Document:

First Amendment to Amended and Restated Credit Agreement by and among the Compan

 Exhibit 10.1 
 EXECUTION VERSION 
 FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT 
 THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”) is entered
into as of March 9, 2011, by and among The Princeton Review, Inc. (“TPR”), Penn Foster, Inc. (“PG”; and together with TPR, each individually a “Borrower” and collectively, the
“Borrowers”), the Guarantors party hereto, the Lenders (as defined below) party hereto, and General Electric Capital Corporation (“GE Capital”), as Administrative Agent and Collateral Agent for the Lenders and the
L/C Issuers (in such capacity, the “Administrative Agent”). 
 RECITALS 

A. Borrowers, the other Loan Parties signatory thereto, the Lenders signatory thereto from time to time and the Administrative Agent are
parties to that certain Amended and Restated Credit Agreement, dated as of August 6, 2010 (the “Credit Agreement”). 
 B. Borrowers have requested that the Lenders amend the Credit Agreement in certain respects and the Required Lenders have agreed to amend the Credit Agreement, subject to the terms and conditions hereof.

 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and intending to be legally
bound, the parties hereto agree as follows: 
 A. AMENDMENTS 

1. Amendment to Section 1.1. Section 1.1 of the Credit Agreement is amended by replacing the definitions of
“Applicable Margin”, “Consolidated EBITDA”, “Consolidated Fixed Charge Coverage Ratio” and “Excess Cash Flow” in their entirety with the following: 

“Applicable Margin” means, with respect to Revolving Loans, Swing Loans and the Term
Loans, a percentage equal to (a) during the period prior to the First Amendment Effective Date, the percentage applicable immediately prior to giving effect to the First Amendment, (b) from the First Amendment Effective Date and ending on
the date of delivery of the Financial Statements for the Fiscal Quarter ending June 30, 2011, the percentage set forth in the applicable column opposite Level I in the table set forth in clause (b) below and (c) thereafter, as
of each date of determination (and until the next such date of determination), a percentage equal to the percentage set forth below in the applicable column opposite the level corresponding to the Consolidated Total Leverage Ratio in effect as of
the last day of the most recently ended Fiscal Quarter: 
  

											
	 LEVEL
	  	 CONSOLIDATED TOTAL

LEVERAGE RATIO
	  	BASE RATE LOANS	 	 	EURODOLLAR RATE LOANS	 
	  	  	REVOLVING LOANS
AND TERM LOANS	 	 	REVOLVING LOANS
AND TERM LOANS	 
	 I
	  	Greater than or equal to 2.50 to 1.00	  	 	4.50	% 	 	 	5.50	% 
	 II
	  	Less than 2.50 to 1.00	  	 	4.00	% 	 	 	5.00	% 

 Each date of determination for the “Applicable Margin” shall be the date
that is 3 Business Days after delivery by the Borrower Representative to the Administrative Agent of a new Compliance Certificate pursuant to Section 6.1(d). Notwithstanding anything to the contrary set forth in this Agreement (including
the then effective Consolidated Total Leverage Ratio), the Applicable Margin shall equal the percentage set forth in the appropriate column opposite Level I in the table above, effective immediately upon (x) the occurrence of any Event of
Default under Section 9.1(e)(ii) or (y) the delivery of a notice by the Administrative Agent or the Required Lenders to the Borrower Representative during the continuance of any other Event of Default and, in each case, for as long
as such Event of Default shall be continuing. 
 “Consolidated EBITDA” means, with respect to
any Person for any period, (a) the Consolidated Net Income of such Person for such period plus (b) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income but without duplication, (i) any
provision for United States federal income taxes or other taxes measured by income, (ii) Consolidated Interest Expense, amortization of debt discount and commissions and other fees and charges associated with Indebtedness, (iii) any loss
from extraordinary items, (iv) any depreciation, depletion and amortization expense, (v) any aggregate net loss on the Sale of property outside the ordinary course of business, (vi) any other non-cash expenditure, charge or loss for
such period (other than any non-cash expenditure, charge or loss relating to write-offs, write-downs or reserves with respect to accounts receivable and inventory), including the amount of any compensation deduction as the result of any grant of
Stock or Stock Equivalents to employees, officers, directors or consultants, (vii) restructuring amounts incurred (x) on or prior to December 31, 2010 in connection with the New York, New York office consolidation and the reduction in
the supplemental education services business in an aggregate amount not to exceed $5,100,000 and (y) as proposed by TPR in reasonable detail, approved by a third party auditor and as reasonably agreed to by the Administrative Agent in an
aggregate amount not to exceed $6,000,000 from January 1, 2011 through December 31, 2011, $4,500,000 from January 1, 2012 through December 31, 2012, and $4,500,000 in any trailing twelve month trailing period thereafter (or such
increased amount as approved by the Administrative Agent in its sole discretion) in periods thereafter for the purpose of normalizing EBITDA, including adjustments for system integration and upgrade costs, duplicate technology and related costs of
improving technology efficiencies, in each 

  
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case determined on a consolidated basis in accordance with GAAP, (viii) in connection with all Related Transactions, (A) (i) all financial advisory fees, accounting fees, legal
fees and other similar fees, transaction expenses and related out of pocket costs (to the extent not capitalized) incurred by all Group Members and (ii) non-recurring cash charges resulting from severance, restructuring, and integration
incurred within 12 months from the Original Closing Date as a result of the Acquisition as reasonably agreed to by the Administrative Agent and so long as such amounts in clauses (i) and (ii) do not exceed $14,100,000 in the aggregate, and
(B) an amount equal to the annualized cost savings implemented within 12 months from the Original Closing Date for headcount reductions and combined back office operations resulting from the Acquisition as reasonably agreed to by the
Administrative Agent and not to exceed $1,000,000 in the aggregate as set forth on Schedule B hereto, (ix) in connection with all Permitted Acquisitions (regardless of whether actually consummated)(or any other acquisition not meeting the
definition of “Permitted Acquisition” but as to which the Required Lenders had waived the relevant criteria set forth in the definition of “Permitted Acquisition”), (A) all financial advisory fees, accounting fees, legal
fees and other similar fees, transaction expenses and related out of pocket costs incurred by all Group Members, as reasonably agreed to by the Administrative Agent, and (B) non-recurring cash charges resulting from severance incurred within
the first 12 months of the date of such Permitted Acquisition in an amount not to exceed $500,000 in the aggregate and reasonably agreed to by the Administrative Agent and resulting therefrom and (x) start-up expenses as agreed to by the
Administrative Agent incurred in connection with or on behalf of other investments made in the Strategic Ventures in an aggregate amount not to exceed $7,500,000 in any trailing twelve month period ending on or prior to December 31, 2011 and
minus (c) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income and without duplication, (i) any credit for United States federal income taxes or other taxes measured by net income,
(ii) any interest income, (iii) any gain from extraordinary items and any other non-recurring gain, (iv) any aggregate net gain from the Sale of property (other than accounts (as defined in the applicable UCC) and inventory) out of
the ordinary course of business by such Person, (v) any other non-cash gain, including any reversal of a charge referred to in clause (b)(vi) above by reason of a decrease in the value of any Stock or Stock Equivalent, (vi) any other cash
payment in respect of expenditures, charges and losses that have been added to Consolidated EBITDA of such Person pursuant to clause (b)(vi) above in any prior period and (vii) any excess positive contributions to Consolidated Net Income from
the Strategic Ventures which are not Loan Parties exceeding 10% of Consolidated EBITDA in the aggregate or such higher amount as agreed to by the Administrative Agent. 

“Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person for any period, the ratio of
(a) Consolidated EBITDA of 

  
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such Person for such period minus Consolidated Capital Expenditures of such Person for such period (other than (i) Capital Expenditures from Permitted Reinvestments, (ii) Excluded
Capital Expenditures used to purchase Growth Capital Expenditures, (iii) Excluded Capital Expenditures used to make investments in or to purchase Strategic Ventures, (iv) Capital Expenditures in any trailing twelve month period ended on or
prior to December 31, 2012 in an amount equal to the amount of cash on the balance sheet, not to exceed $3,000,000 and (v) integration related Capital Expenditures in Fiscal Year 2010 and 2011 in an amount not to exceed $6,900,000 in the
aggregate, minus the total liability for United States federal income taxes and other taxes measured by net income actually payable by such Person in respect of such period to (b) the Consolidated Fixed Charges of such Person for such period.

 “Excess Cash Flow” means, for any period, (a) Consolidated EBITDA of TPR for such
period, minus (b) without duplication, (i) any cash principal payment on the Loans during such period (but only, in the case of payment in respect of Revolving Loans, to the extent that the Revolving Credit Commitments are permanently
reduced by the amount of such payment) other than any mandatory prepayment required pursuant to Section 2.8(a) because of the existence of Excess Cash Flow, (ii) any scheduled or other cash principal payment made by the Borrowers or any of
their Subsidiaries during such period on any Capitalized Lease Obligation or other Indebtedness (but only, if such Indebtedness may be reborrowed, to the extent such payment results in a permanent reduction in commitments thereof); provided that if
such payment is payment with respect to the Senior Subordinated Notes or the Junior Subordinated Notes, solely to the extent such payment is permitted by the applicable Subordination Agreement, (iii) any Capital Expenditure made by such Person
or any of its Subsidiaries during such period to the extent permitted by this Agreement, excluding any Excluded Capital Expenditures or any other Capital Expenditure to the extent financed through the incurrence of Capitalized Lease Obligations or
any long-term Indebtedness other than the Obligations and any Capitalized Lease Obligations, (iv) the Consolidated Cash Interest Expense of such Person for such period, (v) any cash losses from extraordinary items, (vi) any cash
payment made during such period to satisfy obligations for United States federal income taxes or other taxes measured by income, (vii) cash utilized for Permitted Investments described in Section 8.3(d) and (e), (viii) cash utilized
for Restricted Payments described in Section 8.5(c), (ix) restructuring amounts incurred (x) in periods in 2010 in connection with the New York, New York office consolidation and the reduction in the supplemental education services
business in an aggregate amount not to exceed $5,100,000 and (y) as proposed by TPR in reasonable detail, approved by a third party auditor and in an aggregate amount not to exceed $6,000,000 in periods in 2011 and $4,500,000 (or such increased
amount as approved by the Administrative Agent in its sole discretion) in periods thereafter for the purpose of normalizing EBITDA, including adjustments for system 

  
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integration and upgrade costs, duplicate technology and related costs of improving technology efficiencies, in each case determined on a consolidated basis in accordance with GAAP, (x) in
connection with all Related Transactions, (A) (i) all financial advisory fees, accounting fees, legal fees and other similar fees, transaction expenses and related out of pocket costs (to the extent not capitalized) incurred by all Group
Members and (ii) non-recurring cash charges resulting from severance, restructuring, and integration incurred within 12 months from the Original Closing Date as a result of the Acquisition as reasonably agreed to by the Administrative Agent and
so long as such amounts in clauses (i) and (ii) do not exceed $14,100,000 in the aggregate, and (B) an amount equal to the annualized cost savings implemented within 12 months from the Original Closing Date for headcount reductions
and combined back office operations resulting from the Acquisition as reasonably agreed to by the Administrative Agent and not to exceed $1,000,000, (xi) in connection with all Permitted Acquisitions (regardless of whether actually
consummated)(or any other acquisition not meeting the definition of “Permitted Acquisition” but as to which the Required Lenders had waived the relevant criteria set forth in the definition of “Permitted Acquisition”),
(A) all financial advisory fees, accounting fees, legal fees and other similar fees, transaction expenses and related out of pocket costs incurred by all Group Members, as reasonably agreed to by the Administrative Agent and
(B) non-recurring cash charges resulting from severance incurred within the first 12 months of the date of such Permitted Acquisition in an amount not to exceed $500,000 in the aggregate and reasonably agreed to by the Administrative Agent and
resulting therefrom, (xii) start-up expenses as agreed to by the Administrative Agent incurred in connection with or on behalf of other investments made in the Strategic Ventures in an aggregate amount not to exceed $7,500,000 in any trailing
twelve month period ending on or prior to December 31, 2011, (xiii) expenses incurred in cash in connection with or on behalf of or other cash investments in the Strategic Ventures other than any such expenses or investments made from the
proceeds of Excluded Stock Issuances and (xiv) any increase in the Working Capital of the Borrowers during such period (measured as the excess of such Working Capital at the end of such period over such Working Capital at the beginning of such
period) and plus (c) without duplication, (i) to the extent included in the calculation of Consolidated EBITDA pursuant to clause (b)(i) of the definition thereof, any provision for United States federal income taxes or other taxes
measured by net income and (ii) any decrease in the Working Capital of the Borrowers during such period (measured as the excess of such Working Capital at the beginning of such period over such Working Capital at the end thereof). 

  
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 2. Amendment to Section 1.1. Section 1.1 of the Credit Agreement is
further amended by inserting the following definitions in the appropriate alphabetical order: 

“Borrowing Availability” shall mean the lesser of (i) the amount by which the then effective
Revolving Credit Commitments exceed the aggregate Revolving Credit Outstandings at such time and (ii) the maximum amount of Revolving Loans that could be drawn on such date if after giving pro forma effect to such borrowing TPR would be in
compliance with the Consolidated Total Leverage Ratio of TPR then in effect (using Consolidated EBITDA for the most recently delivered financial statements) and the Consolidated Senior Leverage Ratio of TPR (using Consolidated EBITDA for the most
recently delivered financial statements). 
 “Cash Available” means, as of any date of
determination the sum of (i) Cash on Hand as of such date plus (ii) Borrowing Availability as of such date. 
 “Cash on Hand” means, as of any date of determination, with respect to TPR and its Subsidiaries the aggregate amount of cash and cash equivalents held in deposit and securities accounts
which are not subject to a pledge, security interest or Lien of any Person (other than Permitted Encumbrances) except the Administrative Agent and the Lenders and which are available for general operational purposes. 

“First Amendment” means that certain First Amendment to Credit Agreement, dated as of March 9, 2011.

 “First Amendment Effective Date” means March 9, 2011. 

3. Amendment to Section 5.1. Section 5.1 of the Credit Agreement is amended by replacing such
Section 5.1 in its entirety with the following: 
 Section 5.1 Maximum Consolidated Total
Leverage Ratio TPR shall not have, on the last day of each Fiscal Quarter, a Consolidated Total Leverage Ratio greater than the maximum ratio set forth opposite such Fiscal Quarter: 

 

			
	 FISCAL QUARTER ENDING
	  	MAXIMUM
CONSOLIDATED TOTAL
LEVERAGE RATIO
	 December 31, 2010
	  	4.00 to 1
	 March 31, 2011 through and

including June 30, 2011
	  	4.50 to 1
	 September 30, 2011
	  	4.40 to 1
	 December 31, 2011
	  	4.25 to 1
	 March 31, 2012
	  	3.75 to 1
	 June 30, 2012
	  	3.50 to 1
	 September 30, 2012
	  	3.25 to 1
	 December 31, 2012
	  	3.00 to 1
	 March 31, 2013
	  	2.75 to 1
	 June 30, 2013
	  	2.50 to 1
	 September 30, 2013
	  	2.25 to 1
	 December 31, 2013 through and

including September 30, 2014
	  	2.00 to 1

  
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 4. Amendment to Section 5.2. Section 5.2 of the Credit Agreement is
amended by replacing such Section 5.2 in its entirety with the following: 
 Section 5.2
Maximum Consolidated Senior Leverage Ratio. Borrower shall not have, on the last day of each Fiscal Quarter, a Consolidated Senior Leverage Ratio greater than the maximum ratio set forth opposite such Fiscal Quarter: 

 

			
	 FISCAL QUARTER ENDING
	  	MAXIMUM
CONSOLIDATED SENIOR
LEVERAGE 
RATIO
	 December 31, 2010 through and

including September 30, 2011
	  	2.25 to 1
	 December 31, 2011
	  	2.10 to 1
	 March 31, 2012
	  	1.75 to 1
	 June 30, 2012 through and

including September 30, 2012
	  	1.50 to 1
	 December 31, 2012 through and

including March 31, 2013
	  	1.25 to 1
	 June 30, 2013 through and

including March 31, 2014
	  	1.00 to 1
	 June 30, 2014
	  	0.75 to 1
	 September 30, 2014
	  	0.50 to 1

 5. Amendment
to Article 5. Article 5 of the Credit Agreement is amended by adding the following new Section 5.6 to such Article: 
 5.6 Minimum Liquidity. Commencing with the first Fiscal Quarter most recently ended after the First Amendment Effective Date, TPR shall not permit Cash Available as of the last day of any Fiscal
Quarter to be less than $4,500,000. 

  
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 6. Amendment to Section 6.1. Section 6.1 of the Credit Agreement is amended
by replacing Section 6.1(b) and (d) in their entirety with the following: 
 (b) Quarterly
Reports As soon as available, and in any event within 45 days after (i) the end of each Fiscal Quarter for the first three Fiscal Quarters of each Fiscal Year, the Consolidated unaudited balance sheet of TPR as of the close of such Fiscal
Quarter and related Consolidated statements of operations and cash flow for such Fiscal Quarter and that portion of the Fiscal Year ending as of the close of such Fiscal Quarter, setting forth in comparative form the figures for the corresponding
periods in the prior Fiscal Year and the figures contained in the latest Projections, in each case, certified by a Responsible Officer of TPR as fairly presenting in all material respects the Consolidated financial position, results of operations
and cash flow of TPR as at the dates indicated and for the periods indicated in accordance with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments), and (ii) the end of the last Fiscal Quarter of each
Fiscal Year, a draft management prepared Consolidated unaudited balance sheet of TPR as of the close of such Fiscal Quarter and related Consolidated statements of operations and cash flow for such Fiscal Quarter and that portion of the Fiscal Year
ending as of the close of such Fiscal Quarter, setting forth in comparative form the figures for the corresponding periods in the prior Fiscal Year and the figures contained in the latest Projections, in each case, fairly presenting in all material
respects the Consolidated financial position, results of operations and cash flow of TPR as at the dates indicated and for the periods indicated in accordance with GAAP (subject to the absence of footnote disclosure and normal year-end audit
adjustments). 
 (d) Compliance Certificate/Minimum Liquidity Certificate. Together with each delivery of
any Financial Statement pursuant to clause (b)(i) or (c) above, a Compliance Certificate duly executed by a Responsible Officer of the Borrower Representative that, among other things, (i) shows in reasonable detail the calculations used
in determining the financial covenants set forth in Article 5 and, if delivered together with any Financial Statement pursuant to clause (c) above, the calculations used in determining Excess Cash Flow, (ii) demonstrates compliance with
each financial covenant contained in Article 5 that is tested at least on a quarterly basis, (iii) states that no Default is continuing as of the date of delivery of such Compliance Certificate or, if a Default is continuing, states the nature
thereof and the action that the Borrowers propose to take with respect thereto, (iv) sets forth all Maintenance Capital Expenditures and Growth Capital Expenditures made during such period, (v) sets forth in reasonable detail all Strategic
Ventures expenditures and terms on a cumulative basis entered into during such period and (vi) sets forth the roll-forward balance of Excluded Stock Issuances for such period and the expenditures and terms thereof on a cumulative basis. Within
five (5) Business Days after the end of any Fiscal Quarter, Borrower shall deliver to Administrative Agent and Lenders a Certificate in the form of Exhibit I to the First Amendment (the “Minimum Liquidity Certificate”), signed by a
Responsible Officer of Borrower, certifying as to such minimum 

  
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liquidity amount together with electronic copies of any bank statements evidencing such minimum liquidity amount, such evidence to be in form and substance reasonably satisfactory to
Administrative Agent. 
 B. CONDITIONS TO EFFECTIVENESS 

Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is
understood and agreed that this Amendment shall not become effective, and Borrowers shall have no rights under this Amendment, until the Administrative Agent shall have received each of the following: 

(a) duly executed signature pages to this Amendment from the Required Lenders, Borrowers, the Administrative Agent and each Loan Party;

 (b) a fully executed copy of the First Amendment to the Senior Subordinated Notes Indenture, which shall be in full force and
effect on the date hereof and shall be in form and substance reasonably satisfactory to the Administrative Agent; 
 (c) payment
in full in cash of an amendment fee payable to each Lender executing this Amendment the date it becomes effective in an amount equal to 50 basis points of (i) the outstanding principal amount of the Term Loan held by such Lender as of the date
hereof plus (ii) such Lender’s Pro Rata Share of the Revolving Credit Commitments as of the date hereof (the “Senior Amendment Fee”); provided, however, if a fee in excess of the Senior Amendment Fee (as a
percentage of (i) the outstanding principal amount of the Term Loan as of the date hereof plus (ii) the Revolving Credit Commitments as of the date hereof) shall become due and payable in connection with the First Amendment to the Senior
Subordinated Notes Indenture or the Junior Subordinated Securities Purchase Agreement (the “Subordinated Amendment Fee”), then the Senior Amendment Fee shall automatically be increased to the amount by which such Subordinated
Amendment Fee exceeds the Senior Amendment Fee; and 
 (g) payment in full in cash of all reasonable and documented
out-of-pocket fees and expenses of the Administrative Agent and the Lenders owing as of the date hereof, including all reasonable fees and expenses of counsel to the Administrative Agent and the Lenders. 

C. REPRESENTATIONS 
 Each Loan Party hereby represents and warrants to the Lenders and Agent that: 
 1.
The execution, delivery and performance by such Loan Party of this Amendment (a) are within such Loan Party’s corporate or similar powers and, at the time of execution hereof, have been duly authorized by all necessary corporate and
similar action (including, if applicable, consent of holders of its Securities); (b) do not (i) contravene such Loan Party’s Constituent Documents, (ii) violate any applicable material Requirement of Law, (iii) conflict
with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material Contractual Obligation of any Loan Party or any of its Subsidiaries (including other Related Documents or Loan Documents)
other than those that 

  
 9 

 
would not, in the aggregate, have a Material Adverse Effect and are not created or caused by, or constitute a conflict, breach, default or termination or acceleration event under, any Loan
Document or (iv) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries; and (c) do not require any Permit of, or filing with, any Governmental Authority or any
consent of, or notice to, any Person, other than (i) with respect to the Loan Documents, the filings required to perfect the Liens created by the Loan Documents, (ii) those listed on Schedule 1 hereto and that have been, or
will be prior to the First Amendment Effective Date, obtained or made, copies of which have been, or will be prior to the First Amendment Effective Date, delivered to the Administrative Agent, and each of which on the Closing Date will be in full
force and effect and (iii) those that, if not obtained, would not, in the aggregate, have a Material Adverse Effect. 
 2.
This Amendment has been duly executed and delivered for the benefit of or on behalf of each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except
as the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights and remedies in general; and 
 3. Both before and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing as of the date hereof. 

D. OTHER AGREEMENTS 
 1. Continuing Effectiveness of Loan Documents. As amended hereby, all terms of the Credit Agreement and the other Loan Documents shall be and remain in full force and effect and shall constitute
the legal, valid, binding and enforceable obligations of the Loan Parties party thereto. To the extent any terms and conditions in any of the other Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit
Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified and amended accordingly to reflect the terms and conditions of the Credit Agreement as modified and amended hereby. Upon the effectiveness of this
Amendment such terms and conditions are hereby deemed modified and amended accordingly to reflect the terms and conditions of the Credit Agreement as modified and amended hereby. 

2. Reaffirmation of Guaranty. Each Guarantor consents to the execution and delivery by Borrowers of this Amendment and the
consummation of the transactions described herein, and ratifies and confirms the terms of the Guaranty to which such Guarantor is a party with respect to the indebtedness now or hereafter outstanding under the Credit Agreement as amended hereby and
all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of Borrowers to the Lenders or any other obligation of
Borrowers, or any actions now or hereafter taken by the Lenders with respect to any obligation of Borrowers, the Guaranty to which such Guarantor is a party (i) is and shall continue to be a primary obligation of such Guarantor, (ii) is
and shall continue to be an absolute, unconditional, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms. Nothing contained herein to the contrary shall
release, discharge, modify, change or affect the original liability of any Guarantor under the Guaranty to which such Guarantor is a party. 

  
 10 

 3. Acknowledgment of Perfection of Security Interest. Each Loan Party hereby
acknowledges that, as of the date hereof, the security interests and liens granted to the Administrative Agent and the Lenders under the Credit Agreement and the other Loan Documents are in full force and effect, are properly perfected and are
enforceable in accordance with the terms of the Credit Agreement and the other Loan Documents. 
 4. Effect of Agreement.
Except as set forth expressly herein, all terms of the Credit Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of
Borrowers to the Lenders and the Administrative Agent. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders under the Credit
Agreement, nor constitute a waiver of any provision of the Credit Agreement. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement. 
 5. Governing Law. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America.

 6. No Novation. This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of
the Credit Agreement and the other Loan Documents or an accord and satisfaction in regard thereto. 
 7. Costs and
Expenses. Borrowers agree to pay on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable
and documented out-of-pocket costs expenses of outside counsel for Agent with respect thereto. 
 8. Counterparts. This
Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. Delivery of
an executed counterpart of this Amendment by facsimile transmission, Electronic Transmission or containing an E-Signature shall be as effective as delivery of a manually executed counterpart hereof. 

9. Binding Nature. This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective
successors, successors-in-titles, and assigns 
 10. Entire Understanding. This Amendment sets forth the entire
understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto. 

11. Release. Each Loan Party hereby releases, acquits, and forever discharges Agent and each of the Lenders, and each and every
past and present subsidiary, affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of the Administrative Agent and the Lenders, from any and all claims, causes of action, suits, debts,

  
 11 

 
liens, obligations, liabilities, demands, losses, costs and expenses (including reasonable attorneys’ fees) of any kind, character, or nature whatsoever, known or unknown, fixed or
contingent, which such Loan Party may have or claim to have now or which may hereafter arise out of or connected with any act of commission or omission of the Administrative Agent or the Lenders existing or occurring prior to the date of this
Amendment or any instrument executed prior to the date of this Amendment including, without limitation, any claims, liabilities or obligations arising with respect to the Credit Agreement or the other of the Loan Documents, other than claims,
liabilities or obligations caused by the Administrative Agent’s or any Lender’s own gross negligence or willful misconduct. The provisions of this paragraph shall be binding upon each Loan Party and shall inure to the benefit of the
Administrative Agent, the Lenders, and their respective heirs, executors, administrators, successors and assigns 

[remainder of page intentionally left blank; signature pages follow] 

  
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 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written
above. 
  

					
	BORROWERS:
	
	 THE PRINCETON REVIEW, INC.,
 AS A BORROWER

		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	EVP, CFO and Treasurer
	
	PENN FOSTER, INC., AS A BORROWER
		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	Vice President and Treasurer
	
	OTHER LOAN PARTIES:
	
	 PRINCETON REVIEW OPERATIONS, L.L.C.
AS GUARANTOR

		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	Vice President and Treasurer
	
	TEST SERVICES, INC. AS GUARANTOR
		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	Vice President and Treasurer
	
	 THE PRINCETON REVIEW OF ORANGE COUNTY, LLC
AS GUARANTOR

		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	Vice President and Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

 
					
	 PENN FOSTER EDUCATION GROUP, INC.
AS GUARANTOR

		
	By:	 	   /s/ Christian G. Kasper

		 	Name:	 	Christian G. Kasper
		 	Title:	 	Vice President and Treasurer

 
			
	ADMINISTRATIVE AGENT:
	
	GENERAL ELECTRIC CAPITAL CORPORATION, as Administrative Agent and Lender
		
	By:	 	 /s/ Laura S. DeAngelis

		 	Its Duly Authorized Signatory

[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

 
			
	FIFTEENTH INVESTMENT SPONSOR LIMITED, as Lender
	
	By: General Electric Capital Corporation, as Servicer
		
	By:	 	 /s/ Laura S. DeAngelis

		 	     Its Duly Authorized Signatory

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

 
									
		 	 GARRISON FUNDING 2010-1, LLC.,
 as Lender

			
		 	By:	 	 /s/ Julian Weldon

		 		 		 	Name:	 	Julian Weldon
		 		 		 	Title:	 	Authorized SignatoryThird Amendment to Senior Subordinated Note Purchase Agreement by and among the

 Exhibit 10.2 
 THIRD AMENDMENT TO SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT 
 THIS
THIRD AMENDMENT TO SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT (this “Amendment”) is entered into as of March 9, 2011, by and among The Princeton Review, Inc., a Delaware corporation
(“TPR”), Penn Foster, Inc., a Pennsylvania corporation (“PF”, and together with TPR, collectively, the “Issuer”), the guarantors party hereto (the
“Guarantors”) and the Purchasers party hereto (the “Purchasers”). 
 RECITALS

 A. The Issuer, the Guarantors, and the Purchasers are parties to that certain Senior Subordinated Note Purchase Agreement,
dated as of December 7, 2009, as amended by that certain First Amendment to Senior Subordinated Note Purchase Agreement dated as of April 23, 2010, and that certain Second Amendment and Joinder to Senior Subordinated Note Purchase
Agreement dated as of August 6, 2010 (the “NPA”). 
 B. The Issuer has requested that the
Purchasers amend the NPA in certain respects and the Purchasers have agreed to amend the NPA, subject to the terms and conditions hereof. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and intending to be legally bound, the parties hereto agree as follows: 

A. AMENDMENTS 
 1. Amendment to Section 1.1. Section 1.1 of the NPA is amended by replacing the definitions of “Consolidated EBITDA” and “Consolidated Fixed Charge Coverage
Ratio” in their entirety with the following: 
 “Consolidated EBITDA” means, with respect
to any Person for any period, (a) the Consolidated Net Income of such Person for such period plus (b) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income but without duplication, (i) any
provision for United States federal income taxes or other taxes measured by income, (ii) Consolidated Interest Expense, amortization of debt discount and commissions and other fees and charges associated with Indebtedness, (iii) any loss
from extraordinary items, (iv) any depreciation, depletion and amortization expense, (v) any aggregate net loss on the Sale of property outside the ordinary course of business, (vi) any other non-cash expenditure, charge or loss for
such period (other than any non-cash expenditure, charge or loss relating to write-offs, write-downs or reserves with respect to accounts receivable and inventory), including the amount of any compensation deduction as the result of any grant of
Stock or Stock Equivalents to employees, officers, directors or consultants, (vii) restructuring amounts incurred (x) on or prior to December 31, 2010 in connection with the New York, New York office consolidation and the reduction in
the supplemental education services business in an aggregate amount not to exceed $5,100,000 and (y) as proposed by TPR in reasonable detail, approved by a third party auditor and as reasonably agreed to by the Required Purchasers in an
aggregate amount not to exceed $6,000,000 from January 1, 2011 through December 31, 2011, $4,500,000 from January 1, 2012 through December 31, 2012, and $4,500,000 in any trailing twelve month period thereafter (in each case, or
such increased 

 
amount as approved by the Required Purchasers in their sole discretion) for the purpose of normalizing EBITDA, including adjustments for system integration and upgrade costs, duplicate technology
and related costs of improving technology efficiencies, in each case determined on a consolidated basis in accordance with GAAP, (viii) in connection with all Related Transactions, (A) (i) all financial advisory fees, accounting fees,
legal fees and other similar fees, transaction expenses and related out of pocket costs (to the extent not capitalized) incurred by all Group Members and (ii) non-recurring cash charges resulting from severance, restructuring, and integration
incurred within 12 months from the Closing Date as a result of the Acquisition as reasonably agreed to by the Required Purchasers and so long as such amounts in clauses (i) and (ii) do not exceed $14,100,000 in the aggregate, and
(B) an amount equal to the annualized cost savings implemented within 12 months from the Closing Date for headcount reductions and combined back office operations resulting from the Acquisition as reasonably agreed to by the Required Purchasers
and not to exceed $1,000,000 in the aggregate as set forth on Schedule B hereto, (ix) in connection with all Permitted Acquisitions (regardless of whether actually consummated) (or any other acquisition not meeting the definition of
“Permitted Acquisition” but as to which the Required Purchasers had waived the relevant criteria set forth in the definition of “Permitted Acquisition”), (A) all financial advisory fees, accounting fees, legal fees and other
similar fees, transaction expenses and related out of pocket costs incurred by all Group Members, as reasonably agreed to by the Required Purchasers, and (B) non-recurring cash charges resulting from severance incurred within the first 12
months of the date of such Permitted Acquisition in an amount not to exceed $500,000 in the aggregate and reasonably agreed to by the Required Purchasers and resulting therefrom and (x) start-up expenses as agreed to by the Required Purchasers
incurred in connection with or on behalf of other investments made in the Strategic Ventures in an aggregate amount not to exceed $7,500,000 in any trailing twelve month period ending on or prior to December 31, 2011 and minus (c) the sum
of, in each case to the extent included in the calculation of such Consolidated Net Income and without duplication, (i) any credit for United States federal income taxes or other taxes measured by net income, (ii) any interest income,
(iii) any gain from extraordinary items and any other non-recurring gain, (iv) any aggregate net gain from the Sale of property (other than accounts (as defined in the applicable UCC) and inventory) out of the ordinary course of business
by such Person, (v) any other non-cash gain, including any reversal of a charge referred to in clause (b)(vi) above by reason of a decrease in the value of any Stock or Stock Equivalent, (vi) any other cash payment in respect of
expenditures, charges and losses that have been added to Consolidated EBITDA of such Person pursuant to clause (b)(vi) above in any prior period and (vii) any excess positive contributions to Consolidated Net Income from the Strategic Ventures
which are not Loan Parties exceeding 10% of Consolidated EBITDA in the aggregate or such higher amount as agreed to by the Required Purchasers. 
 “Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person for any period, the ratio of (a) Consolidated EBITDA of such Person for such period minus Consolidated
Capital Expenditures of such Person for such period (other than (i) Capital Expenditures from Permitted Reinvestments, (ii) Excluded Capital Expenditures used to purchase Growth Capital Expenditures, (iii) Excluded Capital
Expenditures used to make investments in or to purchase Strategic Ventures, (iv) Capital Expenditures in any trailing twelve month period 

  
 2 

 
ended on or prior to December 31, 2012 in an amount equal to the amount of cash on the balance sheet, not to exceed $3,000,000 and (v) integration related Capital Expenditures in Fiscal
Year 2010 and 2011 in an amount not to exceed $6,900,000 in the aggregate, minus the total liability for United States federal income taxes and other taxes measured by net income actually payable by such Person in respect of such period to
(b) the Consolidated Fixed Charges of such Person for such period. 
 2. Amendment to Section 1.1.
Section 1.1 of the NPA is further amended by inserting the following definitions in the appropriate alphabetical order: 
 “Borrowing Availability” has the meaning specified in the Senior Credit Agreement as in effect on the date hereof. 

“Cash Available” means, as of any date of determination the sum of (i) Cash on Hand as of such date
plus (ii) Borrowing Availability as of such date. 
 “Cash on Hand” has the meaning
specified in the Senior Credit Agreement as in effect on the date hereof. 
 “PF” means Penn
Foster, Inc., a Pennsylvania corporation. 
 “Third Amendment” means that certain Third
Amendment to the Agreement, dated as of March 9, 2011. 
 “Third Amendment Effective Date”
means March 9, 2011. 
 “TPR” means The Princeton Review, Inc., a Delaware corporation.

 3. Amendment to Section 5.1. Section 5.1 of the NPA is amended by replacing such
Section 5.1 in its entirety with the following: 
 Section 5.1 Maximum Consolidated Total
Leverage Ratio TPR shall not have, on the last day of each Fiscal Quarter, a Consolidated Total Leverage Ratio greater than the maximum ratio set forth opposite such Fiscal Quarter: 

 

			
	 FISCAL QUARTER ENDING
	  	 MAXIMUM
CONSOLIDATED TOTAL
LEVERAGE
RATIO

	 December 31, 2010
	  	4.60 to 1:00
	 March 31, 2011 through and including June 30, 2011
	  	5.18 to 1:00
	 September 30, 2011
	  	5.06 to 1:00
	 December 31, 2011
	  	4.89 to 1:00
	 March 31, 2012
	  	4.30:1.00
	 June 30, 2012
	  	4.00:1.00
	 September 30, 2012
	  	3.75:1.00
	 December 31, 2012
	  	3.50:1.00
	 March 31, 2013
	  	3.15:1.00
	 June 30, 2013
	  	2.90:1.00
	 September 30, 2013
	  	2.60:1.00
	 December 31, 2013 through and including September 30, 2014 and each Fiscal Quarter
thereafter
	  	2.30:1.00

  
 3 

 5. Amendment to Article 5. Article 5 of the NPA is amended by adding the following
new Section 5.7 to such Article: 
 5.7 Minimum Liquidity. Commencing with the first Fiscal Quarter
most recently ended after the Third Amendment Effective Date, TPR shall not permit Cash Available as of the last day of any Fiscal Quarter to be less than $3,825,000. 
 6. Amendment to Section 6.1. Section 6.1 of the NPA is amended by replacing Sections 6.1 (b) and 6.1(d) in their entirety with the following: 

(b) Quarterly Reports. As soon as available, and in any event within 45 days after (i) the end of each Fiscal
Quarter for the first three Fiscal Quarters of each Fiscal Year, the Consolidated unaudited balance sheet of TPR as of the close of such Fiscal Quarter and related Consolidated statements of operations and cash flow for such Fiscal Quarter and that
portion of the Fiscal Year ending as of the close of such Fiscal Quarter, setting forth in comparative form the figures for the corresponding periods in the prior Fiscal Year and the figures contained in the latest Projections, in each case,
certified by a Responsible Officer of the Issuer as fairly presenting in all material respects the Consolidated financial position, results of operations and cash flow of TPR as at the dates indicated and for the periods indicated in accordance with
GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments), and (ii) the end of the last Fiscal Quarter of each Fiscal Year, a draft management prepared Consolidated unaudited balance sheet of TPR as of the close
of such Fiscal Quarter and related Consolidated statements of operations and cash flow for such Fiscal Quarter and that portion of the Fiscal Year ending as of the close of such Fiscal Quarter, setting forth in comparative form the figures for the
corresponding periods in the prior Fiscal Year and the figures contained in the latest Projections, in each case, fairly presenting in all material respects the Consolidated financial position, results of operations and cash flow of TPR as at the
dates indicated and for the periods indicated in accordance with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments). 
 (d) Compliance Certificate/Minimum Liquidity Certificate. Together with each delivery of any Financial Statement pursuant to clause (b) or (c) above, a Compliance Certificate duly
executed by a Responsible Officer of the Issuer that, among other things, (i) shows in reasonable detail the calculations used in determining the financial covenants set forth in Article 5 and, if delivered together with any Financial Statement
pursuant to clause (c) above, the calculations used in determining Excess Cash Flow, (ii) demonstrates compliance 

  
 4 

 
with each financial covenant contained in Article 5 that is tested at least on a quarterly basis, (iii) states that no Default is continuing as of the date of delivery of such Compliance
Certificate or, if a Default is continuing, states the nature thereof and the action that the Issuer proposes to take with respect thereto, (iv) sets forth all Maintenance Capital Expenditures and Growth Capital Expenditures made during such
period, (v) sets forth in reasonable detail all Strategic Ventures expenditures and terms on a cumulative basis entered into during such period and (vi) sets forth the roll-forward balance of Excluded Stock Issuances for such period and
the expenditures and terms thereof on a cumulative basis. Within five (5) Business Days after the end of any Fiscal Quarter, Issuer shall deliver to the Purchasers a Certificate in the form of Exhibit I to the Third Amendment (the “Minimum
Liquidity Certificate”), signed by a Responsible Officer of Issuer, certifying as to such minimum liquidity amount together with electronic copies of any bank statements evidencing such minimum liquidity amount, such evidence to be in form and
substance reasonably satisfactory to the Required Purchasers. 
 B. CONDITIONS TO EFFECTIVENESS 

Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Purchasers hereunder, it is
understood and agreed that this Amendment shall not become effective, and the Issuer shall have no rights under this Amendment, until the Purchasers shall have received each of the following: 

(a) duly executed signature pages to this Amendment from the Required Purchasers, Issuer, and each other Loan Party; 

(b) a fully executed copy of the First Amendment to the Senior Credit Agreement, which shall be in full force and effect on the date
hereof and shall be in form and substance reasonably satisfactory to the Required Purchasers; 
 (c) a fully executed copy of
the Third Amendment to the Securities Purchase Agreement, which shall be in full force and effect on the date hereof and shall be in form and substance reasonably satisfactory to the Required Purchasers; 

(d) [reserved]; and 
 (d) payment in full in cash of all reasonable and documented out-of-pocket fees and expenses of the Purchasers owing as of the date hereof, including all reasonable fees and expenses of counsel to the
Purchasers. 
 C. REPRESENTATIONS 
 Each Loan Party hereby represents and warrants to the Purchasers that: 
 1. The
execution, delivery and performance by such Loan Party of this Amendment (a) are within such Loan Party’s corporate or similar powers and, at the time of execution hereof, have been duly authorized by all necessary corporate and similar
action (including, if applicable, consent of holders of its Securities); (b) do not (i) contravene such Loan Party’s Constituent Documents, (ii) violate any applicable material Requirement of Law, (iii) conflict with,
contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material Contractual Obligation of any Loan Party or any of its Subsidiaries (including other Related Documents or Loan Documents) other
than 

  
 5 

 
those that would not, in the aggregate, have a Material Adverse Effect and are not created or caused by, or constitute a conflict, breach, default or termination or acceleration event under, any
Loan Document or (iv) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries; and (c) do not require any Permit of, or filing with, any Governmental Authority or
any consent of, or notice to, any Person, other than (i) those listed on Schedule 1 hereto and that have been, or will be prior to the Third Amendment Effective Date, obtained or made, copies of which have been, or will be prior to
the Third Amendment Effective Date, delivered to the Purchasers, and each of which on the Third Amendment Effective Date will be in full force and effect and (ii) those that, if not obtained, would not, in the aggregate, have a Material Adverse
Effect. 
 2. This Amendment has been duly executed and delivered for the benefit of or on behalf of each Loan Party and
constitutes a legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except as the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other
laws affecting creditors’ rights and remedies in general; and 
 3. Both before and after giving effect to this Amendment,
no Default or Event of Default has occurred and is continuing as of the date hereof. 
 4. Neither any Loan Party, nor any
Affiliate thereof, nor any director, officer or employee of any of the foregoing, has entered into any side agreement or understanding, either oral or written, including any agreement to pay any fee, with the Senior Agent or any Senior Lender in
connection with or in any way related to the First Amendment to the Senior Credit Agreement other than as explicitly set forth in the First Amendment to the Senior Credit Agreement or as otherwise disclosed to the Board of Directors of TPR.

 D. OTHER AGREEMENTS 
 1. Continuing Effectiveness of Loan Documents. As amended hereby, all terms of the NPA and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal,
valid, binding and enforceable obligations of the Loan Parties party thereto. To the extent any terms and conditions in any of the other Loan Documents shall contradict or be in conflict with any terms or conditions of the NPA, after giving effect
to this Amendment, such terms and conditions are hereby deemed modified and amended accordingly to reflect the terms and conditions of the NPA as modified and amended hereby. Upon the effectiveness of this Amendment such terms and conditions are
hereby deemed modified and amended accordingly to reflect the terms and conditions of the NPA as modified and amended hereby. 

2. Reaffirmation of Guaranty. Each Guarantor consents to the execution and delivery by Issuer of this Amendment and the
consummation of the transactions described herein, and ratifies and confirms the terms of the Guaranty to which such Guarantor is a party with respect to the indebtedness now or hereafter outstanding under the NPA as amended hereby and all
promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of Issuer to the Purchasers or any other obligation of Issuer, or
any actions now or hereafter taken by the Purchasers with respect to any obligation of Issuer, the Guaranty to which such Guarantor is a party (i) is and shall continue to be a primary obligation of such Guarantor, (ii) is and shall
continue to be an absolute, unconditional, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms. Nothing contained herein to the contrary shall release,
discharge, modify, change or affect the original liability of any Guarantor under the Guaranty to which such Guarantor is a party. 

  
 6 

 3. [Reserved]. 

4. Effect of Agreement. Except as set forth expressly herein, all terms of the NPA, as amended hereby, and the other Loan
Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of Issuer to the Purchasers. The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of the Purchasers under the NPA, nor constitute a waiver of any provision of the NPA. This Amendment shall constitute a Loan Document for all purposes of the NPA. 

5. Governing Law. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New
York and all applicable federal laws of the United States of America. 
 6. No Novation. This Amendment is not intended
by the parties to be, and shall not be construed to be, a novation of the NPA and the other Loan Documents or an accord and satisfaction in regard thereto. 
 7. Costs and Expenses. Issuer agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Purchasers in connection with the preparation, execution and delivery of this Amendment,
including, without limitation, the reasonable and documented out-of-pocket costs and expenses of outside counsel for the Purchasers with respect thereto. 
 8. Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken
together, shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile transmission, Electronic Transmission or containing an E-Signature shall be as effective as delivery of a
manually executed counterpart hereof. 
 9. Binding Nature. This Amendment shall be binding upon and inure to the benefit
of the parties hereto, their respective successors, successors-in-titles, and assigns 
 10. Entire Understanding. This
Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto. 

11. Release. Each Loan Party hereby releases, acquits, and forever discharges each of the Purchasers, and each and every past and
present subsidiary, affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of the Purchasers, from any and all claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs
and expenses (including reasonable attorneys’ fees) of any kind, character, or nature whatsoever, known or unknown, fixed or contingent, which such Loan Party may have or claim to have now or which may hereafter arise out of or connected with
any act of commission or omission of the Purchasers existing or occurring prior to the date of this Amendment or any instrument executed prior to the date of this Amendment including, without limitation, any claims, liabilities or obligations
arising with respect to the NPA or the other of the Loan Documents, other than claims, liabilities or obligations caused by any Purchaser’s own gross negligence or willful misconduct. The provisions of this paragraph shall be binding upon each
Loan Party and shall inure to the benefit of the Purchasers and their respective heirs, executors, administrators, successors and assigns. 
 [remainder of page intentionally left blank; signature pages follow] 

  
 7 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written
above. 
  

			
	THE PRINCETON REVIEW, INC., as ISSUER
		
	By:	 	 /s/ Christian G. Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	EVP, CFO and Treasurer

			
	
	PENN FOSTER, INC., as ISSUER
		
	By:	 	 /s/ Christian G.
Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	Vice President and Treasurer

 SIGNATURE PAGE TO
THE THIRD AMENDMENT TO THE PRINCETON REVIEW, INC. SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT 

 
			
	PRINCETON REVIEW OPERATIONS, L.L.C., as a GUARANTOR

			
		
	By:	 	 /s/ Christian G.
Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	Vice President and Treasurer
	
	TEST SERVICES, INC., as a GUARANTOR

			
		
	By:	 	 /s/ Christian G.
Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	Vice President and Treasurer
	
	THE PRINCETON REVIEW OF ORANGE COUNTY, LLC, as a GUARANTOR

			
		
	By:	 	 /s/ Christian G.
Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	Vice President and Treasurer
	
	PENN FOSTER EDUCATION GROUP, INC., as a GUARANTOR

			
		
	By:	 	 /s/ Christian G.
Kasper

			
	Name:	 	Christian G. Kasper
	Title:	 	Vice President and Treasurer

 SIGNATURE PAGE TO THE
THIRD AMENDMENT TO THE PRINCETON REVIEW, INC. SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT 

 
			
	SANKATY CREDIT OPPORTUNITIES IV, L.P., as a PURCHASER

			
		
	By:	 	 /s/ Michael
Ewald

			
	Name:	 	Michael Ewald
	Title:	 	Managing Director
	
	SANKATY CREDIT OPPORTUNITIES II, L.P., as a PURCHASER

			
		
	By:	 	 /s/ Michael
Ewald

			
	Name:	 	Michael Ewald
	Title:	 	Managing Director
	
	SANKATY CREDIT OPPORTUNITIES III, L.P., as a PURCHASER

			
		
	By:	 	 /s/ Michael
Ewald

			
	Name:	 	Michael Ewald
	Title:	 	Managing Director
	
	SANKATY CREDIT OPPORTUNITIES (OFFSHORE MASTER) IV, L.P., as a
PURCHASER

			
		
	By:	 	 /s/ Michael
Ewald

			
	Name:	 	Michael Ewald
	Title:	 	Managing Director

 SIGNATURE PAGE TO THE THIRD
AMENDMENT TO THE PRINCETON REVIEW, INC. SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT 

 
			
	FALCON STRATEGIC PARTNERS III, LP, as a PURCHASER
	
	By: Falcon Strategic Investments III, LP, its general partner
	
	By: Falcon Strategic Investments GP III, LLC, its general partner
		
	By:	 	  /s/ John S.
Schnabel

			
	Name:	 	John S. Schnabel
	Title:	 	Director
	
	FALCON MEZZANINE PARTNERS II, LP, as a PURCHASER
	
	By: Falcon Mezzanine Investments II, LLC, its general partner

			
		
	By:	 	  /s/ John S.
Schnabel

			
	Name:	 	John S. Schnabel
	Title:	 	Vice President
	
	FMP II CO-INVESTMENT, LLC, as a PURCHASER

			
		
	By:	 	  /s/ John S.
Schnabel

			
	Name:	 	John S. Schnabel
	Title:	 	Vice President

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