SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)*
Concorde Career Colleges, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.10 Par Value Per Share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
20651H 10 2
- --------------------------------------------------------------------------------
(CUSIP Number)
Walter H. Stowell, Esq.
Testa, Hurwitz & Thibeault, LLP
125 High Street, Boston, MA 02110
(617) 248-7000
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
March 25, 1997
- --------------------------------------------------------------------------------
(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 which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
[ ].
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
- --------------------
*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.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edward L. Cahill
SSN: ###-##-####
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
PURSUANT TO ITEMS 2(d) or 2(e)
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ---------- ---------------------------------------------------------------------
- ---------- ----------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- ---------- ---------------------------------------------------------------------
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
David L. Warnock
SSN: ###-##-####
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ---------- ---------------------------------------------------------------------
- ---------- ----------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [x]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- ---------- ---------------------------------------------------------------------
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock Strategic Partners, L.P.
IRSN: 52-1970604
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware Limited Partnership
- ---------- ---------------------------------------------------------------------
- ---------------------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ---------- ---------------------------------------------------------------------
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock Strategic Partners Fund, L.P.
IRSN: 52-1970619
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC, BK
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware Limited Partnership
- ---------- ---------------------------------------------------------------------
- ---------------------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ---------- ---------------------------------------------------------------------
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock & Company, LLC
IRSN: 52-1931617
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Maryland Limited Liability Company
- ---------- ---------------------------------------------------------------------
- ---------------------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO
- ---------- ---------------------------------------------------------------------
- -----------------------------------------
CUSIP NO. 20651H 10 2
- -----------------------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Strategic Associates, L.P.
IRSN: 52-1991689
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [X]
(b) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware Limited Partnership
- ---------- ---------------------------------------------------------------------
- ---------------------------- -------- ------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
-------- ------------------------------------------
-------- ------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,566,180
-------- ------------------------------------------
-------- ------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON
WITH
-------- ------------------------------------------
-------- ------------------------------------------
10 SHARED DISPOSITIVE POWER
1,566,180
- ---------------------------- -------- ------------------------------------------
- ---------- ---------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,566,180
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) [X]
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.5%
- ---------- ---------------------------------------------------------------------
- ---------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ---------- ---------------------------------------------------------------------
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION:
On March 25, 1997 Cahill, Warnock Strategic Partners Fund, L.P.
("Strategic Partners Fund") acquired an additional 10,662 shares of Class B
Voting Convertible Preferred Stock of Concorde Career Colleges, Inc. (the
"Issuer") for a total purchase price of $290,006.40. The additional preferred
stock acquired by Strategic Partners Fund is currently convertible into 213,240
shares of the Issuer's Common Stock. The working capital of Strategic Partners
Fund was the source of funds for this purchase. No part of the purchase price
was or will be represented by funds or other consideration borrowed or otherwise
obtained for the purpose of acquiring, holding, trading or voting the preferred
stock.
ITEM 4. PURPOSE OF TRANSACTION:
In the Schedule 13D filed with the Securities and Exchange Commission
(the "SEC") on March 7, 1997 on behalf of Strategic Partners Fund, Cahill,
Warnock Strategic Partners, L.P. ("Strategic Partners"), Cahill, Warnock &
Company, LLC ("Cahill, Warnock & Co."), Strategic Associates, L.P. ("Strategic
Associates"), Edward L. Cahill ("Cahill") and David L. Warnock
("Warnock")(collectively, the "Reporting Persons"), it was disclosed that
pursuant to a certain Convertible Preferred Stock Purchase Agreement dated as of
February 25, 1997, by and among the Issuer, Strategic Partners Fund and
Strategic Associates, Strategic Partners Fund was obligated to purchase from the
Issuer an additional 12,500 shares of Class B Voting Convertible Preferred
Stock. This agreement was subsequently amended by a certain Amendment No. 1 to
Convertible Preferred Stock Purchase Agreement dated as of March 20, 1997, by
and among the Issuer, Strategic Partners Fund, Strategic Associates and James
Seward (attached hereto as Exhibit 2). As a consequence of the foregoing
amendment, Strategic Partners Fund's obligation to purchase additional shares of
the Issuer's Class B Voting Convertible Preferred Stock was reduced to 10,662
shares, with James Seward agreeing to purchase the remaining 1,838 shares. On
March 25, 1997, Strategic Partners Fund and James Seward purchased the
aforementioned shares.
ITEM 5. INTEREST IN THE SECURITIES OF THE ISSUER:
(a) Strategic Partners Fund is the record owner of 50,414 shares of
Class B Voting Convertible Preferred Stock of the Issuer (the "Fund Preferred
Stock"). The Fund Preferred Stock is currently convertible into 1,008,280 shares
of the Issuer's Common Stock (the "Fund Conversion Shares"). In addition,
Strategic Partners Fund is the record owner of 473,750 shares of Common Stock of
the Issuer (the "Fund Common Stock").
Strategic Associates is the record owner of 2,895 shares of Class B
Voting Convertible Preferred Stock of the Issuer (the "Associates Preferred
Stock"). The Associates Preferred Stock is currently convertible into 57,900
shares of the Issuer's Common Stock (the "Associates Conversion Shares"). In
addition, Strategic Associates is the record owner of 26,250 shares of Common
Stock of the Issuer (the "Associates Common Stock").
The Fund Conversion Shares, the Fund Common Stock, the Associates
Conversion Shares and the Associates Common Stock are sometimes referred to
herein collectively as the "Concorde Shares".
Because of their relationship as affiliated entities, both Strategic
Partners Fund and Strategic Associates may be deemed to own beneficially the
Concorde Shares. As general partners of Strategic Partners Fund and Strategic
Associates, respectively, Strategic Partners and Cahill, Warnock & Co. may be
deemed to own beneficially the Concorde Shares. As the individual general
partners of Strategic Partners and as the members of Cahill, Warnock & Co., both
Cahill and Warnock may be deemed to own beneficially the Concorde Shares.
By virtue of a certain Stockholders' Agreement dated as of February 25,
1997, each of the Reporting Persons may be deemed to share voting power with
respect to each share of the Issuer's stock subject to the agreement.
Consequently, the Reporting Persons may be deemed to beneficially own, in
addition to the Concorde Shares, an additional 3,337,048 shares of the Issuer's
Common Stock (the "Agreement Shares").
Strategic Partners Fund disclaims beneficial ownership of the
Associates Conversion Shares, the Associates Common Stock and the Agreement
Shares. Strategic Associates disclaims beneficial ownership of the Fund
Conversion Shares, the Fund Common Stock and Agreement Shares. Strategic
Partners, Cahill, Warnock & Co., Cahill and Warnock each disclaim beneficial
ownership of the Concorde Shares and the Agreement Shares.
Each of the Reporting Persons may be deemed to own beneficially 19.5%
of the Issuer's Common Stock, which percentage is calculated based upon (i)
6,961,776 shares of Common Stock reported outstanding by the Issuer in its
Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1996,
and (ii) the number of shares of Common Stock (1,066,180) issuable upon
conversion of the Fund Preferred Stock and Associates Preferred Stock. The
calculation of beneficial ownership percentage does not reflect potential deemed
beneficial ownership of the Agreement Shares.
(b) Number of Shares as to which each such person has
(i) Sole power to vote or direct the vote:
0 shares for each Reporting Person;
(ii) Shared power to vote or direct the vote:
1,566,180* shares for each Reporting Person;
(iii) Sole power to dispose or to direct the disposition:
0 shares for each Reporting Person;
(iv) Shared power to dispose or to direct the disposition:
1,566,180* shares for each Reporting Person.
* Does not reflect potential deemed beneficial ownership of the
Agreement Shares.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER:
In the Schedule 13D filed with the SEC on March 7, 1997 on behalf of
the Reporting Persons, it was disclosed that pursuant to a certain Convertible
Preferred Stock Purchase Agreement dated as of February 25, 1997, by and among
the Issuer, Strategic Partners Fund and Strategic Associates, Strategic Partners
Fund was obligated to purchase from the Issuer an additional 12,500 shares of
Class B Voting Convertible Preferred Stock. This agreement was subsequently
amended by a certain Amendment No. 1 to Convertible Preferred Stock Purchase
Agreement dated as of March 20, 1997, by and among the Issuer, Strategic
Partners Fund, Strategic Associates and James Seward (attached hereto as Exhibit
2). As a consequence of the foregoing amendment, Strategic Partners Fund's
obligation to purchase additional shares of the Issuer's Class B Voting
Convertible Preferred Stock was reduced to 10,662 shares, with James Seward
agreeing to purchase the remaining 1,838 shares. On March 25, 1997, Strategic
Partners Fund and James Seward purchased the aforementioned shares.
Pursuant to a certain Agreement, dated as of March 20, 1997 (attached
hereto as Exhibit 3) by and among the Issuer, Strategic Partners Fund, Strategic
Associates, Jack L. Brozman, The Estate of Robert F. Brozman, the Robert F.
Brozman Trust under Agreement dated 12/28/89 and James R. Seward (the parties to
the Agreement, with the exception of James Seward, are referred to herein
collectively as the "Other Parties"), James Seward agrees to comply with and be
bound by certain provisions of a certain Stockholders' Agreement, dated as of
February 25, 1997 by and among the Other Parties. As a consequence of this
Agreement, certain shares of Class B Voting Convertible Preferred Stock held by
Mr. Seward are subject to certain restrictions on transfer and a right of first
refusal. The right of first refusal referred to in this Agreement, under certain
circumstances, grants each party to this Agreement certain rights of first
refusal in the event any of the other parties (with the exception of the Issuer)
wish
to transfer stock of the Issuer. In addition, pursuant to this Agreement, Mr.
Seward is granted certain "piggyback" registrations rights.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS:
Exhibit 1 - Agreement regarding filing of joint Schedule 13D.
Exhibit 2 - Amendment No. 1 to Convertible Preferred Stock Purchase
Agreement, dated as of March 20, 1997, by and among the
Issuer, Strategic Partners Fund, Strategic Associates and
James Seward.
Exhibit 3 - Agreement, dated as of March 20, 1997 by and among the
Issuer, Strategic Partners Fund, Strategic Associates, Jack
L. Brozman, The Estate of Robert F. Brozman, the Robert
Brozman Trust under Agreement dated 12/28/89 and James R.
Seward.
SCHEDULE 13D
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief,
we certify that the information set forth in this statement is true, complete
and correct.
Dated: March 26, 1997 /s/ Edward L. Cahill
--------------------
Edward L. Cahill
/s/ David L. Warnock
--------------------
David L. Warnock
CAHILL, WARNOCK STRATEGIC
PARTNERS FUND, L.P.
By: Cahill, Warnock Strategic Partners,
L.P., its Sole General Partner
By: /s/ Edward L. Cahill
---------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
---------------------------------
David L. Warnock, General Partner
CAHILL, WARNOCK STRATEGIC
PARTNERS, L.P.
By: /s/ Edward L. Cahill
-------------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
---------------------------------
David L. Warnock, General Partner
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Co., LLC, its
sole General Partner
By: /s/ Edward L. Cahill
--------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
--------------------------------
David L. Warnock, Member
CAHILL, WARNOCK & CO., LLC
By: /s/ Edward L. Cahill
--------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
--------------------------------
David L. Warnock, Member
Exhibit 1
AGREEMENT
Pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934,
the undersigned hereby agree that only one statement containing the information
required by Schedule 13D need be filed with respect to the ownership by each of
the undersigned of shares of stock of Concorde Career Colleges, Inc.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
Executed this 26th day of March, 1997.
/s/ Edward L. Cahill
--------------------
Edward L. Cahill
/s/ David L. Warnock
--------------------
David L. Warnock
CAHILL, WARNOCK STRATEGIC
PARTNERS FUND, L.P.
By: Cahill, Warnock Strategic Partners,
L.P., its Sole General Partner
By: /s/ Edward L. Cahill
---------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
---------------------------------
David L. Warnock, General Partner
CAHILL, WARNOCK STRATEGIC
PARTNERS, L.P.
By: /s/ Edward L. Cahill
------------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
------------------------------------
David L. Warnock, General Partner
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Co., LLC, its
sole General Partner
By: /s/ Edward L. Cahill
-------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
-------------------------------
David L. Warnock, Member
CAHILL, WARNOCK & CO., LLC
By: /s/ Edward L. Cahill
----------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
----------------------------
David L. Warnock, Member
Exhibit 2
AMENDMENT NO. 1
TO
CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT
This Amendment No. 1 (this "Amendment") is dated March 20, 1997 and is
by and among the Concorde Career Colleges, Inc. ("Concorde"), Cahill, Warnock
Strategic Partners Fund, L.P. ("Partners"), Strategic Associates, L.P.
("Associates") and James R. Seward ("Seward") and amends that certain
Convertible Preferred Stock Purchase Agreement dated as of February 25, 1997 by
and among Concorde, Partners and Associates (the "Agreement"). Capitalized terms
used and not otherwise defined herein shall have the meanings ascribed to them
in the Agreement.
RECITALS
WHEREAS, the Agreement provides, among other things, for the issuance
and sale by Concorde, and the purchase by Partners, of 12,500 shares (the
"Shares") of Concorde's Class B convertible Preferred Stock, par value $0.10 per
share (the "Preferred Stock") at the Second Closing;
WHEREAS, Partners desires to assign to Seward its right to purchase, at
the Second Closing, 1,838 shares of Preferred Stock (the "Seward Shares") of the
12,500 Shares, thereby reserving to Partners the right to purchase 10,662 shares
of Preferred Stock (the "Partners Shares") at the Second Closing, and Seward
desires to accept and Concorde desires to consent to such assignment (the
"Assignment");
WHEREAS, the parties hereto each desire to amend the Agreement to
divide the purchase of the Shares between Partners and Seward, on the terms and
conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the premises contained herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Consent to Assignment. Concorde hereby consents to the Assignment as
required by Section 10.5 of the Agreement.
2. Seward as a Purchaser. Seward shall be deemed a "Purchaser", solely
and exclusively for purposes of the Second Closing, under Sections 2.2, 3, 5,
7.9, 8.1, 8.7 and 10 of the Agreement, as if he were an original party to, and
included within the definition of "Purchaser" under, the Agreement.
3. Waiver of Affiliate Transaction. Partners, Associates and Concorde
hereby waive the application of the provisions of Section 9.2(c) of the
Agreement for purposes of the Assignment, the purchase and sale of the Seward
Shares and the provisions of and transactions contemplated by this Amendment.
4. Amendment to Schedule 3.2. Schedule 3.2 of the Agreement is hereby
amended, with respect only to the Second Closing described therein, as follows:
SECOND CLOSING NUMBER OF SHARES PURCHASE PRICE
Cahill, Warnock Strategic Partners Fund, L.P. 10,662 $290,006.40
James R. Seward 1,838 $49,993.60
5. Stockholders' Agreement. Seward shall execute and deliver the
certain Agreement dated of even date herewith regarding his being subject and
entitled to, and obligated to comply with and be bound by , certain provisions
of the Stockholders' Agreement dated as of February 25, 1997 by and among
Concorde, Partners, Associates and certain other parties signatory thereto.
6. Miscellaneous. Sections 10.3 through and including 10.8 of the
Agreement are incorporated herein by reference.
7. Agreement Remains in Force. Except as specifically amended or
addressed hereby, all of the provisions, terms and conditions of the Agreement
shall remain in full force and effect.
[signatures follow on next page]
IN WITNESS WHEREOF, the parties have executed this amendment by person
thereunto duly authorized as of the date first written above.
CONCORDE CAREER COLLEGES, INC.
By: /s/ Jack L. Brozman
--------------------
Jack L. Brozman
President
CAHILL, WARNOCK STRATEGIC PARTNERS FUND, L.P.
By: Cahill, Warnock Strategic Partners, L.P., its
general partner
By: /s/ David L. Warnock
--------------------------
David L. Warnock
A General Partner
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Company, LLC, its general
partner
By: /s/ David L. Warnock
---------------------------
David L. Warnock
Managing Member
/s/ James Seward
---------------------
James R. Seward
Exhibit 3
AGREEMENT
This Agreement (this "AGREEMENT") is dated March 20, 1997 and is by and
among the Concorde Career Colleges, Inc. ("CONCORDE"), Cahill, Warnock Strategic
Partners Fund, L.P. ("PARTNERS"), Strategic Associates, L.P. ("ASSOCIATES"),
Jack L. Brozman, The Estate of Robert F. Brozman, the Robert F. Brozman Trust
under Agreement dated 12/28/89 (collectively, "BROZMAN") and James R. Seward
("SEWARD") and relates to the Stockholders' Agreement dated as of February 25,
1997 by and among Concorde, Partners, Associates and Brozman (the "AGREEMENT").
Capitalized terms used and not otherwise defined herein shall have the meanings
ascribed to them in the Agreement.
RECITALS
WHEREAS, Seward desires to purchase 1,838 shares (the "SEWARD SHARES")
of Concorde's Class B Convertible Preferred Stock, par value $0.10 per share
(the "PREFERRED STOCK");
WHEREAS, as a condition to such purchase of the Seward Shares, the
other parties hereto (the "OTHER PARTIES") desire Seward to have the rights and
obligations provided by certain provisions of the Agreement, and Seward desires
to have such rights and be bound by such obligations, on the terms and
conditions hereof.
AGREEMENT
NOW, THEREFORE, in consideration of the premises contained herein and
other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. RESTRICTION ON TRANSFER. With respect only to the Seward Shares,
Seward shall be subject and entitled to, and shall comply with and be bound by,
the provisions of Article 4 of the Agreement, as if Seward was a
"Securityholder" and the Seward Shares were "Shares" as defined in the
Agreement.
2. REGISTRATION RIGHTS. With respect only to the Seward Shares, Seward
shall be subject and entitled to, and shall comply with and be bound by, the
provisions of Article 5 (except for Section 5.2(a)) of the Agreement, as if
Seward was a "Preferred Stock Holder".
3. MISCELLANEOUS. With respect only to the Seward Shares and the
application of the Agreement to Seward and the Seward Shares as provided hereby,
Seward shall be subject and entitled to, and shall comply with and be bound by,
the provisions of Article 9 of the Agreement.
4. AGREEMENT REMAINS IN FORCE. Except as specifically amended hereby,
all of the provisions, terms and conditions of the Agreement shall remain in
full force and effect.
[signatures follow on next page]
IN WITNESS WHEREOF, the parties have executed this Agreement by persons
thereunto duly authorized as of the date fist written above.
CONCORDE CAREER COLLEGES, INC.
By: /s/ Jack L. Brozman
--------------------------
Jack L. Brozman
President
CAHILL, WARNOCK STRATEGIC
PARTNERS FUND, L.P.
By: Cahill, Warnock Strategic Partners, L.P.
its general partner
By: /s/ David L. Warnock
-----------------------------
David L. Warnock
A General Partner
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Company, LLC,
its general partner
By: /s/ David L. Warnock
------------------------
David L. Warnock
Managing Member
/s/ Jack L. Brozman
---------------------------
Jack L. Brozman
ESTATE OF ROBERT F. BROZMAN
By: /s/ Jack L. Brozman
-----------------------
Jack L. Brozman
Executor
ROBERT F. BROZMAN TRUST UTA 12/28/89
By: /s/ Jack L. Brozman
----------------------
Jack L. Brozman
Trustee
/s/ James R. Seward
------------------------
James R. Seward
