Document:

WunningAgreement

EXHIBIT 10.2 
EQUITY COMPENSATION AGREEMENT
THIS AGREEMENT, is made and entered into as of December 15,  2014 (the “Effective Date”) by and between Caterpillar Inc., a Delaware corporation (the “Company”), and Steven H. Wunning (the “Executive”).
WHEREAS, the Company recognizes and appreciates the service provided by the Executive during his career with the Company, including his leadership, strategic vision and contributions to the growth and success of the Company; and
WHEREAS, the Executive is a Group President of the Company who is subject to Section 16 of the Securities Exchange Act of 1934; and
WHEREAS, the Company maintains the Caterpillar Inc. 2006 Long-Term Incentive Plan (the “2006 LTIP”) and the Caterpillar Inc. 2014 Long-Term Incentive Plan (the “2014 LTIP”); and
WHEREAS, in connection with the Executive’s retirement from the Company effective February 1, 2015 (the “Retirement Date”), and in exchange for the Executive’s continued services through the Retirement Date, the Executive’s transition of such services to his successor and the Executive’s execution and non-revocation of a general release of claims in favor of the Company and the Executive agreeing to comply with the ongoing obligations set forth in Article II hereof, the Executive will receive: (1) a grant of a stock option under the 2014 LTIP, subject to the terms contained herein; and (2) acceleration of vesting of all restricted stock units previously granted to Executive pursuant to the Company’s Chairman’s Award Program under the 2006 LTIP, subject to the terms contained herein.
NOW, THEREFORE, the Company and the Executive hereby agree as follows:
I.
EQUITY COMPENSATION
1.1    Option Grant. Subject to the condition precedent described in Section 2.1, this
Agreement evidences the grant to the Executive on January 5, 2015 (the “Grant Date”), pursuant to the terms of the 2014 LTIP, of a stock option to purchase shares of common stock of the Company (the “Option”), with an aggregate Grant Date value of $4,000,000.00 calculated based on the Company’s Black-Scholes option pricing methodology.

1.2    Option Price. The purchase price of each share of common stock of the Company
subject to the Option shall be the Fair Market Value of the common stock of the Company on the Grant Date (the “Option Price”). For this purpose, Fair Market Value shall mean the mean between the high and low prices at which a share of common stock of the Company is traded on the New York Stock Exchange.

1.3    Type of Option. The grant is not intended to be, and will not be treated as, an incentive
stock option as that term is described in Section 422(b) of the Internal Revenue Code of 1986, as amended (the “Code”).
1.4    Term of Option. Unless the Option terminates earlier pursuant to other provisions of
this Agreement, the Option shall expire on the fifth anniversary of the Retirement Date.
1.5    Vesting. Subject to the terms and conditions of this Agreement:
(a)Vesting and Exercisability of Option. Except as provided in Section 1.6, the Option shall become vested upon the Retirement Date.
(b)Acceleration of Vesting of Chairman’s Awards. Subject to the condition precedent described in Section 2.1, any and all restricted stock units previously granted to Executive pursuant to the Company’s Chairman’s Award Program under the 2006 LTIP that are outstanding and unvested as of the day immediately prior to the Retirement Date shall become vested, to the extent vesting is not otherwise automatic, upon the Retirement Date. Such restricted stock units shall be subject to the terms, conditions and provisions of the 2006 LTIP and the governing award documents.
1.6    Executive’s Death. If Executive dies on or after the Grant Date, to the extent that the
Option is not then vested, the Option shall immediately become fully vested and shall remain exercisable for the remainder of the term of the Option. Executive may designate a beneficiary (or beneficiaries) to whom the Option will be transferred upon Executive’s death in accordance with procedures established by the Company. If Executive does not designate a beneficiary, the option will be transferred to the Executive’s estate.
1.7    Exercise. The Option may only be exercised through the 2014 LTIP’s designated
administrator, currently E*TRADE, or through such other means as the Company may designate. Executive may exercise the Option by providing notice of exercise, in a manner specified by the Company, setting forth the number of shares to be exercised, accompanied by full payment for the shares. The exercise price shall be payable at Executive’s election by:
(a)tendering cash, or

(b)tendering previously acquired shares of common stock of the Company having a Fair Market Value (as defined in Section 1.2 of this Agreement) equal to the exercise price, or
(c)except as may be prohibited by applicable law, a broker-dealer, acceptable to the Company and to whom Executive submitted an irrevocable notice of exercise, tendering cash; or
(d)any combination of (a), (b) or (c).
1.8    Transferability. Subject to certain exceptions set forth in the 2014 LTIP, the Option is
only exercisable by Executive (or Executive’s beneficiary, estate or representative, as applicable) and may not be assigned, transferred, pledged or hypothecated in any way. The Option is not subject to execution, attachment or similar process. Any attempt at such, contrary to the provisions of the 2014 LTIP, will be null and void and without effect.
1.9    Voting Rights, Dividends and Other Distributions. During the period between the
Grant Date and the date the Option is exercised and the shares subject to option are issued or delivered (the “Restriction Period”), Executive (or Executive’s beneficiary, estate or representative, as applicable) is not entitled to any voting rights with respect to the Option. From and after the date shares are actually issued or delivered, Executive (or Executive’s beneficiary, estate or representative, as applicable) will have full voting rights with respect to those shares. Similarly, during the Restriction Period, Executive (or Executive’s beneficiary, estate or representative, as applicable) will not receive or be credited with dividends or any other distributions (e.g., dividend equivalents) with respect to the Option. From and after the date shares are actually issued or delivered, Executive (or Executive’s beneficiary, estate or representative, as applicable) will have dividend rights with respect to those shares.
1.10 Withholding. The Company may be required to withhold taxes upon exercise of the Option and in connection therewith, the Company will withhold that number of shares that would satisfy the withholding obligation from the shares otherwise to be issued or delivered to Executive, unless another method of withholding is approved by the Committee. The following conditions apply to such withholding: (a) the value of the shares of Common Stock withheld must equal the minimum withholding obligation; and (b) the value of the shares of Common Stock withheld shall be the Fair Market Value (as defined in Section 1.2 of this Agreement) determined as of the exercise date.
1.11 Acceptance. The Executive may be required to electronically accept the Option within Executive’s stock plan account with the Company’s stock plan administrator according to procedures then in effect. Execution of this Agreement by Executive constitutes Executive’s consent to the terms of the 2014 LTIP and this Agreement.
1.12 Effect on Other Benefits. This Agreement and the Option (and any exercise thereof) is not intended to and shall not impact the coverage of or the amount of any other employee benefit plans 

in which Executive participates that are sponsored by the Company and any of its subsidiaries or affiliates.
1.13 Option Subject to Forfeiture, Clawback and Setoff. The Option (and its exercise) and the restricted stock units accelerated pursuant to Section 1.5(b) (the “RSUs”) are subject to certain forfeiture conditions set forth in the 2014 LTIP and the 2006 LTIP, which, in the event such conditions are determined to have occurred, may result in immediate forfeiture and cancellation of the Option and the RSUs or an obligation to repay the Company the total amount of award gain realized upon exercise of the Option or the vesting of the RSUs. Also, the Company generally may deduct from and set off against any amounts the Company owes to Executive, including amounts payable in connection with the Option or the RSUs, such amounts Executive may owe to the Company.
1.14 Decisions of Board or Committee. The Caterpillar Inc. Board of Directors (the “Board”) or the Compensation and Human Resources Committee thereof (the “Committee”) shall have the right to resolve all questions which may arise in connection with the Option. Any interpretation, determination or other action made or taken by the Board or the Committee regarding the 2014 LTIP or the Option shall be final, binding and conclusive.
1.15 Administration. The Option shall at all times be subject to the terms, conditions and provisions of the 2014 LTIP, which are incorporated by reference, and the 2014 LTIP shall be administered in accordance with the terms of, and as provided in, the 2014 LTIP. In the event of conflict between the terms and provisions of this Agreement and the terms, conditions and provisions of the 2014 LTIP, the terms, conditions and provisions of the 2014 LTIP shall control.
II.
CONDITION PRECEDENT; EXECUTIVE’S ONGOING OBLIGATIONS
2.1    Condition Precedent. Except as provided in Section 1.6, the Option and the acceleration
of vesting provided under this Agreement are expressly conditioned on (a) Executive not resigning his employment with the Company, or being terminated by the Company for “Cause” (as such term is defined in the 2014 LTIP) prior to the Retirement Date, (b) Executive’s termination of his employment with the Company due to his retirement effective as of the Retirement Date, (c) the Executive executing, and not revoking, the Release as provided in Section 2.4, and (d) Executive complying with all requirements of this Agreement, including without limitation Sections 2.2, 2.3, 2.5, 2.6 and 2.7. For avoidance of doubt, if Executive’s employment is terminated either by the Company for Cause or voluntarily by Executive prior to the Retirement Date, if Executive does not terminate his employment with the Company in accordance with the previous sentence, or if Executive fails to execute or revokes the release, or violates any other provision of this Agreement, 

the Option shall be forfeited in its entirety and the acceleration of vesting provided under this Agreement shall not occur.
2.2    Restrictive Covenants. For 12 months following the Retirement Date, Executive will
not, directly or indirectly, without the Company’s prior written consent, do any of the following:
(a)Solicit any business competitive with any Company business from any person or entity who: (i) was a Company provider or customer within the 18 months before the Retirement Date and (ii) with whom Executive had contact to further the Company’s business or for whom Executive performed services, or supervised the provision of services for, during Executive’s employment;
(b)Hire, employ, recruit or solicit any Company employee or consultant who possesses confidential information of the Company;
(c)Induce or influence any Company employee, consultant, customer or provider to terminate his, her or its employment or other relationship with the Company;
(d)Engage or participate in, or in any way render services or assistance to, any business that competes, directly or indirectly, with any Company product or service that Executive participated in, engaged in, or had Confidential Information regarding, in any geographic territory over which Executive had responsibilities, during the 18 months before the Retirement Date;
(e)Assist anyone in any of the activities listed above.
If Executive violates the promises in this Section 2.2 or in Section 2.3, 2.5, 2.6 or 2.7, in addition to all other remedies, Executive shall not be entitled to receive any further benefits under this Agreement. However, Executive’s obligations, releases, and promises in this Agreement shall survive and be continuing. Executive specifically acknowledges and agrees that that the consideration provided by this Agreement is sufficient for the continuing obligations, releases and covenants herein.
2.3    Non-Disparagement. Executive agrees not to make any negative comment about or
otherwise disparage the Company or those associated with it orally or in writing, directly or by implication, to any person, including the Company’s customers or agents. Executive further agrees not to provide testimony as an expert or paid witness on behalf of a party adverse to the Company. This Section 2.3 does not prohibit Executive from testifying pursuant to a subpoena or from accepting witness fees accompanying a subpoena, and this Section 2.3 in no way limits Executive’s right to file a charge with or participate in any administrative proceeding conducted by a governmental agency relating to Executive’s employment.
2.4    Release. Not earlier than the Retirement Date, and not later than twenty-one (21) days

after the Retirement Date, Executive shall execute and deliver to the Company the release (the “Release”) in the form attached hereto as Exhibit A. Executive shall have a period of seven (7) days after executing the Release to revoke the Release by written notice of revocation given to the Company. Anything else contained herein to the contrary notwithstanding, if Executive either fails to execute and deliver the Release, or revokes the Release, within the time periods described above, the Option and the RSUs shall be immediately forfeited and Executive shall have no further rights under this Agreement; however, the remaining provisions of this Agreement, including without limitation Executive’s obligations under Sections 2.2, 2.3, 2.5, 2.6 and 2.7, shall remain in effect. If Executive exercises the Option prior to the executing the Release, or during the period of time during which he has the right to revoke the Release, exercise of the Option and delivery of the shares shall be deferred until the Release has been executed and the revocation period has expired, and if Executive either fails to execute, or revokes, the Release, his exercise of the Option shall be null and void and any portion of the Option Price paid shall be promptly refunded to him. Executive acknowledges that he has been advised by the Company to consult legal counsel with respect to the Release.
2.5    Cooperation and Assistance. Executive agrees that he will cooperate (a) with the
Company in the investigation, prosecution or defense of any potential claims or concerns regarding the business of the Company about which he has relevant knowledge, including by providing truthful information and testimony as reasonably requested by the Company, and (b) with all government authorities on matters pertaining to any investigation, litigation or administrative proceeding concerning the Company. The Company will in turn cooperate and assist Executive with addressing any such matters and will reimburse Executive for any reasonable travel and out-of-pocket expenses that he incurs in providing such cooperation. Executive further agrees to inform the Company of all subpoenas, correspondence, telephone calls, requests for information, inquiries or other contacts that he may receive from third parties, including governmental agencies, concerning any fact or circumstances known to Executive during his employment with the Company. Executive agrees to inform the Company within two (2) business days of each such contact. The Company will in accordance with its applicable bylaws and internal company policies indemnify Executive against any and all claims and losses that may arise as a result of acts or omissions by Executive in the scope of his employment with the Company.
2.6    Acknowledgment of Obligations. Executive acknowledges that during his employment,
Executive developed and has been exposed to trade secrets or confidential information regarding the Company, including business strategies, operations, and actual and potential customers and suppliers (“Confidential Information”). The Company considers such Confidential Information
to be valuable and proprietary. Executive agrees that after any termination or retirement date that he remains bound by the Intellectual Property Agreement that Executive signed during his 

employment with the Company. Executive acknowledges that he is under a continuing obligation to keep confidential, not disclose and not use any confidential information except as specifically authorized by the Company. Executive understands that he will be required to sign an Exit Statement upon retirement that reaffirms these obligations regarding trade secret and confidential information. Should Executive gain employment at other employers in the future, he understands that the Company has Conflict of Interest guidelines in effect that may impact its purchasing relationships and practices with such possible employers, as stated in the Company’s Purchasing Practices No. 49. Both Executive and the Company agree that he should contact the Company’s Chief Ethics and Compliance Officer so that the Company may determine whether any such restriction on his future employment exists by operation of this Agreement, or whether any conflict of interest as contemplated by Purchasing Practices No. 49 exists regarding his employment opportunities with such possible employers. Regarding the obligations of Purchasing Practices No. 49, Executive and the Company agree that the parties will each use their best efforts to assess whether such conflict of interest may be avoided prior to his accepting employment with such other employers.
2.7    Disclosure. Executive acknowledges that he has reviewed the Company’s Worldwide
Code of Business Conduct (the “Worldwide Code”) and understands his obligations to the Company under the Worldwide Code. Executive agrees that he has been given an adequate opportunity to advise the Company, and that he has fully and truthfully advised the Company, of any facts that he is aware of that constitutes or might constitute a violation of the Worldwide Code, any other Company policies, or any ethical, legal or contractual standards or obligations of the Company. If Executive learns of such facts in the future, Executive agrees to report them to the Company by contacting the Company’s Office of Business Practices.
III.
MISCELLANEOUS PROVISIONS
3.1    References to “Company”. For purposes of Sections 2.1, 2.2, 2.3, 2.5, 2.6 and 2.7, the
term “Company” as used therein shall also include any and all subsidiaries and affiliates of the Company.
3.2    Successors. All obligations of the Company under this Agreement shall be binding on
any successor to the Company, whether the existence of such successor is the result of a direct or indirect merger, consolidation, purchase of all or substantially all of the business and/or assets of the Company or otherwise.

3.3    Compliance with Section 409A of the Code. It is intended that this Agreement satisfies the terms of Section 409A of the Code and the Treasury Regulations promulgated and other official guidance issued thereunder. This Agreement shall be interpreted and construed on a basis consistent with such intent. Notwithstanding anything contained herein to the contrary, the Company reserves the right (including the right to delegate such right) to unilaterally amend this Agreement without Executive’s consent solely in order to maintain an exclusion from the application of, or to maintain compliance with, Section 409A of the Code. Executive’s execution of this Agreement constitutes acknowledgement and consent to such rights of the Company.
3.4    Compliance with Securities Laws. The Company will take steps required to achieve
compliance with all applicable U.S. federal and state securities laws (and other laws, including registration requirements) and with the rules and practices of the stock exchanges upon which the stock of the Company is listed and the Option is subject to the requirements of such laws and rules. The Option is subject to the condition that if the listing, registration or qualification of the shares of common stock subject to the Option upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the issuance or delivery of shares hereunder, the shares of common stock subject to the Option shall not be issued or delivered, in whole or in part, unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification, consent, approval or other action.
3.5    Governing Law. To the extent not preempted by Federal law, this Agreement shall be
construed in accordance with and governed by the laws of the State of Delaware without regard to the conflict of law provisions thereof.
3.6    Judicial Modification and Severability. If any of this Agreement’s provisions is
determined to be unenforceable, the Executive and Company both agree that such provision should be modified so that it is enforceable or, if modification is not possible, that it should be severed, and the enforceability of the remaining provisions will not be affected by such modification or severance.
3.7    Amendment. Except as otherwise provided in Section 3.3, this Agreement may be amended only by written agreement of the Executive and the Company.
3.8    Consulting an Attorney. Executive understands that the Company has advised him to consult with an attorney prior to signing this Agreement, but that any legal consultation is at 

Executive’s own expense. Executive agrees that he has had an adequate opportunity to consult with an attorney, Executive has read and understand this Agreement, and Executive is voluntarily signing this Agreement.
3.9    Entire Agreement. This Agreement, the 2014 LTIP, the 2006 LTIP and the award
agreements thereunder constitute the entire agreement between Executive and the Company with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements between Executive and the Company with respect to the subject matter hereof, and may not be modified, except as provided in Section 3.7.
3.10 Execution of Agreement by Parties. Upon execution of this Agreement, the Executive and the Company signify their agreement with the terms and conditions of this Agreement.

IN WITNESS WHEREOF, this Agreement is executed by the parties hereto on this 15th day of December, 2014, effective as of the Effective Date. 

	
			
	EXECUTIVE
	 
	CATERPILLAR INC.

	 
	 
	 

	 
	 
	 

	/s/Steven H. Wunning
	 
	/s/James B. Buda

	Name:  Steven H. Wunning
	 
	Name: James B. Buda

	 
	 
	Title:  Executive Vice President, Law and Public Policy

	 
	 
	 

	 
	 
	 

EXHIBIT A
RELEASE
1.    In consideration of the grant to Steven H. Wunning (“Executive”) of a
nonqualified stock option (the “Option”) to purchase shares of common stock of Caterpillar Inc., a Delaware corporation (the “Company”) and the acceleration of certain outstanding equity compensation, all pursuant to an Equity Compensation
Agreement (the “Agreement”) dated as of December 15, 2014 Executive hereby waives and releases the following parties (the “Released Parties”) from all claims that the Executive may have, known or unknown, against them:
(a)    The Company;
		
	(b)
	The Company’s subsidiary and affiliated companies;

		
	(c)
	The Company’s predecessors; and

		
	(d)
	All of the above companies’ agents, directors, officers, employees, representatives, fiduciaries, shareholders, successors and assigns.

Executive acknowledges that prior to execution of the Agreement he had no right to receive the Option or the acceleration of vesting, and that under the terms of the Agreement his receipt of, and right to exercise the Option and his right to the accelerated vesting are expressly conditioned upon his executing, and not revoking, this Release.
2.    Executive’s release of claims includes all claims related to his employment with
the Company (and all subsidiaries and affiliates of the Company) or the termination of his employment. For example, Executive’s release includes claims based on:
		
	•
	Any federal statute, including: the False Claims Act (including any right to share in any recovery by the United States government); Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Civil Rights Act of 1874; the Age Discrimination in Employment Act (ADEA); the Equal Pay Act; the Americans with Disabilities Act; the Employee Retirement Income Security Act of 1974; and the National Labor Relations Act;

		
	•
	Any state statute, including discrimination and whistleblower statutes;

		
	•
	Any ordinance;

		
	•
	Any express or implied contract between the Company (and/or any subsidiary or affiliate of the Company) and him;

		
	•
	Any tort, such as defamation, misrepresentation, infliction of emotional distress, or fraud;

		
	•
	Negligence; or

		
	•
	Any other legal theory.

Executive’s release does not: (i) affect his right to obtain any vested and nonforfeitable balance in his accounts under any retirement plan; (ii) preclude him from exercising any conversion or continuation coverage rights he may have under the Company’s welfare benefit plans; or (iii) waive his right to file an administrative charge with or participate in an administrative proceeding conducted by any governmental agency concerning his employment, although his release does waive his right to receive any individual remedy, including monetary damages, in connection with any charge.
		
	3.
	Covenant Not to Sue. Executive acknowledges that he understands that a  
“covenant not to sue” is a legal term which means Executive agrees not to file a lawsuit in court. It is different from the general release of claims contained in Sections 1 and 2 above. Besides waiving and releasing the claims covered by Sections 1 and 2, Executive further agrees never to sue any of the Released Parties in any forum for any reason covered by the release in Sections 1 and 2 above. Notwithstanding this covenant not to sue, Executive may bring a claim against the Company to enforce the Agreement or, to the extent permitted under the law, to challenge the validity of this Release under the Age Discrimination in Employment Act. If Executive sues any Released Party in violation of this covenant not to sue, Executive shall be liable to the Released Party for the Released Party’s reasonable attorneys’ fees and other litigation costs incurred in defending against such suit.

		
	4.
	Execution and Revocation of Release. Executive must execute this Release, and  
deliver it to the Company, not earlier than the date on which his employment is terminated and not later than twenty-one (21) days after such date. Executive may revoke this Release by a written notice of revocation at any time within seven (7) days after executing and delivering it. The executed Release, and any written notice of revocation, shall be delivered either by personal delivery, or by certified first class mail, with proper postage prepaid (which shall be effective as of the date of mailing), and in either case shall be addressed to the following person: James B. Buda, Esq.; Caterpillar Inc.; Executive Vice President, Law and Public Policy; 100 NE Adams Street, Peoria, IL 61629-7310. 

Executive acknowledges that if he either fails to execute and deliver this Release as described above, or revokes this Release, the benefits provided under the Agreement 

will be forfeited in their entirety and any prior exercise of the Option shall be null and void. Executive acknowledges that he has been given a period of at least twenty-one (21) days to consider whether to execute this Release, has been advised by the Company to consult with legal counsel at his own expense regarding this Release and the Agreement, and is entering into this Release and the Agreement knowingly, voluntarily, and with full knowledge of their significance and has not been coerced, threatened, or intimidated into signing this Release or the Agreement.

IN WITNESS WHEREOF, this Agreement is executed by the Executive on this 1st day of February, 2015.  

/s/Steven H. Wunning
Steven H. WunningEX-10.1

 Exhibit 10.1 

Final 
 CAREER EDUCATION
CORPORATION 
 EXECUTIVE SEVERANCE PLAN 

Plan Document and Summary Plan Description 

(Amended and Restated as of January 1, 2015) 

Career Education Corporation (“CEC”) previously implemented the Career Education Corporation Severance Plan for
Executive Level Employees, effective as of February 1, 2008, which was amended and restated as the Career Education Corporation Executive Severance Plan effective as of July 1, 2010, and is further amended and restated by this document
(the “Plan”). The Plan describes the circumstances under which certain Eligible Employees of CEC and its subsidiaries (collectively, the “Company”) may receive severance benefits if their employment with the Company
is involuntarily terminated. The purpose of the Plan is to assist Eligible Employees, as defined below, during the transition to their next employment. The Plan is effective for terminations occurring on or after the Effective Date (as defined in
Section V.B.) and supersedes and replaces any and all prior severance policies, plans, and programs applicable to the Eligible Employees, as in effect prior to the Effective Date. 

I. ELIGIBILITY 
  

	A.	Eligibility for Discretionary Benefit Upon Involuntary Termination. 

 If the Plan
Administrator (as defined in Section III.A) determines that the employment of an Eligible Employee (as defined in Section I.B) is involuntarily terminated by action of the Company, the Plan Administrator may, in its sole discretion, provide such
Eligible Employee a benefit, determined in accordance with Section II.A. An individual who does not meet the requirements of this Section I shall not be entitled to receive a benefit under the Plan. 

 

	B.	Eligible Employees. 

 Employees of the Company who are eligible to
participate in the Plan (“Eligible Employees”) include only those employees whose regular place of employment is at a location in the United States and who is (i) considered an officer of CEC is subject to Section 16 of
the Securities Exchange Act of 1934, as amended, (ii) a direct report to the President and CEO of the Company who does not have a separate agreement with the Company regarding eligibility for severance upon a termination of employment , or
(iii) any individual who is an elected officer of CEC at the time of employment termination. 
  

	C.	Terminations Deemed Not Involuntary. 

 Unless the Compensation Committee of
the Board of Directors of CEC (the “Compensation Committee”) determines otherwise, if the Plan Administrator determines that an Eligible Employee’s employment with the Company has been terminated (i) for Cause,
(ii) due to an agreement between the Company and the Eligible Employee whereby the Eligible Employee becomes a consultant or independent contractor with the Company, (iii) by reason of death, disability, retirement (including voluntary
retirement under a special early retirement  

 
incentive program), or (iv) for any form of voluntary termination, such termination shall not be considered involuntary, and such Eligible Employee shall not be eligible to receive any
severance benefits under the Plan. An employee’s termination of employment with the Company shall be a termination for Cause if the employee is discharged by the Company for poor performance, non-performance, or misconduct. Misconduct shall
include, but is not limited to, insubordination, dishonesty, theft, violation of Company rules, and willful destruction of Company property. 
  

	D.	Early Departure. 

 The Plan Administrator, in its sole discretion, shall determine
the date that an Eligible Employee terminates employment with the Company for purposes of determining eligibility for benefits under the Plan. An Eligible Employee shall not be deemed terminated simply upon notice by the Company of termination or
possible termination at some future date, whether or not such date is fixed and certain. Any employee who resigns before any termination date specified by the Company or while the Company still desires such employee’s continuing services shall
not be eligible to receive a benefit under the Plan. 
  

	E.	Reemployment and Offers of Reemployment. 

 Benefits under the Plan for any
Eligible Employee who is terminated by the Company in a manner that would entitle him or her to Plan benefits and who is reemployed or offered reemployment by the Company or a related entity of the Company, shall cease as of and upon such Eligible
Employee’s reemployment, or offer of reemployment in a similar position, regardless of whether the Eligible Employee was otherwise entitled to additional benefits under the Plan. 

 

	F.	Offer of Another Position. 

 If an Eligible Employee is terminated after having
refused another position with the Company or a related entity (or, in the event of any type of corporate transaction, with a purchaser or other acquiring entity, or a related entity of the Company, purchaser, or acquiring entity), such termination
shall not be considered involuntary, and such employee shall not be eligible to receive a benefit under the Plan; provided, however, that the Plan Administrator, in its sole discretion, may treat such termination as involuntary if such
position, if accepted, would have resulted in a material negative change in the employee’s service relationship as compared with the situation in effect immediately prior to such termination, or is at a location sufficiently distant from the
location of the employee’s current position as would require relocation of such employee’s residence. 
  

	G.	Release of Claims. 

 In addition to the terms and conditions for benefits stated
above, the Plan Administrator shall require, that as a condition of eligibility for severance benefits, an Eligible Employee shall sign a release of claims in a form acceptable to the Plan Administrator. The Eligible Employee’s failure or
refusal to sign such release or the Eligible Employee’s revocation of such release, to the extent revocation is permitted by the terms of the release and this Plan, shall disqualify the Eligible Employee from receiving any benefits under this
Plan. 

  
 2 

 The Plan Administrator shall advise an Eligible Employee to consult an attorney at his or her own
expense prior to executing a release of claims and shall, in accordance with the circumstances of the termination, afford such Eligible Employee either (a) a reasonable period of time, as determined solely within the Plan Administrator’s
discretion, or (b) the period of time required by applicable law, to consider whether to execute such release. If an Eligible Employee signs such release, he or she shall have seven (7) days after execution of such release to revoke such
release. Upon the expiration of the seven (7) day revocation period, if the Eligible Employee has not effectively revoked his or her release (as provided in the release document), then such release shall become irrevocable. 

If an Eligible Employee files a lawsuit, charge, complaint or other claim asserting any claim or demand within the scope of any such release,
the Company and Plan Administrator, whether or not such claim may be valid, shall retain all rights and benefits of the release and this Plan and shall have the right to recoup the value of all payments made in accordance with the Plan, together
with costs and attorneys fees, in accordance with applicable law. Nothing provided herein shall restrict the Company’s ability or freedom to make any offer in settlement of any claim against the Company, Plan Administrator, or any of the
Company’s employee benefit plans without regard to the terms of this Plan. 
  

	H.	Other Conditions for Plan Benefits. 

 In addition to the other requirements for
benefits set forth in this Section I, the Plan Administrator will require an Eligible Employee to enter into a separation agreement provided by the Company. Such separation agreement will require the Eligible Employee to meet certain obligations as
a condition to obtaining or continuing to receive benefits under the Plan. Examples of these obligations include, but are not limited to, the following, to the extent permitted by governing law and allowed under the ethical rules of any applicable
professional licensing organizations: returning Company property, a minimum of a twelve (12) month covenant not to solicit Company employees, a minimum of a twelve (12) month covenant not to compete with the Company, maintaining
confidentiality of confidential information received while employed by the Company, and cooperating in litigation or an investigation involving the Company. 
  

	I.	Supplements. 

 The Plan Administrator may also attach, as a Supplement to this
Plan, the terms and conditions (including the amount) of a severance arrangement applicable to one or more Eligible Employees as the result of a corporate event, such as a down-sizing, reduction in force, or closing of a division or facility. Any
such Supplement will be subject to the provisions of this Plan, unless otherwise set forth in such Supplement. 
 II. AMOUNT AND
PAYMENT OF SEVERANCE BENEFITS 
  

	A.	Generally. 

 If, in accordance with Section I.A, the Plan Administrator determines
that an individual is an Eligible Employee under the terms of the Plan, the Plan Administrator shall determine, in its sole discretion and on a nondiscriminatory basis, the amount and type of severance benefits the Eligible Employee shall receive,
subject to this Section II and taking into account any factors that 

  
 3 

 
the Plan Administrator deems reasonable and appropriate. The Plan Administrator may establish, and may from time to time and at any time amend, standards or definitions applicable to such
determinations if the Plan Administrator deems such standards or definitions appropriate. 
  

	 	1.	Severance Pay. Subject to the provisions of the foregoing paragraph, an Eligible Employee, whose employment is involuntarily terminated by the Company for any reason, other than a termination deemed not
involuntary under Section I.C., shall be entitled to a severance payment equal to one-times Pay, subject to compliance with Plan requirements. 

For purposes of this Section II.A., an Eligible Employee’s “Pay” shall mean the sum of (a) his or her annual base
salary as shown on the Company’s records at the time of termination, plus (b) the target value of his or her annual incentive under the Company’s applicable annual incentive program (or program of similar effect) for the year in which
termination occurs. 
 Following is an example of the severance calculation formula of base pay: 

 

															
	Annual Salary
at Time of
Termination	 	  	Annual Incentive
Plan Target
(expressed as a %
of salary)	 	 	Annual
Incentive
Plan Value	 	  	Applicable
“Pay” for Plan
Purposes	 
	$	200,000	  	  	 	50	% 	 	$	100,000	  	  	$	300,000	  

 Unless otherwise waived, all Eligible Employees receiving a severance package equal to one-times Pay will be
expected to agree, pursuant to the separation agreement entered into pursuant to Section I.H., to the continuation of the non-compete covenant set forth in such Eligible Employee’s new hire package or annual long-term incentive award agreements
for a period of 12-months. 
 If, at the time of termination, the Administrator determines it is necessary for an Eligible Employee to adhere
to a non-compete covenant (as described in the paragraph above) for a period of 24-months, such Eligible Employee will be eligible to receive a severance payment equal to two-times Pay, subject to compliance with Plan requirements. 

 

	 	2.	Partially Subsidized COBRA Premium. An Eligible Employee who is a participant in the Company’s health and/or dental insurance program(s) at the time of termination, and who, after termination, timely elects
to continue such insurance coverage under the federal law commonly referred to as COBRA, shall be entitled to such COBRA coverage at the same cost that similarly situated active employees of the Company pay for such insurance coverage (as in effect
from time to time) for the period of time beginning immediately after such employment termination and lasting for the number of weeks that is equal to the number of weeks of Pay for which the Eligible Employee is eligible (or the COBRA period, if
shorter). To the extent permitted by applicable law in a manner that does not cause adverse tax consequences for participants in such health and/or dental programs, the amounts payable pursuant to this Section II.A.2 shall be paid to the eligible
individual on a pre-tax basis. 

  
 4 

	 	3.	Outplacement. An Eligible Employee shall receive outplacement assistance from a provider selected by the Company. The terms and conditions of any such outplacement assistance shall be communicated in writing to
the Eligible Employee at the time of his or her employment termination (or as soon as possible thereafter), but in no event will provision, or reimbursements, of such assistance occur later than December 31 of the second year following the year
in which the Eligible Employee terminates employment. 

  

	B.	Payment. 

 Payment and provision of severance benefits shall be subject to the
following terms and conditions: 
  

	 	1.	Severance of one-times Pay will be paid in a lump sum following termination of employment and shall be made on or before March 15 of the year following the year in which the Eligible Employee’s termination
occurs. If the Eligible Employee has not signed the required release of claims and the required separation agreement, or if any applicable revocation period has not expired, by the March 15 described above, the Eligible Employee will forfeit
any benefits otherwise due under the Plan. Eligible Employees receiving severance of two-times Pay, will receive the one-time Pay as described, in the first sentence of this Section II.B.1 (but subject to satisfaction of the conditions described in
the second sentence of this Section II.B.1), and a second lump sum payment of one-times Pay on the first anniversary of the date the initial lump sum payment was made (but subject in all applicable cases to the timing provisions set forth in Section
V.L.6). 

  

	 	2.	Severance benefits shall be subject to all applicable federal and state tax withholding and any other withholdings required under applicable law. 

 

	 	3.	Severance benefits shall be in addition to any pay for accrued but unused vacation to which a terminated Eligible Employee may be entitled. 

 

	 	4.	Severance benefits shall not be considered “compensation” for purposes of determining any benefits provided under any pension, savings or other employee benefit plan maintained by the Company.

  

	C.	Interaction With WARN Act. 

 Notwithstanding anything in this Plan to the
contrary, benefits payable under the Plan will be reduced (but not below zero) by any amounts required to be paid to each Eligible Employee pursuant to the Worker Adjustment and Retraining Notification Act (“WARN”), without regard
to whether Eligible Employees assert such rights. The Plan is not intended to duplicate payments already required by WARN. 

  
 5 

	D.	Other Benefits/Offsets. 

 Any benefit payment due to an Eligible Employee
under this Plan will be reduced (but not below zero) by any severance pay, salary continuation, termination pay, or similar pay or allowance (“Other Benefit Arrangement”) that the Eligible Employee receives or is entitled to receive
under any employment, severance or other agreement between the Eligible Employee and the Company. This Plan is not intended to, and shall not result in any duplication of payments or benefits to any Eligible Employee under any Other Benefit
Arrangement. 
 If the Plan Administrator determines that an employee (i) could have been terminated for Cause,
(ii) violated his or her separation agreement or any applicable restrictive covenant, or (iii) has been reemployed or offered reemployment as described in Section I.E., then the Plan Administrator may either cancel or stop the payment or
provision of any Plan benefits. In addition, if the employee already began to receive Plan benefits under such circumstances (except reemployment or an offer of reemployment), the Plan Administrator may require the employee to reimburse the Company
for the gross amount of any Plan benefits already received. 
 Plan benefits shall also be reduced for tax withholding as described in
Section II.B.2. 
 III. PLAN ADMINISTRATION 
  

	A.	Employee Benefits Committee is Plan Administrator. 

 The Board of Directors of CEC
and the Compensation Committee have appointed the Employee Benefits Committee as the Plan Administrator and the Named Fiduciary of the Plan. The Plan Administrator may delegate its powers and responsibilities for administration of the Plan to one or
more persons or subcommittees. The Plan Administrator may adopt such rules and regulations and may make such decisions as it deems necessary or desirable for the proper administration of the Plan. 

 

	B.	Plan Administrator’s Determination. 

 Unless otherwise determined by the
Compensation Committee, all determinations regarding benefits will be made by the Plan Administrator in accordance with the written terms of the Plan. The Plan Administrator shall have the express discretionary authority to determine eligibility for
benefits and the amount of benefits, to decide factual and other questions relating to the Plan, and to interpret the terms of the Plan. Determinations and interpretations by the Plan Administrator, including without limitation decisions relating to
eligibility for, entitlement to, and payment of benefits, shall be conclusive and binding for all purposes (unless determined by a court of competent jurisdiction to be an arbitrary and capricious abuse of discretion). When making any determination
or calculation, the Plan Administrator shall be entitled to rely upon the accuracy and completeness of information furnished by the Company’s employees and agents. 

IV. CLAIMS FOR BENEFITS 
  

	A.	Submission of Claims. 

 All claims for benefits must be submitted to the Plan
Administrator. 

  
 6 

	B.	Denial of Claims. 

 If a claim for benefits is denied in whole or in part, the
claimant shall receive a written or electronic notice explaining the denial of the claim within ninety (90) days after the Plan Administrator’s receipt of the claim. If the Plan Administrator determines that for reasons beyond its control,
a ninety (90) day extension of time is necessary to process the claim, the claimant shall be notified in writing of the extension and reason for the extension within ninety (90) days after the Plan Administrator’s receipt of the
claim. The written extension notification shall also indicate the date by which the Plan Administrator expects to render a decision. A notice of denial of claim shall contain the following: 

 

	 	1.	The specific reason or reasons for the denial; 

  

	 	2.	Reference to the specific Plan provisions on which the denial is based; 

  

	 	3.	A description of any additional materials or information necessary for such claimant to perfect the claim and an explanation of why such material or information is necessary; and 

 

	 	4.	A description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(c) of ERISA
following an adverse benefit determination on review. 

  

	C.	Review of Denied Claims. 

 A claimant may file a written request for a review of
the denial of a claim within sixty (60) days after receiving written or electronic notice of the denial. The claimant may submit written comments, documents, records and other relevant information in support of the claim. A claimant shall be
provided, upon request and without charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits. A document, record, or other information shall be considered relevant
if it: (a) was relied upon in denying the claim; (b) submitted, considered or generated in the course of processing the claim, regardless of whether it was relied upon; (c) demonstrates compliance with the claims procedures process;
or (d) constitutes a statement of Plan policy or guidance concerning the denied benefit. In reviewing a denied claim, the reviewer shall take into consideration all comments, documents, records, and other information submitted by the claimant
in support of the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The Plan Administrator will notify the claimant electronically or in writing of its decision on the appeal. Such
notification will be in a form designed to be understood by the claimant. If the claim is denied in whole or in part on appeal, the notification will also contain: 
  

	 	1.	The specific reason or reasons for the denial; 

  

	 	2.	Reference to the specific Plan provisions on which the determination is based; 

  
 7 

	 	3.	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for
benefits. A document, record, or other information shall be considered relevant if it: (i) was relied upon in denying the claim; (ii) submitted, considered or generated in the course of processing the claim, regardless of whether it was
relied upon; (iii) demonstrates compliance with the claims procedures process; or (iv) constitutes a statement of Plan policy or guidance concerning the denied benefit; and 

 

	 	4.	A statement that the claimant has a right to bring an action under Section 502(a) of ERISA and information about any voluntary appeals. 

Such notification will be given by the Plan Administrator within sixty (60) days after the complete appeal is received by the Plan
Administrator (or within one hundred twenty (120) days if the Plan Administrator determines special circumstances require an extension of time for considering the appeal, and if written notice of such extension and circumstances is given to the
claimant within the initial sixty (60) day period). Such written extension notice shall also indicate the date by which the Plan Administrator expects to render a decision. 

No person may bring an action for any claim for Plan benefits in a court of law unless the claims and appeals procedures set forth above are
exhausted and a final determination is made by the Plan Administrator. Any action brought in a court of law after exhaustion of such remedies must be brought within one (1) year after the Plan Administrator delivers final notice that a
claimant’s appeal was denied in whole or in part. 
  

	D.	Legal Action. 

 If a claimant decides to take legal action related to a claim for
benefits or such claimant’s rights under the Plan, the agent to receive legal process is the Plan Administrator. 
 V.
MISCELLANEOUS 
  

	A.	Status of Plan. 

 The Plan is a severance plan and is therefore a welfare benefit
plan within the meaning of Section 3(1) of ERISA, rather than a pension or retirement plan. Benefits payable under the Plan are not contingent, directly or indirectly, on an Eligible Employee’s retirement. Eligible Employees have no vested
right to benefits under the Plan. 
  

	B.	Effective Date. 

 The “Effective Date” of the Plan is
January 1, 2015. 
  

	C.	No Vested Benefits. 

 Inclusion as an Eligible Employee does not confer any vested
benefits on a participant. No benefits are vested until an Eligible Employee has been terminated and notified of his or her benefits under the Plan. 

  
 8 

	D.	Amendment and Termination. 

 CEC reserves the right to amend, modify or terminate,
in whole or in part, the Plan at any time. 
  

	E.	Funding of Benefits. 

 Plan benefits are paid from the Company’s general
assets as benefits become payable under the Plan. No separate trust or segregated assets shall be required to be established to pay benefits. 
  

	F.	Binding on Successors and Assigns. 

 The provisions of this Plan shall be binding
on the Company and its successors and assigns. 
  

	G.	Severability. 

 In the event that any provision of this Plan is held illegal or
invalid, the remaining provisions of this Plan shall not be affected thereby. 
  

	H.	Non-alienation of Benefits. 

 The Company shall not in any manner be liable for or
subject to the debts or liabilities of any individual by reason of the existence or operation of the Plan. No right or benefit under the Plan shall, at any time, be subject to alienation, sale, transfer, assignment, pledge, or any encumbrance of any
kind. If an Eligible Employee or former Eligible Employee shall attempt to or shall alienate, sell, transfer, assign, pledge or otherwise encumber his or her rights, benefits, or amounts payable under the Plan, or any part thereof, or if by reason
of his or her bankruptcy or other events happening at any time, such benefits would otherwise be received by anyone else or would not be enjoyed by him or her, the Plan Administrator in its sole discretion may terminate his or her interest in any
such right or benefit and hold or pay it to, or for the benefit of, such person, his or her spouse, children, or other dependents, or any of them as the Plan Administrator may determine. 

 

	I.	No Employment Contract. 

 Nothing contained in this Plan shall be construed to be
an employment contract between any employee and the Company nor shall it prohibit the Company from being able to terminate any employee, or the employee from being able to quit, at any time, at the will of the Company or the employee, respectively,
for any reason or for no reason, with or without notice. All Company employees remain employees at-will. No rights shall be deemed to vest under the Plan. 
  

	J.	Governing Law. 

 This Plan shall be construed and enforced in accordance with, and
governed by, the laws of the State of Illinois, to the extent not preempted by applicable federal law. 

  
 9 

	K.	Dispute Resolution. 

  

	 	1.	In the event of a dispute under this Plan between the Company and an employee where Article IV is not applicable, the dispute shall be promptly submitted to binding arbitration. In the event the requirements of Article
IV have been satisfied with respect to a claim for benefits under the Plan, the claim may be voluntarily submitted to arbitration by mutual agreement of the Company and the claimant. Any such arbitration hearing shall be completed within ninety
(90) days of the submission to arbitration. 

  

	 	2.	Any arbitration under the Plan shall be conducted in accordance with this Plan and, where not inconsistent, the appropriate commercial arbitration rules of the American Arbitration Association (“AAA”),
and shall be held in the City of Chicago at such location within Chicago as shall be determined by the AAA. Each side shall name one arbitrator. The two arbitrators shall select a third arbitrator either by mutual agreement or from a list submitted
by the AAA in accordance with AAA rules. The arbitrators shall permit reasonable discovery in accordance with Federal Rules of Civil Procedure and the local Rules of the U.S. District Court for the Northern District of Illinois. The arbitrators
shall make written findings of fact and conclusions of law reflecting the appropriate substantive law. The decision of the arbitrators shall be rendered within thirty (30) days of the close of the arbitration hearing and shall be final and
binding. The Company and the employee shall pay their respective expenses of arbitration and legal fees, and the expenses of the arbitrators and the AAA shall be equally shared; provided, however, that if, in the opinion of the
arbitrators, any claim under this Plan or any defense in objection thereto was unreasonable, the arbitrators may assess, as part of their award, all or any part of the arbitration expenses (including reasonable attorneys’ fees of the other
party and arbitrators’ fees under the standards and law applicable under Rules 11 and 27 of the Federal Rules of Civil Procedure) against the party raising such unreasonable claim, defense or objection. 

 

	 	3.	In any arbitration proceeding pursuant to Section V.K.2 above, this Plan shall be governed as to all matters, including validity, interpretation and enforcement, by the laws of the State of Illinois, except as
superseded by the laws of the United States. 

  

	 	4.	Judicial orders to enforce the arbitration provisions of this Plan and otherwise in aid of arbitration may be entered by the federal and state courts located in Chicago, Illinois, at any time prior to or after a final
decision by the arbitrators, and the Company and employee hereby submit to personal jurisdiction in the State of Illinois and to venue in such courts. 

  
 10 

	L.	Section 409A. 

 To the greatest extent reasonably possible, this Plan is intended
to provide benefits that are exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and it shall, to the greatest extent reasonably possible, be administered and
interpreted in accordance with that intent. Specifically, to the greatest extent reasonably possible, (i) severance benefits of one-times Pay are intended to be exempt short-term deferrals pursuant to Treasury Regulation
Section 1.409A-1(b)(4), and (ii) COBRA premium reductions and outplacement assistance are intended to be exempt separation pay plan benefits pursuant to Treasury Regulation Section 1.409A-1(b)(9)(v). Notwithstanding the foregoing or
anything in the Plan to the contrary, to the extent that severance benefits payable pursuant to the Plan constitute non-qualified deferred compensation subject to Section 409A, the following provisions shall apply: 

 

	 	1.	To the extent any payment of non-qualified deferred compensation becomes due to an Eligible Employee hereunder at the time of termination of employment (or terms of similar effect), such amount shall only be paid to the
Eligible Employee to the extent such termination also constitutes such Eligible Employee’s “separation from service” (as defined in Code Section 409A) with the Company. 

 

	 	2.	If an Eligible Employee is deemed on the date of his or her termination of employment to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then with regard to the
portion of any payment or benefit that is considered non-qualified deferred compensation for purposes of Section 409A payable on account of his or her “separation from service,” such portion of the payment or benefit shall not be made
or provided until the date which is the earlier of (i) the first day of the seventh month following the “separation from service” of the Eligible Employee, and (ii) the date of the Eligible Employee’s death, to the extent
required to comply with Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section V.L.2 (whether they would have otherwise been payable in a single sum or in installments in the
absence of such delay) shall be paid or reimbursed to the Eligible Employee in a lump sum, and any remaining payments and benefits due under this Plan shall be paid or provided in accordance with the normal payment dates specified for them herein.

  

	 	3.	To the extent that reimbursements or other in-kind benefits under this Plan constitute nonqualified deferred compensation for purposes of Section 409A, (i) all such expenses or other reimbursements hereunder
shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Eligible Employee, (ii) any right to such reimbursement or in-kind benefits shall not be subject to liquidation
or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year. 

  

	 	4.	For purposes of Section 409A, an Eligible Employee’s right to receive any installment payments pursuant to this Plan shall be treated as a right to receive a series of separate and distinct payments. Whenever
a payment under this Plan specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. 

  
 11 

	 	5.	In no event shall any payment under this Plan that constitutes nonqualified deferred compensation for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by
Section 409A. 

  

	 	6.	With respect to an Eligible Employee who receives severance benefits equal to two-time Pay, to the extent any portion of the second lump-sum payment described in the last sentence of Section II.B.1 constitutes
non-qualified deferred compensation for purposes of Section 409A, then notwithstanding the timing set forth in Section II.B.1, such portion of the second payment shall be paid on the first anniversary of the Eligible Employee’s
“separation from service.” 

  

	 	7.	Each Eligible Employee shall bear his or her own tax burden, and, in any case, the Company shall not be liable for any adverse tax consequences imposed on an Eligible Employee pursuant to Section 409A based on
amounts payable pursuant to the Plan. 

 VI. PARTICIPANT RIGHTS 

Eligible Employees (“participants”) are entitled to certain rights and protections under ERISA. ERISA provides that all plan
participants will be entitled to: 
  

	A.	Receive Information About Your Plan and Benefits 

 Examine, without charge, at the
Plan Administrator’s office and at other specified locations, all documents governing the Plan, including insurance contracts, and, if applicable, a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department
of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. 
 Obtain, upon written request to
the Plan Administrator, copies of all documents governing the operation of the Plan, including insurance contracts, and copies of the latest annual report (Form 5500 Series), if applicable, and updated summary plan description. The Plan
Administrator may make a reasonable charge for the copies. 
 Receive a summary of the Plan’s annual financial report. The Plan
Administrator is required by law to furnish each participant with a copy of this summary annual report. 
  

	B.	Prudent Actions by Plan Fiduciaries 

 In addition to creating rights for plan
participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under
ERISA. 

  
 12 

	C.	Enforce Your Rights 

 If your claim for a welfare benefit is denied or ignored, in
whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. 

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because
of reasons beyond the control of the Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal Court (after exhausting the Plan’s claims and appeals procedures, as
set forth in Article IV). In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a medical child support order, you may file suit in Federal Court. If you are discriminated against for asserting
your rights, you may seek assistance from the U.S. Department of Labor, or you may file a suit in Federal Court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the party you have sued to
pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 
  

	D.	Assistance With Your Questions 

 If you have any question about your Plan, you
should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the
Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution
Avenue NW, Washington, DC 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publication hotline of the Employee Benefits Security Administration. 

*    *    *    *    *    *   
 *    *    *    * 

  
 13 

 IN WITNESS WHEREOF, Career Education Corporation has caused this Plan to be executed this 17 day
of December, 2014. 
  

									
	 CAREER EDUCATION CORPORATION
	 		 	
					
	By:	 	/s/ Scott W. Steffey	 		 		 	December 17, 2014
		 	Signature	 		 		 	Date
					
	Name:	 	Scott W. Steffey	 		 		 	
					
	Title:	 	President & CEO	 		 		 	

  
 14 

 Exhibit 10.1 

Final 
 IMPORTANT PLAN
INFORMATION 
 Plan Name 
 Career
Education Corporation Executive Severance Plan 
 Plan Number 

507 
 Plan Year 

The Plan Year is the calendar year. The end of the year for purposes of maintaining the Plan’s fiscal records is December 31. 

Plan Sponsor 
 Career Education Corporation 

847-781-3600 
 Employer Identification Number (EIN): 36-3932190

 Plan Administrator 
 Career Education
Corporation Employee Benefits Committee 
 c/o Career Education Corporation 

231 N. Martingale Road 
 Schaumburg, Illinois 60173 

847-781-3600

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