Document:

EXHIBIT 10.2

 

AMENDMENT
TO THE SPX CORPORATION

1997
NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN

 

Pursuant to the powers of amendment reserved in Section 10
of the SPX Corporation 1997 Non-Employee Directors’ Compensation Plan (the “Plan”),
effective as of June 22, 2005, SPX Corporation hereby amends the Plan in
the following manner:

 

1.                Section 8 is amended by the addition of
the following to subsection 8.1:

 

“Notwithstanding the
foregoing, effective as of June 23, 2005, the EVA bonus bank balances of
the Non-Employee Directors provided hereunder shall be converted into
performance shares under the SPX Corporation 2005 Non-Employee Directors’
Compensation Plan for such Non-Employee Directors, and such EVA bonus bank
balances shall be eliminated as of such date.”EXHIBIT 10.3

 

AMENDMENT
TO THE SPX CORPORATION

2005
NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN

 

Pursuant to the powers of amendment reserved in Section 5
of the SPX Corporation 2005 Non-Employee Directors’ Compensation Plan (the “Plan”),
effective as of June 22, 2005, SPX Corporation hereby amends the Plan in
the following manner:

 

1.                Section 4 is amended by the addition of
the following subsection 4.6:

 

“4.6                                    Conversion of EVA Bank Balances. 
Effective as of June 23, 2005, the EVA bonus bank balances of the
Non-Employee Directors under subsection 8.1 of the SPX Corporation 1997
Non-Employee Directors’ Compensation Plan (the “Bank Balances”) shall be
converted into Performance Shares.  For
each applicable Non-Employee Director, his or her Bank Balance as of June 22,
2005 shall be converted into such number of Performance Shares as is equal to
such Bank Balance as of June 22, 2005 divided by the Fair Market Value of
SPX Common Stock on June 22, 2005 (rounding up for fractional
shares).  Such Performance Shares shall
be granted to the applicable Non-Employee Director on June 23, 2005 and
shall vest in three equal annual installments on the first, second and third
anniversaries of such grant date (provided the Non-Employee Director is still a
member of the Board as of the applicable date). 
Any unvested portion of such Performance Shares shall be forfeited and
cancelled upon the date on which the Non-Employee Director ceases to be a
member of the Board for any reason other than death or disability.  Notwithstanding the foregoing, any unvested
Performance Shares (which have not been forfeited and cancelled pursuant to the
preceding sentence) shall vest upon the earlier of (i) the death or
disability of the Non-Employee Director, or (ii) a Change of Control.  The Performance Shares granted under this subsection 4.6
shall be subject to all provisions of the Plan other than subsections 4.1 and
4.2.”Exhibit 4.1

 

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT, dated as of June 27, 2005
(this “Agreement”), by and between Back to School Acquisition, L.L.C., a
limited liability company formed under the laws of the State of Delaware (“Stonington”),
and Lincoln Educational Services Corporation, a New Jersey corporation (the “Company”).

 

WHEREAS, Stonington has agreed that it is in the best
interests of the Company to have the Company issue shares of its common stock
(the “Common Stock”), no par value per share, to the public in an
initial public offering (the “IPO”) as soon as practicable following the
date of this Agreement.

 

WHEREAS, the Company has agreed to provide certain
registration rights to Stonington with respect to any Registrable Securities
(as defined below) held by Stonington upon completion of the IPO upon the terms
and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and
the covenants hereinafter contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, it is agreed as follows:

 

1.  Definitions.  (a) 
Unless otherwise defined herein, the terms below shall have the following meanings
(such meanings being equally applicable to both the singular and plural form of
the terms defined):

 

“Agreement” shall mean this Registration Rights
Agreement, including all amendments, modifications and supplements and any
exhibits or schedules to any of the foregoing.

 

“Business Day” shall mean any day that is not a
Saturday, a Sunday or a day on which commercial banks are required or permitted
by law to be closed in the City of New York in the State of New York.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and all rules and regulations
promulgated thereunder.

 

“Holder” shall mean Stonington, and any
transferee of Stonington to whom Registrable Securities are permitted to be
transferred in accordance with the terms of this Agreement, and, in each case,
who continues to be entitled to the rights of a Holder hereunder.

 

“NASD” shall mean the National Association of
Securities Dealers, Inc., or any successor entity thereof.

 

 

“Person” shall mean any individual, corporation,
partnership, joint venture, firm, trust, unincorporated organization,
government or any agency or political subdivision thereof or other entity.

 

“Registrable Securities” shall mean (a) Common
Stock held by a Holder and (b) any securities issuable or issued or
distributed in respect of any of the Common Stock identified in clause (a) by
way of a dividend or a stock split or in connection with a combination
recapitalization, reorganization, merger, consolidation or otherwise.  For
purposes of this Agreement Registrable Securities shall cease to be Registrable
Securities when (i) a Registration Statement covering such Registrable
Securities has been declared effective under the Securities Act by the SEC and
such Registrable Securities have been disposed of pursuant to such effective
Registration Statement, (ii) the entire amount of such Registrable
Securities proposed to be sold by a Holder in a single sale constitute less
than 1% of the then outstanding Common Stock and, in the opinion of counsel to
such Holder, such Registrable Securities may be distributed to the public
pursuant to Rule 144 (or any successor provision then in effect) under the
Securities Act or (iii) any such Registrable Securities have been sold in
a sale made pursuant to Rule 144 under the Securities Act.

 

“Registration Statement” shall mean a Demand
Registration Statement, a Piggy-Back Registration Statement and/or a Shelf
Registration Statement, as the case may be.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and all rules and regulations promulgated thereunder.

 

“SEC” shall mean the Securities and Exchange
Commission, or any successor thereto.

 

(b)          
The following terms have the meanings set forth in the Section set forth
opposite such term:

 

	
  Term

  	
   

  	
   

  	
  Section

  	
   

  
	
  Blackout
  Period

  	
   

  	
  4

  
	
  Common
  Stock

  	
   

  	
  Recitals

  
	
  Demand
  for Registration

  	
   

  	
  2(c)

  
	
  Demand
  Registration

  	
   

  	
  2(a)

  
	
  Demand
  Registration Statement

  	
   

  	
  2(a)

  
	
  Indemnified
  Party

  	
   

  	
  8(d)

  
	
  Indemnifying
  Party

  	
   

  	
  8(d
  )

  
	
  IPO

  	
   

  	
  Recitals

  
	
  Participating
  Demand Holders

  	
   

  	
  2(a)

  
	
  Participating
  Piggy-Back Holders

  	
   

  	
  3(b)

  
	
  Piggy-Back
  Registration

  	
   

  	
  3(a)

  
	
  Piggy-Back
  Registration Statement

  	
   

  	
  3(a)

  
	
  Shelf
  Registration

  	
   

  	
  2(b)

  
	
  Shelf
  Registration Statement

  	
   

  	
  2(b)

  

 

2.  Demand Registration.

 

2

 

(a)          
At any time after the completion of the IPO, after receipt of a written request
from a Holder requesting that the Company effect a registration (a “Demand
Registration”) under the Securities Act covering all or part of the
Registrable Securities that specifies the intended method or methods of
disposition thereof, the Company shall, as expeditiously as is possible, but in
any event no later than thirty (30) days (excluding any days which occur during
a permitted Blackout Period under Section 4 below) after receipt of a
written request for a Demand Registration, file with the SEC a registration
statement (a “Demand Registration Statement”) relating to all
Registrable Securities which the Company has been so requested to register by
such Holder (“Participating Demand Holders”) for sale, to the extent
required to permit the disposition (in accordance with the intended method or
methods thereof, as aforesaid) of the Registrable Securities so registered, and
shall use its reasonable best efforts to cause to be declared effective such
Demand Registration Statement, provided, however, that (i) the
aggregate value of the Registrable Securities requested to be registered shall
be greater than $25 million, based on the closing trading price of the Common
Stock on the date the demand to file such Demand Registration Statement is
made, (ii) the number of the Registrable Securities requested to be
registered shall be at least equal to 10% of the number of shares of the
Company’s outstanding Common Stock on the date the demand to file such Demand
Registration Statement is made or (iii) the Registrable Securities
proposed to be included in such Demand Registration Statement constitutes all
Registrable Securities which remain outstanding at such time.

 

(b)          
Any Demand Registration Statement may be required by Participating Demand
Holders constituting a majority of the Registrable Securities to be in an
appropriate form under the Securities Act (a “Shelf Registration Statement”)
relating to any or all of the Registrable Securities in accordance with the
methods of distribution set forth in the Shelf Registration Statement and Rule 415
under the Securities Act (a “Shelf Registration”).

 

(c)          
Holders shall be entitled to an aggregate of four (4) registrations of
Registrable Securities pursuant to this Section 2 (each, a “Demand
Registration”); provided, that a registration requested pursuant to
this Section 2 shall not be deemed to have been effected for purposes of
this Section 2(c) unless (i) it has been declared effective by
the SEC, (ii) it has remained effective for the period set forth in Section 5(a),
(iii) Holders of Registrable Securities included in such registration have
not withdrawn sufficient Common Stock from such registration such that the
remaining Holders requesting registration would not have been able to request
registration under the provisions of Section 2 (iv) the Company has
not included any other securities in such Demand Registration Statement and (v) the
offering of Registrable Securities pursuant to such registration is not subject
to any stop order, injunction or other order or requirement of the SEC (other
than any such stop order, injunction, or other requirement of the SEC prompted
by act or omission of Holders of Registrable Securities).

 

(d)          
Notwithstanding anything to the contrary contained herein, the Company shall
not be required to prepare and file a Demand Registration Statement pursuant to
this Section 2 if (i) the demand to prepare and file such Demand
Registration Statement is made at any time up to 180 days following the
effective date for any registration statement filed in connection with any
offering of Common Stock by the Company to the general pubic, other than the
IPO, in which Holders shall have been able to register all Registrable
Securities that are the

 

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subject
of such demand, or (ii) the Company has effected a Demand Registration
with respect to a Holder’s Registrable Securities and such Demand Registration
Statement is still effective.

 

(e)          
If, in the written opinion of the managing underwriter (or, in the
case of a non-underwritten offering, as reasonably determined by the Board and
communicated in writing to the Holders), the total amount of Common Stock to be
so registered, including such Registrable Securities, will exceed the maximum
amount of the Company’s Common Stock which can be marketed (i) at a price
reasonably related to the then current market value of such Common Stock, or (ii) without
otherwise materially and adversely affecting the entire offering, then the
Company shall be entitled to reduce the number of Registrable Securities to be
sold in the offering by the Holders, and any other stockholders of the Company
exercising registration rights similar to those set forth herein, to that
number which in the written opinion of the managing underwriter (or, in the
case of a non-underwritten offering, as reasonably determined by the Board and
communicated in writing to the Holders) would permit all such shares of Common
Stock (including such shares of Common Stock held by any other stockholder of
the Company who proposes to exercise such registration rights) to be so
marketed.  Such reduction shall be
allocated among the Holders in proportion (as nearly as practicable) to the
amount of Registrable Securities owned by each such Holder and the number of
shares of Common Stock owned by any other stockholders of the Company which are
sought to be included in the registration statement by such other stockholders
of the Company, all measured at the time of filing the registration statement.

 

3.  Piggy-Back Registration.

 

(a)          
At any time after completion of the IPO, if the Company proposes to file on its
behalf and/or on behalf of any holder of its securities a registration
statement under the Securities Act on any form (other than a registration
statement on Form S-4 or S-8 or any successor form for
securities to be offered in a transaction of the type referred to in Rule 145
under the Securities Act or to employees of the Company pursuant to any
employee benefit plan, respectively) for the registration of Common Stock (a “Piggy-Back
Registration”), it will give written notice to all Holders at least twenty
(20) days before the initial filing with the SEC of such piggy-back
registration statement (a “Piggy-Back Registration Statement”), which
notice shall set forth the intended method of disposition of the securities
proposed to be registered by the Company.  The notice shall offer to
include in such filing such aggregate number of Registrable Securities as the
Holders may request.

 

(b)          
Each Holder desiring to have Registrable Securities registered under this Section 3
(“Participating Piggy-Back Holders”) shall advise the Company in writing
within ten (10) days after the date of receipt of such offer from the
Company, setting forth the number of such Registrable Securities for which
registration is requested.  The Company shall thereupon include in such
Piggy-Back Registration Statement the number of Registrable Securities for
which registration is so requested and shall use its reasonable best efforts to
effect registration of such Registrable Securities under the Securities Act.

 

(c)          
If, in the written opinion of the managing underwriter (or, in the case
of a non-underwritten offering, as reasonably determined by the Board and
communicated in writing to the Holders), the total amount of Common Stock to be
so registered, including such Registrable Securities, will exceed the maximum
amount of the Company’s Common Stock which can be marketed (i) at a price
reasonably related to the then current market value of such Common Stock, or (ii) without
otherwise materially and adversely affecting the entire offering, then the
Company shall be entitled to reduce the number of Registrable Securities to be
sold in the offering by the Holders, and any other stockholders of the Company
excerising registration rights similar to those set forth herein, to that
number which in the written opinion of the managing underwriter (or, in the
case of a non-underwritten offering, as reasonably determined by the Board and
communicated in writing to the Holders) would permit all such shares of Common
Stock (including such shares of Common Stock held by any other stockholder of
the Company who proposes to exercise such registration rights) to be so
marketed.  Such reduction shall be
allocated among the Holders in proportion (as nearly as practicable) to the
amount of Registrable Securities owned by each such Holder and the number of
shares of Common Stock owned by any other stockholders of the Company which are
sought to be included in the registration statement by such other stockholders
of the Company, all measured at the time of filing the registration statement.

 

4.  Blackout Periods.  The
Company shall have the right to delay the filing or effectiveness of a
Registration Statement required pursuant to Sections 2 or 3 hereof  (a “Blackout
Period”) in the event that (i) the Company would, in accordance with
the reasonable advice of its outside legal counsel, be required to disclose
either in the prospectus or on a continuing basis information the disclosure of
which is not in the best interests of the Company’s shareholders or (ii) in
the good faith judgment of the Company’s board of directors, there is a
reasonable likelihood that such disclosure, or any other action to be taken in
connection with the prospectus, would materially and adversely affect or
interfere with any financing, acquisition, merger, disposition of assets (not
in the ordinary course of business), corporate reorganization or other similar
transaction involving the Company which is material to the Company.  The
Company shall promptly give the Holders written notice of such determination
containing a general statement of the reasons for such postponement and an
approximation of the anticipated delay.

 

5.  Registration Procedures.  If
the Company is required by the provisions of Section 2 or 3 to use its
reasonable best efforts to effect the registration of any of its securities
under the Securities Act, the Company will, as expeditiously as possible:

 

(a)          
prepare and file with the SEC the applicable Registration Statement with
respect to such securities and use its reasonable best efforts to cause such
Registration Statement promptly to become and remain effective for a period of
time required for the disposition of such Securities by the Holders thereof
(except with respect to a Shelf

 

4

 

Registration
Statement which shall remain effective for a period not to exceed two years); provided,
however, that before filing such Registration Statement or any
amendments thereto (for purposes of this subsection, amendments shall not be
deemed to include any filing that the Company is required to make pursuant to
the Exchange Act), the Company shall furnish the representatives of the Holders
referred to in Section 5(m) copies of all documents proposed to be filed,
which documents will be subject to the review of the attorneys retained by such
representative or any such underwriter.  The Company shall not be deemed
to have used its reasonable best efforts to keep a Registration Statement
effective during the applicable period if it voluntarily takes any action that
would result in the Holders of such Registrable Securities not being able to
sell such Registrable Securities during that period, unless such action is
required under applicable law;

 

(b)          
prepare and file with the SEC such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may
be necessary to keep such Registration Statement effective and to comply with
the provisions of the Securities Act with respect to the sale or other
disposition of all securities covered by such Registration Statement until the
earlier of such time as all of such securities have been disposed of in a
public offering or, with respect to the Shelf Registration Statement, the
expiration of the two year period referred to in subsection (a) above;

 

(c)          
furnish to such selling Holders such number of conformed copies of the
applicable Registration Statement and each such amendment and supplement
thereto (including in each case all exhibits), and of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents, as such selling Holders may reasonably request;

 

(d)          
use its reasonable best efforts to register or qualify the Registrable
Securities covered by such Registration Statement under such other securities
or blue sky laws of such jurisdictions within the United States and Puerto Rico
as each Holder of such securities shall reasonably request, to keep such
registration or qualification in effect for so long as such Registration
Statement remains in effect, and to take any other action which may be
reasonably necessary to enable such seller to consummate the disposition in
such jurisdictions of the securities owned by such Holder (provided, however,
that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business, subject itself to taxation in or
to file a general consent to service of process in any jurisdiction wherein it
would not but for the requirements of this paragraph (d) be obligated
to do so; and provided, further, that the Company shall not be
required to qualify such Registrable Securities in any jurisdiction in which
the securities regulatory authority requires that any Holder submit any of its
Registrable Securities to the terms, provisions and restrictions of any escrow,
lockup or similar agreement(s) for consent to sell Registrable Securities in
such jurisdiction unless such Holder agrees to do so), and do such other
reasonable acts and things as may be required of it to enable such Holder to
consummate the disposition in such jurisdiction of the securities covered by
such Registration Statement;

 

5

 

(e)          
furnish, at the request of any Holder requesting registration of Registrable
Securities pursuant to Section 2 or 3, if the method of distribution is by
means of an underwriting, on the date that the Registrable Securities are
delivered to the underwriters for sale pursuant to such registration, or if
such Registrable Securities are not being sold through underwriters, on the
date that the registration statement with respect to such Registrable
Securities becomes effective, (1) a signed opinion, dated such date, of
the independent legal counsel representing the Company for the purpose of such
registration, addressed to the underwriters, if any, and if such Registrable
Securities are not being sold through underwriters, then to the Holders making
such request, as to such matters as such underwriters or the Holders holding a
majority of the Registrable Securities included in such registration, as the
case may be, may reasonably request; and (2) letters dated such date and
the date the offering is priced from the independent registered public
accountants of the Company, addressed to the underwriters, if any, and if such
Registrable Securities are not being sold through underwriters, then to the
Holders making such request and, if such accountants refuse to deliver such
letters to such Holders, then to the Company (i) stating that they are
independent registered public accountants within the meaning of the Securities Act
and that, in the opinion of such accountants, the financial statements and other
financial data of the Company included in the Registration Statement or the
prospectus, or any amendment or supplement thereto, comply as to form in all
material respects with the applicable accounting requirements of the Securities
Act and (ii) covering such other financial matters (including information
as to the period ending not more than three (3) Business Days prior
to the date of such letters) with respect to the registration in respect of
which such letter is being given as such underwriters or the Holders holding a
majority of the Registrable Securities included in such registration, as the
case may be, may reasonably request and as would be customary in such a
transaction;

 

(f)           
enter into customary agreements (including if the method of distribution is by
means of an underwriting, an underwriting agreement in customary form) and take
such other actions as are reasonably required in order to expedite or
facilitate the disposition of such Registrable Securities;

 

(g)          
otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the SEC, and make earnings statements satisfying the provisions
of Section 11(a) of the Securities Act generally available to the
Holders no later than 45 days after the end of any twelve-month period (or, if
such period is a fiscal year, 90 days (or such shorter time as may be specified
in General Instruction A(2) to Form 10-K under the Securities
Act, or its successor form, as the period within which the Company is required
to file its annual reports on such form)) (i) commencing at the end of any
fiscal quarter in which Registrable Securities are sold to underwriters in an
underwritten public offering, or (ii) if not sold to underwriters in such
an offering, beginning with the first month of the Company’s first fiscal
quarter commencing after the effective date of the Registration Statement,
which statements shall cover said twelve-month periods;

 

6

 

(h)          use
its reasonable efforts to cause all such Registrable Securities to be listed on
each securities exchange or quotation system on which similar securities issued
by the Company are listed or traded;

 

(i)           give
written notice to the Holders:

 

(i)           
when such Registration Statement or any amendment thereto has been filed with
the SEC and when such Registration Statement or any post-effective amendment
thereto has become effective;

 

(ii)          
of any request by the SEC for amendments or supplements to such Registration
Statement or the prospectus included therein or for additional information;

 

(iii)         
of the issuance by the SEC of any stop order suspending the effectiveness of
such Registration Statement or the initiation of any proceedings for that
purpose;

 

(iv)         
of the receipt by the Company or its legal counsel of any notification with
respect to the suspension of the qualification of the Common Stock for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

 

(v)          
of the happening of any event that requires the Company  to make changes
in such Registration Statement or the prospectus in order to make the
statements therein not misleading (which notice shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made);

 

(j)           use
its reasonable efforts to prevent the issuance or obtain the withdrawal of any
order suspending the effectiveness of such Registration Statement at the
earliest possible time;

 

(k)          furnish
to each Holder, without charge, at least one copy of such Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if the Holder so requests in writing, all
exhibits (including those, if any, incorporated by reference);

 

(l)           upon
the occurrence of any event contemplated by Section 5(i)(v) above,
promptly prepare a post-effective amendment to such Registration Statement or a
supplement to the related prospectus or file any other required document so
that, as thereafter delivered to the Holders, the prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.  If the Company notifies the Holders
in accordance with Section 5(i)(v) above to suspend the use of the
prospectus until the requisite changes to the prospectus have been made, then
the Holders shall suspend use of such prospectus and use their reasonable
efforts to return to the Company all copies of such prospectus (at the Company’s
expense) other than

 

7

 

permanent
file copies then in such Holder’s possession, and the period of effectiveness
of such Registration Statement provided for above shall be extended by the
number of days from and including the date of the giving of such notice to the
date Holders shall have received such amended or supplemented prospectus
pursuant to this Section 5(l);

 

(m)         
make reasonably available for inspection by the representatives of the Holders,
any underwriter participating in any disposition pursuant to such Registration
Statement and any attorney, accountant or other agent retained by such
representative or any such underwriter all relevant financial and other
records, pertinent corporate documents and properties of the Company and cause
the Company’s employees to supply all relevant information reasonably requested
by such representative or any such underwriter, attorney, accountant or agent
in connection with the registration;

 

(n)          
in connection with any underwritten offering, make the senior executives of the
Company available to the selling Holders for meetings with prospective
purchasers of the Registrable Securities and prepare and present to potential
investors customary “road show” material in each case in accordance with the
recommendations of the underwriters and in all respects in a manner consistent
with other new issuances of securities in an offering of a similar size to such
offering of the Registrable Securities; and

 

(o)          
use reasonable best efforts to procure the cooperation of the Company’s
transfer agent in settling any offering or sale of Registrable Securities,
including with respect to the transfer of physical certificates representing
limited partner interests into book-entry form in accordance with any
procedures reasonably requested by the Holders or the underwriters.

 

It shall be a condition precedent to the obligation of
the Company to take any action pursuant to this Agreement in respect of the
Registrable Securities which are to be registered at the request of any Holder
that such Holder shall furnish to the Company such information regarding the
Registrable Securities held by such Holder and the intended method of
disposition thereof as the Company shall reasonably request and as shall be
required in connection with the action taken by the Company.

 

6.  Expenses.  All expenses
incurred in connection with each registration pursuant to Sections 2 and 3 of
this Agreement, excluding underwriters’ discounts and commissions, but
including without limitation all registration, filing and qualification fees,
word processing, duplicating, printers’ and accounting fees (including the
expenses of any special audits or “comfort” letters required by or incident to
such performance and compliance), fees of the NASD or listing fees, messenger
and delivery expenses, all fees and expenses of complying with state securities
or blue sky laws, fees and disbursements of counsel for the Company, fees and
expenses of the Company and the underwriters relating to “road show” investor
presentations, including the cost of any aircraft chartered for such purpose,
and the fees and disbursements of one counsel for the selling Holders (which
counsel shall be selected by the Holders holding a majority in interest of the
Registrable Securities being registered), shall be paid by the Company, except
that the Holders shall bear and pay the underwriting commissions

 

8

 

and
discounts applicable to securities offered for their account in connection with
any registrations, filings and qualifications made pursuant to this Agreement.

 

7.  Rule 144 and Rule 144A
Information.  (a)  With a view to making available the benefits
of certain rules and regulations of the SEC which may at any time permit
the sale of the Registrable Securities to the public without registration, at
all times after ninety (90) days after any Registration Statement covering
securities of the Company shall have become effective, the Company agrees to:

 

(i)           
make and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act;

 

(ii)          
use its best efforts to file with the SEC in
a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act; and

 

(iii)         
furnish to each Holder of Registrable Securities forthwith upon request a
written statement by the Company as to its compliance with the reporting
requirements of Rule 144 and of the Securities Act and the Exchange Act, a
copy of the most recent annual or quarterly report of the Company, and such
other reports and documents so filed by the Company as such Holder may
reasonably request in availing itself of any rule or regulation of the SEC
allowing such Holder to sell any Registrable Securities without registration.

 

(b)          
At all times during which the Company is neither subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, nor exempt
from reporting pursuant to Rule 12g3-2(b) under the Exchange
Act, it will provide, upon the written request of any holder of Registrable
Securities in written form (as promptly as practicable and in any event within
15 Business Days), to any prospective buyer of such Common Stock designated by
such holder, all information required by Rule 144A(d)(4)(i) of the
General Regulations promulgated by the SEC under the Securities Act.

 

8.  Indemnification and Contribution.

 

(a)          
The Company shall indemnify and hold harmless each Holder, such Holder’s
members, directors and officers, each person who participates in the offering
of such Registrable Securities, including underwriters (as defined in the
Securities Act), and each person, if any, who controls such Holder or
participating person within the meaning of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which they may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or proceedings in respect thereof) arise out of
or are based on any untrue or alleged untrue statement of any material fact
contained in such registration statement on the effective date thereof
(including any prospectus filed under Rule 424 under the Securities Act or
any amendments or supplements thereto) or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
shall reimburse each such Holder, such Holder’s members, directors and
officers, such participating person or controlling person for any legal or

 

9

 

other
expenses reasonably incurred by them  in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company shall not be liable to any Holder, such Holder’s members,
directors and officers, participating person or controlling person in any such
case for any such loss, claim, damage, liability or action to the extent that
it arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in connection with such
registration statement, preliminary prospectus, final prospectus or amendments
or supplements thereto, in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any such Holder, such Holder’s members, directors and officers, participating
person or controlling person.  Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of any such
Holder, such Holder’s members, directors and officers, participating person or
controlling person, and shall survive the transfer of such securities by such
Holder.

 

(b)          
Each Holder requesting or joining in a registration severally and not jointly
shall indemnify and hold harmless the Company, its directors and officers, and
each person, if any, who controls the Company within the meaning of the Securities
Act, and each agent and any underwriter for the Company (within the meaning of
the Securities Act) against any losses, claims, damages or liabilities, joint
or several, to which the Company or any such director, officer, controlling
person, agent or underwriter may become subject, under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or
proceedings in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in such
registration statement on the effective date thereof (including any prospectus
filed under Rule 424 under the Securities Act or any amendments or
supplements thereto) or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such registration
statement, preliminary or final prospectus, or amendments or supplements
thereto, in reliance upon and in conformity with written information furnished
by or on behalf of such Holder expressly for use in connection with such
registration; and each such Holder shall reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer, controlling
person, agent or underwriter in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however,
that the indemnity agreement contained in this Section 8(b) shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the prior written consent of
such Holder, and provided, further, that the liability of each
Holder hereunder shall be limited to the proportion of any such loss, claim,
damage, liability or expense which is equal to the proportion that the net
proceeds from the sale of the Common Stock sold by such Holder under such
registration statement bears to the total net proceeds from the sale of all
securities sold thereunder, but not in any event to exceed the net proceeds
received by such Holder from the sale of Registrable Securities covered by such
Registration Statement.

 

(c)          
If the indemnification provided for in this Section 8 from the
indemnifying party is unavailable to an indemnified party hereunder in respect
of any losses, claims, damages, liabilities or expenses referred to therein,
then the indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party

 

10

 

as
a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and indemnified parties in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The relative fault of such
indemnifying party and indemnified parties shall be determined by reference to,
among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such
indemnifying party or indemnified parties, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and expenses referred to above shall be deemed to
include any legal or other fees or expenses reasonably incurred by such party
in connection with any investigation or proceeding.  If the allocation
provided in this paragraph (c) is not permitted by applicable law,
the parties shall contribute based upon the relevant benefits received by the
Company from the IPO on the one hand and the net proceeds received by the
Holders from the sale of Registrable Securities on the other.

 

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 8(c) were determined
by pro rata allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.

 

(d)          
Any Person entitled to indemnification under this Section 8 (the
“Indemnified Party”) agrees to give prompt
written notice to the indemnifying party (the “Indemnifying Party”)
after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which the Indemnified Party intends to claim
indemnification or contribution pursuant to this Agreement; provided,
that the failure so to notify the Indemnified Party shall not relieve the
Indemnifying Party of any liability that it may have to the Indemnifying Party hereunder
unless such failure is materially prejudicial to the Indemnifying Party. 
If notice of commencement of any such action is given to the Indemnifying Party
as above provided, the Indemnifying Party shall be entitled to participate in
and, to the extent it may wish, to assume the defense of such action at its own
expense, with counsel chosen by it and reasonably satisfactory to such
Indemnified Party.  The Indemnified Party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be paid by the Indemnified Party
unless (i) the Indemnifying Party agrees to pay the same, (ii) the
Indemnifying Party fails to assume the defense of such action, or (iii) the
named parties to any such action (including any impleaded parties) have been
advised by such counsel that either (A) representation of such Indemnified
Party and the Indemnifying Party by the same counsel would be inappropriate
under applicable standards of professional conduct or (B) there are one or
more legal defenses available to it which are substantially different from or
additional to those available to the Indemnifying Party.  No Indemnifying
Party shall be liable for any settlement entered into without its written
consent, which consent shall not be unreasonably withheld.

 

(e)          
The agreements contained in this Section 8 shall survive the transfer of
the Registrable Securities by any Holder and sale of all the Registrable
Securities pursuant to any

 

11

 

registration
statement and shall remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or such general partner or
participating or controlling Person.

 

9.  Certain Additional Limitations on
Registration Rights.  Notwithstanding the other provisions of this
Agreement, the Company shall not be obligated to register the Registrable
Securities of any Holder (i) if such Holder or any underwriter of such
Registrable Securities shall fail to furnish to the Company necessary
information requested in writing by the Company in respect of the distribution
of such Registrable Securities, or (ii) if such registration involves an
underwritten offering, such Registrable Securities are not included in such
underwritten offering on the same terms and conditions as shall be applicable
to the other Securities being sold through underwriters in the registration or
such Holder fails to enter into an underwriting agreement in customary form
with the underwriter or underwriters selected for such underwritten
offering.  In addition, each Holder agrees not to effect any public sale
or distribution of any Registrable Securities or of any securities convertible
into or exchangeable or exercisable for such Registrable Securities, including
a sale pursuant to Rule 144 under the Securities Act and to enter into a
customary lock-up agreement with the managing underwriter for an offering,
during the 90-day period beginning on the effective date of any Demand
Registration Statement (initiated by such Holder) or Piggy-Back Registration
Statement or other underwritten offering (initiated by the Company) (except as
part of such registration), and the Company agrees to use its reasonable best efforts
to cause its directors and executive officers to enter into a lock-up agreement
of the same term, in each case if and to the extent requested by the managing
underwriter for such offering and if the Company enters into a similar
agreement.

 

10.  No Inconsistent Agreements. 
The Company will not hereafter enter into any agreement with respect to its
securities, which is inconsistent in any material respects with the rights
granted to the Holders in this Agreement.

 

11.  Selection of Managing Underwriters. 
In the event the Participating Demand Holders have requested an underwritten
offering, the underwriter or underwriters shall be selected by the Company and
shall be approved by the Holders of a majority of the shares of Common Stock
being so registered, which approval shall not be unreasonably withheld or
delayed, provided, (i) that all of the representations and
warranties by, and the other agreements on the part of, the Company to and for
the benefit of such underwriters shall also be made to and for the benefit of
such Holders of Registrable Securities, (ii) that any or all of the
conditions precedent to the obligations of such underwriters under such
underwriting agreement shall be conditions precedent to the obligations of such
Holders of Registrable Securities, and (iii) that no Holder shall be
required to make any representations or warranties to or agreements with the
Company or the underwriters other than representations, warranties or
agreements regarding such Holder, the Registrable Securities of such Holder and
such Holder’s intended method of distribution and any other representations
required by law or reasonably required by the underwriter.  Subject to the
foregoing, all Holders proposing to distribute Registrable Securities through
such underwritten offering shall enter into an underwriting agreement in
customary form with the underwriter or underwriters.  If any Holder of
Registrable Securities disapproves of the terms of the underwriting, such
Holder may elect to withdraw all its Registrable Securities by written notice
to the Company, the managing underwriter and the other Holders participating in
such registration.  The securities so withdrawn shall also be withdrawn
from registration.

 

12

 

12.  Miscellaneous.

 

(a)          
Specific Performance.  The parties hereto agree that irreparable
damage would occur in the event any provision of the Agreement was not
performed in accordance with the terms hereof and that the parties hereto shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at law or in equity.

 

(b)          
Amendments and Waivers; Assignment.  (i)  Any provision of
this Agreement may be amended or waived if, and only if, such amendment or waiver
is in writing and signed, in the case of an amendment, by the Company and
Holders of a majority of the aggregate number of shares of Common Stock held by
the Holders (a “majority in interest”), in the case of a waiver, by the party
or parties against whom the waiver is to be effective; provided, however,
that waiver by the Holders shall require the consent of a majority in interest
of the Holders.

 

(ii)          
No failure or delay by any party in exercising any right, power or privilege
hereunder (other than a failure or delay beyond a period of time specified
herein) shall operate as a waiver thereof and no single or partial exercise
thereof shall preclude any other or further exercise thereof or the exercise of
any other right, power or privilege.  The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

(c)          
Notice Generally.  All notices, request, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by courier
service, by fax or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following addresses (or at
such other address for a party as shall be specified by notice given in
accordance with this Section 12(c):

 

(i)           
If to any Holder, at its last known address appearing on the books of the
Company maintained for such purpose.

 

(ii)          
If to the Company, at

 

Lincoln Educational
Services Corporation

200 Executive Drive, Suite 340

West Orange, New Jersey 07052

Attention:  General Counsel

Facsimile:  (973) 766-9130

 

with a copy to:

 

Shearman &
Sterling LLP

599 Lexington Avenue

New York, NY 10022

Attention:  Rohan S. Weerasinghe, Esq. 

Facsimile:  (646) 848-7088

 

or at
such other address as may be substituted by notice given as herein provided.

 

13

 

(d)          
Successors and Assigns; Third Party Beneficiaries.  This Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of the parties hereto as hereinafter provided.  The registration
rights of any Holder with respect to any Registrable Securities shall be
transferred to any Person who is the transferee of such Registrable Securities,
which transferee shall be and become a Holder for all purposes hereof. 
All of the obligations of the Company hereunder shall survive any such
transfer.  Except as provided in Section 8, no Person other
than the parties hereto and their successors and permitted assigns is intended
to be a beneficiary of this Agreement.

 

(e)          
Headings.  The headings and subheadings in this Agreement are
included for convenience and identification only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this
Agreement or any provision hereof.

 

(f)           
Governing Law; Jurisdiction.  This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.

 

(i)           
Any claim, action, suit or proceeding seeking to enforce any provision of, or
based on any matter arising out of or in connection with, this Agreement or the
transactions contemplated hereby may be heard and determined in any New York
state or federal court sitting in The City of New York, County of New York, and
each of the parties hereto hereby consents to the exclusive jurisdiction of
such courts (and of the appropriate appellate courts therefrom in any such
claim, action, suit or proceeding) and irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the
laying of venue of any such claim, action, suit or proceeding in any such court
or that any such claim, action, suit or proceeding that is brought in any such
court has been brought in an inconvenient forum.

 

(ii)          
Subject to applicable law, process in any such claim, action, suit or
proceeding may be served on any party anywhere in the world, whether within or
without the jurisdiction of any such court.  Without limiting the
foregoing and subject to applicable law, each party agrees that service of
process on such party as provided in Section 12(c) shall be deemed
effective service of process on such party.  Nothing herein shall affect
the right of any party to serve legal process in any other manner permitted by
law or at equity.  WITH RESPECT TO ANY SUCH CLAIM, ACTION, SUIT OR
PROCEEDING IN ANY SUCH COURT, EACH OF THE PARTIES IRREVOCABLY WAIVES AND
RELEASES TO THE OTHER ITS RIGHT TO A TRIAL BY JURY, AND AGREES THAT IT WILL NOT
SEEK A TRIAL BY JURY IN ANY SUCH PROCEEDING.

 

(g)          
Severability.  If any term or other provision of this Agreement is
held to be invalid, illegal or incapable of being enforced by any rule of
law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions is not affected in any manner materially
adverse to any party.  Upon a determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in a

 

14

 

mutually
acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.

 

(h)          
Entire Agreement.  This Agreement constitutes the entire agreement
among the parties hereto pertaining to the subject matter hereof and supersedes
all prior agreements and understandings pertaining thereto.

 

(i)           
Cumulative Remedies.  The rights and remedies provided by this
Agreement are cumulative and the use of any one right or remedy by any party
shall not preclude or waive its right to use any or all other remedies. 
Said rights and remedies are given in addition to any other rights the parties
may have by law, statute, ordinance or otherwise.

 

(j)           
Construction.  Each party hereto acknowledges and agrees it has had
the opportunity to draft, review and edit the language of this Agreement and
that no presumption for or against any party arising out of drafting all or any
part of this Agreement will be applied in any claim, action, allegation of
liability, arbitration, litigation or, without limitation, any other dispute,
relating to, in connection with or involving this Agreement.  Accordingly,
the parties hereto hereby waive the benefit of any rule of law or any
legal decision that would require, in cases of uncertainty, that the language
of a contract should be interpreted most strongly against the party who drafted
such language.

 

15

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
   

  	
  BACK TO SCHOOL ACQUISITION, L.L.C.

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  its
  Managing Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  James J. Burke, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James
  J. Burke, Jr.

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LINCOLN EDUCATIONAL SERVICES CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  David F. Carney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David
  F. Carney

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer and

  Chairman of the Board of Directors

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

16

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