Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 
 I. 
 PARTIES: 

The parties to this agreement are National American University, hereinafter called “NAU,” a Division of Dlorah, Inc., a South
Dakota corporation and a wholly owned subsidiary of National American University Holdings, Inc., doing business as National American University, having its principal place of business in Rapid City, South Dakota, and Dr. Ronald Shape, of Rapid
City, South Dakota, the designated Chief Executive Officer of National American University, hereinafter called “CEO.” 

II. 

PURPOSE: 
 The
parties understand that NAU operates National American University at Rapid City, South Dakota, with branches at 36 locations in 12 states as of the date of this agreement. The CEO has been employed by NAU as its CEO since April, 2009. The purpose of
this agreement is to acknowledge the terms and conditions of an Employment Agreement by and between the parties for the employment of the CEO. 
 III. 
 TERM AND WAIVER OF STATUTORY PROTECTION: 

The parties agree that the term of the agreement commenced June 1, 2012 and shall continue until terminated by either pursuant to
Article XII hereof. 
 The parties understand that Section 60-2-6 of the South Dakota Codified Laws provides that a
contract to render personal services cannot be enforced against the CEO beyond the term of two (2) years from the commencement of service under it. In consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, each party does hereby waive any protection given to that party by said statute and agrees that this agreement may be enforced as if said statute did not exist. 

IV. 

DUTIES: 
 The
parties agree that the CEO shall have charge of administration of NAU under the policies adopted by the Board of Governors of National American University (the “Board”) and the President. The CEO agrees that he will, at all times during
the term of this agreement, faithfully and industriously, with the best use of his experience, ability, education, and talent, perform all of the duties required pursuant to the terms of this agreement and all duties required by directives of the
Board and the President and that he will act in accordance with all official policies adopted by the Board and Dlorah, Inc., heretofore or hereafter, including those presented in the policy manuals of NAU. 

The CEO agrees to devote his entire time, attention and energy to the administration of NAU and shall not, during the term of this
agreement, engage in any other business or professional activity, whether for profit or compensation or not, without the prior written permission of the President and the Chairman of the Board. This paragraph shall not be construed to prevent the
CEO from investing his financial assets in such form or manner as will not require any services on the part of the CEO in the operation of the affairs of the companies in which such investments are made, subject to the provisions of Article X.

 The duties of the CEO shall include those set forth in the policies of NAU, including the following: 

 

	 	A.	Provide day-to-day leadership and management to NAU’s operations and financial operations consistent with the mission, goals and core values of the institution and
with the policies of the Higher Learning Commission and other accrediting bodies. 

  

	 	B.	Be responsible for driving NAU to achieve financial and educational goals and objectives. 

 

	 	C.	Advise the President and the Board on strategic business development and key corporate planning issues. Keep the President, and the Board informed about business
activities, potential threats, opportunities and recommended actions. 

	 	D.	Be responsible for the measurement and effectiveness of all processes, internal and external. Provide timely, accurate and complete reports on the operating condition
of the organization. 

  

	 	E.	Spearhead the development, communication and implementation of effective growth strategies and processes. 

 

	 	F.	Supervise the management team, including developing and implementing plans for the operational infrastructure of systems, processes and personnel designed to
accommodate the growth objectives of NAU. 

  

	 	G.	Motivate, coordinate and supervise a high performance management team; attract, recruit, and retain required members of the executive team not currently in place and
provide mentoring as a cornerstone to the management career development program. 

  

	 	H.	Require that managers evaluate and take actions that are consistent with NAU’s overall strategy which will lead to high performance. 

 

	 	I.	Assist as required in raising additional capital at appropriate valuations and times to enable NAU to meet its objectives. 

 

	 	J.	Foster a success-oriented accountable environment within the institution. 

  

	 	K.	Represent NAU, as needed, with clients, investors and business partners. 

  

	 	L.	Set performance goals which are tailored to each division. 

  

	 	M.	Employ management techniques to ensure quality education. 

  

	 	N.	Oversee the recruitment and selection of management personnel. 

  

	 	O.	Oversee periodic evaluation of NAU programs and personnel. 

  

	 	P.	Oversee planning of annual academic, student services, and branch campus budgets. 

 

	 	Q.	Articulate programs with other institutions and agencies. 

  

	 	R.	Maintain high standards of employment and staff development for all personnel. 

 

	 	S.	Advise the President, and the Board on issues, policies, procedures and guidelines pertaining to academic student services, branches and admissions and marketing
services. 

  

	 	T.	Represent NAU at appropriate professional meetings and conferences. 

  

	 	U.	Organize and operate NAU in accordance with the policies, procedures and regulations established by the Board. 

 

	 	V.	Call and preside over meetings for purposes of interpreting and implementing NAU policy. 

 

	 	W.	Provide leadership and overall supervision for the sufficient operation of the academic programs, plant and other enterprises. 

 

	 	X.	Provide leadership and overall supervision for the promotion, financing and development of every facet of NAU keeping within its mission. 

 

	 	Y.	Participate in meetings, programs and committees that may require special insight and understanding that can best be provided by CEO. 

 

	 	Z.	Perform other duties in support of the mission of NAU as assigned by the Board and President. 

NAU reserves the right to alter the job description and duties in order to meet the needs and goals of NAU from time to time providing
CEO reasonable notice and opportunity for input in such changes. 
 V. 

CONSULTATION: 
 The
CEO shall not perform consultation with other organizations except upon prior approval of the President. Any time spent in consultation with others will be charged against the CEO’s vacation allowance in the year in which the consulting was
performed. The CEO agrees to seek and obtain approval from the President for any such consulting. The parties agree that no consulting shall be provided to competing entities or businesses during the term of this agreement and any extension thereof.

 VI. 
 COMPENSATION: 
 The parties acknowledge that effective June 1,
2012, NAU shall pay the CEO a base salary of $427,500.00 per calendar year, earned on a pro rata basis, which shall be paid as follows: $327,500.00 in cash or current funds and $100,000.00 in equity in the Corporation, the same to be distributed and
paid as earned on a pro rata basis as follows: 
  

	 	1.	Cash payments according to the NAU regular payroll practices; 

  

	 	2.	Transfer of stock or other equity in the Corporation under the Corporation’s 2009 Stock Option and Compensation Plan to the CEO monthly within 30 days of the end
of each month (or such later date required to comply with applicable laws and regulations as to stock transfer), the number of shares equivalent to the pro rata portion earned as determined by the stock value at market price at close on the last
trading day of the month for which it is paid. 

 For the initial term of this contract, the equity
portion of compensation shall be prorated to begin September 1, 2012, i.e. actual compensation for year ending May 31, 2013 shall be $352,500.00 in cash or current funds and $75,000.00 in equity. 

The base salary is payment for all services rendered by the CEO under this agreement except as otherwise provided in this Article VI.

 The parties agree that the compensation may be increased or decreased as follows: 

 

	 	A.	Commencing with NAU’s fiscal year beginning June 1, 2013 and for each of NAU’s fiscal years thereafter during the term of this agreement, the CEO’s
base annualized salary shall be increased or decreased by the appropriate percentage increase or decrease (as the case may be) in the Consumer Price Index - US City Average - All Urban Consumers published by the Bureau of Labor Statistics of the
United States Department of Labor in said index for the previous March (i.e., for example, March 2012) and March of the current year (i.e., for example, March 2013). The parties agree that, if for any reason, said index is not published at such
time, they will use another index of changes in the cost of living regularly published and generally considered reliable. 

  

	 	B.	The parties agree that if the CEO is employed and has been continuously employed by NAU through the last day of a fiscal year, the CEO shall be entitled to receive
“Annual Incentive Pay” for such fiscal year. Annual Incentive Pay will be determined and paid according to the guidelines set forth on Exhibit A (attached to this agreement and by this reference incorporated herein.) Annual Incentive Pay,
when distributed to the CEO shall be paid 75% in cash and 25% in stock or other equity in the Corporation under the Corporation’s 2009 Stock Option and Compensation Plan. The stock or other equity shall be valued as of the close of business on
the last trading day of the fiscal year of the Corporation and the value thus obtained shall be utilized in determining the number of shares or other equity required to pay the Annual Incentive Pay equity compensation. All Annual Incentive Pay
earned under this Paragraph VI.B. shall be paid no later than March 15 following the last day of the fiscal year for which the Annual Incentive Pay is payable. Notwithstanding any other provision in this agreement to the contrary, all Incentive
Pay is intended to be exempt from Code Section 409A under the short-term deferral exception and under all circumstances shall be paid within the period described in Treas. Reg. 1.409A-1(b)(4). 

VII. 

PERQUISITES: 
 The
parties agree that the CEO shall receive the following perquisites during the term of this agreement: 
  

	 	A.	Holidays observed by the administration of NAU. 

  

	 	B.	Five (5) weeks of vacation each academic year - June 1 through May 31. 

 

	 	C.	Sick leave equivalent to that given to administrative personnel of NAU. 

  

	 	D.	Reimbursement of authorized travel expenses. 

  

	 	E.	Other benefits as provided by the NAU Employee Handbook. 

 VIII. 
 RESIDENCY REQUIREMENT: 
 The CEO agrees to reside within such
proximity to the city limits of Rapid City, South Dakota, as will enable him to attend to his duties at the administrative offices of NAU in Rapid City, South Dakota, on a daily basis. 

IX. 
 WORKING
FACILITIES: 
 NAU agrees to furnish the CEO with an office, stenographic help, and such other facilities and services as
are suitable to his position and adequate for the performance of his duties as provided in Article IV. 
 X. 

EXCLUSIVE EMPLOYMENT/CONFIDENTIAL INFORMATION: 
 The CEO agrees to spend his full working time during the term of this agreement in performance of his duties with NAU and will abide by all policies and decisions made by the Board as well as all
applicable federal, state and local laws, regulations or ordinances. The CEO will act in the best interest of NAU at all times and will not, during the term hereof, without prior written approval of the President and the Board, engage in, become an
employee, director, officer, agent, partner of, or consultant to or stockholder of (except a stockholder of a public company in which he owns less than 2% of the issued and outstanding capital stock of such company) or render services to any company
or other business entity which is a competitor or significant supplier or customer of NAU or engage in any other activities that would interfere with the performance of his duties as CEO of NAU or would create an actual or perceived conflict of
interest with respect to his obligations as CEO. 
 The CEO agrees to not directly or indirectly use or disclose any
confidential information of NAU for the benefit of anyone other than NAU during the course of employment or after the termination of employment regardless of the reason for such termination. For the purposes of this agreement, “confidential
information” shall mean any information about or related to NAU or any affiliated entity, or any of their employees, contractors, directors, representatives, suppliers, vendors, members, customers, students or other third parties or entities
with whom NAU or the affiliates do business which CEO learns of or develops during the time he is employed with NAU that derives independent economic value from being not generally known or readily ascertainable by other persons who could obtain
economic value from its disclosure or use including, but not limited to, trade secrets, inventions, financial information, personnel information and information relating to such matters as existing or contemplated products, services, profit margins,
fee schedules, pricing, business processes, business plans, sales techniques, marketing techniques, training manuals and materials, policies or practices related to business personnel or other matters, computer databases, computer programs, software
and other technology, customer lists, member lists, student lists, and preferences or requirements or information related to any of the same. 
 The CEO recognizes that the confidential information constitutes a valuable asset of NAU and agrees to act in such a manner as to prevent its disclosure and use by any person unless for the benefit of
NAU. 
 XI. 

RETURN OF CONFIDENTIAL INFORMATION AND NAU’S PROPERTY: 
 The CEO agrees that upon termination of his employment, regardless of the reason for such termination, he will promptly turn over to NAU, in good condition, all property of NAU or the affiliates in his
possession or control including, but not limited to, all originals, copies of, or electronically stored documents or other materials containing confidential information regardless of who prepared them. In the case of electronically stored
information retained by the CEO outside of NAU’s electronic systems, the CEO will promptly make a hard copy of such information in paper, audio recording, disc format or other format as appropriate, turn that hard copy over to NAU and then
destroy his electronically stored information. Further, the CEO agrees to execute written confirmation that all confidential information in his possession or to which he has access, has been turned over to NAU or destroyed at the time of his
termination. 
 XII. 
 TERMINATION: 
 The parties agree that this agreement may be
terminated in any of the following manners: 
  

	 	A.	Mutual written agreement of the parties, in which case any compensation payable to the CEO shall be defined in said agreement. 

	 	B.	Resignation by the CEO upon at least twenty-four calendar months written notice, in which case the CEO shall not be entitled to any further compensation after said
twenty-four month period (the “Notice Period”), except Annual Incentive Pay earned under Article VI.B., but not yet paid. Such Annual Incentive Pay shall be paid in accordance with Article VI.B. or in a lump sum at the election of NAU. CEO
shall be obligated to provide services to NAU during Notice Period to the extent requested by the Board. If CEO is terminated without cause during the Notice Period, CEO shall be entitled to payment for the remainder of the Notice Period pursuant to
this Paragraph B but shall not be entitled to any payments under Paragraph F below. 

  

	 	C.	Mental or physical incapacity of the CEO to an extent that he is unable to fully perform the essential duties described in Article IV, hereof. In the event the CEO
becomes disabled due to accident, illness, or mental or physical incapacity, or for any other reason becomes incapable of performing the requirements of this Agreement, after being provided with any reasonable accommodation that NAU may be obligated
by law to provide, NAU shall have the right to terminate this Agreement, and all obligations of NAU shall cease upon such termination other than as provided in this Paragraph C of this Article XII. NAU has the right, in its sole discretion acting
through the Board, to request the opinion of a qualified medical provider to assist NAU in determining whether the CEO is disabled and CEO agrees to cooperate in such assessment. If NAU elects to terminate this Agreement due to CEO’s
disability, then NAU agrees to pay him his then current base salary (as determined under Article VI A hereof), payable monthly for a period of twelve months. In addition, NAU agrees to pay him his prorated share, if any, of the Annual Incentive Pay
determined for the year of disability under Article VI.B., said proration to be based upon the number of days in the year of disability prior to the date of termination and said compensation to be paid to him at the same time as it would have been
paid if the provisions of this Paragraph C did not operate. Such payments shall not include the perquisites described in Article VII hereof. CEO shall only be entitled to receive the payments provided for in this paragraph if CEO signs and does not
rescind a severance agreement at the time of termination in a form prepared by and acceptable to the Board that includes the provisions described in Paragraph F below. Payment of the monthly disability payments shall commence in the month following
the expiration of any applicable rescission period, but no later than 75 days following CEO’s termination of employment. 

  

	 	D.	Death of the CEO. If the CEO dies during the term of this agreement, then this agreement shall immediately terminate, but the company shall pay to CEO’s estate the
base salary that would otherwise be payable to the CEO for a period of twelve months following the month in which the death occurs. The CEO’s estate will continue to receive the remaining installments due under any Annual Incentive Pay
previously accrued but not paid. In addition, NAU agrees to pay to the CEO’s estate his prorated share, if any, of Annual Incentive Pay determined for the year in which the death occurred as provided for under Article VI, said proration to be
based upon the number of days in the year of death prior to the date of said death and said compensation to be paid at the same time as it would have been paid if the provisions of this paragraph as to death of CEO did not operate.

  

	 	E.	The parties agree that the CEO may be discharged for cause, (without further compensation), including but not limited to dishonesty, willful misconduct, refusal or
unwillingness to perform the duties and responsibilities of the office of CEO satisfactorily in good faith and to the best of his ability, insubordination, prolonged absence from duty without the consent of the Board, any conduct which is in
violation of the criminal statutes of South Dakota or a federal law, or which involves moral turpitude, or the CEO’s material breach of this agreement and failure to cure after reasonable notice. Discharge for cause may only be made upon a vote
of the majority of the Board after giving the CEO an opportunity to appear before the Board to discuss the notice of dismissal, any such meeting to be conducted in executive session. If the CEO is discharged and terminated for cause, he shall be
entitled to receive only the base salary then in effect, prorated to the date of termination, and all fringe benefits through the date of termination and the remaining installments due, if any, for any Annual Incentive Pay earned for a NAU fiscal
year prior to the final year that includes the CEO’s date of termination. 

	 	F.	The parties agree that the Board shall have the right to terminate this Agreement at any time upon a majority vote of the Board without proof of cause; provided that if
the cancellation should be for other than cause or other than during the Notice Period, the CEO shall be entitled to receive, as liquidated damages, his then current base salary (as determined under Article VI A hereof), payable monthly, for two
years after termination or until the CEO shall again be employed by another employer, whichever shall first occur. Payments will be made in monthly installments and will commence in the month following the expiration of any applicable rescission
period, but no later than 75 days following CEO’s termination of employment. All payments must be completed no later than the last day of the second calendar year following the calendar year in which the Employee terminates employment.

 The payments made to the CEO under this Paragraph F shall be in lieu of any and all other
entitlements, whether contractually or statutorily derived, including, but not limited to any additional compensation which would otherwise be due him under the provisions of Article VI, Paragraph B. In the event that NAU gives the notice of
termination under this Paragraph F, NAU shall determine whether to require the CEO to continue to perform the agreement during the notice period. NAU will provide COBRA and State continuation premiums for health and dental insurance premiums for the
CEO and CEO’s dependents as in effect at termination under the Company’s group insurance plans, subject to these plans’ eligibility requirements for a period of twelve (12) months (the “Premium Payment Period”). The
Premium Payment Period shall run concurrently with the first twelve (12) months of CEO’s COBRA and State benefits continuation period. CEO acknowledges that in order for NAU to make the payments described in this Paragraph, that the CEO
must execute all documentation necessary to elect insurance continuation coverage. 
 CEO shall only be entitled
to receive the liquidated damages or severance payments provided for in this Paragraph if CEO signs and does not rescind a severance agreement at the time of termination in a form prepared by and acceptable to the Board that includes adequate
provisions for at least the following: 
  

	 	1.	CEO’s general release of any and all legal claims that could be asserted or that arise out of or relate to his employment with the company or separation from the
company, whether or not any such claim is known to CEO at the time of resignation; 

  

	 	2.	CEO’s return of all of NAU’s property in CEO’s possession; 

  

	 	3.	Non-disparagement of NAU, any affiliated entities and their employees and representatives; 

 

	 	4.	Confidentiality of terms; 

  

	 	5.	Acknowledgment of CEO’s continuing contractual obligations to the company, including CEO’s continuing non-competition, confidentiality, and invention
obligations under this agreement; 

  

	 	6.	CEO’s forfeiture of and repayment to NAU of 75% of this severance bonus upon any breach by CEO of the severance agreement or his non-competition, confidentiality
and invention obligations under this or any other agreement with NAU; and 

  

	 	7.	CEO agrees that should CEO’s employment terminate for any reason, CEO will be deemed to have immediately resigned all other positions, including board membership
that CEO may hold on behalf of the company. 

 XIII. 

CLAWBACK: 

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

 XIV. 
 WAIVER OF BREACH: 
 The parties agree that the waiver by NAU of any
breach by the CEO of any provision of this Agreement shall not be construed as a waiver of any subsequent breach by the CEO and shall not preclude such enforcement or disciplinary action as NAU deems necessary and appropriate. 

XV. 

ASSIGNMENT: 
 The
parties agree that this is a personal service contract and may not be assigned by the CEO. 
 XVI. 

APPLICATION OF 409A: 
 Notwithstanding anything in the agreement to the contrary, payment of severance benefits under the agreement are subject to the following rules. All such payments are intended to fall within an exception
to Section 409A of the Internal Revenue Code (“409A”) and will be interpreted accordingly. Any payment made within 2-1/2 months after the end of the year in which the CEO terminates employment (the “short-term deferral
period”) shall be deemed to be a “short-term deferral” exempt from 409A. Any payment made outside the short-term deferral period shall be considered “severance pay” under Section 409A and shall fall within the severance
pay exception to 409A. In order to comply with the Section 409A severance pay exception the aggregate of any payments made outside the short-term deferral period shall not exceed the lesser of two times: (a) the CEO’s annualized
compensation for the calendar year immediately preceding the calendar year in which the termination of employment occurs; or (b) the Internal Revenue Code Section 401(a) (17) limit for the calendar year in which the termination of
employment occurs. Any excess of the severance benefits anticipated to be due the CEO (as determined by NAU) under this agreement over the sum of the amounts payable to the CEO as a short-term deferral and as severance pay pursuant to the foregoing
provisions of this Article XVI shall be paid to the CEO during the short-term deferral period and shall also be considered a short-term deferral. Each payment provided under this agreement shall be treated as a “separate payment” within
the meaning of Section 409A and the regulations thereunder. If for any reason it is determined that any payment provided or to be provided under this agreement does not fall within an exception to section 409A, and accordingly is subject to
Section 409A, the provisions of the agreement governing such payment shall be construed in such manner as to comply in all respects with the requirements of Section 409A, including, but not limited to, the following: 

 

	 	a.	If at the time of his separation from service, the CEO is a “specified employee” within the meaning of Section 409A (a)(2)(B)(i) of the Internal Revenue
Code and the payment is made on account of the CEO’s separation from service, the payment will be made on the first day of the seventh (7th) month following the separation. 

 

	 	b.	If the payment is contingent on the execution of a severance agreement by the CEO and the time for executing the severance agreement spans two calendar years, the
payment will be made in the second calendar year. 

  

	 	c.	If the payment is made on account of the CEO’s termination of employment, then termination of employment shall mean “separation from service” within the
meaning of Section 409A. 

 XVII. 
 COVENANT NOT TO COMPETE: 
 CEO agrees that during CEO’s
employment with the company and for an additional period of twenty-four months following CEO’s termination of employment with NAU, regardless of the reason for such termination, that CEO shall not directly or indirectly, anywhere within the
United States of America: 
  

	 	A.	Own (except as a stockholder of a public company in which CEO owns less than 2% of the issued and outstanding capital stock of such company) manage, control,
participate in, consult with, render services for, be employed by or in any manner engage in the operation of (i) a for-profit post-secondary education institution or (ii) any other business that competes with the business activities of
NAU in which CEO had significant involvement prior to termination of CEO’s employment; 

	 	B.	Solicit funds on behalf of or for the benefit of any for-profit post-secondary education institution (other than NAU) or any other entity that competes with NAU;

  

	 	C.	Solicit individuals who are current or prospective students of the company to be students for any other for-profit post-secondary education institution;

  

	 	D.	Induce or attempt to induce any employee of NAU to leave the employ of NAU or in any way interfere with the relationship between NAU and any employee thereof; or

  

	 	E.	Induce or attempt to induce any student, customer, supplier, licensee or other business relationship of NAU to cease doing business with or modify its business
relationship with NAU or in any way interfere with or hinder the relationship between such student, customer, supplier, licensee or business relationship and NAU. 

 XVIII. 
 MISCELLANEOUS: 

 

	 	1.	Integration: This agreement embodies the entire agreement and understanding among the parties relative to the subject matter hereof and supersedes all prior
employment agreements, understandings or past practices except only as to prior compensation and benefits which have accrued but not yet been paid to CEO. 

  

	 	2.	Payments: All payments paid under this agreement shall be subject to normal withholdings or such other treatment as required by law. 

 

	 	3.	Survival: CEO’s confidentiality, inventions and non-compete obligations set forth in this agreement shall survive the termination of this agreement and
CEO’s termination of employment with NAU regardless of the reason for such termination. 

  

	 	4.	Applicable Law, Venue: This agreement and the rights of the parties shall be governed by and construed and enforced in accordance with the laws of the State of
South Dakota. The venue for any action hereunder shall be the Courts in the State of South Dakota, whether or not such venue is or subsequently becomes inconvenient and the parties consent to the jurisdiction of the Courts of the State of South
Dakota, County of Pennington and the US District Court, District of South Dakota. 

  

	 	5.	Counterparts: This agreement may be executed in several counterparts who, when so executed and assembled together, shall constitute one agreement binding on the
parties hereto. 

  

	 	6.	Binding Effect. This agreement is personal in nature to the CEO and the CEO and his heirs, personal representatives and estates shall be bound according to the
terms hereof.

  

	 	7.	Notices: All notices, requests and other communications hereunder shall be given in writing and deemed to have been duly given or served if personally delivered,
sent by a confirmed receipt, facsimile, or sent by first class certified mail, return receipt requested, postage prepaid to the party at the address as provided from time to time or as follows: 

 

	 	a.	To the company at the address of its then principal office; 

  

	 	b.	To the executive to the address last shown on the records of NAU. 

 DATED this 30th day of August, 2012. 
  

			
	DLORAH, INC.
		
	By:	 	 /s/ Robert D. Buckingham

		 	Robert D. Buckingham
	Its:	 	Chairman
	
	NATIONAL AMERICAN UNIVERSITY
	DIVISION OF DLORAH, INC.
		
	By:	 	 /s/ Jerry Gallentine

		 	Jerry Gallentine, Ph.D.
	Its:	 	President
		
		 	 /s/ Ronald Shape

		 	Ronald Shape, Ed. D.

 EXHIBIT A 
 ANNUAL INCENTIVE COMPENSATION PLAN 
 This is an exhibit to the Employment Agreement for the
CEO of National American University. 
  

	A.	The annual base salary is set in Section VI of the Employment Agreement to which this is attached. 

 

	B.	Annual Incentive Compensation shall be computed and paid according to the following formula. For purposes of this plan, the audited consolidated financial statements
for National American University Holdings, Inc. will be used in order to determine the “Operating Ratio” (meaning the ratio of (a) Total Operating Expenses, over (b) Total Revenue). For the purposes of this ratio, the operating
expenses and gross profit will not include: 

  

	 	1.	Provision for state and federal income taxes. 

  

	 	2.	Interest income. 

  

	 	3.	Interest expense. 

  

	 	4.	Contributions to the NAU 401(k) retirement program. 

  

	 	5.	Gains and losses from securities. 

  

	 	6.	Extraordinary items shown on the financial statement and gains or losses from the sale of major corporate (including NAU) properties outside of the normal course of
business. 

  

	 	7.	Business expansion and development expenses and income approved by the Chairman of the Board in advance of the accrual of the income or the incurring of the expense.
For the purposes of this agreement, business expansion and development shall include all business/expansion development expense (or income) from the inception through a period of two years from the date of enrollment of the first student at any new
campus, location or program unless otherwise agreed by the CEO and the Chairman of the Board. 

  

	 	8.	Accrued annual bonus calculations for CEO. 

  

	 	9.	Compensation and expense of and for the Board and Directors. 

  

	C.	The calculation (as determined in B above) will determine the Annual Incentive Pay and will be paid under the following guidelines: 

 

	 	1.	If the Company achieves an Operating Ratio (as defined above) of less than 90%, then no Annual Incentive Pay will be paid. 

 

	 	2.	If the Company achieves an Operating Ratio (as defined above) of equal to or less than 80% then Annual Incentive Pay of 1% of the Company’s Total Revenue (less the
base salary as defined in A above) will be paid. 

  

	 	3.	If the Company achieves an Operating Ratio (as defined above) between 80% and 90%, then a prorated Annual Incentive Pay will be made in accordance with the following
schedule: 

  

	 	(a)	Total Revenue. 

  

	 	(b)	For a 90% Operating Ratio, take Total Revenue times 0.1%. 

  

	 	(c)	For an 80% Operating Ratio, take Total Revenue times 1% and subtract base salary as defined in A above. 

 

	 	(d)	Operating Ratio as calculated in B above. 

  

	 	(e)	Proration when Operating Ratio is between 90% and 80% as follows: ((line (d) less 80), times (line (c) less line (b)), divided by 10).

  

	 	(f)	Annual Incentive Pay as follows: line (c) minus line (e). 

  

	D.	This plan shall not be changed or modified without a two (2) year notification unless mutually agreed to by the parties in writing. 

For clarification purposes, see attached examples of the calculation. 

 EMPLOYMENT SCHEDULE 

Dr. Ron Shape 

Year Ending May 31, 2013 

Annual Salary Computation 
  

																	
	 	  	Example A	 	  	Example B	 	  	Example C	 	  	Example D	 
	 1. Base Salary
	  	 	427,500	  	  	 	427,500	  	  	 	427,500	  	  	 	427,500	  
	 2. Total Revenue
	  	 	118,894,000	  	  	 	118,894,000	  	  	 	118,894,000	  	  	 	118,894,000	  
	 3. Total Comp. at a 90% operating ratio (line 1) plus (line 2, times .001)
	  	 	546,394	  	  	 	546,394	  	  	 	546,394	  	  	 	546,394	  
	 4. Total Comp. at a 80% operating ratio (line 2, times .01)
	  	 	1,188,940	  	  	 	1,188,940	  	  	 	1,188,940	  	  	 	1,188,940	  
	 5. Operating ratio as calculated at May 31st
	  	 	89.0000	  	  	 	85.0000	  	  	 	82.0000	  	  	 	80.0000	  
	 6. Compensation difference when operating ratio is between 90% and 80% ((line 5, less 80) times (line 4, less line 3) divided by
10))
	  	 	578,291	  	  	 	321,273	  	  	 	128,509	  	  	 	N/A	  
	 7. Annual Salary and Merit (line 4 minus line 6)
	  	 	610,649	  	  	 	867,667	  	  	 	1,060,431	  	  	 	1,188,940EX-10.1

 Exhibit 10.1 
 LNB Bancorp, Inc. 
 2012 Management Incentive Plan 

For Key Executives 

Section I. PURPOSE 
 The LNB Bancorp,
Inc. 2012 Management Incentive Plan for Key Executives is designed to reward Key Executives with incentive compensation payments for achieving profitability goals and subjective goals. 
 Section II. DEFINITIONS 
 The following terms, as used in this Plan, shall mean: 

 

	A.	Committee. The Compensation Committee of the Board of Directors of LNB Bancorp, Inc., or such other committee as such Board may designate.

  

	B.	Employer or Lorain National Bank. LNB Bancorp, Inc., its subsidiaries and affiliates. 

 

	C.	Plan year. January 1, 2012 through December 31, 2012. 

 

	D.	Employee/Key Executive. The participants selected to participate in this Plan as described in Section III below. 

 

	E.	Plan. The LNB Bancorp, Inc. 2012 Management Incentive Plan for Key Executives. 

 

	F.	Incentive Payment. Cash payment earned by Employee on the Incentive Payment Date, as determined in accordance with Section IV and the other terms of this
Plan. 

  

	G.	Incentive Payment Date. The date on which an Incentive Payment to Employee is paid, which shall be as soon as reasonably practicable after such payment is
calculated and authorized by the Committee but not later than two and one-half months following the end of the Plan year. 

  

	H.	Profitability. Profitability is defined as net income after tax of LNB Bancorp, Inc. and its consolidated subsidiaries for the Plan year, as determined by
the Committee. The Committee has the discretion to adjust for any unforeseen occurrences which may affect the profitability number. 

  

	I.	Profitability Goal. An amount of Profitability established as a goal by the Committee in its discretion and solely for purposes of this Plan, based on the
Employer’s annual budget as determined by its Audit and Finance Committee. This goal will be communicated to each Key Executive when the Key Executive is selected to participate in this Plan. 

 Section III. ELIGIBILITY 
 Employees of Lorain National Bank, other than the CEO, are eligible to participate in this Plan. Based upon CEO recommendations, the Committee has the authority, in its discretion, to designate the
Employees who will participate in this Plan during the Plan year. 
 Section IV. AMOUNT OF INCENTIVE PAYMENT 

Subject to the other terms of this Plan, the amount of the Incentive Payment earned by an Employee under this Plan will be determined, based on
Employer’s actual Profitability achievement for the Plan year relative to the percentage of the Profitability Goal, a percentage of Employee’s base salary, and on other terms as determined, interpreted and established in the sole
discretion of the Committee. 
 Section V. OTHER INCENTIVE PAYMENT TERMS 
 A. Payments and Deductions/Withholding Taxes. 
 Employer will
pay an Employee the Incentive Payment on the Incentive Payment Date provided the Employee is an active employee of Employer on that date. The amount of the Incentive Payment, if any, shall be calculated as provided in Section IV of this Plan.
Deductions may also be made at the discretion of Employer and in accordance with applicable law for any amounts the employee owes to Employer. 

Employer may withhold from any amounts payable under or in connection with this Plan all federal, state, local and other taxes as may be required to be
withheld by Employer under applicable law or governmental regulation or ruling. 
 B. Incentive Payment
Calculation. 
 The Committee will have the sole authority and discretion to evaluate all aspects of the
Employer’s incentive compensation awards and to determine performance and the total pool money available to all Employees in the aggregate. Generally, subject in all cases to terms as determined, interpreted and established in the sole
discretion of the Committee, the total pool of money available to all Employees will be based upon whether the Employer achieves actual Profitability for the Plan year that falls within a range of specified minimum, target and maximum percentages of
the Profitability Goal, and will be zero if the Employer does not achieve actual Profitability for the Plan year that is equal to at least the specified minimum percentage of the Profitability Goal. The CEO will determine the distribution to the Key
Executives, subject to Committee approval in its sole discretion. 
 The Committee retains the right and authority (in addition to any other
rights or remedies of Employer) not to pay all or any part of an Incentive Payment to any Employee based on operational wrongdoing or misconduct of the Employee, as determined by the Committee in its sole discretion. The Employer must document all
such exceptions to this Plan, including but not limited to, forfeiture of payments. 

  
 2 

 D. Special Circumstances. 
 1. Conflicts with Law. If any provision of this Plan violates local, state or federal law, the applicable law shall control. 
 2. Voluntary or Involuntary Termination. If Employee’s employment is voluntarily or involuntarily terminated before the Incentive Payment Date, Employee is not entitled to receive and will
forfeit the Incentive Payment. Employee must be employed on the Incentive Payment Date to be entitled to the Incentive Payment. 
 3.
Transfer. If an Employee transfers to another position within Employer that does not participate under this Plan before the Incentive Payment Date, the Employee is not entitled to receive and will forfeit the Incentive Payment. A payment of a
pro-rated amount of the Incentive Payment may be awarded in the Committee’s sole discretion. 
 4. Leave of Absence. Incentive
Payments will be pro-rated based on months of active employment as determined by the Committee in its sole discretion. An Employee on a leave of absence must be employed on the Incentive Payment Date to receive an Incentive Payment. 

5. Death. In the event of the Employee’s death before the Incentive Payment Date, the Employee’s estate is not entitled to receive and
will forfeit the Incentive Payment. A payment of a pro-rated or full amount of the Incentive Payment may be awarded in the Committee’s sole discretion. 
 Section VI. NON-SOLICITATION AND CONFIDENTIALITY 
 A. Non-Solicitation.

 In consideration of Employee’s participation in this Plan, Employee agrees that during the term of Employee’s employment and for
one year after Employee’s voluntary termination of employment or termination of employment for cause, Employee will not, directly or indirectly: (1) influence or advise any other person to employ or solicit for employment anyone who is
employed by Employer on the date of Employee’s separation; (2) influence or advise any person who is or shall be in the service of Employer to leave the service of Employer; (3) use any of the information or business secrets used by
Employer, except in accordance with Employer’s policies in the regular course of Employee’s duties for Employer; (4) disclose the proprietary methods of conducting the business of Employer, except in accordance with Employer’s
policies in the regular course of Employee’s duties for Employer; (5) make any statement or take any actions that may interfere with Employer’s customers, except in accordance with Employer’s policies in the regular course of
Employee’s duties for Employer; or (6) attempt to divert any of the business of Employer or any business which Employer has a reasonable expectation of obtaining by soliciting, contacting, or communicating with any customers and/or
potential customers which have been derived from leads or lists developed and delivered to Employee by Employer. 
 B.
Confidentiality. 
 In consideration of Employee’s participation in this Plan, Employee agrees that during and following
termination of employment with Employer, Employee will hold in strictest confidence and will not disclose to anyone, except in accordance with Employer’s policies in the regular course of Employee’s duties for Employer, any information
concerning: 

  
 3 

 1. The business or affairs of, or nonpublic information concerning, a current, past or prospective customer
of Lorain National Bank. 
 2. The development of any product, device, method or invention of Lorain National Bank. 

3. Any information concerning Lorain National Bank or its operations not readily available to the public, unless expressly authorized by the President or
any Vice President of Lorain National Bank. 
 Employee further agrees that all rights, title and interest to any product, device, invention, or
enhancement to a product or service, developed during his or her employment with Employer and using Employer resources or know-how, shall belong exclusively to Lorain National Bank. Employee agrees to execute any documents necessary to reflect
Lorain National Bank’s exclusive ownership in such items. 
 Upon termination of employment with Employer, Employee will deliver to Lorain
National Bank all documents, notes, materials and all copies thereof, relating to the operations or the business of Lorain National Bank and its customers. 
 B. Related Provisions 
 1. Prior Agreements. This Section VI does not
supercede any prior agreements or understandings between Employer and Employee to the extent that such prior agreement or understanding is more favorable with respect to Employer. 
 2. Equitable Relief. Employee acknowledges and agrees that the covenants contained in this Section VI are of a special nature and that any breach, violation or evasion by Employee of the terms of
Section VI will result in immediate and irreparable injury and harm to Employer, for which there is no adequate remedy at law, and will cause damage to Employer in amounts difficult to ascertain. Accordingly, Employer shall be entitled to the remedy
of injunction, as well as to all other legal or equitable remedies to which Employer may be entitled (including, without limitation, the right to seek monetary damages), for any breach, violation or evasion by Employee of the terms of Section VI.

 Section VII. AT-WILL EMPLOYMENT 
 Employee agrees not to commence any action or suit related to Employee’s employment by Lorain National Bank: 
  

	 	1.	More than six months after the termination of Employee’s employment, if het action or suit is related to the termination of Employee’s employment, or

  

	 	2.	More than six months after the event or occurrence on which Employee’s claim is based, if the action or suit is based on an event or occurrence other than the
termination of Employee’s employment. 

 Employee agrees to waive any statute of limitations that is contrary to this
Section. 

  
 4 

 Section VIII. GENERAL PROVISIONS 
 1. Administration. The Plan shall be administered by the Committee. The Committee has the sole and exclusive authority, subject to any limitations specifically set forth in this Plan, to: adopt,
amend, alter and repeal this Plan at any time as it deems advisable in its sole discretion from time to time; construe, interpret, administer and implement the terms and provisions of this Plan; and otherwise supervise the administration of this
Plan. Notwithstanding the foregoing, all decisions made by the Committee pursuant to the provisions of this Plan are final and binding on all persons, including Employee, but may be made by their terms subject to ratification or approval by the
Board of Directors of LNB Bancorp, Inc. or another committee of the Board of Directors. 
 2. No Implied Rights to Employment. Neither
this Plan nor any Incentive Payment hereunder shall be construed as giving any individual any right to continued employment or any particular level of salary or benefits with Employer. This Plan does not constitute a contract of employment, and
Employer expressly reserves the right at any time to terminate any Employee free from liability or any claim. 
 3. Other Compensation
Plans. Nothing contained in this Plan prevents Employer from adopting or modifying other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 

4. Successors; Amendments. All obligations of Employer with respect to Incentive Payments under this Plan are binding on any successor to Employer,
whether as a result of a direct or indirect purchase, merger, consolidation or otherwise of all or substantially all of the business and/or assets of Employer. Employee may not assign any rights or obligations under this Plan without the written
consent of Employer. Subject to the Committee’s rights under Section VII.1. above, none of the terms of Section VI may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing, and is signed by
Employee and by an authorized officer of Employer. 
 5. Validity. The invalidity or unenforceability of any provision or provisions of
this Plan shall not affect the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect. In the event that any provision of Section VI is found by a court of competent jurisdiction to be invalid or
unenforceable as against public policy, such court shall exercise its discretion in reforming such provision to the end that Employee shall be subject to such restrictions and obligations as are reasonable under the circumstances and enforceable by
Employer. 
 6. Governing Law; Interpretation. This Plan shall be construed in accordance with and governed by the laws of the State of
Ohio, without giving effect to the conflict of law principles of such State. This Plan is not intended to be governed by the Employee Retirement Income Security Act and shall be so construed and administered. The headings contained herein are for
reference purposes only and shall not in any way affect the meaning or interpretation of this Plan. 
 7. Entire Agreement. This Plan
embodies the entire agreement and understanding between Employer and Employee with respect to the subject matter hereof, and supercedes all prior agreements and understandings relating hereto, except as expressly stated herein. 

  
 5 

 Section IX. EESA COMPLIANCE 
 To the extent that an Employee and an Incentive Payment are subject to Section 111 of the Emergency Economic Stabilization Act of 2008 and any regulations, guidance or interpretations that may from
time to time be promulgated thereunder or any other applicable statute or regulation affecting an Employee’s compensation (“EESA or Other Applicable Law”), then any payment of any kind provided for by, or accrued with respect to, the
Incentive Payment must comply with EESA or Other Applicable Law, and this Plan shall be interpreted or reformed to so comply. If the making of any payment pursuant to, or accrued with respect to, the Incentive Payment would violate EESA or Other
Applicable Law, the affected Employees shall be deemed to have waived their rights to such payments or accruals. In addition, if applicable, an Incentive Payment will be subject to forfeiture or repayment, and subject to recovery by Employer, if the
Incentive Payment is based on financial statements or other performance metrics that are later determined to be materially inaccurate. In the event that the Committee determines by at least a majority vote that an Incentive Payment to Employee is
recoverable pursuant to the foregoing, Employee shall repay the aggregate amount of such Incentive Payment, to the fullest extent permitted by law, within 15 business days following written notice to Employee by Employer of such determination.

 Employee and Employer have agreed to the terms of this Plan as of the latest date set forth below. 

 

							
	“Employee”	 		  		  	
				
	Approved:	 	 	  	Date:	  	 
				
	“Employer”	 		  		  	
				
	Approved:	 	 	  	Date:	  	 
		 	By:	  		  	

 1/25/2012 

  
 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}]]