Plaintifl MAS

DAVID F. CARNEY, SHAUN F. MCALMONT,

Al EX1S P MIC HAS i 4MLS 3 BLRXL IR, PALL

E. GLASKE. PETER S. BURGESS, 3. BARRY

MORROW, CELIA H CURRIN, CHARLES FKALMBACH, ALVIN 0. AUSTIN, and CESAR

RIBEIRO,

Defendants.

and

LINCOLN EDUCATIONAL SERVICES CORP.,

Nominal Defendant,

JIPULATION OF VOLUNTAR SMISSAL OF

VERIFIED ShAREhOLDER DERIVATIVE COMPLAINT

WHEREAS, on December 21, 2010, plaintliTMike Schweertrnann (“Plaintiff”)

filed a Verified Shareholder Derivative Complaint (the “Complaint”) against defendants

David F. Carney, Shaun F. McAlmont, Alexis P. Michas, James J. Burke, Jr., Paul P.

Glasice, Peter S. Burgess, 3. Barry Marrow, Celia H. Currin, Charles F. Kaimbach, Alvin

0. Austin, Cesar Ribeiro. and nominal defendant Lincoln Educational Services Corp.

(collectively, “Defendants”);

WHEREAS, on March 2, 201 1, the parties submitted a consent order agreeing to

a stay of all proceedings pending resolution of the motion to dismiss In re Lincoln

Educarfond Services Corp. Securities Litigation, No. l0cv4160SRCMAS (the

S.cu itie., “Ctlor ) (Dk No 24) a related federal seurmes action (Diu No I U)
motion for summary judgment;

WHEREAS, PlaintitTseeks approval to voluntarily dismiss this shareholder

derivative action without prejudice as to all Defendants pursuant to Fed. R. Civ. P.

4l(a)(l))(ii) and Fed, R. Civ. P. 23.1;

WHEREAS, the purposes of court approval and notice of dismissal of a derivative

action pursuant to Fed. R. Civ. P. 23J are “to discourage the private settlement of a

derivative claim under which a shareholderplaintiff and his attorney personally profit to

the exclusion ofthe corporation and the other shareholders” and “preventfl any prejudice

to the corporate claim that might result from a discontinuance ofthe suit,” 7C Wright &

Miller, Fed. Prac, & Proc. Civ. §1839;

WHEREAS, Plaintiff and Defendants represent that neither Plaintiff nor his

counsel has received or will receive any payment or other benefit in exchange for

PlaintiWs voluntary dismissal of claims against Defendants; and

WHEREAS notice under Fed. R. Civ. P. 23.1 is within the Court’s discretion and

is not required here because Plaintiff’s decision to voluntarily dismiss the Complaint is

not the result of collusion. will not result in any profit to Plaintiff or his counsel, and will

not prejudice the rights of other shareholders to pursue the same or similar claims on

behalfofthe Company

NOW AND THEREFORE, the Parties respectfully request that the Court issue

the instant Order dismissing this action without prejudice and without the need for notice
BRICKFIELD & DONAHUE LOWENSTEIN SANDLER PC

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Paul B. Brickfield Dou1as S. Eakeley 70 Grand Avenue. Suite 102 Monica Perrette River Edge. New Jersey 07661 65 Livingston Avcnuc (201) 488.7707 Roseland. New Jersey 07068 pbrickfietdbrickdonlaw.eom (973) 597.2500

deake1cy(ciowenstei n.eonl and mperrettelowenstein.oom

KAHN SW1CK & FOT1 LLC and

SHEARMAN & STERLiNG LL.P Lewis S. Kahn

Albert M. Myers

Melinda A. Nicholson Alan S. Goudiss 206 Covington Street Christopher R. Fenton Madisonvitle, Louisiana 70447 599 Lexington Avenue (504) 455-1400 New York, New York 10022 kwiskahn(bfcounsel .com (212) 848-4000 albert.myersksfcounset.eorn agoudiss©shearman.com mellnda.nichoison@k5fcounse1.com ehristopher!entonshearman.eom

Counsel/br Plainff C’ounsclfor Deftndants

SOORDEREI) I

Hon.tanlcy R. Chesler

U.S. District Judge

District ofNew Jersey
BRJCKFIELD & DONAHUE

Paul B. }irickfield

70 Grand Avenue, Suite 102

River Edge, New Jersey 07661

(201) 4884707pbrfckfieIdbrickdon1awcom

and

Albert M. Myers

Melinda A. Nicholson

206 Covingtcrn Street

Madisonville, Louisiana 70447(504) 4551400

lewis.bhn@ksfcolmsel.com

aibert.myersksfbounseLeorn

melinda.nicholson@ksfcounseLcxim

Counsel/or Plaintiff

SO OflDER1!D

y,

LOWENSTEIN SANDLER PC

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i;iEakeley Monica Perrette65 Livingston Avenue

Roseland, New Jersey 07068

(973) 5972500

deakelcy©lowenstein.corn mpenettcbweasteln.com

and

Goudiss

Cbrktopher R. Penton

599 Lexington Avenue

New York, New York 10022

(212) 8484000

agoudiss©sheannan.eom

christopher.fbnton©shearman.oom

Counselfor Dejkndcmis

Hon. Stanley R. hes1erUS. District Judge

District ofNew Jersey

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