SEC Contract Filing

Filing Date: 2018-07-13

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: right">Exhibit 10.1</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center"><u>THIRD AMENDMENT TO CREDIT AGREEMENT</u></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; TEXT-INDENT: 36pt">THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Amendment</u></font>&#8221;) is made as of this 11<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">th</sup>&#160;day of July, 2018 by and between LINCOLN EDUCATIONAL SERVICES CORPORATION, a New Jersey corporation; LINCOLN TECHNICAL INSTITUTE, INC.; a New Jersey corporation; NASHVILLE ACQUISITION, L.L.C., a Delaware limited liability company; NEW ENGLAND ACQUISITION, LLC, a Delaware limited liability company; EUPHORIA ACQUISITION, LLC, a Delaware limited liability company; NEW ENGLAND INSTITUTE OF TECHNOLOGY AT PALM BEACH, INC. (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>NEIT</u></font>&#8221;), a Florida corporation; LCT ACQUISITION, LLC, a Delaware limited liability company; NN ACQUISITION, LLC, a Delaware limited liability company and LTI HOLDINGS, LLC, a Colorado limited liability company (individually and collectively, jointly and severally, the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Borrower</u></font>&#8221;), and STERLING NATIONAL BANK (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Bank</u></font>&#8221;).</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center">R E C I T A L S:</div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">A.</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">Pursuant to that certain Credit Agreement dated as of March 31, 2017, as amended by that certain First Amendment to Credit Agreement by and among Borrower and the Bank dated as of November 29, 2017, as further amended by that certain Second Amendment to Credit Agreement (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Second</u></font>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Amendment</u></font>&#8221;) by and among Borrower and the Bank dated as of February 23, 2018&#160; (as the same has been and may be amended from time to time, the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Credit Agreement</u></font>&#8221;), the Bank agreed to make available to Borrower (i) that certain line of credit facility in the amount of $30,000,000, comprised of a $25,000,000 revolving loan designated as &#8220;Tranche A&#8221; and a $5,000,000 non-revolving loan designated as &#8220;Tranche B&#8221; (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Facility 1</u></font>&#8221;), (ii) that certain line of credit facility in the amount of $25,000,000 (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Facility 2</u></font>&#8221;), and (iii) that certain line of credit facility in the amount of $15,000,000 (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Facility 3</u></font>&#8221;)&#160; (collectively, as amended, modified, supplemented, extended and restated from time to time, the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Loans</u></font>&#8221;). The $5,000,000 non-revolving loan drawn under Tranche B has been repaid and the maximum principal amount of Facility 1 has been permanently reduced to $25,000,000.00.</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">B.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">Pursuant to the Second Amendment, Borrower modified the provisions of Section 7.6 of the Credit Agreement to permit the arm&#8217;s-length sale of the property owned by NEIT located at 1126 53<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">rd</sup> Court North, Mangonia Park, Palm Beach County, Florida (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Florida</u></font>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"><u>Property</u></font>&#8221;) upon certain conditions set for forth in the Second Amendment, including, but not limited to, (i) the application of the net proceeds of any such sale to repay a corresponding amount of the outstanding principal balance under Facility 1, which repayment of principal shall permanently reduce the amount available under Facility 1, (ii) the requirement that the Florida Property be subject to a contract of sale acceptable to the Bank within six (6) months of the date of the Second Amendment and (iii) Borrower&#8217;s agreement to cause NEIT to execute and deliver to the Bank a negative pledge agreement in connection with the Florida Property wherein NEIT agreed, among other