Esi Excess Pension Plan

Exhibit 10.19


ESI EXCESS PENSION PLAN


TABLE OF CONTENTS
Page
---- ARTICLE I ESTABLISHMENT AND PURPOSE OF THE PLAN . . . . . . . . . . . . . . . 1
Section 1.01. Establishment of the Plan. . . . . . . . . . . . . . 1
Section 1.02. Purpose of the Plan. . . . . . . . . . . . . . . . . 1


ARTICLE II DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1


ARTICLE III ELIGIBILITY AND MEMBERSHIP . . . . . . . . . . . . . . . . . . . . 3
Section 3.01. Eligibility. . . . . . . . . . . . . . . . . . . . . 3
Section 3.02. Membership . . . . . . . . . . . . . . . . . . . . . 3


ARTICLE IV BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 4.01. Amount of Benefit . . . . . . . . . . . . . . . . . 3
Section 4.02. Form and Timing of Payment . . . . . . . . . . . . . 3
Section 4.03. Death Benefits . . . . . . . . . . . . . . . . . . . 4
Section 4.04. Small Benefits . . . . . . . . . . . . . . . . . . . 4
Section 4.05. Facility of Payment . . . . . . . . . . . . . . . . 4


ARTICLE V NONALIENATION OF BENEFITS . . . . . . . . . . . . . . . . . . . . . 4


ARTICLE VI ADMINISTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 6.01. Plan Administrator . . . . . . . . . . . . . . . . . 4
Section 6.02. Removal and Replacement of Committee Members . . . . 4
Section 6.03. Disqualification and Resignation . . . . . . . . . . 5
Section 6.04. Chairman, Services, and Counsel . . . . . . . . . . 5
Section 6.05. Meetings . . . . . . . . . . . . . . . . . . . . . . 5
Section 6.06. Quorum . . . . . . . . . . . . . . . . . . . . . . . 5
Section 6.07. Action Without Meeting . . . . . . . . . . . . . . . 5
Section 6.08. Correction of Defects . . . . . . . . . . . . . . . 5
Section 6.09. Reliance Upon Legal Counsel. . . . . . . . . . . . . 5
Section 6.10. Expenses . . . . . . . . . . . . . . . . . . . . . . 5
Section 6.11. Indemnification. . . . . . . . . . . . . . . . . . . 5
Section 6.12. Powers and Duties of Committee . . . . . . . . . . . 6


ARTICLE VII BENEFIT CLAIMS PROCEDURES . . . . . . . . . . . . . . . . . . . . 6


ARTICLE VIII NATURE OF INTEREST OF MEMBER . . . . . . . . . . . . . . . . . . . 7
Section 8.01. Unsecured General Creditor . . . . . . . . . . . . . 7
Section 8.02. Trust Fund . . . . . . . . . . . . . . . . . . . . . 7


ARTICLE IX CONTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 7
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Section 9.01. No Member Contributions. . . . . . . . . . . . . . . 7
Section 9.02. Employer Contributions . . . . . . . . . . . . . . . 7


ARTICLE X AMENDMENT AND TERMINATION8
Section 10.01. Authority to Amend. . . . . . . . . . . . . . . . . 8
Section 10.02. Merger, Consolidation, or Change in Control . . . . 8


ARTICLE XI CONTINUED APPROVAL OF PENSION PLANS . . . . . . . . . . . . . . . . 8


ARTICLE XII MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 12.01. No Enlargement of Employee Benefits . . . . . . . . 8
Section 12.02. Board of Directors . . . . . . . . . . . . . . . . 9
Section 12.03. No Impact on Other Benefits . . . . . . . . . . . . 9
Section 12.04. No Individual Liability . . . . . . . . . . . . . . 9
Section 12.05. Notice of Address . . . . . . . . . . . . . . . . . 9
Section 12.06. Data . . . . . . . . . . . . . . . . . . . . . . . 9
Section 12.07. Misstatements . . . . . . . . . . . . . . . . . . . 9
Section 12.08. Taxes . . . . . . . . . . . . . . . . . . . . . . . 9
Section 12.09. Governing Laws . . . . . . . . . . . . . . . . . . 9
Section 12.10. Severability . . . . . . . . . . . . . . . . . . . 10
Section 12.11. Headings . . . . . . . . . . . . . . . . . . . . . 10


ARTICLE XIII PARTICIPATION BY OTHER EMPLOYERS . . . . . . . . . . . . . . . . . 10
Section 13.01. Adoption of the Plan . . . . . . . . . . . . . . . 10
Section 13.02. Withdrawal from Participation . . . . . . . . . . . 10
Section 13.03. ESI as Agent for Employers . . . . . . . . . . . . 10


ARTICLE IV CONTINUANCE BY A SUCCESSOR . . . . . . . . . . . . . . . . . . . . 10


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ESI EXCESS PENSION PLAN


ARTICLE I
ESTABLISHMENT AND PURPOSE OF THE PLAN


SECTION 1.01. ESTABLISHMENT OF THE PLAN. ESI hereby establishes the Plan, effective as of June 9, 1998, as an unfunded plan of deferred compensation for the benefit of a select group of management and highly compensated employees.


SECTION 1.02. PURPOSE OF THE PLAN. The purpose of the Plan is to restore benefits earned, but not available, to Eligible Employees because of certain limits imposed on qualified retirement plan benefits by the Code.


ARTICLE II
DEFINITIONS


As used in this document, the following words and phrases, when capitalized, will have the meaning set forth below, unless a different meaning is plainly required by the context:


SECTION 2.01. "Actuarial Equivalent" means "Actuarial Equivalent" as defined in Section 2.01 of the Pension Plan.


SECTION 2.02. "Annuity Starting Date" means, with respect to a Member, the Member's "Annuity Starting Date," as defined in Section 2.01 of the Pension Plan.


SECTION 2.03. "Beneficiary" means, with respect to each Member, the person or persons who are to receive benefits under the Pension Plan after the Member's death.


SECTION 2.04. "Board of Directors" means the duly constituted board of directors of ESI.


SECTION 2.05. "Claimant" means a person submitting a claim for benefits under the Plan.


SECTION 2.06. "Code" means the Internal Revenue Code of 1986, as amended from time to time, and interpretive rulings and regulations.


SECTION 2.07. "Committee" means the committee established pursuant to Section 6.01 to serve as administrator of the Plan.


SECTION 2.08. "Eligible Employee" means an Employee who is (1) a highly compensated employee within the meaning of Code subsection 414(q), (2) eligible to participate
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in the Pension Plan, and (3) designated by the compensation committee of the Board of Directors as a key management employee who is eligible for membership in the Plan pursuant to Article III.


SECTION 2.09. "Employee" means any person employed by the Employer as a salaried employee, who is paid from a payroll maintained in the United States, and who receives compensation that the Employer initially reports on the Federal Wage and Tax Statement (Form W-2).


SECTION 2.10. "Employer" means ESI and any Related Employer that adopts the Plan pursuant to Article XIII.


SECTION 2.11. "ESI" means ITT Educational Services, Inc. and any corporation that succeeds to its business and adopts the Pension Plan and this Plan.


SECTION 2.12. "Limitations" means (a) the limitation on compensation imposed by Code paragraph 401(a)(17), as reflected in the applicable provisions of the Pension Plan; and (b) the limitations on benefits imposed by Code subsections 415(b) and (e), as reflected in the applicable provisions of the Pension Plan.


SECTION 2.13. "Maximum Benefit" means the maximum benefit permitted by Limitations payable to a Member under the Pension Plan.


SECTION 2.14. "Member" means any Employee who has been designated as an Eligible Employee pursuant to Article III and for whom benefits are to be provided under the Plan.


SECTION 2.15. "Pension Plan" means the Code qualified pension plan known as the "ESI Pension Plan," as amended from time to time.


SECTION 2.16. "Plan" means the unfunded, nonqualified pension plan known as the "ESI Excess Pension Plan," as set forth in this instrument, as it may be amended from time to time.


SECTION 2.17. "Plan Year" means the period from June 9, 1998 through December 31, 1998, and any subsequent calendar year.


SECTION 2.18. "Related Employer" means any employer that, together with ESI, is under common control or a member of an affiliated service group, as determined under Code subsections 414(b), (c), (m), and (o).


SECTION 2.19. "Unrestricted Benefit" means, with respect to any Member, the benefit to which the Member would have been entitled under Pension Plan, if that benefit had been determined without regard to the Limitations.


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The use of singular and masculine words are for practical purposes only and will be deemed to include the plural and feminine, respectively, unless the context plainly indicates a distinction. Certain other definitions, as required, appear in the following Articles of the Plan.


ARTICLE III
ELIGIBILITY AND MEMBERSHIP


SECTION 3.01. ELIGIBILITY. The Plan is intended to be an unfunded plan of deferred compensation for a select group of management and highly compensated Employees. An Employee shall be an Eligible Employee and thereby eligible for membership in this Plan only if (1) the Employee is a highly compensated employee within the meaning of Code subsection 414(q); (2) the Employee is eligible to participate in the Pension Plan; and (3) the Employee is designated by the Compensation Committee of the Board of Directors as a key management employee who is eligible for membership in the Plan.


SECTION 3.02. MEMBERSHIP.


(a) An Eligible Employee shall become a Member as of the date
designated by the compensation committee of the Board of Directors.


(b) A Member shall cease to be a Member as of the date his
benefits under the Plan are ...