Exhibit 10.16
CAREER EDUCATION
CORPORATION
SEVERANCE PLAN FOR EXECUTIVE
LEVEL EMPLOYEES
PLAN DOCUMENT AND SUMMARY PLAN
DESCRIPTION
[TIER THREE PLAN
DOCUMENT]
(Effective as of February 1,
2008)
FIRST AMENDMENT
Career Education Corporation has
implemented the Severance Plan for Executive Level Employees (the
“Plan”) and now wishes to amend the Plan for compliance
with Section 409A of the Internal Revenue Code. This First
Amendment is effective as of January 1, 2009.
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1.
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Section
I.F is amended to read as follows:
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“F.
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Offer
of Another Position .
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If an Employee is terminated after
having refused another position with the Company or a related
entity (or, in the event of any type of corporate transaction, with
a purchaser or other acquiring entity, or a related entity of the
Company, purchaser, or acquiring entity), such termination shall
not be considered involuntary, and such employee shall not be
eligible to receive a benefit under the Plan; provided, however,
that the Plan Administrator, in its sole discretion, may treat such
termination as involuntary if such position, if accepted, would
have resulted in a material negative change in the employee’s
service relationship as compared with the situation in effect
immediately prior to such termination, or is at a location
sufficiently distant from the location of the employee’s
current position as would require relocation of such
employee’s residence.”
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2.
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Section
II.B.1 is amended to read as follows:
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“1.
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Severance
benefits based on weeks of Pay will be paid in a lump sum following
termination of employment, subject to Section II.E below. Payment
of severance benefits shall be made on or as soon as
administratively practicable after the date the employee signs and
returns the release required under Section I.G. above and any
revocation period with respect to such release has expired. The
Company will make reasonable efforts to pay such benefits before
March 15th of the year following the year in which an Eligible
Employee’s termination occurs, subject to the
employee’s timely execution, delivery and non-revocation of
the required release.”
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3.
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A new
Section II.E. is added to read as follows:
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This Plan is intended to provide
benefits that are exempt from the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended (the
“Code&
