EX-10.3



 Exhibit 10.3 

2015 Cash-Settled RSU Agreement (Non-Plan) 

(Performance-Based) 
 Ronald
McCray 
 CAREER EDUCATION CORPORATION 

CASH-SETTLED RESTRICTED STOCK UNIT AGREEMENT 

This CASH-SETTLED RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) dated March 6, 2015 (the “Grant
Date”) is by and between Career Education Corporation, a Delaware corporation (the “Company”), and Ronald McCray (the “Grantee”). 

The Company hereby grants such award to the Grantee. Notwithstanding that the award is not, and shall not be deemed to be, granted under the
Company’s 2008 Incentive Compensation Plan, as amended (the “Plan”), the award shall be subject to all of the terms of the Plan as if it had been granted thereunder, provided, however, that the terms of this Agreement shall
control with respect to such matters expressly addressed herein, and all capitalized terms not otherwise defined in this Agreement shall have the meaning set forth in Plan. 

1. Grant of Restricted Stock Units. Subject to and upon the terms and conditions set forth in this Agreement and the Plan, the Committee granted to the
Grantee 11,324 Restricted Stock Units (the “RSUs”) on the Grant Date, and the Grantee hereby accepts the grant of the RSUs as set forth herein. 

2. Limitations on Transferability. Except in the event of the death of the Grantee, at any time prior to the Settlement Date, the RSUs, or any interest
therein, cannot be directly or indirectly transferred, sold, assigned, pledged, hypothecated, encumbered or otherwise disposed. 
 3. Vesting. 

(a) Eligibility for Vesting. The number of RSUs eligible to become Vested RSUs pursuant to Section 3(b) will be determined based
on the date Grantee ceases to be employed by the Company in the capacity of Interim President and Chief Executive Officer (the “Separation Date”), as follows: 

 

					
	 If the Separation Date is on or after
	  	# of RSUs eligible to become Vested
RSUs (the “Eligible RSUs”)	 
	 March 6, 2015
	  	 	2,831	  
	 April 1, 2015
	  	 	5,662	  
	 July 1, 2015
	  	 	8,493	  
	 October 1, 2015
	  	 	11,324	  

 Any RSUs which have not become Eligible RSUs pursuant to this Section 3(a) on or prior to the Separation
Date shall be immediately forfeited to the Company on the Separation Date. 
 (b) Vesting Date. Subject to the provisions of Sections
5 and 6 of this Agreement, the Eligible RSUs shall cease to be restricted and shall become non-forfeitable (thereafter being referred to as “Vested RSUs”) on March 14, 2016 (the “Vesting Date”), but only to the
extent and in the proportion determined pursuant to the Performance Criteria and Payout Scale set forth on Exhibit A. 







 Notwithstanding the foregoing, and subject to Sections 5 and 6 below, in the event that
(i) the Grantee incurs a Termination of Service prior to the Vesting Date, or (b) any Eligible RSUs do not become Vested RSUs on the Vesting Date due to the application of the Performance Criteria and Payout Scale set forth on Exhibit
A, then in either case the RSUs shall be immediately forfeited to the Company. For the avoidance of doubt, the Company and the Grantee acknowledge that, pursuant to the Plan, a Termination of Service does not occur until the Grantee ceases
providing services to the Company in any capacity, including as a director or consultant. 
 4. Crediting and Settling RSUs. 

(a) RSU Accounts. The Company shall establish an account on its books for each grantee who receives a grant of RSUs (the “RSU
Account”). The RSUs granted hereby shall be credited to the RSU Account as of the Grant Date. The RSU Account shall be maintained for record keeping purposes only and the Company shall not be obligated to segregate or set aside assets
representing amounts credited to the RSU Account. The obligation to make distributions of amounts credited to the RSU Account shall be an unfunded, unsecured obligation of the Company. 

(b) Settlement of RSU Accounts. The Company shall settle the RSU Account by delivering to the holder thereof (who may be the Grantee or
his or her Beneficiary, as applicable) an amount in cash equal to the product of (i) the number of Vested RSUs in the RSU Account as of the applicable Settlement Date, multiplied by (ii) the Fair Market Value of a Share on the
Vesting Date (subject to applicable tax withholding obligations set forth in Section 24 of this Agreement or otherwise required by any taxing authority). The Settlement Date for all RSUs credited to the RSU Account shall be as soon as
administratively practical following the Vesting Date (or the relevant vesting date set forth in Section 5(a) hereof), subject to achievement of the Performance Criteria, but in no event shall such Settlement Date be later than March 15 of
the calendar year following the calendar year in which the Vesting Date (or the relevant vesting date set forth in Section 5(a) hereof) occurs. Notwithstanding the foregoing, in no case will the amount due to the Grantee in respect of an RSU
exceed an amount equal to five times (5x) the Fair Market Value of a Share on the Grant Date. 
 5. Termination of Service. Subject to
Section 6, the provisions of this Section 5 shall apply in the event the Grantee incurs a Termination of Service at any time prior to the Vesting Date set forth in Section 3: 

(a) If the Grantee incurs a Termination of Service because of his or her death or Disability, any Eligible RSUs that had not become Vested
RSUs prior to the date of the Termination of Service shall become Vested RSUs, and, as of the applicable Settlement Date, the Grantee (or his or her Beneficiary, as applicable) shall be entitled to receive an amount determined pursuant to
Section 4 hereof. 
 (b) If the Grantee incurs a Termination of Service for any reason other than his or her death or Disability, then
any RSUs that had not become Vested RSUs prior to the date of the Termination of Service shall be immediately forfeited to the Company. 
 6. Change in
Control. Upon a Change in Control, the Grantee will have such rights with respect to the RSUs as are provided for in the Plan. 

  
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 7. Adjustment in RSUs. The Committee may make or provide for such adjustments as provided for in
Section 4.2 of the Plan. 
 8. Plan Amendment. No discontinuation, modification, or amendment of the Plan may, without the written consent of
the Grantee, adversely affect the rights of the Grantee under this Agreement, except as otherwise provided under the Plan with respect to awards granted under the Plan. 

9. No Stockholder Rights. The RSUs represent only the right to receive cash pursuant to the terms hereof and shall not represent an equity security of
the Company and shall not carry any voting or dividend rights. 
 10. Employment Rights. This Agreement is not a contract of employment, and the
terms of employment of the Grantee or other relationship of the Grantee with the Company shall not be affected in any way by this Agreement except as specifically provided herein. The Grantee’s execution or acceptance of this Agreement shall
not be construed as conferring any legal rights upon the Grantee for a continuation of an employment or other relationship with the Company, nor shall it interfere with the right of the Company to discharge the Grantee and to treat him or her
without regard to the effect which such treatment might have upon him or her as a Grantee. 
 11. Disclosure Rights. Except as required by applicable
law, the Company (or any of its affiliates) shall not have any duty or obligation to disclose any information to a record or beneficial holder of RSUs or Vested RSUs. 

12. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by and enforced in accordance with the laws of
the State of Delaware (other than its laws respecting choice of law). 
 13. Compliance with Laws and Regulations. Notwithstanding anything
herein to the contrary, the Company shall not be obligated to pay amounts due hereunder unless and until the Company is advised by its counsel that such payment is in compliance with all applicable laws, regulations of governmental authority, and
the requirements of any exchange upon which Shares are traded. The Company may require, as a condition of such payment, and in order to ensure compliance with such laws, regulations and requirements, that the Grantee make such covenants, agreements,
and representations as the Company, in its sole discretion, considers necessary or desirable. 
 14. Successors and Assigns. Except as otherwise
expressly set forth in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the succeeding administrators, heirs and legal representatives of the Grantee and the successors and assigns of the Company.

 15. No Limitation on Rights of the Company. This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize
or otherwise make changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. 

16. Notices. Any communication or notice required or permitted to be given hereunder shall be in writing, and, if to the Company, to its principal
place of business, attention: Secretary, and, if to the Grantee, to the address appearing on the records of the Company. Such communication or notice shall be delivered personally or sent by certified, registered, or express mail, postage


  
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prepaid, return receipt requested, or by a reputable overnight delivery service. Any such notice shall be deemed given when received by the intended recipient. Notwithstanding the foregoing, any
notice required or permitted hereunder from the Company to the Grantee may be made by electronic means, including by electronic mail to the Company-maintained electronic mailbox of the Grantee, and the Grantee hereby consents to receive such notice
by electronic delivery. To the extent permitted in an electronically delivered notice described in the previous sentence, the Grantee shall be permitted to respond to such notice or communication by way of a responsive electronic communication,
including by electronic mail. 
 17. Construction. Notwithstanding any other provision of this Agreement, including that the RSUs are not granted
under the Plan, it is the intent of the parties that the RSUs are granted consistent with the terms of the Plan and shall be deemed in all respects limited by and subject to the express provisions of the Plan as such provisions would apply to awards
granted under the Plan. Notwithstanding the terms of the Plan, this Agreement shall control with respect to such matters expressly addressed herein. The interpretation and construction by the Committee of the Plan, this Agreement and any such rules
and regulations adopted by the Committee for purposes of administering this Agreement consistent herewith, shall be final and binding upon the Grantee and all other persons. 

18. Entire Agreement. This Agreement, together with the terms of the Plan as if the RSUs had been granted under the Plan, constitute the entire
obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction. 

19. Amendment. This Agreement may be amended consistent with the terms of the Plan, but except as provided in the Plan no such amendment shall
adversely affect the Grantee’s rights under the Agreement without the Grantee’s written consent, unless otherwise permitted by the Plan with respect to awards granted under the Plan. 

20. Waiver; Cumulative Rights. The failure or delay of either party to require performance by the other party of any provision hereof shall not affect
its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time. 

21. Counterparts. This Agreement may be signed in two counterparts, each of which shall be an original, but both of which shall constitute but one and
the same instrument. 
 22. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement. 
 23. Severability. If any provision of this Agreement shall for any reason be held to be invalid or
unenforceable, such invalidity or unenforceability shall not effect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision were omitted. 

24. Tax Consequences. Payments made pursuant hereto shall be subject to all required tax withholding obligations. 

25. Receipt of Plan. The Grantee acknowledges receipt of a copy of the Plan, and represents that the Grantee is familiar with the terms and provisions
thereof, and hereby accepts the RSUs subject to all the terms and provisions of this Agreement and acknowledges and agrees that the 

  
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terms of the Plan shall apply to the RSUs as if the RSUs had been granted under the Plan; provided, however, this Agreement shall control with respect to such matters expressly addressed herein.
The Committee shall interpret and construe the Plan and this Agreement, and its interpretation and determination shall be conclusive and binding upon the parties hereto and any other person claiming an interest hereunder, with respect to any issue
arising hereunder or thereunder. 
 26. Confidentiality. During the Grantee’s employment with the Company and/or any of its subsidiaries and at
all times following the Grantee’s termination of employment with the Company for any reason, the Grantee will not, in any way, directly or indirectly, either for the Grantee or any other person or entity, whether paid or unpaid, reveal,
divulge, or make known to any person, firm or corporation any confidential information, or take any other action, in violation of the Confidential Information Policy in the Company’s Code of Business Conduct & Ethics. Should the
Grantee breach the terms of this Section 26, the Company reserves the right to enforce the terms herein in court and seek any and all remedies available to it in equity and law, and the Grantee agrees to pay the Company’s attorneys’
fees and costs should it succeed on its claim(s). Further, should the Grantee breach the terms of this Section 26, the Grantee will forfeit any right to the RSUs or any amounts issued hereunder, subject to the terms and conditions of the Plan,
and the Grantee agrees to pay the Company’s attorneys’ fees and costs incurred in recovering such RSUs or amounts issued pursuant hereto. 
 27.
Cooperation. In the event of any pending or threatened investigation, proceeding, lawsuit, claim or legal action against or involving the Company, the Grantee acknowledges and agrees to cooperate to the fullest extent possible in the
investigation, preparation, prosecution, or defense of the Company’s case, including, but not limited to, the execution of affidavits or documents, providing of information requested by the Company or the Company’s counsel, and meeting
with Company representatives or the Company’s counsel. Nothing in this paragraph shall be construed as suggesting or implying that the Grantee should testify in any way other than truthfully or provide anything other than accurate,
truthful information.
 28. Clawback Policy. By accepting the grant of RSUs pursuant to this Agreement, the Grantee hereby acknowledges that the
Board has adopted a policy pursuant to which the Grantee may be required to repay amounts otherwise paid pursuant to this Agreement to the extent (a) such amounts were predicated upon achieving certain financial results that were subsequently
the subject of a material restatement of Company financial statements filed with the Securities and Exchange Commission; (b) the Board determines the Grantee engaged in intentional misconduct that caused or substantially caused the need for the
material restatement; and (c) a lower payment would have been made to the Grantee based upon the restated financial results (collectively, the “Policy”). By accepting the grant of RSUs pursuant to this Agreement, the Grantee
hereby agrees to be bound by the Policy and to repay amounts that Grantee may be required to be repay thereunder. 
 29. Condition to Accept
Agreement. This Agreement will be null and void unless the Grantee indicates his or her acceptance of the award of the RSUs provided for hereunder by signing, dating and returning this Agreement to the Company on or before
                    . 
 [Signature
Page Follows] 

  
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 IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first
written above. 
  

	
	CAREER EDUCATION CORPORATION
	
	
	[Name]
	[Title]


 ACCEPTANCE (OR REJECTION) OF AWARD BY GRANTEE 

The undersigned, the Grantee, hereby: (select one of the options below) 
  

			
			ACCEPTS the award of RSUs as set forth in this Agreement and agrees to be bound by the terms and conditions of this Agreement and the terms of the Plan as if the RSUs had been granted under the Plan.
		
			REJECTS the award of RSUs contemplated by this Agreement and forfeits all rights relating thereto. Please note that a rejection of this award has no impact on any other award of options, restricted stock or restricted stock units
you have previously received, including any restrictive covenants you are subject to pursuant to the agreement(s) governing your previous awards.

  

									
	Date:		  
				  

							(Signature of Grantee)
					
							Print Name:		  


 Please sign and return a fully executed .pdf of this Restricted Stock Unit Agreement by
                    to                     via
                    . Failure to do so will result in forfeiture of the award. Please retain a copy of this signed Restricted Stock Unit
Agreement for your records. 

  
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 Exhibit A 

Performance Criteria and Payout Scale 
  

					
	 Actual 2015 EBITDA as a percentage of Targeted EBITDA(1)
	  	Percent of Eligible RSUs to become
Vested RSUs pursuant to Section 3(b)	 
	 115%
	  	 	100	% 
	 100%
	  	 	60	% 
	 85%
	  	 	20	% 
	 <85%
	  	 	0	% 

 Straight line interpolation between points. 

 

	(1)	“Actual 2015 EBITDA” shall be the EBITDA at the corporate organizational level determined in accordance with, and used for purposes of determining the EBITDA Performance Factor under, the 2015 Annual
Incentive Award Program pursuant to the Plan (the “AIP”). “Targeted EBITDA” shall have the meaning set forth in the AIP with respect to the Company (and its affiliates). 


  
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