SEC Contract Filing

Filing Date: 2015-07-31

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>d30330dex105.htm
<DESCRIPTION>EX-10.5
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<TITLE>EX-10.5</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 10.5 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><I>Employee Stock Option Agreement </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>2008 INCENTIVE COMPENSATION PLAN </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NON-QUALIFIED STOCK OPTION AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This <B>STOCK OPTION 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">In accordance with Section&nbsp;6 of the Career Education Corporation 2008 Incentive Compensation Plan, as amended (the
&#147;<U>Plan</U>&#148;), and subject to the terms of the Plan and this Agreement, the Company hereby grants to the Grantee an option to purchase shares of common stock, par value $0.01 per share, of the Company (&#147;<U>Shares</U>&#148;) on the
terms and conditions as set forth below (&#147;<U>Option</U>&#148;). The Option granted hereby is not intended to constitute an Incentive Stock Option within the meaning of Section&nbsp;422 of the Internal Revenue Code of 1986, as amended (the
&#147;<U>Code</U>&#148;). All capitalized terms used but otherwise not defined herein shall have the meanings set forth in the Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">To
evidence the Option and to set forth its terms, the Company and the Grantee agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">1. <U>Grant</U>. The Committee hereby
grants the Option to the Grantee on the Grant Date for the purchase from the Company of all or any part of an aggregate of <B>[INSERT NUMBER OF SHARES]</B> Shares (subject to adjustment as provided in Section&nbsp;4.2 of the Plan). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">2. <U>Option Price</U>. The purchase price per Share purchasable under the Option shall be $<B>[INSERT OPTION PRICE]</B> per Share (the
&#147;<U>Option Price</U>&#148;) (subject to adjustment as provided in Section&nbsp;4.2 of the Plan). The Option Price is equal to 100% of the Fair Market Value of one share of Common Stock on the Grant Date, as calculated under the Plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">3. <U>Term and Vesting of the Option; Termination of Service</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) The Option Term shall expire on the tenth anniversary of the Grant Date. The Option shall vest and become exercisable in four equal
installments on each of September&nbsp;14, 2016, 2017, 2018 and 2019 (each a &#147;<U>Vesting Date</U>&#148;); provided, however, that the Option shall only vest and become exercisable with respect to a whole number of Shares on each Vesting Date
and the Company shall accordingly allocate such vesting across the Vesting Dates as evenly as possible. Except as otherwise provided herein, the Option may be exercised on or following the applicable Vesting Dates with respect to the vested portion,
as long as such exercise occurs prior to the expiration of the Option as provided in this Agreement and the Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) If the Grantee
incurs a Termination of Service either (i)&nbsp;by the Company without Cause, or (ii)&nbsp;by the Grantee for Good Reason (as defined in the that certain Letter Agreement between the Grantee and the Company dated as of July&nbsp;30, 2015), then any
portion of the Option that had not become vested prior to the date of the Termination of Service shall become vested as of the date of such Termination of Service, and shall remain outstanding and exercisable until the earlier of (A)&nbsp;the third
anniversary of the applicable Termination of Service, and (B)&nbsp;the tenth anniversary of the Grant Date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c) If the Grantee incurs a
Termination of Service because of his death or Disability, then any portion of the Option that had not become vested prior to the date of the Termination of Service shall become vested as of the date of such Termination of Service, and shall remain
outstanding and exercisable until the earlier of (i)&nbsp;the first anniversary of the applicable Termination of Service, and (ii)&nbsp;the tenth anniversary of the Grant Date. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><I>Employee Stock Option Agreement </I></P>
<p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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