Document:

Exhibit 10.97

 

EXECUTION VERSION

 

AMENDMENT TO CREDIT AGREEMENT

 

This Amendment (“Amendment”), dated as of December 29, 2014, is entered into by and among (i) Clean Energy Tranche A LNG Plant, LLC (the “Tranche A Borrower”), (ii) Clean Energy Tranche B LNG Plant, LLC (the “Tranche B Borrower” and, together with the Tranche A Borrower, collectively the “Borrowers”), (iii) the financial institutions from time to time party to the Credit Agreement referred to below as Lenders (the “Lenders”) and (iv) General Electric Capital Corporation, as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral Agent (in such capacity, the “Collateral Agent”).  Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement referred to below.

 

RECITALS

 

WHEREAS, reference is made to that certain Credit Agreement, dated as of November 7, 2012, by and among the Borrowers, the Lenders, the Administrative Agent and the Collateral Agent (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrowers, the Lenders, the Administrative Agent and the Collateral Agent now wish to amend the Credit Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the covenants and obligations of the parties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties hereto hereby agrees as follows:

 

AMENDMENT

 

1.                                      Amendments to Section 1.1 of the Credit Agreement.  Section 1.1 of the Credit Agreement is amended as follows:

 

(a) The definition of “Construction Agreements” is deleted in its entirety and replaced with the following:

 

““Construction Agreements” shall mean, collectively, (i) any GE Equipment Supply Agreement and (ii) any other agreement to which any Finance Party or any Affiliate of any Finance Party is now or hereafter becomes a party providing for the design, development, construction, testing or start-up of the Projects.”

 

(b) The definition of “Contractors” is deleted in its entirety and replaced with the following:

 

““Contractors” shall mean, collectively, any GE Equipment Supplier and each other party to a Construction Agreement (other than a Borrower).”

 

(c) The definitions of “Facility A Date Certain” and “Facility B Date Certain” are amended by replacing “2016” in both such definitions with “2018”.

 

1

 

(d)  The definitions of “GE Contractor” and “GE EPC Contracts” are deleted in their entirety.

 

(e)  The following definitions are added in alphabetical order:

 

““GE Equipment Supplier” shall mean GE Oil & Gas, Inc. or any Affiliate thereof, in each case to the extent a party to a GE Equipment Supply Agreement.”

 

““GE Equipment Supply Agreement” shall mean any contract or agreement relating to the purchase, sale, supply, construction, testing, operation, servicing, maintenance, repair, financing or use of any equipment or products supplied, or other services rendered in relation thereto, to the Projects by GE Oil & Gas, Inc. or any Affiliate thereof.”

 

2.                                      Amendment to Section 2.13 of the Credit Agreement.  Section 2.13 of the Credit Agreement is amended by replacing “2014” in each of Section 2.13(c) of the Credit Agreement and Section 2.13(d) of the Credit Agreement with “2016”.

 

3.                                      Amendments to Section 3.2 of the Credit Agreement.  Section 3.2 of the Credit Agreement is amended as follows:

 

(a)  Section 3.2(j), clause (i) of the Credit Agreement is deleted in its entirety and replaced with the following:

 

“(i) one or more GE Equipment Supply Agreements with minimum supply and down payment terms satisfactory to the Administrative Agent, one or more engineering, procurement and construction contracts, and such other Construction Agreements, in each case, as are determined by the Project Engineer and the Administrative Agent in their reasonable discretion to be necessary or desirable to complete the design, development, construction, testing and start-up of the applicable Project,”

 

(b)  Section 3.2(l) of the Credit Agreement is deleted in its entirety and replaced with the following:

 

“(l)                               Equity.  The Administrative Agent shall have received either (i) the original Tranche A Equity Letters of Credit or the Tranche B Equity Letters of Credit, as applicable (as such terms are defined in the Equity Contribution Agreement) or (ii) satisfactory evidence that Equity Contributions have been deposited in the Tranche A Construction Account or the Tranche B Construction Account, as applicable, in an aggregate amount equal to one-third (1/3) of the Tranche A Construction Loan Commitments or the Tranche B Construction Loan Commitments, as applicable; provided, however, that for the purposes of this clause (ii), Equity Contributions for each Tranche shall include the allocable portion of all Project Costs directly paid by the Sponsor in connection with the Projects prior to the applicable Initial Funding Date (including without limitation any payments made by the Sponsor with respect to any letter of credit or the issuance thereof in connection with the Projects) to the extent the same have been approved by the Administrative Agent in its reasonable discretion.”

 

2

 

(c)  A new Section 3.2(o) is added to the Credit Agreement as follows:

 

“(o)                           Market Feasibility.  The Administrative Agent shall have received evidence, in form and substance satisfactory to each Lender in its sole discretion, demonstrating the economic and market feasibility of the applicable Project, which evidence may be in the form of a satisfactory market report from a consultant appointed by the Required Lenders and reasonably acceptable to such Borrower.”

 

4.                                      Amendments to Section 3.3 of the Credit Agreement. Section 3.3 of the Credit Agreement is amended by deleting Section 3.3(g) of the Credit Agreement in its entirety and replacing it with the following:

 

“(g)                            Construction Budget; Drawdown Schedule; Payments to GE Equipment Supplier.  Such Construction Loan shall be in accordance with the applicable Construction Budget and the applicable Drawdown Schedule.  The Administrative Agent shall have received evidence (which may be in the form of a Construction Account Withdrawal Certificate (as defined in the Collateral Account Agreement) pursuant to and in accordance with Section 4.1(c) of the Collateral Account Agreement) demonstrating that any payments of Project Costs to be made from such Construction Loan (and previously made from Construction Loans) shall be (and have been) applied (x) first, to the payments of any amounts due and payable to any GE Equipment Supplier and (y) second, to the payment of other Project Costs.”

 

5.                                      Amendments to Section 3.4(g) of the Credit Agreement.  Section 3.4(g) of the Credit Agreement is amended as follows:

 

(a) “1.25” is deleted from the sixth (6th) line and replaced with “1.15”.

 

(b) “twenty percent (20%)” is deleted from the seventh (7th) line and replaced with “thirty percent (30%)”.

 

6.                                      Amendment to Annex III to the Credit Agreement.  The Credit Agreement is amended by deleting in its entirety Annex III thereto and replacing it with the Annex III attached hereto.

 

7.                                      Effectiveness.  This Amendment shall become effective only upon (i) the receipt by the Administrative Agent of counterpart signature pages to this Amendment duly executed by the Borrowers and each of the Required Lenders and (ii) payment by or on behalf of the Borrowers of all reasonable fees and expenses of counsel to the Administrative Agent incurred in connection with this Amendment (the “Effective Date”).

 

8.                                      Representations and Warranties.  In order to induce the Lenders to enter into this Amendment, the Borrowers represent and warrant to the Administrative Agent and each Lender that the following statements are true and correct in all material respects as of the Effective Date:

 

a.                                      Power and Authority.  Each Borrower has all requisite power and authority to enter into this Amendment and to carry out the transactions contemplated hereby.

 

3

 

b.                                      Authorization of Agreements.  The execution and delivery of this Amendment by each Borrower has been duly authorized by all necessary action on the part of such Borrower.

 

c.                                       Binding Obligation.  This Amendment has been duly executed and delivered by each Borrower and is the legally valid and binding obligation of such Borrower, enforceable against such Borrower in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

d.                                      Absence of Default.  No event has occurred and is continuing that would constitute an Event of Default or a Default.

 

e.                                       Incorporation of Representations and Warranties from Credit Agreement. The representations and warranties contained in Article IV of the Credit Agreement are and will be true and correct in all material respects (provided that those representations and warranties that are qualified by materiality or “Material Adverse Effect” shall be true and correct in all respects) on and as of the Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date.

 

9.                                      Change to Borrowers’ Notice Address.  In accordance with Section 11.3 of the Credit Agreement, each Borrower designates the applicable address set forth on the signature page hereto as the address, facsimile number or email address for Communications to such Borrower.

 

10.                               Direction.  By its signature below, each Lender hereby instructs the Administrative Agent to enter into and agree to the terms of this Amendment.

 

11.                               Terms and Conditions of the Credit Agreement.  On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Finance Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby.  Other than as expressly set forth in this Amendment, all of the terms and conditions of the Credit Agreement shall remain in full force and effect and shall apply to this Amendment; provided that to the extent there is a conflict between the terms of this Amendment and the terms of the Credit Agreement, the terms of this Amendment shall control to the extent of such conflict.

 

12.                               Finance Document.  This Amendment shall constitute a Finance Document.

 

13.                               No Waiver or Release.  This Amendment shall not constitute a waiver, release, amendment or modification by the Lenders or any other party hereto of any covenant, right, remedy, Collateral, Default or Event of Default under the Credit Agreement or any of the other Finance Documents, except to the extent of the amendment expressly set forth herein, and all

 

4

 

such provisions and requirements of the Credit Agreement and the other Finance Documents shall remain unmodified and in full force and effect.  The Lenders hereby reserve all rights, remedies, privileges and powers available to them under the Credit Agreement, the other Finance Documents, applicable Law or otherwise.  No failure on the part of the Lenders to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power.  Each and every right, remedy and power allowed to the Lenders by Law or under the Finance Documents or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Lenders from time to time.

 

14.                               Headings.  Section and Subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

 

15.                               Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

16.                               Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which together constitute one and the same instrument.

 

17.                               Entire Agreement.  This Amendment and any agreement, document, instrument, schedule or exhibit referred to herein integrate all the terms and conditions mentioned herein or incidental hereto and supersede all oral negotiations and prior writings in respect of the subject matter hereof.

 

*                                                                                         *                                                                                         *

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Amendment as of the date first above written.

 

 

	
Notice Address:
    	
CLEAN ENERGY TRANCHE A LNG   PLANT, LLC, as Borrower
    
	
 
    	
 
    
	
Address: Clean Energy   Tranche A LNG

Plant, LLC

c/o Clean Energy Fuels   Corp.

4675 MacArthur Court,   Suite 800

Newport Beach, CA 92660
    	
 
    
	
Attention: Nate Jensen
    	
 
    
	
Telephone No.: (949)   437-1000
    	
By:
    	
/s/ Andrew J.   Littlefair
    
	
Telecopier No.: (949)   424-8285
    	
 
    	
Name:
    	
Andrew J. Littlefair
    
	
Email:   njensen@cleanenergyfuels.com
    	
 
    	
Title:
    	
President &   Chief Executive Officer
    

 

 

	
Notice Address:
    	
CLEAN ENERGY TRANCHE B LNG   PLANT, LLC, as Borrower
    
	
 
    	
 
    
	
Address: Clean Energy   Tranche B LNG

Plant, LLC

c/o Clean Energy Fuels   Corp.

4675 MacArthur Court,   Suite 800

Newport Beach, CA 92660
    	
 
    
	
Attention: Nate Jensen
    	
 
    
	
Telephone No.: (949)   437-1000
    	
By:
    	
/s/ Andrew J.   Littlefair
    
	
Telecopier No.: (949)   424-8285
    	
 
    	
Name:
    	
Andrew J. Littlefair
    
	
Email:   njensen@cleanenergyfuels.com
    	
 
    	
Title:
    	
President &   Chief Executive Officer
    

 

 

Signature Page to Amendment to Credit Agreement

 

 

	
 
    	
GENERAL ELECTRIC CAPITAL   CORPORATION, as Administrative Agent and Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyson Yates
    
	
 
    	
 
    	
Name:
    	
Tyson Yates
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

 

	
 
    	
GENERAL ELECTRIC CAPITAL   CORPORATION, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyson Yates
    
	
 
    	
 
    	
Name:
    	
Tyson Yates
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

Signature Page to Amendment to Credit Agreement

 

 

Annex III

 

TERM LOAN AMORTIZATION

 

	
Quarterly Dates
   following the
   applicable
   Conversion Date
    	
 
    	
Percentage
   Amortization
    
	
1
    	
 
    	
0.46%
    
	
2
    	
 
    	
0.47%
    
	
3
    	
 
    	
0.47%
    
	
4
    	
 
    	
0.47%
    
	
5
    	
 
    	
0.47%
    
	
6
    	
 
    	
0.47%
    
	
7
    	
 
    	
0.47%
    
	
8
    	
 
    	
2.78%
    
	
9
    	
 
    	
2.78%
    
	
10
    	
 
    	
2.78%
    
	
11
    	
 
    	
2.78%
    
	
12
    	
 
    	
2.78%
    
	
13
    	
 
    	
2.78%
    
	
14
    	
 
    	
2.78%
    
	
15
    	
 
    	
2.78%
    
	
16
    	
 
    	
2.78%
    
	
17
    	
 
    	
2.78%
    
	
18
    	
 
    	
2.78%
    
	
19
    	
 
    	
2.78%
    
	
20
    	
 
    	
2.78%
    
	
21
    	
 
    	
2.78%
    
	
22
    	
 
    	
2.78%
    
	
23
    	
 
    	
2.78%
    
	
24
    	
 
    	
2.78%
    
	
25
    	
 
    	
2.78%
    
	
26
    	
 
    	
2.78%
    
	
27
    	
 
    	
2.78%
    
	
28
    	
 
    	
2.78%
    
	
29
    	
 
    	
2.78%
    
	
30
    	
 
    	
2.78%
    
	
31
    	
 
    	
2.78%
    
	
Maturity Date Payment
    	
 
    	
30.00%Exhibit 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT, dated as of December 29, 2014 (this “Agreement”), is entered into among LINCOLN EDUCATIONAL SERVICES CORPORATION, a New Jersey corporation (the “Borrower”), the Guarantors party hereto, the Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated as of April 5, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

WHEREAS, the parties hereto have agreed to amend the Credit Agreement as provided herein.

NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.                    Estoppel, Acknowledgement and Reaffirmation. The Loan Parties hereby acknowledge and agree that, as of December 24, 2014, the aggregate outstanding principal amount of the Revolving Loans was $0; and the L/C Obligations were $7,062,625.00, each of which amounts constitutes a valid and subsisting obligation of the Loan Parties to the Lenders that is not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind. The Loan Parties hereby acknowledge the Loan Parties’ obligations under the respective Loan Documents to which they are party, reaffirm that each of the liens and security interests created and granted in or pursuant to the Collateral Documents is valid and subsisting and agree that this Agreement shall in no manner impair or otherwise adversely affect such obligations, liens or security interests, except as explicitly set forth herein.

2.                    Amendments.

(a)                 Section 2.05(b)(v) of the Credit Agreement is hereby amended to read as follows:

(v)            If at any time after the earlier of (1) the date that the Aggregate Revolving Commitments have been reduced to at least $20,000,000 and (2) January 15, 2015, the aggregate amount of cash and Cash Equivalents held or controlled by the Loan Parties exceeds $15,000,000 for a period of longer than two (2) consecutive Business Days, the Borrower shall on the next Business Day prepay the Loans, without a corresponding reduction to the Aggregate Revolving Commitments, in the amount necessary to (A) eliminate such excess or (B) reduce the outstanding principal balance of Loans to $0, whichever amount is less.

(b)                The final paragraph of Section 2.06 of the Credit Agreement is hereby amended to read as follows:

 

1

The Aggregate Revolving Commitments shall automatically and permanently be reduced to $20,000,000 on January 15, 2015. In addition, (i) upon the Disposition of any Mortgaged Property and unless otherwise agreed in writing by the Required Lenders, the Aggregate Revolving Commitments shall automatically and permanently be reduced by an amount equal to the Net Cash Proceeds from such Disposition, and (ii) upon the incurrence of any Indebtedness (other than the Obligations) that is secured by any Mortgaged Property (including, for clarification, any such property the Mortgage upon which is released in connection with the incurrence of such Indebtedness) and unless otherwise agreed in writing by the Required Lenders, the Aggregate Revolving Commitments shall automatically and permanently be reduced by an amount equal to the net cash proceeds from the incurrence of such Indebtedness; provided that in each case described in clause (i) or (ii), if as a result of such reduction the L/C Obligations would exceed the Aggregate Revolving Commitments, the Borrower shall immediately Cash Collateralize the L/C Obligations in an amount necessary to eliminate such excess with the Minimum Collateral Amount.

(c)                 Section 5.02(d) of the Credit Agreement is hereby amended to read as follows:

(d)            With respect to any Credit Extension to be made after January 15, 2015, immediately after giving effect to the requested Credit Extension (excluding L/C Credit Extensions, provided that the balance of the Revolving Credit Loans is $0.00), the aggregate amount of cash and Cash Equivalents of the Loan Parties shall not exceed $10,000,000.

(d)                 The final sentence of Section 7.14(b) of the Credit Agreement is hereby amended to read as follows:

Notwithstanding the foregoing, to the extent that any of the owned real properties located at (i) 2915 Alouette Drive, Grand Prairie, Texas, (ii) 2400 and 2410 Metrocentre Blvd, West Palm Beach, Florida, (iii) 1126 53rd Court North, West Palm Beach, Florida or (iv) 1524 Gallatin Road, Nashville, Tennessee are subject to Liens securing Indebtedness permitted by Section 8.03(h), the Loan Parties shall not be required to cause any such encumbered real property to be subject to Mortgages or otherwise deliver Real Estate Security Documents with respect thereto.

(e)                 Section 7.15 is of the Credit Agreement is hereby amended to read as follows:

Until January 15, 2015, the proceeds of all Borrowings made on and after December 30, 2014 shall be maintained on deposit at Bank of America, subject to the control of the Administrative Agent.

(f)            The “.” at the end of Section 8.01(l) of the Credit Agreement is hereby replaced with “; and”, and a new Section 8.01(m) is hereby added to the Credit Agreement to read as follows:

(m)            Liens on any combination of the following real properties securing Indebtedness permitted by Section 8.03(h): (i) 2915 Alouette Drive, Grand Prairie, Texas, (ii) 2400 and 2410 Metrocentre Blvd, West Palm Beach, Florida, (iii) 1126 53rd Court North, West Palm Beach, Florida or (iv) 1524 Gallatin Road, Nashville, Tennessee.

(g)                 The “.” at the end of Section 8.03(g) of the Credit Agreement is hereby replaced with “; and”, and a new Section 8.03(h) is hereby added to the Credit Agreement to read as follows:

(h)            Indebtedness in an original principal amount of not less than $30,000,000 secured by any combination of the following real properties: (i) 2915 Alouette Drive, Grand Prairie, Texas, (ii) 2400 and 2410 Metrocentre Blvd, West Palm Beach, Florida, (iii) 1126 53rd Court North, West Palm Beach, Florida or (iv) 1524 Gallatin Road, Nashville, Tennessee.

 

2

(h)                 Section 10.10(a) of the Credit Agreement is hereby amended to read as follows:

(a)            to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon termination of the Aggregate Revolving Commitments and payment in full of the Obligations (other than (A) contingent indemnification obligations or similar obligations not then due and (B) obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the applicable provider thereof shall have been made) and the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made), (ii) that is transferred or to be transferred as part of or in connection with any Disposition permitted hereunder or under any other Loan Document or any Involuntary Disposition, (iii) subject to compliance by the Borrower with Sections 2.05(b) and 2.06, in connection with the incurrence of Indebtedness pursuant to Section 8.03(h) or (iv) as approved in accordance with Section 11.01;

3.                    Effectiveness; Conditions Precedent. This Agreement shall be effective when all of the conditions set forth in this Section 3 shall have been satisfied:

(a)            receipt by the Administrative Agent of copies of this Agreement duly executed by the Borrower, the Guarantors and the Required Lenders;

(b)            receipt by the Administrative Agent, for the account of each Lender executing this Agreement, a fee in an amount equal to 0.25% of such Lender's Revolving Commitment; and

(c)            receipt by the Administrative Agent of all other agreed fees and expenses.

4.                   Expenses. The Loan Parties agree to reimburse the Administrative Agent for all reasonable out-of-pocket costs and expenses of the Administrative Agent incurred in connection with the preparation, execution and delivery of this Agreement, including without limitation the reasonable fees and expenses of Moore & Van Allen PLLC.

5.                   Ratification of Credit Agreement. Each Loan Party acknowledges and consents to the terms set forth herein and agrees that this Agreement does not impair, reduce or limit any of its obligations under the Loan Documents, as amended hereby. This Agreement is a Loan Document. Except as expressly modified and amended in this Agreement, all of the terms, provisions and conditions of the Credit Agreement, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms. Each Loan Party acknowledges and affirms all of its obligations under the Loan Documents.

6.                    Authority/Enforceability. Each Loan Party represents and warrants as follows:

(a)            It has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

(b)            This Agreement has been duly executed and delivered by such Loan Party and constitutes its legal, valid and binding obligations, enforceable in accordance with its terms, subject to applicable Debtor Relief Laws and to general principles of equity.

 

3

(c)            No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by such Loan Party of this Agreement.

(d)            The execution and delivery of this Agreement does not (i) contravene the terms of its Organization Documents or (ii) violate any Law.

7.                   Representations and Warranties of the Loan Parties. Each Loan Party represents and warrants to the Lenders that after giving effect to this Agreement (a) the representations and warranties set forth in Article VI of the Credit Agreement are true and correct in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it shall be true and correct in all respects as written) as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it shall be true and correct in all respects as written) as of such earlier date, (b) no event has occurred and is continuing which constitutes a Default and (c) the Obligations are not reduced or modified by this Agreement and are not subject to any offsets, defenses or counterclaims.

8.                   Counterparts/Facsimile. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts of this Agreement by facsimile or other secure electronic format (.pdf) shall be effective as an original.

9.                   GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

10.                 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

10.                 Headings. The headings of the sections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

11.                Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

12.               Release. In consideration of the Administrative Agent’s and the Lenders’ willingness to enter into this Agreement, each of the Loan Parties hereby releases and forever discharges the Administrative Agent, the Lenders and each of the Administrative Agent’s and the Lenders’ predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection with the Loan Documents or any of the negotiations, activities, events or circumstances arising out of or related to the Loan Documents through the date of this Agreement, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which each of the Loan Parties may have or claim to have against any of the Lender Group.

 

4

13.                No Actions, Claim. As of the date hereof, each of the Loan Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Administrative Agent, the Lenders, or the Administrative Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under this Agreement on or prior to the date hereof.

[signature pages follow]

 

5

Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

	
BORROWER:

	
LINCOLN EDUCATIONAL SERVICES CORPORATION,

	 	
a New Jersey corporation

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
Chief Executive Officer

	 
	 	 	 	 
	 	 	 	 
	
GUARANTORS:

	
LINCOLN TECHNICAL INSTITUTE, INC.,

	 	
a New Jersey corporation

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
 Shaun E. McAlmont

	 
	 	
Title:

	
President

	 
	 	 	 	 
	 	
NEW ENGLAND ACQUISITION, LLC,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
 Shaun E. McAlmont

	 
	 	
Title:

	
 President

	 
	 	 	 	 
	 	
SOUTHWESTERN ACQUISITION, L.L.C.,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
 Shaun E. McAlmont

	 
	 	
Title:

	
 President

	 
	 	 	 	 
	 	
NASHVILLE ACQUISITION, L.L.C.,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 
	 	 	 	 
	 	
EUPHORIA ACQUISITION, LLC,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 

 

	 	
NEW ENGLAND INSTITUTE OF TECHNOLOGY AT PALM BEACH, INC.,

	 	
a Florida corporation

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 
	 	 	 	 
	 	
LCT ACQUISITION, LLC,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 
	 	 	 	 
	 	
NN ACQUISITION, LLC,

	 	
a Delaware limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 
	 	 	 	 
	 	
LTI HOLDINGS, LLC,

	 	
a Colorado limited liability company

	 	 	 	 
	 	
By:

	
/s/Shaun E. McAlmont

	 
	 	
Name:

	
Shaun E. McAlmont

	 
	 	
Title:

	
President

	 

 

	
ADMINISTRATIVE

	 	 	 
	
AGENT:

	
BANK OF AMERICA, N.A.,

	 	
as Administrative Agent

	 	 	 	 
	 	
By:

	
/s/Linda Lov

	 
	 	
Name:

	
Linda Lov

	 
	 	
Title:

	
AVP

	 

 

	
LENDERS:

	
BANK OF AMERICA, N.A.,

	 	
as a Lender

	 	 	 	 
	 	
By:

	
/s/Jonathan M. Phillips

	 
	 	
Name:

	
Jonathan M. Phillips

	 
	 	
Title:

	
Senior Vice President

	 
	 	 	 	 
	 	
BARCLAYS BANK PLC,

	 	
as a Lender

	 	 	 	 
	 	
By:

	
/s/Alicia Borys

	 
	 	
Name:

	
Alicia Borys

	 
	 	
Title:

	
Vice President

	 
	 	 	 	 
	 	
PNC BANK, NATIONAL ASSOCIATION,

	 	
as a Lender

	 	 	 	 
	 	
By:

	
/s/Colleen McLaughlin

	 
	 	
Name:

	
Colleen McLaughlin

	 
	 	
Title:

	
Vice President Credit Policy

	 
	 	 	 	 
	 	
BMO HARRIS FINANCING, INC.,

	 	
as a Lender

	 	 	 	 
	 	
By:

	
/s/Jason M. Clary

	 
	 	
Name:

	
Jason M. Clary

	 
	 	
Title:

	
Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]