Document:

Exhibit
10.1

 

 

THIS
BUSINESS SERVICES AGREEMENT is entered into effect on December 10, 2020.

 

BETWEEN:

 

Business
Instincts Group Inc.

a
corporation having its office located

at
400 – 630 – 8 Avenue SW., Calgary, Alberta T2P 1G6

 

(hereinafter
referred to as “BIG”)

 

AND

 

CurrencyWorks
Inc.

a
corporation having its office located

at
561 Indiana Court, Los Angeles, CA, 90291

 

(hereinafter
referred to as the “Client”)

 

WHEREAS
in order to help achieve its corporate and business objectives, the Client desires and has agreed to retain the services of
BIG to provide various business and product development services and BIG agrees to provide such services to the Client, in accordance
with the terms and conditions contained herein;

 

WHEREAS
the parties desire that the Services (as defined below) shall be provided by BIG directly to each of the senior executive
officers and management team employed by the Client (collectively, “Senior Management” and each a “Senior Manager”)
of the Client;

 

WHEREAS
the Canadian Dollar is the accepted currency for the purposes of this Agreement;

 

NOW
THEREFORE in consideration and mutual covenants herein contained and such good and other consideration, the receipt and sufficiency
of which is acknowledged by each of the parties, the parties hereto agree as follows:

 

	 	1.	Services,
    Term, and Compensation. The term of this Agreement (the “Term”), the services to be provided by BIG under
    this Agreement (the “Services”) and the amounts to be paid to BIG as full and complete consideration for BIG providing
    the Services under this Agreement (the “Fees”), will be set out separately in the future as separate Schedules,
    which forms part of this Agreement. This Fees shall be calculated based on new business services agreements the Client signs
    with its Customers and at any time this Fees shall not be more than eighty percent of the fees the Client charges its Customers.
	 	 	 
	 	 	This
    Agreement shall come into force and effect as of the date set out first above, and shall continue as prescribed in Schedules
    to be entered in the future. In the event of the expiration or termination of this Agreement, the Client agrees to pay to
    BIG any and all unpaid Fees and expenses (as set forth herein) in full.

 

    	 

     

    

 

 

Fees
are calculated only on the revenue earned and collected by Client from its customers that relates to monthly services fee and
product development fees. Fees will not be calculated on any revenues earned and collected by Client from its customers that is
based on transaction processing fees or any revenue earned in the form of equity or joint venture or profit-sharing arrangements
in the customer’s company.

 

	 	2.	Independent
    Contractor. Subject to the terms and conditions of this Agreement, the Client hereby engages BIG as an independent contractor
    to perform the Services, and BIG hereby accepts such engagement. It is expressly agreed that BIG is acting as an independent
    contractor in performing the Services hereunder.
	 	 	 
	 	3.	Nature
    of Engagement. BIG shall perform the Services as an independent contractor, and nothing contained in this Agreement shall
    be construed to create or imply a joint venture, partnership, principal-agent, or employment relationship between the Client
    and BIG. Unless the Client specifically authorizes BIG in writing to do so, BIG shall neither act or purport to be acting
    as the agent of the Client, nor enter into any agreement on behalf of the Client or otherwise bind, nor purport to bind the
    Client or cause the Client to incur liability in any manner whatsoever. All final decisions with respect to services provided
    by BIG hereunder shall be entirely the Client’s to make, and BIG shall have no liability relating to or arising from
    the Client’s decisions. It is understood that BIG’s responsibility to the Client is solely contractual in nature
    and that BIG does not act in a fiduciary capacity in relation to the Client as a result of this Agreement.
	 	 	 
	 	 	With
    the prior written consent of BIG, not to be unreasonably withheld, nothing in this Agreement shall prohibit the Client, or
    any entity chosen by the Client, from performing some or all of the functions of BIG herein. It is recognized that BIG will
    expend significant time and commit considerable resources to the Client. The Services are not exclusive to the Client however,
    and BIG may render similar services to other parties both during and after the Term.
	 	 	 
	 	4.	Third-Party
    Expenses. The Client is responsible for paying specific disbursements charged by third parties to BIG relating to this
    Agreement, including graphic design, creative, legal and other advisory fees. The Client further agrees to reimburse BIG for
    any out-of-pocket expenses incurred by BIG in connection with this Agreement and carrying out the Services within thirty (30)
    days of presentation of reasonably itemized invoices to the Client as set forth in clause 5 below. These out-of-pocket expenses
    will only be paid to BIG once the Clint collects these out-of-pocket expenses from its customers.
	 	 	 
	 	5.	Billing.
    Accounts, including out-of-pocket expenses, will be rendered by BIG as prescribed in Schedules. Interest on overdue accounts
    attracts interest which is calculated at the rate of 12% per annum commencing thirty (30) days following the date of the invoice
    until the account is paid in full. Any out-of-pocket expenses and disbursements to be charged by third parties shall be pre-approved
    by the Client.
	 	 	 
	 	6.	Information
    Provided to BIG. The Client agrees BIG is entitled to rely (without independent verification) upon any information by
    the Client in relation to this agreement, including information with respect to the assets, liabilities, earnings, earning
    potential, financial condition, historical performance, future prospects and financial projections, and any assumptions used
    in the development of such projections furnished by the Client or any individual on behalf of the Client, and BIG is entitled
    to assume that all such information is true, correct and complete in all material respects and does not contain any untrue
    statements of material fact or omit to state a material fact necessary to ensure the information supplied is not misleading.
    BIG is not liable or responsible for any loss or damage suffered by the Client or others if any misstatement, error or omission
    in any material, information, document or representation supplied or approved by the Client. If at any time during the effectiveness
    of this Agreement, the Client or any of the Client’s agents or advisors becomes aware of any material change in any
    of the information previously furnished to BIG, the Client will promptly advise BIG of the change.

 

    	 

     

    

 

 

	 	7.	Confidentiality.

 

	 	a)	For
    the purpose of this section, the term “Confidential Information” includes, but is not limited to, all business
    and financial information, marketing and strategic plans, equipment details, software 

 

programs,
manuals, maps, customer and client lists, employee information, supplier information, analyses, reports, technologies, processes
and operations, compilations, forecasts, studies. lists, summaries, notes, designs, formulae, innovations, techniques, data, patents
and trade secrets of the Client, as well as the present and contemplated products, techniques and other services evolved or to
be used by the Client. Confidential Information does not include such portions of the Confidential Information which: (i) are,
or prior to the time of disclosure or utilization become, generally available to the public; (ii) are received by BIG from an
independent third party who had obtained the Confidential Information lawfully and was, to the best of BIG’s knowledge,
under

 

No
obligation of secrecy or duty of confidentiality owed to the Client; (iii) BIG can show was in BIG’s lawful possession before
BIG received such Confidential Information from the Client, or (iv) BIG can show that such Confidential Information was independently
developed by BIG having no access to the Confidential Information at the time of its independent development.

 

	 	b)	In
    the course of performing the Services, BIG acknowledges and understands that it will have access to and will be entrusted
    with Confidential Information which is not public, but is proprietary and confidential to the Client. BIG shall keep the Confidential
    Information strictly confidential and shall take all necessary precautions against unauthorized disclosure of the Confidential
    Information during the Term of this Agreement and thereafter. BIG shall not use or reproduce any Confidential Information,
    in any manner, except as reasonably required to perform the Services and/or fulfill the purposes of this Agreement. BIG shall
    ensure that any copies of Confidential Information it takes or makes are clearly marked, or otherwise identified as confidential
    and proprietary to the Client and that all Confidential Information and copies thereof are stored in a secure location while
    in BIG’s possession, control, charge or custody.
	 	 	 
	 	c)	BIG
    hereby agrees and acknowledges that the disclosure of any of the Confidential Information to competitors of the Client or
    to the general public would be highly detrimental to the best interests of the Client. Accordingly, BIG covenants and agrees
    with the Client that, save with the written consent of the Client, it will not, either during the Term of this Agreement,
    or at any time thereafter, directly or indirectly, disclose, allow access to, transmit or transfer any of such Confidential
    Information to any person other than its directors, officers, employees, consultants, agents and advisers or to similar representatives
    of the Client, nor shall it use the same for any purpose other than the purposes of performing the Services to be performed
    by BIG under this Agreement.
	 	 	 
	 	d)	BIG
    acknowledges that it shall not acquire any right, title or interest in or to any Confidential Information by virtue of it
    having access to the same during the Term of this Agreement.
	 	 	 
	 	e)
    	In the event BIG is requested or required pursuant
to any Court order, or other legal or regulatory demand, to disclose any Confidential Information to a third party, BIG agrees
that it will provide the Client with prompt notice of such request or requirement so that the Client, at its option, may seek
an appropriate protective order or other remedies to ensure that Confidential Information will be accorded confidential treatment.

 

    	 

     

    

 

 

	 	f)	Upon
    termination or expiry of this Agreement, for whatever reason, BIG agrees to:

 

	 	(i)	deliver
    to the Client, or destroy, all Confidential Information and copies thereof which are in its power or possession which relate
    in any way to the business of the Client, or its customers; and
	 	 	 
	 	(ii)	remove
    any Confidential Information from BIG’s computers, or computer databases that may have been created in the course of
    performing BIG’s Services under this Agreement (other than information
stored on back-up servers pursuant to the retention of files laws and policies) and certify the return or destruction of all documents
containing Confidential Information.

 

	 	8.	Ownership
    of Work Product. Any and all Work Product conceived, developed, reduced to practice or a definite and practical shape,
    invented, authored, wrote, created, produced or otherwise generated on behalf of BIG or by any employee, agent, contractor,
    representative or other individual acting on behalf of BIG (“BIG Personnel”) in connection with the performance
    of the Services will be the exclusive property of the Client. BIG shall assign and waive, and shall cause to be assigned or
    waived at BIG’s expense,
any right, title and interest in and to the Work Product to or in favor of the Client. In this Agreement, “Work Product”
includes, without limitation any and all of the following: (a) any invention, process,
formula, algorithm, specification, technique, concept, idea, method, diagnostic, compound, development, composition, apparatus,
machine, test, design, trade secret, know how or any improvement, modification, thereto or any issued patent, industrial design
or application therefor applied for, issued or granted in any jurisdiction anywhere in the world, including but not limited to
reissues, divisions, continuations, continuations-in-part, re-examinations, renewals and substitutes thereof, foreign counterparts
of the foregoing, including, without limitation, the right to apply for Letters Patent in the United States, Canada and all other
countries throughout the world and all rights to claim priority based on said applications under the terms of any international
convention, and all rights in the United States, Canada and all other countries throughout the world to sue and recover for past
or future infringement of such rights; (b) trade names, trademarks, trade secrets, service names, service marks, business names,
product names, brands, logos and other distinctive identifications used in commerce, whether in connection with products or services,
and the goodwill associated with any of the foregoing; (c) original works of authorship, derivative works and other copyrightable
works of any nature, and fixations of any of the foregoing; (d) computer software or code of any type (whether source code or
object code) in any programming or markup language, underlying any type of computer programming (whether application software,
middleware, firm ware or system software) including, but not limited to, applets, assemblers, compilers, design tools, and user
interfaces, databases and fixations thereof; (e) uniform resource locators, website addresses, domain names, website content and
all fixations thereof; and (f) any other intellectual and industrial property in and to the foregoing, which is recognized under
the law of any jurisdiction anywhere in the world, whether under common law, by statute or otherwise.

 

	 	9.	Moral
    Rights. BIG acknowledges and agrees that the Client may use, alter, vary, adapt and exploit any Work Product as the Client
    sees fit, in its sole and unfettered discretion. At its own expense, BIG shall cause to be assigned, waived or released any
    and all rights including, but not limited to, all moral rights (as defined under the Copyright Act (Canada)), in or otherwise
    relating to any Work Product in favor of the Client, its successor and assigns.
	 	 	 
	 	10.	Further
    Assurances. At the requested of the Client, BIG will promptly do all acts and execute and deliver to the Client all instruments
    that may be required to effect, register, record, or otherwise perfect the interest of the Client in or relating to Work Product,
    and BIG will cause the BIG Personnel to do the same.

 

    	 

     

    

 

 

	 	11.	Conflicts.
    BIG assists other companies and individuals, some of whom may, on occasion, be competitors or adverse in interest to the
    Client. BIG will not disclose to others any sensitive, proprietary or otherwise
confidential information of a non-public nature concerning or affecting the Client’s affairs, unless such disclosure is
authorized by the client or required to defend BIG against any claim, action, suit, or proceeding, or to the extent such disclosure
is required by any applicable law or regulation.

 

	 	12.	Announcements.
    Provided the Client has provided its prior written consent, not to be unreasonably withheld, BIG may, subject to compliance
    with paragraph 7 hereof, disclose the existence of this Agreement to certain persons and entities selected by BIG and in certain
    electronic and print publications, including BIG’s website. In accordance with all applicable laws, including the Client’s
    disclosure obligations under applicable securities laws, the Client is expressly permitted to make any required disclosures
    of this Agreement, including the material terms hereof.
	 	 	 
	 	13.	Legal
    and Tax Advice. BIG will not provide or be responsible for obtaining legal or tax advice with respect to the Client, nor
    any other legal and regulatory requirements and issues which may arise pursuant to this Agreement. The Client is responsible
    for ensuring compliance with all of the Client’s legal and regulatory requirements in connection with all aspects of
    this Agreement.
	 	 	 
	 	14.	Best
    Efforts/Timely Performance. BIG will use all reasonable efforts to perform the Services to this Agreement within the time-frame
    agreed upon by the parties. Neither the execution and/or delivery of this Agreement, nor the provision of Services hereunder
    constitutes a guarantee or commitment, express or implied, on the part of BIG, as to the timeliness of BIG’s performance
    of the Services. Further, BIG shall not be liable for failures or delays in performance that arise from causes beyond our
    control.
	 	 	 
	 	15.	Indemnification.

 

	 	a)	The
    Client shall indemnify BIG, its shareholders, directors, officers and employees (in each case, a “BIG Indemnitee”)
    from and against all losses, damages, costs and expenses, and hold such BIG Indemnitee harmless from and against any and all
    claims, liabilities, demands, actions, causes of action, lawsuits and proceedings which may be made or brought against or
    suffered by a BIG Indemnitee, or which it may suffer or incur as a result of, in respect of or arising out of, the performance
    of the Services. Notwithstanding the foregoing, no BIG Indemnitee shall be entitled to any indemnification by the Client for
    or in respect of any act, matter or omission caused by (i) fraud, wilful misconduct, bad faith or gross negligence; (ii) violation
    of applicable laws; or (iii) a breach of this Agreement.
	 	 	 
	 	b)	BIG
    shall indemnify and hold harmless the Client, its shareholders, directors, officers and employees (in each case, an “Client
    Indemnitee”) from and against all losses, damages, costs and expenses, and hold such Client Indemnitee harmless
    from and against any and all claims, liabilities, demands, actions, causes of action, lawsuits and proceedings which may be
    made or brought against or suffered by a Client Indemnitee, which it may suffer or incur as a result of, in respect of or
    arising out of any act, matter or omission caused by BIG or any representative thereof: i) fraud, wilful misconduct, bad faith
    or gross negligence; (ii) violation of applicable laws; or (iii) a breach of this Agreement.

 

	 	16.	Non-Solicitation.
    During the Term and for a period of one (1) year thereafter, the Client will not directly or indirectly recruit, solicit
    or hire any employee of BIG, or induce or attempt to induce any employee of BIG to terminate his/her employment with, or otherwise
    cease his/her relationship with BIG. During the Term
and for a period of one (1) year thereafter, BIG will not directly or indirectly recruit, solicit or hire any employee of the
Client, or induce or attempt to induce any employee of the Client to terminate his/her employment with, or otherwise cease his/her
relationship with the Client.

 

    	 

     

    

 

 

	 	17.	Successors
    and Assigns. This Agreement and all obligations and benefits of the Client and BIG shall bind the Client and BIG and any
    of the respective successors and assigns of either.
	 	 	 
	 	18.	Termination
    on Notice.

 

	 	a)	Either
    party may terminate this Agreement at any time upon the provision of thirty (30) days written notice to the other party.
	 	 	 
	 	b)	Upon
    termination of the Agreement BIG will be entitled to no further compensation except the following lump-sum payments (if applicable):

 

	 	i)	any
    fees and commissions earned to the effective date of termination;
	 	 	 
	 	ii)	out
    of pocket expenses incurred prior to the effective date of termination which is otherwise reimbursable by the Client pursuant
    to the terms of this Agreement.

 

	 	19.	Arbitration
    of Disputes. The Client and BIG agree that all claims or controversies, whether such claims or controversies arose prior
    to, on, or subsequent to the date hereof, between the Client and BIG or any of the present or former members, managers, officers,
    employees, agents and representatives of either party concerning or arising from, without limitation, the construction, performance
    or breach of this Agreement, or any duty arising therefrom, shall be determined by arbitration. Any arbitration under this
    Agreement shall be conducted pursuant to the laws of the Province of Alberta before a single arbitrator and shall be binding
    upon the Client and BIG. The costs of the arbitrator shall be borne equally by the Client and BIG, and each of the Client
    and BIG shall bear their respective legal and other fees unless the arbitrator decides to allocate a greater burden of said
    costs and fees to the unsuccessful party.
	 	 	 
	 	20.	Notices.
    Any and all notices, demands, or other communications required or desired to be given hereunder by any party shall be
    in:

 

	 	a)	writing
    and shall be validly given or made to another party if personally served, or if deposited in the Canadian mail, certified
    or registered, postage prepaid, return receipt requested, but not required; or
	 	 	 
	 	b)	via
    electronic mail.

 

If
such notice or demand is served personally, notice shall be deemed constructively made at the time of such personal service. If
such notice, demand or other communication is given by mail, such notice shall be conclusively deemed given five days after deposit
thereof in the Canadian mail addressed to the party to whom such notice, demand or other communication is to be given as follows:

 

If
to BIG:

 

Business
Instincts Group Inc.,

400
– 630 – 8 Avenue SW

Calgary,
Alberta,T2P 1G6, Canada

 

Attention:
Erika Racicot

(403)992-7295

erika@businessinstincts.com

 

    	 

     

    

 

 

If
to the Client:

CurrencyWorks
Inc.

Attention:
Jimmy Geiskopf

Jimmy.geiskopf@currencyworks.io

 

Any
party hereto may change its office or email addresses for purposes of this paragraph by written notice given in the manner provided
above.

 

	 	21.	Waiver.
    Failure of either party hereto to insist upon strict compliance with any of the terms, covenants, and conditions hereof
    shall not be deemed a waiver or relinquishment of any similar right or power hereunder at any subsequent time or of any other
    provision hereof.
	 	 	 
	 	22.	Modification
    or Amendment. No amendment, change or modification of this Agreement shall be valid unless in writing signed by the parties
    hereto.
	 	 	 
	 	23.	Survival.
    Any provision of this Agreement which expressly states that it is to continue in effect after termination or expiration
    of this Agreement, or which by its nature would survive the termination or expiration of this Agreement, shall do so.
	 	 	 
	 	24.	Severability.
    If anyone or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable
    in any respect, any such provision shall be severable from this Agreement, in which event this Agreement shall be construed
    as if such provision had never been contained herein and the remainder of this Agreement shall nevertheless remain in full
    force and effect.
	 	 	 
	 	25.	Entire
    Understanding. This document,, constitute the entire understanding and agreement of the parties, and any and all prior
    agreements, understandings, and representations are hereby terminated and canceled in their entirety and are of no further
    force and effect.
	 	 	 
	 	26.	
    Jurisdiction. The laws of the Province of Alberta shall govern the validity of this Agreement, the construction of
    its terms and the interpretation of the rights and duties of the parties hereto. The parties hereto irrevocably submit to
    the jurisdiction of Alberta for the purpose of any legal suit, action or other proceeding arising out of the Agreement.
	 	 	 
	 	27.	Counterparts.
    Each party hereto may sign this Agreement in counterparts and deliver such counterparts by facsimile or other electronic
    delivery, which parts will be read together and construed as if all signing parties had signed one copy of this Agreement.

 

    	 

     

    

 

 

IN
WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year first written above.

 

	Business
    Instincts Group Inc.	 
	 	 	 	 
	Per:	 	 
	 	Name:
    	Erika
    Racicot	 
	 	Title:

        
	President	 
	 	 	 	 
	Date:	 	 

 

	CurrencyWorks
Innovation Inc. 	 
	 	 
	Per:	 	 
	 	Name:
    	Jimmy
    Geiskopf	 
	 	Title:	Director	 
	 	 	 	 
	Date:Exhibit 10.1

  

  

  

  
    EMPLOYMENT AGREEMENT (this “Agreement”), dated as of December 10, 2020, between LINCOLN EDUCATIONAL SERVICES CORPORATION, a New Jersey corporation (the “Company”), and Scott M. Shaw (the “Executive”).

     

    WHEREAS, the Executive is currently employed by the Company;

     

    WHEREAS, the Executive and the Company entered into an employment agreement, dated, November 7, 2018 which expires pursuant to its terms on December 31, 2020 (the “Prior Agreement”); and

     

    WHEREAS, the parties desire to enter into a new agreement setting forth the terms and conditions of the Executive’s employment with the Company effective as of December 10, 2020 that supersedes the Prior Agreement;

     

    NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, the parties hereto agree as follows:

     

    
      
        1.            EFFECTIVENESS OF AGREEMENT

      

    

     

    

    This Agreement shall become effective as of the date hereof.

     

    
      
        2.            EMPLOYMENT AND DUTIES

      

    

     

    

    2.1          Position and Duties.  The Company hereby continues to employ the Executive, and the Executive agrees to serve, as President and Chief Executive Officer of the Company, upon the terms and conditions
      contained in this Agreement.  The Executive shall report to the Board of Directors of the Company (the “Board”) and perform the duties and services for the Company commensurate with the Executive’s position. Except as may otherwise be approved
      in advance by the Board or the Compensation Committee of the Board (the “Committee”), the Executive shall render his services exclusively to the Company during his employment under this Agreement and shall devote substantially all of his
      working time and efforts to the business and affairs of the Company.

     

    2.2          Term of Employment.  The Executive’s employment under this Agreement shall terminate on December 31, 2022, unless terminated earlier pursuant to Section 5 or extended pursuant to Section 6.1 (the “Employment

        Period”).

     

    2.3          Location of Work.  The Executive shall be based in the United States in West Orange, New Jersey.  However, the Executive agrees to undertake whatever domestic and worldwide travel is required by the
      Company.  The Executive shall not be required or permitted to relocate without the mutual, written consent of the Executive and the Company.

     

    
      
        3.            COMPENSATION

         

          

      

    

    3.1          Base Salary.  Subject to the provisions of Sections 5 and 6, the Executive shall be entitled to receive a base salary (the “Base Salary”) at a rate of $500,000 per annum, such rate to be
      effective as of January 1, 2021.  Such rate may be adjusted upwards, but not downwards, from time to time by the Board or the Committee, in their sole discretion.  The Base Salary shall be paid in equal installments on a biweekly basis or in
      accordance with the Company’s current payroll practices, less all required deductions.  The Base Salary shall be pro-rated for any period of service less than a full year.

     

    
      
        

    

    
    3.2          Annual Bonus.  Subject to the provisions of Sections 5 and 6, the Executive shall be eligible to earn an annual bonus for 2020 and each full calendar year thereafter
      during the Employment Period (the “Annual Bonus”), the amount of which shall be based upon performance targets or such other criteria that are determined by the Board or the Committee pursuant to the provisions of the Company’s Key Management
      Team Incentive Compensation Plan ( the “Incentive Plan”) in effect for the applicable calendar year.  The Company shall pay the Annual Bonus to the Executive no later than March 15th following the end of the applicable fiscal year.  The Annual
      Bonus shall be prorated for any year in which the Executive’s employment is terminated due to death or Disability, as defined in Appendix A.  If during the Employment Period the Executive’s employment is
      terminated by the Company (or any successor thereto) for Cause, as defined in Exhibit A, or the Executive resigns from his employment other than for Good Reason, as defined in Exhibit A, prior to the payout of any Annual Bonus due for a completed
      calendar, the Executive shall not receive such Annual Bonus.

     

    3.3          Reimbursement of Expenses.  The Company shall reimburse the Executive for reasonable travel and other business expenses incurred by him in the fulfillment of his duties hereunder upon presentation by
      the Executive of an itemized account of such expenditures, in accordance with Company practices.

     

    
      
        4.            EMPLOYEE BENEFITS

      

    

     

    

    4.1          General.  The Executive shall, during the Employment Period, be included, to the extent eligible thereunder, in all employee benefit plans, programs and arrangements (including, without limitation,
      any plans, programs or arrangements providing for retirement benefits, profit sharing, disability benefits, health and life insurance or vacation and paid holidays) that shall be established by the Company for, or made available to, its senior
      executives.  In addition, the Company shall furnish the Executive with coverage by the Company’s customary director and officer indemnification arrangements, subject to applicable law.

     

    4.2          Automobile.  During the Employment Period, the Company shall provide the Executive with an automobile for business and personal use and pay for associated costs, including automobile insurance,
      parking and fuel, in accordance with the Company’s practices as consistently applied to other key employees.

     

    
      
        5.            TERMINATION OF EMPLOYMENT

         

          

      

    

    5.1          Effect of an Involuntary Termination.  Subject to the provisions of Sections 6 and 9.5, if during the Employment Period there is an “Involuntary Termination” (as defined below) of the Executive’s
      employment, the Company shall pay to the Executive:

     

    
      (i)           an amount equal to two times the sum of (x) the Executive’s annual Base Salary, at a rate in effect at the date of such termination plus (y) the target amount of the
        Annual Bonus of the Executive for the year in which the Involuntary Termination occurs;

       

    

     

    
      2

      
        

    

    
      
        (ii)          all outstanding reasonable travel and other business expenses that he incurred as of the date of his termination;

         

        (iii)         an additional cash amount equal to the Company’s estimate of the employer portion of the premiums that would be necessary to continue the Executive’s health care
          coverage until the first anniversary of the date of such Involuntary Termination; provided, however, that if prior to payment of such cash amount the Executive becomes covered under another group health plan (which coverage, once
          obtained, must be promptly disclosed by the Executive to the Company), such cash amount shall be prorated to cover only the period from the date of the Executive’s Involuntary Termination until the date on which such alternate coverage starts;
          and

         

        (iv)         a prorated Annual Bonus for the year in which the Involuntary Termination occurs, calculated by multiplying (A) the Annual Bonus to which the Executive would have
          been entitled under Section 3.2 if his employment had continued through the end of such year by (B) a proration fraction the numerator of which is the number of days in such calendar year up to and including the date
          of the Executive’s Involuntary Termination and the denominator of which is 365.

         

      

    

     

    The Executive shall also be entitled to receive any other accrued compensation and benefits otherwise payable to him as of the date of his termination, including, without limitation, any Annual Bonus due for a completed
      calendar year.  All payments made under Sections 5.1(i), (ii) and (iii) above shall be made by the Company (or its successor) in a lump-sum amount on the 60th day following the Executive’s termination of employment, and payment made under Section
      5.1(iv) above shall be made by the Company (or its successor) in a lump-sum amount on the date that bonuses for the year in which the Executive’s Involuntary Termination occurs are paid generally to the Company’s senior executives (but no later than
      March 15th of the year following the year in which the Executive’s Involuntary Termination occurs).

     

    The Company shall not be required to make the payments and provide the benefits provided for under this Section 5.1 unless (1) the Executive executes and delivers to the Company, within sixty days following the Executive’s termination of
      employment, a Waiver and Release (relating to the Executive’s release of claims against the Company Group (as defined below) in the form provided by the Company, and the Waiver and Release has become effective and irrevocable in its entirety, and (2)
      the Executive remains in material compliance with the restrictive covenants set forth in Section 9 of this Agreement.  The Executive’s failure or refusal to sign the Waiver and Release (or the revocation of such Waiver and Release in accordance with
      applicable laws) or the Executive’s failure to materially comply with the restrictive covenants in Section 9 shall result in the forfeiture of the payments and benefits payable under this Section 5.1.

     

    For purposes of this Agreement, “Involuntary Termination” means the termination of the Executive’s employment (i) by the Company (or any successor thereto) without Cause, as defined in Appendix A, or (ii) by the Executive for Good Reason,
      as defined in Appendix A.

     

    
      3

      
        

    

    5.2          Effect of a Termination for Cause or Resignation without Good Reason.  Subject to the provisions of Sections 3.2 and 6, if during the Employment Period, the Executive’s employment is terminated by the
      Company (or any successor thereto) for Cause or the Executive resigns from his employment other than for Good Reason, the Company shall pay to the Executive, any (i) accrued but unpaid Base Salary earned through the date of his termination, (ii)
      unreimbursed expenses, plus (iii) accrued but unpaid employee benefits set forth in Section 4.1 above as determined in accordance with the provisions of the applicable employee benefit plans or programs of the Company.

     

    5.3          Effect of a Termination due to Death or Disability.  Subject to the provisions of Sections 3.2 and 6, if during the Employment Period, the Executive’s employment is terminated by the Company (or any
      successor thereto) due to death or Disability, as defined in Appendix A, the Company shall pay to the Executive, or if applicable his estate:

     

    
      
        (i)            accrued but unpaid Base Salary earned through the date of his termination and any Annual Bonus due but not yet paid for a completed calendar year;

      

       

      

    

    
      
        (ii)           a prorated Annual Bonus for the year in which the termination of employment occurs, calculated by multiplying (A) the Executive’s target Annual Bonus for that year by (B) a proration
          fraction the numerator of which is the number of days in such calendar year up to and including the date of the Executive’s termination of employment and the denominator of which is 365;

      

       

      

    

    
      
        (iii)         all outstanding reasonable travel and other business expenses that the Executive incurred as of the date of his termination; and

      

       

      

    

    
      
        (iv)          accrued but unpaid employee benefits set forth in Section 4.1 above as determined in accordance with the provisions of the applicable employee benefit plans or programs of the Company.

      

    

     

    

    In addition, upon the Executive’s termination of employment due to death or Disability, all outstanding stock options and restricted stock awarded to the Executive shall become fully vested, and stock options shall become immediately exercisable
      and will remain exercisable for one year from the date of termination (or, if earlier, until the stock option’s normal expiration date); provided, however, that if the applicable stock option award specifically provides for a longer
      post-employment period to exercise such option, such longer period shall apply.

     

    
      
        6.            EFFECT OF A CHANGE IN CONTROL

         

          

      

    

    6.1          New Term of Employment.  Notwithstanding anything to the contrary in this Agreement, upon the occurrence of a Change in Control, as defined in Appendix A, during the Employment Period, the Company (or
      its successor) shall renew this Agreement for a period of two years commencing on the date of the Change in Control and ending on the second anniversary of the date of the Change in Control.

     

    
      4

      
        

    

    6.2          Acceleration of Equity Awards.  Notwithstanding anything to the contrary in any of the Equity Award Documents, as defined in Appendix A, upon a Change in Control, all outstanding stock options and
      restricted stock granted by the Company or any of its affiliates to the Executive shall become fully vested, and stock options shall become immediately exercisable, on the date of the Change in Control.

     

    
      
        7.            REDUCTION OF PAYMENTS

         

          

      

    

    If any amounts due to the Executive under this Agreement and any other agreement, plan or arrangement of or with the Company or any of its affiliates constitute a “parachute payment,” as such term is
      defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), and the amount of the parachute payment, reduced by all federal, state and local taxes applicable thereto,
      including the excise tax imposed pursuant to Section 4999 of the Code, is less than the amount the Executive would receive if he was paid three times his “base amount”, as defined in Section 280G(b)(3) of the Code, less $1.00, reduced by all federal,
      state and local taxes applicable thereto, then the aggregate of the amounts constituting the parachute payment will be reduced (or returned by the Executive if it has already been paid to him) to an amount that will equal three times the Executive’s
      base amount less $1.00.  Any determination to be made with respect to this Section 7 shall be made by an accounting firm jointly selected by the Company and the Executive and paid for by the Company, and which may be the Company’s independent
      auditors.

     

    
      
        8.            NO ADDITIONAL RIGHTS

         

          

      

    

    The Executive shall have no right to receive any compensation or benefits upon his termination or resignation of employment, except (i) as expressly set forth in Sections 5 and 6 above, where applicable, or (ii) as
      determined in accordance with the provisions of the employee benefit plans or programs of the Company.

     

    
      
        9.            RESTRICTIVE COVENANTS

         

          

      

    

    9.1          Noncompetition.  During the term of the Executive’s employment with the Company (or any successor thereto) and continuing for two years thereafter, the Executive shall not, without the prior written
      consent of the Company, directly or indirectly, own, manage, operate, join, control, or participate in the ownership, management, operation or control of, or be employed by or connected in any manner with, any Competing Business, whether for
      compensation or otherwise;  provided, however, that the Executive shall be permitted to hold, directly or indirectly, less than 1% of any class of securities of any entity that is listed on a national securities exchange or on the
      NASDAQ National Market System.  Notwithstanding the foregoing, this Section 9.1 shall cease to apply upon the termination of the Executive’s employment with the Company (or any successor thereto) resulting from an Involuntary Termination.  For
      purposes of this Agreement, “Competing Business” means any business within the United States that involves for-profit, post-secondary education.

     

    
      5

      
        

    

    9.2          Nonsolicitation.  During the term of the Executive’s employment with the Company (or any successor thereto) and continuing for one year thereafter, the Executive shall not, without the prior written
      consent of the Company, directly or indirectly, as a sole proprietor, member of a partnership, stockholder, investor, officer or director of a corporation, or as an employee, associate, consultant or agent of any person, partnership, corporation or
      other business organization or entity other than the Company or any of its subsidiaries or affiliates (the “Company Group”) (i) solicit or endeavor to entice away from any member of the Company Group, any person or entity who is, or was on the
      date of this Agreement, employed by, or serving as a key consultant of, any member of the Company Group or (ii) solicit or endeavor to entice away from any member of the Company Group, any person or entity who is, or was on the date of this
      Agreement, a customer or client (or reasonably anticipated to become a customer or client) of any member of the Company Group.

     

    9.3          Confidentiality.  The Executive shall not at any time, except in performance of his obligations to the Company Group under the provisions of this Agreement and as an employee of the Company, directly
      or indirectly, disclose or use any secret or protected information that he may learn or has learned by reason of his association with any member of the Company Group.  The term “protected information” includes trade secrets and confidential and
      proprietary business information of the Company Group, including, but not limited to, customers (including potential customers), sources of supply, processes, methods, plans, apparatus, specifications, materials, pricing information, intellectual
      property (including applications and rights in discoveries, inventions or patents), internal memoranda, marketing plans, contracts, finances, personnel, research and internal policies, but shall exclude any information which (i) is or becomes
      available to the public or is generally known in the industry or industries in which the Company Group operates other than as a result of disclosure by the Executive in violation of this Section 9.3 or (ii) the Executive is required to disclose under
      any applicable laws, regulations or directives of any government agency, tribunal or authority having jurisdiction in the matter or under subpoena or other process of law.

     

    9.4          Exclusive Property.  The Executive confirms that all protected information is and shall remain the exclusive property of the Company Group.  All business records, papers and documents kept or made by
      the Executive relating to the business of the Company shall be and remain the property of the Company Group.

     

    9.5          Compliance with Restrictive Covenants.  Without intending to limit any other remedies available to the Company Group and except as required by law, in the event that the Executive breaches or
      threatens to breach any of the covenants set forth in this Section 9, (i) the Company Group shall be entitled to seek a temporary restraining order and/or a preliminary or permanent injunction restraining the Executive from engaging in activities
      prohibited by this Section 9 or such other relief as may be required to enforce any of such covenants and (ii) all obligations of the Company to make payments and provide benefits under this Agreement shall immediately cease.

     

    
      
        10.          ARBITRATION

         

          

      

    

    10.1        General.  Subject to Section 9.5 above, any dispute or controversy arising under or in connection with this Agreement that cannot be mutually resolved by the Executive and the Company shall be settled
      exclusively by arbitration in West Orange, New Jersey before three arbitrators of exemplary qualifications and stature.  The Executive and the Company shall each select one arbitrator.  The arbitrators selected by the Executive and the Company shall
      jointly select the third arbitrator.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The Executive and the Company hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating
      specific enforcement of the provisions of this Agreement.

     

    
      6

      
        

    

    10.2         Associated Costs.  The cost of the arbitration shall be borne by the parties in the manner determined by the arbitrators.  If, however, the dispute concerns contractual rights that arise in the event
      of or subsequent to a Change in Control, the costs of arbitration (and any reasonable attorney’s fees incurred by the Executive) shall be borne by the Company, unless the arbitrators determine that the Executive commenced such arbitration on
      unfounded or unreasonable grounds.

     

    
      
        11.          SECTION 409A OF THE CODE.

      

    

     

    

    11.1         General.  This Agreement is intended to meet the requirements of Section 409A of the Code, and shall be interpreted and construed consistent with that intent.

     

    11.2         Deferred Compensation.  Notwithstanding any other provision of this Agreement, to the extent that the right to any payment (including the provision of benefits) hereunder provides for the “deferral
      of compensation” within the meaning of Section 409A(d)(1) of the Code, the payment shall be paid (or provided) in accordance with the following:

     

    
      
        (i)           If the Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code on the date of the Executive’s termination of employment,
          then no such payment shall be made or commence during the period beginning on the date of the Executive’s termination of employment and ending on the date that is six months and one day following the Executive’s termination of employment or, if
          earlier, on the date of the Executive’s death.

         

        (ii)          Payments with respect to reimbursements of expenses shall be made in accordance with Company policy and in no event later than the last day of the calendar year
          following the calendar year in which the relevant expense is incurred.  No reimbursement during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year, except, in each case, to the extent that the right
          to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A of the Code.

         

        (iii)          The Company shall not accelerate any payment or the provision of any benefits under this Agreement or make or provide any such payment or benefits if such payment
          or provision of such benefits would, as a result, be subject to tax under Section 409A of the Code.  If, in the good faith judgment of the Company, any provision of this Agreement could cause the Executive to be subject to adverse or unintended
          tax consequences under Section 409A of the Code, such provision shall be modified by the Company in its sole discretion to maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the
          requirements of Section 409A of the Code.  It is understood that each installment is a separate payment, and that the timing of payment is within the control of the Company.

         

      

    

     

    
      7

      
        

    

     

    
      
        
          
            (iv)         The provisions of this Section 11 shall apply notwithstanding any provisions of this Agreement related to the timing of payments following the Executive’s termination of employment

             

            

            12.          MISCELLANEOUS

          

        

      

    

     

    

    12.1        Communications.  All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered, or on the fifth
      business day after mailed if delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested), to the relevant party at the following address (or at such other address for a party as shall be specified by
      like notice, except that notices of change of address shall be effective upon receipt):

     

    	
            if to the Company:

          	

          
	 	 
	

          	
            200 Executive Drive, Suite 340

          
	

          	
            West Orange, New Jersey  07052

          
	

          	
            Attention:  General Counsel

          

    

    

    	
            if to the Executive:

          	

          
	 	 
	

          	
            200 Executive Drive, Suite 340

          
	

          	
            West Orange, New Jersey  07052

          

     

    12.2        Waiver of Breach; Severability.  (a)  The waiver by the Executive or the Company of a breach of any provision of this Agreement by the other party hereto shall not operate or be construed as a waiver
      of any subsequent breach by either party.

     

    (b)  The parties hereto recognize that the laws and public policies of various jurisdictions may differ as to the validity and enforceability of covenants similar to those set forth herein.  It is the intention of the
      parties that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and policies of each jurisdiction in which enforcement may be sought, and that the unenforceability (or the modification to conform to such
      laws or policies) of any provisions hereof shall not render unenforceable, or impair, the remainder of the provisions hereof.  Accordingly, if at the time of enforcement of any provision hereof, a court of competent jurisdiction holds that the
      restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope, or geographic area reasonable under such circumstances shall be substituted for the stated period, scope or
      geographical area and that such court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and geographical area permitted by law.

     

    12.3        Assignment; Successors.  No right, benefit or interest hereunder shall be assigned, encumbered, charged, pledged, hypothecated or be subject to any setoff or recoupment by the Executive.  This
      Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company.

     

    12.4        Entire Agreement.  This Agreement and the Equity Award Documents represent the entire agreement of the parties and shall supersede any and all previous contracts, arrangements or understandings
      between the Company and the Executive relating to the subject matter hereof, including, without limitation, the Prior Agreement.  This Agreement may be amended at any time by mutual written agreement of the parties hereto.

     

    
      8

      
        

    

    12.5        Withholding.  The payment of any amount pursuant to this Agreement shall be subject to applicable withholding and payroll taxes, and such other deductions as may be required under the Company’s
      employee benefit plans, if any.

     

    12.6        Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New Jersey.

     

    12.7        Headings.  The headings in this Agreement are for convenience only and shall not be used to interpret or construe any of its provisions.

     

    12.8        Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

     

    
      9

      
        

    

    IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and the Executive has hereunto set his hand as of the day and year first written above.

     

    	
            LINCOLN EDUCATIONAL SERVICES CORPORATION

          
	

          	

          	

          
	
            By:

          	
            /s/ James J. Burke, Jr.

          	

          

    	
            Name:

          	
            James J. Burke, Jr.

          	

          
	
            Title:

          	
            Chairman of Compensation Committee

          	

          

    

    

    	
            EXECUTIVE

          	

          
	 	 
	
            /s/Scott M. Shaw

          	

          
	
            Scott M. Shaw

          	

          

    

    

    
      10

      
        

    

    
     APPENDIX A

     

    “Cause” shall mean, with respect to the Executive, the following:

     

    
      	
              (a)

            	
              prior to a Change in Control, (i) the Executive’s willful failure to perform the duties of his employment in any material respect, (ii) malfeasance or gross negligence in the performance of the Executive’s duties of employment, (iii) the
                Executive’s conviction of a felony under the laws of the United States or any state thereof (whether or not in connection with his employment), (iv) the Executive’s intentional or reckless disclosure of protected information respecting any
                member of the Company Group’s business to any individual or entity which is not in the performance of the duties of his employment, (v) the Executive’s commission of an act or acts of sexual harassment that would normally constitute grounds
                for termination, or (vi) any other act or omission by the Executive (other than an act or omission resulting from the exercise by the Executive of good faith business judgment), which is materially injurious to the financial condition or
                business reputation of any member of the Company Group; provided, however, that in the case of (i) and (ii) above, the Executive shall not be deemed to have been terminated for cause unless he has received written notice of
                the alleged basis therefor from the Company, and fails to remedy the matter within 30 days after he has received such notice, except that no such “cure opportunity” shall be required in the case of two separate episodes occurring within any
                12-month period that give the Company the right to terminate for cause for such reason; or

            

       

      

    

    
      	
              (b)

            	
              on or after a Change in Control, (i) the Executive’s willful failure to perform the duties of his employment in any material respect, (ii) malfeasance or gross negligence in the performance of the Executive’s duties of employment, (iii)
                the Executive’s conviction of a felony under the laws of the United States or any state thereof (whether or not in connection with his employment), or (iv) the Executive’s intentional or reckless disclosure of protected information
                respecting any member of the Company Group’s business to any individual or entity which is not in the performance of the duties of his employment; provided, however, that in the case of (i) and (ii) above, the Executive
                shall not be deemed to have been terminated for cause unless he has received written notice of the alleged basis therefor from the Company, and fails to remedy the matter within 30 days after he has received such notice, except that no such
                “cure opportunity” shall be required in the case of two separate episodes occurring within any 12-month period that give the Company the right to terminate for cause for such reason.

            

    

     

    “Change in Control” shall mean:

     

    
      A-1

      
        

    

    
      	
              (a)

            	
              when a “person” (as defined in Section 3(a)(9) of the Exchange Act), including a “group” (as defined in Section 13(d) and 14(d) of the Exchange Act), either directly or indirectly becomes the “beneficial owner” (as defined in Rule 13d-3
                under the Exchange Act) of 25% or more of either (i) the then outstanding Common Stock, or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors; provided, however, that the following acquisitions shall not constitute a Change in Control:  (1) any acquisition directly from the Company; (2) any acquisition
                by the Company; or (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company;

            

       

      

    

    
      	
              (b)

            	
              when, during any period of 24 consecutive months during the Employment Period, the individuals who, at the beginning of such period, constitute the Board (the “Company Incumbent Directors”) cease for any reason other than death to
                constitute at least a majority thereof;  provided, however, that a director who was not a director at the beginning of such 24-month period shall be deemed to be a Company Incumbent Director if such director was elected by,
                or on the recommendation of or with the approval of at least two-thirds of the directors of the Company, who then qualified as Company Incumbent Directors;

            

       

      

    

    
      	
              (c)

            	
              when the stockholders of the Company approve a reorganization, merger or consolidation of the Company without the consent or approval of a majority of the Company Incumbent Directors;

            

       

      

    

    
      	
              (d)

            	
              consummation of a merger, amalgamation or consolidation of the Company with any other corporation, the issuance of voting securities of the Company in connection with a merger, amalgamation or consolidation of the Company or sale or
                other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation (each, a “Business Combination”), unless, in each case of a Business Combination, immediately following
                such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Common Stock outstanding immediately prior to such Business Combination beneficially own, directly or indirectly, more
                than 50% of the then outstanding shares of common stock and 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from
                such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in
                substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Common Stock; or

            

       

      

    

    
      	
              (e)

            	
              a complete liquidation or dissolution of the Company or the sale or other disposition of all or substantially all of the assets of the Company.

            

    

    

    

    
      A-2

      
        

    

    “Disability” shall mean the inability of the Executive to perform substantially his duties and responsibilities to the Company or any of its subsidiaries by reason of a physical or mental disability or infirmity (a) for a continuous period
      of six months or (b) at such earlier time as the Executive submits medical evidence of such disability to the reasonable satisfaction of the Committee that the Executive has a physical or mental disability or infirmity that shall likely prevent him
      from substantially performing his duties and responsibilities for six months or longer.  The date of such Disability shall be on the last day of such six-month period or the day on which the Committee determines that the Executive has a physical or
      mental disability or infirmity as provided in clause (b) herein.

     

    “Good Reason” shall mean, with respect to the Executive, the occurrence of any of the following (without his written consent):  (a) a reduction in the Executive’s Base Salary or target Annual Bonus; (b) an adverse change in the Executive’s
      title, authority, duties, responsibilities or reporting lines as specified in Section 2.1 of this Agreement; (c) a failure by the Company to pay material compensation when due in connection with the Executive’s employment; or (d) a material breach of
      this Agreement by the Company; provided, however, that, if any such Good Reason is reasonably susceptible to cure, then the Executive shall not terminate his employment hereunder unless the
      Executive first provides the Company with written notice of his intention to terminate and of the grounds for such termination, and the Company has not, within 10 business days following receipt of such written notice, cured such Good Reason.

     

    “Equity Award Documents” shall mean (a) any option agreements, restricted stock agreements or other equity award agreements under the Company’s 2020 Long-Term Incentive Plan and (b) any stock pledge agreement or promissory note relating to
      the Executive’s stock options, shares of Company common stock underlying such options or restricted stock.

     

    

    

    A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}]]