SEC Contract Filing

Filing Date: 2015-07-31

Document Content:
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<TYPE>EX-10.3
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<FILENAME>d30330dex103.htm
<DESCRIPTION>EX-10.3
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<TITLE>EX-10.3</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.3 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><I>2015 Cash-Settled RSU Agreement (Non-Plan) </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CAREER EDUCATION CORPORATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CASH-SETTLED RESTRICTED STOCK UNIT AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This <B>CASH-SETTLED RESTRICTED STOCK UNIT AGREEMENT</B> (this &#147;<U>Agreement</U>&#148;) dated <B>[INSERT DATE HERE]</B> (the
&#147;<U>Grant Date</U>&#148;) is by and between Career Education Corporation, a Delaware corporation (the &#147;<U>Company</U>&#148;), and Todd Nelson (the &#147;<U>Grantee</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company hereby grants such award to the Grantee. Notwithstanding that the award is not, and shall not be deemed to be, granted under the
Company&#146;s 2008 Incentive Compensation Plan, as amended (the &#147;<U>Plan</U>&#148;), except for the grant limitations set forth in the Plan, this award shall be subject to all of the terms of the Plan as if it had been granted thereunder,
provided, however, that the terms of this Agreement shall control with respect to such matters expressly addressed herein, and all capitalized terms not otherwise defined in this Agreement shall have the meaning set forth in Plan. To evidence such
award and to set forth its terms, the Company and the Grantee agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1. <U>Grant of Restricted Stock Units</U>. Subject to and upon the terms
and conditions set forth in this Agreement and the Plan, the Committee granted to the Grantee <B>[INSERT NUMBER OF RSUs]</B> Restricted Stock Units (the &#147;<U>RSUs</U>&#148;) on the Grant Date, and the Grantee hereby accepts the grant of the RSUs
as set forth herein. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">2. <U>Limitations on Transferability</U>. Except in the event of the death of the Grantee, at any time prior to the Settlement Date,
the RSUs, or any interest therein, cannot be directly or indirectly transferred, sold, assigned, pledged, hypothecated, encumbered or otherwise disposed. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">3. <U>Dates of Vesting</U>. Subject to the provisions of Sections 5 and 6 of this Agreement, the RSUs shall cease to be restricted and shall become
non-forfeitable (thereafter being referred to as &#147;<U>Vested RSUs</U>&#148;) in two equal installments on each of September&nbsp;14, 2016 and September&nbsp;14, 2017 (each, a &#147;<U>Vesting Date</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, and subject to Sections 5 and 6 below, in the event that the Grantee incurs a Termination of Service prior to
any Vesting Date, any RSUs that were unvested at the date of such Termination of Service shall be immediately forfeited to the Company.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">4. <U>Crediting
and Settling RSUs. </U> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <U>RSU Accounts</U>. The Company shall establish an account on its books for each grantee who
receives a grant of RSUs (the &#147;<U>RSU Account</U>&#148;). The RSUs granted hereby shall be credited to the RSU Account as of the Grant Date. The RSU Account shall be maintained for record keeping purposes only and the Company shall not be
obligated to segregate or set aside assets representing amounts credited to the RSU Account. The obligation to make distributions of amounts credited to the RSU Account shall be an unfunded, unsecured obligation of the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) <U>Settlement of RSU Accounts</U>. The Company shall settle the RSU Account by delivering to the holder thereof (who may be the Grantee or
his Beneficiary, as applicable) an amount in cash equal to the product of (i)&nbsp;the number of Vested RSUs in the RSU Account as of the applicable Settlement Date, <I>multiplied by</I> (ii)&nbsp;the Fair Market Value of a Share on the applicable
Vesting Date (subject to applicable tax withholding obligations set forth in </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><I>
2015 Cash-Settled RSU Agreement (Non-Plan) </I></P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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Section&nbsp;24 of this Agreement or otherwise required by any taxing authority). The Settlement Date for all RSUs credited to the RSU Account shall be as soon as administratively practical
following each Vesting Date (or the relevant vesting date set forth in Section&nbsp;5(a) hereof), but in no event shall such Settlement Date be later than March&nbsp;15 of the calendar year following the calendar year in which a Vesting Date (or the
relevant vesting date set forth in Sect