-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OehNg6foZBN2qBVtNDVmV/181kD3lcqYaSsqce/JRc5rKFRwwwLFcoH9uYl5pU/d Eiwdis9Drx4LedCd2xu8xw== 0000936392-03-000770.txt : 20030528 0000936392-03-000770.hdr.sgml : 20030528 20030527204031 ACCESSION NUMBER: 0000936392-03-000770 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20030528 GROUP MEMBERS: CEPHALOPOD CORPORATION GROUP MEMBERS: ET CONSOLIDATED, L.L.C. GROUP MEMBERS: ET HOLDINGS, L.L.C. GROUP MEMBERS: HAMPSTEAD ASSOCIATES, L.L.C. GROUP MEMBERS: KNOWLEDGE UNIVERSE II LLC GROUP MEMBERS: KNOWLEDGE UNIVERSE LEARNING GROUP, L.L.C. GROUP MEMBERS: KNOWLEDGE UNIVERSE, L.L.C. GROUP MEMBERS: KU LEARNING, L.L.C. GROUP MEMBERS: LAWRENCE INVESTMENTS, L.L.C. GROUP MEMBERS: LAWRENCE J. ELLISON GROUP MEMBERS: LOWELL J. MILKEN GROUP MEMBERS: MICHAEL R. MILKEN GROUP MEMBERS: MOLLUSK HOLDINGS, L.L.C. GROUP MEMBERS: RIDGEVIEW ASSOCIATES, LLC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NOBEL LEARNING COMMUNITIES INC CENTRAL INDEX KEY: 0000721237 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 222465204 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-45470 FILM NUMBER: 03720618 BUSINESS ADDRESS: STREET 1: ROSE TREE CORPORATE CENTER II STREET 2: 1400 N PROVIDENCE RD STE 3055 CITY: MEDIA STATE: PA ZIP: 19063 BUSINESS PHONE: 6094829100 MAIL ADDRESS: STREET 1: 1615 W CHESTER PIKE STREET 2: STE 200 CITY: WEST CHESTER STATE: PA ZIP: 19382-7956 FORMER COMPANY: FORMER CONFORMED NAME: NOBEL EDUCATION DYNAMICS INC DATE OF NAME CHANGE: 19931222 FORMER COMPANY: FORMER CONFORMED NAME: ROCKING HORSE CHILD CARE CENTERS OF AMERICA INC /DE/ DATE OF NAME CHANGE: 19931222 FORMER COMPANY: FORMER CONFORMED NAME: PETRIE CORP DATE OF NAME CHANGE: 19851031 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: KU LEARNING LLC CENTRAL INDEX KEY: 0001053451 IRS NUMBER: 954663146 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 844 MORAGE DRIVE CITY: LOS ANGELES STATE: CA ZIP: 90049 BUSINESS PHONE: 3104405475 MAIL ADDRESS: STREET 1: 844 MORAGE DRIVE CITY: LOS ANGELES STATE: CA ZIP: 90049 SC 13D/A 1 a90524a5sc13dza.txt AMENDMENT #5 TO SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (RULE 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (AMENDMENT NO. 5)(1) NOBEL LEARNING COMMUNITIES, INC. - -------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK, PAR VALUE $.001 PER SHARE - -------------------------------------------------------------------------------- (Title of Class of Securities) 654889104 - -------------------------------------------------------------------------------- (CUSIP Number) HUGH STEVEN WILSON LATHAM & WATKINS 701 "B" STREET, SUITE 2100 SAN DIEGO, CALIFORNIA 92101-8197 (619) 236-1234 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) MAY 25, 2003 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box: [ ]. (Continued on the following pages) Page 1 of 19 Pages 1 The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. SCHEDULE 13D CUSIP NO. 654889104 PAGE 2 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) KU LEARNING, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 3 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) KNOWLEDGE UNIVERSE LEARNING GROUP, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 4 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) KNOWLEDGE UNIVERSE II LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 5 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) KNOWLEDGE UNIVERSE, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 6 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) ET HOLDINGS, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 7 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) ET CONSOLIDATED, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 8 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) HAMPSTEAD ASSOCIATES, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 9 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) MOLLUSK HOLDINGS, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION CALIFORNIA - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 10 OF 19 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) CEPHALOPOD CORPORATION - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION CALIFORNIA - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING PERSON WITH 1,883,500 SHARES -------------------------------------------------------- 9 SOLE DISPOSITIVE POWER -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 11 OF 19 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) LAWRENCE INVESTMENTS, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION CALIFORNIA - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY ----------------------------------------------- OWNED BY EACH REPORTING 8 SHARED VOTING POWER PERSON WITH 1,883,500 SHARES ----------------------------------------------- 9 SOLE DISPOSITIVE POWER ----------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES ----------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7%(1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 12 OF 19 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) LAWRENCE J. ELLISON - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY ----------------------------------------------- OWNED BY EACH REPORTING 8 SHARED VOTING POWER PERSON WITH 1,883,500 SHARES ----------------------------------------------- 9 SOLE DISPOSITIVE POWER ----------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES ----------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7%(1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 13 OF 19 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) RIDGEVIEW ASSOCIATES, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION CALIFORNIA - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY ----------------------------------------------- OWNED BY EACH REPORTING 8 SHARED VOTING POWER PERSON WITH 1,883,500 SHARES ----------------------------------------------- 9 SOLE DISPOSITIVE POWER ----------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES ----------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7%(1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 14 OF 19 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) MICHAEL R. MILKEN - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY ----------------------------------------------- OWNED BY EACH REPORTING 8 SHARED VOTING POWER PERSON WITH 1,883,500 SHARES ----------------------------------------------- 9 SOLE DISPOSITIVE POWER ----------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES ----------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7%(1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 654889104 PAGE 15 OF 19 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) LOWELL J. MILKEN - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY ----------------------------------------------- OWNED BY EACH REPORTING 8 SHARED VOTING POWER PERSON WITH 1,883,500 SHARES ----------------------------------------------- 9 SOLE DISPOSITIVE POWER ----------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,883,500 SHARES ----------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,883,500 SHARES - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 28.7%(1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- (1) BASED ON 6,554,966 SHARES OF COMMON STOCK OUTSTANDING AS OF MAY 12, 2003, AS REPORTED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FILED WITH THE COMMISSION ON MAY 13, 2003. *SEE INSTRUCTIONS BEFORE FILLING OUT! PAGE 16 OF 19 This Amendment No. 5 to Schedule 13D ("Amendment No. 5") relating to Nobel Learning Communities, Inc., a Delaware corporation (the "Company"), is being filed on behalf of the undersigned to amend the Schedule 13D filed with the Commission on January 26, 1998, as amended by Amendment No. 1 thereto filed with the Commission on June 2, 1998, Amendment No. 2 thereto filed with the Commission on November 10, 1999, Amendment No. 3 thereto filed with the Commission on December 31, 2002 and Amendment No. 4 thereto filed with the Commission on March 14, 2003 (together, the "Schedule 13D"). Terms defined in the Schedule 13D and not defined herein have the same meaning as in the Schedule 13D. ITEM 4. PURPOSE OF TRANSACTION. The information in Item 4 is hereby amended and supplemented by adding the following thereto: On May 25, 2003, Steven B. Fink and Joseph W. Harch, directors of the Company nominated by KU Learning pursuant to the Agreement Regarding Board of Directors and Amendment of Rights Agreement filed as Exhibit 5 to Amendment No. 4 to this Schedule 13D, informed the Company's Board of Directors that Harch Capital Management, Inc., had arranged for KU Learning, its affiliates and/or designees to make a proposal and to provide the Company with additional debt and equity financing. The debt financing would involve the issuance of up to $10 million of Senior Unsecured Notes, the proposed terms of which are set forth in a Senior Unsecured Notes Term Sheet which is attached as Exhibit 6 to this Amendment No. 5 to Schedule 13D and incorporated herein by reference. The proposed equity financing consists of a rights offering to all common stockholders of the Company for the issuance of up to $7 million of a new Series E Convertible Preferred Stock at a price of $4.50 per share. KU Learning, its affiliates and/or designees are prepared to subscribe for and purchase KU Learning's pro rata portion of the rights offering and are prepared to offer a standby commitment to purchase any of the shares of Series E Convertible Preferred Stock that are not purchased by the other common stockholders in the rights offering. The terms of the proposed rights offering are set forth in the KU Learning, L.L.C. Proposed Rights Offering by Nobel Learning Communities, Inc. and Summary of Terms for Series E Convertible Preferred Stock which is attached as Exhibit 7 to this Amendment No. 5 to Schedule 13D and incorporated herein by reference. On May 27, 2003, the Company advised Messrs. Fink and Harch that the Company had rejected the foregoing proposals. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. The information is hereby amended and supplemented by adding the following thereto: Exhibit 6 Senior Unsecured Notes Term Sheet Exhibit 7 KU Learning, L.L.C. Proposed Rights Offering by Nobel Learning Communities, Inc. and Summary of Terms for Series E Convertible Preferred Stock dated May 25, 2003 PAGE 17 OF 19 SIGNATURES After reasonable inquiry and to the best of the undersigned's knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. Dated: May 27, 2003 KU LEARNING, L.L.C., a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Assistant Secretary KNOWLEDGE UNIVERSE LEARNING GROUP, L.L.C., a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Secretary KNOWLEDGE UNIVERSE II LLC, a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Secretary KNOWLEDGE UNIVERSE, L.L.C., a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Secretary ET HOLDINGS, L.L.C., a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Assistant Secretary ET CONSOLIDATED, L.L.C., a Delaware limited liability company /s/ STANLEY E. MARON ------------------------------------ By: Stanley E. Maron Its: Assistant Secretary PAGE 18 OF 19 HAMPSTEAD ASSOCIATES, L.L.C., a Delaware limited liability company By: RIDGEVIEW ASSOCIATES, LLC, a California limited liability company Its: Manager /s/ LOWELL J. MILKEN ------------------------------------------ By: Lowell J. Milken Its: Manager MOLLUSK HOLDINGS, L.L.C., a California limited liability company By: CEPHALOPOD CORPORATION Its: Manager /s/ PHILIP B. SIMON ------------------------------------------ By: Philip B. Simon Its: President CEPHALOPOD CORPORATION, a California Corporation /s/ PHILIP B. SIMON ------------------------------------------ By: Philip B. Simon Its: President PAGE 19 OF 19 LAWRENCE INVESTMENTS, LLC, a California limited liability company /s/ PHILIP B. SIMON ------------------------------------------ By: Philip B. Simon Its: President RIDGEVIEW ASSOCIATES, LLC, a California limited liability company /s/ LOWELL J. MILKEN ------------------------------------------ By: Lowell J. Milken Its: Manager /s/ MICHAEL R. MILKEN ------------------------------------------ Michael R. Milken, an individual /s/ LOWELL J. MILKEN ------------------------------------------ Lowell J. Milken, an individual /s/ LAWRENCE J. ELLISON ------------------------------------------ Lawrence J. Ellison, an individual by Philip B. Simon his attorney-in-fact EXHIBIT INDEX Exhibit 1 Joint Filing Agreement dated as of December 30, 2002 (previously filed as Exhibit 1 to Amendment No. 3 to the Schedule 13D filed with the Commission on December 31, 2002) Exhibit 2 Confidentiality Agreement dated as of May 8, 1998 between Knowledge Universe, L.L.C. and Nobel Education Dynamics, Inc. (previously filed as Exhibit 2 to Amendment No. 1 to the Schedule 13D filed with the Commission on June 2, 1998) Exhibit 3 Assignment of Proxy (including the Proxy as Exhibit A thereto) (previously filed as Exhibit 3 to Amendment No. 2 to the Schedule 13D filed with the Commission on November 10, 1999) Exhibit 4 Letter from counsel for KU Learning, L.L.C. to the Board of Directors of Nobel Learning Communities, Inc., dated December 30, 2002 (previously filed as Exhibit 4 to Amendment No. 3 to the Schedule 13D filed with the Commission on December 31, 2002) Exhibit 5 Agreement Regarding Board of Directors and Amendment of Rights Agreement dated March 12, 2003 between KU Learning, L.L.C. and Nobel Learning Communities, Inc. (previously filed as Exhibit 5 to Amendment No. 4 to the Schedule 13D filed with the Commission on March 14, 2003) Exhibit 6 Senior Unsecured Notes Term Sheet Exhibit 7 KU Learning, L.L.C. Proposed Rights Offering by Nobel Learning Communities, Inc. and Summary of Terms for Series E Convertible Preferred Stock dated May 25, 2003
EX-6 3 a90524a5exv6.txt EXHIBIT 6 EXHIBIT 6 SENIOR UNSECURED NOTES TERM SHEET THIS TERM SHEET SHALL NOT BE CONSTRUED AS CREATING ANY OBLIGATIONS ON ANY PARTY WHATSOEVER, AND SHALL NOT BE BINDING ON ANY PARTY UNLESS THE CONDITIONS CONTAINED HEREIN ARE SATISFIED AND THE TERMS OF THE PROPOSED INVESTMENT ARE CONTAINED WITHIN DEFINITIVE DOCUMENTS WHICH ARE NEGOTIATED, EXECUTED AND DELIVERED IN CONNECTION WITH THE CLOSING OF SUCH INVESTMENT. Issuer: Nobel Learning Communities, Inc., a Delaware corporation (the "Company" or "Issuer"). Purchaser: KU Learning, its affiliates and/or designees ("KU"). Issue: Senior Unsecured Notes (the "Notes"). Amount of Issue: Up to $10,000,000. Amortization: Bullet payment at Maturity. Maturity: June 15, 2005. Interest Rate: The Notes will bear interest at a fixed annual interest rate equal to nine percent (9%), payable each calendar quarter in cash in arrears. Default Rate: 5% in excess of the applicable rate. Subordination: The Notes will be subordinated in payment to the Company's indebtedness under its existing senior credit agreement. Subordination language satisfactory to Purchaser will be negotiated with the Senior Lenders. The Notes will be senior to all other existing and future indebtedness. Guarantees: To be determined based upon Senior Credit Facility. Board of Directors: Purchaser will have the right elect an additional board member. CEO Search Committee: Simultaneously with closing, the additional board member elected by the Purchaser will be added to the search committee for a new Chief Executive Officer. Documentation: Documentation will contain such terms, conditions, representations, warranties, reporting requirements, covenants, including financial covenants customary for investments of this type, and subordination terms as Purchaser or its affiliates may require. Affirmative Covenants: Usual and customary for facilities of this size, type and purpose (including, but not limited to provision of monthly financials, provision of compliance certificates, provision of SEC filings and press releases, notice of litigation, maintenance of insurance, payment of taxes, etc.) Negative Covenants: Usual and customary for facilities of this size, type and purpose (including, but not limited to limitations on permitted indebtedness, permitted investments, contingent obligations, restricted junior payments, etc.) Financial Covenants: The financial covenants will be less restrictive that those contained in the Company's senior credit agreement. Appendix A attached hereto sets forth financial covenants. Events of Default: Customary Events of Default will include but are not limited to: (i) failure to pay interest or principal when due and payable; (ii) failure to comply with the covenants in the securities purchase agreement; (iii) defaults under other agreements; (iv) breaches of representations and warranties; (v) failure to discharge material judgments; and (vi) bankruptcy or insolvency. Optional Prepayment: The Notes may be prepaid at any time at par plus accrued interest. Mandatory Repayment: Purchaser will have the right to repayment upon a Liquidity Event (defined as a liquidation, winding up, change of control, merger or sale of all or substantially all of the assets of the Company). Redemptions under this clause will be at the prices set forth above under the Optional Prepayment clause. 2 Warrants: At the closing of the transaction, the Purchaser will receive detachable and freely transferable warrants to acquire up to 500,000 shares of the Company's common stock. The total number of shares will be proportionately reduced if the final aggregate Amount of Issue of the Notes is less than $10,000,000. The Warrants will have an exercise price of $5.00 per share and will include a cashless exercise feature. The Purchaser will receive demand and unlimited piggyback registration rights and anti-dilution provisions satisfactory to Purchaser. Assignment/Transfer of Notes: The Purchaser may syndicate, assign or sell a portion or all of the Notes. Conditions to Closing: Conditions to closing will include, without limitation, the following: - The negotiation, execution and delivery of definitive documentation with respect to the Notes and the Warrants (in form and substance satisfactory to Purchaser); - The absence of any material adverse change or disruption in the financial or capital markets; - The absence of any change, which Purchaser deems to be materially adverse, in respect of the business, results of operation, condition (financial or otherwise), value, prospects, liabilities or assets of the Company; Transaction Expenses: The Issuer shall reimburse Purchaser for all expenses related to the financing (whether or not the financing closes), including, but not limited to, legal fees and disbursements, and out-of-pocket expenses. Indemnification: The Issuer shall indemnify Purchaser and each affiliate thereof and each director, officer, employee, agent, partner or representative thereof from and against any and all losses, claims, damages, liabilities or other expenses arising out of or in any way relating to or resulting from the acquisition or the issuance of the Notes. Governing Law: State of California. 3 Appendix A Financial Covenants The covenants set forth below for the Notes are significantly less restrictive than those contained in the Company's senior credit agreement.
------------------------------------------------------------------------ EBIT/ INTEREST EXPENSE ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT LESS THAN DATE NOT LESS THAN ------------- ------------- ------------- ------------- 9/30/03 1.50x 9/30/03 1.25x 12/31/03 1.50x 12/31/03 1.25x 3/31/04 1.25x 6/30/04 1.25x 9/30/04 1.25x 12/31/04 1.25x 3/31/05 1.25x 6/30/05 1.25x ------------------------------------------------------------------------
------------------------------------------------------------------------ TOTAL DEBT/ EBITDA ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT TO EXCEED DATE NOT TO EXCEED ------------- ------------- ------------- ------------- 9/30/03 3.25x 9/30/03 3.75x 12/31/03 3.00x 12/31/03 3.50x 3/31/04 3.50x 6/30/04 3.50x 9/30/04 3.50x 12/31/04 3.50x 3/31/05 3.50x 6/30/05 3.50x ------------------------------------------------------------------------
------------------------------------------------------------------------ EBITDAR/ FIXED CHARGES ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT LESS THAN DATE NOT LESS THAN ------------- ------------- ------------- ------------- 9/30/03 1.05x 9/30/03 1.00x 12/31/03 1.05x 12/31/03 1.00x 3/31/04 1.00x 6/30/04 1.00x 9/30/04 1.00x 12/31/04 1.00x 3/31/05 1.00x 6/30/05 1.00x ------------------------------------------------------------------------
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------------------------------------------------------------------------ SENIOR SECURED DEBT/ EBITDA ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT TO EXCEED DATE NOT TO EXCEED ------------- ------------- ------------- ------------- 9/30/03 2.10x 9/30/03 2.65x 12/31/03 1.75x 12/31/03 2.40x 3/31/04 2.40x 6/30/04 2.40x 9/30/04 2.25x 12/31/04 2.25x 3/31/05 2.25x 6/30/05 2.25x ------------------------------------------------------------------------
------------------------------------------------------------------------ ADJUSTED DEBT/ EBITDAR ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT TO EXCEED DATE NOT TO EXCEED ------------- ------------- ------------- ------------- 9/30/03 4.75x 9/30/03 5.70x 12/31/03 4.75x 12/31/03 5.45x 3/31/04 5.45x 6/30/04 5.45x 9/30/04 5.25x 12/31/04 5.25x 3/31/05 5.00x 6/30/05 5.00x ------------------------------------------------------------------------
------------------------------------------------------------------------ CAPITAL EXPENDITURES (QUARTER ENDED) ------------------------------------------------------------------------ SR. SECURED COVENANT SR. UNSECURED COVENANT ------------------------------- ------------------------------ DATE NOT TO EXCEED DATE NOT TO EXCEED ------------- ------------- ------------- ------------- 9/30/03 $2,000,000 9/30/03 $2,300,000 12/31/03 $1,500,000 12/31/03 $1,725,000 3/31/04 $1,500,000 6/30/04 $1,500,000 9/30/04 $1,500,000 12/31/04 $1,500,000 3/31/05 $1,500,000 6/30/05 $1,500,000 ------------------------------------------------------------------------
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EX-7 4 a90524a5exv7.txt EXHIBIT 7 EXHIBIT 7 CONFIDENTIAL KU LEARNING, L.L.C. PROPOSED RIGHTS OFFERING BY NOBEL LEARNING COMMUNITIES, INC --------------------------------------------------------------------------- SUMMARY OF TERMS FOR SERIES E CONVERTIBLE PREFERRED STOCK May 25, 2003 --------------------------------------------------------------------------- TERMS: 1. ISSUER: Nobel Learning Communities, Inc., a Delaware corporation (the "Company" or "Issuer"). 2. TYPE OF SECURITIES: Series E Convertible Preferred Stock (the "Series E Shares"). 3. PRICE PER SHARE: $4.50 per Series E Share (the "Series E Purchase Price"). 4. AGGREGATE PROCEEDS: $6 Million to $7 Million through a rights offering to all of the Company's holders of Common Stock (the "Rights Offering"). KU Learning, L.L.C. ("KU"), its affiliates and/or designees (collectively, the "Investors") will purchase KU's pro rata portion of the Series E Shares on or before June 10, 2003. The Investors will provide a standby commitment to purchase any of the Series E Shares not purchased by the other stockholders in the Rights Offering. 5. CLOSING DATE: An initial closing for the Investor's purchase of KU's pro rata portion of the Series E Shares shall occur on or before June 10, 2003 (the "Initial Closing Date"). 6. CONDITIONS PRECEDENT TO INITIAL CLOSING: (a) No material adverse change from March 31, 2003 in the business, financial condition or the prospects of the Company. (b) Execution and delivery of customary legal documentation satisfactory to the Company and the Investors, including delivery of a legal opinion from Company's counsel. (c) Receipt of all necessary approvals including any governmental and regulatory approvals, if any. 7. USE OF PROCEEDS: The proceeds of the Financing shall be used for working capital and other general corporate purposes. POST-CLOSING CAPITALIZATION CHART:
- -------------------------------------------------------------------------------- NUMBER OF SHARES PERCENTAGE OF OWNERSHIP (COMMON EQUIVALENTS) (FULLY DILUTED) - -------------------------------------------------------------------------------- SERIES E SHARES 1,555,555 14.2 - -------------------------------------------------------------------------------- SERIES A SHARES 300,966 2.7 - -------------------------------------------------------------------------------- SERIES C SHARES 625,000 5.7 - -------------------------------------------------------------------------------- SERIES D SHARES 265,958 2.4 - -------------------------------------------------------------------------------- TOTAL PREFERRED SHARES 2,747,479 25.1 - -------------------------------------------------------------------------------- WARRANTS: @ $7.00 531,255 4.8 @ $7.52 309,043 2.8 - -------------------------------------------------------------------------------- COMMON STOCK - -------------------------------------------------------------------------------- Issued and Outstanding(1) 6,554,966 59.8 - -------------------------------------------------------------------------------- Outstanding Options 814,737 7.4 - -------------------------------------------------------------------------------- Remaining Option Pool [ ] - -------------------------------------------------------------------------------- TOTAL COMMON 7,369,703 67.3 - -------------------------------------------------------------------------------- TOTAL FULLY-DILUTED SHARES 10,957,480 100.0 - --------------------------------------------------------------------------------
(1) Does not include 57,143 shares being issued as part of a litigation settlement. RIGHTS, PRIVILEGES AND RESTRICTIONS OF SERIES E SHARES: 8. SENIORITY The Series E Shares shall rank pari passu with the Company's Series A, C & D convertible preferred stock. 9. DIVIDENDS: Cumulative dividends shall accrue and be paid quarterly in arrears on each of the Series E Shares at an annual rate of 5% of the Series E Purchase Price during years 1, 2 and 3. If the average stock price per share during the last 5 days of the third year is greater than $8 per share, then the dividend rate would remain at 5% for years 4 and 5, otherwise it would increase to 8%. Under either scenario, the dividend rate would increase to 12% in year 6. The dividends will be paid in kind with additional Series E Shares during the first three years, and in cash or in kind, at the option of the Company thereafter. All dividends will be paid prior and in preference to all other shares of capital stock. For any other dividends or distributions, Series E Shares shall participate with Common Stock on an as-if-converted basis. Any accrued but unpaid dividends 2 shall be paid (in cash or in kind at the holders' election) immediately prior to (i) a Liquidation Event (defined below), (ii) redemption of the Series E Shares, or (iii) conversion of the Series E Shares, or (iv) Qualified Public Offering (completion by the Company of a public offering of Common Stock raising net proceeds of at least $10 Million). 10. LIQUIDATION PREFERENCE: In the event of a "change of control" or any liquidation, dissolution, winding-up (each a "Liquidation Event"), the holders of the Series E Shares shall be entitled to receive, pari passu with the holders of the Company's Series A, C & D convertible preferred stock an amount per share equal to the Series E Purchase Price, plus any accrued but unpaid dividends. The amounts distributable to the holders of the Series E Shares described in the preceding sentence is referred to as the "Series E Liquidation Preference." Notwithstanding the foregoing, upon any Liquidation Event, the holders of the Series E Shares shall be entitled to receive the greater of (a) the Series E Liquidation Preference and (b) the amount per share holders would have received if all Series E Shares had been converted into Common Stock of the Company immediately prior to the Liquidation Event. Any remaining proceeds thereafter shall be distributed to the holders of Common Stock in accordance with the Company's Certificate of Incorporation. 11. OPTIONAL CONVERSION: Each Holder of Series E Shares shall have the right to convert any or all of the Series E Shares at any time into shares of Common Stock at a conversion rate equal to the Series E Purchase Price divided by the "Series E Conversion Price", which shall initially equal the Series E Purchase Price. The initial conversion rate shall be 1-to-1, however such conversion rate shall be adjusted as described in the anti-dilution provisions below. 12. FORCED CONVERSION: The Company can force the conversion of the Series E Shares so long as the common stock price closes above 200% of the Series E Purchase Price (as adjusted for stock splits, combinations and the like) for any twenty trading days within a period of 30 consecutive trading days. Any such forced conversion shall be effected at the Series E conversion rate then in effect. 13. ANTI-DILUTION ADJUSTMENTS: For a period of 18 months from the Closing Date, upon the issuance of any Common Stock, warrants, rights, options or convertible securities at a purchase price per 3 share less than the then-applicable conversion price of Series E Shares (a "Dilutive Issuance"), the then-applicable Series E Conversion Price shall be reduced to equal such lesser purchase price. After 18 months from the Closing Date, upon any Dilutive Issuance the Series E Conversion Price shall be reduced, concurrently with such issue, to a price equal to the quotient obtained by dividing: (i) an amount equal to (x) the total number of shares of Common Stock outstanding immediately prior to such issuance or sale multiplied by the conversion 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, by (ii) the total number of shares of Common Stock outstanding immediately after such issuance or sale. Notwithstanding the foregoing, the Series E Conversion Price will not be adjusted as a result of: (a) conversion of the Series A Stock, Series C Stock or Series D Stock; (b) the issuance and sale of common stock (or options to purchase common stock) to employees, directors or consultants of the Company, as approved by the Board of Directors; (c) the sale of shares in connection with a firm commitment underwritten public offering; (d) dividends or distributions on Preferred Stock; (e) the issuance of warrants to banks; (f) the issuance of securities pursuant to currently outstanding options, warrants, notes or other rights to acquire securities of the Company; or (g) acquisitions approved by the Board of Directors. The Series E Conversion Price shall be proportionally adjusted in the event of any subdivision, combination, stock split, dividends, recapitalizations, reorganizations, or other analogous event. In order to give the holders of the Series E Shares the benefit of the anti-dilution protections described above, the Company agrees that it shall not issue any securities at a price below the Series E Conversion Price without obtaining stockholder approval if the adjustment to the Series E Conversion Price would result in the issuance of shares of Common Stock upon conversion of the 4 Series E Shares to exceed the number of shares then permitted to be issued without violation of the rules, regulations and interpretations of Nasdaq or the NASD (as determined in good faith in the sole discretion of the Board of Directors of the Company). 14. VOTING RIGHTS: The holders of Series E Shares shall have one vote per Series E Share on an as-if converted basis and shall vote with holders of Common Stock (as a single voting group) on all matters brought before the stockholders, except as required by law. 15. RESTRICTIVE COVENANTS: Consent of the holders of at least 50% of the Series E Shares (voting as a separate class) shall be required before the Company can, directly or indirectly, through amendment of the certificate of incorporation, merger, recapitalization or otherwise alter or change any right, preference, privilege or power of (or restriction for the benefit of) the Series E Shares. Consent of the holders of at least 50% of the Series A, Series C, Series D and Series E Shares (voting together as a separate class) shall be required before the Company can, directly or indirectly, through amendment of the certificate of incorporation, merger, recapitalization or otherwise create, designate, authorize or issue any new securities having rights, preferences, privileges, or powers (or restrictions for the benefit of) senior or on parity with the Series E Shares. The foregoing restrictions shall also apply to any agreement, understanding or arrangement to do any of the foregoing. TERMS OF SHAREHOLDERS AGREEMENT: 16. RIGHT OF FIRST OFFER Each of the Investors holding at least 500,000 Series E Shares (as adjusted for splits, consolidations and the like) shall have a pro rata right (based on their percentage equity ownership of Common Stock on an as-if converted basis) to purchase such amount that would allow each such holder to maintain its then proportionate ownership of common stock on a fully-diluted basis of any securities the Company plans to offer; provided, however, that such right shall not be triggered by any of the events set forth as exceptions under "Anti-Dilution Adjustments" above and such other exceptions as agreed upon by the Company and the Investors. 5 17. TRANSFER RESTRICTIONS: The Series E Shares shall not be subject to any transfer restrictions, other than applicable securities laws. 18. REGISTRATION RIGHTS: The Company shall register the Series E Shares purchased by the Investors as part of the Rights Offering. CERTAIN TERMS OF PURCHASE AGREEMENT WITH INVESTORS: 19. REPRESENTATIONS/WARRANTIES: Standard representations and warranties by the Company and standard covenants and closing conditions. 20. INDEMNIFICATION: Standard indemnifications by the Company, including, without limitation, for any broker's or finder's fees. 21. EXPENSES: At the Initial Closing and the closing of the Rights Offering, the Company shall pay the reasonable fees and expenses of Investors' counsel in connection with the transactions. 22. PLACEMENT FEES: No finder's fees, commissions or similar compensation shall be payable to any party in connection with the purchase and sale of the Series E Shares. BINDING PROVISIONS: 23. GOVERNING LAW: Delaware, without giving effect to conflicts of laws. 24. EXCLUSIVITY: Prior to June 10, 2003, the Company will not offer to any person other than (i) the Investors and (ii) parties related to the settled litigation previously described to KU, the opportunity to purchase any securities of the Company, and will not entertain any discussion or negotiation of the same. 25. CONFIDENTIALITY: The Company and the Investors shall provide each other the opportunity to review and comment upon, any press release or other public statements (including any filings with any federal or state governmental or regulatory agency or with the NASDAQ National Market) with respect to the transactions contemplated hereby and shall not issue any such press releases or make any such public statement prior to such opportunity, except as may be required by applicable law (including foreign regulations relating to competition), court process or by obligations pursuant to any listing agreement with any national securities exchange. For clarification purposes, KU shall not be obligated to give the Company the opportunity to review and comment any Schedule 13D 6 Amendment or filing. Notwithstanding anything herein to the contrary, any party to this agreement (and each employee, representative, or other agent of such party) may disclose to any person the tax treatment and tax structure of the transaction and all materials of any kind (including opinions and other tax analyses) that are provided to the party relating to such tax treatment and tax structure. 26. ACCESS TO INFORMATION: From the date hereof until June 10, 2003, the Company shall (and shall cause its respective officers, accountants and attorneys to) afford the officers, employees and agents (the "Representatives") of the Investors upon reasonable notice full and free access at all reasonable times (i) to the Company's officers and other employees and agents of the Company, (ii) to the properties, offices and other facilities of the Company, and to the books and records of the Company, and (iii) to the Company's independent accountants. The Company shall also furnish such Representatives with all financial, legal, technical, operating and other data and information relating thereto as may be reasonably requested in order to permit the Investors and their Representatives to make such investigation of the business properties and operations of the Company as the Investors and their Representatives may deem appropriate. 27. ARBITRATION: Any dispute arising out of or in connection with this Summary of Terms shall be referred to and finally resolved in accordance with the American Arbitration Association (AAA) Commercial Rules. The number of arbitrators shall be one. The arbitrator shall be neutral and appointed by the AAA. The place of arbitration shall be in Los Angeles, California, and shall commence no later than thirty (30) days after the arbitrator has been appointed. The losing party shall be responsible for the costs and expenses incurred by both sides with respect to the arbitration. This Summary of Terms is non-binding, except for this paragraph and the provisions on Exclusivity, Press Releases, Confidentiality and Governing Law (the "Binding Provisions") that are legally binding on the parties. 7 This Summary of Terms shall expire at 5:00 p.m. on May 30, 2003, if not accepted in writing by the Company. Acknowledged and agreed: Nobel Learning Communities, Inc. KU Learning, L.L.C. By:________________________ By: ________________________ Name:______________________ Name: ______________________ Title: ____________________ Title: _____________________ 8
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