in effect from time to time. Adtalem, however, shall have the right in its sole discretion to modify, amend or terminate such benefit plans and/or perquisite programs at any time. Adtalem will reimburse
              the Executive for all reasonable business expenses incurred by Executive in the course of performing Executive’s duties and responsibilities under this Agreement which are consistent with Adtalem’s policies and procedures in effect from time
              to time. 

          

        

      

      

      

      
        
          7. Board Membership. During the Employment Period, the Executive may serve on the board of directors of one public company and on the board of directors (or equivalent body) of one private
              company, provided that (i) such service is pre-approved in writing by the Chairman & CEO, (ii) such service does not interfere with or impede the performance of the Executive’s duties and responsibilities to Adtalem, and (iii) Executive
              complies at all times with the Code of Business Conduct and Ethics. 

          

        

      

      

      

      
        
          8. Termination.

        

      

      

      

      
        
          
            (a) When Does Termination
                  Occur. The Executive’s employment with Adtalem and the Employment Period will end on the earlier of (i) the Executive’s death or Permanent Disability, (ii) the Executive’s resignation at any time
                with or without Good Reason, or (iii) termination by Adtalem at any time with or without Cause. Except as otherwise provided herein, any termination of the Employment Period by Adtalem or by the Executive will be effective as
              specified in a written notice from the terminating Party to the other Party; provided, however, if the Executive’s employment with Adtalem is terminated during the Employment Period by Adtalem without Cause or by the Executive without Good
              Reason, the terminating Party must give the other Party at least thirty (30) days prior written notice. For avoidance of doubt, Executive’s voluntary retirement from Adtalem shall be deemed a resignation by Executive without Good Reason.

             

              

              
              

              
                
                  	
                          3005 Highland Parkway 

                          

                        	
                          ● 

                          

                        	
                          Downers Grove, IL 

                          

                        	
                          ● 

                          

                        	
                          60515-5799 

                          

                        	
                          ●

                        	
                          T: 630-515-7700 

                          

                        	
                          ●

                        	
                          adtalem.com 

                          

                        

                

                               

                
                  
                    

                

              

            

             

            

             

            

            

            
              
                (b) Termination

                      Due to Death or Permanent Disability. If the Employment Period is terminated pursuant to Section 8(a)(i) above, then, through the date of termination of Executive’s employment with Adtalem,
                    the Executive will be entitled to the Accrued Benefits payable no later than thirty (30) days following Executive’s Termination Date. Except as set forth in this paragraph (b), the Executive will not be entitled to any other Base
                    Salary, severance, compensation or benefits from Adtalem thereafter, other than those previously earned under any of Adtalem’s retirement plans or expressly required under applicable law. 

                

              

            

            

            

            
              
                (c) Termination

                      by Adtalem With Cause or By the Executive Without Good Reason. If the Employment Period is terminated by Adtalem with Cause or if the Executive resigns without Good Reason, then the Executive will only
                    be entitled to receive the Accrued Benefits payable no later than thirty (30) days following Executive’s Termination Date. Except as set forth in this paragraph (c), the Executive will not be entitled to any other Base Salary,
                    severance, compensation or benefits from Adtalem thereafter, other than those previously earned under any of Adtalem’s retirement plans or expressly required under applicable law. Within ten (10) days following notice of
                  termination with Cause, the Executive may request of the CEO an opportunity to cure the Cause event, which request shall be determined by the CEO in the CEO’s sole discretion. 

                

              

            

            

            

            
              
                (d) Termination

                      by Adtalem Without Cause or By the Executive With Good Reason. In addition to the Accrued Benefits (which shall be due regardless of whether the Executive executes the Release and complies with the
                    terms of this Agreement and the Release), if: 

                

              

            

            

            

            
              
                (i) the Executive’s employment with Adtalem is
                    terminated during the Employment Period (A) by Adtalem without Cause or (B) by the Executive with Good Reason; and 

                

              

            

            

            

            
              
                (ii) the Executive executes a Release and such Release
                    is not timely revoked by Executive and becomes legally effective within 60 days following the Termination Date; and

                 

                  

                (iii) the Executive complies with the terms of this
                    Agreement and the release,

              

            

          

        

      

      
         

      

      

      

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

        

      

       

      
        
          

      

      

      

       

      
        
           

          

          then the Executive will be entitled to receive:

           

            

          (A) Base Salary and MIP Award. payment of an amount equal to one and one-half (11⁄2) times the sum of Executive’s Base Salary (at the rate then in
              effect; provided that if the Executive’s termination is for Good Reason based on a reduction in the Base Salary, then the applicable Base Salary for purposes of this Section 8(d)(iii)(A) shall equal the Base Salary in effect immediately prior
              to such reduction) plus the then applicable MIP Target (provided that if the Executive’s termination is for Good Reason based on a reduction in the Base Salary or MIP Target, then the applicable MIP Target for purposes of this Section
              8(d)(iii)(A) shall equal the MIP Target in effect immediately prior to such reduction) shall be payable in eighteen (18) equal monthly payments commencing with the first payroll period following the date the Release becomes legally
            effective (but, if the 60th day following the Termination Date occurs in the year subsequent to the year in which falls the Termination Date and if required for compliance with Code Section 409A, no earlier than the first business day of the
            subsequent year); and

        

      

       

      
        
          (B) Other Benefits. The following “Additional Benefits”:

        

      

       

      
        
          (I) Pro-Rated MIP Award. Provided that Executive has been employed for not less than six (6) months during the fiscal year during which Executive’s
              Termination Date occurs, payment of a pro-rated MIP Award pursuant to Section 4 (based on the number of days in the fiscal year which have passed divided by 365) based upon accomplishment of the relevant performance targets for the relevant
              fiscal year which includes the Executive’s Termination Date, which MIP Award shall be payable in a lump sum payment at the time all other MIP Awards for such fiscal year are paid to the other Adtalem senior executives;

        

      

      

      

      
        
          (II) Health Continuation. Eighteen (18) months of continued health benefit plan coverage following the Termination Date at active employee levels and
              active employee cost for Executive and Executive’s eligible dependents; such health benefits shall be provided and paid for by the Executive per regular payroll period of Adtalem commencing with the first payroll period following the
              Executive’s termination of employment and continuing until the earlier of (1) the eighteen (18) month anniversary of Executive’s Termination Date, or (2) the date Executive is eligible for equivalent coverage and benefits under the
            plans and programs of a subsequent employer. Medical expenses (as defined in Code Section 213(d)) paid pursuant to this paragraph are intended to be exempt from Code Section 409A to the extent permitted under Treasury Regulation
            §§1.409A-1(b)(9)(v)(B) and -3(i)(1)(iv)(B). However, to the extent any health benefits provided pursuant to this paragraph do not qualify for exemption under Code Section 409A, Adtalem shall provide Executive with a lump sum payment in an
            amount equal to the number of months of coverage to which Executive is entitled times the then applicable premium for the relevant health plan in which Executive participated. Such lump sum amount will be paid during the second month following
            the Termination Date; provided that no payment shall be due if making the payment would violate nondiscrimination rules applicable to health care plans and cause taxation or penalties on other covered individuals or the Company (other than the
            taxation of Executive on the amounts paid); and

        

      

      

      

      
         

          
          

          
            
              	
                      3005 Highland Parkway 

                      

                    	
                      ● 

                      

                    	
                      Downers Grove, IL 

                      

                    	
                      ● 

                      

                    	
                      60515-5799 

                      

                    	
                      ●

                    	
                      T: 630-515-7700 

                      

                    	
                      ●

                    	
                      adtalem.com 

                      

                    

            

                           

            
              
                

            

          

        

      

       
        

        

        

      

      
        
          (III) Outplacement Services. Adtalem shall, at its sole expense, provide the Executive with a nine (9) month senior executive level outplacement program
              the provider of which shall be selected by Adtalem in Adtalem’s sole discretion with such expenses being payable to the outplacement service as soon as administratively practicable but in no event later that the last day of the calendar year
              immediately following the calendar year in which such expense was incurred by the Executive.

        

      

      

      

      
        
          (e) Specified Employee Six Month Delay Requirement. Notwithstanding the provisions of paragraph (d) immediately above, because Adtalem is a “public
              company” within the meaning of Code Section 409A, any amounts payable to the Executive during the first six months and one day following the Termination Date pursuant to paragraph (d) immediately above that constitute “non-qualified deferred
              compensation” that is subject to Code Section 409A (and not eligible for an exemption therefrom) shall be deferred until the date which is the first day of the seventh month following the Termination Date, with the first payment being in an
              amount equal to the total amount to which the Executive would otherwise have been entitled during the period following the Termination Date of employment if the six-month deferral had not been required. Except as otherwise expressly provided
              in paragraph (d) immediately above, all of the Executive’s rights to Base Salary, employee benefits, severance and other compensation hereunder or under any policy or program of Adtalem which accrue or become payable on or after the
              termination of the Employment Period will cease upon such Termination Date other than those expressly required under applicable law.

        

      

      

      

      
        
          (f) No Offset or Mitigation. Except for such monies due and owing Adtalem, if Executive’s employment with Adtalem is terminated for any reason
              (whether pursuant to Section 8 or 9 hereof), Adtalem will have no right of offset, nor will Executive be under any duty or obligation to seek alternative or substitute employment at any time after the effective date of such termination or
              otherwise mitigate any amounts payable by Adtalem to Executive.

        

      

      

      

      
        
          9. Change in Control.

        

      

      

      

      
        
          (a) Obligations of Adtalem upon Executive’s Termination with Good Reason or Adtalem’s Termination of Executive Without Cause During Change in Control Period. In addition to the Accrued Benefits (which
              shall be due regardless of whether the Executive executes the Release and complies with the terms of this Agreement and the Release), if:

        

      

      

      

      
        
          (i) during the Change in Control
              Period, Adtalem terminates the Executive’s employment without Cause (other than for death or Permanent Disability) or the Executive terminates employment for Good Reason, and

        

      

      

      

      
        
          (ii) the Executive executes the
              Release and such Release is not timely revoked by Executive and becomes legally effective within 60 days following the Termination Date; and

        

      

      
        
           

            

          
             

              
              

              
                
                  	
                          3005 Highland Parkway 

                          

                        	
                          ● 

                          

                        	
                          Downers Grove, IL 

                          

                        	
                          ● 

                          

                        	
                          60515-5799 

                          

                        	
                          ●

                        	
                          T: 630-515-7700 

                          

                        	
                          ●

                        	
                          adtalem.com 

                          

                        

                

                               

                
                  
                    

                

              

            

             

        

      

      
        

      

      
        
           

            

          (iii) the Executive complies with
              the terms of this Agreement and the Release,

        

      

       
      
        then the Executive will be entitled to receive:

        

        

        
          
            (A) Base Salary and MIP Award. payment of an amount equal to two (2) times the sum of Executive’s Base Salary (at the rate then in effect; provided
                that if the Executive’s termination is for Good Reason based on a reduction in the Base Salary, then the applicable Base Salary for purposes of this Section 9(a)(iii)(A) shall equal the Base Salary in effect immediately prior to such
                reduction) plus the then applicable MIP Target (provided that if the Executive’s termination is for Good Reason based on a reduction in the Base Salary or MIP Target, then the applicable MIP Target for purposes of this Section 9(a)(iii)(A)
                shall equal the MIP Target in effect immediately prior to such reduction) shall be payable in twenty-four (24) equal monthly payments commencing with the first payroll period following the date the Release becomes legally effective (but, if
                the 60th day following the Termination Date occurs in the year subsequent to the year in which falls the Termination Date and if required for compliance with Code Section 409A, no earlier than the first business day of the subsequent year);
                and

          

        

        

        

        
          
            (B) Other Benefits. Additional Benefits as delineated in Section 8(d)(iii)(B) above except that in subsection (III) the reference to “nine (9)
                month” shall be changed to “twelve (12) months.”

          

        

        

        

        
          
            (b) Obligations of Adtalem upon Executive’s Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Change
                in Control Period, Adtalem shall provide the Executive’s estate or beneficiaries with the Accrued Benefits, and shall have no other severance obligations under this Agreement. The Accrued Benefits shall be paid to the Executive’s estate or
                beneficiary, as applicable, within thirty (30) days following the Termination Date.

          

        

        

        

        
          
            (c) Obligations of Adtalem upon Executive’s Permanent Disability. If the Executive’s employment is terminated by reason of the Executive’s Permanent
                Disability during the Change in Control Period, Adtalem shall provide the Executive with the Accrued Benefits, and shall have no other severance obligations under this Agreement. The Accrued Benefits shall be paid to the Executive within
                thirty (30) days following the Termination Date.

          

        

        

        

        
          
            (d) Obligations of Adtalem upon Executive’s Termination Without Good Reason or Adtalem’s Termination of Executive With Cause During Change in Control Period. If the Executive’s employment is terminated
                for Cause during the Change in Control Period or the Executive resigns during the Change in Control Period without Good Reason, Adtalem shall provide the Executive with the Accrued Benefits, and shall have no other severance obligations
                under this Agreement. In such case, all Accrued Benefits shall be paid to the Executive within thirty (30) days following the Termination Date.

          

        

        
          
            

               

              
              

              
                
                  	
                          3005 Highland Parkway 

                          

                        	
                          ● 

                          

                        	
                          Downers Grove, IL 

                          

                        	
                          ● 

                          

                        	
                          60515-5799 

                          

                        	
                          ●

                        	
                          T: 630-515-7700 

                          

                        	
                          ●

                        	
                          adtalem.com 

                          

                        

                

                               

                
                  
                    

                

              

            

          

        

      

      

      

       

      
        
           

            

          (e) Anticipatory Change in Control. If a Change in Control occurs and if the Executive’s employment with Adtalem was terminated by Adtalem without Cause within
              six (6) months prior to the date such Change in Control occurred, and if it is reasonably demonstrated by the Executive
              that such termination of employment (i) was at the request of a third party who had taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a Change in Control, then
              Executive shall be deemed to have been involuntarily terminated by Adtalem without Cause during the Change in Control Period and shall be eligible to receive the monies and benefits under Section 9(a) rather than Section 8(d) of the
              Agreement, with any additional payments under Section 9(a) being made beginning no earlier than the consummation of the Change in Control (or, if later, the date payments would have begun under Section 9(a)(iii)(A) based on the effectiveness
              of the Release and the effect of Code Section 409A) and with any incremental payments made ratably over the remainder of the 24 month period specified in Section 9(a).

        

      

       

      
        
          (f) Specified Employee Six Month Delay Requirement. Notwithstanding the provisions of paragraph (a) above, to the extent Adtalem or its applicable
              successor is a “public company” within the meaning of Code Section 409A, any amounts payable to the Executive during the first six months and one day following the Termination Date pursuant to paragraph (a) above that constitute
              “non-qualified deferred compensation” that is subject to Code Section 409A (and not eligible for an exemption therefrom) shall be deferred until the date which is the first day of the seventh month following the Termination Date, with the
              first payment being in an amount equal to the total amount to which the Executive would otherwise have been entitled during the period following the Termination Date of employment if the six-month deferral had not been required.

        

      

       

      
        
          10. Confidential Information.

        

      

       

      
        
          (a) The Executive recognizes and
              acknowledges that the continued success of Adtalem and its Affiliates depends upon the use and protection of a large body of confidential and proprietary information and that the Executive will have access to the entire universe of Adtalem’s
              Confidential Information (as defined below in Section 10(b)), as well as certain confidential information of other Persons with which Adtalem and its Affiliates do business, and that such information constitutes valuable, special and unique
              property of Adtalem, its Affiliates and such other Persons.

        

      

       

      
        
          (b) Confidential Information. For purposes of this Agreement, Adtalem’s “Confidential
                  Information” shall include Adtalem and its Affiliates’ trade secrets as defined under Delaware law, as well as any other information or material which is not generally known to the public, and which: (a) is generated, collected
              by or utilized in the operations of Adtalem or its Affiliates’ business and relates to the actual or anticipated business, research or development of Adtalem, its Affiliates or Adtalem and its Affiliates’ actual or prospective Customers; or
              (b) is suggested by or results from any task assigned to the Executive by Adtalem or its Affiliates, or work performed by the Executive for or on behalf of Adtalem or its Affiliates. Confidential Information

              shall not be considered generally known to the public if the Executive or others improperly reveal such information to the public without Adtalem or its Affiliates’ express written consent and/or in violation of an obligation of
              confidentiality owed to Adtalem or its Affiliates. Confidential Information includes, without limitation, the information, observations and data obtained by the Executive while employed by Adtalem concerning the business or affairs of Adtalem
              or its Affiliates, including information concerning acquisition opportunities in or reasonably related to Adtalem or its Affiliates’ business or industry, the identities of and other information (such as databases) relating to the current,
              former or prospective employees, suppliers and Customers of Adtalem or its Affiliates, development, transition and transformation plans, methodologies and methods of doing business, strategic, marketing and expansion plans, financial and
              business plans, financial data, pricing information, employee lists and telephone numbers, locations of sales representatives, new and existing customer or supplier programs and services, customer terms, customer service and integration
              processes, requirements and costs of providing service, support and equipment.

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      

      
        
           

            

          (c) The Executive agrees to use
              Adtalem’s Confidential Information only as necessary and only in connection with the performance of Executive’s duties hereunder. The Executive shall not, without Adtalem’s prior written permission, directly or indirectly, utilize for any
              purpose other than for a legitimate business purpose solely on behalf of Adtalem or its Affiliates, or directly or indirectly, disclose outside of Adtalem or outside of the Affiliates, any of Adtalem’s Confidential Information, as long as
              such matters remain Confidential Information. The restrictions set forth in this paragraph are in addition to and not in lieu of any obligations the Executive may have by law with respect to Adtalem’s Confidential Information, including any
              obligations the Executive may owe under any applicable trade secrets statutes or similar state or federal statutes. This Agreement shall not prevent the Executive from revealing evidence of criminal wrongdoing to law enforcement or prohibit
              the Executive from divulging Adtalem’s Confidential Information by order of court or agency of competent jurisdiction. However, the Executive shall promptly inform Adtalem of any such situations and shall take such reasonable steps to prevent
              disclosure of Adtalem’s Confidential Information until Adtalem or its relevant Affiliates have been informed of such requested disclosure and Adtalem has had an opportunity to respond to the court or agency.

        

      

       

      
        
          (d) The Executive understands that
              Adtalem and its Affiliates will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on
              Adtalem or its Affiliates to maintain the confidentiality of such information and to use it only for certain limited purposes. During the Employment Period and thereafter, and without in any way limiting the foregoing provisions of this
              Section 10, the Executive will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel and consultants of Adtalem and its Affiliates who need to know such information in connection with
              their work for Adtalem or its Affiliates) or use Third Party Information unless expressly authorized by such third party or by the CEO.

           

            

        

      

      
        
           

          

            
            

            
              
                	
                        3005 Highland Parkway 

                        

                      	
                        ● 

                        

                      	
                        Downers Grove, IL 

                        

                      	
                        ● 

                        

                      	
                        60515-5799 

                        

                      	
                        ●

                      	
                        T: 630-515-7700 

                        

                      	
                        ●

                      	
                        adtalem.com 

                        

                      

              

                             

              
                
                  

              

            

          

        

      

      

      

       

      

      

      
        
          (e) During the Employment Period,
              the Executive will not improperly use or disclose any confidential information or trade secrets, if any, of any former employers or any other person or entity to whom the Executive has an obligation of confidentiality, and will not bring onto
              the premises of Adtalem or its Affiliates any unpublished documents or any property belonging to any former employer or any other person or entity to whom the Executive has an obligation of confidentiality unless consented to in writing by
              the former employer or such other person or entity. The Executive will use in the performance of Executive’s duties only information which is (i) generally known and used by persons with training and experience comparable to the Executive’s and which is (x) common knowledge in the industry or (y) otherwise legally in the public domain, (ii) otherwise provided
              or developed by Adtalem or its Affiliates or (iii) in the case of materials, property or information belonging to any former employer or other person or entity to whom the Executive has an obligation of confidentiality, approved for such use
              in writing by such former employer or other person or entity.

        

      

      

      

      
        
          11. Return of Adtalem Property. The Executive acknowledges and agrees that all notes, records, reports, sketches, plans, unpublished memoranda or
              other documents, whether in paper, electronic or other form (and all copies thereof), held by the Executive concerning any information relating to the business of Adtalem or its Affiliates, whether confidential or not, are the property of
              Adtalem and its Affiliates. The Executive will immediately deliver to Adtalem at the termination or expiration of the Employment Period, or at any other time the CEO may request, all equipment, files, property, memoranda, notes, plans,
              records, reports, computer tapes, printouts and software and other documents and data (and all electronic, paper or other copies thereof) belonging to Adtalem or its Affiliates which includes, but is not limited to, any materials that
              contain, embody or relate to the Confidential Information, Work Product or the business of Adtalem or its Affiliates, which Executive may then possess or have under Executive’s control. The Executive will take any and all actions reasonably
              deemed necessary or appropriate by Adtalem or its Affiliates from time to time in its sole discretion to ensure the continued confidentiality and protection of the Confidential Information. The Executive will notify Adtalem and the
              appropriate Affiliates promptly and in writing of any circumstances of which the Executive has knowledge relating to any possession or use of any Confidential Information by any Person other than those authorized by the terms of this
              Agreement.

        

      

       

      
        
          12. Intellectual Property Rights. The Executive acknowledges and agrees that all inventions, technology, processes, innovations, ideas, improvements,
              developments, methods, designs, analyses, trademarks, service marks, and other indicia of origin, writings, audiovisual works, concepts, drawings, reports and all similar, related, or derivative information or works (whether or not patentable
              or subject to copyright), including but not limited to all resulting patent applications, issued patents, copyrights, copyright applications and registrations, and trademark applications and registrations in and to any of the foregoing, along
              with the right to practice, employ, exploit, use, develop, reproduce, copy, distribute copies, publish, license, or create works derivative of any of the foregoing, and the right to choose not to do or permit any of the aforementioned
              actions, which relate to Adtalem or Affiliates’ actual or anticipated Business, research and development or existing or future products or services and which are conceived, developed or made by the Executive while employed by Adtalem
            or an Affiliate (collectively, the “Work Product”) belong to Adtalem. The Executive further acknowledges and agrees that to the extent relevant, this
            Agreement constitutes a “work for hire agreement” under the Copyright Act, and that any copyrightable work (“Creation”) constitutes a “work made for
            hire” under the Copyright Act such that Adtalem is the copyright owner of the Creation. To the extent that any portion of the Creation is held not to be a “work made for hire” under the Copyright Act, the Executive hereby irrevocably assigns to
            Adtalem all right, title and interest in such Creation. All other rights to any new Work Product and all rights to any existing Work Product are also hereby irrevocably conveyed, assigned and transferred to Adtalem pursuant to this Agreement.
            The Executive will promptly disclose and deliver such Work Product to Adtalem and, at Adtalem’s expense, perform all actions reasonably requested by Adtalem (whether during or after the Employment Period) to establish, confirm and protect such
            ownership (including, without limitation, the execution of assignments, copyright registrations, consents, licenses, powers of attorney and other instruments). All Work Product made within six months after termination of the Executive’s
            employment with Adtalem will be presumed to have been conceived during the Executive’s employment with Adtalem, unless the Executive can prove that it was created after such termination.

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      
        
           

          13. Non-Compete, Non-Solicitation.

        

      

       

      
        
          (a) In further consideration of the
              compensation to be paid to the Executive hereunder, the Executive acknowledges that in the course of Executive’s employment with Adtalem, Executive has, and will continue to, become familiar with Adtalem’s Confidential Information, methods of
              doing business, business plans and other valuable proprietary information concerning Adtalem, its Affiliates, and their customers and suppliers and that Executive’s services have been and will be of special, unique and extraordinary value to
              Adtalem and its Affiliates. The Executive agrees that, during the Employment Period and continuing for, as applicable, (i) eighteen (18) months thereafter, regardless of the reason for the termination of Executive’s employment other than under Section 9(a) above or (ii) twenty-four (24) months in the event of a termination under Section 9(a) above (the “Restricted Period”), the Executive will not, directly or indirectly, anywhere in the Restricted Area:

        

      

       

      
        
          (i) own, manage,
              operate, or participate in the ownership, management, operation, or control of, or be employed by, any entity which is in competition with the Business of Adtalem or its Affiliates in which the Executive would hold a position with
              responsibilities that are entirely or substantially similar to any position the Executive held during the last twelve (12) months of the Executive’s employment with Adtalem or in which the Executive would have responsibility for and
            access to confidential information that is similar to or relevant to that which the Executive had access to during the last twelve (12) months of the Executive’s employment with Adtalem; or

        

      

      

      

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

       

      

      
        
           

            

          (ii) provide services to any person
              or entity that engages in any business that is similar to, or competitive with Adtalem or its Affiliates’ Business if doing so would require the Executive to use or disclose Adtalem’s Confidential Information.

        

      

      

      

      Nothing herein will prohibit the Executive from being a passive owner of not more than one percent (1%) of the outstanding stock of any
        class of a corporation which is publicly traded, so long as the Executive has no active participation in the business of such corporation.

      

      

      
        
          (b) During the
              Restricted Period, the Executive will not, directly or indirectly, in any manner: (i) hire or engage, or recruit, solicit or otherwise attempt to employ or retain any individual who is or was an employee of or consultant to Adtalem or its
              Affiliates within the twelve (12) month period immediately preceding the termination of Executive’s employment, (ii) induce or attempt to induce any individual who is or was an employee of, or consultant to, Adtalem or its Affiliates
            within the twelve (12) month period immediately preceding the termination of Executive’s employment, to leave the employ of Adtalem or the relevant Affiliates, or in any way interfere with the relationship between Adtalem, its Affiliates and
            any of their employees or consultants, or (iii) recommend the hiring of, or provide a reference for any individual who was an employee of or consultant to Adtalem or its Affiliates (provided, however that the Executive may hire former employees
            and individual consultants to Adtalem and its Affiliates after such former employees or individual consultants have ceased to be employed or otherwise engaged by Adtalem or its Affiliates for a period of at least twelve (12) months).

        

      

      

      

      
        
          (c) During the
              Restricted Period, the Executive will not, directly or indirectly: (i) call on, solicit or service any Customer with the intent of selling or attempting to sell any service or product similar to, or competitive with, the services or
            products sold by Adtalem or its Affiliates as of the date of the termination of Executive’s employment, or (ii) in any way interfere with the relationship between Adtalem, its Affiliates and any Customer, supplier, licensee or other business
            relation (or any prospective Customer, supplier, licensee or other business relationship) of Adtalem or its Affiliates (including, without limitation, by making any negative or disparaging statements or communications regarding Adtalem, its
            Affiliates or any of their operations, officers, directors or investors). This non-solicitation provision applies to those Customers, suppliers, licensees or other business relationships of Adtalem with whom the Executive: (1) has had contact
            or has solicited at any time in the twelve (12) month period of time preceding the termination of the Executive’s employment; (2) has supervised the services of any of Adtalem’s or Affiliates’ employees who have had any contact with or have
            solicited at any time during the twelve (12) month period of time preceding the termination of Executive’s employment; or (3) has had access to any Confidential Information about such Customers, suppliers, licensees or other business
            relationships at any time during the twelve (12) month period of time preceding the termination of Executive’s employment.

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

           

          

           

        

      

      
        
           

            

          (d) The Executive
              acknowledges and agrees that the restrictions contained in this Section 13 with respect to time, geographical area and scope of activity are reasonable and do not impose a greater restraint than is necessary to protect the goodwill and other
              legitimate business interests of Adtalem and its Affiliates. In particular, the Executive agrees and acknowledges that Adtalem is currently engaging in Business and actively marketing its services and products throughout the Restricted
            Area, that Executive’s duties and responsibilities for Adtalem and/or its Affiliates are co-extensive with the entire scope of Adtalem’s Business, that Adtalem has spent significant time and effort developing and protecting the confidentiality
            of their methods of doing business, technology, customer lists, long term customer relationships and trade secrets and that such methods, technology, customer lists, customer relationships and trade secrets have significant value. However, if,
            at the time of enforcement of this Section 13, a court holds that the duration, geographical area or scope of activity restrictions stated herein are unreasonable under circumstances then existing or impose a greater restraint than is necessary
            to protect the goodwill and other business interests of Adtalem and its Affiliates, the Parties agree that the maximum duration, scope or area reasonable under such circumstances will be substituted for the stated duration, scope or area and
            that the court will be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law, in all cases giving effect to the intent of the parties that the restrictions contained herein be given
            effect to the broadest extent possible. The existence of any claim or cause of action by the Executive against Adtalem, whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by Adtalem of the
            provisions of Sections 10, 11, 12 or this Section 13, which Sections will be enforceable notwithstanding the existence of any breach by Adtalem. Notwithstanding the foregoing, the Executive will not be prohibited from pursuing such claims or
            causes of action against Adtalem. The Executive consents to Adtalem notifying any future employer of the Executive of the Executive’s obligations under Sections 10, 11, 12 and this Section 13 of this Agreement.

        

      

      

      

      
        
          (e) In the event of the breach or a
              threatened breach by the Executive of any of the provisions of Sections 10, 11, 12 or this Section 13, Adtalem, in addition and supplementary to any other rights and remedies existing in its favor, will be entitled to seek specific
              performance and/or injunctive or other equitable relief (in the form of a temporary restraining order, preliminary injunction and/or permanent injunction) from a court of competent jurisdiction in order to enforce or prevent any violations of
              the provisions hereof.

        

      

      

      

      
        
          (f) Upon the Executive’s written
              request, the CEO may, in the CEO’s sole discretion, permit the Executive to engage in certain work or activity that is otherwise prohibited by this Agreement, if and only if the Executive first provides the CEO with written evidence
              satisfactory to the CEO, including assurances from any new employer of the Executive, that the contribution of Executive’s knowledge to that work or activity will not cause the Executive to disclose, base judgment upon, or use Adtalem’s trade
              secrets or other Confidential Information. The Executive shall not engage in such work or activity unless and until the Executive receives written consent from the CEO.

        

      

      

      

      
        
          (g) Neither the
              CEO’s consent under Section 13(f) nor Adtalem’s failure to seek enforcement of any restrictive covenant under this Agreement shall be deemed a consent or waiver by Adtalem of any subsequent breach of this Agreement by the Executive and
              Adtalem shall have the right to seek enforcement of this Agreement against the Executive for any breach not specifically consented to in writing by the CEO or Adtalem.

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      
        
           

           

          
          14. Executive’s Representations. [RESERVED].

        

      

       

      
        
          15. Survival. Any provisions which by its nature is intended to survive and continue in full force in accordance with its terms shall continue
              notwithstanding the termination of the Employment Period.

        

      

       

      
        
          16. Notices. Any notice provided for in this Agreement will be in writing and will be either personally delivered, sent by reputable overnight courier
              service, sent by facsimile (with hard copy to follow by regular mail) or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

        

      

      

      

      	 	
              Notices to the Executive:

            	 
	 	 	 
	 	
              Executive’s Name

            	 
	 	
              At such home address which is on record with Adtalem

            	 
	 	 	 
	 	
              with a copy to (which will not constitute notice to the Executive):

            	 
	 	 	 
	 	
              Junaid Zubairi, Esq.

              Vedder Price, P.C.

            	 
	 	
              222 N. LaSalle Street, Ste. 2600

            	 
	 	
              Chicago, IL 60601

            	 
	 	 	 
	 	
              Notices to Adtalem:

            	 
	 	 	 
	 	
              Adtalem Global Education Inc.

            	 
	 	
              Attn: President and Chief Executive Officer

              3005 Highland Parkway

            	 
	 	
              Downers Grove, IL 60515-5799

            	 
	 	 	 
	 	
              with a copy to (which will not constitute notice to
                    Adtalem):

            	 
	 	 	 
	 	
              Jonathan Rosenfeld, Esq.

              WilmerHale

            	 
	 	
              60 State Street

            	 
	 	Boston, MA 02109 

            	 

      

      or such other address or to the attention of such other person as the recipient Party will have specified by prior written notice to the sending Party. Any
        notice under this Agreement will be deemed to have been given when so delivered, sent or mailed.

      

      

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

       

      

      
        
           

            

           

            

          17. Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable
              law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
              provision or any action in any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

        

      

       

      
        
          18. Complete Agreement. This Agreement embodies the complete agreement and understanding among the Parties and supersedes and preempts any prior
              understandings, agreements or representations by or among the Parties, written or oral, which may have related to the subject matter hereof in any way.

        

      

       

      
        
          19. Counterparts. This Agreement may be executed in separate counterparts (including by facsimile signature pages), each of which is deemed to be an
              original and all of which taken together constitute one and the same agreement.

        

      

       

      
        
          20. No Strict Construction. The parties hereto jointly participated in the negotiation and drafting of this Agreement. The language used in this
              Agreement will be deemed to be the language chosen by the parties hereto to express their collective mutual intent, this Agreement will be construed as if drafted jointly by the parties hereto, and no rule of strict construction will be
              applied against any Person.

        

      

       

      
        
          21. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by the Executive, Adtalem and their
              respective heirs, successors and assigns. The Executive may not assign Executive’s rights or delegate Executive’s duties or obligations hereunder without the prior written consent of Adtalem. Adtalem may not assign its rights and obligations
              hereunder, without the consent of, or notice to, the Executive, with the sole exception being a sale to any Person that acquires all or substantially all of Adtalem whether stock or assets, in which case such consent of the Executive is not
              necessary.

        

      

       

      
        
          22. Choice of Law; Exclusive Venue. THIS AGREEMENT, AND ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
              OF THIS AGREEMENT, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF DELAWARE OR ANY
              OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. SUBJECT TO SECTION 24 OF THIS AGREEMENT, THE PARTIES AGREE THAT ALL LITIGATION ARISING OUT OF OR RELATING TO SECTIONS 10,
              11, 12 OR 13 OF THIS AGREEMENT MUST BE BROUGHT EXCLUSIVELY IN DELAWARE (COLLECTIVELY THE “DESIGNATED COURTS”). EACH PARTY HEREBY CONSENTS AND SUBMITS
              TO THE EXCLUSIVE JURISDICTION OF THE DESIGNATED COURTS. WITH RESPECT TO LITIGATION UNDER SECTIONS 10, 11, 12 OR 13 OF THIS AGREEMENT, EACH PARTY HEREBY IRREVOCABLY WAIVES ALL CLAIMS OR DEFENSES OF LACK OF PERSONAL JURISDICTION OR ANY
            OTHER JURISDICTION DEFENSE, AND ANY OBJECTION WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING IN ANY DESIGNATED COURT, INCLUDING ANY RIGHT TO OBJECT ON THE BASIS THAT ANY DISPUTE, ACTION, SUIT
            OR PROCEEDING BROUGHT IN THE DESIGNATED COURTS HAS BEEN BROUGHT IN AN IMPROPER OR INCONVENIENT FORUM OR VENUE.

           

          

           

            
            

            
              
                	
                        3005 Highland Parkway 

                        

                      	
                        ● 

                        

                      	
                        Downers Grove, IL 

                        

                      	
                        ● 

                        

                      	
                        60515-5799 

                        

                      	
                        ●

                      	
                        T: 630-515-7700 

                        

                      	
                        ●

                      	
                        adtalem.com 

                        

                      

              

                             

              
                
                  

              

            

          

        

      

       

       

      

      

      
        
          23. Dispute Resolution. Notwithstanding anything to the contrary, any and all other disputes, controversies or questions arising under, out of, or
              relating to this Agreement (or the breach thereof), or, the Executive’s employment with Adtalem or termination thereof, other than those disputes relating to Executive’s alleged violations of Sections 10 (Confidential Information), 11
            (return of property), 12 (intellectual property) and 13 (covenants of noncompete and nonsolicitation) of this Agreement, shall be referred for binding arbitration in Chicago, Illinois to a neutral arbitrator (who is licensed to practice law in
            any State within the United States of America) selected by the Executive and Adtalem and this shall be the exclusive and sole means for resolving such dispute. Such arbitration shall be conducted in accordance with the National Rules for
            Resolution of Employment Disputes of the American Arbitration Association. The arbitrator shall have the discretion to award reasonable attorneys’ fees, costs and expenses to the prevailing party. Judgment upon the award rendered by the
            arbitrator may be entered in any court having jurisdiction thereof. This Section 24 does not apply to any action by Adtalem to enforce Sections 10, 11, 12 and 13 of this Agreement and does not in any way restrict Adtalem’s rights under Section
            22 of this Agreement.

        

      

       

      
        
          24. Mutual Waiver of Jury Trial. IN THE EVENT OF LITIGATION AS PERMITTED UNDER SECTION 22 (AND SUBJECT TO SECTION 23) OF THIS AGREEMENT, ADTALEM AND
              THE EXECUTIVE EACH WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY
              OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, AS PERTAINS TO A CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE UNDER SECTIONS 10, 11, 12 OR 13 OF THIS AGREEMENT. ADTALEM AND THE EXECUTIVE EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION
              WILL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
              WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF SECTIONS 10, 11, 12 OR 13 OF THIS AGREEMENT. THIS WAIVER WILL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO SECTIONS 10,
            11, 12 OR 13 OF THIS AGREEMENT.

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      

      
        
           

            

           

            

          25. Indemnification. In addition to any rights to indemnification to which the Executive is entitled under Adtalem’s charter and by-laws, to the
              extent permitted by applicable law, Adtalem will indemnify, from the assets of Adtalem supplemented by insurance in an amount determined by Adtalem, the Executive at all times, during and after the Employment Period, and, to the maximum
              extent permitted by applicable law, shall pay the Executive’s expenses (including reasonable attorneys’ fees and expenses, which shall be paid in advance by Adtalem as incurred, subject to recoupment in accordance with applicable law) in
              connection with any threatened or actual action, suit or proceeding to which the Executive may be made a party, brought by any shareholder of Adtalem directly or derivatively or by any third party by reason of any act or omission or alleged
              act or omission in relation to any affairs of Adtalem or any subsidiary or Affiliate of Adtalem of the Executive as an officer, director or employee of Adtalem or of any subsidiary or Affiliate of Adtalem. Adtalem shall use its best efforts
              to maintain during the Employment Period and thereafter insurance coverage sufficient in the determination of the Board to satisfy any indemnification obligation of Adtalem arising under this Section 25.

        

      

       

      
        
          26. Nondisparagement. Executive agrees that both during the Employment Period and thereafter, the Executive shall not make or publish any statements
              or comments that disparage or injure the reputation or goodwill of Adtalem or any of its affiliates, or any of its or their respective officers or directors, or otherwise make any oral or written statements that a reasonable person would
              expect at the time such statement is made to likely have the effect of diminishing or injuring the reputation or goodwill of Adtalem, or any of its affiliates, or any of its or their respective officers or directors; provided, however,
              nothing herein shall prevent the Executive from providing any information that may be compelled by law. Likewise, Adtalem and its Affiliates, as represented by their respective Directors and Officers, shall not make or publish any statements
              or comments that disparage or injure the reputation of the Executive, or otherwise make any oral or written statements that a reasonable person would expect at the time such statement is made to likely have the effect of diminishing or
              injuring the reputation of the Executive; provided, however, nothing herein shall prevent the Adtalem from providing any information that may be compelled by law.

        

      

       

      
        
          27. Assistance in Proceedings. During the Employment Period and thereafter, subject to reasonably accommodation of the Executive’s other scheduling
              needs, the Executive will reasonably cooperate with Adtalem in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by Adtalem (including, without limitation, the Executive being reasonably
              available to Adtalem upon reasonable notice for interviews and factual investigations, appearing at Adtalem’s reasonable request to give testimony without requiring service of a subpoena or other legal process, volunteering to Adtalem all
              pertinent information and turning over to Adtalem all relevant documents which are or may come into the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s other permitted activities and
              commitments). In the event Adtalem requires the Executive’s cooperation in accordance with this Section 27, Adtalem will pay the Executive a reasonable per diem as determined by the Board and reimburse the Executive for reasonable
            expenses incurred in connection therewith (including lodging and meals, upon submission of receipts).

        

      

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      

      
        
           

            

           

            

          28. Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of Adtalem and the Executive
              or pursuant to Section 17, and no course of conduct or course of dealing or failure or delay by any Party hereto in enforcing or exercising any of the provisions of this Agreement will affect the validity, binding effect or enforceability of
              this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

        

      

       

      
        
          29. Code Section 409A.

        

      

       

      
        
          (a) Notwithstanding anything herein
              to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Code Section 409A or shall comply with the requirements of
              such provision. For purposes of Code Section 409A, all installment payments that may be due hereunder shall be treated as a series of separate payments.

        

      

       

      
        
          (b) After the Termination Date, the
              Executive shall have no duties or responsibilities to Adtalem or its successor that are inconsistent with having a “separation from service” within the meaning of Code Section 409A and, notwithstanding anything in the Agreement to the
              contrary, distributions upon termination of employment of nonqualified deferred compensation may only be made upon a “separation from service” as determined under Code Section 409A and such date shall be the Termination Date for purposes of
              this Agreement. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified deferral of compensation” within the meaning of Code Section 409A
              and to the extent an amount is payable within a time period, the time during which such amount is paid shall be in the discretion of Adtalem.

        

      

       

      
        
          (c) To the extent that any
              reimbursements of expenses or in-kind benefits pursuant to this Agreement are taxable to the Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid to the Executive on or before the last day of
              the Executive’s taxable year following the taxable year in which the related expense was incurred. The Executive agrees to provide prompt notice to Adtalem of any such expenses (and any other documentation that Adtalem may reasonably require
              to substantiate such expenses) in order to facilitate Adtalem’s timely reimbursement of the same. The reimbursements or in-kind benefits described in this Section 29(c) are not subject to liquidation or exchange for another benefit and the
              amount of such reimbursements or in-kind benefits that the Executive receives in one taxable year shall not affect the amount of such reimbursements or benefits that the Executive receives in any other taxable year.

        

      

       

      

      

      *            *            *            *            *

      

      

        

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

      

       

      IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

       

        

       

      	 	ADTALEM GLOBAL EDUCATION INC. 

            
	 	 	 
	 	 	 
	 	By:  

            	  
	 	 	 
	 	Printed: Lisa Wardell 

            
	 	
              Title: Chairman of the Board and President and Chief Executive Officer

            
	 	 	 
	 	 	 
	 	EXECUTIVE 

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Printed: 

            
	 	 	 
	 	Michael O. Randolfi 

            
	 	 	 
	 	Date: 

            
	 	 	 
	 	 	August 23, 2019 

            

      

        

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

       

      

      

      
        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

         

          

         

        	 	ADTALEM GLOBAL EDUCATION INC. 

              
	 	 	 
	 	 	 
	 	By:  

              	

              
	 	 	 
	 	Printed: Lisa Wardell 

              
	 	
                Title: Chairman of the Board and President and Chief Executive Officer

              
	 	 	 
	 	 	 
	 	EXECUTIVE 

              
	 	 	 
	 	 	 
	 	/s/ Michael O. Randolfi  
	 	 	 
	 	Printed: 

              
	 	 	 
	 	Michael O. Randolfi 

              
	 	 	 
	 	Date: 

              
	 	 	 
	 	 	August 23, 2019 

              

        

          

          
          

          
            
              	
                      3005 Highland Parkway 

                      

                    	
                      ● 

                      

                    	
                      Downers Grove, IL 

                      

                    	
                      ● 

                      

                    	
                      60515-5799 

                      

                    	
                      ●

                    	
                      T: 630-515-7700 

                      

                    	
                      ●

                    	
                      adtalem.com 

                      

                    

            

                           

            
              
                

            

          

        

      

      

      

      
        

        APPENDIX I

          

        

        DEFINITIONS

          

        

        “Accrued Benefits” means (a) Base Salary earned through the
          Termination Date; (b) except in the event of a termination by Adtalem with Cause, the balance of any awarded (i.e., the amount and payment of the specific award has been fully approved by the Board) but as yet unpaid, annual cash incentive or
          other incentive awards for any fiscal year prior to the fiscal year during which the Executive’s Termination Date occurs; (c) a payment representing the Executive’s accrued but unused vacation; and (d) anything in this Agreement to the contrary
          notwithstanding, (i) the payment of any vested, but not forfeited, benefits as of the Termination Date under Adtalem’s employee
            benefit plans payable in accordance with the terms of such plans and (ii) the availability of such benefit continuation and conversion rights to which Executive is entitled in accordance with the terms of such plans.

        
           

        

         

        “Affiliates” means any company, directly or
          indirectly, controlled by, controlling or under common control with Adtalem, including, but not limited to, Adtalem’s subsidiary entities, parent, partners, joint ventures, and predecessors, as well as its successors and assigns.

         

        “Base Salary” means the amount specified in
          Section 3(a) of the Agreement, as adjusted from time to time.

         

        “Board” means the Board of Directors of
          Adtalem Global Education Inc.

          

        

        “Business” means (a) the provision of
          educational services to individuals at the secondary through post-secondary levels of education and/or training services to individuals seeking professional certifications or professional education by (i) a market funded institution offering
          degree and non-degree programs (ii) at classroom locations in multiple states and/or through an online curriculum delivery mechanism, and (b) any other business directly engaged in by Adtalem and its Affiliates during the Employment Period.

         

        “Cause” means (i) the commission of a
          felony or other crime involving moral turpitude or the commission of any other act or omission involving misappropriation, dishonesty, fraud, illegal drug use or breach of fiduciary duty, (ii) willful failure to perform duties as reasonably
          directed by the CEO, (iii) the Executive’s gross negligence or willful misconduct with respect to the performance of the Executive’s duties hereunder, (iv) obtaining any personal profit not fully disclosed to and approved by the Board in
          connection with any transaction entered into by, or on behalf of, Adtalem (but excluding the personal accrual of airline miles, credit card points and other similar incidental benefits in the ordinary course), or (v) any other material breach of
          this Agreement or any other agreement between the Executive and Adtalem.

      

       

      “CEO” means the President and Chief Executive
        Officer of Adtalem Global Education Inc.

      

      

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

       

       
      “Change in Control” means such term as
        defined in the Adtalem Global Education Inc. Incentive Plan of 2013.

       

      “Change in Control Period” means the period
        commencing on the date of a Change in Control and ending on the twelve (12) month anniversary of such date.

       

      “Code” means the Internal Revenue Code of
        1986, as amended.

        

      

      “Code of Business Conduct and Ethics” means
        such code as maintained by Adtalem Global Education Inc., as amended from time to time.

       

      “Compensation Committee” means that committee
        of the Board which shall have authority over the compensation (cash and non-cash) of certain aspects of Adtalem, including, but not limited to, all officers and executives of Adtalem, including Adtalem’s Chief Executive Officer, and all option
        grants for any employee, executive, officer, director or consultant of Adtalem.

       

      “Copyright Act” means the United States
        Copyright Act of 1976, as amended.

        

      

      “Customer” means any Person:

       

      
        
          (a) who purchased products or
              services from Adtalem or any of its Affiliates during the twelve (12) month period prior to the date of termination of the Executive’s employment; or

        

      

       

      
        
          (b) to whom Adtalem or any of its
              Affiliates solicited the sale of its products or services during the twelve (12) month period prior to the date of termination of the Executive’s employment.

        

      

       

      “Good Reason” means, without the Executive’s
        consent, (i) material diminution in title, duties, responsibilities or authority; (ii) reduction of Base Salary, MIP Target or employee benefits except for across-the-board changes for executives at the Executive’s level; (iii) exclusion from
        executive benefit/compensation plans; (iv) material breach of the Agreement; (v) requirement to relocate to an employment location more than 50 miles from Executive’s current employment location; or (vi) resignation in compliance with securities,
        corporate governance or other applicable law (such as the US Sarbanes-Oxley Act) as specifically applicable to such Executive, that in the case of each of the foregoing clauses (i) through (vi), Adtalem has not cured within thirty (30) days after
        the Executive has provided Adtalem notice of the relevant event, which notice shall be given within sixty (60) days of the Executive’s knowledge of the occurrence of the relevant event, and the Executive actually resigns within thirty (30) days
        after Adtalem’s failure to timely cure.

       

      “MIP Award” means the amount actually awarded
        Executive under Adtalem’s annual Management Incentive Plan, as in effect from time to time, upon the achievement of specific Adtalem-wide and personal performance goals of the Executive that will be determined each fiscal year by the Executive’s
        direct supervisor and/or the Compensation Committee as necessary and appropriate to comply with Adtalem policy.

       

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.com 

                    

                  

          

                         

          
            
              

          

        

      

      

      

       

       

      

      “MIP Target” means the percentage of
        Executive’s Base Salary established as the target under Adtalem’s Management Incentive Plan as adjusted from time to time.

      

      

      “Permanent Disability” means mental, physical
        or other illness, disease or injury, which has prevented the Executive from substantially performing Executive’s duties hereunder for the greater of: (a) the eligibility waiting period under the Adtalem long term disability program in which he/she
        participates, if any, (b) an aggregate of six (6) months in any twelve (12) month period, or (c) a period of three (3) consecutive months.

      

      

      “Person” means any natural person,
        corporation, general partnership, limited partnership, limited liability company or partnership, proprietorship, other business organization, trust, union, association or governmental or regulatory entities, department, agency or authority.

      

      

      “Release” means the waiver and release
        agreement generally used by Adtalem for executives, as amended from time to time, but which Release does not limit or expand on the Executive’s rights and obligations set forth in this Agreement in a manner that is adverse to the Executive, with
        respect to per termination or post-termination compensation, indemnification, non-disparagement, confidentiality, non-competition, or non-solicitation.

      

      

      “Restricted Area” means (a) throughout the
        world, but if such area is determined by judicial action to be too broad, then it means (b) within North America, but if such area is determined by judicial action to be too broad, then it means (c) within the continental United States, but if such
        area is determined by judicial action to be too broad, then it means (d) within any state in which Adtalem and its Affiliates is engaged in Business.

       

      “Termination Date” means the last day of
        Executive’s employment with Adtalem Global Education Inc.

       

      

       

        
        

        
          
            	
                    3005 Highland Parkway 

                    

                  	
                    ● 

                    

                  	
                    Downers Grove, IL 

                    

                  	
                    ● 

                    

                  	
                    60515-5799 

                    

                  	
                    ●

                  	
                    T: 630-515-7700 

                    

                  	
                    ●

                  	
                    adtalem.comExhibit

Exhibit 4.7
DESCRIPTION OF THE REGISTRANT’S SECURITIES 
REGISTERED PURSUANT TO SECTION 12 OF THE 
SECURITIES EXCHANGE ACT OF 1934

As of August 27, 2019, Axos Financial, Inc. (the “Company”) has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) our common stock and (2) our 6.25% subordinated notes due 2026. 
DESCRIPTION OF COMMON STOCK
We may issue, from time to time, shares of our common stock, the general terms and provisions of which are summarized below. This summary does not purport to be complete and is subject to, and is qualified in its entirety by express reference to, the provisions of our Certificate of Incorporation and Bylaws.
General
We are authorized to issue up to 150,000,000 shares of common stock, par value $0.01 per share. As of August 23, 2019, there were 66,736,295 shares of common stock issued and 61,235,291 shares of common stock outstanding.  Under our Certificate of Incorporation, we have the authority to issue an aggregate of 150,000,000 shares of common stock. We have also previously granted stock options and restricted stock units representing the right to purchase or receive shares of our common stock under our equity incentive plans.
Listing of the Common Stock
The common stock is listed for trading on the New York Stock Exchange under the symbol “AX.” 
Dividends
Subject to preferences that may be applicable to any of the outstanding shares of our preferred stock, and subject to compliance with limitations imposed by law, the holders of our common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
Voting Rights
Each holder of our common stock is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors. Under our certificate of incorporation and bylaws, our stockholders will not have cumulative voting rights. Because of this, the holders of a majority of the shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose.
Liquidation
In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preferences granted to the holders of any outstanding shares of our preferred stock, including our Series A preferred stock and any other series of preferred stock which we may designate in the future.
Rights and Preferences
Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock, including our Series A preferred stock and any series of preferred stock which we may designate in the future.
Fully Paid and Nonassessable
All outstanding shares of our common stock are, fully paid and nonassessable.
Transfer Agent and Registrar
The transfer agent and registrar for the common stock is Computershare Trust Company, N.A. 

Certain Anti-takeover Effects
General. Certain provisions of our Certificate of Incorporation, our Bylaws and the Delaware General Corporation Law (the “DGCL”) could make it more difficult to consummate an acquisition of control of us by means of a tender offer, a proxy fight, open market purchases or otherwise in a transaction not approved by our Board of Directors, regardless of whether our stockholders support the transaction. The summary of the provisions set forth below does not purport to be complete and is qualified in its entirety by reference to our Certificate of Incorporation, our Bylaws and the DGCL.
Business Combinations. Section 203 of the DGCL restricts a wide range of transactions (“business combinations”) between a corporation and an interested stockholder. An “interested stockholder” is, generally, any person who beneficially owns, directly or indirectly, 15% or more of the corporation’s outstanding voting stock. Business combinations are broadly defined to include (i) mergers or consolidations with, (ii) sales or other dispositions of more than 10% of the corporation’s assets to, (iii) certain transactions resulting in the issuance or transfer of any stock of the corporation or any subsidiary to, (iv) certain transactions resulting in an increase in the proportionate share of stock of the corporation or any subsidiary owned by, or (v) receipt of the benefit (other than proportionately as a stockholder) of any loans, advances or other financial benefits by, an interested stockholder. Section 203 provides that an interested stockholder may not engage in a business combination with the corporation for a period of three years from the time of becoming an interested stockholder unless (a) the Board of Directors approved either the business combination or the transaction which resulted in the person becoming an interested stockholder prior to the time that person became an interested stockholder; (b) upon consummation of the transaction which resulted in the person becoming an interested stockholder, that person owned at least 85% of the corporation’s voting stock (excluding, for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, shares owned by persons who are directors and also officers and shares owned by certain employee stock plans); or (c) the business combination is approved by the Board of Directors and authorized by the affirmative vote of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder. 
Advance Notice Provisions. Stockholders seeking to nominate candidates to be elected as directors at an annual meeting or to bring business before an annual meeting must comply with an advance written procedure specified in our Bylaws. Only persons who are nominated by or at the direction of our board, or by a stockholder who has given timely written notice to our Secretary before the meeting to elect directors as specified in our Bylaws, will be eligible for election as directors.
At any stockholders’ meeting the business to be conducted is limited to business brought before the meeting by or at the direction of the board of directors, or a stockholder who has given timely written notice to our Secretary in compliance with the advance written procedure specified in our Bylaws. 
Special Stockholder Meetings.  Under our Bylaws, only our Chairman of the Board, President, or Secretary (upon receipt of a written request of a majority of the directors then in office), may call special meetings of stockholders.  Stockholders do not have the authority to call special meetings of stockholders. 
Additional Authorized Shares of Capital Stock. The additional shares of authorized common stock and preferred stock available for issuance under our Certificate of Incorporation could be issued at such times, under such circumstances and with such terms and conditions as to impede a change in control.
Limitation of Liability; Indemnification
Our Certificate of Incorporation and Bylaws provide that we will indemnify all of our directors and officers to the fullest extent permitted by Delaware law. Our Certificate of Incorporation and Bylaws also authorize us to indemnify our employees and other agents, at our option, to the fullest extent permitted by Delaware law. We have entered into agreements to indemnify our directors and officers, in addition to indemnification provided for in our charter documents. These agreements, among other things, provide for the indemnification of our directors and officers for expenses, including attorneys’ fees, judgments, fines and settlement amounts incurred by any person in any action or proceeding, including any action by or in the right of our company, arising out of that person’s services as a director or officer of our company or any other company or enterprise to which that person provides services at our request to the fullest extent permitted by applicable law. 
Delaware law permits a corporation to provide in its Certificate of Incorporation that a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability for any breach of the director’s duty of loyalty to the corporation or its stockholders, for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law or for any transaction from which the director derived an improper personal benefit. Our Certificate of Incorporation provides for the elimination of personal liability of a director for breach of fiduciary duty to the extent permitted by Delaware law.

The limitation of liability and indemnification provisions in our Certificate of Incorporation and Bylaws may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and our stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions.
We maintain insurance on behalf of our officers and directors, insuring them against liabilities that they may incur in such capacities or arising out of this status.
DESCRIPTION OF 6.25% SUBORDINATED NOTES DUE 2026
The following description of certain material terms of our 6.25% subordinated notes due 2026 (the “Notes”) does not purport to be complete. The following description is subject to, and is qualified in its entirety by reference to, the Subordinated Indenture, dated as of March 3, 2016, between the Company and U.S. Bank National Association, as trustee, the First Supplemental Indenture, dated as of March 3, 2016, between the Company and U.S. Bank National Association, as trustee, and Amendment No.1, dated March 24, 2016, to First Supplemental Indenture, dated as of March 3, 2016, between the Company and U.S. Bank National Association, as trustee (referred to collectively herein as the “indenture”). 
General
We have issued Notes in an aggregate principal amount of $51,000,000.  The Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.  The Notes have a maturity date of February 28, 2026 (or if such day is not a business day, the following business day).  The indenture does not require the maintenance of any financial ratios or specified levels of net worth or liquidity. The Notes do not have a sinking fund.
Interest Rate
Interest on the Notes accrue from and including their initial date of issuance to, but excluding, the maturity date or earlier acceleration or redemption at an annual rate equal to 6.25%, and is payable quarterly in arrears on May 31, August 31, November 30 and February 28 (February 29 in case of a leap year) of each year, beginning on May 31, 2016, to the record holders at the close of business on the preceding May 15, August 15, November 15 and February 15, as applicable (whether or not a business day).
Interest payments include accrued interest from and including the date of original issuance, or, if interest has already been paid, from the last date in respect of which interest has been paid or duly provided for to, but excluding, the next succeeding interest payment date, the maturity date or the redemption date, as the case may be. The amount of interest payable for any interest payment period, including interest payable for any partial interest payment period, will be computed on the basis of a 360-day year comprised of twelve 30-day months. The term "interest payment period" refers to the quarterly period from and including an interest payment date to, but excluding, the next succeeding interest payment date. In the event that any date on which interest is payable on the Notes is not a business day, payment of the interest payable on such date will be made on the next succeeding day that is a business day (and without any interest or other payment in respect of any such delay). Interest not paid on any payment date accrues and compounds quarterly at a rate per year equal to the rate of interest on the Notes until paid. References to "interest" include interest accruing on the Notes and other unpaid amounts and additional interest, as applicable.
"Business day" means any day that is not a Saturday, a Sunday or a day on which banking institutions located in New York, New York and Chicago, Illinois are generally authorized or obligated by law or executive order to be closed.
Ranking
The payment of the principal of and interest on the Notes is expressly subordinated, to the extent and in the manner set forth in the indenture, to the prior payment in full of amount and all existing and future senior debt.  Subject to the qualifications described below, the term senior debt is defined in the indenture to mean all of the Company’s: 
		
	•
	indebtedness for borrowed or purchased money, whether or not evidenced by bonds, debentures, notes, or other written instruments;

		
	•
	obligations under letters of credit;

		
	•
	indebtedness or other obligations with respect to commodity contracts, interest rate and currency swap agreements, cap, floor, and collar agreements, currency spot and forward contracts, and other similar agreements or arrangements designed to protect against fluctuations in currency exchange or interest rates; and

		
	•
	guarantees, endorsements (other than by endorsement of negotiable instruments for collection in the ordinary course of business), and other similar contingent obligations in respect of obligations of others of a type described in the preceding bullets, whether or not classified as a liability on a balance sheet prepared in accordance with accounting principles generally accepted in the United States;

in each case, whether outstanding on the date that we entered into the indenture or arising after that time, and other than obligations ranking on a parity with the Notes or ranking junior to the Notes.
Indebtedness and obligations that rank junior to the Notes under the terms of the indenture would include (i) our junior subordinated debentures underlying our outstanding trust preferred securities, and (ii) any other indebtedness the terms of which provide that such indebtedness ranks junior to the Notes, with respect to which the Notes will rank senior in right of payment and upon liquidation.
All liabilities of the Bank and other subsidiaries, and liabilities arising during our subsidiaries' ordinary course of business, will be effectively senior to the Notes to the extent of the assets of such subsidiaries, as we are a holding company. Because the Company is a savings and loan holding company, over the term of the Notes it may need to rely primarily on dividends from Axos Bank (the “Bank”), which is a regulated financial institution, to pay interest and principal on its outstanding debt obligations and to make dividends and other payments on its other securities. Regulatory rules may restrict our ability to withdraw capital from the Bank by dividends or other means. 
In the event of any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment of debt, composition, or other similar proceeding relating to the Company or its property; any proceeding for the liquidation, dissolution, or other winding up of the Company, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy proceedings; or any assignment by the Company for the benefit of creditors, all of our obligations to holders of our senior debt will be entitled to be paid in full before any payment or distribution, whether in cash, securities or other property, can be made on account of the principal of or interest on the Notes. Only after payment in full of all amounts owing with respect to any senior debt will the holders of the Notes, together with the holders of any of our obligations ranking on a parity with the Notes, be entitled to be paid from our remaining assets the amounts due and owing on account of unpaid principal of and interest on the Notes.
In the event and during the continuation of any default in the payment of the principal of or any premium or interest on any senior debt beyond any applicable grace period with respect to such senior debt, or in the event that any event of default with respect to any senior debt shall have occurred and be continuing permitting the holders of such senior debt (or the trustee on behalf of the holders of such senior debt) to declare such senior debt due and payable prior to the date on which it would otherwise have become due and payable, unless and until such event of default shall have been cured or waived or shall have ceased to exist and such acceleration shall have been rescinded or annulled, or in the event any judicial proceeding shall be pending with respect to any such default in payment or event of default, then no payment shall be made by the Company on account of the principal of or interest on the Notes or on account of the purchase or other acquisition of any Notes.
By reason of the above subordination in favor of the holders of our senior debt, in the event of our bankruptcy or insolvency, holders of our senior debt may receive more, ratably, and holders of the Notes may receive less, ratably, than our other creditors.
The Notes do not limit our or our subsidiaries' ability to incur additional debt, including debt that ranks senior or pari passu in right of payment and upon our liquidation to the Notes. The Notes will be effectively subordinated to all of the existing and future indebtedness and other liabilities of our subsidiaries, including the Bank. 
Optional Redemption
The Company may redeem the Notes in $25 increments in whole at any time or in part from time to time on or after March 31, 2021, which date may be extended at the Company's discretion, at a redemption price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the Notes are not redeemed in whole, at least $10 million aggregate principal amount of the Notes must remain outstanding after giving effect to such redemption. In addition, we may not redeem the Notes in part if the principal amount has been accelerated and such acceleration has not been rescinded or unless all accrued and unpaid interest has been paid in full on all outstanding Notes for all interest payment periods terminating on or before the redemption date. The Notes may not otherwise be redeemed prior to maturity, except that we may also, at our option, redeem the Notes before the maturity date in whole, at any time, or in part from time to time, upon the occurrence of:
		
	•
	a “Tax Event” defined in the First Supplemental Indenture to mean the receipt by us of an opinion of independent tax counsel to the effect that an amendment to, or change (including any announced prospective change) in, the laws or any regulations of the United States or any political subdivision or taxing authority, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, which change or amendment 

becomes effective or which pronouncement or decision is announced on or after the date of the issuance of the Notes, resulting in more than an insubstantial risk that the interest payable on the Notes is not, or within 90 days of receipt of such opinion of tax counsel, will not be, deductible by us, in whole or in part, for U.S. federal income tax purposes;
		
	•
	a “Tier 2 Capital Event” defined in the First Supplemental Indenture to mean the receipt by us of an opinion of independent bank regulatory counsel to the effect that, as a result of (a) any amendment to, or change (including any announced prospective change) in, the laws or any regulations thereunder of the United States or any rules, guidelines or policies of an applicable regulatory authority for the Company or (b) any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which pronouncement or decision is announced on or after the date of original issuance of the Notes, the Subordinated Notes do not constitute, or within 90 days of the date of such opinion will not constitute, Tier 2 Capital (or its then equivalent if we were subject to such capital requirement) for purposes of capital adequacy guidelines of the Board of Governors of the Federal Reserve (or any successor regulatory authority with jurisdiction over savings and loan holding companies), as then in effect and applicable to us that would preclude the Notes from being included as Tier 2 Capital; or

		
	•
	the Company is required to register as an investment company pursuant to the Investment Company Act of 1940.

Under the Federal Reserve Board’s (“FRB”) current risk-based capital guidelines applicable to savings and loan holding companies, any redemption of the Notes will be subject to prior approval of the FRB.
Redemption Procedures
If we give a notice of redemption in respect of any Notes, then prior to the redemption date, we will irrevocably deposit with the trustee or a paying agent for the Notes funds sufficient to pay the applicable redemption price of, and (unless the redemption date is an interest payment date) accrued interest on, the Notes to be redeemed. Notwithstanding the foregoing, interest payable on or prior to the redemption date for any Notes called for redemption will be payable to the holders of the Notes on the relevant record dates for the related interest payment dates.
Once notice of redemption has been given in accordance with the terms of the indenture and funds deposited as required, then upon the date of the deposit, all rights of the holders of the Notes so called for redemption will cease, except the right of the holders of the Notes to receive the redemption price and any interest payable in respect of the Notes on or prior to the redemption date and the Notes will cease to be outstanding on the redemption date. In the event that the Company defaults in the payment of the redemption price in respect of Notes called for redemption, interest on the Notes will continue to accrue at the then applicable rate from the redemption date originally established by us for the Notes to the date the redemption price is actually paid.
Subject to applicable law (including, without limitation, U.S. federal securities law), we or our subsidiaries may at any time and from time to time purchase outstanding Notes by tender, in the open market or by private agreement.
If less than all of the Notes are to be redeemed, the particular Notes to be redeemed will be selected not more than 45 days prior to the redemption date by the trustee, from the outstanding Notes not previously called for redemption, by such method as the trustee in its sole discretion deems fair and appropriate and which may provide for the selection for redemption of portions of the principal amount of any Notes, provided that the unredeemed portion of the principal amount of any Notes shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Notes. The trustee will promptly notify us in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the principal amount thereof to be redeemed.
Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of Notes to be redeemed at its registered address. Unless we default in payment of the redemption price on the Notes, on and after the redemption date, interest will cease to accrue on the Notes or portions called for redemption.
Denominations
The Notes are issued only in denominations of $25 each and integral multiples of $25 in excess thereof. The Notes are held in book-entry form only, in the name of The Depository Trust Company or its nominee.

Events of Default; Limitations on Suits
Under the indenture, an event of default will occur with respect to the Notes only upon the occurrence of any one of the following events:
		
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	the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect, and the decree or order continues unstayed and in effect for a period of 60 consecutive days;

		
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	the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect, or the consent by the Company to the entry of a decree or order for relief in an involuntary case under any such law; or

		
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	in the event a receiver, conservator or similar official is appointed for the Company's principal banking subsidiary (currently, the Bank).

If an event of default occurs, the outstanding principal amount and all accrued but unpaid interest on the Notes will become due and payable immediately. The foregoing provision would, in the event of the bankruptcy or insolvency involving the Company, be subject as to enforcement to the broad equity powers of a federal bankruptcy court and to the determination by that court of the nature and status of the payment claims of the holders of the Notes. Subject to certain conditions, but before a judgment or decree for payment of the money due has been obtained, an acceleration may be annulled by the holders of a majority in principal amount of the outstanding Notes.
There is no automatic acceleration or right of acceleration in the case of a default in the payment of principal of or interest on the Notes or in our non-performance of any other obligation under the Notes or the indenture. If we default in our obligation to pay any interest on the Notes when due and payable and such default continues for a period of 30 days, or if we default in our obligation to pay the principal amount due upon maturity, or if we breach any covenant or agreement contained in the indenture, then the trustee may, subject to certain limitations and conditions, seek to enforce its rights and the rights of the holders of Notes of the performance of any covenant or agreement in the indenture.
The indenture provides that, subject to the duty of the trustee upon the occurrence of an event of default to act with the required standard of care, the trustee will be under no obligation to exercise any of its rights or powers under the indenture at the request or direction of any of the holders of Notes unless such holders shall have offered to the trustee reasonable indemnity or security against the costs, expenses and liabilities which may be incurred by it in complying with such request or direction. Subject to certain provisions, the holders of a majority in principal amount of the outstanding Notes will have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the trustee with respect to the Notes.
No holder of Notes will have any right to institute any proceeding, judicial or otherwise, with respect to the indenture, or for the appointment of a receiver or trustee, or for any other remedy under the indenture, unless:
		
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	such holder has previously given written notice to the trustee of a continuing event of default with respect to the Notes;

		
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	the holders of not less than 25% in principal amount of the Notes shall have made written request to the trustee to institute proceedings in respect of such event of default in its own name as trustee under the indenture;

		
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	such holder or holders have offered to the trustee reasonable indemnity against the costs, expenses, and liabilities to be incurred in complying with such request;

		
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	the trustee for 60 days after its receipt of such notice, request, and offer of indemnity has failed to institute any such proceeding; and

		
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	no direction inconsistent with such written request has been given to the trustee during such 60 day-period by the holders of a majority in principal amount of the outstanding Notes.

In any event, the indenture provides that no such holder or holders shall have any right under the indenture to affect, disturb or prejudice the rights of any other holder, or to obtain priority or preference over any of the other holders or to enforce any right under the indenture, except in the manner provided in the indenture and for the equal and ratable benefit of all holders of Notes.

Satisfaction, Discharge and Defeasance
So long as no event of default has occurred and is continuing, we may elect to discharge certain of our obligations under the indenture with respect to the Notes on the terms and subject to the conditions precedent contained in the indenture (referred to as a “Defeasance”) by:
		
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	irrevocably depositing with the trustee, as trust funds in trust, money or U.S. government obligations (generally, securities that are obligations of or guaranteed by the United States of America), or a combination of money and U.S. government obligations, in each case sufficient, without reinvestment, in the opinion of a nationally recognized firm of independent public accountants, to pay and discharge the principal of and interest on the Notes on the date on which the principal becomes due and payable in accordance with the terms of the Notes or the indenture, whether at the stated maturity date, or by declaration of acceleration, call for redemption, or otherwise; and

		
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	satisfying certain other conditions precedent specified in the indenture, including, among other things, the delivery of an opinion of counsel that the holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the Defeasance and will be subject to federal income tax in the same amounts, in the same manner, and at the same times as would have been the case if the Defeasance had not occurred.

A Defeasance will not relieve the Company of our obligation to pay when due the principal of and interest on the Notes if the Notes are not paid from the money or U.S. government obligations held in trust by the trustee for payment thereof.
Modification and Waiver
The indenture provides that we and the trustee may modify or amend the indenture with or, in certain cases, without the consent of the holders of a majority in principal amount of outstanding Notes; provided, however, that with respect to the Notes, any modification or amendment may not, without the consent of the holder of each outstanding Note affected thereby:
		
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	change the stated maturity of the principal of, or any installment of interest on, any Note;

		
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	reduce the principal amount or rate of interest of any Note;

		
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	the place of payment where any Note or any interest is payable;

		
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	impair the right to institute suit for the enforcement of any payment on or after its stated maturity;

		
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	modify the provisions of the indenture with respect to the subordination of the Notes in a manner adverse to the holders of the Notes; or

		
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	reduce the percentage in principal amount of the outstanding Notes the consent of whose holders is required for any supplemental indenture, or the consent of whose holders is required for any waiver of compliance with the provisions of or defaults under the indenture and the consequences thereof under the indenture.

In addition, the holders of not less than a majority in aggregate principal amount of the outstanding Notes may, on behalf of all holders of Notes, waive compliance by us with certain terms, conditions and provisions of the indenture, as well as any past default and/or the consequences of default, other than any default in the payment of principal or interest or any breach in respect of a covenant or provision that cannot be modified or amended without the consent of the holder of each outstanding Note.
Consolidation, Merger or Sale of Assets
The indenture provides that we may not consolidate with or merge into any other person or convey, transfer or lease our assets substantially as an entirety to any person, and we may not permit any other person to consolidate with or merge into us or to convey, transfer or lease its assets substantially as an entirety to us, unless:
		
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	if we consolidate with or merge into any other person or convey, transfer or lease our assets substantially as an entirety to any other person, the person formed by such consolidation or into which we merge, or the person that acquires our assets, is a corporation organized and validly existing under the laws of the United States of America, any of its states or the District of Columbia, which person must expressly assume, by a supplemental indenture, the due and punctual payment of the principal of and interest on the Notes and the performance or observance of our covenants under the indenture;

		
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	immediately after giving effect to such transaction and treating any indebtedness that becomes an obligation of us or our subsidiaries as a result of such transaction as having been incurred by us or such subsidiary at the time of 

such transaction, no event of default under the indenture, and no event which, after notice or lapse of time or both, would become an event of default, shall have happened and be continuing; and
		
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	we have complied with our obligations to deliver certain documentation to the trustee.

Governing Law
The indenture and the Notes are governed by, and construed in accordance with, the laws of the State of New York without regard to the principles of conflict of laws.
Listing of the Notes 
The Notes are listed for trading on the New York Stock Exchange under the symbol “AXO.” 
Book-Entry System-The Depository Trust Company
The Notes are represented by one or more fully registered global certificates, each of which we refer to as a global security. Each such global security is deposited with, or on behalf of, The Depository Trust Company ("DTC") and registered in the name of DTC or a nominee thereof. Initial settlement for the Notes will be made in same day funds. Secondary market trading between DTC participants will occur in the ordinary way in accordance with DTC's rules. Unless and until it is exchanged in whole or in part for Notes in definitive form, no global security may be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor of DTC or a nominee of such successor.
Beneficial interests in the Notes are represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC.
So long as DTC, or its nominee, is a registered owner of a Note, DTC or its nominee, as the case may be, are considered the sole owner or holder of the Notes represented by such Note for all purposes under the indenture. Except as provided below, the actual owners of the Notes represented by a Note (the "beneficial owner") will not be entitled to have the Notes represented by such Note registered in their names, will not receive or be entitled to receive physical delivery of the Notes in definitive form and will not be considered the owners or holders thereof under the indenture.
Accordingly, each person owning a beneficial interest in a Note must rely on the procedures of DTC and, if such person is not a participant of DTC (a "participant"), on the procedures of the participant through which such person owns its interest, to exercise any rights of a holder under the indenture. We understand that under existing industry practices, in the event that the Company requests any action of holders of the Notes or that an owner of a beneficial interest is entitled to give or take under the indenture, DTC would authorize the participants holding the relevant beneficial interests to give or take such action, and such participants would authorize beneficial owners owning through such participants to give or take such action or would otherwise act upon the instructions of beneficial owners. Conveyance of notices and other communications by DTC to participants, by participants to indirect participants, as defined below, and by participants and indirect participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
About the Trustee
U.S. Bank National Association is the trustee under the indenture and is the principal paying agent and registrar for the Notes. We have entered, and from time to time may continue to enter, into banking, lending or other relationships with U.S. Bank or its affiliates.
The trustee under the indenture may resign or be removed with respect to one or more series of debt securities under the indenture and a successor trustee may be appointed to act with respec

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