Lincoln Educational Services Corporation, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into a third amendment of the company's secured revolving credit agreement, dated April 5, 2012, among the company, certain of its wholly-owned subsidiaries and a syndicate of four lenders led by Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, as previously amended on each of June 18, 2013 and December 20, 2013. The third amendment reduces the aggregate principal amount available under the Credit Facility from $40 million to $20 million, effective January 15, 2015, and until then new borrowing under the credit facility is required to be cash collateralized. The third amendment also reduces the letter of credit sublimit from $25 million to $20 million, effective January 15, 2015.

In addition, the third amendment provides that a future condition to extensions of credit after January 15, 2015 (excluding letter of credit extensions so long as the revolving credit loans (as defined under the credit facility) are $0) is that, after giving effect to the requested credit extension, the aggregate amount of cash and cash equivalents of the company not exceed $10 million. Amounts borrowed under the credit facility continue, un-amended, to bear interest, at the company's option, at either (i) an interest rate based on LIBOR and adjusted for any reserve percentage obligations under Federal Reserve Bank regulations for specified interest periods or (ii) the Base Rate, in each case, plus an applicable margin rate as determined under the Credit Agreement.