SEC Contract Filing

Filing Date: 2017-05-03

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>5
<FILENAME>ceco-ex105_151.htm
<DESCRIPTION>EX-10.5
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ceco-ex105_151.htm
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:right;margin-bottom:12pt;margin-top:0pt;font-weight:normal;text-transform:none;font-size:12pt;font-family:Times New Roman;font-style:normal;font-variant: normal;text-indent:7.69%;"><font style="text-decoration:underline;">EXHIBIT 10.5</font></p>
<p style="text-align:center;margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;text-transform:uppercase;font-size:12pt;font-family:Times New Roman;font-style:normal;font-variant: normal;"><font style="text-decoration:underline;">SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This Settlement Agreement and Release of All Claims (&#8220;Agreement&#8221;) is entered into as of this _<font style="text-decoration:underline;">15th</font>_ day of February, 2017, by and between Career Education Corporation and American InterContinental University, Inc. (collectively &#8220;Defendants&#8221;), on the one hand, and Melissa Simms Powell, Angela Hitchens, Joseph P. Plumley, Jr. and Glenn W. Dobson (&#8220;Relators&#8221;) on the other hand (Defendants and Relators shall be collectively referred to herein as the &#8220;Parties&#8221; and separately as a &#8220;Party&#8221;), with reference to the following facts:</p>
<p style="text-align:center;margin-bottom:12pt;margin-top:0pt;text-indent:0%;text-transform:uppercase;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;font-variant: normal;"><font style="text-decoration:underline;">Recitals</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, on July 14, 2008, Relators filed a complaint (the &#8220;Complaint&#8221;) in the United States District Court for the Northern District of Georgia, Atlanta Division, captioned <font style="font-style:italic;">United States of America, ex rel. Melissa Simms Powell, Angela Hitchens, Joseph P. Plumley, Jr. ED.D., and Glenn W. Dobson v. American InterContinental University, Inc., Career Education Corporation, and John Doe Nos. 1-100</font> (N.D. Ga. 1:08-CV-2277), pursuant to the <font style="font-style:italic;">qui tam</font> provisions of the False Claims Act, 31 U.S.C. &#167; 3730(b) (the &#8220;Civil Action&#8221;);</p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-weight:normal;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">WHEREAS, Counts One through Three of the Complaint allege that Defendants violated the False Claims Act or other provisions of the common law and seek recovery of damages and Relators&#8217; reasonable attorney&#8217;s fees and costs under 31 U.S.C. &#167; 3730(d)(2);</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-weight:normal;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">WHEREAS, Defendants filed an Answer to the Complaint on December 6, 2010 in which Defendants denied any liability relating to the claims in the Complaint;</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;color:#000000;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">WHEREAS, Defendants by entering into this Agreement are not admitting to any violations of law or any liability with respect to the matters contained in the Civil Action and, in connection therewith, maintain they acted at all times in compliance with all laws and regulations;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-weight:normal;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">WHEREAS, the Parties have entered into a settlement agreement (&#8220;FCA Settlement Agreement&#8221;)</font><font style="text-decoration:none;font-weight:bold;"> </font><font style="text-decoration:none;">settling and releasing any claims that Relators may have under the False Claims Act, 31 U.S.C. &#167;&#167; 3729-3733, for Ten Million Dollars ($10,000,000) payable to the United States; </font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">WHEREAS, the United States has advised the Court that it will file a Notice of Consent to Dismissal of the Civil Action;</p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:7.69%;font-weight:normal;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">WHEREAS, the FCA Settlement Agreement does not resolve Relators&#8217; separate claim against Defendants for reasonable expenses necessarily incurred plus reasonable attorney&#8217;s fees and costs under 31 U.S.C. &#167; 3730(d)(2);</font></p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent: