Document:

EX-10.3 Employment Agreement Jack L. Brozman

    

     

    

     

    

     

    

     

    EMPLOYMENT
      AGREEMENT

     

    

     

    by
      and among

     

    

     

    CONCORDE
      CAREER COLLEGES, INC.

     

    and

     

    JACK
      L.
      BROZMAN

     

    

     

     

     

    dated
      as
      of June 21, 2006

    

     

    

     

    
      
        
          

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TABLE OF CONTENTS

    
      	
              1.
                Employment and Duties

               

            	
              .......................................1

               

            
	
              2.
                Term

               

            	
              .......................................1

               

            
	
              3.
                Compensation and Benefits.

               

            	
              .......................................2

               

            
	
                
                3.1 Salary

               

            	
              .......................................2

               

            
	
                
                3.2 Benefits

               

            	
              .......................................2

               

            
	
                
                3.3 Vacation

               

            	
              .......................................2

               

            
	
                
                3.4 Expenses

               

            	
              .......................................2

               

            
	
                
                3.5 Automobile Expense

               

            	
              .......................................2

               

            
	
              4.
                Termination.

               

            	
              .......................................3

               

            
	
                
                4.1 Notice of Termination

               

            	
              .......................................3

               

            
	
                
                4.2 Grounds for Termination.

               

            	
              .......................................3

               

            
	
                
                4.3 Amounts Payable Upon Termination Without Cause

               

            	
              .......................................5

               

            
	
                
                4.4 Procedure Upon Termination

               

            	
              .......................................5

               

            
	
                
                4.5 Severance Pay Statutes; Set-Off

               

            	
              .......................................5

               

            
	
                
                4.6 Certain Rights

               

            	
              .......................................6

               

            
	
              5.
                Covenants.

               

            	
              .......................................6

               

            
	
                
                5.1 Proprietary Information

               

            	
              .......................................6

               

            
	
                
                5.2 Nondisclosure

               

            	
              .......................................6

               

            
	
                
                5.3 Nonsolicitation; Noncompetition and
                Nondisparagement

               

            	
              .......................................7

               

            
	
                
                5.4 Third Party Information

               

            	
              .......................................8

               

            
	
                
                5.5 No Improper Use of Information of Prior Employers and
                Others

               

            	
              .......................................8

               

            
	
                
                5.6 Equitable Relief

               

            	
              .......................................9

               

            
	
                
                5.7 Consideration

               

            	
              .......................................9

               

            
	
                
                5.8 Scope

               

            	
              .......................................9

               

            
	
              6.
                Work Product.

               

            	
              .......................................9

               

            
	
                
                6.1 Ownership

               

            	
              ......................................10

               

            
	
                
                6.2 Works for Hire

               

            	
              ......................................10

               

            
	
                
                6.3 Obligation to Keep Company Informed

               

            	
              ......................................10

               

            
	
                
                6.4 Enforcement of Proprietary Rights

               

            	
              ......................................10

               

            
	
              7.
                Prior Agreements

               

            	
              ......................................10

               

            
	
              8.
                Disclosure to Future Employer

               

            	
              ......................................11

               

            
	
              9.
                Miscellaneous.

               

            	
              ......................................11

               

            
	
                
                9.1 Successors and Assigns

               

            	
              ......................................11

               

            
	
                
                9.2 Notices

               

            	
              ......................................11

               

            
	
                
                9.3 Entire Understanding; Modification

               

            	
              ......................................11

               

            
	
                
                9.4 Severability

               

            	
              ......................................11

               

            
	
                
                9.5 Counterparts

               

            	
              ......................................11

               

            
	
                
                9.6 Enforcement

               

            	
              ......................................12

               

            
	
                
                9.7 Section Headings; References

               

            	
              ......................................12

               

            
	
                
                9.8 Waivers

               

            	
              ......................................12

               

            
	
                
                9.9 Controlling Law; Jurisdiction

               

            	
              ......................................12

               

            
	
                
                9.10 Delivery by Facsimile

               

            	
              ......................................12

               

            
	
                
                9.11 Interpretation of Agreement

               

            	
              ......................................12

               

            
	
                
                9.12 Survival

               

            	
              ......................................13

               

            
	
                
                9.13 Effectiveness

               

            	
              ......................................13

               

            

    

    

     

     

     

    
      
        
          

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    INDEX
      OF DEFINED TERMS

    

    Term                                                                                                                                                                                                                                         
      Page

    

    
      	
              Agreement

               

            	
              .........................................................1

               

            
	
              Benefits

               

            	
              .........................................................2

               

            
	
              Board

               

            	
              .........................................................1

               

            
	
              Cause

               

            	
              .........................................................4

               

            
	
              COBRA

               

            	
              .........................................................3

               

            
	
              Company

               

            	
              .........................................................1

               

            
	
              Company’s
                Business

               

            	
              .........................................................8

               

            
	
              Concorde

               

            	
              .........................................................1

               

            
	
              Covenant
                Period

               

            	
              .........................................................8

               

            
	
              Covenants

               

            	
              .........................................................9

               

            
	
              Date
                of Termination

               

            	
              .........................................................3

               

            
	
              Executive

               

            	
              .........................................................1

               

            
	
              Inventions

               

            	
              .........................................................6

               

            
	
              Notice
                of Termination

               

            	
              .........................................................3

               

            
	
              Permanently
                Disabled

               

            	
              .........................................................4

               

            
	
              Person

               

            	
              .........................................................7

               

            
	
              Proprietary
                Information

               

            	
              .........................................................6

               

            
	
              Proprietary
                Rights

               

            	
              .......................................................10

               

            
	
              Salary

               

            	
              .........................................................2

               

            
	
              Severance
                Pay Statutes

               

            	
              .........................................................5

               

            
	
              Term

               

            	
              .........................................................2

               

            
	
              Third
                Party Information

               

            	
              .........................................................8

               

            
	
              Work
                Product

               

            	
              ........................................................10

               

            

    

    

     

    
      
        
          

           

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    EMPLOYMENT
      AGREEMENT

     

    

     Parties: 
CONCORDE
      CAREER COLLEGES, INC.
      (the
“Company”
or
      “Concorde”
”),
      a
      Delaware corporation

                                 
      5800
      Foxridge Drive

                                 
      Mission,
      Kansas 66202

     

                 
      JACK L. BROZMAN
      (“Executive”)
      

                                 
      c/o
      Concorde Career Colleges, Inc.

                                 
      5800 Foxridge Drive

                                 
      Mission,
      Kansas 66202

     

    Date: June
      21,
      2006

    

    Background

    

    Concorde
      intends to employ the Executive pursuant to the terms and conditions set forth
      in this Employment Agreement (“Agreement”).
      Intending to be legally bound, in consideration of the mutual agreements
      contained herein, the receipt and sufficiency of which are hereby acknowledged,
      the parties hereto agree as follows:

    

    1.  Employment
      and Duties.
      The
      Company shall employ Executive, and Executive hereby accepts such employment,
      as
      President of Concorde during the term of employment set forth in Section
2.
      Executive shall have customary responsibilities for such position commensurate
      with the position of President of an entity comparable to the Company, including
      the powers and duties set forth in the Bylaws of the Company for such office,
      subject to the direction of the Chairman and Chief Executive Officer of the
      Company and the Board. Executive shall report to the Chairman and Chief
      Executive Officer of the Company or such other officer as designated by the
      Chairman and Chief Executive Officer of the Company and shall assume such other
      responsibilities and duties, consistent with his position and expertise, as
      may
      from time to time be reasonably prescribed by the Board of Directors of the
      Company (collectively, the “Board”).
      Executive shall devote his full business time, energy, skill and efforts to
      the
      business and affairs of the Company; provided
      that
      Executive may devote up to three (3) hours per week to his duties as Chairman
      of
      the First State Bank of Kansas City, Kansas. Executive acknowledges and agrees
      that he shall observe and comply with all of the Company’s policies as
      prescribed by the Board in writing or otherwise. Nothing in this Section
1,
      however, shall prohibit Executive from (i) serving as a director or trustee
      of a
      governmental, charitable or educational organization; provided
      that
      such activities are not inconsistent with Executive’s duties under this
      Agreement and do not violate the terms of Section 5
      hereof;
      and provided
      further
      that
      Executive has received written approval of the Board which shall not be
      unreasonably withheld or delayed; or (ii) engaging in additional activities
      in
      connection with personal investments and community affairs that are not
      inconsistent with Executive’s duties under this Agreement and do not violate the
      terms of Section 5
      hereof.

     

    2.  Term.
      The
      term of employment under this Agreement shall be a period commencing on the
      date
      of the Closing (as defined in the Agreement and Plan of Merger dated as of
      June
      21, 2006 (the “Merger
      Agreement”)
      by and
      among Liberty
      Partners Holdings 28 LLC, Teach Acquisition Corporation, and the Company) (the
      “Effective
      Date”)
      and
      ending on the first anniversary of such date, unless terminated earlier in
      accordance with the other provisions hereof (the “Term”).
      This
      Agreement can only be renewed with the express, written consent of the
      Parties. 

     

    
      
         

      

      
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    3.  Compensation
      and Benefits.

     

    3.1  Salary.
      As long
      as Executive remains an employee of the Company, the Company shall pay to
      Executive as compensation for services rendered hereunder a base salary of
      not
      less than Two Hundred Ninety Two Thousand Five Hundred Dollars ($292,500) per
      year (the “Salary”),
      payable in accordance with the Company’s normal payroll practices for the
      Company’s senior executive officers. The Company shall deduct or cause to be
      deducted from the Salary all taxes and amounts required by law to be withheld,
      as well as any amounts due from Executive with respect to executive benefit
      plans in which Executive participates. 

     

    3.2  Benefits.
      During
      the Term, subject to the other provisions of this Agreement, Executive shall
      be
      entitled to participate and shall be included in any savings, deferred
      compensation, pension, profit sharing, life insurance, disability insurance
      (short and long term), accidental death and dismemberment insurance,
      hospitalization, major medical, dental and other employee benefit plans of
      the
      Company generally available to executive officers to the extent Executive is
      eligible under the general provisions thereof (collectively, the “Benefits”),
      which
      may change from time to time in the sole discretion of the Company. Executive
      shall not be entitled to participate in any stock option or equity compensation
      plan of Concorde. Nothing in this Section 3.2,
      in and
      of itself, shall be construed to limit the ability of the Company to amend
      or
      terminate any particular plan, program or arrangement. 

     

    3.3  Vacation.
      During
      the Term, Executive shall be entitled to vacation benefits in accordance with
      the vacation policies of the Company in effect for its executive officers from
      time to time, which vacation shall be taken by Executive at such time or times
      as approved by the Board; provided,
      however, that
      Executive agrees to be reasonably accessible to the Company and the Board by
      phone and/or electronic mail for the duration of any such vacation. 

     

    3.4  Expenses.
      During
      the Term, the Company shall pay or reimburse Executive for all ordinary,
      necessary, documented and reasonable business-related expenses actually incurred
      by Executive in the course of the performance of his duties under this
      Agreement, including travel and out-of-pocket expenses, in accordance with
      the
      Company’s policies with respect to reimbursement as in effect from time to time.
      Executive shall keep an itemized account of such expenses, which shall be
      submitted to the Company monthly together with original receipts or other
      satisfactory documentation substantiating such expenses. 

     

    3.5  Automobile
      Expense.
      The
      Company shall reimburse the Executive for the lease on his current automobile
      through the Date of Termination, as defined below. The Executive is personally
      responsible for all other costs related to his automobile (e.g., insurance,
      maintenance, gas, etc.). Any changes in the amount of reimbursement (due to
      a
      change in automobile) must be approved in writing by the Chairman and Chief
      Executive Officer of the Company. In the event the Executive is terminated
      with
      cause (under Section 4.2.3) or voluntarily resigns (under Section 4.2.5), the
      Company shall cease paying Executive’s automobile expenses under this Section
      3.5. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.  Termination.

     

    4.1  Notice
      of Termination.
      Any
      termination by the Company or by Executive, other than due to Executive’s death,
      shall be communicated by written Notice of Termination to the other party.
      As
      used in this Agreement, (a) “Notice
      of Termination”
means
      a
      written notice specifying the termination provision in this Agreement relied
      upon and (b) “Date
      of Termination”
means
      (a) the date of death or (b) the earlier of (i) the date specified in the Notice
      of Termination or (ii) the last day Executive is employed by the Company, as
      the
      case may be.

     

    4.2  Grounds
      for Termination.

     

    4.2.1  Termination
      upon Death.
      Executive’s employment with the Company and all of his rights to Salary and
      Benefits hereunder shall automatically terminate upon his death, except that
      his
      heirs, personal representatives or estate (as the case may be) shall be entitled
      to (a) reimbursement of documented, unreimbursed expenses incurred prior to
      the
      Date of Termination and (b) any earned but unpaid portion of his Salary and
      Benefits until the end of the Term. Executive’s heirs’, personal
      representatives’ or estate’s (as the case may be) election to receive payment
      under this Section 4.2.1
      shall be
      in lieu of all other amounts and conditioned upon such heirs’, personal
      representatives’ or estate’s execution (without revocation) of a valid release
      agreement in a form reasonably acceptable to the Company pursuant to which
      such
      heirs, personal representatives or estate release(s) the Company and its
      Affiliates from all claims that Executive or his heirs, personal representatives
      or estate may have against them.
      Executive’s dependents shall have any conversion rights available under the
      Company’s medical insurance plan and as otherwise provided by law including the
      Comprehensive Omnibus Budget Reconciliation Act (“COBRA”).
      The
      period during which Executive’s dependents shall be entitled to continuation
      coverage under COBRA shall begin on the day after the Date of Termination.
      If
      Executive’s dependents elect to continue coverage under the medical insurance
      plans after the Date of Termination, Executive’s dependents shall be responsible
      for all premiums, as permitted by law. For purposes of this Agreement, an
“Affiliate”
of
      any
      Person (as defined herein) shall mean any other person or entity that, directly
      or indirectly, is controlled by or is under common control with such person
      or
      entity.

     

    4.2.2  Termination
      upon Disability.
      If
      Executive becomes Permanently Disabled (as defined herein), then the Company
      shall have the right to terminate Executive’s employment immediately upon Notice
      of Termination and Executive shall be entitled to (a) reimbursement of
      documented, unreimbursed expenses incurred prior to the Date of Termination,
      (b)
      any unpaid portion of his Salary and Benefits until the end of the Term, and
      (c)
      benefits under any disability insurance policy or plan provided to or for the
      benefit of Executive; provided
      that
      any
      payment under this Section 4.2.2
      shall be
      reduced, dollar-for-dollar, by any amounts received by Executive under any
      disability insurance policy or plan provided to Executive by the Company.
      Executive and his dependents shall have any conversion rights available under
      the Company’s medical insurance plan and as otherwise provided by law including
      COBRA. The period during which Executive and his dependents shall be entitled
      to
      continuation coverage under COBRA shall begin on the day after the Date of
      Termination. If Executive or his dependents elect to continue coverage under
      the
      medical insurance plans after the Date of Termination, Executive shall be
      responsible for all premiums, as permitted by law. For purposes of this
      Agreement, “Permanently
      Disabled”
shall
      mean any permanent disability that qualifies Executive for full benefits under
      any disability insurance policy or plan provided to Executive by the Company,
      if
      any, or, if the Company does not maintain any such policy, the inability of
      the
      Executive to attend to the essential and regular functions of Vice President
      and
      Chief Financial Officer on a full time basis, with or without reasonable
      accommodations, by reason of physical or mental incapacity, sickness or
      infirmity for a period of (i) ninety (90) consecutive days or (ii) one hundred
      twenty (120) days in any twelve (12)-month period. Executive’s election to
      receive payment under this Section 4.2.2
      shall be
      in lieu of all other amounts and conditioned upon Executive’s execution (without
      revocation) of a valid release agreement in a form reasonably acceptable to
      the
      Company pursuant to which Executive releases the Company and its Affiliates
      from
      all claims that Executive may have against them. In the event of a dispute
      as to
      whether Executive is Permanently Disabled, the Company may refer Executive
      to a
      mutually acceptable licensed practicing physician, at Company’s expense, whose
      written report shall be final and binding upon the parties, and Executive agrees
      to submit to such reasonable tests and examination as such physician shall
      deem
      appropriate. If Executive fails or refuses for any reason to promptly submit
      to
      any reasonable examination requested by such physician, then Executive shall
      not
      be considered to be
      Permanently Disabled.

     

    
      
         

      

      
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    4.2.3  Termination
      for Cause.
      At any
      time during the Term, the Company may terminate Executive’s employment hereunder
      for Cause (as defined herein), effective immediately upon Notice of Termination.
      Upon termination of this Agreement pursuant to this Section 4.2.3,
      all of
      Executive’s rights to Salary and Benefits hereunder shall automatically
      terminate as of the Date of Termination, except that Executive shall be entitled
      to (a) reimbursement of documented, unreimbursed expenses incurred through
      the
      Date of Termination and (b) any earned but unpaid portion of his Salary and
      Benefits to the Date of Termination. 

     

    For
      purposes of this Agreement, “Cause”
shall
      mean: (a) Executive’s willful misconduct, fraud, usurpation of corporation
      opportunity or gross negligence with respect to the Company or his duties
      hereunder or a material breach of any fiduciary duty owed to the Company or
      any
      of its Affiliates; (b) Executive’s failure to adhere to the Company’s policies
      or to perform assigned duties (other than any such failure resulting from
      incapacity due to physical or mental illness); provided
      that
      Executive shall first be given five (5) days following notice from the Company
      to comply with such policies or to perform such duties; (c) a material breach
      by
      Executive of the agreements and covenants contained in this Agreement; (d)
      Executive’s conviction of or plea of nolo
      contendere
      with
      respect to a felony, any crime involving fraud, larceny or embezzlement or
      any
      other crime involving moral turpitude which subjects, or if generally known,
      would subject, the Company or any of its Affiliates to public ridicule or
      embarrassment; or (e) habitual intoxication or the use of illegal drugs by
      Executive. 

     

    4.2.4  Termination
      Without Cause.
      At any
      time during the Term, the Company may terminate Executive’s employment without
      Cause, effective immediately upon Notice of Termination. Except for payments
      to
      Executive as set forth in Section 4.3,
      the
      Company shall have no further obligation or liability to Executive under this
      Agreement upon a termination pursuant to this Section 4.2.4.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.2.5  Elective
      Termination.
      Executive may voluntarily terminate his employment with the Company at any
      time
      during the Term upon ninety (90) days prior written notice. Executive’s
      employment with the Company and all of his rights to Salary and Benefits
      hereunder shall automatically terminate on the ninetieth (90th)
      day
      after Notice of Termination is given by Executive to the Company pursuant to
      this Section 4.2.5.
      Except
      for reimbursement of documented, unreimbursed expenses incurred prior to the
      Date of Termination and the payment of any earned but unpaid portion of
      Executive’s Salary and Benefits up to the Date of Termination, the Company shall
      have no further obligation or liability to Executive under this Agreement upon
      a
      termination of employment by Executive pursuant to this Section 4.2.5.
      Notwithstanding the provisions of this Section 4.2.5,
      the
      Company may elect in its sole discretion to permit the termination of
      Executive’s employment in advance of such ninetieth (90th)
      day
      after Notice of Termination is given;
      provided
      that
      Executive’s right to Salary and Benefits hereunder shall automatically terminate
      on such earlier date of termination.

     

    4.3  Amounts
      Payable Upon Termination Without Cause.
      If
      Executive’s employment is terminated pursuant to Sections 4.2.4,
      (a)
      Executive shall be entitled to receive, in lieu of all other amounts, upon
      Executive’s execution (without revocation) of a valid release agreement in a
      form acceptable to the Company pursuant to which Executive releases the Company
      and its Affiliates from all claims that Executive may have against them, payment
      of the Executive’s Salary through the end of the Term, payable in accordance
      with the Company’s normal payroll practices for the Company’s officers, (ii)
      reimbursement of documented, unreimbursed expenses incurred by Executive prior
      to the Date of Termination and (iii) Benefits under any employee benefit plans
      in which Executive was a participant on the Date of Termination, to the extent
      such plans allow such continued participation; provided
      that
      such
      compensation and benefits shall terminate immediately upon any material breach
      by Executive of his obligations under this Agreement.

     

    4.4  Procedure
      Upon Termination.
      On
      termination of employment regardless of the reason, Executive (or his heirs,
      representatives or estate as the case may be) shall promptly return to the
      Company all property, equipment, credit cards, keys, etc., documents (including
      copies) and other property containing or disclosing Proprietary Information
      (as
      defined in Section 5.1)
      or
      Third Party Information (as defined in Section 5.4),
      including customer lists, manuals, letters, materials, reports and records
      in
      Executive’s possession or control no matter from whom or in what manner
      acquired.

     

    4.5  Severance
      Pay Statutes; Set-Off.
      Executive expressly acknowledges and agrees that the consideration received
      by
      Executive under this Agreement fully satisfies all potential obligations of
      the
      Company for any severance pay or other amounts to which Executive may become
      entitled under any state or local law, rule or regulation regarding severance
      pay, termination of employment or related matters (collectively, “Severance
      Pay Statutes”).
      To
      the fullest extent permitted by law, Executive voluntarily and irrevocably
      waives all rights, including any rights to severance pay or other amounts,
      to
      which Executive may become entitled under any applicable Severance Pay Statutes,
      and Executive releases and forever discharges the Company from and against
      any
      obligations which he may have under any applicable Severance Pay Statutes;
      provided
      that
      the
      Company is in material compliance with this Agreement. The Company shall be
      entitled to set-off against amounts payable to Executive the amounts of any
      and
      all claims that the Company may have against Executive for which Executive
      has
      been finally adjudicated to have been liable. 

     

    
      
         

      

      
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    4.6  Certain
      Rights.
      Nothing
      in this Section 4
      is
      intended to preclude Executive from receiving any vested or accrued
      Benefits which are to be continued or paid after the Date of Termination in
      accordance with the terms of the corresponding plans for such
      Benefits.

     

    5.  Covenants.

     

    5.1  Proprietary
      Information.
      Executive recognizes and acknowledges that by reason of his employment by and
      service with the Company he will have access to confidential and/or proprietary
      information of the Company and its Affiliates, including (a) trade secrets,
      inventions, ideas, processes, apparatus, equipment, data, programs, listings,
      patents, copyrights, trademarks, service marks, works of authorship, know-how,
      improvements, discoveries, developments, designs, sketches, drawings, models
      and
      techniques relating to the current, future and proposed products and services
      of
      the Company (collectively, “Inventions”);
      (b)
      information regarding plans for research, development, new products, product
      design, details and specifications, engineering, marketing and sales, business
      records and plans, budgets, plans for future developments, business forecasts,
      financial statements and other financial information, licenses, prices and
      costs, procurement requirements, policies or operational methods, suppliers,
      customers, potential customers and key personnel; and (c) the terms of this
      Agreement ((a), (b) and (c) collectively, “Proprietary
      Information”).
      Executive hereby assigns to the Company all rights he may have or acquire in
      such Proprietary Information and recognizes that all Proprietary Information
      shall be the sole property of the Company and its assigns.

     

    5.2  Nondisclosure.
      Executive covenants and agrees that he shall not, for as long as he is employed
      by the Company and at all times thereafter, except with the express prior
      written consent of the Company, directly or indirectly, whether as an employee,
      associate, owner, partner, member, agent, director, officer, shareholder,
      consultant, representative or in any other capacity, for his own account or
      for
      the benefit of any Person, communicate, disclose, divulge, provide commentary
      regarding or make available to any Person any of the Company’s Proprietary
      Information;
      provided
      that the
      provisions of this Section 5.2
      shall
      not apply to information that (a) is or becomes generally available to the
      public other than as a result of disclosure by Executive, (b) was readily
      available to Executive on a non-confidential basis prior to its disclosure
      to
      Executive by the Company, (c) was in Executive’s lawful possession as evidenced
      by records kept in the ordinary course of business or by proof of actual prior
      possession; (d) becomes available to Executive on a non-confidential basis
      from
      a source other than the Company, provided
      that
      such source is not known by Executive to be bound by confidentiality agreements
      with the Company or its Affiliates (or any representatives thereof) or by legal
      or fiduciary constraints on disclosure of such information, or (e) is required
      to be disclosed pursuant to an order or other law, provided
      that
      Executive shall give the Company prompt notice thereof prior to such disclosure
      and, at the request of the Company, shall cooperate in all reasonable respects
      in maintaining the confidentiality of Proprietary Information so required to
      be
      disclosed, including obtaining a protective order or other similar order.
      Nothing in this Section 5.2
      shall
      limit in any respect Executive’s ability to disclose information as required in
      connection with Executive’s performance of this Agreement or the enforcement by
      Executive of his rights under this Agreement, subject to the proviso of clause
      (e) in the immediately preceding sentence. For purposes of this Agreement,
      “Person”
means
      a
      natural person, corporation, partnership, limited liability company, trust,
      estate, joint venture, sole proprietorship, government (and any branch or
      subdivision thereof), governmental agency, association, cooperative or other
      entity.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    5.3  Nonsolicitation;
      Noncompetition and Nondisparagement.
      Executive acknowledges that: (a) the Company’s Business (as defined in Section
5.3.6)
      is
      highly competitive and faces competition from numerous and a variety of Persons;
      (b) the Company’s Business requires substantial and continuous expenditures of
      time and money to develop, market and maintain; and (c) he has performed
      services requiring specialized skills. Accordingly, during the period of
      Executive’s employment with the Company and for the Covenant Period (as defined
      in Section 5.3.7),
      Executive shall not, except with the Company’s express prior written consent,
      directly or indirectly, whether as an employee, associate, owner, partner,
      member, agent, director, officer, shareholder, consultant, representative or
      in
      any other capacity, for Executive’s own account or for the benefit of any
      Person, with or without compensation:

     

    5.3.1  Solicit,
      service, contact, divert, take away or interfere with, or aid in the
      solicitation, servicing, contacting, diverting, taking away or interfering
      with,
      any customers, distributors, vendors, suppliers, licensees, licensors, strategic
      partners, other business relations or prospects of the Company (or any of the
      Company’s Affiliates) for the purpose of (a) selling goods or performing
      services in competition with the Company’s Business, (b) inducing any such
      customer, distributor, vendor, supplier, licensee, licensor, strategic partner,
      other business relation or prospect to cancel, transfer or cease doing business
      in whole or in part with the Company (or any of the Company’s Affiliates) or (c)
      inducing any such customer, distributor, vendor, supplier, licensee, licensor,
      strategic partner, other business relation or prospect to do business with
      any
      Person in competition with the Company’s Business or in any way interfere with
      its relationship with the Company (or any of the Company’s
      Affiliates);

     

    5.3.2  Solicit,
      contact, divert, encourage or induce, or aid in the solicitation, contacting,
      diverting, encouragement or inducement of, any Person who is (or was within
      the
      previous twelve (12) months) an employee, associate, consultant, agent or
      representative of the Company (or any of the Company’s Affiliates) to leave the
      employ of the Company (or any of the Company’s Affiliates) or to work for
      Executive or any Person with whom or which Executive is connected or affiliated
      or in any way interfere with the Company’s (or any of the Company’s Affiliates’)
      relationship with such Person;

     

    5.3.3  Hire
      or
      retain any Person who is (or was within the previous twelve (12) months) an
      employee, associate, consultant, agent or representative of the Company (or
      any
      of the Company’s Affiliates);

     

    5.3.4  Establish,
      own, manage, operate, finance or control, participate in the establishment,
      ownership, management, operation, financing or control of, render consulting
      or
      other services to, guarantee the liabilities or any other obligations of, permit
      his name to be used in connection with, or be otherwise connected in any manner
      with any Person, business or proposed business engaged, or planning to be
      engaged, in the Company’s Business within one hundred (100) miles of any
      existing or proposed location of the Company (or any of the Company’s
      Affiliates) if (a) such Person, business or proposed business competes directly
      or indirectly with the Company’s Business or (b) such Person, business or
      proposed business competes with the Company’s Business with regard to any
      customers of the Company or its Affiliates that Executive called on, serviced,
      solicited, attempted to solicit, had contact with or became aware of during
      the
      Term; provided
      that
      nothing in this Section 5.3.4
      shall
      prevent Executive from owning not more than one percent (1%) of the outstanding
      securities of any Person that is engaged in a business in competition with,
      or
      similar to, the Company’s Business having a class of securities listed on any
      national securities exchange or quoted on the NASDAQ National Market or Small
      Cap Market; provided
      that
      Executive has no other connection or relationship with such Person;
      or

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    5.3.5  Take
      any
      action that is intended, or would reasonably be expected, to harm or disparage
      the Company (or any of its Affiliates) or any of their shareholders, directors,
      officers, employees or agents, to impair the Company’s (or any of its
      Affiliates’) reputation, or to lead to unwanted or unfavorable publicity to the
      Company (or its Affiliates).

     

    5.3.6  The
      “Company’s
      Business”
shall
      mean the business of proprietary post-secondary education in allied health
      and
      such other businesses, products and services as the Company or any of its
      subsidiaries provide during the Term.

     

    5.3.7  The
      “Covenant
      Period”
means
      a
      period equal to twenty-four (24) months after the Date of Termination (for
      any
      reason whatsoever) or expiration of Executive’s employment with the Company;
provided
      that
      in
      the event of any breach by Executive of this Section 5.3,
      the
      Covenant Period shall be extended by the period of the duration of such
      breach. 

     

    5.4  Third
      Party Information.
      Executive understands that the Company has received and in the future will
      receive from third parties confidential or proprietary information
      (“Third
      Party Information”)
      subject to a duty on the Company’s part to maintain the confidentiality of such
      information and to use it only for certain limited purposes. During the Term
      and
      at all times thereafter, Executive shall hold Third Party Information in
      confidence to the same extent required of the Company and shall not communicate,
      disclose, divulge, provide commentary regarding or make available to any Person
      (other than Company personnel who need to know such information in connection
      with their work for the Company) or use, except in connection with his work
      for
      the Company, Third Party Information without the Board’s express prior written
      consent.

     

    5.5  No
      Improper Use of Information of Prior Employers and Others.
      During
      his employment with the Company, Executive shall not improperly use or
      communicate, disclose, divulge, provide commentary regarding or make available
      any confidential information or trade secrets, if any, of any former employer
      or
      any other Person to whom Executive has an obligation of confidentiality, and
      Executive shall not bring onto the premises of the Company any unpublished
      documents or any property belonging to any former employer or any other Person
      to whom Executive has an obligation of confidentiality unless consented to
      in
      writing by that former employer or Person. 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    5.6  Equitable
      Relief.
      Executive acknowledges that any breach by his of any of the covenants and
      agreements set forth in this Section 5
      (collectively, the “Covenants”)
      will
      result in irreparable injury to the Company for which monetary damages could
      not
      adequately compensate the Company. Therefore, in the event that Executive
      breaches or threatens to commit a breach of any of the Covenants, the Company
      shall have the following rights and remedies, each of which rights and remedies
      shall be independent of the other and severally enforceable, and all of which
      rights and remedies shall be in addition to, and not in lieu of, any other
      rights and remedies available to the Company under law or in
      equity:

     

    5.6.1  The
      right
      and remedy to have the Covenants specifically enforced by any court having
      equity jurisdiction, including the right to any entry against Executive for
      restraining orders and injunctions (preliminary, mandatory, temporary and
      permanent) against violations, threatened or actual, and whether or not then
      continuing, of such covenants, it being acknowledged and agreed that any such
      breach or threatened breach will cause irreparable injury to the Company and
      that money damages alone will not provide adequate remedy to the Company;
      and

     

    5.6.2  The
      right
      and remedy to require Executive to account for and pay over to Company all
      compensation, profits, monies, accruals, increments or other benefits derived
      or
      received by Executive as a result of any transactions constituting a breach
      of
      any of the Covenants. 

     

    5.7  Consideration.
      Executive expressly acknowledges and agrees that (a) the Covenants (i) may
      limit
      his ability to earn a livelihood in a business similar to the Company’s
      Business, (ii) are the result of arm’s-length negotiations between the parties,
      and without Executive’s agreement to be bound by the Covenants, the Company
      would not have entered into this Agreement, (iii) are reasonable and valid
      in
      geographical scope and duration and in all other respects, (iv) do not impose
      a
      greater restraint than necessary to protect the goodwill or other business
      interests of the Company, (v) are not harmful to the general public, and (vi)
      are not unduly burdensome to Executive; and (b) the level of compensation and
      benefits provided to Executive hereunder includes good and adequate
      consideration for the Covenants. In consideration of the foregoing and in light
      of Executive’s education, skills and abilities, Executive agrees that he shall
      not assert, and it should not be considered, that any provisions of this Section
      5
      otherwise are void, voidable or unenforceable or should be voided or held
      unenforceable.

     

    5.8  Scope.
      If any
      portion of any Covenant or its application is construed to be invalid, illegal
      or unenforceable, then the other portions and their application shall not be
      affected thereby and shall be enforceable without regard thereto. If any of
      the
      Covenants is determined to be unenforceable because of its scope, duration,
      geographical area or similar factor, then the court making such determination
      shall have the power to reduce or limit such scope, duration, area or other
      factor, and such Covenant shall then be enforceable in its reduced or limited
      form.

     

    6.  Work
      Product.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    6.1  Ownership.
      Executive acknowledges that all Inventions (and all Proprietary Rights (as
      defined herein) with respect thereto) which relate to (a) the Company’s
      Proprietary Information or (b) the Company’s or any of its Affiliates’ actual or
      anticipated business, research and development or existing or future products
      or
      services and which are conceived, developed or made by Executive while employed
      by the Company and its Affiliates (collectively, “Work
      Product”)
      belong
      to the Company or such Affiliate and hereby irrevocably and perpetually assigns,
      transfers and conveys and agrees to so assign, transfer and convey in the future
      to the Company all his right, title and interest in and to such Work Product.
      Executive acknowledges that such assignment does not violate the terms and
      conditions of any agreement to which he is a party by which he is bound. For
      purposes of this Agreement, “Proprietary
      Rights”
means
      all trade secret, patent, copyright, mask work and other intellectual property
      rights throughout the world.

     

    6.2  Works
      for Hire.
      Executive acknowledges that all Work Product or other original works of
      authorship which are made by Executive (solely or jointly with others) within
      the scope of Executive’s employment and which are protectable by copyright are
“works made for hire,” pursuant to United States Copyright Act (17 U.S.C.,
      Section 101) and, to the extent that such Work Product or other original works
      of authorship may not be deemed “works made for hire,” in accordance with
      Section 6.1
      above,
      hereby irrevocably or perpetually assigns, transfers and conveys and agrees
      to
      so assign, transfer and convey in the future to the Company all his right,
      title
      and interest in and to such Work Product or other original work of
      authorship.

     

    6.3  Obligation
      to Keep Company Informed.
      During
      the Covenant Period, Executive shall promptly disclose to the Company fully
      and
      in writing all Work Product authored, conceived or reduced to practice by
      Executive, either alone or jointly with others. In addition, Executive shall
      promptly disclose to the Company all patent or copyright applications filed
      by
      Executive or on Executive’s behalf during the Covenant Period.

     

    6.4  Enforcement
      of Proprietary Rights.
      Executive shall assist the Company in every reasonable way to obtain, and from
      time to time enforce, United States and foreign rights relating to Work Product
      in any and all countries. To that end Executive shall execute, verify and
      deliver such documents and perform such other acts (including appearances as
      a
      witness) as the Company may reasonably request for use in applying for,
      obtaining, perfecting, evidencing, sustaining and enforcing such rights and
      the
      assignment thereof. In addition, Executive shall execute, verify and deliver
      assignments of such rights to the Company or its designee. Executive’s
      obligation to assist the Company with respect to rights relating to such Work
      Product in any and all countries shall continue beyond the termination of his
      employment, but the Company shall compensate Executive at a reasonable rate
      after his termination for the time actually spent by Executive at the Company’s
      request on such assistance. Executive hereby waives and quitclaims to the
      Company any and all claims, of any nature whatsoever, which Executive now or
      may
      hereafter have for infringement of any Work Product assigned hereunder to the
      Company.

     

    7.  Prior
      Agreements.
      Executive represents to the Company (a) that there are no restrictions,
      agreements or understandings whatsoever to which Executive is a party which
      would prevent or make unlawful Executive’s execution of this Agreement or
      Executive’s employment hereunder, (b) that Executive’s execution of this
      Agreement and Executive’s employment hereunder shall not constitute a breach of
      any contract, agreement or understanding, oral or written to which Executive
      is
      a party or by which Executive is bound, (c) that Executive is free and able
      to
      execute this Agreement and to enter into employment with the Company and (d)
      that this Agreement is a valid and binding obligation of Executive, enforceable
      in accordance with its terms.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    8.  Disclosure
      to Future Employer.
      Executive agrees that he shall provide, and that the Company may similarly
      provide in its discretion, a copy of the covenants contained in Sections
5
      and
6
      of this
      Agreement to any business enterprise which could reasonably be determined to
      compete, directly or indirectly, with the Company’s Business which Executive
      may, directly or indirectly, own, manage, operate, finance, join, control or
      in
      which Executive participates in the ownership, management, operation, financing
      or control, or with which Executive may be connected as director, officer,
      shareholder, member, executive, partner, principal, employee, agent,
      representation, consultant or otherwise.

     

    9.  Miscellaneous.

     

    9.1  Successors
      and Assigns.
      The
      rights and protections of the Company hereunder shall extend to any successors
      or assigns of the Company and to the Company’s Affiliates. This Agreement may be
      assigned by the Company without Executive’s consent. This Agreement is not
      assignable by Executive.

     

    9.2  Notices.
      All
      notices, requests, demands, consents or other communications required or
      permitted to be given under this Agreement shall be in writing and shall be
      deemed to have been duly given (a) upon delivery if delivered personally, (b)
      three (3) business days after mailing by first class certified mail, return
      receipt requested, postage prepaid; or (c) one (1) day after delivery to a
      nationally recognized overnight courier service, postage or delivery charges
      prepaid, to the parties at their respective addresses set forth on the first
      page of this Agreement.

     

    9.3  Entire
      Understanding; Modification.
      This
      Agreement sets forth the entire understanding between the parties with respect
      to the subject matter hereof and supersedes all prior and contemporaneous
      written, oral, expressed or implied, communications, agreements and
      understandings with respect to the subject matter hereof,
      provided
      that
      Executive acknowledges and agrees that he is subject to other employment
      policies which may be established, modified or deleted by the Company not in
      conflict with the express terms of this Agreement. This Agreement shall not
      be
      amended, modified, supplemented or terminated except in writing signed by both
      parties. No action taken by the Company hereunder, including any waiver, consent
      or approval, shall be effective unless authorized by the Board.

     

    9.4  Severability.
      If any
      provision of this Agreement is construed to be invalid, illegal or
      unenforceable, then the remaining provisions hereof shall not be affected
      thereby and shall be enforceable without regard thereto.

     

    9.5  Counterparts.
      This
      Agreement may be fully executed in any number of counterparts, each of which
      when so executed and delivered shall be an original hereof, and it shall not
      be
      necessary in making proof of this Agreement to produce or account for more
      than
      one (1) counterpart hereof.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    9.6  Enforcement.
      In the
      event that any action is brought to enforce any of the provisions of this
      Agreement, or to obtain money damages for the breach thereof, and such action
      results in the award of a judgment for money damages or the granting of any
      injunction in favor of one of the parties to this Agreement, all expenses
      thereof, including reasonable attorneys’ fees, shall be paid by the
      non-prevailing party.

     

    9.7  Section
      Headings; References.
      Section
      and subsection headings in this Agreement are inserted for convenience of
      reference only, and shall neither constitute a part of this Agreement nor affect
      its construction, interpretation, meaning or effect. All words used in this
      Agreement shall be construed to be of such number and gender as the context
      requires or permits. When used in this agreement, the words “including” and
“include” shall be deemed to be followed by the words “without
      limitation.”

     

    9.8  Waivers.
      Neither
      the failure nor delay on the part of either party to exercise any right, remedy,
      power or privilege under this Agreement shall operate as a waiver thereof,
      nor
      shall the single or partial exercise of any right, remedy, power or privilege
      preclude any other or further exercise of the same or any other right, remedy,
      power or privilege, nor shall any waiver of any right, remedy, power or
      privilege with respect to any occurrence be construed as a waiver of such right,
      remedy, power or privilege with respect to any other occurrence. No waiver
      shall
      be effective unless it is in writing and is signed by the party asserted to
      have
      granted such waiver.

     

    9.9  Controlling
      Law; Jurisdiction.
      This
      Agreement shall be governed by the laws of the State of Delaware, without giving
      effect to principles of conflicts of laws. The parties hereto consent to the
      exclusive jurisdiction of the state and federal courts located in the State
      of
      Delaware with respect to all claims and disputes between or among the parties
      hereto with respect to the subject matter hereof. THE
      PARTIES HEREBY EXPRESSLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
      PROCEEDING BROUGHT BY OR AGAINST EITHER OF THEM RELATING TO THIS
      AGREEMENT.

     

    9.10  Delivery
      by Facsimile.
      This
      Agreement and any amendments hereto, to the extent signed and delivered by
      means
      of a facsimile machine, shall be treated in all manner and respects as an
      original agreement or instrument and shall be considered to have the same
      binding legal effect as if it were the original signed version thereof delivered
      in person. At the reasonable request of any party hereto or to any such
      agreement or instrument, each other party hereto or thereto shall reexecute
      original forms thereof and deliver them to all other parties. No party hereto
      or
      to any such agreement or instrument shall raise the use of a facsimile machine
      to deliver a signature or the fact that any signature or agreement or instrument
      was transmitted or communicated through the use of a facsimile machine as a
      defense to the formation or enforceability of a contract and each such party
      forever waives any such defense.

     

    9.11  Interpretation
      of Agreement.
      The
      parties hereto acknowledge and agree that this Agreement has been negotiated
      at
      arm’s length and among parties equally sophisticated and knowledgeable in the
      matters dealt with in this Agreement. Accordingly, any rule of law or legal
      decision that would require interpretation of any ambiguities in this Agreement
      against the party that has drafted it is not applicable and is waived. The
      provisions of this Agreement shall be interpreted in a reasonable manner to
      effect the intent of the parties as set forth in this Agreement.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    9.12  Survival.
      Except
      as otherwise expressly provided herein, the rights and obligations of the
      parties to this Agreement shall survive the termination of Executive’s
      employment with the Company.

     

    9.13  Effectiveness.
      Notwithstanding anything herein to the contrary, the parties hereto hereby
      acknowledge and agree that (a) this Agreement is being executed in connection
      with the transactions contemplated by the Merger Agreement and shall not be
      effective until the Effective Date and (b) neither party shall have any
rights,
      interests, remedies, or obligations hereunder until the Effective
      Date. 

                                                                                                                            *
      * * *

     

    

    

    
      
        
          

           

           

        

         

      

      
        13

        
          

        

      

      
         

        
          

        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Employment Agreement
      as
      of the date above written.

    

     

                                     
      CONCORDE CAREER COLLEGES, INC.

     

     

                                                                                                                     
      By:                                                                     
 

                                                                                                                     
      Name: 

                                                                                                                     
      Title: 

     

    

     

                                                                                                     
      EXECUTIVE

     

    

                                                                                                                                                                                                   

                                                                                                                     
      JACK L. BROZMANEX-10.4 Employee Agreement Paul R. Gardner

    

     

    

     

    

     

    

     

    EMPLOYMENT
      AGREEMENT

     

    

     

    by
      and among

     

    

     

    CONCORDE
      CAREER COLLEGES, INC.

     

    and

     

    PAUL
      R.
      GARDNER

     

    

     

    

     

    dated
      as
      of June 21, 2006

    

     

    

     

    
      
        
          

          057223.00125/21499388v.3

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
           

        

      

    

    TABLE
      OF CONTENTS

     

    
    

    Page

     

    
      	
              1.
                Employment and Duties

            	
              ........................................................1

            
	
              2.
                Term

            	
              ........................................................1

            
	
              3.
                Compensation and Benefits.

            	
              ........................................................2

            
	
              3.1
                Salary

            	
              ........................................................2

            
	
              3.2
                Annual Bonus

            	
              ........................................................2

            
	
              3.3
                Benefits

            	
              ........................................................2

            
	
              3.4
                Vacation

            	
              ........................................................3

            
	
              3.5
                Expenses

            	
              ........................................................3

            
	
              4.
                Termination.

            	
              ........................................................3

            
	
              4.1
                Notice of Termination

            	
              ........................................................3

            
	
              4.2
                Grounds for Termination.

            	
              ........................................................3

            
	
              4.3
                Amounts Payable Upon Termination Without Cause

            	
              ........................................................5

            
	
              4.4
                Procedure Upon Termination

            	
              ........................................................6

            
	
              4.5
                Severance Pay Statutes; Set-Off

            	
              ........................................................6

            
	
              4.6
                Certain Rights

            	
              ........................................................6

            
	
              5.
                Covenants.

            	
              ........................................................6

            
	
              5.1
                Proprietary Information

            	
              ........................................................6

            
	
              5.2
                Nondisclosure

            	
              ........................................................7

            
	
              5.3
                Nonsolicitation; Noncompetition and Nondisparagement

            	
              ........................................................7

            
	
              5.4
                Third Party Information

            	
              ........................................................9

            
	
              5.5
                No Improper Use of Information of Prior Employers and
                Others

            	
              ........................................................9

            
	
              5.6
                Equitable Relief

            	
              ........................................................9

            
	
              5.7
                Consideration

            	
              ......................................................10

            
	
              5.8
                Scope

            	
              ......................................................10

            
	
              6.
                Work Product.

            	
              ......................................................10

            
	
              6.1
                Ownership

            	
              ......................................................10

            
	
              6.2
                Works for Hire

            	
              ......................................................10

            
	
              6.3
                Obligation to Keep Company Informed

            	
              ......................................................11

            
	
              6.4
                Enforcement of Proprietary Rights

            	
              ......................................................11

            
	
              7.
                Prior Agreements

            	
              ......................................................11

            
	
              8.
                Disclosure to Future Employer

            	
              ......................................................11

            
	
              9.
                Miscellaneous.

            	
              ......................................................11

            
	
              9.1
                Successors and Assigns

            	
              ......................................................12

            
	
              9.2
                Notices

            	
              ......................................................12

            
	
              9.3
                Entire Understanding; Modification

            	
              ......................................................12

            
	
              9.4
                Severability

            	
              ......................................................12

            
	
              9.5
                Counterparts

            	
              ......................................................12

            
	
              9.6
                Enforcement

            	
              ......................................................12

            
	
              9.7
                Section Headings; References

            	
              ......................................................12

            
	
              9.8
                Waivers

            	
              ......................................................12

            
	
              9.9
                Controlling Law; Jurisdiction

            	
              ......................................................13

            
	
              9.10
                Delivery by Facsimile

            	
              ......................................................13

            
	
              9.11
                Interpretation of Agreement

            	
              ......................................................13

            
	
              9.12
                Survival

            	
              ......................................................13

            
	
              9.13
                Effectiveness

            	
              ......................................................13

            

    

    
      
         

        

        057223.00125/21499388v.3

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    INDEX
      OF DEFINED TERMS

    

    Term                                                                                                                                                                                                                                         
      Page

    

    
      	
              Agreement

               

            	
              ........................................................1

               

            
	
              Annual
                Bonus

               

            	
              ........................................................2

               

            
	
              Benefits

               

            	
              ........................................................2

               

            
	
              Board

               

            	
              ........................................................1

               

            
	
              Cause

               

            	
              ........................................................5

               

            
	
              COBRA

               

            	
              ........................................................3

               

            
	
              Company

               

            	
              ........................................................1

               

            
	
              Company’s
                Business

               

            	
              ........................................................9

               

            
	
              Concorde

               

            	
              ........................................................1

               

            
	
              Covenant
                Period

               

            	
              ........................................................9

               

            
	
              Covenants

               

            	
              ........................................................9

               

            
	
              Date
                of Termination

               

            	
              ........................................................3

               

            
	
              Executive

               

            	
              ........................................................1

               

            
	
              Initial
                Term

               

            	
              ........................................................2

               

            
	
              Inventions

               

            	
              ........................................................6

               

            
	
              Notice
                of Termination

               

            	
              ........................................................3

               

            
	
              Permanently
                Disabled

               

            	
              ........................................................4

               

            
	
              Person

               

            	
              ........................................................7

               

            
	
              Proprietary
                Information

               

            	
              ........................................................7

               

            
	
              Proprietary
                Rights

               

            	
              .......................................................10

               

            
	
              Renewal
                Term

               

            	
              ........................................................2

               

            
	
              Salary

               

            	
              ........................................................2

               

            
	
              Severance
                Pay Statutes

               

            	
              ........................................................6

               

            
	
              Term

               

            	
              ........................................................2

               

            
	
              Third
                Party Information

               

            	
              ........................................................9

               

            
	
              Work
                Product

               

            	
              .......................................................10

               

            

    

    

     

    
      
        
          

           

          057223.00125/21499388v.3

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EMPLOYMENT
      AGREEMENT

     

    

    Parties:  CONCORDE
      CAREER COLLEGES, INC.
      (the
“Company”
or
      “Concorde”
),
      a
      Delaware corporation

                                
      5800
      Foxridge Drive

                                
      Mission,
      Kansas 66202

    

                
      PAUL R. GARDNER
      (“Executive”)
      

                                
      5602
      N.
      Flint Ridge Road

                                
      Kansas City, Missouri 64151

     

    Date: June
      21,
      2006

    

    Background

    

    Concorde
      intends to employ the Executive pursuant to the terms and conditions set forth
      in this Employment Agreement (“Agreement”).
      Intending to be legally bound, in consideration of the mutual agreements
      contained herein, the receipt and sufficiency of which are hereby acknowledged,
      the parties hereto agree as follows:

    

    1.  Employment
      and Duties.
      The
      Company shall employ Executive, and Executive hereby accepts such employment,
      as
      Vice President and Chief Financial Officer of the Company during the term of
      employment set forth in Section 2.
      Executive shall have customary responsibilities for such position commensurate
      with the position of Vice President and Chief Financial Officer of an entity
      comparable to the Company, including the powers and duties set forth set forth
      in the Bylaws of the Company for such office, subject to the direction of the
      President of the Company and the Board. Executive shall report to the President
      of Concorde or such other officer as designated by the Chief Executive Officer
      and Chairman of the Board and shall assume such other responsibilities and
      duties, consistent with his position and expertise, as may from time to time
      be
      reasonably prescribed by the Board of Directors of the Company (collectively,
      the “Board”).
      Executive shall devote his full business time, energy, skill and efforts to
      the
      business and affairs of the Company. Executive acknowledges and agrees that
      he
      shall observe and comply with all of the Company’s policies as prescribed by the
      Board in writing. Nothing in this Section 1,
      however, shall prohibit Executive from (i) serving as a director or trustee
      of a
      governmental, charitable or educational organization; provided
      that
      such activities are not inconsistent with Executive’s duties under this
      Agreement and do not violate the terms of Section 5
      hereof;
      and provided
      further
      that
      Executive has received written approval of the Board which shall not be
      unreasonably withheld or delayed; or (ii) engaging in additional activities
      in
      connection with personal investments and community affairs that are not
      inconsistent with Executive’s duties under this Agreement and do not violate the
      terms of Section 5
      hereof. 

     

    2.  Term.
      The
      term of employment under this Agreement shall be a period commencing on the
      date
      of the Closing (as defined in the Agreement and Plan of Merger dated as of
      June
      21, 2006 (the “Merger
      Agreement”)
      by and
      among Liberty
      Partners Holdings 28 LLC (“Buyer”),
      Teach
      Acquisition Corporation, and the Company) (the “Effective
      Date”)
      and
      ending on the third anniversary of such date, unless terminated earlier in
      accordance with the other provisions hereof (the “Initial
      Term”).
      The
      Agreement shall automatically renew for successive one (1) year periods (each
      a
“Renewal
      Term”),
      unless either party gives written notice to the other of its election not to
      renew at least ninety (90) days prior to the end of the then-current term or
      this Agreement is otherwise terminated earlier in accordance with the provisions
      hereof. The Initial Term and Renewal Term(s) are collectively referred to herein
      as the “Term.”

     

    
      
        
        

      

      
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    3.  Compensation
      and Benefits.

     

    3.1  Salary.
      As long
      as Executive remains an employee of the Company, the Company shall pay to
      Executive as compensation for services rendered hereunder a base salary of
      not
      less than One Hundred Fifty Five Thousand Dollars ($155,000) per year (the
      “Salary”),
      payable in accordance with the Company’s normal payroll practices for the
      Company’s senior executive officers. During the Term, the Board shall review the
      Salary at such time as the salaries of senior executive officers of the Company
      are reviewed generally, and in any event at least annually on Executive’s
      current annual review date. The Company shall deduct or cause to be deducted
      from the Salary all taxes and amounts required by law to be withheld, as well
      as
      any amounts due from Executive with respect to executive benefit plans in which
      Executive participates. 

     

    3.2  Annual
      Bonus.
      Each
      year during the Term, as additional compensation for services rendered
      hereunder, Executive shall be eligible to receive a bonus equivalent to
      thirty percent (30%) of his Salary, as determined by the Board in its sole
      and
      reasonable discretion consistent with the terms of the Company’s management
      compensation plan then in effect (the “Annual
      Bonus”).
      The
      Annual Bonus shall be paid to Executive within fifteen (15) days of the receipt
      of an opinion from the Company’s public accountants with respect to the
      Company’s fiscal year end financial statements. The Board may award the
      Executive such additional bonuses as it may approve from time
      to
      time in its sole discretion.

     

    3.3  Benefits.
      Each
      year during the Term, subject to the other provisions of this Agreement,
      Executive shall be entitled to participate and shall be included in any savings,
      deferred compensation, pension, profit sharing, stock option or other equity
      compensation plan, life insurance, disability insurance (short and long term),
      accidental death and dismemberment insurance, hospitalization, major medical,
      dental and other employee benefit plans of the Company generally available
      to
      executive officers to the extent Executive is eligible under the general
      provisions thereof (collectively, the “Benefits”),
      which
      may change from time to time in the sole discretion of the Company. Executive
      shall be entitled to participate in any stock option or equity compensation
      plan
      of Buyer. Promptly after the Effective Date, Buyer shall grant options to
      Executive for shares of common stock representing no less than one percent
      (1%)
      of the common stock of Buyer on a fully-diluted basis as of the date of the
      grant of such options (the “Options”).
      Half
      of such Options shall vest in equal installments over four (4) years beginning
      on the first anniversary of the date of grant; the remaining half shall vest
      based upon the achievement of budgeted EBITDA targets as determined by the
      Board
      in its sole discretion. Except as set forth in Sections 4.2.1, 4.2.2 and 4.3
      or
      as may otherwise be set forth in the stock option grant, all such Options, to
      the extent not vested and exercised prior to such date, shall terminate on
      the
      Date of Termination. Nothing in this Section 3.3,
      in and
      of itself, shall be construed to limit the ability of the Company or Buyer
      to
      amend or terminate any particular plan, program or arrangement. 

     

    
      
        
        

      

      
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    3.4  Vacation.
      Each
      year during the Term, Executive shall be entitled to vacation benefits in
      accordance with the vacation policies of the Company in effect for its executive
      officers from time to time, which vacation shall be taken by Executive at such
      time or times as approved by the Board; provided,
      however, that
      Executive agrees to be reasonably accessible to the Company and the Board by
      phone and/or electronic mail for the duration of any such vacation. 

     

    3.5  Expenses.
      Each
      year during the Term, the Company shall pay or reimburse Executive for all
      ordinary, necessary, documented and reasonable business-related expenses
      actually incurred by Executive in the course of the performance of his duties
      under this Agreement, including travel and out-of-pocket expenses, in accordance
      with the Company’s policies with respect to reimbursement as in effect from time
      to time. Executive shall keep an itemized account of such expenses, which shall
      be submitted to the Company monthly together with original receipts or other
      satisfactory documentation substantiating such expenses.

     

    4.  Termination.

     

    4.1  Notice
      of Termination.
      Any
      termination by the Company or by Executive, other than due to Executive’s death,
      shall be communicated by written Notice of Termination to the other party.
      As
      used in this Agreement, (a) “Notice
      of Termination”
means
      a
      written notice specifying the termination provision in this Agreement relied
      upon and (b) “Date
      of Termination”
means
      (a) the date of death or (b) the earlier of (i) the date specified in the Notice
      of Termination or (ii) the last day Executive is employed by the Company, as
      the
      case may be.

     

    4.2  Grounds
      for Termination.

     

    4.2.1  Termination
      upon Death.
      Executive’s employment with the Company and all of his rights to Salary, Annual
      Bonus and Benefits hereunder shall automatically terminate upon his death,
      except that (a) his heirs, personal representatives or estate (as the case
      may
      be) shall be entitled to (i) reimbursement of documented, unreimbursed expenses
      incurred prior to the Date of Termination and (ii) any earned but unpaid portion
      of his Salary and Benefits through the earlier of (A) nine (9) months after
      the
      Date of Termination and (B) the end of the Term and (b) all Options which are
      vested on the Date of Termination shall be exercisable by his heirs, personal
      representatives or estate (as the case may be) until the earlier to occur of
      (i)
      the expiration of such Options and (ii) the ninetieth (90th)
      day
      after the Date of Termination. Executive’s heirs’, personal representatives’ or
      estate’s (as the case may be) election to receive payment under this Section
4.2.1
      shall be
      in lieu of all other amounts and conditioned upon such heirs’, personal
      representatives’ or estate’s execution (without revocation) of a valid release
      agreement in a form reasonably acceptable to the Company pursuant to which
      such
      heirs, personal representatives or estate release(s) the Company and its
      Affiliates from all claims that Executive or his heirs, personal representatives
      or estate may have against them.
      Executive’s dependents shall have any conversion rights available under the
      Company’s medical insurance plan and as otherwise provided by law including the
      Comprehensive Omnibus Budget Reconciliation Act (“COBRA”).
      The
      period during which Executive’s dependents shall be entitled to continuation
      coverage under COBRA shall begin on the day after the Date of Termination.
      If
      Executive’s dependents elect to continue coverage under the medical insurance
      plans after the Date of Termination, Executive’s dependents shall be responsible
      for all premiums, as permitted by law. For purposes of this Agreement, an
“Affiliate”
of
      any
      Person (as defined herein) shall mean any other person or entity that, directly
      or indirectly, is controlled by or is under common control with such person
      or
      entity.

     

    
      
        
        

      

      
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    4.2.2  Termination
      upon Disability.
      If
      Executive becomes Permanently Disabled (as defined herein), then the Company
      shall have the right to terminate Executive’s employment immediately upon Notice
      of Termination and all of Executive’s rights to Salary, Annual Bonus and
      Benefits shall simultaneously terminate, except that (a) all Options which
      are
      vested on the Date of Termination shall be exercisable until the earlier to
      occur of (i) the expiration of such Options and (ii) the ninetieth
      (90th)
      day
      after the Date of Termination and (b) Executive shall be entitled to (i)
      reimbursement of documented, unreimbursed expenses incurred prior to the Date
      of
      Termination, (ii) any earned but unpaid portion of his Salary and Benefits
      through the earlier of (A) nine (9) months after the Date of Termination and
      (B)
      the end of the Term, and (iii) benefits under any disability insurance policy
      or
      plan provided to or for the benefit of Executive; provided
      that
      any
      payment under this Section 4.2.2
      shall be
      reduced, dollar-for-dollar, by any amounts received by Executive under any
      disability insurance policy or plan provided to Executive by the Company.
      Executive and his dependents shall have any conversion rights available under
      the Company’s medical insurance plan and as otherwise provided by law including
      COBRA. The period during which Executive and his dependents shall be entitled
      to
      continuation coverage under COBRA shall begin on the day after the Date of
      Termination. If Executive or his dependents elect to continue coverage under
      the
      medical insurance plans after the Date of Termination, Executive shall be
      responsible for all premiums, as permitted by law. For purposes of this
      Agreement, “Permanently
      Disabled”
shall
      mean any permanent disability that qualifies Executive for full benefits under
      any disability insurance policy or plan provided to Executive by the Company,
      if
      any, or, if the Company does not maintain any such policy, the inability of
      the
      Executive to attend to the essential and regular functions of Vice President
      and
      Chief Financial Officer on a full time basis, with or without reasonable
      accommodations, by reason of physical or mental incapacity, sickness or
      infirmity for a period of (i) ninety (90) consecutive days or (ii) one hundred
      twenty (120) days in any twelve (12)-month period. Executive’s election to
      receive payment under this Section 4.2.2
      shall be
      in lieu of all other amounts and conditioned upon Executive’s execution (without
      revocation) of a valid release agreement in a form reasonably acceptable to
      the
      Company pursuant to which Executive releases the Company and its Affiliates
      from
      all claims that Executive may have against them. In the event of a dispute
      as to
      whether Executive is Permanently Disabled, the Company may refer Executive
      to a
      mutually acceptable licensed practicing physician, at Company’s expense, whose
      written report shall be final and binding upon the parties, and Executive agrees
      to submit to such reasonable tests and examination as such physician shall
      deem
      appropriate. If Executive fails or refuses for any reason to promptly submit
      to
      any reasonable examination requested by such physician, then Executive shall
      not
      be considered to be
      Permanently Disabled.

     

    4.2.3  Termination
      for Cause.
      At any
      time during the Term, the Company may terminate Executive’s employment hereunder
      for Cause (as defined herein), effective immediately upon Notice of Termination.
      Executive shall have the right to appeal the cause for termination directly
      with
      the Board. Upon termination of this Agreement pursuant to this Section
4.2.3,
      all of
      Executive’s rights to Salary, Annual Bonus and Benefits hereunder shall
      automatically terminate as of the Date of Termination, except that Executive
      shall be entitled to (a) reimbursement of documented, unreimbursed expenses
      incurred through the Date of Termination and (b) any earned but unpaid portion
      of his Salary and Benefits to the Date of Termination. 

     

    
      
        
        

      

      
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    For
      purposes of this Agreement, “Cause”
shall
      mean: (a) Executive’s willful misconduct, fraud, usurpation of corporation
      opportunity or gross negligence with respect to the Company or his duties
      hereunder or a material breach of any fiduciary duty owed to the Company or
      any
      of its Affiliates; (b) Executive’s failure to adhere to the Company’s policies
      or to perform duties, as validly assigned pursuant to Section 1 (other than
      any
      such failure resulting from incapacity due to physical or mental illness);
      provided
      that
      Executive shall first be given five (5) business days following notice from
      the
      Company to comply with such policies or to perform such duties; (c) a material
      breach by Executive of the agreements and covenants contained in this Agreement;
      (d) Executive’s conviction of or plea of nolo
      contendere
      with
      respect to a felony, any crime involving fraud, larceny or embezzlement or
      any
      other crime involving moral turpitude which subjects, or if generally known,
      would subject, the Company or any of its Affiliates to public ridicule or
      embarrassment; or (e) habitual intoxication or the use of illegal drugs by
      Executive. 

     

    4.2.4  Termination
      Without Cause.
      At any
      time during the Term, the Company may terminate Executive’s employment without
      Cause, effective immediately upon Notice of Termination. Except for payments
      to
      Executive as set forth in Section 4.3,
      the
      Company shall have no further obligation or liability to Executive under this
      Agreement upon a termination pursuant to this Section 4.2.4.

     

    4.2.5  Elective
      Termination.
      Executive may voluntarily terminate his employment with the Company at any
      time
      during the Term upon ninety (90) days prior written notice. Executive’s
      employment with the Company and all of his rights to Salary, Annual Bonus and
      Benefits hereunder shall automatically terminate on the ninetieth
      (90th)
      day
      after Notice of Termination is given by Executive to the Company pursuant to
      this Section 4.2.5.
      Except
      for reimbursement of documented, unreimbursed expenses incurred prior to the
      Date of Termination and the payment of any earned but unpaid portion of
      Executive’s Salary and Benefits up to the Date of Termination, the Company shall
      have no further obligation or liability to Executive under this Agreement upon
      a
      termination of employment by Executive pursuant to this Section 4.2.5.
      Notwithstanding the provisions of this Section 4.2.5,
      the
      Company may elect in its sole discretion to permit the termination of
      Executive’s employment in advance of such ninetieth (90th)
      day
      after Notice of Termination is given;
      provided
      that
      Executive’s right to Salary, Annual Bonus and Benefits hereunder shall
      automatically terminate on such earlier date of termination.

     

    4.3  Amounts
      Payable Upon Termination Without Cause.
      If
      Executive’s employment is terminated pursuant to Section 4.2.4,
      (a)
      Executive shall be entitled to receive, in lieu of all other amounts, upon
      Executive’s execution (without revocation) of a valid release agreement in a
      form acceptable to the Company pursuant to which Executive releases the Company
      and its Affiliates from all claims that Executive may have against them, (i)
      nine (9) months Salary at the rate in effect on the Date of Termination, payable
      in accordance with the Company’s normal payroll practices for the Company’s
      officers, (ii) reimbursement of documented, unreimbursed expenses incurred
      by
      Executive prior to the Date of Termination and (iii) Benefits under any employee
      benefit plans in which Executive was a participant on the Date of Termination,
      to the extent such plans allow such continued participation; provided
      that
      such
      compensation and benefits shall terminate immediately upon any material breach
      by Executive of his obligations under this Agreement;
      and (b)
      all Options which are vested on the Date of Termination shall be exercisable
      until the earlier to occur of (i) the expiration of such Options and (ii) the
      ninetieth (90th)
      day
      after the Date of Termination.

     

    
      
        
        

      

      
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    4.4  Procedure
      Upon Termination.
      On
      termination of employment regardless of the reason, Executive (or his heirs,
      representatives or estate as the case may be) shall promptly return to the
      Company all property, equipment, credit cards, keys, etc., documents (including
      copies) and other property containing or disclosing Proprietary Information
      (as
      defined in Section 5.1)
      or
      Third Party Information (as defined in Section 5.4),
      including customer lists, manuals, letters, materials, reports and records
      in
      Executive’s possession or control no matter from whom or in what manner
      acquired.

     

    4.5  Severance
      Pay Statutes; Set-Off.
      Executive expressly acknowledges and agrees that the consideration received
      by
      Executive under this Agreement fully satisfies all potential obligations of
      the
      Company for any severance pay or other amounts to which Executive may become
      entitled under any state or local law, rule or regulation regarding severance
      pay, termination of employment or related matters (collectively, “Severance
      Pay Statutes”).
      To
      the fullest extent permitted by law, Executive voluntarily and irrevocably
      waives all rights, including any rights to severance pay or other amounts,
      to
      which Executive may become entitled under any applicable Severance Pay Statutes,
      and Executive releases and forever discharges the Company from and against
      any
      obligations which he may have under any applicable Severance Pay Statutes;
      provided
      that
      the
      Company is in material compliance with this Agreement. The Company shall be
      entitled to set-off against amounts payable to Executive the amounts of any
      and
      all claims that the Company may have against Executive for which Executive
      has
      been finally adjudicated to have been liable. 

     

    4.6  Certain
      Rights.
      Nothing
      in this Section 4
      is
      intended to preclude Executive from receiving any vested or accrued
      Benefits which are to be continued or paid after the Date of Termination in
      accordance with the terms of the corresponding plans for such
      Benefits.

     

    5.  Covenants.

     

    5.1  Proprietary
      Information.
      Executive recognizes and acknowledges that by reason of his employment by and
      service with the Company he will have access to confidential and/or proprietary
      information of the Company and its Affiliates, including (a) trade secrets,
      inventions, ideas, processes, apparatus, equipment, data, programs, listings,
      patents, copyrights, trademarks, service marks, works of authorship, know-how,
      improvements, discoveries, developments, designs, sketches, drawings, models
      and
      techniques relating to the current, future and proposed products and services
      of
      the Company (collectively, “Inventions”);
      (b)
      information regarding plans for research, development, new products, product
      design, details and specifications, engineering, marketing and sales, business
      records and plans, budgets, plans for future developments, business forecasts,
      financial statements and other financial information, licenses, prices and
      costs, procurement requirements, policies or operational methods, suppliers,
      customers, potential customers and key personnel; and (c) the terms of this
      Agreement ((a), (b) and (c) collectively, “Proprietary
      Information”).
      Executive hereby assigns to the Company all rights he may have or acquire in
      such Proprietary Information and recognizes that all Proprietary Information
      shall be the sole property of the Company and its assigns.

     

    
      
        
        

      

      
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    5.2  Nondisclosure.
      Executive covenants and agrees that he shall not, for as long as he is employed
      by the Company and at all times thereafter, except with the express prior
      written consent of the Company, directly or indirectly, whether as an employee,
      associate, owner, partner, member, agent, director, officer, shareholder,
      consultant, representative or in any other capacity, for his own account or
      for
      the benefit of any Person, communicate, disclose, divulge, provide commentary
      regarding or make available to any Person any of the Company’s Proprietary
      Information;
      provided
      that the
      provisions of this Section 5.2
      shall
      not apply to information that (a) is or becomes generally available to the
      public other than as a result of disclosure by Executive, (b) was readily
      available to Executive on a non-confidential basis prior to its disclosure
      to
      Executive by the Company, (c) was in Executive’s lawful possession as evidenced
      by records kept in the ordinary course of business or by proof of actual prior
      possession; (d) becomes available to Executive on a non-confidential basis
      from
      a source other than the Company, provided
      that
      such source is not known by Executive to be bound by confidentiality agreements
      with the Company or its Affiliates (or any representatives thereof) or by legal
      or fiduciary constraints on disclosure of such information, or (e) is required
      to be disclosed pursuant to an order or other law, provided
      that
      Executive shall give the Company prompt notice thereof prior to such disclosure
      and, at the request of the Company, shall cooperate in all reasonable respects
      in maintaining the confidentiality of Proprietary Information so required to
      be
      disclosed, including obtaining a protective order or other similar order.
      Nothing in this Section 5.2
      shall
      limit in any respect Executive’s ability to disclose information as required in
      connection with Executive’s performance of this Agreement or the enforcement by
      Executive of his rights under this Agreement, subject to the proviso of clause
      (e) in the immediately preceding sentence. For purposes of this Agreement,
      “Person”
means
      a
      natural person, corporation, partnership, limited liability company, trust,
      estate, joint venture, sole proprietorship, government (and any branch or
      subdivision thereof), governmental agency, association, cooperative or other
      entity.

     

    5.3  Nonsolicitation;
      Noncompetition and Nondisparagement.
      Executive acknowledges that: (a) the Company’s Business (as defined in Section
5.3.6)
      is
      highly competitive and faces competition from numerous and a variety of Persons;
      (b) the Company’s Business requires substantial and continuous expenditures of
      time and money to develop, market and maintain; and (c) he has performed
      services requiring specialized skills. Accordingly, during the period of
      Executive’s employment with the Company and for the Covenant Period (as defined
      in Section 5.3.7),
      Executive shall not, except with the Company’s express prior written consent,
      directly or indirectly, whether as an employee, associate, owner, partner,
      member, agent, director, officer, shareholder, consultant, representative or
      in
      any other capacity, for Executive’s own account or for the benefit of any
      Person, with or without compensation:

     

    
      
        
        

      

      
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    5.3.1  Solicit,
      service, contact, divert, take away or interfere with, or aid in the
      solicitation, servicing, contacting, diverting, taking away or interfering
      with,
      any customers, distributors, vendors, suppliers, licensees, licensors, strategic
      partners, other business relations or prospects of the Company (or any of the
      Company’s Affiliates) for the purpose of (a) selling goods or performing
      services in competition with the Company’s Business, (b) inducing any such
      customer, distributor, vendor, supplier, licensee, licensor, strategic partner,
      other business relation or prospect to cancel, transfer or cease doing business
      in whole or in part with the Company (or any of the Company’s Affiliates) or (c)
      inducing any such customer, distributor, vendor, supplier, licensee, licensor,
      strategic partner, other business relation or prospect to do business with
      any
      Person in competition with the Company’s Business or in any way interfere with
      its relationship with the Company (or any of the Company’s
      Affiliates);

     

    5.3.2  Solicit,
      contact, divert, encourage or induce, or aid in the solicitation, contacting,
      diverting, encouragement or inducement of, any Person who is (or was within
      the
      previous twelve (12) months) an employee, associate, consultant, agent or
      representative of the Company (or any of the Company’s Affiliates) to leave the
      employ of the Company (or any of the Company’s Affiliates) or to work for
      Executive or any Person with whom or which Executive is connected or affiliated
      or in any way interfere with the Company’s (or any of the Company’s Affiliates’)
      relationship with such Person;

     

    5.3.3  Hire
      or
      retain any Person who is (or was within the previous twelve (12) months) an
      employee, associate, consultant, agent or representative of the Company (or
      any
      of the Company’s Affiliates);

     

    5.3.4  Establish,
      own, manage, operate, finance or control, participate in the establishment,
      ownership, management, operation, financing or control of, render consulting
      or
      other services to, guarantee the liabilities or any other obligations of, permit
      his name to be used in connection with, or be otherwise connected in any manner
      with any Person, business or proposed business engaged, or planning to be
      engaged, in the Company’s Business within one hundred (100) miles of any
      existing or proposed location of the Company (or any of the Company’s
      Affiliates) if (a) such Person, business or proposed business competes directly
      or indirectly with the Company’s Business or (b) such Person, business or
      proposed business competes with the Company’s Business with regard to any
      customers of the Company or its Affiliates that Executive called on, serviced,
      solicited, attempted to solicit, had contact with or became aware of during
      the
      Term; provided
      that
      nothing in this Section 5.3.4
      shall
      prevent Executive from owning not more than one percent (1%) of the outstanding
      securities of any Person that is engaged in a business in competition with,
      or
      similar to, the Company’s Business having a class of securities listed on any
      national securities exchange or quoted on the NASDAQ National Market or Small
      Cap Market; provided
      that
      Executive has no other connection or relationship with such Person;
      and
      provided
      further
      that
      this Section 5.3.4 shall not be applicable to Executive to the extent that
      Executive is terminated pursuant to Section 4.2.4 prior to the first anniversary
      of the Effective Date;
      or

     

    5.3.5  Take
      any
      action that is intended, or would reasonably be expected, to harm or disparage
      the Company (or any of its Affiliates) or any of their shareholders, directors,
      officers, employees or agents, to impair the Company’s (or any of its
      Affiliates’) reputation, or to lead to unwanted or unfavorable publicity to the
      Company (or its Affiliates).

     

    
      
        
        

      

      
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    5.3.6  The
      “Company’s
      Business”
shall
      mean the business of proprietary post-secondary education in allied health
      and
      such other businesses, products and services as the Company or any of its
      subsidiaries provide during the Term.

     

    5.3.7  The
      “Covenant
      Period”
means
      a
      period equal to twenty-four (24) months after the Date of Termination (for
      any
      reason whatsoever) or expiration of Executive’s employment with the Company;
provided
      that
      in
      the event of any breach by Executive of this Section 5.3,
      the
      Covenant Period shall be extended by the period of the duration of such
      breach. 

     

    5.4  Third
      Party Information.
      Executive understands that the Company has received and in the future will
      receive from third parties confidential or proprietary information
      (“Third
      Party Information”)
      subject to a duty on the Company’s part to maintain the confidentiality of such
      information and to use it only for certain limited purposes. During the Term
      and
      at all times thereafter, Executive shall hold Third Party Information in
      confidence to the same extent required of the Company and shall not communicate,
      disclose, divulge, provide commentary regarding or make available to any Person
      (other than Company personnel who need to know such information in connection
      with their work for the Company) or use, except in connection with his work
      for
      the Company, Third Party Information without the Board’s express prior written
      consent.

     

    5.5  No
      Improper Use of Information of Prior Employers and Others.
      During
      his employment with the Company, Executive shall not improperly use or
      communicate, disclose, divulge, provide commentary regarding or make available
      any confidential information or trade secrets, if any, of any former employer
      or
      any other Person to whom Executive has an obligation of confidentiality, and
      Executive shall not bring onto the premises of the Company any unpublished
      documents or any property belonging to any former employer or any other Person
      to whom Executive has an obligation of confidentiality unless consented to
      in
      writing by that former employer or Person. 

     

    5.6  Equitable
      Relief.
      Executive acknowledges that any breach by his of any of the covenants and
      agreements set forth in this Section 5
      (collectively, the “Covenants”)
      will
      result in irreparable injury to the Company for which monetary damages could
      not
      adequately compensate the Company. Therefore, in the event that Executive
      breaches or threatens to commit a breach of any of the Covenants, the Company
      shall have the following rights and remedies, each of which rights and remedies
      shall be independent of the other and severally enforceable, and all of which
      rights and remedies shall be in addition to, and not in lieu of, any other
      rights and remedies available to the Company under law or in
      equity:

     

    5.6.1  The
      right
      and remedy to have the Covenants specifically enforced by any court having
      equity jurisdiction, including the right to any entry against Executive for
      restraining orders and injunctions (preliminary, mandatory, temporary and
      permanent) against violations, threatened or actual, and whether or not then
      continuing, of such covenants, it being acknowledged and agreed that any such
      breach or threatened breach will cause irreparable injury to the Company and
      that money damages alone will not provide adequate remedy to the Company;
      and

     

    
      
        
        

      

      
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    5.6.2  The
      right
      and remedy to require Executive to account for and pay over to Company all
      compensation, profits, monies, accruals, increments or other benefits derived
      or
      received by Executive as a result of any transactions constituting a breach
      of
      any of the Covenants. 

     

    5.7  Consideration.
      Executive expressly acknowledges and agrees that (a) the Covenants (i) may
      limit
      his ability to earn a livelihood in a business similar to the Company’s
      Business, (ii) are the result of arm’s-length negotiations between the parties,
      and without Executive’s agreement to be bound by the Covenants, the Company
      would not have entered into this Agreement, (iii) are reasonable and valid
      in
      geographical scope and duration and in all other respects, (iv) do not impose
      a
      greater restraint than necessary to protect the goodwill or other business
      interests of the Company, (v) are not harmful to the general public, and (vi)
      are not unduly burdensome to Executive; and (b) the level of compensation and
      benefits provided to Executive hereunder includes good and adequate
      consideration for the Covenants. In consideration of the foregoing and in light
      of Executive’s education, skills and abilities, Executive agrees that he shall
      not assert, and it should not be considered, that any provisions of this Section
      5
      otherwise are void, voidable or unenforceable or should be voided or held
      unenforceable.

     

    5.8  Scope.
      If any
      portion of any Covenant or its application is construed to be invalid, illegal
      or unenforceable, then the other portions and their application shall not be
      affected thereby and shall be enforceable without regard thereto. If any of
      the
      Covenants is determined to be unenforceable because of its scope, duration,
      geographical area or similar factor, then the court making such determination
      shall have the power to reduce or limit such scope, duration, area or other
      factor, and such Covenant shall then be enforceable in its reduced or limited
      form.

     

    6.  Work
      Product.

     

    6.1  Ownership.
      Executive acknowledges that all Inventions (and all Proprietary Rights (as
      defined herein) with respect thereto) which relate to (a) the Company’s
      Proprietary Information or (b) the Company’s or any of its Affiliates’ actual or
      anticipated business, research and development or existing or future products
      or
      services and which are conceived, developed or made by Executive while employed
      by the Company and its Affiliates (collectively, “Work
      Product”)
      belong
      to the Company or such Affiliate and hereby irrevocably and perpetually assigns,
      transfers and conveys and agrees to so assign, transfer and convey in the future
      to the Company all his right, title and interest in and to such Work Product.
      Executive acknowledges that such assignment does not violate the terms and
      conditions of any agreement to which he is a party by which he is bound. For
      purposes of this Agreement, “Proprietary
      Rights”
means
      all trade secret, patent, copyright, mask work and other intellectual property
      rights throughout the world.

     

    6.2  Works
      for Hire.
      Executive acknowledges that all Work Product or other original works of
      authorship which are made by Executive (solely or jointly with others) within
      the scope of Executive’s employment and which are protectable by copyright are
“works made for hire,” pursuant to United States Copyright Act (17 U.S.C.,
      Section 101) and, to the extent that such Work Product or other original works
      of authorship may not be deemed “works made for hire,” in accordance with
      Section 6.1
      above,
      hereby irrevocably or perpetually assigns, transfers and conveys and agrees
      to
      so assign, transfer and convey in the future to the Company all his right,
      title
      and interest in and to such Work Product or other original work of
      authorship.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    6.3  Obligation
      to Keep Company Informed.
      During
      the Covenant Period, Executive shall promptly disclose to the Company fully
      and
      in writing all Work Product authored, conceived or reduced to practice by
      Executive, either alone or jointly with others. In addition, Executive shall
      promptly disclose to the Company all patent or copyright applications filed
      by
      Executive or on Executive’s behalf during the Covenant Period.

     

    6.4  Enforcement
      of Proprietary Rights.
      Executive shall assist the Company in every reasonable way to obtain, and from
      time to time enforce, United States and foreign rights relating to Work Product
      in any and all countries. To that end Executive shall execute, verify and
      deliver such documents and perform such other acts (including appearances as
      a
      witness) as the Company may reasonably request for use in applying for,
      obtaining, perfecting, evidencing, sustaining and enforcing such rights and
      the
      assignment thereof. In addition, Executive shall execute, verify and deliver
      assignments of such rights to the Company or its designee. Executive’s
      obligation to assist the Company with respect to rights relating to such Work
      Product in any and all countries shall continue beyond the termination of his
      employment, but the Company shall compensate Executive at a reasonable rate
      after his termination for the time actually spent by Executive at the Company’s
      request on such assistance. Executive hereby waives and quitclaims to the
      Company any and all claims, of any nature whatsoever, which Executive now or
      may
      hereafter have for infringement of any Work Product assigned hereunder to the
      Company.

     

    7.  Prior
      Agreements.
      Executive represents to the Company (a) that there are no restrictions,
      agreements or understandings whatsoever to which Executive is a party which
      would prevent or make unlawful Executive’s execution of this Agreement or
      Executive’s employment hereunder, (b) that Executive’s execution of this
      Agreement and Executive’s employment hereunder shall not constitute a breach of
      any contract, agreement or understanding, oral or written to which Executive
      is
      a party or by which Executive is bound, (c) that Executive is free and able
      to
      execute this Agreement and to enter into employment with the Company and (d)
      that this Agreement is a valid and binding obligation of Executive, enforceable
      in accordance with its terms.

     

    8.  Disclosure
      to Future Employer.
      Executive agrees that he shall provide, and that the Company may similarly
      provide in its discretion, a copy of the covenants contained in Sections
5
      and
6
      of this
      Agreement to any business enterprise which could reasonably be determined to
      compete, directly or indirectly, with the Company’s Business which Executive
      may, directly or indirectly, own, manage, operate, finance, join, control or
      in
      which Executive participates in the ownership, management, operation, financing
      or control, or with which Executive may be connected as director, officer,
      shareholder, member, executive, partner, principal, employee, agent,
      representation, consultant or otherwise.

     

    9.  Miscellaneous.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    9.1  Successors
      and Assigns.
      The
      rights and protections of the Company hereunder shall extend to any successors
      or assigns of the Company and to the Company’s Affiliates. This Agreement may be
      assigned by the Company without Executive’s consent. This Agreement is not
      assignable by Executive.

     

    9.2  Notices.
      All
      notices, requests, demands, consents or other communications required or
      permitted to be given under this Agreement shall be in writing and shall be
      deemed to have been duly given (a) upon delivery if delivered personally, (b)
      three (3) business days after mailing by first class certified mail, return
      receipt requested, postage prepaid; or (c) one (1) day after delivery to a
      nationally recognized overnight courier service, postage or delivery charges
      prepaid, to the parties at their respective addresses set forth on the first
      page of this Agreement.

     

    9.3  Entire
      Understanding; Modification.
      This
      Agreement sets forth the entire understanding between the parties with respect
      to the subject matter hereof and supersedes all prior and contemporaneous
      written, oral, expressed or implied, communications, agreements and
      understandings with respect to the subject matter hereof,
      provided
      that
      Executive acknowledges and agrees that he is subject to other employment
      policies which may be established, modified or deleted by the Company not in
      conflict with the express terms of this Agreement. This Agreement shall not
      be
      amended, modified, supplemented or terminated except in writing signed by both
      parties. No action taken by the Company hereunder, including any waiver, consent
      or approval, shall be effective unless authorized by the Board.

     

    9.4  Severability.
      If any
      provision of this Agreement is construed to be invalid, illegal or
      unenforceable, then the remaining provisions hereof shall not be affected
      thereby and shall be enforceable without regard thereto.

     

    9.5  Counterparts.
      This
      Agreement may be fully executed in any number of counterparts, each of which
      when so executed and delivered shall be an original hereof, and it shall not
      be
      necessary in making proof of this Agreement to produce or account for more
      than
      one (1) counterpart hereof.

     

    9.6  Enforcement.
      In the
      event that any action is brought to enforce any of the provisions of this
      Agreement, or to obtain money damages for the breach thereof, and such action
      results in the award of a judgment for money damages or the granting of any
      injunction in favor of one of the parties to this Agreement, all expenses
      thereof, including reasonable attorneys’ fees, shall be paid by the
      non-prevailing party.

     

    9.7  Section
      Headings; References.
      Section
      and subsection headings in this Agreement are inserted for convenience of
      reference only, and shall neither constitute a part of this Agreement nor affect
      its construction, interpretation, meaning or effect. All words used in this
      Agreement shall be construed to be of such number and gender as the context
      requires or permits. When used in this agreement, the words “including” and
“include” shall be deemed to be followed by the words “without
      limitation.”

     

    9.8  Waivers.
      Neither
      the failure nor delay on the part of either party to exercise any right, remedy,
      power or privilege under this Agreement shall operate as a waiver thereof,
      nor
      shall the single or partial exercise of any right, remedy, power or privilege
      preclude any other or further exercise of the same or any other right, remedy,
      power or privilege, nor shall any waiver of any right, remedy, power or
      privilege with respect to any occurrence be construed as a waiver of such right,
      remedy, power or privilege with respect to any other occurrence. No waiver
      shall
      be effective unless it is in writing and is signed by the party asserted to
      have
      granted such waiver.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    9.9  Controlling
      Law; Jurisdiction.
      This
      Agreement shall be governed by the laws of the State of Delaware, without giving
      effect to principles of conflicts of laws. The parties hereto consent to the
      exclusive jurisdiction of the state and federal courts located in the State
      of
      Delaware with respect to all claims and disputes between or among the parties
      hereto with respect to the subject matter hereof. THE
      PARTIES HEREBY EXPRESSLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
      PROCEEDING BROUGHT BY OR AGAINST EITHER OF THEM RELATING TO THIS
      AGREEMENT.

     

    9.10  Delivery
      by Facsimile.
      This
      Agreement and any amendments hereto, to the extent signed and delivered by
      means
      of a facsimile machine, shall be treated in all manner and respects as an
      original agreement or instrument and shall be considered to have the same
      binding legal effect as if it were the original signed version thereof delivered
      in person. At the reasonable request of any party hereto or to any such
      agreement or instrument, each other party hereto or thereto shall reexecute
      original forms thereof and deliver them to all other parties. No party hereto
      or
      to any such agreement or instrument shall raise the use of a facsimile machine
      to deliver a signature or the fact that any signature or agreement or instrument
      was transmitted or communicated through the use of a facsimile machine as a
      defense to the formation or enforceability of a contract and each such party
      forever waives any such defense.

     

    9.11  Interpretation
      of Agreement.
      The
      parties hereto acknowledge and agree that this Agreement has been negotiated
      at
      arm’s length and among parties equally sophisticated and knowledgeable in the
      matters dealt with in this Agreement. Accordingly, any rule of law or legal
      decision that would require interpretation of any ambiguities in this Agreement
      against the party that has drafted it is not applicable and is waived. The
      provisions of this Agreement shall be interpreted in a reasonable manner to
      effect the intent of the parties as set forth in this Agreement.

     

    9.12  Survival.
      Except
      as otherwise expressly provided herein, the rights and obligations of the
      parties to this Agreement shall survive the termination of Executive’s
      employment with the Company.

     

    9.13  Effectiveness.
      Notwithstanding anything herein to the contrary, the parties hereto hereby
      acknowledge and agree that (a) this Agreement is being executed in connection
      with the transactions contemplated by the Merger Agreement and shall not be
      effective until the Effective Date and (b) neither party shall have any
rights,
      interests, remedies, or obligations hereunder until the Effective
      Date. 

    *
      * *
      *

     

    

    

    
      
        
          

           

           

        

        
        

      

      
        13

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Employment Agreement
      as
      of the date above written.

    

     

    CONCORDE
      CAREER COLLEGES, INC.

    

    

                                                                                            
      By:                                                                      

                                                                                            
      Name: 

                                                                                            
      Title: 

     

    

     

                                                                            
      EXECUTIVE

     

    

                                                                                                                                                                          

                                                                            
      PAUL R. GARDNER

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