Document:

Annual Incentive Plan - Management Employees - 2008

 Exhibit 10.1 
 CAPELLA EDUCATION COMPANY 
 ANNUAL INCENTIVE PLAN 
 MANAGEMENT EMPLOYEES – 2008 
 PLAN OBJECTIVE

 To recognize and reward eligible management employees for the achievement of Company financial goals. 
 PLAN SUMMARY 
  

	 	•	 	 The plan is based upon Company performance against revenue and operating income metrics, as compared to plan, for eligible participants as follows:

  

	 	-	90% of the incentive opportunity is based on 2008 total Company performance, measured by achievement of revenue and operating income compared to plan. 

  

	 	-	10% of the incentive opportunity is based on achievement of a Learner Satisfaction Measure. 

  

	 	•	 	 You have the opportunity to earn from 0% – 200 % of your target incentive amount. The financial performance and payout matrices will be reviewed periodically
as to progress during the Plan Year. 

  

	 	•	 	 The Company must achieve at least 89% of its plan target for operating income, in order to pay out any portion of the incentive based on revenue achievement.

  

	 	•	 	 Your incentive earnings will be paid within two and one-half months after the end of the Plan Year based on year-end Company financial achievement.

 Note: The remaining pages and exhibits provide further explanation regarding plan design, payout criteria, and administration.

 See Exhibit 1 for specific information, including definitions, terms and conditions, and payout criteria. 

 ELIGIBILITY CRITERIA 
 Select management-level employees who meet the Eligibility Criteria are eligible for plan participation. Criteria the plan administrator will consider when selecting eligible employees for participation include scope
and level of responsibility, organizational impact, internal equity and external competitiveness. Incentive awards for employees who work less than full-time will be prorated accordingly. 
 PLAN ADMINISTRATOR 
 The Compensation Committee of the Board of
Directors of the Company will administer the plan. The Committee may delegate to the Chief Executive Officer and the Vice President of Human Resources the authority to determine incentive awards under the plan for eligible employees who are not
executive officers of the Company. Awards granted pursuant to such delegated authority shall be made consistent with the criteria established by the Committee and shall be subject to any other restrictions placed on the delegation by the Committee.
Any incentive award under the plan to the Company’s Chief Executive Officer will be approved and administered by the Executive Committee of the Board of Directors. 
 To the full extent permitted by law, (i) no member of the Committee or other plan administrator shall be liable for any action or determination taken or made in good faith with respect to the plan or any award made
under the plan, and (ii) the members of the Committee and the other plan administrators shall be entitled to indemnification by the Company with regard to such actions. 
 SIZE OF AWARD OPPORTUNITY 
 Incentive potential for plan participants is expressed as a percentage of Base
Compensation as of December 31st of the Plan Year. At target level performance, the size of the incentive award opportunity is based upon your position as determined by the plan administrator. 
 PAYOUT CRITERIA – COMPANY FINANCIAL RESULTS 
 Total
Year Revenue and Operating income 
  

	 	•	 	 90% of your targeted incentive potential is based on total year, year-end company financial results for revenue and operating income. 

 

	 	•	 	 At the beginning of the year, an annual financial target will be established at the Company level, approved by the Compensation Committee. The Chief Executive
Officer or designate will communicate this financial target to you. Incentive potential will be based on the level of Company financial performance within a specified range. 

	 	•	 	 All participants, unless otherwise communicated, will have a financial target that reflects overall Company financial results.

  

	 	•	 	 If the Company exceeds the target financial level on the full year performance, per the incentive plan schedule (matrix), you will be eligible to receive a greater
than target level incentive award for this portion of the plan. 

  

	 	•	 	 This portion of the plan pays out for a range of financial performance with an upward potential of your target incentive award opportunity. (Please see the
financial matrix for the specific payout schedule). 

 Learner Satisfaction Measure 
  

	 	•	 	 10% of your targeted incentive potential is based on a Learner Satisfaction Measure. The maximum target level for this component of the plan is 20%.

 QUALIFICATION OF AWARD PAYMENT 
 The
plan administrator reserves the right to withhold incentive payment in the event an individual fails to perform his or her day-to-day job in a satisfactory manner after the Company has provided reasonable notice of such failure. 

 Exhibit 1 
 CAPELLA EDUCATION COMPANY 
 MANAGEMENT INCENTIVE PLAN 
 I. Definitions of Terms 
 The following terms as used
in the plan have meaning as described below: 
 Company – Capella Education Company. 
 Base Compensation – total base salary wages for the plan year. (Note: excludes any incentive compensation payment(s), lump sump merit
increases and taxable fringes). Base salary wages will be reduced for any leave of absence, paid or unpaid, beyond 90 days. 
 Eligibility
Criteria – Individuals need to be regular status, work a minimum of half time to be eligible for plan participation (average of 40 hours per pay period), and be considered a management level employee (functional leader or above). Incentive
awards for employees who work less than full-time will be prorated according to his/her total annual base salary wages. 
 Financial
Objective – the level of company performance against any financial measure approved by the Committee to define operating performance. The Committee may amend the goals to reflect material adjustment in or changes to the Company’s
policies; to reflect material company changes such as mergers or acquisitions; and to reflect such other events having a material impact on goals. 
 Learner Satisfaction Measure – refers to the specific measurement of learner satisfaction as measured by a learner satisfaction survey conducted by the Company. 
 Performance Measures – means any of the following measures with respect to the performance of the Company or a group, a unit, an Affiliate,
or an individual; specified levels of the Company’s stock price, market share, sales, earnings per share, return on equity, costs, operating income, net income before interest, taxes, depreciation and/or amortization, net income before or after
extraordinary items, return on operating assets or levels of cost savings, earnings before taxes, net earnings, asset turnover, total shareholder return, pre-tax, pre-interest expense return on invested capital, return on incremental invested
capital, free cash flow or cash flow from operations, or customer satisfaction or learner success metrics. In addition, with respect to an Award that is not intended to qualify for the exemption from the limitation on deductibility imposed by
Section 162(m) of the Code on compensation paid to “covered employees” as defined therein, “Performance Measures” may include any other measure determined by the 

 Committee. Such performance measures may be set as an absolute measure or relative to a designated peer
group or index of comparable companies. 
 Plan Year – the fiscal year of the Company. 
 Payout – the actual amount to be paid to a participant based upon achievement of Company financial objectives. 
 II. Plan Administration 
 New Hires – new
hires must start by October 1st to qualify. For individuals hired by October 1st of the Plan Year, eligibility begins on the first date of employment. Individual incentive awards will be prorated from the date of hire based on an individual’s
total annual base wages earned during the Plan Year. 
 Promotions – individuals must be promoted into an eligible management
level position by October 1st to be eligible for participation in that Plan Year. Note: if an individual is promoted October 1st or after of the Plan Year it will be at the Committee’s discretion to determine the percentage of incentive Payout
that an employee will receive at year-end. 
 Termination of Employment – in the event any eligible participant ceases to be an
employee during any year in which he/she is participating in the plan, he/she will not be eligible to receive any incentive compensation for such year unless otherwise provided for in the Senior Executive Severance Plan or the Executive
Severance Plan. Individuals need to be employed at the time of award payment to be eligible for any incentive payments unless otherwise provided for in the Senior Executive Severance Plan, or Executive Severance Plan. Incentive
awards to individuals who are subject to the Senior Executive Severance Plan, or the Executive Severance Plan will be determined in accordance with the plan, as adjusted in accordance with the Senior Executive Severance Plan or
the Executive Severance Plan, and all Payouts will be made in accordance with the Senior Executive Severance Plan, or the Executive Severance Plan. Employees who become disabled or retire during the year will be eligible to
receive a prorated portion of the incentive payment, if earned. 
 Right to Continue Employment – nothing contained in the plan
shall be construed to confer upon any employee the right to continue in the employment of, or the Company’s right to terminate his/her employment at any time. 
 Tax Withholding – The Company shall have the right to withhold from cash payments under the plan to a participant or other person an amount sufficient to cover any required withholding taxes. 

 Unfunded Plan – The plan shall be unfunded and the Company shall not be required to segregate
any assets that may at any time be represented by awards under the plan. 
 Plan Amendment, Modification, or Termination – from
time to time the Compensation Committee may amend the plan as it believes appropriate and/or may terminate the plan, provided that no such amendment or termination will affect the right of any participant to receive incentive compensation in
accordance with the terms of the plan for the portion of any year up to the date of the amendment or termination. Typically, any such modification would be made on an annual basis. 
 Governing Law – To the extent that federal laws do not otherwise control, the plan and all determinations made and actions taken pursuant to
the plan shall be governed by the laws of Minnesota and construed accordingly.Form of Contingent Stock Award

 Exhibit 10.32 
 HEALTH MANAGEMENT ASSOCIATES, INC. 
 1996 EXECUTIVE INCENTIVE COMPENSATION PLAN 
 AWARD NOTICE 
  

							
		 	Grantee:	  	  
	  	
		 	Type of Award:	  	 Contingent Stock Award
	  	
		 	Number of Shares:	  	  
	  	
		 	Date of Grant:	  	  
	  	

 1. Grant of Contingent Stock. This Award Notice serves to notify you that the Compensation
Committee (the “Committee”) of the Board of Directors of Health Management Associates, Inc. (“HMA”) hereby grants to you, under HMA’s 1996 Executive Incentive Compensation Plan (the “Plan”), a contingent stock
award (this “Award”), on the terms and conditions set forth in this Award Notice and the Plan, representing the right to receive the number of shares of HMA’s Class A Common Stock, par value $.01 per share (the “Common
Stock”) set forth above. The Plan is incorporated herein by reference and made a part of this Award Notice. A copy of the Plan is available from HMA’s Human Resources Department upon request. You should review the terms of this Award
Notice and the Plan carefully. The capitalized terms used and not defined in this Award Notice are defined in the Plan. 
 2. Vesting.
Except as otherwise provided by Section 4, vesting of the shares of Common Stock represented by this Award are contingent upon your continuous employment with HMA or its subsidiaries for the four-year period beginning on the Date of Grant set
forth above. No shares of Common Stock will be issued or reserved upon the Date of Grant, and you will not have any rights of a stockholder with respect to the shares of Common Stock represented by this Award until the date of issuance to you of a
stock certificate representing such shares, in the manner and at the time described in Section 6. 
 3. Effect of Change In
Control. Upon the occurrence of a Change In Control of HMA, your rights will be determined in accordance with Section 9 of the Plan. 
 4. Effect of Termination of Employment; Death, Disability or Retirement. If your employment with HMA or a subsidiary is terminated for any reason before the fourth anniversary of the date of grant, this Award will be forfeited and no
payment will be made with respect to such Award unless the termination of employment is due to your death or total and permanent disability, or your retirement on or after age 62, in which case this Award will become immediately payable. 

 5. Nature of Award. This Award constitutes an award of “Deferred Stock” (as such term is
defined in the Plan. Until vested in accordance with Section 2 (or earlier in accordance with Section 4), this Award constitutes only the Company’s unfunded and unsecured promise to issue shares of Common Stock to you on a future
date. 
 6. Issuance of Shares. Except as otherwise provided by Section 10, upon the vesting of the shares of Common Stock
underlying this Award, HMA shall issue a stock certificate representing the vested shares as promptly as practicable following the date of vesting. The shares of Common Stock may be issued during your lifetime only to you, or after your death to
your designated beneficiary, or, in the absence of such beneficiary, to your duly qualified personal representative. 
 7.
Nonassignability. This Award and the shares of Common Stock underlying this Award may not be sold, assigned, transferred, pledged, hypothecated, margined or otherwise encumbered in any way prior to the vesting of such shares, whether by
operation of law or otherwise, except by will or the laws of descent and distribution. After vesting, the sale or other transfer of the shares of Common Stock shall be subject to applicable laws and regulations under the Securities Exchange Act of
1934, as amended. 
 8. Rights as a Stockholder; No Dividend Equivalents. Prior to the vesting of the shares of Common Stock
underlying this Award, you will not have any of the rights of a stockholder with respect to such shares. Without limiting the foregoing, you will have no right to receive dividends, if any, as may be declared on such shares of Common Stock from time
to time or the right to vote (in person or by proxy) such shares at any meeting of stockholders of HMA. No “Dividend Equivalents” (as that term is defined in the Plan) shall be paid with respect to the shares of Common Stock underlying
this Award. 
 9. Rights of HMA and Subsidiaries. This Award does not affect the right of HMA or any of its subsidiaries to take any
corporate action whatsoever, including without limitation its right to recapitalize, reorganize or make other changes in its capital structure or business, merge or consolidate, issue bonds, notes, shares of Common Stock or other securities,
including preferred stock, or options therefore, dissolve or liquidate, or sell or transfer any part of its assets or business. 
 10.
Restrictions on Issuance of Shares. If at any time HMA determines that the listing, registration or qualification of the shares of Common Stock underlying this Award upon any securities exchange or under any state or federal law, or the
approval of any governmental agency, is necessary or advisable as a condition to the issuance of a certificate representing any vested shares of Common Stock under this Award, such issuance may not be made in whole or in part unless and until such
listing, registration, qualification or approval shall have been effected or obtained free of any conditions not acceptable to HMA. 
 11.
Plan Controls. This Award is subject to all of the provisions of the Plan, which is hereby incorporated by reference, and is further subject to all the interpretations, amendments, rules and regulations that may from time to time be
promulgated and adopted by the Committee 

  

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pursuant to the Plan. In the event of any conflict among the provisions of the Plan and this Award Notice, the provisions of the Plan will be controlling and
determinative. 
 12. Amendment. Except as otherwise provided by the Plan, HMA may only alter, amend or terminate this Award with your
consent. 
 13. Governing Law. This Award Notice shall be governed by and construed in accordance with the laws of the State of
Delaware, except as superseded by applicable federal law, without giving effect to its conflicts of law provisions. 
 ACKNOWLEDGEMENT 

 The undersigned acknowledges receipt of, and understands and agrees to be bound by, this Award Notice and the Plan. The undersigned
further acknowledges that this Award Notice and the Plan set forth the entire understanding between him or her and HMA regarding the contingent stock award granted by this Award Notice and that this Award Notice and the Plan supercede all prior oral
and written agreements on that subject. 
 Dated:
                             
  

	
	  

	Name (print):

  

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