Document:

EX-10.7

 

Exhibit 10.7

THESE SECURITIES HAVE BEEN ISSUED PURSUANT TO EXEMPTIONS FOR NONPUBLIC OFFERINGS FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS, AND, ACCORDINGLY, THESE SECURITIES MAY NOT BE RESOLD OR OTHERWISE DISPOSED OF
UNLESS, IN THE OPINION OF COUNSEL FOR THE HOLDER, REGISTRATION UNDER THE APPLICABLE FEDERAL OR
STATE SECURITIES LAWS IS NOT REQUIRED OR COMPLIANCE IS MADE WITH SUCH REGISTRATION REQUIREMENTS.

Void after 5:00 p.m. Eastern Time, on                    , 2012

WARRANT TO PURCHASE [_______] SHARES OF COMMON STOCK

OF

NEW HORIZONS WORLDWIDE, INC.

(Series B-2)

          This is to certify that, FOR VALUE RECEIVED, [                                        ] or its registered assigns pursuant to Section
(d) hereof (“Holder”), subject to the further provisions of this Warrant, is entitled to purchase
from New Horizons Worldwide, Inc., a Delaware corporation (the “Company”), [                    ] ([                    ]) fully
paid, validly issued and nonassessable shares of Common Stock, par value $0.01 per share, of the
Company (the “Common Stock”), at the exercise price of $0.90 per share until                     , 2012. The number of
shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid
for each share of Common Stock may be adjusted from time to time as hereinafter set forth. The
shares of Common Stock deliverable upon such exercise, and as adjusted from time to time, are
hereinafter sometimes referred to as “Warrant Shares,” and the exercise price of a share of Common
Stock as adjusted from time to time is hereinafter sometimes referred to as the “Exercise Price.”

          (a) EXERCISE OF WARRANT; NOTIFICATION OF EXPIRATION DATE OF WARRANT. (i) Subject to the
provisions hereof, the Warrant may be exercised as to Warrant Shares at any time or from time to
time, from and after                     , 2007, until the earlier to occur of (A) 5:00 P.M. Eastern
time on                     , 2012, and (B) the date of cancellation of the Warrant as described in clause (a)(ii) or
clause (a)(iii) below (first of such dates to occur, the “Expiration Date”), provided, however,
that if such day is a day on which banking institutions in the State of Delaware are authorized by
law to close, then on the next succeeding day which shall not be such a day. The Warrant may be
exercised by presentation and surrender hereof to the Company at its principal office, or at the
office of its stock transfer agent, if any, with the Purchase Form annexed hereto duly executed
(with signature guaranteed if

 

 

required by the Company or its stock transfer agent) and accompanied by payment of the Exercise
Price for the number of Warrant Shares specified in such form and any applicable taxes. The
purchase price for any Warrant Shares purchased pursuant to the exercise of this Warrant shall be
paid in full upon such exercise in cash or by certified or bank check or pursuant to a cashless
exercise procedure in accordance with Section (k) hereof. As soon as practicable after each such
exercise of the Warrants, but not later than seven (7) business days from the date of such
exercise, the Company shall issue and deliver to the Holder a certificate or certificates for the
Warrant Shares issuable upon such exercise, registered in the name of the Holder or the Holder’s
designee. If the Warrant should be exercised in part only, the Company shall, upon surrender of
the Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the Holder
thereof to purchase the balance of the Warrant Shares purchasable thereunder. In the event of a
cash exercise, upon receipt by the Company of the Warrant at its office, or by the stock transfer
agent of the Company at its office, in proper form for exercise, together with the exercise price
thereof and taxes as aforesaid in cash or certified or bank check and the opinion described below,
the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon
such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or
that certificates representing such shares of Common Stock shall not then be physically delivered
to the Holder. It is further understood that certificates for the Warrant Shares, if any, to be
issued upon exercise of the Warrant may contain a restrictive legend in accordance with Section (i)
hereof.

          (ii) Notwithstanding anything to the contrary herein contained, if from time to time one-half,
all or the remaining one-half of the Series C Warrants as defined in that certain Credit Agreement
dated July 19, 2006, by and among the Company, Camden Partners Strategic III, LLC, as
Administrative Agent, and the Lenders named therein, as amended (the “Credit Agreement”) shall be
cancelled in accordance with the terms of Section [(b)] thereof, then concurrently
therewith one-half, all or the remaining one-half of this Warrant (as applicable) shall be
cancelled, and, to the extent thereof, this Warrant shall be of no further force or effect.

          (iii) Notwithstanding anything to the contrary herein contained, in the event the Series C
Warrants as defined in the Credit Agreement are cancelled or terminated in their entirety as a
result of a redemption of the Series C Stock (as defined in the Credit Agreement) in accordance
with the provisions of Section 9 of the Series C Certificate of Designation (as defined in the
Credit Agreement), then concurrently therewith this Warrant shall be cancelled in its entirety.

          (b) RESERVATION OF SHARES. The Company shall at all times reserve for issuance and/or
delivery upon exercise of this Warrant such number of shares of its Common Stock as shall be
required for issuance and delivery upon exercise of the Warrants.

          (c) FRACTIONAL SHARES. No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of the Warrant. With respect to any fraction of a share called for upon
any exercise hereof, the Company shall pay to the Holder an amount in cash equal to such fraction
multiplied by the current market value of a share, determined as follows:

(1) If the Common Stock is listed on a national securities exchange or admitted to
unlisted trading privileges on such exchange or listed for trading on

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the Nasdaq National Market System, the current market value shall be the last
reported sale price of the Common Stock on such exchange or system on the last
business day prior to the date of exercise of this Warrant or if no such sale is
made on such day, the average bid and asked prices for such day on such exchange or
system;

(2) If the Common Stock is not so listed or admitted to unlisted trading privileges,
the current market value shall be the mean of the last reported bid and asked prices
reported by the National Quotation Bureau, Inc. on the last business day prior to
the date of the exercise of this Warrant; or

(3) If the Common Stock is not so listed or admitted to unlisted trading privileges
and bid and asked prices are not so reported, the current market value shall be an
amount, not less than the book value thereof as at the end of the most recent fiscal
year of the Company ending prior to the date of the exercise of the Warrant,
determined in such reasonable manner as may be prescribed by the Board of Directors
of the Company.

          (d) EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. The Warrant is exchangeable, without
expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at
the office of its stock transfer agent, if any, for other Warrants of different denominations
entitling the Holder thereof to purchase in the aggregate the same number of shares of Common Stock
purchasable hereunder. Subject to Section (i) hereof, the Holder will not sell, assign or transfer
this Warrant in whole or in part unless this Warrant shall have been registered for sale under the
Securities Act or until the Company shall have received from counsel for the Holder an opinion to
the effect that the proposed sale or other transfer of this Warrant by the Holder may be effected
without such registration. Upon surrender of this Warrant to the Company at its principal office
or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly
executed (with signature guaranteed, if required by the Company or its stock transfer agent) and
funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a
new Warrant in the name of the assignee or assignees named in such instrument of assignment and
this Warrant shall promptly be canceled. This Warrant may be divided by or combined with other
Warrants which carry the same rights upon presentation hereof at the principal office of the
Company or at the office of its stock transfer agent, if any, together with a written notice
specifying the names and denominations in which new Warrants are to be issued and signed by the
Holder hereof. The term “Warrant” as used herein includes any Warrants into which this Warrant may
be divided or exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and in the case of loss, theft or destruction, of
reasonable satisfactory indemnification, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will execute and deliver a new Warrant of like tenor, date and amount. Any
such new Warrant executed and delivered shall constitute an additional contractual obligation on
the part of the Company, whether or not the original Warrant shall be at any time enforceable
(subject to the Company’s right of indemnification as provided above) by anyone.

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          (e) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be entitled to any rights
of a shareholder in the Company, either at law or equity, and the rights of the Holder are limited
to those expressed in the Warrant and are not enforceable against the Company except to the extent
set forth herein.

          (f) CERTAIN ADJUSTMENTS. So long as this Warrant shall be outstanding, the Exercise Price in
effect at any time and the number and kind of securities purchasable upon the exercise of the
Warrants shall be subject to adjustment from time to time upon the happening of certain events as
follows:

(1) Reclassification, Consolidation or Merger. In case of any
reclassification or change of outstanding securities of the class issuable upon
exercise of this Warrant (other than a change in par value, or from par value to no
par value, or as a result of a subdivision or combination), or in case of any
consolidation or merger of the Company with or into another corporation (other than
a merger (i) with another corporation in which the Company is the surviving
corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant or (ii) a merger in
which the Company is not the surviving corporation and holders of equity securities
of the Company as a result of such merger receive more than 50% of the equity
securities of the surviving corporation), or in case of any sale of all or
substantially all of the assets of the Company, or in case of a share exchange in
which 50% or more of the outstanding capital stock of the Company is exchanged for
capital stock of another corporation, any of which transactions shall be referred to
hereinafter as a “Corporate Transaction”, the Company or such successor or
purchasing company or entity, as the case may be, shall execute with the Holder of
this Warrant an agreement pursuant to which the Holder of the Warrant shall have the
right thereafter to purchase upon exercise of the Warrant the kind and amount of shares, and/or other securities and property that the Holder of the Warrant would
have owned or have been entitled to receive after the happening of such Corporate
Transaction had the Warrant been exercised immediately prior to such action. The
agreement referred to in this subsection (1) shall provide for adjustments which
shall be as nearly equivalent as may be practicable to the adjustments provided for
in this Section (f). The provisions of this subsection (1) shall similarly apply to
successive Corporate Transactions.

(2) Subdivision or Combination of Shares. If the Company at any time while
this Warrant remains outstanding and unexpired shall subdivide or combine its Common
Stock, the Exercise Price shall be proportionately decreased in the case of a
subdivision or increased in the case of a combination.

(3) Stock Dividends. If the Company at any time while this Warrant is
outstanding and unexpired shall pay a dividend with respect to Common Stock payable
in, or make any other distribution with respect to Common Stock (except any
distribution provided for in the foregoing subsection (1) or (2)), of Common Stock,
then the Exercise Price shall be adjusted, from and after the date of

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determination of shareholders entitled to receive such dividend or
distribution, to that price determined by multiplying the Exercise Price in effect
immediately prior to such date of determination by a fraction (a) the numerator of
which shall be the total number of shares of Common Stock outstanding immediately
prior to such dividend or distribution and (b) the denominator of which shall be the
total number of shares of Common Stock outstanding immediately after such dividend
or distribution.

(4) Adjustment of Exercise Price for Diluting Issues.

If at any time the Company shall issue or sell, or is, in accordance with
subsections (5)(A) or (5)(B) hereof, deemed to have issued or sold, any shares of Common Stock for a consideration per share less than the
applicable Exercise Price immediately prior to the time of such issue or
sale, then, and in each such case, the Exercise Price theretofore in effect
shall be reduced, concurrently with such issue or sale, to a price equal to
the quotient obtained by dividing:

     (A) an amount equal to (x) the total number of shares of Common Stock
outstanding immediately prior to such issuance or sale multiplied by the
Exercise Price in effect immediately prior to such issuance or sale, plus
(y) the consideration, if any, received or deemed to be received by the
Company upon such issuance or sale as set forth below; by

     (B) the total number of shares of Common Stock outstanding immediately
after such issuance or sale.

For purposes of the foregoing formula, all shares of Common Stock issuable
upon the exercise of outstanding Options (as defined below) or issuable upon
the conversion of Convertible Securities (as defined below) shall be deemed
outstanding shares of Common Stock.

(5) For purposes of this Section (f), the following subparagraphs (A) to (G)
shall also be applicable:

          (A) Issuance of Rights or Options. In case at any time the
Company shall in any manner grant (whether directly or by assumption in a
merger or otherwise) any warrants or other rights to subscribe for or to
purchase, or any options for the purchase of, Common Stock or any stock or
security convertible into or exchangeable for Common Stock (such warrants,
rights or options being called “Options” and such convertible or
exchangeable stock or securities being called “Convertible Securities”)
whether or not such Options or the right to convert or exchange any such
Convertible Securities are immediately exercisable, and the price per share
for which Common Stock is issuable
upon the exercise of such Options or upon the conversion or exchange of

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such Convertible Securities (determined by dividing (a) the total amount, if
any, received or receivable by the Company as consideration for the granting
of such Options, plus the minimum aggregate amount of additional
consideration payable to the Company upon the exercise of all such Options,
plus, in the case of such Options which relate to Convertible Securities,
the minimum aggregate amount of additional consideration, if any, payable
upon the issue or sale of such Convertible Securities and upon the
conversion or exchange thereof, by (b) the total maximum number of shares of
Common Stock issuable upon the exercise of all such Options or upon the
conversion or exchange of all such Convertible Securities issuable upon the
exercise of such Options) shall be less than the applicable Exercise Price
immediately prior to the time of the granting of such Options or Convertible
Securities, then the total maximum number of shares of Common Stock issuable
upon the exercise of such Options or upon conversion or exchange of the
total maximum amount of such Convertible Securities issuable upon the
exercise of such Options shall be deemed to have been issued for such price
per share as of the date of granting of such Options or the issuance of such
Convertible Securities and thereafter shall be deemed to be outstanding.
Except as otherwise provided in subparagraph (C), no adjustment of any
Exercise Price shall be made upon the actual issue of such Common Stock or
of such Convertible Securities upon exercise of such Options or upon the
actual issue of such Common Stock upon conversion or exchange of such
Convertible Securities.

          (B) Issuance of Convertible Securities. In case the Company
shall in any manner issue (whether directly or by assumption in a merger or
otherwise) or sell any Convertible Securities, whether or not the rights to
exchange or convert any such Convertible Securities are immediately
exercisable, and the price per share for which Common Stock is issuable upon
such conversion or exchange (determined by dividing (a) the total amount
received or receivable by the Company as consideration for the issue or sale
of such Convertible Securities, plus the minimum aggregate amount of
additional consideration, if any, payable to the Company upon the conversion
or exchange thereof, by (b) the total maximum number of shares of Common
Stock issuable upon the conversion or exchange of all such Convertible
Securities) shall be less than the applicable Exercise Price immediately
prior to the time of such issue of sale, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of all such
Convertible Securities shall be deemed to have been issued for such price
per share as of the date of the issue or sale of such Convertible Securities
and thereafter shall be deemed to be outstanding, provided that (a) except
as otherwise provided in subparagraph (C), no adjustment of any Exercise
Price shall be made upon the actual issue of such Common Stock upon
conversion or exchange of such Convertible Securities and (b) if any such
issue or sale of such Convertible Securities is made upon exercise of any Options to

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purchase any such Convertible Securities for which adjustments of any
Exercise Price have been or are to be made pursuant to other provisions of
this Section (f), no further adjustment of such Exercise Price shall be made
by reason of such issue or sale.

          (C) Change in Option Price or Conversion Rate. Upon the
happening of any of the following events, namely, if the purchase price
provided for in any Option referred to in subparagraph (A), the additional
consideration, if any, payable upon the conversion or exchange of any
Convertible Securities referred to in subparagraph (A) or (B), or the rate
at which Convertible Securities referred to in subparagraph (A) or (B) are
convertible into or exchangeable for Common Stock shall change at any time
(including, but not limited to, changes under or by reason of provisions
designed to protect against dilution), the applicable Exercise Price at the
time of such event shall forthwith be readjusted to the Exercise Price which
would have been in effect at such time had such Options or Convertible
Securities still outstanding provided for such changed purchased price,
additional consideration or conversion rate, as the case may be, at the time
initially granted, issued or sold, but only if as a result of such
adjustment the Exercise Price then in effect hereunder is thereby reduced;
and on the expiration or termination of such Convertible Securities, the
Exercise Price then in effect hereunder shall forthwith be increased to the
Exercise Price which would have been in effect at the time of such
expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination,
never been issued.

          (D) Stock Dividends. In case the Company shall declare a
dividend or make any other distribution upon any stock of the Company
payable in Common Stock (except for dividends or distributions upon the
Common Stock), Options or Convertible Securities, any Common Stock, Options
or Convertible Securities, as the case may be, issuable in payment of such
dividend or distribution shall be deemed to have been issued or sold at a
consideration equal to $.01 per share.

          (E) Consideration for Stock. In case any shares of Common
Stock, Options or Convertible Securities shall be issued or sold for cash,
the consideration received therefor shall be deemed to be the amount
received by the Company therefor, without deduction therefrom of any
expenses incurred or any underwriting commissions or concessions paid or
allowed by the Company in connection therewith. In case any shares of
Common Stock, Options or Convertible Securities shall be issued or sold for
a consideration other than cash, the amount of the consideration other than
cash received by the Company shall be deemed to be the fair value of such
consideration as determined in good faith by the Board of Directors of the
Company, without deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed

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by the Company in connection therewith. In case any Options shall be issued
in connection with the issue and sale of other securities of the Company,
together comprising one integral transaction in which no specific
consideration is allocated to such Options by the parties thereto, such
Options shall be deemed to have been issued for such consideration as
determined in good faith by the Board of Directors of the Company.

          (F) Record Date. In case the Company shall take a record of
the holders of its Common Stock for the purpose of entitling them (a) to
receive a dividend or other distribution payable in Common Stock, Options or
Convertible Securities or (b) to subscribe for or purchase Common Stock
Options or Convertible Securities, then such record date shall be deemed to
be the date of the issue or sale of the shares of Common Stock deemed to
have been issued or sold upon the declaration of such dividend or the making
of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

          (G) Treasury Shares. The disposition of any shares of Common
Stock owned or held by or for the account of the Company shall be considered
an issue or sale of Common Stock for the purpose of this Section (f).

     (6) No Adjustment in Certain Circumstances. No adjustment of
the Exercise Price shall be made pursuant to this Section (f) pursuant to
(A) shares of Common Stock, Options or Convertible Securities, issued to
officers, directors and employees of, and consultants to, the Company as
compensation for bona fide services provided or to be provided to the
Company by such persons and approved by the Board of Directors or the
Compensation Committee, as the case may be; and (B) shares of Common Stock
issuable upon exercise of Options, Convertible Securities or other rights to
acquire securities of the Company issued on or outstanding on the date of
this Warrant.

     (7) Adjustment of Number of Warrant Shares. Upon each
adjustment in the Exercise Price, the number of Warrant Shares purchasable
hereunder shall be adjusted, to the nearest whole share, to the product
obtained by multiplying the number of Warrant Shares purchasable immediately
prior to such adjustment in the Exercise Price by a fraction, the numerator
of which shall be the Exercise Price immediately prior to such adjustment
and the denominator of which shall be the Exercise Price immediately
thereafter.

     (8) Calculations. All calculations under this Section (f)
shall be made to the nearest cent or to the nearest Warrant Share, as the
case may be. No adjustment in the Exercise Price shall be required unless
such adjustment would require an increase or decrease of at least $.01 in such

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price; provided, however, that any adjustments which by reason of this
subparagraph (8) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment required to be made
hereunder.

     (9) Computations by Chief Financial Officer. Each computation
required by this Section (f) for purposes of determining whether the
Exercise Price shall be adjusted shall be performed by the Company’s Chief
Financial Officer on the basis of the Company’s internally prepared
unaudited financial statements. Such unaudited financial statements shall
be accompanied by a certificate signed by the President and Chief Financial
Officer certifying that such unaudited statements have been prepared in
accordance with GAAP on a basis consistently applied and included all
adjustments (consisting only of normal, recurring accruals) necessary for a
fair presentation of the financial position and results of the Company as of
the end of each such period. Any dispute between a holder and the Company
in regard to such a computation shall be referred to and decided by the
Company’s then engaged firm of independent certified public accountants,
which shall be a firm of recognized national reputation (the “Accounting
Firm”). The computations of the Accounting Firm shall be final and binding
on the Company and the Holder.

     (10) Adjustment of Shares Received Pursuant to this Section.
In the event that at any time, as a result of an adjustment made pursuant to
this Section (f) above, the Holder of this Warrant thereafter shall become
entitled to receive any shares of the Company, other than Common Stock,
thereafter the number of such other shares so receivable upon exercise of
this Warrant shall be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with
respect to the Common Stock contained in subsection (1) above.

     (11) Warrants Issued Hereafter. Irrespective of any
adjustments in the Exercise Price or the number or kind of Warrant Shares
purchasable upon exercise of this Warrant, Warrants theretofore or
thereafter issued may continue to express the same price and number and kind
of shares as are stated in the similar Warrants initially issuable pursuant
to this Warrant.

          (g) OFFICER’S CERTIFICATE. Whenever the Exercise Price shall be adjusted as required by the
provisions of the foregoing Section, the Company shall forthwith file in the custody of its
Secretary or an Assistant Secretary at its principal office and with its stock transfer agent, if
any, an officer’s certificate showing the adjusted Exercise Price determined as herein provided,
setting forth in reasonable detail the facts requiring such adjustment, including a statement of
the number of additional shares of Common Stock, if any, and such other facts as shall be necessary to show the
reason for and the manner of computing such adjustment. Each

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such officer’s certificate shall be made available at all reasonable times for inspection by the Holder
or any holder of a Warrant executed and/or delivered pursuant to Section (a) or Section (d), and
the Company shall, forthwith after each such adjustment, mail, by certified mail, a copy of such
certificate to the Holder or any such holder.

          (h) NOTICES TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (i) if the
Company shall pay any dividend or make any distribution upon the Common Stock, or (ii) if the
Company shall offer to the holders of Common Stock for subscription or purchase by them any shares
of any class or any other rights, or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of the Company with
or into another corporation, sale, lease or transfer of all or substantially all of the property
and assets of the Company to another corporation, or voluntary or involuntary dissolution,
liquidation or winding up of the Company shall be effected, then in any such case, the Company
shall cause to be mailed by certified mail to the Holder or any holder of a Warrant executed and/or
delivered pursuant to Section (a) or Section (d), at least 20 days prior to the date specified in
(x) or (y) below, as the case may be, a notice containing a brief description of the proposed
action and stating the date on which (x) a record is to be taken for the purpose of such dividend,
distribution or rights, or (y) such reclassification, reorganization, consolidation, merger,
conveyance, lease, dissolution, liquidation or winding up is to take place and the date, if any is
to be fixed, as of which the holders of Common Stock or other securities shall receive cash or
other property deliverable upon such reclassification, reorganization, consolidation, merger,
conveyance, dissolution, liquidation or winding up.

          (i) SECURITIES LAW COMPLIANCE

	 	(1)	 	The Holder of the Warrant, by acceptance hereof, acknowledges
that the Warrant and the shares of Common Stock to be issued upon exercise
hereof or conversion thereof are being acquired solely for the Holder’s own
account and not as a nominee for any other party, and for investment, and that
the Holder will not offer, sell, transfer, assign or otherwise dispose of this
Warrant or any shares of Common Stock to be issued upon exercise hereof or
conversion thereof except under circumstances that will not result in a
violation of the Act or any state securities laws. Upon exercise of the
Warrant, the Holder shall, if requested by the Company, confirm in writing, in
a form satisfactory to the Company, that the shares of Common Stock so
purchased are being acquired solely for the Holder’s own account and not as a
nominee for any other party, for investment, and not with a view toward
distribution or resale.
	 
	 	(2)	 	If appropriate, the Warrant and any Warrants issued upon
exercise or substitution or upon assignment or transfer pursuant to Section (a)
or Section (d), as the case may be, and all shares of Common Stock issued upon
exercise hereof or conversion thereof shall be stamped or imprinted with
legends setting forth the restrictions on transfer arising under applicable
federal and state securities laws.

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          (j) REGISTRATION RIGHTS UNDER THE SECURITIES ACT OF 1933; STOCKHOLDERS’ AGREEMENT. The Holder
of this Warrant or of the Warrant Shares, upon execution thereof, shall be entitled to the
registration rights afforded under the Amended and Restated Registration Rights Agreement, dated as
of the date hereof, among the Company, the Holder and the other parties named therein. The voting
rights and obligations with respect to, and the sale or other disposition of, the Warrant Shares
shall be restricted by and subject to the provisions of a Second Amended and Restated Stockholders’
Agreement dated as of [_________], 2007 and the certificates or other evidence representing
the Warrant Shares shall bear a legend in substantially the following form:

THE VOTING RIGHTS AND OBLIGATIONS WITH RESPECT TO, AND SALE OR OTHER DISPOSITION OF,
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY AND SUBJECT TO THE
PROVISIONS OF A SECOND AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT DATED AS OF
[_________], 2007, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES
OF THE COMPANY.

          (k) CASHLESS EXERCISE. Notwithstanding any provisions to the contrary, if the fair market
value of one (1) share of Common Stock is greater than the Exercise Price (at the date of
calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect
to receive shares of Common Stock equal to the value (as determined below) of this Warrant (or the
portion thereof being canceled) by surrender of this Warrant at the principal office of the Company
together with the properly endorsed Notice of Exercise and notice of such election in which event
the Company shall issue to the Holder a number of shares of Common Stock computed using the
following formula:

                X=Y (A-B)

                         A

	 	 	 	 	 	 	 
	 

	 	Where
	 	X =
	 	the number of shares of Common Stock to be issued to the Holder
	 
	 

	 	 	 	Y =
	 	the number of shares of Common Stock purchasable under the Warrant or,
if only a portion of the Warrant is being exercised, the portion of
the Warrant being cancelled (at the date of such calculation)

	 
	 

	 	 	 	A =
	 	the fair market value of one share of Common Stock (at the date of
such calculation and calculated in accordance with Section (c) hereof)

	 
	 

	 	 	 	B =
	 	Exercise Price (as adjusted to the date of such calculation)

          (l) AMENDMENTS. Neither this Warrant nor any term hereof may be changed, waived, discharged
or terminated without the prior written consent of the Holder.

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          (m) NO IMPAIRMENT. The Company will not avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed hereunder by the Company, but will at all times in
good faith assist in the carrying out of all the provisions of this Warrant and in the taking of
all such action as may be necessary or appropriate in order to protect the rights of any Holder.

          (n) GOVERNING LAW. This Warrant shall be governed by and construed under the laws of the
State of Delaware.

          (o) NOTICES. All notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by first class mail, postage prepaid, addressed (a) if to the Holder,
[              
                                                                  
                    ] or (b) if to the Company, to 1900 S. State College Blvd., Suite 650, Anaheim, CA 92806, or at
such other address as to the Company shall have furnished to the Holder in writing.

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          IN WITNESS WHEREOF, New Horizons Worldwide, Inc. has caused this Warrant to be executed by its
officer thereunto duly authorized.

Dated: _______________, 200__

	 	 	 	 	 
	 	NEW HORIZONS WORLDWIDE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

PURCHASE FORM

Dated ____________, 20___

          The undersigned hereby irrevocably elects to exercise its rights pursuant to this Warrant to
the extent of purchasing ______ shares of Common Stock of New Horizons Worldwide, Inc. (the
“Company”), and hereby makes payment of $______, in cash, in payment of the exercise price
thereof.

          The undersigned hereby irrevocably elects to exercise its rights pursuant to this Warrant to
the extent of purchasing ______ shares of Common Stock and hereby authorizes you to deliver such
shares of Common Stock for sale to ______, and to retain from the proceeds of such sale
$______, in cash, in payment of the exercise price thereof and to remit to the undersigned the
balance of such proceeds.

          Pursuant to Section (k), the undersigned hereby irrevocably elects to exercise its rights
pursuant to this Warrant to purchase ______ shares of Common Stock through a cashless exercise
and hereby directs you to deliver shares of Common Stock to ______, in payment of the excess of
the fair market value over the exercise price thereof.

ASSIGNMENT FORM

          FOR VALUE RECEIVED, _________________________________________________________ hereby sells, assigns and transfers unto

Name _________________________________________________________________________________

                      (Please typewrite or print in block letters)

Address _______________________________________________________________________________

the right to purchase Common Stock of the Company, represented by this Warrant to the extent of
                    
shares as to which such right is exercisable and does hereby irrevocably constitute and
appoint                                          as Attorney, to transfer the same on the books of the Company
with full power of substitution in the premises.

Date ___________, 20__

	 	 	 	 	 
	 	 	 
	SignatureEX-10.8

 

Exhibit
10.8

SECOND

AMENDED AND RESTATED

STOCKHOLDERS’ AGREEMENT

AMONG

NEW HORIZONS WORLDWIDE, INC.

AND

THE PARTIES LISTED ON EXHIBITS HERETO

DATED
JULY 3, 2007

 

 

SECOND AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

     THIS SECOND AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT (this “Agreement”) is entered into as
of July 3, 2007 by and among New Horizons Worldwide, Inc., a Delaware corporation (the
“Company”), Camden Partners Strategic Fund III, L.P., a Delaware limited partnership, Camden
Partners Strategic Fund III-A, L.P., a Delaware limited partnership (collectively, “Camden”), the
other parties identified as Series B Preferred Stockholders on Exhibit B hereto, as may be
amended from time to time (collectively with Camden, the “Series B Preferred Stockholders”), ATMF
New Horizons, LLC, NH Investment LLC, Alkhaleej Training and Education Corp., Utopia Growth Fund,
Utopia Core Fund, Utopia Core Conservative Fund, Utopia Yield Income Fund (collectively, the
“Series C Investor”), the other parties identified as Series C Preferred Stockholders on
Exhibit B hereto, as may be amended from time to time (collectively with Series C Investor,
the “Series C Preferred Stockholders”), Alkhaleej Training and Education Corporation, a company
formed under the laws of the Kingdom of Saudi Arabia (“Alkhaleej”), and the holders of certain
Warrants issued by the Company as identified on Exhibit C hereto, as may be amended from
time to time (collectively, including any permitted subsequent holders hereafter, the “Warrant
Holders” and together with the Series B Preferred Stockholders, and the Series C Preferred
Stockholders, the “Holders”).

     WHEREAS, the Company and Camden entered into that certain Stockholders’ Agreement dated as of
February 7, 2005 (the “Stockholders’ Agreement”);

     WHEREAS, in connection with the extension of credit to the Company (the “Original Loan”)
pursuant to the Credit Agreement dated as of July 19, 2006 by and between the Company, certain
Warrant Holders (the “Original Warrant Holders”) and Camden Partners Strategic III, LLC, as
Administrative Agent, (i) the Company issued to each Original Warrant Holder Series A Warrants and
Series B Warrants (collectively, the “Original Warrants”) to purchase common stock of the Company,
(ii) the Company and Camden exchanged all issued and outstanding Series A Preferred Stock held by
Camden for shares of Series B Convertible Preferred Stock pursuant to that certain Preferred Stock
Exchange Agreement dated July 19, 2006 and (iii) the parties thereto amended and restated the
Stockholders’ Agreement (the “Amended and Restated Stockholders’ Agreement”); and

     WHEREAS, in connection with the purchase by the Series C Investor of 172,043 shares of the
Company’s Series C Convertible Preferred Stock which are convertible into 5,333,333 shares of
common stock of the Company (i) the Company shall issue to the Series C Investor Series C Warrants
to purchase 1,066,667 shares of common stock of the Company (collectively, the “Series C
Warrants”), (ii) the Company shall exchange the Original Warrants for Amended and Restated Series
A-1 Warrants (the “Amended and Restated Series A Warrants”) and Amended and Restated Series B-1
Warrants to purchase common stock of the Company (the “Amended and Restated Series B Warrants,” and
the Amended and Restated Series A Warrants and the Amended and Restated Series B Warrants,
collectively, the “Amended and Restated Original Warrants”), and (iii) the Company shall issue to
the Original Warrant Holders Series A-2 Warrants to purchase 984,335 shares of the common stock of
the Company and Series B-2 Warrants to purchase 150,818 shares of the common stock of the Company

 

 

(collectively, the “Pro Rata Warrants,” and together with the Series C Warrants and the Amended and
Restated Original Warrants, the “Warrants”); and

     WHEREAS, it is a condition precedent to the purchase by the Series C Investor of the Series C
Convertible Preferred Stock that the parties hereto amend and restate the Amended and Restated
Stockholders’ Agreement in order to provide, among other things, for certain rights and
responsibilities as set forth herein.

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

1. DEFINITIONS

     For all purposes of this Agreement, capitalized terms specified in Exhibit A shall
have the meanings set forth in Exhibit A, except as otherwise expressly provided herein.

2. DIRECTORS OF THE COMPANY

     In accordance with the Charter of the Company, three directors of the Company shall be elected
by the holders of the Series B Convertible Preferred Stock (the “Series B Preferred Directors” and
each a “Series B Preferred Director”), and two directors of the Company shall be elected by the
holders of the Series C Convertible Preferred Stock (the “Series C Preferred Directors” and each a
“Series C Preferred Director”) and all other directors of the Company shall be elected by the
holders of the Common Stock, the Series B Convertible Preferred Stock and the Series C Convertible
Preferred Stock voting together as a single class (on an as converted basis) (the “Common
Directors”).

     Until this Agreement is terminated as provided herein, the Company, Alkhaleej, each Series B
Preferred Stockholder (for so long as such Series B Preferred Stockholder owns any security of the
Company), each Series C Preferred Stockholder (for so long as such Series C Preferred Stockholder
owns any security of the Company) and each Warrant Holder (at such time and so long thereafter as
each such Warrant Holder owns any securities of the Company) shall take or cause to be taken all
reasonably necessary actions within its respective power and authority and in accordance with
applicable law as may be required to effect the agreements contained in this Section 2.

     2.1. Board of Directors

          (a) For so long as the holders of the Series B Convertible Preferred Stock and the holders of
the Series C Convertible Preferred Stock are entitled to vote in the election of the Company’s
Board of Directors as set forth in the Charter, the Company, each Series B Preferred Stockholder,
each Series C Preferred Stockholder and each Warrant Holder (at such time and so long thereafter as
each such Warrant Holder owns any securities of the Company) shall take or cause to be taken all
necessary actions as may be required:

               (1) to establish the authorized size of the Board of Directors of the Company at nine (9)
directors;

2

 

               (2) to not authorize any change in the size of the Board of Directors of the Company;

               (3) for so long as the holders of the Series B Convertible Preferred Stock are entitled to
nominate and elect the Series B Preferred Directors as set forth in the Charter, to cause to be
elected to the Board of Directors the Series B Preferred Directors designated in writing from time
to time by the holders of a majority of the Series B Convertible Preferred Stock, such persons
initially being Donald Hughes, David L. Warnock and Alwaleed Aldryann;

               (4) for so long as the holders of the Series C Convertible Preferred Stock are entitled to
nominate and elect the Series C Preferred Directors as set forth in the Charter, to cause to be
elected to the Board of Directors the Series C Preferred Directors designated in writing from time
to time by the holders of a majority of the Series C Convertible Preferred Stock, such persons
initially being Arnold M. Jacob and Robert H. Orley;

               (5) to maintain the voting requirements for actions of the Board of Directors at a majority of
directors present at a meeting at which there is a quorum, except in respect of such matters as
this Agreement, the Charter or the Bylaws or law may impose a greater voting requirement;

               (6) subject to Section 2.1(b), to cause to be removed forthwith from the Board of Directors
any Series B Preferred Director when removal is requested for any reason, with or without cause, by
the holders of a majority of the Series B Convertible Preferred Stock, and not to remove a Series B
Preferred Director for any other reason during the time of the designation rights of the Series B
Preferred Stockholders under this Section 2;

               (7) to cause to be removed forthwith from the Board of Directors any Series C Preferred
Director when removal is requested for any reason, with or without cause, by the holders of a
majority of the Series C Convertible Preferred Stock, and not to remove a Series C Preferred
Director for any other reason during the time of the designation rights of the Series C Preferred
Stockholders under this Section 2;

               (8) in the case of death, resignation, or other removal as herein provided of any Series B
Preferred Director, to elect only another person designated by the holders of a majority of the
Series B Convertible Preferred Stock to fill the vacancy created thereby;

               (9) in the case of death, resignation, or other removal as herein provided of any Series C
Preferred Director, to elect only another person designated by the holders of a majority of the
Series C Convertible Preferred Stock to fill the vacancy created thereby;

               (10) to prevent any action from being taken by the Board of Directors of the Company during
the pendency of any vacancy due to death, resignation or removal of any

3

 

Series B Preferred Director, unless the Series B Preferred Stockholders shall have failed for a
period of five (5) Business Days after written notice from the Company of the vacancy to designate
a replacement; and

               (11) to prevent any action from being taken by the Board of Directors of the Company during
the pendency of any vacancy due to death, resignation or removal of any Series C Preferred
Director, unless the Series C Preferred Stockholders shall have failed for a period of five (5)
Business Days after written notice from the Company of the vacancy to designate a replacement.

          (b) For so long as (i) the Original Loan is outstanding or (ii) Alkhaleej shall beneficially
hold not less than seventy-five percent (75%) of (x) the Amended and Restated Series A Warrants
issued to it as of the date hereof or (y) the common stock issued pursuant to exercise of such
Warrants, the Company, Alkhaleej and each Series B Preferred Stockholder shall take or cause to be
taken all necessary actions as may be required to elect and retain Alwaleed Aldryann as one of the
Series B Preferred Directors in accordance with Subsection 2.1(a) hereof.

          (c) For so long as the holders of the Series B Convertible Preferred Stock are entitled to
nominate and elect Series B Preferred Directors as set forth in the Charter, Camden agrees to vote
all of its shares of securities of the Company for the remaining Common Directors proposed to be
elected by the Board of Directors’ Governance Committee.

          (d) For so long as the holders of the Series C Convertible Preferred Stock are entitled to
nominate and elect Series C Preferred Directors as set forth in the Charter, the Series C Investor
agrees to vote all of its shares of securities of the Company for the remaining Common Directors
proposed to be elected by the Board of Directors’ Governance Committee.

          (e) Each Series B Preferred Stockholder, each Series C Preferred Stockholder and each Warrant
Holder (at such time and so long thereafter as each such Warrant Holder owns any securities of the
Company) agrees to vote all shares of securities of the Company for the election of Curtis Lee
Smith, Jr., William Heller and Richard Osborne to the Company’s Board of Directors for a term or
terms expiring at the annual meeting of the Company’s shareholders in 2009.

     2.2. Board Committees

     For so long as the holders of the Series B Convertible Preferred Stock or the Series C
Convertible Preferred Stock (as applicable) are entitled to nominate and elect the Series B
Preferred Directors or Series C Preferred Directors as set forth in the Charter and subject to the
applicable listing standards of any securities exchange on which any of the Company’s securities
are then traded or listed and any applicable Law, the Board of Directors will not establish an
executive committee authorized to exercise the power of the Board of Directors generally unless the
Series B Preferred Directors and the Series C Preferred Directors (as applicable) are granted
representation on such committee proportional to its representation on the Board of Directors, nor
will the Board of Directors establish or employ committees (unless the Series B Preferred

4

 

Directors and the Series C Preferred Directors (as applicable) are granted proportional
representation thereon) as a means designed to circumvent or having the effect of circumventing the
rights of the Series B Preferred Directors or the Series C Preferred Directors (as applicable)
under this Agreement or the Charter to representation on the Board of Directors.

     2.3. Board Compensation

     The Series B Preferred Directors and the Series C Directors shall be entitled to receive such
cash, equity-linked or other compensation and expense reimbursement arrangements as shall be
provided to each other non-employee member of the Board of Directors in performing their duties as
directors.

     2.4. Board Observer Rights

     For so long as Camden owns twenty-five percent (25%) of the shares of Series B Convertible
Preferred Stock (as adjusted for stock splits, stock combinations and similar events) issued on the
date hereof, the Company agrees that Camden shall be permitted to send one (1) representative (the
“Camden Representative”) to attend, as a nonvoting observer, all meetings of the Company’s Board of
Directors or committees thereof. For so long as ATMF New Horizons, LLC owns twenty-five percent
(25%) of the shares of Series C Convertible Preferred Stock (as adjusted for stock splits, stock
combinations and similar events) issued on the date hereof, the Company agrees that ATMF New
Horizons, LLC shall be permitted to send one (1) representative (the “ATMF Representative”) to
attend, as a nonvoting observer, all meetings of the Company’s Board of Directors or committees
thereof. In this respect, the Company shall provide the Camden Representative and the ATMF
Representative copies of all notices, minutes, consents and other materials that it provides to its
directors; provided, however, that the Company reserves the right to exclude the
Camden Representative and/or the ATMF Representative from access to any material or meeting or
portion thereof if the Company in good faith believes upon the advice of counsel that such
exclusion is reasonably necessary to (i) preserve the attorney-client privilege or (ii) comply with
the listing standards of any securities exchange on which any of the Company’s securities are then
listed or traded and any applicable Law, including without limitation the need to hold periodic
executive sessions of the Company’s Board of Directors.

3. TRANSFER OF EQUITY SECURITIES

     3.1. Permitted Transfers

     Subject to Section 3.2, a Series B Preferred Stockholder may transfer its shares of Series B
Convertible Preferred Stock, and a Series C Preferred Stockholder may transfer its shares of Series
C Convertible Preferred Stock, without restriction. In connection with any transfer under this
Section 3.1, the transferee shall hold such Series B Convertible Preferred Stock or such Series C
Convertible Preferred Stock subject to the same restrictions and obligations applicable to its
transferor and shall agree in writing to be bound by the terms of this Agreement. Notwithstanding
anything to the contrary contained in this Section 3.1, no Series B Preferred Stockholder or Series
C Preferred Stockholder shall be permitted at any time to transfer to any

5

 

Person any shares of Series B Convertible Preferred Stock or any shares of Series C
Convertible Preferred Stock (as applicable) if such transfer would not be in compliance with the
Act or any applicable state securities laws.

     3.2. Right of First Refusal

     If any Series B Preferred Stockholder, any Series C Preferred Stockholder or any Person who
acquires any Series B Convertible Preferred Stock or Series C Convertible Preferred Stock from a
Series B Preferred Stockholder or Series C Preferred Stockholder in accordance with Section 3.2
(the “Transferring Holder”) shall propose to Transfer to any Person (a “Proposed Transferee”) any
shares of Series B Convertible Preferred Stock or Series C Convertible Preferred Stock, such
Transfer shall be conditional upon the satisfaction of the following conditions precedent:

          (a) Such Transferring Holder shall first offer the Series B Convertible Preferred Stock or
Series C Convertible Preferred Stock that it desires to Transfer (the “Offered Securities”) to the
Company, at the same price and on the same terms that the Transferring Holder intends to Transfer
the Offered Securities to the Proposed Transferee. Such offer shall be made by a written notice
(the “Notice of Proposed Transfer”) delivered to the Company not less than twenty (20) days prior
to the proposed Transfer. Such notice shall set forth the identity of the Proposed Transferee, the
Offered Securities proposed to be sold, the terms and conditions of the Proposed Transfer,
including price per share, and any other material terms and conditions or material facts relating
to the proposed Transfer. In addition, the Transferring Holder shall provide to the Company all
such other information relating to the Offered Securities, the Proposed Transferee and the Proposed
Transfer as the Company may reasonably request.

          (b) Thereafter, the Company shall have the right, exercisable within twenty (20) days after
receipt of the Notice of Proposed Transfer from the Transferring Holder, to purchase from the
Transferring Holder the Offered Securities.

          (c) If the Company does not accept the offer made by the Transferring Holder with respect to
all of the Offered Securities within the time period provided above, then the Transferring Holder
shall have the right for a period of sixty (60) days following the aforementioned twenty (20) day
period, to Transfer all, but not less than all, of such Offered Securities, but only to the
Proposed Transferee, at not less than the price, and upon terms not more favorable to the Proposed
Transferee, than were contained in the Notice of Proposed Transfer. Offered Securities not sold
within such 60-day period shall continue to be subject to the requirements of this Section 3.2.

4. PREEMPTIVE RIGHTS

     (a) The Company hereby grants to each Series B Preferred Stockholder who owns at least 10,000
shares of Series B Convertible Preferred Stock and to each Series C Preferred Stockholder who owns
at least 10,000 shares of Series C Convertible Preferred Stock (in each case as adjusted for stock
splits, stock combinations and similar events), and to each Warrant Holder, the right (but not the
obligation) to purchase its pro rata share of any New Securities that

6

 

the Company may, from time to time, propose to sell and issue. Each Holder’s pro rata share, for
purposes of this right, is the ratio of the number of shares of Common Stock Equivalents then held
by the Series B Preferred Stockholder, the Series C Preferred Stockholder or the Warrant Holder
immediately prior to the issuance of the New Securities, on an as converted basis, and the number
of shares of Common Stock Equivalents outstanding (whether vested or unvested) immediately prior to
the issuance of the New Securities, on an as converted basis. For purposes of this Section 4, “New
Securities” shall mean any common stock or preferred stock of the Company, whether now authorized
or not, and rights, options or warrants to purchase such common stock or preferred stock, and
securities of any type whatsoever that are, or by their terms may become, convertible into or
exchangeable for common stock or preferred stock of the Company, but shall not include: (i) shares
of Common Stock to be issued upon conversion of the Series B Convertible Preferred Stock, (ii)
shares of Common Stock to be issued upon conversion of the Series C Convertible Preferred Stock,
(iii) shares of Common Stock, warrants, options and other rights to purchase shares of Common Stock
and securities convertible into shares of Common Stock, issued to officers, directors and employees
of, and consultants to, the Corporation as compensation for bona fide services provided or to be
provided to the Company by such persons and approved by the Board of Directors or the Compensation
Committee, as the case may be, (iv) an aggregate of 75,000 shares of Common Stock or Common Stock
issuable upon the exercise of options, warrants or other rights of the Company issued to financial
institutions or lessors in connection with commercial credit transactions, equipment financings or
similar transactions approved by the Board of Directors, and the issuance of Common Stock upon the
exercise of any such options, warrants or other rights and (v) any of the Warrants or any shares of
common stock to be issued upon the exercise of any of the Warrants.

     (b) In the event the Company proposes to undertake an issuance of New Securities, it shall
give the Holders eligible to exercise rights under this Section 4 written notice of its intention,
describing the type of New Securities (including, without limitation, the relative rights,
preferences and privileges thereof), the price and the general terms upon which the Company
proposes to issue the same (a “Sale Notice”). Each Holder shall have thirty (30) days from the
date of receipt of any such Sale Notice to elect to purchase all or a portion of its pro rata share
of the New Securities for the price and upon the general terms specified in the Sale Notice by
giving written notice to the Company and stating therein the quantity of New Securities to be
purchased.

     (c) In the event the Holders fail to exercise fully the rights granted hereunder within the
30-day period, the Company shall have ninety (90) days to effect the sale of the New Securities at
a price and on terms substantially the same as those offered to the Holders in the Sale Notice. In
the event the sale is not effected within the 90-day period, the Company shall not issue and sell
the New Securities without again offering the New Securities to the Holders in the manner provided
in this Section 4.

     (d) Notwithstanding Section 6.4 below, each Series B Preferred Stockholder and each Series C
Preferred Stockholder may, from time to time, assign its rights under this Section 4 or any portion
thereof to any of its Affiliates who agree to be bound under this Agreement. The aggregate pro
rata share of each Series B Preferred Stockholder and its Affiliates as a group, and each Series C
Preferred Stockholder and its Affiliates as a group (each, a “Stockholder Group”)

7

 

shall be equal for all purposes to the number of securities which would have constituted the pro
rata share of such Series B Preferred Stockholder or Series C Preferred Stockholder (as applicable)
had no such assignment been effected, and may be allocated among the members of the Stockholder
Group in any manner agreed upon by the Stockholder Group. For purposes of this Section 4, the
definition of “Affiliate” shall only include affiliated entities and shall not include individuals.

     (e) Notwithstanding the foregoing, (i) in the event that the Board of Directors determines in
good faith that the Company may be adversely affected by a delay in closing the sale of the New
Securities, holders of a majority of the Series B Convertible Preferred Stock, holders of a
majority of the Series C Convertible Preferred Stock and Warrant Holders with such rights granted
hereunder may waive the rights granted in this Section 4 on behalf of all Series B Preferred
Stockholders, Series C Preferred Stockholders and Warrant Holders (as applicable) with such rights
granted hereunder prior to the end of the 30-day period and upon receipt of the acceptances or
waivers described herein, the Company shall be free to consummate the issuance and sale of the New
Securities within the 90-day period following receipt of such acceptances or waivers (after which
the Company will again be required to offer the New Securities to the Holders in the manner
provided in this Section 4) and (ii) in no event shall the Company be required to sell any New
Securities to a Holder that is not an “accredited investor” as such term is defined under the Act
at the time of such proposed sale.

     (f) Without limitation of the forgoing, the Series C Convertible Preferred Stock, any shares
of the common stock of the Company into which such securities may be converted, the Series C
Warrants, and any shares of the common stock of the Company issued in connection with the exercise
of such Warrants, shall not be “New Securities” for purposes of this Section 4, and the holders of
the Series B Convertible Preferred Stock and the Original Warrant Holders waive any rights that may
have previously existed under this Section 4 with respect to the sale or issuance of each of the
foregoing.

5. ADDITIONAL COVENANTS OF THE COMPANY

     The Company hereby covenants as set forth in the following subsections with each Series B
Preferred Stockholder as follows:

     5.1. Financial and Business Information

     For so long as the Series B Preferred Stockholders own at least fifty percent (50%) of the
Series B Convertible Preferred Stock issued on the date hereof, the Company shall furnish to the
Series B Preferred Stockholders, and for so long as the Series C Preferred Stockholders own at
least fifty percent (50%) of the Series C Convertible Preferred Stock issued on the date hereof,
the Company shall furnish to the Series C Preferred Stockholders:

          (1) as soon as available and in any event within seventy-five (75) days after the end of each
fiscal year of the Company (or such shorter period as may be prescribed by law or regulation with
respect to annual filings on Form 10-K), a copy of the audited balance sheet of the Company as of
the end of such fiscal year and the related audited statements of income and

8

 

cash flows for the fiscal year, all prepared in reasonable detail, and certified by independent
certified public accountants of recognized national standing as presenting fairly in all material
respects the financial position of the Company and approved by the Board of Directors of the
Company, including footnotes and setting forth in comparative form the corresponding figures for
the corresponding period of the preceding fiscal year, prepared in accordance with GAAP,
consistently applied;

          (2) as soon as available and in any event within forty (40) days after the end of each fiscal
quarter of the Company (or such shorter period as may be prescribed by law or regulation with
respect to quarterly filings on Form 10-Q) (other than the last quarter of each fiscal year), a
copy of the unaudited balance sheet of the Company as of the end of the quarter and the related
unaudited statements of income and cash flows of the Company for the periods commencing at the end
of the previous quarter and ending at the end of the quarter and commencing at the beginning of the
fiscal year and ending at the end of the quarter, in each case setting forth in comparative form
the corresponding figures for the corresponding period of the preceding fiscal year, prepared in
accordance with GAAP, consistently applied, subject only to year-end audit adjustments, except that
such financial statements need not contain the notes required by GAAP, and certified by the
principal financial or accounting officer of the Company and accompanied by a narrative management
discussion and analysis of the operating results and financial condition;

          (3) within thirty (30) days after the end of each calendar month, a copy of the unaudited
balance sheet of the Company as of the end of the month and the related unaudited statements of
income and cash flows of the Company for the periods commencing at the end of the previous month
and ending at the end of the month and commencing at the beginning of the fiscal year and ending at
the end of the month, in each case setting forth in comparative form the corresponding figures for
the corresponding period of the preceding fiscal year, prepared in accordance with GAAP,
consistently applied, subject only to year-end audit adjustments, except that such financial
statements need not contain the notes required by GAAP, and certified by the principal financial or
accounting officer of the Company and accompanied by a narrative management discussion and analysis
of the operating results and financial condition;

          (4) as soon as available and in any event no later than thirty (30) days after the first day
of each fiscal year of the Company beginning after the date hereof, an annual operating plan and
budget (including cash flow data) for the Company for the fiscal year, each prepared in reasonable
detail, including monthly projections, as each operating plan and budget has been approved by the
Board of Directors of the Company;

          (5) as soon as available, monthly updates to the information provided in subsection (4) above;

          (6) at least annually, letters from the Company’s independent accountants regarding the
sufficiency of internal controls and other matters customarily addressed in “management letters”;

9

 

          (7) Within five days after receipt, a copy of any notification received by the Company
regarding (i) any defaults on any material contracts, loans or leases to which the Company is a
party or (ii) (A) any material litigation filed against the Company or (B) any overtly threatened
litigation that the Company reasonably believes may be filed against the Company and may have a
material adverse effect on the condition (financial or other), business, results of operations,
ability to conduct business or properties of the Company and its subsidiaries, taken as a whole;
and

          (8) promptly, from time to time, such other information (in writing if so required) regarding
the assets and properties and operations, business affairs, profit and loss statements, budgets,
initial projections and financial condition of the Company as Camden may reasonably request.

     5.2. Restrictive Agreements Prohibited

     The Company shall not become a party to any agreement which by its terms or effects restricts
or hinders the Company’s performance of, or obligations pursuant to, this Agreement, the
Registration Rights Agreement, the Charter or the Bylaws.

6. MISCELLANEOUS

     6.1. Legend

     The certificates or other evidence representing the Series B Convertible Preferred Stock and
the Series C Convertible Preferred Stock shall bear a legend (the “Legend”) in substantially the
following form:

THE VOTING RIGHTS AND OBLIGATIONS WITH RESPECT TO, AND SALE OR OTHER
DISPOSITION OF, THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
RESTRICTED BY AND SUBJECT TO THE PROVISIONS OF A SECOND AMENDED AND
RESTATED STOCKHOLDERS’ AGREEMENT DATED AS OF JULY 3, 2007, A
COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES OF THE COMPANY.

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES
LAWS, MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITEIS
UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW, (II) A “NO ACTION”
LETTER OF THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH SALE
OR OFFER, OR (III) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY THAT

10

 

REGISTRATION UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW IS NOT
REQUIRED WITH RESPECT TO SUCH SALE OR OFFER.

     6.2. Specific Performance

     In addition to any other remedies which the Series B Preferred Stockholders and the Series C
Preferred Stockholders may have at law or in equity, the Company, the Series B Preferred
Stockholders and the Series C Preferred Stockholders hereby acknowledge that the harm which might
result to the Series B Preferred Stockholders or the Series C Preferred Stockholders from breaches
by the Company, the Series B Preferred Stockholders or the Series C Preferred Stockholders of their
respective obligations to take all necessary actions with respect to the election and the removal
of directors of the Company cannot be adequately compensated by damages. Accordingly, the Company,
each Series B Preferred Stockholder and each of the Series C Preferred Stockholders agrees that
each other Series B Preferred Stockholder and each other Series C Preferred Stockholder shall have
the right to have all obligations and undertakings set forth in Section 2 specifically performed by
the Company, the other Series B Preferred Stockholders or the other Series C Preferred
Stockholders, as the case may be, and that any other Series B Preferred Stockholder or Series C
Preferred Stockholder shall have the right to obtain an order or decree of such specific
performance in any of the courts of the United States of America or of any state or other political
subdivision thereof.

     6.3. Termination

     Unless earlier terminated as provided herein, this Agreement, and the agreements, covenants
and obligations of the parties hereunder, shall forthwith terminate and become wholly void and of
no effect at such time as (i) there are less twenty-five percent (25%) of the Series B Convertible
Preferred Stock issued on the date hereof outstanding (subject to adjustment for splits,
combinations and the like), (ii) there are less twenty-five percent (25%) of the Series C
Convertible Preferred Stock issued on the date hereof outstanding (subject to adjustment for
splits, combinations and the like), and (iii) Section 2.1(b) is no longer applicable.

     6.4. Assignment

     Except as expressly contemplated by Section 3, neither the Company nor any Series B Preferred
Stockholder or Series C Preferred Stockholder shall assign this Agreement, in whole or in part,
whether by operation of law or otherwise, unless such person shall have obtained the prior written
consent of all the other parties. Any purported assignment of this Agreement contrary to the terms
hereof shall be null and void and of no force and effect.

     6.5. Entire Agreement; Amendment; and Waivers

     This Agreement, including the Exhibits hereto, constitutes the entire agreement among the
parties hereto with respect to the matters provided for herein, and it supersedes all prior oral or
written agreements, commitments or understandings with respect to the matters provided for herein.
No amendment, modification or discharge of this Agreement shall be valid or binding

11

 

unless set forth in writing and duly executed and delivered by the Company, the holders of the
Series B Convertible Preferred Stock representing a majority of the outstanding shares of Series B
Convertible Preferred Stock, and the holders of the Series C Convertible Preferred Stock
representing a majority of the outstanding shares of Series C Convertible Preferred Stock. No
delay or failure on the part of any party hereto in exercising any right, power or privilege under
this Agreement or under any other instruments given in connection with or pursuant to this
Agreement shall impair any such right, power or privilege or be construed as a waiver of any
default or any acquiescence therein. No single or partial exercise of any such right, power or
privilege shall preclude the further exercise of such right, power or privilege, or the exercise of
any other right, power or privilege. No waiver or amendment shall be valid against any party
hereto unless made in writing and approved by the holders of the Series B Convertible Preferred
Stock representing a majority of the outstanding shares of Series B Convertible Preferred Stock and
by the holders of the Series C Convertible Preferred Stock representing a majority of the
outstanding shares of Series C Convertible Preferred Stock. Any waiver or amendment effected in
accordance with this Section 6.5 shall be binding upon each Series B Preferred Stockholder and each
Series C Preferred Stockholder whether or not they have signed the instrument providing for such
waiver or amendment. Upon the effectuation of each such waiver or amendment, the Company shall
promptly give written notice thereof to the Series B Preferred Stockholders and to the Series C
Preferred Stockholders who have not previously consented thereto in writing.

     6.6. No Third Party Beneficiaries

     It is the explicit intention of the parties hereto that no person or entity other than the
parties hereto is or shall be entitled to bring any action to enforce any provision of this
Agreement against any of the parties hereto, and the covenants, undertakings and agreements set
forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, the
parties hereto or their respective successors, heirs, executors, administrators, legal
representatives and permitted assigns.

     6.7. Binding Effect

     This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors, heirs, executors, administrators, legal representatives and permitted
assigns.

     6.8. Governing Law

     This Agreement, the rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed in accordance with the laws of the State of
Delaware (excluding the choice of law rules thereof). Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in Wilmington, Delaware for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to the

12

 

jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address for such notices
to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

     6.9. Notices

     All notices, demands, requests, or other communications which may be or are required to be
given, served, or sent by any party to any other party pursuant to this Agreement shall be in
writing and shall be hand delivered, sent by overnight courier or mailed by first-class, registered
or certified mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 
	(i)

	 	If to the Company:

New Horizons Worldwide, Inc.

1900 S. State College Blvd., Suite 650

Anaheim, California 92806

Attention: President and Chief Executive Officer
	 
	 	 
	 

	 	with a copy (which shall not constitute notice) to:

Calfee, Halter, & Griswold, LLP

1400 KeyBank Center

800 Superior Avenue E.

Cleveland, Ohio 44114-2688

Attention: Scott R. Wilson
	 
	 	 
	(ii)

	 	If to Camden:

Camden Partners Holdings, LLC

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attention: David L. Warnock
	 
	 	 
	 

	 	with a copy (which shall not constitute notice) to:

Hogan & Hartson L.L.P.

111 South Calvert Street. Suite 1600

Baltimore, Maryland 21202

Attention: Thene M. Martin
	 
	 	 
	(iii)

	 	If to any other Series B Preferred Stockholder:

13

 

	 	 	 
	 

	 	To such Series B Preferred Stockholder’s address shown on Exhibit B hereto
	 
	 	 
	(iv)

	 	If to any Series C Preferred Stockholder;
	 
	 	 
	 

	 	To such Series C Preferred Stockholder’s address shown on Exhibit B hereto
	 
	 	 
	(v)

	 	If to Alkhaleej:
	 
	 	 
	 

	 	Alkhaleej Training & Education Corporation

P.O. Box 295300

Riyadh 11351

Kingdom of Saudi Arabia

Attn: Alwaleed Aldryann
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Fulbright & Jaworski L.L.P.

555 S. Flower Street, 41st Floor

Los Angeles, CA 90071

Attention: Tim C. Bruinsma
	 
	 	 
	(vi)

	 	If to any other Warrant Holder:
	 
	 	 
	 

	 	To such Warrant Holder’s address shown on Exhibit C hereto

Each party may designate by notice in accordance with this Section 6.9 a new address to which any
notice, demand, request or communication may thereafter be so given, served or sent. Each notice,
demand, request, or communication which shall be hand delivered, sent, mailed, in the manner
described above, shall be deemed sufficiently given, served, sent, received or delivered for all
purposes at such time as it is delivered to the addressee (with the return receipt or the delivery
receipt being deemed conclusive, but not exclusive, evidence of such delivery) or at such time as
delivery is refused by the addressee upon presentation.

     6.10. Aggregation of Stock

          All Common Stock Equivalents held or acquired by affiliated entities or persons shall be
aggregated together for the purpose of determining the availability of any rights under this
Agreement.

     6.11 Anti-Dilution Adjustments

          The Series B Preferred Stockholders hereby acknowledge, confirm and agree that the adjustment
of the conversion price of the Series B Convertible Preferred Stock to $1.54 and the adjustment of
the conversion rate of the Series B Convertible Preferred Stock to 24.3506 fully satisfy any and
all anti-dilution adjustments pursuant to the terms of the Series B Convertible Stock resulting
from the issuance of the Series C Convertible Preferred Stock and

14

 

the Series C Warrants by the Company. The Original Warrant Holders hereby acknowledge, confirm and
agree that the Series A-2 Warrants and the Series B-2 Warrants issued to them fully satisfy any and
all anti-dilution adjustments pursuant to the terms of the original Warrants resulting from the
issuance of the Series C Convertible Preferred Stock and the Series C Warrants by the Company.

     6.12 Execution in Counterparts

     To facilitate execution, this Agreement may be executed in as many counterparts as may be
required; and it shall not be necessary that the signatures of, or on behalf of, each party, or
that the signatures of all persons required to bind any party, appear on each counterpart; but it
shall be sufficient that the signature of, or on behalf of, each party, or that the signatures of
the persons required to bind any party, appear on one or more of the counterparts. All
counterparts shall collectively constitute a single agreement. It shall not be necessary in making
proof of this Agreement to produce or account for more than a number of counterparts containing the
respective signatures of, or on behalf of, all of the parties hereto.

[Signatures Appear on Following Pages]

15 

 

     IN WITNESS WHEREOF, the undersigned have duly executed this Second Amended and Restated
Stockholders’ Agreement, or have caused this Second Amended and Restated Stockholders’ Agreement to
be duly executed on their behalf, as of the day and year first hereinabove set forth.

	 	 	 	 	 
	 	NEW HORIZONS WORLDWIDE, INC.

 	 
	 	By:  	/s/ Mark A. Miller	 
	 	 	Name:  	Mark A. Miller 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	HOLDERS:

CAMDEN PARTNERS STRATEGIC FUND III, L.P., as Series B
Preferred Stockholder and Warrant Holder

By: CAMDEN PARTNERS STRATEGIC III, LLC, its General
Partner

 	 
	 	By:  	/s/ David L. Warnock	 
	 	 	David L. Warnock, Managing Member 	 
	 	 	 	 
	 
	 	CAMDEN PARTNERS STRATEGIC FUND III-A, L.P., as Series B
Preferred Stockholder and Warrant Holder

By: CAMDEN PARTNERS STRATEGIC III, LLC, its General Partner

 	 
	 	By:  	/s/ David L. Warnock	 
	 	 	David L. Warnock, Managing Member 	 
	 	 	 	 
	 
	 	ALKHALEEJ TRAINING AND EDUCATION

CORPORATION, as Series C Preferred Stockholder and Warrant Holder

 	 
	 	By:  	/s/ Awaleed
Aldryaan	 
	 	 	Name:  	Awaleed
Aldryaan 	 
	 	 	Title:  	President 	 

SIGNATURE
PAGE TO SECOND AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GEORGE S. RICH, as Warrant Holder

	 
	 	/s/ George S. Rich
	 	George S. Rich
 	 
	 
	 	ATMF NEW HORIZONS, LLC, as Series C Preferred Stockholder
and Warrant Holder

 	 
	 	By:  	/s/ Arnold
Lee Jacob	 
	 	 	Name:  	Arnold
Lee Jacob 	 
	 	 	Title:  	Member 	 
	 
	 	NH INVESTMENT LLC, as Series C Preferred Stockholder and
Warrant Holder

 	 
	 	By:  	/s/ Robert
H. Orley	 
	 	 	Name:  	Robert
H. Orley 	 
	 	 	Title:  	President 	 
	 
	 	UTOPIA GROWTH FUND, as Series C Preferred Stockholder and
Warrant Holder

 	 
	 	By:  	/s/ Paul
H. Sutherland	 
	 	 	Name:  	Paul
H. Sutherland 	 
	 	 	Title:  	President 	 
	 
	 	UTOPIA CORE FUND, as Series C Preferred Stockholder and
Warrant Holder

 	 
	 	By:  	/s/ Paul
H. Sutherland	 
	 	 	Name:  	Paul
H. Sutherland 	 
	 	 	Title:  	President 	 

SIGNATURE
PAGE TO AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT  

 

	 	 	 	 	 

	 	 	 	 	 
	 	UTOPIA CORE CONSERVATIVE FUND, as Series C Preferred
Stockholder and Warrant Holder

 	 
	 	By:  	/s/ Paul
H. Sutherland	 
	 	 	Name:  	Paul
H. Sutherland 	 
	 	 	Title:  	President 	 
	 
	 	UTOPIA YIELD INCOME FUND, as Series C Preferred

Stockholder and Warrant Holder

 	 
	 	By:  	/s/ Paul
H. Sutherland	 
	 	 	Name:  	Paul
H. Sutherland 	 
	 	 	Title:  	President 	 
	 

SIGNATURE
PAGE TO AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT  

 

EXHIBIT A

DEFINITIONS

          “Act” shall mean the Securities Act of 1933, as amended.

          “Affiliate” shall mean: (a) with respect to a person, any member of such person’s family; (b)
with respect to an entity, any officer, director, Stockholder, partner or investor of or in such
entity or of or in any Affiliate of such entity; and (c) with respect to a person or entity, any
person or entity which directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with such person or entity.

          “Agreement” shall mean this Second Amended and Restated Stockholders’ Agreement.

          “Amended and Restated Original Warrants” has the meaning set forth in the Recitals.

          “Amended and Restated Stockholders’ Agreement” has the meaning set forth in the Recitals.

          “ATMF Representative” has the meaning set forth in Section 2.4.

          “Business Day” shall mean Monday through Friday and shall exclude any federal or religious
holidays.

          “Bylaws” shall mean the Company’s Amended and Restated Bylaws of the Company.

          “Camden Representative” has the meaning set forth in Section 2.4.

          “Charter” shall mean the Restated Certificate of Incorporation of the Company as supplemented,
amended and/or restated from time to time.

          “Common Directors” has the meaning set forth in Section 2.

          “Common Stock” shall mean the common stock, $.01 par value, of the Company.

          “Common Stock Equivalent” shall mean a share of Common Stock, or the right to acquire, whether
or not immediately exercisable, a share of Common Stock, whether evidenced by an option, warrant,
convertible security or other instrument or agreement.

 

 

          “Company” shall mean New Horizons Worldwide, Inc., a Delaware corporation, or any successor
thereto.

          “Governmental Entity” means a court, arbitral tribunal, administrative agency or commission or
other governmental or other regulatory authority or agency.

          “Holders” has the meaning set forth in the Recitals.

          “Law” means any law, statute, ordinance, rule, regulation, order, writ, judgment, injunction
or decree of any Governmental Entity.

          “Legend” has the meaning set forth in Section 6.1.

          “New Securities” has the meaning set forth in Section 4.

          “Notice of Proposed Transfer” has the meaning set forth in Section 3.2(a).

          “Offered Securities” has the meaning set forth in Section 3.2(a).

          “Original Loan” has the meaning set forth in the Recitals.

          “Original Warrants” has the meaning set forth in the Recitals.

          “Original Warrant Holders” has the meaning set forth in the Recitals.

          “Proposed Transferee” has the meaning set forth in Section 3.2.

          “Registration Rights Agreement” shall mean that certain Second Amended and Restated
Registration Rights Agreement of even date herewith among the Company, Camden, Alkhaleej and the
Holders.

          “Sale Notice” has the meaning set forth in Section 4(b).

          “Series B Preferred Directors” has the meaning set forth in Section 2.

          “Series B Preferred Stockholders” has the meaning set forth in the Recitals.

          “Sale Notice” has the meaning set forth in Section 4.

          “Series B Convertible Preferred Stock” shall mean the Series B Convertible Preferred Stock, no
par value, of the Company.

          “Stockholder Group” has the meaning set forth in Section 4.

          “Stockholders’ Agreement” has the meaning set forth in the Recitals.

 

 

          “Transfer” means the sale, gift, mortgage, pledge, exchange, assignment or other disposition
or transfer, including a disposition under judicial order, legal process, execution, attachment or
enforcement of an encumbrance, but shall not include: (a) a transfer by any Series B Preferred
Stockholder that is a party to this Agreement to any other Series B Preferred Stockholder that is a
party to this Agreement; (b) a transfer by a Series B Preferred Stockholder to such Series B
Preferred Stockholder’s spouse, children or grandchildren, or to trustees or custodians for their
benefit; or (c) a transfer by a Series B Preferred Stockholder to any limited or general partner or
Affiliate of the Series B Preferred Stockholder.

          “Transferring Holder” has the meaning set forth in Section 3.2.

          “Warrant Holders” has the meaning set forth in the Recitals.

          “Warrants” has the meaning set forth in the Recitals.

 

 

EXHIBIT B

Series B Preferred Stockholders

Camden Partners Strategic Fund III, L.P.

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attn: David L. Warnock

Phone: (410) 878-6810

Fax: (410) 878-6850

Camden Partners Strategic Fund III-A, L.P.

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attn: David L. Warnock

Phone: (410) 878-6810

Fax: (410) 878-6850

Series C Preferred Stockholders

ATMF New Horizons, LLC

6735 Telegraph Road, Suite 110

Bloomfield Hills, MI 48301

Attn: Arnold M. Jacob

Phone: 248-594-0040

Fax: 248-594-1010

NH Investment LLC

40900 Woodward Avenue, Suite 130

Bloomfield Hills, MI 48304

Attn: Robert H. Orley

Phone: 248-554-4220

Fax: 248-540-7280

Alkhaleej Training and Education Corp.

P. O. Box 295300, Riyadh 11351

Kingdom of Saudi Arabia

Attn: Alwaleed Aldryann

Fax: 9661-4656030

 

 

Utopia Growth Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Core Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Core Conservative Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Yield Income Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

 

 

EXHIBIT C

Warrant Holders

Camden Partners Strategic Fund III, L.P.

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attn: David L. Warnock

Phone: (410) 878-6810

Fax: (410) 878-6850

Camden Partners Strategic Fund III-A, L.P.

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attn: David L. Warnock

Phone: (410) 878-6810

Fax: (410) 878-6850

Alkhaleej Training and Education Corporation

P.O. Box 295300

Riyadh 11351

Kingdom of Saudi Arabia

Attn: Alwaleed Aldryann

Fax: 9661-4656030

George S. Rich

904 S Broadway

Baltimore, Maryland 21231

Attn: George S. Rich

Phone: (410) 804 5574

Fax: (410) 534 8044

ATMF New Horizons, LLC

6735 Telegraph Road, Suite 110

Bloomfield Hills, MI 48301

Attn: Arnold M. Jacob

Phone: 248-594-0040

Fax: 248-594-1010

NH Investment LLC

40900 Woodward Avenue, Suite 130

Bloomfield Hills, MI 48304

Attn: Robert H. Orley

Phone: 248-554-4220

 

 

Fax: 248-540-7280

Utopia Growth Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Core Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Core Conservative Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

Utopia Yield Income Fund

111 Cass Street

Traverse City, MI 49684

Attn: Jon Mohrhardt

Phone: 231.929.4500

Fax: 231.995.7999

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