AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 14, 1996
                                                  REGISTRATION NO.As filed with the Securities and Exchange Commission on February 6,1997  
                                                         Registration No. 333-
================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                           __________________________
                                    FORM S-3
                             REGISTRATION STATEMENT
                                     UNDER
                           THE SECURITIES ACT OFUnder
                           The Securities Act of 1933
                           __________________________
                         SYLVAN LEARNING SYSTEMS, INC.
            (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)(Exact name of registrant as specified in its charter)

    MARYLAND                                              52-1492296
(STATE OF INCORPORATION)(State of Incorporation)                    (I.R.S. EMPLOYER
                                                          IDENTIFICATION NO.Employer Identification No.)

                             9135 GUILFORD ROAD
                            COLUMBIA, MARYLAND 210461000 Lancaster Street
                           Baltimore, Maryland 21202
                                 (410) 880-0889
              (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
       INCLUDING AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)

                               DOUGLAS843-8000
              (Address, including zip code, and telephone number,
       including area code, of registrant's principal executive offices)

                               Douglas L. BECKER
              PRESIDENT, CO-CHIEF EXECUTIVE OFFICER AND SECRETARYBecker
              President, Co-Chief Executive Officer and Secretary
                         Sylvan Learning Systems, Inc.
                             1000 Lancaster Street
                           Baltimore, Maryland 21231
                                (410) 843-8000
           (Name, address, including zip code, and telephone number,
                   including area code, of agent for service)

Copies of all communications, including all communications sent to the agent for
                         service, should be sent to:

                       Richard C. Tilghman, Jr., Esquire
                            Jill Cantor Nord, Esq.
                                Piper & Marbury
                            36 South Charles Street
                          Baltimore, Maryland  21201
                                (410) 539-2530

Approximate date of commencement of proposed sale to the public:  As soon as
practicable after the effective date of this Registration Statement.

If the only securities being registered on this Form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box:  [_]

If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933,other than securities offered in connection with dividend or interest
reinvestment plans, check the following box:  [_]

If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering:  [_]

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering: [_]

If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box:  [_]

CALCULATION OF REGISTRATION FEE ============================================================================================================= Title of Shares to be Registered Proposed Maximum Aggregate Offering Price Amount of Registration Fee - ------------------------------------------------------------------------------------------------------------- Common Stock, $.01 par value $11,764,010 $3,565 =============================================================================================================
(1) Calculated in accordance with Rule 457(o) of the Securities Act of 1933, as amended. The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ + [Information contained herein is subject to completion or amendment. A + + registration statement relating to these securities has been filed with + + the Securities and Exchange Commission. These securities may not be sold + + nor may offers to buy be accepted prior to the time the registration + + statement becomes effective. This prospectus shall not constitute an offer + + to sell or the solicitation of an offer to buy nor shall there be any sale + + of these securities in any jurisdiction in which such offer, solicitation + + or sale would be unlawful prior to registration or qualification under the + + securities laws of any such jurisdiction.] + ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subject to Completion February 6, 1996 PROSPECTUS 398,780 Shares SYLVAN LEARNING SYSTEMS, INC. 9135 GUILFORD ROAD COLUMBIA, MARYLAND 21046 (410) 880-0889 (NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF AGENT FOR SERVICE) COPIES OF ALL COMMUNICATIONS, INCLUDING ALL COMMUNICATIONS SENT TO THE AGENT FOR SERVICE, SHOULD BE SENT TO: RICHARD C. TILGHMAN, JR. JILL CANTOR NORD, ESQ. PIPER & MARBURY 36 SOUTH CHARLES STREET BALTIMORE, MARYLAND 21201 (410) 539-2530 APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THIS REGISTRATION STATEMENT. IF THE ONLY SECURITIES BEING REGISTERED ON THIS FORM ARE BEING OFFERED PURSUANT TO DIVIDEND OR INTEREST REINVESTMENT PLANS, PLEASE CHECK THE FOLLOWING BOX: [ ] IF ANY OF THE SECURITIES BEING REGISTERED ON THIS FORM ARE TO BE OFFERED ON A DELAYED OR CONTINUOUS BASIS PURSUANT TO RULE 415 UNDER THE SECURITIES ACT OF 1933,OTHER THAN SECURITIES OFFERED IN CONNECTION WITH DIVIDEND OR INTEREST REINVESTMENT PLANS, CHECK THE FOLLOWING BOX: [ ] _________________________ IF THIS FORM IS FILED TO REGISTER ADDITIONAL SECURITIES FOR AN OFFERING PURSUANT TO RULE 462(B) UNDER THE SECURITIES ACT, PLEASE CHECK THE FOLLOWING BOX AND LIST THE SECURITIES ACT REGISTRATION STATEMENT NUMBER OF THE EARLIER EFFECTIVE REGISTRATION STATEMENT FOR THE SAME OFFERING: [ ] IF THIS FORM IS A POST-EFFECTIVE AMENDMENT FILED PURSUANT TO RULE 462(C) UNDER THE SECURITIES ACT, CHECK THE FOLLOWING BOX AND LIST THE SECURITIES ACT REGISTRATION STATEMENT NUMBER OF THE EARLIER EFFECTIVE REGISTRATION STATEMENT FOR THE SAME OFFERING: [ ] IF DELIVERY OF THE PROSPECTUS IS EXPECTED TO BE MADE PURSUANT TO RULE 434, PLEASE CHECK THE FOLLOWING BOX: [ ] CALCULATION OF REGISTRATION FEE ================================================================================
TITLE OF PROPOSED MAXIMUM SHARES AGGREGATE AMOUNT OF TO BE REGISTERED OFFERING PRICE REGISTRATION FEE - ------------------------------------------------------------------------------- COMMON STOCK, $.01 PAR VALUE $17,196,501 $5,930 ===============================================================================
(1) PURSUANT TO RULE 457(C), THE PROPOSED MAXIMUM OFFERING PRICE PER SHARE, PROPOSED MAXIMUM AGGREGATE OFFERING PRICE AND REGISTRATION FEE ARE BASED UPON THE AVERAGE OF THE HIGH AND LOW PRICES OF REGISTRANT'S COMMON STOCK ON NOVEMBER 7, 1996 AS REPORTED IN THE WALL STREET JOURNAL (EASTERN EDITION), AS ADJUSTED FOR THE 3-FOR-2 STOCK SPLIT EFFECTED AT THE CLOSE OF BUSINESS ON THAT DATE. THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE. SUBJECT TO COMPLETION NOVEMBER 14, 1996 PROSPECTUS 544,486 SHARES SYLVAN LEARNING SYSTEMS, INC. COMMON STOCKCommon Stock ___________ The shares of Common Stock of Sylvan Learning Systems, Inc. (the "Company") covered by this Prospectus are outstanding shares which may be offered and sold from time to time by the stockholderstockholders named herein. See "Selling Stockholder.Stockholders." The Company will not receive any proceeds from the sale of the shares by the Selling Stockholder.Stockholders. The Common Stock is quoted on the Nasdaq Stock Market (National Market) under the symbol "SLVN." On February 5, 1997 the last sale price for the Common Stock as reported on the Nasdaq Stock Market was $ . per share. The Company's Common Stock is quoted on the Nasdaq National Market under the symbol "SLVN." On November 8, 1996 the last sale price for the Common Stock as reported on the Nasdaq National Market was $31.00 per share. The Selling Stockholder named herein or any transferees or other successors in interest, directly or through dealers or underwriters to be designated,Stockholders may sell the Common Stock from time to time sell shares of the Common Stock offered hereby in a single block to a broker-dealer acting as principal, in one or more transactions on the Nasdaq NationalStock Market, in privately-negotiated transactions or otherwise, in the over-the-counter market and ineach case at negotiated transactions, on terms to be determined at the time of sale. To the extent required, the specific Common Stock to be sold, the respective purchase prices and public offering prices, the names of any such agent, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in any accompanying Prospectus Supplement or, if appropriate, a post-effective amendment to the Registration Statement of which this Prospectus is a part.prices. See "Plan of Distribution." By agreement,The brokers or dealers through or to whom the Company will pay all the expensesshares of the registration of the Common Stock by the Selling Stockholders other than underwriting discounts and commissions and transfer taxes, if any. Such expenses to be borne by the Company are estimated at $ . The Selling Stockholders and any broker-dealers, agents or underwriters that participate with the Selling Stockholders in the distribution of the Common Stockcovered hereby may be sold may be deemed to be "underwriters" within the meaning of the Securities Act of 1933, as amended (the "1933 Act"),in which event all brokerage commissions or discounts and any commissionsother compensation received by them and any profit on the resale of the Common Stock purchased by themsuch brokers or dealers may be deemed underwriting commissions or discounts under the 1933 Act.compensation. ___________ THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ___________ The date of this Prospectus is November , 1996. - -------------------------------------------------------------------------------- Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. - --------------------------------------------------------------------------------1997. AVAILABLE INFORMATION The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and in accordance therewith files reports, proxy statements and other information with the Securities and Exchange Commission (the "Commission"). Reports, proxy statements and other information filed by the Company with the Commission, including the reports and other information incorporated by reference into this Prospectus, can be inspected and copied at the public reference facilities maintained by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 and at its regional offices located at 7 World Trade Center, 13th Floor, New York, New York 10048 and Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material can also be obtained from the Public Reference Section of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 at rates prescribed by the Commission or from the Commission's Internet web site at http:\\www.sec.gov. The Common Stock of the Company is quoted on the Nasdaq National Market. Reports, proxy statements and other information concerning the Company can be inspected at the offices of the Nasdaq Stock Market, 1735 K Street, Washington, D.C. 20006. This Prospectus does not contain all the information set forth in the Registration Statement of which this Prospectus is a part and exhibits relating thereto which the Company has filed with the Commission. Copies of the information and exhibits are on file at the offices of the Commission and may be obtained, upon payment of the fees prescribed by the Commission, may be examined without charge at the offices of the Commission or through the Commission's Internet web site. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The following documents filed by the Company with the Commission (File No. 0- 22844) pursuant to the 1934 Act are incorporated herein by reference: 1. The Company's Annual Report on Form 10-K for the year ended December 31, 1995 and Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 1996, June 30, 1996 and September 30, 1996. 2. The Company's Current Report on Form 8-K dated September 27, 1996, relating to the Company's declaration of a three-for-two stock split in the form of a stock dividend and the adoption of a Shareholder Rights Plan. 3. ThePlan and the Company's Registration Statement on Form 8-A, filed on October 29, 1996, registering the Preferred Share Purchase Rights to be distributed in connection with the Company's Shareholder Rights Plan. 3. The Company's Current Report on Forms 8-K and 8-K/A dated November 8, 1996 relating to the purchase by the Company of 20,000 shares of Series A Preferred Stock of JLC Learning Corporation. 4. The Company's Current Report on Form 8-K dated November 20, 1996 relating to litigation brought by ACT, Inc. against the Company. 5. The Company's Current Report on Form 8-K dated January 28, 1997 relating to the Company's acquisition of Wall Street Institute. 6. The description of Common Stock contained in Item 4 of the Company's Registration Statement on Form 8-A, filed with the Commission under the 1934 Act; and 5.7. All other documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the 1934 Act subsequent to the date of filing of the Registration Statement of which this Prospectus is a part and prior to the termination of the offering made hereby. The Company will provide without charge to each person to whom a copy of this Prospectus is delivered, upon the request of any such person, a copy of any or all of the documents which have been incorporated herein by reference, other than exhibits to such documents (unless such exhibits are specifically incorporated by reference into such documents). Requests for such documents should be directed to Sylvan Learning Systems, Inc., 9135 Guilford Road, Columbia,1000 Lancaster Street, Baltimore, Maryland 21046,21231, Attention: Chief Financial Officer, telephone: (410)880-0889. 843-8000. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. -2- THE COMPANY Sylvan Learning Systems, Inc. (the "Company" or "Sylvan") is a leading international private provider of educational and computer-based testing services. The Company delivers a broad array of supplemental and remedial educational services and computer-based testing through three principal divisions. Through its Core Educational Services division, the Company designs and delivers individualized tutorial services to school-age children through its 608 franchised and Company-owned Sylvan Learning Centers in 50 states, five Canadian provinces, and Hong Kong. The Company's Testing Services division administers computer-based tests for major corporations, professional associations and government agencies through its network of centers ("Technology Centers"), which are located throughout the world. In addition, the Company's Contract Educational Services division offers educational services to public and non-public school districts receiving funding under federal and state programs and provides contract educational and training services on-site to employees of large corporations. In 1995, total system-wide revenues were approximately $194.1 million, composed of $132.1 million from core educational services ($115.3 million from franchised Learning Centers and $16.8 million from Company- owned Learning Centers, product sales and franchise sales fees), $34.6 million from testing services and $27.4 million from contract educational services. Sylvan has developed a proprietary program that enables professionals throughout the Sylvan Learning Center network to deliver consistent, high quality, individualized tutoring. During the 15 years of Sylvan Learning Center operations, more than 600,000 students have completed the Sylvan tutorial program. From the end of 1991, during which year the current management of the Company assumed control, through 1995, average monthly royalties from franchised Learning Centers grew approximately 65%, primarily because of a wider array of services offered and increased student enrollment. Sylvan began providing computer-based testing services in 1992. The Company's testing services revenues grew from $3.6 million in 1993 to $34.6 million in 1995. With its acquisition of Drake Prometric, L.P. in December 1995, Sylvan has established a worldwide network of computer-based testing centers and has the current capacity to deliver more than 1.6 million computer- based tests annually through 1,218 Technology Centers. The Company serves as the exclusive commercial provider of computer-based standardized tests currently administered by Educational Testing Service ("ETS"), the leading educational testing organization in the United States. ETS develops and administers more than 9.5 million tests annually. The Company currently offers the Graduate Record Exam ("GRE"), the registered and practical nurses licensing exam ("NCLEX") and the National Teachers Exam (the "PRAXIS" series). Sylvan expects to begin offering the computer-based version of the Graduate Management Admissions Test ("GMAT"), the graduate business school entrance examination, in October 1997. In addition, the Company entered into a ten-year contract with ETS to develop test sites and provide computer-based testing internationally, and initial testing under this contract began in early 1995. ETS has stated its intention to make computer-based testing available through Sylvan in 170 countries by 1997. The Company also offers computer-based tests for organizations licensing or certifying pilots, airplane mechanics, life insurance agents and pathology laboratory technicians and recently began offering computer-based tests for Novell certification. Sylvan offers its educational services under contract to public and non- public school districts receiving funds under federal and state educational programs. The Company's revenues from contract educational services grew from $13.6 million to $27.4, or 102%, from 1994 to 1995. The Title I program, administered by the U.S. Department of Education, allocated approximately $6.6 billion during the 1995-96 school year to local school districts through state governments to provide supplemental and remedial educational services to academically and economically disadvantaged students attending public and non- public schools. As of December 31, 1995, the Company had contracts to provide remedial educational services to an aggregate of 52 public schools located in Baltimore and other Maryland school districts, the District of Columbia, Ohio, Pennsylvania, Texas, Florida, Minnesota, Delaware, New Jersey and, pursuant to a contract executed in July 1995, Chicago, Illinois. In addition, Sylvan offers its contract educational services to adults in the corporate workplace through its PACE subsidiary and its Sylvan-At-Work program. -3- The Company's principal executive offices are located at 9135 Guilford Road, Columbia, Maryland 21046, telephone (410) 880-0889; and, as of November 22, 1996, will be located at 1000 Lancaster Street, Baltimore, Maryland 21231,21202, (410)843-8000. USE OF PROCEEDS All of the proceeds from the sale of the shares of the Company's Common Stock offered hereby will be received by the Selling Stockholder.Stockholders. The Company will receive none of the proceeds from the sale of the shares of Common Stock. SELLING STOCKHOLDERSTOCKHOLDERS The following table sets forth information regarding the beneficial ownership of the Company's Common Stock by the Selling Stockholderpersons listed therein (the "Selling Stockholders") prior to this offering, the maximum number of shares of Common Stock to be sold by JLC Learning Corporation (the "Selling Stockholder")the Selling Stockholders hereby, and the beneficial ownership of the Company's Common Stock by the Selling StockholderStockholders after this offering, assuming that all shares of Common Stock offered hereby are sold.
Shares Beneficially Shares Beneficially Owned Prior to Share toOffering Shares Beneficially Offering Be Sole InTo Owned After Offering ---------------------- This ------------------------------------------------ Be Sold In ------------------------ Name and Address of Selling StockholderBeneficial This Owner(1) Number Percent Offering Number Percent - ----------------------------------------------------------------------- ------------ ----------- ------------ -------- ------- ----------- ------ ----------------- JLC Learning Corporation 544,486 2.3% 544,486Nicholas R. and Janet K. Eian........... 37,500 * 18,750 18,750 * c/o Rachel E. Soffer, Esq. Petersen, Tews & Squires, P.A. 4800 I D S Center, 80 S. 8th Street Minneapolis, MN 55402 Bruce L. Goldman (1)(2)................. 153,902 * 126,676 27,226 * Jill E. Becker (1)...................... 136,393 * 126,677 9,717 * Kathy J. Taslitz (1)(2)................. 109,348 * 99,631 9,717 * K JT Annuity Trust U/A/D/12/15/93(1).... 27,046 * 27,046 -- -- 9920 Pacific Heights Boulevard, San Diego, California 92121The Baltimore Children's Museum, Inc.... 4,795 * 4,795 -- -- 34 Market Plaza, Suite 905 Baltimore, Maryland 21202 - -------------
* Less than 1%. (1) The Selling Stockholderaddress of this stockholder is c/o Goldman Acquisition Corp., 650 Dundee Road, Northbrook, Illinois 60062. (2) Excludes shares held of record by the KJT Annuity Trust U/A/D/12/15/93, as to which Mr. Goldman and Ms. Taslitz disclaim beneficial ownership. Mr. Goldman and Mr. Steven Taslitz, Ms. Taslitz's husband, serve as co-trustees of the KJT Annuity Trust U/A/D/12/15/93. Nicholas R. and Janet K. Eian (the "Jannick Stockholders") acquired itstheir shares of Common Stock pursuant to a Securities Purchasean Agreement (the "JLC Agreement"), datedand Plan of Reorganization effective as of NovemberOctober 1, 1996 (the "Jannick Agreement"), by and among the Company, the Selling Stockholder, JLC Holdings, Inc.Jannick Education Corporation ("Holdings"Jannick") and Software Systems Corp.the Jannick Stockholders, as sole stockholders of Jannick. -4- Pursuant to the JLCJannick Agreement, Jannick was merged with and into the Company, purchased 20,600 shares of Series A Preferred Stockand the Company acquired all of the Selling Stockholder and a warrant exercisableoutstanding stock of Jannick from the Jannick Stockholders in exchange for 25,000 shares of Common Stock of Holdings and was assignedthe Company, all of which are being offered in this Prospectus, as required by the Selling Stockholder allJannick Agreement. [As a result of the shares of Preferred Stock of Academic Systems Corporation owned by the Selling Stockholder (collectively, the "JLC Securities") atCompany's acquisiton, Ms. Janet K. Eian became and continues to be an aggregate purchase price of $20,600,000. The purchase price was paid $5,000,000 in cash and 544,486 shares of Common Stock. The number of shares of Common Stock issued to the Selling Stockholder pursuant to the JLC Agreement (the "Shares") represents that number of shares of Common Stock needed to generate net proceeds of $15,600,000 to the Selling Stockholder, after payment by the Selling Stockholder of sales commissions. The Company agreed to file a Registration Statement covering allemployee of the Shares as soon as practicable after consummation of its purchaseCompany.][Neither of the JLC Securities. NoJannick Stockholders nor any of their affiliates is an officer, director, employee or affiliate of the Selling Stockholder is employed by or an affiliate of the Company.] Mr. Bruce Goldman, Ms. Jill E. Becker, Ms. Kathy J. Taslitz and the KJT Annuity Trust U/A/D/12/15/93 (collectively, the "Goldman Stockholders") acquired an aggregate of 380,030 shares of Common Stock pursuant to the Agreement and Plan of Reorganization by and between Goldman Acquisition Corp. ("Goldman"), the Company and the stockholders of Goldman (the "Goldman Agreement"). Pursuant to the Goldman Agreement, Sylvan acquired all of the assets and certain liabilities of Goldman in exchange for 633,383 shares of Sylvan Common Stock, immediately after which Goldman was dissolved and the shares of Sylvan Common Stock were distributed to the Goldman Stockholders and Messrs. Douglas L. Becker and R. Christopher Hoehn-Saric, the other stockholders of Goldman. Messrs. Becker and Hoehn-Saric are Co-Chief Executive Officers of Sylvan. Upon its dissolution, Goldman distributed 126,676 shares of Sylvan Common Stock to each of Messrs.Becker and Hoehn-Saric, none of which are being offered hereby. All shares of Sylvan Common Stock distributed by Goldman to the Goldman Stockholders pursuant to the Goldman Agreement are being offered in this Prospectus, as required by the Goldman Agreement. The Baltimore Children's Museum, Inc. acquired the shares of Sylvan Common Stock it is offering hereby on October 2, 1996, as a gift from the 1995 Nasser J. Kazeminy Revocable Trust, a trust controlled by Mr. Nasser J. Kazeminy, a principal stockholder of Sylvan. PLAN OF DISTRIBUTION The Company's Common Stock is quoted on the Nasdaq National Market under the symbol "SLVN." The Selling Stockholders may from time to time sell shares of Common Stock offered hereby in transactions on the Nasdaq Stock Market, in privately-negotiated transactions or otherwise, in each case at negotiated prices. The broker-dealers through or to whom the shares of Common Stock offered hereby may be sold may be deemed "underwriters" within the meaning of the Securities Act of 1933, in which event, all brokerage commissions or discounts and other compensation received by such broker-dealer may be deemed underwriting compensation. The Common Stock offered hereby will be sold by the Selling StockholderStockholders acting as principal for itstheir own account, and the Company will not receive any of theno proceeds from the sale by the Selling Stockholder of the Common Stock offered hereby. Any or all of the shares of Common Stock may be sold from time to time (i) to or through underwriters or dealers, (ii) directly to one or more other purchasers, (iii) through agents on a best-efforts basis, or (iv) through a combination of any such methods of sale. The shares of the Common Stock offered hereby may be sold from time to time by the Selling Stockholder, or by transferees or other successors in interest. Such sales may be made in the over-the-counter market, or otherwise at prices and at terms then prevailing or at prices related to the then current market price, or in negotiated transactions. Any or all of the shares of Common Stock offered hereby may be sold by one or more of the following:P (a) a block trade in which the broker or dealer so engaged will attempt to sell the Shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; (b) purchases by a broker or dealer as principal and resale by such broker or dealer for its account pursuant to this Prospectus; (c) an exchange distribution in accordance with the rules of such exchange; and (d) ordinary brokerage transactions and transactions in which the broker solicits purchasers. In effecting sales, brokers or dealers engaged by the Selling Stockholder may arrange for other brokers or dealers to participate. Brokers or dealers will receive commissions or discounts from Selling Stockholder in amounts to be negotiated prior to the sale. In addition, any securities covered by this Prospectus which qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this Prospectus.offering. The Selling Stockholder and any such underwriters, dealers or agents that participate in the distribution of the Common Stock may be deemed to be underwriters within the meaning of the 1933 Act, and any profit on the sale of the Common Stock by them and any discounts, commissions or concessions received by them may be deemed to be underwriting discounts and commissions under the 1933 Act. The Commons Stock may be sold from time to time in one or more transactions at a fixed offering price, which may be changed, or at varying prices determined at the time of sale or at negotiated prices. Such prices will be determined by the Selling Stockholder and underwriters or dealers. Brokers or dealers acting in connection with the sale of Common Stock contemplated by this Prospectus may receive fees or commissions in connection therewith. At the time a particular offer of Common Stock is made, to the extent required, a supplement to this Prospectus will be distributed which will identify and set forth the aggregate number of shares of Common Stock being offered and the terms of the offering, including the name or names of any underwriters, dealers or agents, the purchase price paid by any underwriter for Common Stock purchased from the Selling Stockholder, any discounts, commissions and other items constituting compensation from the Selling Stockholder and/or the Company and any discounts, commissions or concessions allowed or reallowed or paid to dealers, including the proposed selling price to the public. Such supplement to this Prospectus and, if necessary, a post-effective amendment to the Registration Statement of which this Prospectus is a part, will be filed with the Commission to reflect the disclosure of additional information with respect to the distribution of the Common Stock. -4- The Selling StockholderStockholders will pay all applicable stock transfer taxes, transfer fees and brokerage commissions or discounts. The Company has agreed to bear the cost of preparing the Registration Statement of which this Prospectus is a part and all filing fees and legal and accounting expenses in connection with registration of the shares of Common Stock offered by the Jannick Stockholders hereby under federal and state securities laws.laws (the "Registration Fees"). The Company hasGoldman Stockholders have agreed to indemnifypay the Selling Stockholder and certain other persons against certain liabilities, inclding liabilities arising underCompany that portion of the 1933 Act.Registration Fees that are attributable to the shares of Common Stock being offered hereby by the Goldman Stockholders. LEGAL MATTERS The legality of the shares offered hereby has been passed upon for the Company by Piper & Marbury L.L.P., Baltimore, Maryland. EXPERTS The consolidated financial statements and schedule of Sylvan Learning Systems, Inc. appearing in the Annual Report of Sylvan Learning Systems, Inc. (Form 10-K) for the year ended December 31, 1995 have been audited by Ernst & Young LLP, independent auditors, as set forth in their report thereon included therein and incorporated herein by reference. Such consolidated financial statements have been incorporated herein by reference in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing. -5- ========================================================================================================================================================= 398,780 Shares SYLVAN LEARNING SYSTEMS, INC. Common Stock PROSPECTUS , 1997 No person has been authorized by the Company to give any information or to make any representations other than those contained in this Prospectus in connection with the offer contained in this Prospectus, and if given or made, such information or representations may not be relied upon as having been authorized by the Company. This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in any jurisdiction in which such offer or solicitation is not authorized, or in which the person making such offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such offer or solicitation. Neither the delivery of this Prospectus nor any sale made hereunder shall create an implication that there has been no change in the affairs of the Company since the date hereof. _____________________________------------------------------- TABLE OF CONTENTS
PAGE ---- Available Information .................................... 2 Incorporation of Certain Documents by Reference .......... 2 The Company .............................................. 3 Use of Proceeds .......................................... 4 Selling Stockholder ...................................... 4 Plan of Distribution ..................................... 4 Legal Matters ............................................Page ---- Available Information..................................................... 2 Incorporation of Certain Documents by Reference................................................... 2 The Company............................................................... 3 Use of Proceeds........................................................... 4 Selling Stockholders...................................................... 4 Plan of Distribution...................................................... 4 Legal Matters............................................................. 5 Experts................................................................... 5 Experts .................................................. 5
544,486 SHARES SYLVAN LEARNING SYSTEMS, INC. COMMON STOCK PROSPECTUS NOVEMBER , 1996 ================================================================================ INFORMATION NOT REQUIRED IN PROSPECTUS ITEMItem 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.Other Expenses of Issuance and Distribution. The following table sets forth the expenses in connection with this Registration Statement. The Company will pay all expenses of the offering. All of such expenses are estimates, other than the filing fees payable to the Securities and Exchange Commission.
Filing Fee-Securities and Exchange Commission..Commission.......... $ 5,930.003,565 Nasdaq Listing Fees............................ 10,889.72Fees.................................... 12,677 Fees and Expenses of Counsel................... 5,000.00Counsel........................... 7,500 Miscellaneous Expenses......................... 4,180.28 ---------- TOTAL $26,000.00 ----------Expenses................................. 1,258 ------- TOTAL................................................. $25,000 =======
ITEMItem 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.Indemnification of Directors and Officers. The Company's Charter provides that, to the fullest extent that limitations on the liability of directors and officers are permitted by the Maryland General Corporation Law, no director or officer of the Company shall have any liability to the Company or its stockholders for monetary damages. The Maryland General Corporation Law provides that a corporation's charter may include a provision which restricts or limits the liability of its directors or officers to the corporation or its stockholders for money damages except: (1) to the extent that it is provided that the person actually received an improper benefit or profit in money, property or services, for the amount of the benefit or profit in money, property or services actually received, or (2) to the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding. The Company's Charter and By-laws provide that the Company shall indemnify and advance expenses to its currently acting and its former directors to the fullest extent permitted by the Maryland General Corporation Law and that the Company shall indemnify and advance expenses to its officers to the same extent as its directors and to such further extent as is consistent with law. The Charter and By-laws provides that the Company will indemnify its directors and officers and may indemnify employees or agents of the Company to the fullest extent permitted by law against liabilities and expenses incurred in connection with litigation in which they may be involved because of their offices with the Company. In addition, the Company's Charter provides that its directors and officers will not be liable to stockholders for money damages, except in limited instances. However, nothing in the Charter or By-laws of the Company protects or indemnifies a director, officer, employee or agent against any liability to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office. To the extent that a director has been successful in defense of any proceeding, the Maryland General Corporation Law provides that he shall be indemnified against reasonable expenses incurred in connection therewith. II-1 ITEMItem 16. EXHIBITS.
Exhibits. Exhibit No. Description - ----------- ----------- 3.1 Articles of Amendment and Restatement* 3.2 Articles Supplementary for Series A Junior Participating Preferred Stock 3.2 Amended and Restated By-Laws* 4.1 Specimen Stock Certificate* 4.2 Stockholders' Agreement dated as of January 26, 1993 by and among the Registrant, Certain Stockholders and the Investors named therein.* 4.3 Agreement and Plan of Reorganization dated as of October 1, 1996 by and among the Registrant, Jannick Education Corporation and the stockholders named therein. 4.4 Agreement and Plan of Reorganization dated as of January 31, 1997 by and among the Registrant, Goldman Acquisition Corp. and the stockholders named therein.* 4.3 Securities Purchase Agreement dated as of November 1, 1996 by and among the Registrant, JLC Learning Corporation, JLC Holdings, Inc. Software Systems Corp.** 5.1 Opinion of Piper & Marbury L.L.P. regarding the legality of the securities being registered. 23.1 Consent of Ernst & Young LLP.
23.2 Consent of Piper & Marbury L.L.P. (included in Exhibit 5.1) 24.1 Power of Attorney (included on signature page) - ----------------------------- * Incorporated by reference from the Registrant's Registration Statement on Form S-1 (No. 33-69558), filed on September 28, 1993. ** To be filed by amendment. ITEMItem 17. UNDERTAKINGS.Undertakings. (a) The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (b) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suite or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has II-2 been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. (c) The undersigned Registrant hereby undertakes that: (1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this Registration Statement in reliance upon Rule 430A and II-2 contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this Registration Statement as of the time it was declared effective. (2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (d) The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement; (i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act"); (ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; (iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs in contained in periodic reports filed by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") that are incorporated by reference in the registration statement. (2) That for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. II-3 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement or Amendment to be signed on its behalf by the undersigned, thereunto duly authorized, in Columbia,Baltimore, Maryland, on this 13th6th day of November, 1996.February, 1997. SYLVAN LEARNING SYSTEMS, INC. By /s/ R. Christopher Hoehn-Saric ---------------------------------------------------------------------------- R. Christopher Hoehn-Saric, Chairman of the Board and Co-Chief Executive Officer Know all men by these presents, that each person whose signature appears below constitutes and appoints R. Christopher Hoehn-Saric and Douglas L. Becker (with full power to each of them to act alone) as his true and lawful attorney- in-fact and agent, with full power of substitution, for him and in his name, place and stead in any and all capacities to sign any or all amendments or post- effective amendments to this Registration Statement, including post-effective amendments filed pursuant to Rule 462(b) of the Securities Act of 1933, as amended, and to file the same with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, to sign any and all applications, registration statements, notices or other document necessary or advisable to comply with the applicable state securities laws, and to file the same, together with all other documents in connection therewith, with the appropriate state securities authorities, granting unto said attorneys- in-fact and agents or any of them, or their or his substitute or substitutes, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, thereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.
Signature Title Date --------- ----- --------- Co-Chief Executive Officer and Chairman of the Board of /s/ R. Christopher Hoehn-Saric Board of Directors November 13, 1996 - ------------------------------ (Principal Executive Officer) February 6, 1997 - ------------------------------ R. Christopher Hoehn-Saric Co-Chief Executive Officer President, /s/ Douglas L. Becker President, Secretary and November 13, 1996Director February 6, 1997 - ------------------------------ Director--------------------------- Douglas L. Becker Chief Financial Officer (Principal Financial /s/ B. Lee McGee (Principal Financial and November 13, 1996 - ------------------------------ Accounting Officer) February 6, 1997 - --------------------------- B. Lee McGee /s/ Donald V. Berlanti Director November 13, 1996February 6, 1997 - -------------------------------------------------------- Donald V. Berlanti Director November , 19961997 - -------------------------------------------------------- R. William Pollock Director November , 19961997 - -------------------------------------------------------- Patrick A. Hopf
II-4
Signature Title Date --------- ----- ---- /s/ J. Phillip Samper Director November 13, 1996, 1997 - -------------------------- J. Phillip Samper /s/ Nancy A. Cole Director November 13, 1996February 6, 1997 - -------------------------- Nancy A. Cole /s/ James H. McGuire Director November 13, 1996February 6, 1997 - -------------------------- James H. McGuire
II-5 EXHIBIT INDEX
Sequentially Exhibit No. Description Numbered Page - ----------- ----------- ------------- 3.1 Articles of Amendment and Restatement* 3.2 Articles Supplementary for Series A Junior Participating Preferred Stock 3.3 Amended and Restated By-Laws* 4.1 Specimen Stock Certificate* 4.2 Stockholders' Agreement dated as of January 26, 1993 by and among the Registrant, Certain Stockholders and the Investors named therein.* 4.3 Securities Purchase Agreement and Plan of Reorganization dated as of NovemberOctober 1, 1996 by and among the Registrant, JLC LearningJannick Education Corporation JLC Holdings, Inc. and Software Systemsthe stockholders named therein. 4.4 Agreement and Plan of Reorganization dated as of January 31, 1997 by and among the Registrant, Goldman Acquisition Corp.** and the stockholders named therein. 5.1 Opinion of Piper & Marbury L.L.P. regarding the legality of the securities being registered. 23.1 Consent of Ernst & Young LLP. ---------------------------------------L.L.P. 23.2 Consent of Piper & Marbury L.L.P. (included in Exhibit 5.1) 24.1 Power of Attorney (included on signature page) - -------------------
* Incorporated by reference from the Registrant's Registration Statement on Form S-1 (No. 33-69558), filed on September 28, 1993. ** To be filed by amendment. II-6