Document:

ceco-ex1047_533.htm

Exhibit 10.47

 

 

 

 

 

3/7/2014

 

 

Dear Andrew,

 

 

Welcome to Colorado Technical University! I am pleased to extend an offer to you for the position of President, Colorado Technical University. Your start date will be April 7, 2014 and your position will be based in Schaumburg, IL. This offer is contingent upon successful completion of reference and background checks, final approval by our Compensation Committee and the execution of a non-compete. The terms of our offer are as follows:

 

	
 
	
1.
	
The salary for the position will be $320,000.00 on an annualized basis.

 

	
 
	
2.
	
You will earn vacation at a rate of 20 days (160 hours) per year.

 

	
 
	
3.
	
You will be eligible to participate in the benefit programs available to our employees as soon as you meet the eligibility requirement of each plan. Eligibility begins on the first day of the month following thirty days of employment for most of our benefits plans. You will receive information about the process for enrolling in these benefits, which must be completed within the first 30 days of employment.
	
 

 

	
 
	
4.
	
You will be eligible to participate in the Annual Incentive Award Program (AlP) with a target opportunity of 45% of your eligible earnings for the year. 50% of your AlP will be guaranteed for 2014, irrespective of your eligible earnings for the year.
	
 

 

	
 
	
5.
	
You will receive a cash sign-on bonus of$ 80,000.00. This payment will be made within 30 days of your start date. You must pay taxes on the entire bonus amount. If you decide to leave Colorado Technical University of your own free will within your first year of employment, you will be required to reimburse Colorado Technical University the entire amount of your signing bonus.
	
 

 

	
 
	
6.
	
You will receive a long-term incentive grant equal in value to $240,000.00, subject to final approval by Career Education's Compensation Committee. In consideration of receiving these initial grants, and as a term and condition of your employment with Career Education, you agree to be bound by a 12-month non-compete agreement, the terms of which will be contained in the award agreements granting the restricted stock units and stock options. This initial grant will be made as soon as feasible following your start date and in compliance with regulations established by the Securities and Exchange Commission and Career Education Corporation's policies (i.e., an award cannot be granted during a blackout period). Beginning in 2015 you will be eligible to participate in the Long-Term Incentive Award Program (LTIP) with a target opportunity of 80% of your base salary. LTIP awards are made annually, typically during the first quarter, and participation in the LTIP and award amounts granted thereunder are subject to approval annually by the Compensation Committee of the Board of Directors.
	
 

 

	
 
	
7.
	
You are eligible for our Tier A relocation package, with additional relocation benefits not to exceed $75,000.00 of our Tier A package. Please see the relocation policy documents for further details. All terms, agreements and restrictions apply to the Company Relocation Policy as administered under our vendor. If you decide to leave Colorado Technical University of your own free will or based upon termination due to misconduct before one year of employment from your start date, you will be required to reimburse 
	
 

Exhibit 10.47

	
 
		
Colorado Technical University the entire amount of your relocation cost.
	
 

 

	
 
	
8.
	
You will be required, as part of your new role, to sign a non-compete/non-solicit agreement.   It should be noted that you would not be held to the non-compete provision should you exit Colorado Technical University involuntarily.
	
 

 

This letter contains all agreements, and supersedes all other agreements, verbal and written, pertaining to your employment with Colorado Technical University. Employment at Colorado Technical University is at-will and may be terminated at the will of either you or Colorado Technical University.

 

Andrew, I am excited to have you join Colorado Technical University, and look forward to your contributions to our team and to our students.

 

Sincerely,

 

/s/ Jason Friesen

 

 

Jason Friesen

Sr. VP and Chief University Officer

Career Education Corporation

 

 

 

Accepted and Agreed to:

 

 

   /s/ Andrew H. Hurst                          3/7/2014    

Andrew Hurst  Datececo-ex1048_531.htm

Exhibit 10.48

 

June 15, 2015

PERSONAL AND CONFIDENTIAL

Andrew Hurst

[Address redacted]

 

Dear Andrew:

You are among a select group of key employees who are being included in a Career Education Corporation (“CEC”) retention program.  As we discussed, you play a pivotal role in the organization and in navigating the Company through this period of change to make the company profitable, to better serve its students and other stakeholders.  We value your future contributions to the ongoing success and transformation of the business.

Specifically, in consideration for your continued active employment in good standing with CEC, which shall include, but not be limited to, the successful performance of your day-to-day responsibilities, as well as such additional duties as may be assigned to you through the date below, you will be eligible for Retention Bonus Awards under the terms and conditions set forth below.

Retention Bonus Awards

Cash Award

If you are actively employed in good standing by CEC as of June 15, 2016, (the “Retention Bonus Payment Date”), CEC will make the following Retention Bonus Cash Payment to you:

Retention Bonus Cash Payment:  $56,000, less all applicable deductions

This Retention Bonus Cash Payment will be made to you within fifteen (15) business days after the applicable Retention Bonus Payment Date listed above.  

If you leave the Company (whether by voluntary resignation or involuntary termination for Cause) at any time prior to the time any of the above contingencies have been met, you will not be entitled to any portion of the Retention Bonus Cash Payments prior to your separation from the Company.  A for Cause termination includes, but is not limited to, discharge for poor performance, non-performance, or misconduct.  In the event you are involuntarily terminated from the Company other than for Cause, prior to any of the Retention Bonus Payment Dates listed above, you will be entitled to any Retention Bonus Cash Payment that has not yet become due prior to your separation from the Company.  The payment will be made to you within fifteen (15) business days after your separation from the Company.      

1

 

Exhibit 10.48

 

Stock Award

Restricted Stock Units (“RSU”) with a value of $56,000 as of the grant date will be awarded to you. 

The RSUs will vest in three equal installments over a three-year period. Thus, 1/3 of the grant will vest annually on June 14th over the next three years. Shares of CEC common stock will be issued to you when the RSUs vest. 

Your RSU Award Agreement, being given to you today, will also require your signature. Please read this document carefully as it contains important provisions regarding these grants, including certain restrictive covenants as a condition to receiving the grant, including non-solicit and non-compete terms. 

In the event you are involuntarily terminated from the Company, other than for Cause, prior to any of the RSU vesting dates, the unvested RSUs will be settled and paid to you in cash instead of stock based on the preceding 30-day average closing CEC stock price.  This payment will be made to you within fifteen (15) business days after your separation from the Company.

Employment and Confidentiality

Notwithstanding anything contained herein, you will remain an employee-at-will.  This means you are free to terminate your employment at any time, for any reason, and the Company retains the same right.  

You agree that you will keep completely confidential the terms of this Agreement, and the existence of this Agreement, and that you have not and will not hereafter disclose any information concerning this Agreement and its terms to any person except your immediate family members, attorneys, accountants, tax and financial advisors, provided that each of them is informed of and agrees to keep the information confidential.  

Both the cash and stock awards described above are subject to you signing and returning the RSU Award Agreement in addition to signing and returning this document.

By signing this letter below and returning a copy to me by Monday, June 22nd, you acknowledge that you have read, understand and agree to the terms set forth herein.  We truly appreciate your individual efforts to help chart a path toward sustainable success for us and our employees and students.

Sincerely, 

/s/ Jason Friesen

Jason Friesen

SVP & Chief University Ed Off

2

 

Exhibit 10.48

 

 

AGREED TO AND ACCEPTED BY:

___/s/ Andrew H. Hurst______________________6/21/2015__________

AcceptedDatececo-ex1049_530.htm

Exhibit 10.49

 

October 12, 2015

Mr. John Kline

 

Dear John, 

Welcome to Career Education Corporation. I am pleased to extend an offer to you for the position of Senior Vice President-American InterContinental University (AIU) with Career Education Corporation, reporting directly to me. Your start date will be October 19, 2015. This offer is contingent upon the successful completion of reference and background checks as per our standard protocol for senior officers, final approval by our Compensation Committee and the execution of a non-compete agreement.

 The terms of our offer are as follows: 

	
  
	
1.
	
The salary for the position will be $320,000.00 on an annualized basis. 

	
  
	
2.
	
You will earn vacation at a rate of 20 days (160 hours) per year. 

	
  
	
3.
	
You will be eligible to participate in the benefit programs available to our employees as soon as you meet the eligibility requirement of each plan. Eligibility begins on the first day of the month following thirty days of employment for most of our benefits plans. You will receive information about the process for enrolling in these benefits, which must be completed within the first 30 days of employment. 

	
  
	
4.
	
You will be eligible to participate in the Annual Incentive Award Program (AIP) with a target opportunity of 45% of your eligible earnings for the year.   You will be provided with a minimum guaranteed payout of $30,500.00 for 2015 and a minimum guaranteed payout of $144,000.00 for 2016. To be eligible for each of these bonus payments, you must be employed by the company through December 31st of each bonus year (2015 and 2016). 

	
  
	
5.
	
You will receive a cash sign-on bonus of $30,000.00. This payment will be made within 30 days of your start date and is contingent upon a hire date of October 19, 2015. You must pay taxes on the entire bonus amount. If you decide to leave Career Education Corporation of your own free will within your first year of employment, you will be required to reimburse Career Education Corporation the entire amount of your sign-on bonus within 30 days of your termination date. 

 

 

 

1

 

Exhibit 10.49

	
  
	
6.
	
You will receive a long-term incentive grant equal in value to 80% of your base salary, which is $256,000.00, subject to final approval by Career Education’s Compensation Committee.  In consideration of receiving these initial grants, and as a term and condition of your employment with Career Education, you agree to be bound by a 12-month non-compete agreement, the terms of which will be contained in the award agreements.  This initial grant will be made as soon as feasible following your start date and in compliance with regulations established by the Securities and Exchange Commission and Career Education Corporation’s policies (i.e., an award cannot be granted during a blackout period).  After your first year of service, you will be eligible for long-term incentive (LTI) awards pursuant to Career Education Corporation’s incentive compensation plan with a target opportunity of 80% of your base salary. LTI awards are made annually, typically during the first quarter.  The receipt and terms of LTI awards are subject to annual approval by the Compensation Committee of the Board of Directors. 

	
 
	
7.
	
You are eligible for the Company’s  Executive Severance Plan as such plan exists and may be further amended, restated or replaced from time to time (the “Severance Plan”) subject to satisfaction of the Plan’s relevant requirements. 

	
  
	
8.
	
As a senior officer of the Company, you will be subject to the Company’s Stock Ownership Guidelines which require that you achieve and maintain a certain level of stock ownership (expressed as a multiple of your base salary). We believe the guidelines help align the interests of the senior officer team with those of the Company’s stockholders. You will also be subject to the Company’s insider trading, ethics, compensation recovery and other policies applicable to senior officers of the Company.  Due to the nature of your role, you will become an executive officer of the Company subject to Section 16 of the Securities Exchange Act.  

	
  
	
9.
	
This letter contains all agreements, and supersedes all other agreements, verbal and written, pertaining to your employment with Career Education Corporation.  This offer letter does not constitute a contract of employment or a guarantee of employment for any length of time.  Employment at Career Education Corporation is at-will and may be terminated at the will of either you or Career Education Corporation. 

 

John, I am excited to have you join Career Education Corporation, and look forward to your contributions to our team and to our students. 

 

 

 

 

 

2

 

Exhibit 10.49

Sincerely,

/s/ Todd Nelson

Todd Nelson

President and Chief Executive Officer

Career Education Corporation

 

 

Accepted and agreed to: 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
  /s/ John Kline
	
 
	
 
	
 
	
   10/12/15
	
 
	
 

	
John Kline
	
 
	
 
	
 
	
Date
	
 
	
 

 

3

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