Document:

Exhibit 4.1

 

SECOND
AMENDMENT TO RIGHTS AGREEMENT

This Second Amendment to
Rights Agreement, dated as of this 22nd day of September, 2006 (this “Amendment”), is
between The Ryland Group, Inc., a Maryland corporation (the “Company”), and
Mellon Investor Services LLC (formerly known as ChaseMellon Shareholder
Services, L.L.C.), a New Jersey limited liability company (the “Rights Agent”).

WHEREAS, the Company and
the Rights Agent constitute all of the parties to that certain Rights Agreement
dated as of October 18, 1996, as amended (the “Rights Agreement”), between the
Company and the Rights Agent;

WHEREAS, the Company has delivered an appropriate
certificate as described in Section 26 of the Rights Agreement; and

WHEREAS, pursuant to
Section 26 of the Rights Agreement, the Company desires and directs the Rights
Agent to further amend the Rights Agreement as set forth below; and

WHEREAS, all capitalized
terms not otherwise defined herein shall have the meanings ascribed to such
terms in the Rights Agreement.

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein contained, and
intending to be legally bound hereby, the parties hereto do hereby agree as
follows:

Section 1.               Recitals.

The recitals are hereby incorporated into this
Amendment as if hereinafter set forth.

Section 2.               Expiration
Date.

Section 7(a) of the Rights Agreement is hereby amended
by deleting in its entirety all text that appears after the phrase “(ii) the
time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption
Date”),” and replacing it with the following:

“(iii) the time at
which such Rights are exchanged as provided in Section 27 hereof or (iv)
September 23, 2006 (the earlier of (i), (ii), (iii) and (iv) being herein
referred to as the “Expiration Date”).”

Section 3.               New Section 35.

The following is added as a new Section 35 to the
Agreement:

“Section 35.           Termination Upon Expiration Date.

Notwithstanding
anything to the contrary in this Agreement, upon the Expiration Date and
without any further action under this Agreement (i) the Rights, and the right
to exercise the Rights provided for hereunder shall terminate and be of

no further force and effect, (ii) the Rights shall
expire and become null and void, and (iii) the holders of the Rights shall not
be entitled to any benefits, rights or other interests under this Agreement,
including without limitation the right to purchase or otherwise acquire Common
Shares or any other securities of the Company.”

Section 4.               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 shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

Section 5.               Governing
Law.

This
Amendment shall be deemed to be a contract made under the laws of the State of
Maryland (excluding the choice of law provisions) 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.

Section 6.               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 7.               Effect of Amendment.

Except
as expressly modified herein, the Rights Agreement shall remain in full force
and effect.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

	
  Attest:

  	
   

  	
  THE RYLAND GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    /s/
  Andrea L. Riordan

  	
   

  	
   

  	
  By: 

  	
    /s/ Timothy J. Geckle

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Andrea L. Riordan

  	
   

  	
   

  	
  Name:

  	
  Timothy J. Geckle

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
    Assistant
  Secretary

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  MELLON INVESTOR SERVICES, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    /s/
  Patrick Mullary

  	
   

  	
   

  	
  By:

  	
    /s/ Monty Harry

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Patrick Mullary

  	
   

  	
   

  	
  Name:

  	
  Monty Harry

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Director

  	
   

  	
   

  	
  Title:

  	
  Assistance Vice PresidentEXHIBIT 10.1

FIRST 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”) entered into that certain Employment Agreement as of the 1st day of August, 2000 (the “Agreement”);
and

WHEREAS,
the Company intends to remove Executive from the offices of President and Chief
Executive Officer of the Company and to reduce the amount of compensation paid
to Executive effective as of Transition Date as defined in this amendment to
the Agreement; and

WHEREAS,
the Company otherwise desires to continue to employ Executive as the Chairman
of the Board, the Board desires that Executive continue to serve as a member of
the Board and as the Chairman of the Board notwithstanding such changed
employment and does not desire Executive tender his resignation from the Board
or from his position as Chairman of the Board, and except as specifically
modified herein, the Board and Company desire that the Agreement remain in full
force and effect;

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

I.

Section 2
of the Agreement is amended by adding a new sentence to the end of Section 2.1
to read as follows:

Notwithstanding
any prior increase in Base Salary, effective during the term of the Agreement
after September 24, 2006 (the “Transition Date”), the Company agrees to pay
Larson a reduced Base Salary at the rate of $500,000 per annum.  Such reduced Base Salary shall be subject to
annual review by the Board and may be increased by the Board in its sole and
absolute discretion but may not be decreased, and shall otherwise be payable as
set forth in this Section 2.1.

II.

Section
2.4(d)(i)(A)(2) of the Agreement is amended to read as follows:

(2)           a cash amount equal to twenty-four
(24) times the sum of:

(i)            one-twelfth (1/12) of Larson’s Base
Salary at the greater of:

 

(x)                                 the
highest rate in effect at any time during the twelve (12)-month period prior to
the Date of Termination, or

(y)                               the
highest rate in effect at any time during the twelve (12)-month period prior to
the Transition Date,

(ii)           one-twelfth (1/12) of the greater of:

(x)                                 Larson’s
Average Bonus, or

(y)                               Larson’s
Average Bonus calculated as if the Transition Date were the Date of
Termination, and

(iii)                             one
twelfth (1/12) of an amount equal to the greater of:

(x)                                 the
amount the Company contributed on Larson’s behalf for the prior fiscal year
ending before the Date of Termination under any qualified or unqualified (under
Section 401(a) of the Internal Revenue Code of 1986, as amended) defined
contribution plans (“DC Plans”) maintained by the Company as of the Date of
Termination, or

(y)                               the
amount the Company contributed on Larson’s behalf for the 2005 fiscal year
under any DC Plans maintained by the Company as of the Transition Date,

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; and

III.

Section
2.4(d)(ii)(A)(2) of the Agreement is amended to read as follows:

(2)           a cash amount equal to thirty-six
(36) times the sum of:

(i)            one-twelfth (1/12) of Larson’s Base
Salary at the greater of:

(x)                                 the
highest rate in effect at any time during the twelve (12)-month period prior to
the Date of Termination, or

(y)                               the
highest rate in effect at any time during the twelve (12)-month period prior to
the Transition Date,

(ii)           one-twelfth (1/12) of the greater of:

(x)                                 Larson’s
Average Bonus, or

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(y)                               Larson’s
Average Bonus calculated as if the Transition Date were the Date of
Termination, and

(iii)                             one
twelfth (1/12) of an amount equal to the greater of:

(x)                                 the
amount the Company contributed on Larson’s behalf for the prior fiscal year
ending before the Date of Termination under any DC Plans maintained by the
Company as of the Date of Termination, or

(y)                               the
amount the Company contributed on Larson’s behalf for the 2005 fiscal year
under any DC Plans maintained by the Company as of the Transition Date,

that total amount being
payable in equal monthly installments during each of the thirty-six (36) months
following the month in which the Date of Termination occurs; and

IV.

Section
3.3 of the Agreement is amended by adding a new sentence to the end thereof to
read as follows:

The parties hereto
acknowledge and agree that the change in Larson’s duties and responsibilities
by the Company as of the Transition Date by removing Larson from the offices of
President and Chief Executive Officer and the reduction of Larson’s
compensation each separately constitute Good Reason as such term is defined in
this Section 3.3.  The Company and Board
acknowledge and agree that Larson’s agreement to continue employment with the
Company after the Transition Date under the Agreement as modified by the first
amendment to the Agreement shall not in any way be deemed to constitute (i)
consent of Larson to such change, removal or reduction or (ii) a waiver of
Larson’s right to subsequently terminate his employment with the Company for
Good Reason at any time after the Transition Date based on such change, removal
or reduction, or based on any other facts and circumstances that may occur or
have occurred.

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V.

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 September 24, 2006.

	
  

  	
  CAREER EDUCATION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert E. Dowdell

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Lead Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CEC EMPLOYEE GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert E. Dowdell

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Larson

  
	
   

  	
   

  	
  John M. Larson

  

 

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