Document:

Exhibit
10.1

SECOND AMENDMENT TO THE
EMPLOYMENT AGREEMENT

BY AND AMONG

JOHN M. LARSON, CAREER EDUCATION CORPORATION

AND

CEC EMPLOYEE GROUP, LLC

WHEREAS,
JOHN M. LARSON (the “Executive”), CAREER EDUCATION CORPORATION, a
Delaware corporation (the “Company”) and CEC EMPLOYEE GROUP, LLC (“Employee
Group”) (collectively, the Executive, Company and Employee Group as
referred to herein as the “Parties”) entered into that certain
Employment Agreement as of the 1st day of August, 2000, which was subsequently
amended as of September 24, 2006 (the “Agreement”); and

WHEREAS,
the Executive desires to resign from all positions of the Company and its
affiliates effective as of December 19, 2006; and

WHEREAS,
the Parties agree that such resignation constitutes a termination by Executive
for Good Reason under Section 3.3 of the Agreement; and

WHEREAS,
the Parties desire to amend the Agreement (1) to extend the exercise period of
certain of Executive’s outstanding stock options under the Career Education
Corporation 1998 Employee Incentive Compensation Plan and to accelerate the
vesting of certain of Executive’s outstanding stock options, (2) to avoid
unintended negative tax consequences under Section 409A of the Internal Revenue
Code of 1986, as amended, and any applicable guidance thereunder, and (3) to
provide for certain other provisions requested by the Executive and Company;

NOW,
THEREFORE, in consideration of the
mutual undertakings of the Parties, the Parties agree:

I.

The final clause of Section
2.4(d)(i)(A)(2) is hereby amended to read as follows:

that total amount being
payable in equal monthly installments during each of the twenty-four (24)
months following the month in which the Date of Termination occurs, provided,
however that in accordance with Section 6.18, Larson, the Company and
Employee Group (the “Parties”) agree that no amount shall be paid to
Larson hereunder until the date that is six (6) months after the Date of
Termination, on which date the first six (6) monthly payments shall be paid to
Larson in a single lump sum, with no adjustment for interest.  The total amount payable over twenty-four
(24) months under this subsection shall be paid on a date that is no later than
thirty (30) days after the Date of Termination in a single lump sum payment
amount of $4,066,800 (such amount the Parties agree satisfies the Company and
Employee Group’s obligation to Larson under this Section 2.4(d)(i)(A)(2) as of
the Date of Termination) to an escrow account at a financial institution
designated by the Company pursuant to an escrow

 

agreement that shall be
on such terms as are mutually agreed to in advance by the Parties, and
thereafter shall be paid to Larson in accordance with the preceding sentence
with any interest earned on amounts in escrow to be returned to the Company
after satisfaction of this obligation to Larson; and

II.

Section
2.4(d)(i)(A)(3) is hereby amended to add the following sentence to the end
thereof:

Notwithstanding the
foregoing, in lieu of any continued life insurance and disability coverage
following the Date of Termination, Larson shall receive a single lump sum cash
payment equal to $44,820 on the date that is six (6) months after the Date of
Termination.

III.

Section 2.4(e) of the Agreement is hereby deleted
in its entirety and replaced with a new Section 2.4(e) to read as follows:

(e)           If, following a termination of
employment that gives Larson a right to the payment of Severance Benefits under
Section 2.4(d), Larson engages in any activities that violate any of the
covenants in Sections 4 and 5, Larson shall have no further right or claim to
any Severance Benefits (other than any Accrued Obligations) to which Larson may
otherwise be entitled under Section 2.4(d) from and after the date on which
Larson engages in such activities and the Company shall have no further
obligations with respect to the payment of Severance Benefits.

IV.

A new Section 2.5 is hereby added to the Agreement
to read as follows:

2.5.         Treatment of Options.  All stock options granted to Larson under the
Career Education Corporation 1998 Employee Incentive Compensation Plan (the “Plan”)
and outstanding as of the Date of Termination are included within the list
attached hereto as Exhibit A to this Second Amendment (“Options”).  For Options with respect to which the
exercise price is more than $20, included in a list attached hereto as Exhibit
B to this Second Amendment (“Extended Options”), an extended period
in which they may be exercised is hereby provided notwithstanding anything in
the Plan or any award agreement to the contrary.  Such extended exercise period for the
Extended Options shall terminate on the earlier of (x) December 31, 2007
and (y) the end of the “Option Period” specified in the applicable Option
award agreement (i.e., the end of the Option’s
10-year term) (the period from the Date of Termination until and including the
end of the extended exercise period described in this sentence, the “Extension
Period”).  Further, all Options that
would have otherwise vested in accordance with their terms during the Extension
Period had Larson remained employed throughout the Extension Period, included
as accelerated options in a list attached hereto as Exhibit C to this
Second Amendment (“Accelerated Options”), shall, notwithstanding
anything in the Plan or any award agreement to the contrary, be fully vested
and freely exercisable on the Date of Termination.  Upon each such

 2
 

 

unexercised Extended
Option’s termination date as described in this Section, the Extended Option
will be cancelled and forfeited to the Company. 
For the avoidance of doubt, all Options that are not Extended Options
shall terminate on the date that is ninety (90) days after the Date of
Termination, which is the date on which all such Options would have terminated
absent the extension described in this Section 2.5.

V.

The last sentence of Section 3.1 of the Agreement
is hereby amended to read as follows:

“Date of Termination”
shall mean December 19, 2006.

VI.

Section
3.3 of the Agreement is hereby amended by adding the following sentence to the
end thereof:

Larson, the Company and Employee Group acknowledge and
agree that Larson’s resignation and termination on December 19, 2006 satisfies
the requirements of this Section 3.3 as a termination of his employment for
Good Reason on such date.

VII.

A new
Section 3.10 is hereby added to the Agreement to read as follows:

3.10.       Indemnification.  The Company and Employee Group hereby
covenant and agree to be bound by all of the terms in that certain
indemnification agreement executed by the Company and Larson in January, 1998,
the terms of which shall survive termination of employment and which the
Parties agree are binding and enforceable and remain in full force and effect.

VIII.

A new
Section 6.16 is hereby added to the Agreement to read as follows:

6.16.       Consultation and Cooperation.  From
the Date of Termination through and until December 31, 2007, Larson agrees to
(i) promptly assist and cooperate with Company in the transition of his
responsibilities as may be reasonably requested by Company and as mutually
agreed by the Parties; and (ii) cooperate as mutually agreed with Company in
any current or future litigation, potential litigation, proceeding, claim,
charge, investigation or other legal matters in any reasonable manner as
Company may request, including but not limited to meeting with and fully
answering the questions of Company or its attorneys, representatives or agents,
and testifying and preparing to testify at any deposition, trial, or other
proceeding. The Company shall provide Larson with reasonable advance written
notice of when and how it requires such assistance and cooperation, and will
schedule such matters consistent with Larson’s business and personal affairs at
such times and places as may be mutually agreed by the Parties.  The

 3
 

 

Company agrees to compensate Larson for any reasonable
out-of-pocket expenses incurred by Larson in providing such assistance and
cooperation, including travel expenses.

IX.

A new
Section 6.17 is hereby added to the Agreement to read as follows:

6.17.       Mutual
Non-Disparagement.

(a)           Larson agrees that he shall not, and
shall not permit his agents or representatives, to criticize, ridicule or make
any comment or statement which disparages or is derogatory of the Company or
the Employee Group or any of their affiliates or directors, officers, employees
or trustees or goods or services in any communication with the press or other
media, any customer or client of the Company, Employee Group or their
affiliates, or any employee or director or potential employee or director of
the Company, Employee Group or their affiliates; provided, however that nothing
herein shall prevent Executive from giving truthful testimony if properly
subpoenaed to testify under oath.

(b)           The Company and Employee Group agree
that its executive officers and directors shall not criticize, ridicule or make
any comment or statement which disparages or is derogatory of Larson in any
communication with the press or other media, any person with whom Larson has a
business relationship, or any other person which would adversely affect in any
manner the conduct of any business of Larson or the business or personal
reputation of Larson; provided, however that nothing herein shall prevent the
Company’s officers and directors from giving truthful testimony if properly
subpoenaed to testify under oath.

X.

A new
Section 6.18 is hereby added to the Agreement to read as follows:

6.18.       Section 409A.  The Parties acknowledge
that Section 409A of the Code (“Section 409A”) imposes an additional tax
(“409A Tax”) on deferred compensation (as defined under Section 409A)
that does not meet certain requirements, and that as of the date this Agreement
is executed (and each amendment hereto is executed), final regulations
implementing Section 409A have not been implemented.  The Parties agree that it is not intended
that the 409A Tax apply to any payment or the provision of any benefit
hereunder, and accordingly, the provisions of this Section 6.18 shall apply to
any payment or benefit to which the 409A Tax would apply, regardless of whether
such payment or benefit is explicitly made subject to this Section 6.18.  If any of the
Parties reasonably determine that any payment or benefit permitted or required
under this Agreement would result in 409A Tax, and if such 409A Tax could be
avoided by delaying the payment or postponing the provision of the benefit, the
Parties agree to work in good faith to delay or postpone such payment or
provision of the benefit until such time as it may be made or provided without
the 409A Tax being imposed.  If delay or
postponement of a payment or the provision of a benefit would not avoid the
imposition of the 409A Tax, then the Parties shall promptly agree in good faith
on appropriate provisions to avoid such risk without materially changing the
economic value of this Agreement to any Party. 
Each Party hereto agrees that (a) none of the Parties has any obligation
to bring any potential 409A Tax or any other reporting or

 4
 

 

withholding obligation to the attention of any other
Party and (b) none of the Parties has any liability for 409A Tax or any other
reporting or withholding obligation to any other Party.

XI.

Except as provided herein, the Agreement shall remain
in full force and effect.

IN
WITNESS WHEREOF, the Parties have executed this Amendment on
and effective as of December 19, 2006.

	
   

  	
  CAREER EDUCATION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert E.
  Dowdell

  	
   

  
	
   

  	
   

  	
  Robert E.
  Dowdell

  
	
   

  	
   

  
	
   

  	
  Its: President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  CEC
  EMPLOYEE GROUP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick K.
  Pesch

  	
   

  
	
   

  	
   

  	
  Patrick K. Pesch

  
	
   

  	
   

  
	
   

  	
  Its: Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Larson

  	
   

  
	
   

  	
   

  	
  John M. Larson

  

 

 5
 

 

EXHIBIT A

Second Amendment to the
Employment Agreement by and among John M. Larson, Career Education Corporation
and CEC Employee Group, LLC

DECEMBER
19, 2006

OPTIONS

	
  Grant Date

  	
   

  	
  Exercise

  Price per

  Share

  	
   

  	
  Number of

  Shares

  Underlying the

  Options

  	
   

  	
  Vested and

  Outstanding

  Option

  Shares as of

  December

  19, 2006*

  	
   

  
	
  May 20, 1999

  	
   

  	
  $

  	
  4.6563

  	
   

  	
  600,000

  	
   

  	
  120,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 28, 2000

  	
   

  	
  $

  	
  6.00

  	
   

  	
  1,000,000

  	
   

  	
  932,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 11, 2001

  	
   

  	
  $

  	
  12.625

  	
   

  	
  600,000

  	
   

  	
  600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 17, 2002

  	
   

  	
  $

  	
  22.065

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 19, 2003

  	
   

  	
  $

  	
  29.35

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 21, 2004

  	
   

  	
  $

  	
  62.56

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 20, 2005

  	
   

  	
  $

  	
  34.70

  	
   

  	
  150,000

  	
   

  	
  75,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 18, 2006

  	
   

  	
  $

  	
  30.80

  	
   

  	
  100,000

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Shares

  	
   

  	
   

  	
   

  	
  3,050,000

  	
   

  	
  2,352,000

  	
   

  

 

*Includes the Accelerated Options
per this Second Amendment to the Agreement

 6
 

 

EXHIBIT B

Second Amendment to the
Employment Agreement by and among John M. Larson, Career Education Corporation
and CEC Employee Group, LLC

DECEMBER
19, 2006

EXTENDED OPTIONS

	
  Grant Date

  	
   

  	
  Exercise

  Price per

  Share

  	
   

  	
  Number of

  Shares

  Underlying the

  Options

  	
   

  	
  Vested and

  Outstanding

  Option

  Shares as of

  December

  19, 2006*

  	
   

  
	
  May 17, 2002

  	
   

  	
  $

  	
  22.065

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 19, 2003

  	
   

  	
  $

  	
  29.35

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 21, 2004

  	
   

  	
  $

  	
  62.56

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 20, 2005

  	
   

  	
  $

  	
  34.70

  	
   

  	
  150,000

  	
   

  	
  75,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 18, 2006

  	
   

  	
  $

  	
  30.80

  	
   

  	
  100,000

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Shares

  	
   

  	
   

  	
   

  	
  850,000

  	
   

  	
  700,000

  	
   

  

 

*Includes the Accelerated Options
per this Second Amendment to the Agreement

 7
 

 

EXHIBIT C

Second Amendment to the
Employment Agreement by and among John M. Larson, Career Education Corporation
and CEC Employee Group, LLC

DECEMBER
19, 2006

ACCELERATED OPTIONS

	
  Grant Date

  	
   

  	
  Exercise

  Price per

  Share

  	
   

  	
  Total Number of

  Shares

  Underlying the

  Options on

  Grant Date

  	
   

  	
  Number of

  Accelerated

  Options

  	
   

  
	
  May 19, 2003

  	
   

  	
  $

  	
  29.35

  	
   

  	
  150,000

  	
   

  	
  37,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 20, 2005

  	
   

  	
  $

  	
  34.70

  	
   

  	
  150,000

  	
   

  	
  37,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 18, 2006

  	
   

  	
  $

  	
  30.80

  	
   

  	
  100,000

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Shares

  	
   

  	
   

  	
   

  	
  400,000

  	
   

  	
  100,000

  	
   

  

 

 8Exhibit 4.1

AMENDMENT NO. 2 TO RIGHTS AGREEMENT

This AMENDMENT NO. 2 TO RIGHTS AGREEMENT, dated as of
December 19, 2006 (this “Amendment”), to the Rights Agreement, dated as of
December 17, 1998, as amended by AMENDMENT NO. 1 TO RIGHTS AGREEMENT, dated as of
October 13, 2006 (the “Rights Agreement”), by and between JOHN H. HARLAND
COMPANY, a Georgia corporation (the “Company”) and WELLS FARGO BANK, N.A., a
national banking association, as Rights Agent (the “Rights Agent”), is entered
into by and between the Company and the Rights Agent.

WHEREAS, the Company, M & F Worldwide Corp., a
Delaware corporation (“Parent”) and H Acquisition Corp., a Georgia corporation
and a wholly owned subsidiary of Parent, intend to enter into an Agreement and
Plan of Merger to be dated the date hereof (as the same may be amended from
time to time, the “Merger Agreement”);

WHEREAS, the Company desires to amend the Rights
Agreement to render the Rights inapplicable to the Merger (as defined in the
Merger Agreement) and the other transactions contemplated by the Merger
Agreement;

WHEREAS, the Board of Directors of the Company has
approved the amendment of the Rights Agreement and the execution and delivery
of this Amendment; and

WHEREAS, pursuant to Section 27 of the Rights
Agreement, the Company may, and the Rights Agent shall, if so directed by the
Company, from time to time, supplement or amend the Rights Agreement.

NOW, THEREFORE, in consideration of the foregoing, the
Company and the Rights Agent hereby agree as follows:

Section 1. Amendments to the Rights Agreement.
The Rights Agreement is hereby amended as follows:

(a)           The definition of “Acquiring Person”
in Section 1(a) of the Rights Agreement is amended by adding the following new
sentence at the end thereof:

“Notwithstanding
anything in this Rights Agreement to the contrary, neither M & F Worldwide
Corp., a Delaware corporation (“Parent”), H Acquisition Corp., a Georgia
corporation and a wholly owned subsidiary of Parent (“Merger Sub”), nor any
Affiliates or Associates of Parent or Merger Sub shall be deemed to be an
Acquiring Person, either individually or collectively, in connection with or as
a result of (i) the execution, delivery or performance of the Agreement and
Plan of Merger, dated as of December 19, 2006, between Parent, Merger Sub and
the Company (as the same may be amended from time to time, the “Merger
Agreement”), (ii) the consummation of the Merger (as defined in the Merger
Agreement) or any of the transactions contemplated by the Merger Agreement or
(iii) the public announcement of the execution and delivery of the Merger
Agreement.”

(b)           The definition of “Distribution Date”
in Section 1(k) of the Rights

 

Agreement is amended by adding the following
new sentence at the end thereof:

“Notwithstanding
anything in this Rights Agreement to the contrary, a Distribution Date shall
not be deemed to have occurred in connection with or as a result of (i) the
execution, delivery or performance of the Merger Agreement, (ii) the
consummation of the Merger or any of the transactions contemplated by the
Merger Agreement or (iii) the public announcement of the execution and delivery
of the Merger Agreement.”

(c)           The
definition of “Stock Acquisition Date” in Section 1(dd) of the Rights Agreement
is amended by adding the following new sentence at the end thereof:

“Notwithstanding
anything in this Rights Agreement to the contrary, a Stock Acquisition Date
shall not be deemed to have occurred in connection with or as a result of (i)
the execution, delivery or performance of the Merger Agreement, (ii) the
consummation of the Merger or any of the transactions contemplated by the
Merger Agreement or (iii) the public announcement of the execution and delivery
of the Merger Agreement.”

(d)           The
definition of “Triggering Event” in Section 1(ii) of the Rights Agreement is
amended by adding the following new sentence at the end thereof:

“Notwithstanding
anything in this Rights Agreement to the contrary, a Triggering Event shall not
be deemed to have occurred in connection with or as a result of (i) the
execution, delivery or performance of the Merger Agreement, (ii) the
consummation of the Merger or any of the transactions contemplated by the
Merger Agreement or (iii) the public announcement of the execution and delivery
of the Merger Agreement.”

(e)           A
new Section 23(c) of the Rights Agreement is added as follows:

“Notwithstanding
anything in this Rights Agreement to the contrary, the Rights will expire in
their entirety immediately prior to the Effective Time (as defined in the
Merger Agreement) without any payment being made in respect thereof.”

Section 2. Severability. If any term,
provision, covenant or restriction of this Amendment is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Amendment, and the Rights Agreement, shall remain in full force and effect and
shall in no way be affected, impaired or invalidated.

Section 3. Defined Terms. Capitalized terms
used but not defined herein shall have the meaning given to them in the Rights
Agreement.

Section 4. Governing Law. This Amendment shall
be deemed to be a contract made under the laws of the State of Georgia and for
all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts made and to be performed entirely within
such State.

 2
 

 

Section 5. Execution in Counterparts. This
Amendment may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

Section 6. Ratification, Adoption and Approval.
In all respects not inconsistent with the terms and provisions of this
Amendment, the Rights Agreement is hereby ratified, adopted, approved and
confirmed. In executing and delivering this Amendment, the Rights Agent shall
be entitled to all the privileges and immunities afforded to the Rights Agent
under the terms and conditions of the Rights Agreement.

Section 7. Effect of Amendment. The Rights
Agreement, as amended by this Amendment, shall remain in full force and effect
in accordance with its terms.

[SIGNATURE PAGE FOLLOWS]

 3
 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed as of the day and year first above written.

	
   

  	
  JOHN H. HARLAND COMPANY

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
    /s/ Timothy
  C. Tuff

  	
   

  	 

	
   

  	
   

  	
  Name: Timothy C.
  Tuff

  	 

	
   

  	
   

  	
  Title:

  	
  Chairman of the
  Board, President

  	 

	
   

  	
   

  	
   

  	
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  WELLS FARGO BANK, N.A., as Rights Agent

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/ Claudine
  Anderson

  	
   

  	 

	
   

  	
   

  	
  Name: Claudine
  Anderson

  	 

	
   

  	
   

  	
  Title: Vice
  President

  	 

						

 

 4

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