PROPERTY SALE AGREEMENT

6 Months Ended

Jun. 30, 2023

13.	Property Sale Agreement

Property Sale Agreement - Nashville, Tennessee Campus

On September 24, 2021, Nashville Acquisition, LLC, a subsidiary of the Company, entered into a Contract for the Purchase of Real Estate (the “Nashville Contract”) to sell the nearly 16-acre property located at 524 Gallatin Avenue, Nashville, Tennessee 37206, at which the Company operates its Nashville campus, to SLC Development, LLC, a subsidiary of Southern Land Company (“SLC”).

On June 8, 2023, the Company closed on the sale of its Nashville, Tennessee property to East Nashville Owner, LLC, an affiliate of SLC, for $33.8 million pursuant to the Nashville Contract. In connection with the sale, the parties entered into a lease agreement allowing Lincoln to continue to occupy the campus and operate it on a rent-free basis for a period of 15 months while the Company seeks to relocate to a more modern facility within the Nashville market. In addition to the initial 15-month term, the lease includes three options to extend the term for consecutive 30-day terms for a rental payment of $150,000 per extension term. While the new campus location has not yet been determined, the Company intends to invest between $15.0 million to $20.0 million for the buildout of the new campus, which will include two new programs with the addition of HVAC and electrical.

The net proceeds from the Nashville sale are approximately $33.3 million, net of closing costs, which will be available for working capital, acquisitions, other strategic initiatives and general corporate purposes. The property’s carrying value is approximately $4.5 million and the estimated fair value of the rent for the 15-month rent-free period is approximately $2.3 million, which is currently included in prepaid expenses and other current asset on the Company’s balance sheet.