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Exhibit
10.13
FORM OF SERVICES
AGREEMENT
THIS SERVICES
AGREEMENT (this “ Agreement ”) is made as of
,
, by and between Career Education Corporation, a Delaware
corporation (“ CEC ”) and
, a wholly-owned subsidiary of CEC (“ CEC
Subsidiary” ).
RECITALS:
A. CEC is a management
holding corporation which through its subsidiaries, including but
not limited to CEC Subsidiary, operates several postsecondary
proprietary schools, including but not limited to the School listed
on Schedule A attached hereto (the “ School
”);
B. CEC Subsidiary and the
School desire CEC to provide, or cause to be provided, certain
Services (as defined below) to CEC Subsidiary and/or the School;
and
C. CEC is prepared to provide
such Services to CEC Subsidiary and/or the School.
NOW, THEREFORE , in
consideration of the foregoing recitals, and of the mutual
covenants and agreements set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as
follows:
CEC shall provide, or cause
to be provided, specific management and administrative services to
CEC Subsidiary and/or the School as may be requested by CEC
Subsidiary and/or the School from time to time, which may include
those Services set forth on Schedule B attached hereto
(hereinafter referred to as “ Services
”).
The fees due CEC from CEC
Subsidiary and/or the School for its performances of the Services
shall be established, from time to time, by the mutual agreement of
the parties. All fees are subject to review and revision on a
periodic basis. The fees are to be charged monthly, unless
otherwise agreed to by the parties hereto.
The initial term of this
Agreement shall be for a period of one year (the “ Initial
Term ”). Thereafter, the term shall automatically renew
for successive one year periods (collectively with the Initial
Term, the “ Term ”). This Agreement may be
terminated by either party upon the giving of thirty (30) days
prior written notice to the other party. In the case of termination
of this Agreement by either party, CEC Subsidiary and/or the School
will be liable for all charges for Services provided by CEC to CEC
Subsidiary and/or the School through the effective date of
termination, including a prorated portion of any monthly fee due
hereunder.
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STANDARD OF CARE; WAIVER OF CLAIMS;
INDEMNITY |
In performing the services
under this agreement, CEC at all times shall act in good faith and
in a manner which it believes to be in or not opposed to the best
interests of CEC Subsidiary and the School.
Notwithstanding anything to
the contrary contained in this agreement or provided by law, to the
maximum extent permitted by law, CEC Subsidiary and the School
hereby unconditionally and irrevocably waive all claims and causes
of action against CEC (and its shareholders, officers, directors
and employees), of every kind and character, including claims and
causes of action for loss of or injury to business and property,
caused by or deriving from any act or omission of CEC (or its
shareholders, officers, directors and employees) under this
Agreement, including acts and omissions constituting negligence or
gross negligence, except for such acts or omissions of CEC made or
omitted in bad faith.
Each party agrees to protect,
defend, hold harmless and indemnify (as such, the “
Indemnifying Party ”) each other party, its
successors, assigns, directors, officers, employees and any members
of the governing board of the School and their respective
representatives (each, an “ Indemnified Party ”)
from and against any and all claims, demands, actions, liabilities,
damages, losses, fines, penalties, costs and expenses including
reasonable attorneys’ fees (collectively the “
Claims ”), of any kind whatsoever including, without
limitation of the foregoing, those relating to actual or alleged
death of or injury to persons and damage to property, actually or
allegedly, directly or indirectly, arising or resulting from or
connected with: (a) any Claims against an Indemnified Party
arising out of services or procedures provided by or through the
Indemnifying Party pursuant to this Agreement; (b) the
omission or commission of any act, lawful or unlawful, by the
Indemnifying Party or its agents or employees, whether or not such
act is within the scope of the agency or employment of such agents
or employees; (c) the failure of the Indemnifying Party to
comply with any applicable law, ordinance, rule or regulation, and;
(d) inquiries and/or investigations by any federal, state or
local governmental organization.
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NO THIRD PARTY BENEFITS |
This Agreement has been
entered into for the sole benefit of CEC Subsidiary and CEC and in
no event shall any third-party beneficiaries be created thereby
except as otherwise required pursuant to Title IV.
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INDEPENDENT CONTRACTOR |
CEC is and will remain at all
times an independent contractor of CEC Subsidiary and/or the School
in the performance of all Services. CEC shall hire, discharge and
supervise all persons it deems necessary to carry out CEC’s
duties under this Agreement. Such persons shall be deemed to be
employees of CEC or of their respective companies, as applicable,
and not of CEC Subsidiary or the School. Such party shall be solely
liable for payment of such employees’ wages and benefits, as
applicable, and for compliance with all applicable federal, state
and local laws, rules and regulations relating to labor relations,
terms, conditions and hours of employment, including civil rights
laws, state unemployment compensation laws, worker compensation
laws, and withholding of income tax laws.
The parties agree that all
information provided pursuant to this Agreement by each party
(“ Disclosing Party ”) to the other party
(“ Receiving Party ”) is confidential and
proprietary (“ Confidential Information ”) and
Receiving Party shall not use any Confidential Information for any
purpose other than as permitted or required for performance under
this Agreement. Except as otherwise provided herein, Receiving
Party agrees not to disclose or furnish any Confidential
Information to any third party without the prior express written
consent of the Disclosing Party and to take all reasonable
measures, including, without limitation, measures taken by
Receiving Party to safeguard its own Confidential Information, to
prevent any such disclosure by its employees, or agents. Nothing
provided herein shall
2
prevent Receiving Party from disclosing
information which (i) becomes public through no breach hereof;
(ii) is received from a third party without restriction;
(iii) is independently developed by it without any of the
information obtained in connection with this Agreement;
(iv) is disclosed pursuant to a requirement of law; or
(v) is already known to it. Notwithstanding the foregoing, CEC
may disclose any information that it, in its sole discretion, deems
necessary or appropriate for purposes of complying with its public
disclosure obligations or that relates to communications with
investors, accreditors or regulatory agencies.
Any notice required under
this Agreement shall be in writing and shall be deemed to have been
duly served if mailed, postage prepaid, by certified or registered
mail, return receipt required, to the party at the following
addresses:
If to CEC:
Career Education
Corporation
2895 Gree
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