Document:

Exhibit 10.1

Exhibit 10.1

TERMINATION OF EMPLOYMENT AGREEMENT AND

RELEASE AGREEMENT

This Termination of Employment Agreement and Release Agreement (the “Agreement”) is
entered into between Robert Buckingham (“Executive”) and Dlorah, Inc. (“Dlorah”)
(collectively referred to herein as the “Parties”).

RECITALS

	A.	 	The Parties entered into an employment agreement on January 3, 1995, as amended, including by
that amendment dated November 18, 2009 (the “Amended Employment Agreement”).

	B.	 	The Parties desire to terminate the Amended Employment Agreement and Executive’s employment
with Dlorah, effective March 15, 2010.

	C.	 	The Parties have engaged in discussions regarding the terms and conditions surrounding the
termination of the Amended Employment Agreement and the termination of Executive’s employment
and have agreed to terminate the Amended Employment Agreement and Executive’s employment under
the terms and conditions set forth below.

AGREEMENT

1. Separation From Employment. Executive’s employment with Dlorah terminated effective
March 15, 2010. Executive has no intent to resume his position or duties as an officer of Dlorah
or as an officer of National American University Holdings, Inc. at any time in the foreseeable
future. Executive agrees that he has been paid (a) any wages earned by him through the Separation
Date; and (b) any vacation or paid time off accrued, but unused by him as of the Separation Date.

2. Termination of Existing Amended Employment Agreement. The Parties agree that, effective
as of March 15, 2010, the Amended Employment Agreement will terminate without any payment to
Executive of any consideration or benefits of any kind under the Amended Employment Agreement, and
the Amended Employment Agreement will no longer be in effect and Executive will no longer be
eligible to receive any of the consideration or benefits set forth in the Amended Employment
Agreement.

3. Settlement Payment. Provided that Executive signs this Agreement and signs and does not
rescind Exhibit A to this Agreement, Dlorah agrees to pay Executive the sum total of Two Million
One Hundred Thirty One Thousand Nine Hundred and 12/100 Dollars ($2,131,900.12) (the
“Settlement Payment”) to be distributed as follows:

A. Payment to Executive in the amount of $1,500,000.00. This payment shall be paid in the
form of a check made payable to “Robert Buckingham” and will be delivered to Executive’s attorney
on March 31, 2010, only if Executive signs this Agreement and delivers it to Dlorah’s Chief
Executive Officer, by March 19, 2010. A Form W-2 will be issued with respect to this portion of
the Settlement Payment.

B. Payment to Executive in the amount of $631,900.12 This payment shall be paid in the form
of a check made payable to “Robert Buckingham” and will be delivered to Executive’s attorney on or
about ten (10) calendar days after Executive signs Exhibit A to this Agreement, and only if
Executive does not rescind his release of claims under the Age Discrimination in Employment Act
(“ADEA”) within the seven (7) calendar days described in Exhibit A under Paragraph 3 titled
“Opportunity to Rescind.” Executive further understands that if he rescinds his release of claims
under the ADEA, he will not be entitled to receive this portion of the Settlement Payment. A Form
W-2 will be issued with respect to this portion of the Settlement Payment.

 

 

 

Executive acknowledges that he has not relied upon any advice from Dlorah or any of its attorneys,
insurers, or representatives concerning the taxability of any payment made pursuant to this
Agreement, and that he has been advised to obtain his own tax advice.

4. No Other Benefits; Representations. Executive understands that except for the
Settlement Payment specifically described in this Agreement, Executive shall receive no other
compensation or benefits from Dlorah and shall no longer participate in Dlorah’s benefit plans,
except to the extent he is entitled to do so under state and federal benefits continuation laws.
All of Executive’s rights under such policies shall be governed in accordance with the terms of
such plans. Executive acknowledges receipt of applicable summary plan descriptions relating to
such plans. Further, he affirms that, while employed with Dlorah, he had no known and unreported
workplace injuries or occupational diseases. Executive further affirms that he was never denied
requested leave under the Family and Medical Leave Act while employed with

Dlorah.

Notwithstanding the foregoing, Executive will be entitled to participate in any benefits plans that
cover members of the Board of Directors of National American University Holdings, Inc. during any
period in which he serves as a member of such Board of Directors. A form 1099 will be issued to
the extent such coverage is taxable to Executive.

5. Release. Executive understands that as part of this Agreement, he is receiving the
Settlement Payment that he would not otherwise be entitled to receive at this time and that he
agrees is good, valuable, and sufficient consideration for all aspects of this Agreement. In
return for Dlorah’s performance of its obligations under this Agreement, Executive agrees that on
behalf of himself and any other person or entity that could bring a claim on his behalf, he
releases Dlorah and any subsidiaries, predecessors, successors, assigns and/or affiliated
companies, businesses or entities (including but not limited to National American University
Holdings, Inc. and National American University (hereinafter, collectively referred to as the
“Affiliates”)) and all of their respective employee benefit plans, plan administrators,
trustees, current and former officers, agents, directors, employees, independent contractors,
shareholders, attorneys, accountants, insurers, representatives, predecessors, successors and
assigns, both individually and in any representative capacity (collectively, the “Released
Parties”), from each and every legal claim or demand of any kind, whether known or unknown,
existing at any time up to and including the effective date of this Agreement, arising out of or
related to the termination of Executive’s employment, or the Amended Employment Agreement,
including but not limited to any claim for payment of any consideration or benefits of any kind
under the Amended Employment Agreement.

Executive understands that this Agreement is a full, final, and complete settlement and release of
all his claims, whether known or unknown, including but not limited to any claims or rights under
the Employment Retirement Income Security Act, 29 U.S.C. § 1001 et. seq., Title VII of the Civil
Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et. seq., the Americans with Disabilities Act,
42 U.S.C. § 12101, et. seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et. seq., the Fair
Labor Standards Act, 29 U.S.C. § 201 et. seq., the Equal Pay Act, 29 U.S.C. § 206 et. seq., the
National Labor Relations Act, 29 U.S.C. § 1501 et. seq., all rights and claims under any employment
law, rule or regulation of the State of South Dakota including, but not limited to, any and all
claims under the SDCL Chapter 20-13, SDCL Chapter 60-11, and all rights and claims under any
employment law, and all rights and claims under any other foreign, federal, states’, or local
governments’ laws, regulations, or executive orders governing employment, including, but not
limited to, all rights and claims under any county, city, or other local ordinance or law relating
to civil or human rights or employment. Executive further understands that he is releasing any
claims, whether known or unknown, arising from the beginning of time to and including the execution
date, for payment of compensation or benefits of any kind, costs, expenses, and attorneys’ fees,
based on fraud or misrepresentation, negligence, breach of contract, promissory estoppel,
defamation, invasion of privacy, harassment or discrimination of any kind, assault, battery, breach
of the covenant of good faith and fair dealing, intentional or negligent infliction of emotional
distress, and any other claims arising under common law. Executive further agrees that if any
claim he releases in this Agreement is prosecuted in his name before any court or administrative
agency, he will waive any benefits he might otherwise obtain through such prosecution and will not
take any award of money or other damages from such action or suit.

 

 

 

Notwithstanding the foregoing, this Agreement does not release any rights or claims which arise
from acts occurring after Executive signs this Agreement or to enforce this Agreement.

6. Service as Member of the Board of Directors and Chair of the Board of Directors.
Nothing in this Agreement is intended to terminate Executive’s current positions as a member of the
Board of Directors of National American University Holdings, Inc., as the Chairman of the Board of
Directors of National American University Holdings, Inc., as a member of the Board of Directors of
Dlorah, or as the Chairman of the Board of Directors of Dlorah.

7. Non-Admission. Executive understands that nothing contained in this Agreement is to be
construed by him or anyone else as an admission that Dlorah has violated any local, state, or
federal law, rule, regulation, or principle of common law. In fact, Dlorah expressly denies any
legal wrongdoing whatsoever.

8. Opportunity to Consider and Seek Advice. Executive is hereby advised that he has the
right to consult with an attorney prior to signing this Agreement. Executive states that he has,
in fact, consulted with an attorney prior to signing this Agreement. Executive understands that he
may not sign and accept this Agreement until after March 15, 2010. Executive states that he has
had adequate opportunity to consider this Agreement prior to signing this Agreement.

9. Complete Agreement. Executive understands that this Agreement and Exhibit A to this
Agreement contain the entire agreement between him and Dlorah regarding his separation from
employment with Dlorah or any other matters set forth herein, and there are no other written or
oral agreements regarding such matters.

10. Law and Venue. This Agreement and Exhibit A to this Agreement will be construed and
interpreted in accordance with the laws of the State of South Dakota, without regard to its choice
of law provisions, and any action arising out of or related to this Agreement shall be brought only
within the State of South Dakota whether or not that forum is then convenient to Executive.

11. Severability; Modification. The invalidity or partial invalidity of any portion of
this Agreement or Exhibit A to this Agreement, shall not invalidate the remainder thereof and said
remainder shall remain in full force and effect. In addition, this Agreement and Exhibit A to this
Agreement shall not be modified or amended except by a written instrument signed by Executive and
Dlorah.

12. Signature. The Parties agree that they have read this Agreement, know its contents and
have signed it as a free and voluntary act after having had adequate opportunity to consult with
counsel of their choice and to consider its terms and conditions. The Parties further agree that
this Agreement may be signed in counter-parts. This Agreement is entered into without regard to
who may or may not be correct in any understanding of the facts or law relating to this matter.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement intending to be legally bound
thereby.

EXECUTIVE:

	 	 	 	 	 	 	 	 	 	 	 
	/s/ Robert Buckingham	 	 	 	Date: 3/19/10	 	 
	 	 	 	 	 	 	 
	Robert Buckingham	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DLORAH, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Samuel Kerr	 	 	 	Date: 3/22/10	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Secretary	 	 	 	 	 	 

 

 

 

EXHIBIT A TO TERMINATION OF EMPLOYMENT AGREEMENT 

AND RELEASE AGREEMENT

1. Release of Claims Under the Age Discrimination and Employment Act. Executive
understands that as part of the Termination of Employment Agreement and Release Agreement (the
“Agreement”), he is receiving the portion of the Settlement Payment described under
Paragraph 3B of the Agreement that he would not otherwise be entitled to receive. Executive
further agrees that this portion of the Settlement Payment is good, valuable, and sufficient
consideration for all aspects of this Exhibit A to the Agreement. In return for Dlorah’s
performance of its obligations under Paragraph 3B of the Agreement, Executive agrees that on behalf
of himself and any other person or entity that could bring a claim on his behalf, releases Dlorah
and any subsidiaries, predecessors, successors, assigns and/or affiliated companies, businesses or
entities (including but not limited to National American University Holdings, Inc and National
American University (hereinafter, collectively referred to as the “Affiliates”)) and all of
their respective employee benefit plans, plan administrators, trustees, current and former
officers, agents, directors, employees, independent contractors, shareholders, attorneys,
accountants, insurers, representatives, predecessors, successors and assigns, both individually and
in any representative capacity (collectively, the “Released Parties”), from any claims
under the Age Discrimination in Employment Act of 1967, 29 U.S.C. 626 et. seq.

Executive further agrees that if any claim he releases in this Exhibit A to the Agreement is
prosecuted in his name before any court or administrative agency, he will waive any benefits he
might otherwise obtain through such prosecution and will not take any award of money or other
damages from such action or suit.

Notwithstanding the foregoing, this Exhibit A to the Agreement does not release any rights or
claims Executive may have under the Age Discrimination in Employment Act, which arise after he
signs this Exhibit A to the Agreement or which arise from acts occurring after he signs this
Exhibit A to the Agreement.

2. Opportunity to Consider and Seek Advice. Executive is hereby advised that he has the
right to consult with an attorney prior to signing this Exhibit A to the Agreement. Executive
understands that he may not sign and accept this Exhibit A to the Agreement until March 19, 2010.
Executive is hereby advised that he may take up to twenty-one (21) days to review and sign this
Exhibit A to the Agreement.

3. Opportunity to Rescind. Executive understands that he may rescind his release of claims
under the ADEA contained in this Exhibit A for any reason within seven (7) days after he has signed
it. If Executive decides to rescind his release of claims under the ADEA contained in this Exhibit
A and mails his notice of rescission, Executive understands that the notice of rescission must be
postmarked within the seven (7) day period and be addressed to Samuel D. Kerr, Esq., Provost,
General Counsel and Secretary, National American University Holdings, Inc., 5301 S. Highway 16,
Suite 200, Rapid City, SD 57701, and must be sent by certified mail, return receipt requested. If
Executive rescinds his release of claims under the ADEA, only those claims will be rescinded and
Executive will not receive the portion of the Settlement Payment described in Paragraph 3B of the
Agreement. Any rights and obligations Executive has under the remainder of the Agreement will
remain in effect.

4. Signature. Executive agrees that he has read this Exhibit A to the Agreement, know its
contents, and has signed it as a free and voluntary act after having had adequate opportunity to
consult with counsel of his choice and to consider its terms and conditions. This Exhibit A to the
Agreement is entered into without regard to who may or may not be correct in any understanding of
the facts or law relating to this matter.

IN WITNESS WHEREOF, Executive has executed this Exhibit A to the Agreement intending to be legally
bound thereby.

	 	 	 	 	 
	EXECUTIVE:
	 	 	 	 
	 
	 	 	 	 
	 

	 	  
	 	Date:                                                             
	Robert BuckinghamExhibit 10.2

Exhibit 10.2

RESTRICTED STOCK AWARD AGREEMENT

	 	 	 
	Name of Grantee: Dr. Ronald Shape
	Restricted Stock: 25,000

	 	Grant Date: March 19, 2010
	Fair Market Value on the Date of Grant (Per Share): $10.00/share

	 	

This Restricted Stock Award Agreement (this “Agreement”) is made effective as of March 19, 2010 by and between National
American University Holdings, Inc., a Delaware Corporation (the “Company”), and Dr. Ronald Shape, an employee of the
Company (the “Grantee”). The Restricted Stock Award represents a transfer of shares of common stock of the Company,
$0.0001 par value (“Common Stock”).

1. Restricted Stock Award. The Company hereby grants to the Grantee 25,000 of the Company’s authorized but unissued
shares of Common Stock (the “Shares”). The Shares are subject to certain restrictions with respect to ownership and
transferability, as set forth in this Agreement.

2. Restrictions. The Grantee shall be prohibited from selling, assigning, transferring, pledging, encumbering or
otherwise disposing of the Shares, except by will or the laws of descent and distribution, and the Shares shall be
subject to forfeiture unless and until the Shares vest as provided in Section 3 (the “Restrictions”).

3. Performance Targets. The Shares will vest according to the following schedule.

(a) For the fiscal year ending May 31, 2010, if the Company experiences a Net Profit of 10% or more of the
Gross Profit and the Grantee is employed with the Company as of May 31, 2010, the Restrictions on 8,333 Shares
shall lapse and the Shares will no longer be subject to the Restrictions. If the Performance Target is not
met, any unvested Shares shall be rolled over and shall be eligible for vesting in the next fiscal year.

(b) For the fiscal year ending May 31, 2011, if the Company experiences a Net Profit of 10% or more of the
Gross Profit and the Grantee is employed with the Company as of May 31, 2011, the Restrictions on 8,333 Shares
and, if applicable, any Shares rolled over from the previous fiscal year, shall lapse and the Shares will no
longer be subject to the Restrictions. If the Performance Target is not met, any unvested Shares shall be
rolled over and shall be eligible for vesting in the next fiscal year.

(c) For the fiscal year ending May 31, 2012, if the Company experiences a Net Profit of 10% or more of the
Gross Profit and the Grantee is employed with the Company as of May 31, 2012, the Restrictions on 8,334 Shares
and, if applicable, any Shares rolled over from the previous fiscal year(s), shall lapse and the Shares will
no longer be subject to the Restrictions. If the Company does not achieve such performance target, all
unvested Shares shall be automatically and immediately forfeited.

4. Cash Bonus for Taxes. At such time as the Grantee vests in the Shares, the Company will pay the Grantee a cash
bonus sufficient to pay any federal or state income or employment taxes associated with the vesting of the Restricted
Stock.

5. Calculation of Performance Target. The calculation of Net Profit and Gross Profit shall be determined as provided
in the Employment Agreement between the Company and the Grantee.

6. Termination Upon Death or Disability. If the Grantee’s employment is terminated as a result of death or disability
during a fiscal year, the employment requirement for the fiscal year in which employment is terminated as a result of
death or disability (but no other fiscal year) shall be deemed to be satisfied. If the performance target is otherwise
met for that fiscal year, the Grantee will vest in the Shares for such fiscal year as otherwise provided in this
Agreement. For purposes of this Agreement, termination as a result of disability shall mean a termination as a result
of the Grantee being unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment expected to result in death or that is expected to last for a continuous period of not
less than 12 months.

 

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7. Other Termination. If either the Grantee or the Company terminates the employment relationship between the Grantee
and the Company for any reason other than for death or disability, regardless of whether such termination is with or
without cause or good reason, all unvested Shares shall be forfeited effective immediately upon such termination.

8. Withholding Taxes. The Grantee is responsible to promptly pay any Social Security, Medicare, federal, state, and
local taxes due, including, but not limited to, those due as a result of the vesting of Shares under this Agreement.
The Company and its subsidiaries are authorized to deduct from any payment to the Grantee any such taxes required to be
withheld.

9. Beneficiary Designation. The Grantee may designate a beneficiary to receive payments that may be due in the event
of death. Any beneficiary may be named and the Grantee may change his beneficiaries at any time by submitting a
written designation form to the Company.

10. No Employment Contract. Nothing contained in this Agreement creates any right to the Grantee’s continued
employment or otherwise affects the Grantee’s status as an employee at will. The Grantee hereby acknowledges that the
Company and the Grantee each have the right to terminate the Grantee’s employment at any time for any reason or for no
reason at all, subject only to the terms of any written Employment Agreement between the Grantee and the Company or its
subsidiaries.

11. Status of Participant. Upon issuance of the Shares, the Grantee will be recorded as a registered stockholder of
the Company with respect to the Shares. The Company will promptly provide to the Grantee written confirmation of such
issuance and recordation. Upon issuance of the Shares, the Grantee will have all rights of a holder of common stock of
the Company, including, without limitation, voting rights. Rights to dividends and distributions in respect of the
Shares shall be credited on the Company’s books and records and accrued in favor of the Grantee, but shall not be paid
unless and until the Restriction is removed. Any dividends and distributions accrued under this Section 11 shall be
paid within 10 days after the Restriction is removed.

12. Transferability. The Grantee shall not sell, transfer, assign or otherwise dispose of any Shares while such Shares
are subject to the Restrictions. Notwithstanding anything else in this Agreement to the contrary, such Restrictions
shall not apply to any transfer or gift during lifetime or death of the Grantee to a Permitted Transferee provided
that: (a) the Grantee informs the Company of such transfer prior to effecting it; and (b) the transferee or donee
shall furnish the Company with a written agreement to be bound by and comply with all provisions of this Agreement.
For purposes of this Agreement, “Permitted Transferee” means any trust if the trust is revocable by the Grantee and if
the Grantee is the primary beneficiary of that trust during his or her lifetime.

13. Book Entry Registration of the Shares. The Company will issue the Shares by registering the Shares in book entry
form in the Grantee’s name and the applicable restrictions will be noted in the Company’s records and book entry
system. No certificate(s) representing the Shares will be issued unless and until the Restrictions have been removed.
Subject to provision by the Grantee of any documentation reasonably requested by the Company, upon written request by
the Grantee, the Company will provide such documentation as is reasonably necessary to (a) remove any restrictions
under this Agreement with respect to the Shares, or (b) otherwise facilitate a lawful transfer of the Shares pursuant
to the terms and conditions of this Agreement.

14. Restrictive Legends. The restrictions noted in the Company’s records and any certificate or certificates
representing the Shares shall bear the following legend in substantially the following form (as well as any other
legends required by applicable state and federal corporate securities laws) as reasonably deemed appropriate by the
Company:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A
RESTRICTED STOCK AWARD AGREEMENT DATED EFFECTIVE AS OF MARCH 19, 2010 AND MAY ONLY
BE TRANSFERRED IN COMPLIANCE THEREWITH.

-2-

 

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15. Section 83(b) Election. The Grantee hereby acknowledges that he may file an election pursuant to Section 83(b) of
the Code to be taxed currently on the Fair Market Value of the Shares (less any purchase price paid for the Shares),
provided that such election must be filed with the Internal Revenue Service no later than thirty (30) days
after the grant of such Shares. The Grantee will seek the advice of her own tax advisors as to the advisability of
making such a Section 83(b) election, the potential consequences of making such an election, the requirements for
making such an election, and the other tax consequences of the Restricted Stock Award under federal, state, and any
other laws that may be applicable. The Company and its affiliates and agents have not and are not providing any tax
advice to the Grantee.

16. Notices. Notices required hereunder shall be given in person or by registered mail to the address of the Grantee
shown on the records of the Company, and to the Company at its respective principal executive offices.

17. Acknowledgment. The Grantee’s receipt of this Agreement constitutes the Grantee’s agreement to be bound by the
terms and conditions of this Agreement. The Grantee’s signature is not required in order to make this Agreement
effective.

18. Governing Terms. Any Shares transferred pursuant to this Agreement are subject to the restrictions, terms and
conditions set forth in this Agreement and in the National American University Holdings, Inc. 2009 Stock Option and
Compensation Plan (the “Plan”), the terms of which are incorporated herein by reference. Notwithstanding the
foregoing, the restrictions contained in Section 4(d) of the Plan shall not apply. In the event of any conflict
between the terms of this Agreement and the Plan, the terms of the Plan shall govern. Capitalized terms used but not
defined shall have the meaning ascribed thereto in the Plan.

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.

By:   /s/ Robert Buckingham

                 
                               

Its   Chairman                  
                       
                                 

GRANTEE

  /s/ Ronald Shape
  
                       
                                      

Ronald Shape, Ed. D.

-3-

 

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